Ted Knows Palm Coast...

and It’s 12 Neighborhoods and 14 Gated Communities !

Prospective home buyers often assume they are ready to close the deal when they find the house of their dreams; whether it’s a resale or the perfect plan from a builder.  But, choosing a home that will be good as both as an investment and for family living requires you to select the very best location. The first step is to learn more about the streets and neighborhoods and select ones that meet your specific needs.

The details within the four walls of a home are usually the focus of home buyers. However, it is a mistake to overlook the neighborhood, schools and amenities available in each area. You need to find neighbors, stores, schools, and a commute that will create the optimal lifestyle for you and your family.  Having a great house won’t be enough if you don’t feel that it is safe to have the kids walk down the street to go to school!

Trulia recently completed a survey that showed how much the neighborhood would impact lifestyle satisfaction.  Home buyers feel so strongly about choosing the right neighborhood that many of them agree that they would either decrease the square footage in their home or pay more than the asking price to ensure that they have a good neighborhood.

It can be a challenge to find the perfect location for your family-which is why you should to work with a real estate agent that has lived in his town for many years and knows where each neighborhood has been, where it is today and where it is  headed.  You need to Talk To Ted !  I am here to help.  

Call today:  (386) 503-1101

Ted Lesher

Broker/Owner, Palm Coast Real Estate Consultants

Realtor and Resident Since 1996

Getting Mortgages Is Getting Easier!

Fannie Mae and Freddie Mac are both government sponsored enterprises.  They do not originate loans, but they buy them from lenders like your bank or mortgage company.  They buy over half of all loans made!  The main difference between Fannie and Freddie comes down to who they buy mortgages from: Fannie Mae mostly buys mortgage loans from commercial banks, while Freddie Mac mostly buys them from smaller banks that are often called "thrift" banks.  Working with them is currently cumbersome, demanding and very time consuming.  According to a new report from the Florida Association of Realtors, they both  have announced plans to speed up and simplify their mortgage buying process.

Fanny May announced it “Day 1 Certainty” initiative that will provide its customers with freedom from misrepresentations and will warranty key aspects of the mortgage origination process.  They are offering faster income, assets, and employment validation services to lenders. 

Fannie Mae's high-profile changes for borrowers include:

-Validating loan application data upfront will give lenders faster verification of key loan data components, such as income, assets and employment information.

-Borrowers will save time using electronic data versus collecting documents, such as pay stubs, bank statements and investment account statements.

-Enhanced property inspection waiver upgrades.  When a property receives a qualifying score through Collateral Underwriter, customers will receive representation and warranty relief for the appraised value of the property.

-Refinance transaction customers are eligible for a waiver of the property inspection requirement if using Desktop Underwriter.

Freddie Mac will improve their processes by:

                                                  -reducing the cost of originating a loan

                                                  -providing a no-cost automated appraisal alternative 

                                                  -automating borrower asset verification

                                                  -automating assessment of borrowers without credit scores

By keeping mortgage interest rates artificially low and improving the speed and efficiency of getting a mortgage, our government is attempting to stimulate the economy by making the purchase of a home easier and less expensive. Palm Coast in particular relies on the home building industry as one of its prime sources of employment and growth. You can read the entire report on the Florida Association of Realtors website, https://www.floridarealtors.org/.
I first learned this information from Toby Tobin’s terrific real estate newsletter at http://gotoby.com/news/article/2856/Fannie-and-Freddie-Plan-to-Streamline-Mortgage-Underwriting

Looking to build or buy a new home in Palm Coast?  Sell one?  TALK TO TED !  (386) 503-1101

“Update – Palm Coast Commercial Building Permits”

On May 15 GoToby.com updated its May 5 Commercial Permits report listing who took out commercial building permits in Flagler County.  I found a couple of the applications especially interesting.

A 7-Eleven with 10 gas pumps applied for a permit in Beach Village, site of the new Beach Village Apartments.  Check out the apartments themselves at http://www.beachvillageapts.com/palm-coast-apts-for-rent/beach-village/

Chase applied for a permit in Island Walk.  The big banks are not planning to go away despite public and political outcrys about them.

And a car wash applied for a permit on Cypress Point Parkway near Steak & Shake. Coconuts behind McDonalds on Route 100 usually has long lines of waiting cars. I hope this one will be just as modern and well run because it will be much closer to Pine Lakes, where I live, and the Indian Trails "B" section folks than either the Palm Coast Car Wash on Old Kings Road or Coconuts.

I think GoToby.com is a great source of local real estate information.  This posting can be found at

http://gotoby.com/news/article/2773/Update--Palm-Coast-Commercial-Building-Permits

Why The Selling Price of Your House Will Increase Dramatically

Today's National Association of HomeBuilders report on government regulation costs shows regulations add a whopping $84,621 to new home prices.  (See the article:  http://nahbnow.com/2016/05/regulations-add-a-whopping-84671-to-new-home-prices/?utm_source=newsletter&utm_medium=email&utm_campaign=mmb0509).  

The cost of buildable lots in Palm Coast is rapidly increasing just because of demand. These regulations add a bunch more cost to build on a lot. And our local government just greatly increased the “impact fee” charged builders for the impact a new house will have on increasing the need for them to provide services.

Add all to that the constantly increasing cost of cement, wood, wallboard and everything else needed to build the home and I come to two simple conclusions...

Resale prices will go up higher and faster than predicted.

Remodeling an existing home will be a smart investment.

Mortgage rates are still reasonable. If you can buy, buy now!

Talk To Ted !

Let’s Add a Bedroom…Our Kid Is Moving In !

Owners-Bigger is Better

My insight for the last year has been that the trend to multi-generational living is especially strong here in Palm Coast.  And it has manifested itself in the number of four bedroom houses

.  

From April 1, 2016 until today, May 5, 2016 119 four bedroom homes have either been sold or are pending.  (My MLS search included  homes between $100,000 and $300,000 in order to eliminate higher priced houses that are normally larger and likely to have more bedrooms.) In contrast, 291 three bedroom homes were sold or pending during that period. 

That translates: 41% of the houses sold in the last six weeks were four bedroom homes!

If you want to add value to your home, remodeling kitchens and baths are always a good idea. But give some thought to adding space. Add a bedroom over the garage or to the rear of your house. Better yet, a bedroom with a bath.  Use it for a home office, media room, exercise room, or guest room...but be sure to add a closet area so it qualifies as a bedroom.  According to Remodeling Magazine, nationally you can expect to recover 69.3% of your investment.  In Palm Coast it will probably be even more.  

New Construction

I staffed a model home during the recent parade of homes...buyers of new homes were looking for larger, four bedroom houses in the lower price and middle price ranges. Some were working couples looking for home office space and some were families with two or more children; but many were looking for multi-generational housing; meaning that either a parent was moving in with them or they were the parent, and (like me)  a child was returning home to live.  I suggest you give some thought to adding another room (with a closet) to your home.  

Buyers-Talk To Ted!

Each week the  Observer Tribune lists residential building permits issued to builders. Holiday Homes led this week’s  list with four, Adams Homes was second with two and Seagate, Everlast, New Coastal Homes, Maronda and Skyway each had one permit to start building a new home.  Many are being built on speculation as “Inventory Homes”.  

Compare and Choose.  Most folks moving to Florida and looking to buy a home would like to compare building a new dream home that is exactly what they want to purchasing a similar resale that is likely to be less expensive.  My background in new construction and knowledge of local builders allows me to provide them with a good comparison and help them decide.

My High Tech Mortgage Broker

Finding the Right Mortgage is Often Harder Than Finding the Right Home!

A critical factor in purchasing a house these days is getting the best possible mortgage.  

I need to keep very current on who to work with to help me find my buyer the best mortgage and where to get it. 

Steve Verrier of Lake State Mortgage is a great resource for me.  Check out his latest e-letter and see how he follows Mortgage-Backed Securities to help him with his market projections.  He also put me on to a book I will buy:  “...New York Times best seller “Zillow Talk” to see if it is a commercial for Zillow in disguise or provides useful market information.

He is a Palm Coast resident and specializes in these markets:

• Purchase Mortgages
• Refinance Mortgages
• Harp 2.0 Loans
• Construction (to Permanent) Loans and Mortgages
• (Both Conventional and Government)
• Cash Out Home Equity Mortgages
• Jumbo Home Loans and Mortgages
• FHA Loans / USDA Mortgages / VA Mortgages
• Reverse Mortgage Loans
• Private Money Mortgages
• Condos
• Rehab and Renovation Products for Primary Residences“

Check out Steve’s e-letter Realtor Market Insider:    

https://mail.google.com/mail/u/0/?hl=en&tab=wm#inbox/153761ab37923202

And his website:  

http://www.thefloridamortgagecenter.com/home.html

Granny Pods: Caring for Aging Relatives...

I am a great fan of the TV program “Tiny Houses”. And I just read this interesting post in RIS Media’s blog.

It discusses  tiny houses designed for caring for an aging relative. This can also be done using what we call a "Duplex", "Multi-Generational Home", or a regular but tricked out two or more bedroom home. I have been working in a Model Home and visiting other model homes in this week’s Parade of Homes and I have seen several floor plans that would work well as a "Granny Caves".  Or for a grown child who returns home to care for or be cared for. ( I know the situation.  My daughter just came to live with us a month and one half ago.) 

Here are some excerpts from the RIS blog:

“Granny Pods, aka MedCottages, are 12 x 24-foot prefabricated pods that sit conveniently in one's backyard. The structures hook up to existing plumbing and electrical systems and allow both the caregiver and senior citizen to have their own space while still being available and connected. The pods are quickly growing in popularity and are a win-win for both parties: the aging family member has his or her own space, while the caregiver doesn't have far to travel to assist family members in case of an emergency.”

“The mobile homes are built with safety in mind and include many of the basic amenities any adult would need. They include a small kitchen, a bedroom and a bathroom all designed in a small scale space with easy access in mind. The bathrooms are handicap accessible with railings and safety features, while the floors are padded to help lighten the load on joints.”

“Not only are they safe, but they're tech-savvy, too! Granny Pods can incorporate webcams for family members to monitor from afar. Even more impressive, robotic features can monitor vital signs, with alert systems armed to notify caregivers should a problem arise. The air can be monitored for contaminants and reminders can be sent to the inhabitant to remind them to take pills or supplements accordingly.  The MedCottages encapsulate all the functions of a proper nursing home, while providing grandma or grandpa with the freedom and privacy they may still desire.”

The blog is loaded with photos of interesting options.  Read it at:

http://blog.rismedia.com/2016/granny-pods/?utm_source=newsletter&utm_medium=email&utm_campaign=eNews

If you want to build or buy a home well designed to accommodate two generations, 

Talk To Ted!

Photo Credit: facebook.com/MEDCottage

Ted Joins Re/Max Flagstaff and Toby Reports It's Cheap To Live In Palm Coast

Ted's going independent. I recently left a large real estate agency to become more independent again.  I do better for my customers that way.

I was a Re/Max agent when I first moved to Palm Coast in 1996.  It is uses an "agent oriented" approach where we all operate independently and develop our own businesses under their umbrella. Re/Max supplies great national advertising and excellent technical and marketing support tools for their agents. They are expensive and you need to be a top producing agent to afford to belong.  I am proud I can do that.

It's Cheap to Live In Palm Coast !

Are you thinking about moving to Florida? Here is some new info from Toby Tobin about Palm Coast:

Houses are cheap
GoToby.com says…

Newport Beach led the list as the most expensive U.S. market with an average listing price of $2,291,764. (Only one Flagler County home sold for more than $2,000,000 in the past 12 months. Palm Coast ranked way down the list at 2,092nd with an average listing price of only $196,653.

and

Palm Coast ranked least expensive within Florida at 90th out of 127 markets.

To see the entire GoToby article:

http://gotoby.com/news/article/2658/Very-Interesting-Real-Estate-Facts-about-Palm-Coast-and-Flagler-County

FIND OUT IF HE IS A CROOK!

You can check to see if anyone has a rap sheet without going to the courthouse.  The new courthouse website will tell you. I was shocked to find out one of my lawn guys had a felony record. From 2008. Should I be forgiving or protective?

Check out this article from FlaglerLive.com posted today:

http://flaglerlive.com/79966/court-records-access/

Here’s a quote...

“Starting at midnight tonight, the Flagler County Courthouse will be a 24-hour operation, at least with regards to accessing records–felony court records, civil court records, traffic tickets, foreclosures, and so on. Not just the scant docket records that have been available for years, but the actual filings, such as arrest affidavits, civil complaints and the subsequent paper trail of each court case.”

NEW CONSTRUCTION PERMITS ISSUED THIS WEEK

I edited the article in this week's Observer Tribune to highlight that ten permits were issued to builders this week for the construction of new homes.  Looks like some spec homes are being built again.  Shows builder's confidence in the near-term prospects for residental real estate.  You can find the entire article in the Thursday, Feb. 26 issue of the Observer...

                                                   PalmCoastObserver page 27

PALM COAST BUSINESS ACTIVITY

PALM COAST PERMITS

The following is an update for permit
activity in the city for Feb. 12-18. Total
number of all permits issued: 138.
Since 2009, $656 million in construc-
tion dollars have been invested in Palm
Coast.

Residential permits issued:

• Encore Contracting was issued a
$349,000 permit for a single-family
residence at 7 Clermont Court.

• Vanacore Construction was issued a
$337,000 permit for a single-family
residence at 3 Undershire Path.

• Saltwater Homes was issued a
$331,000 permit for a single-family
residence at 55 Edward Drive.

• .Seagate Homes was issued a

$306,000 permit for a single-family
residence at 6 Essington Lane.

• Seagate Homes was issued a
$306,000 permit for a single-family
residence at 13 Promenade Place.

• Vanacore Construction was issued a
$294,000 permit for a single-family
residence at 7 Buffalo View Lane.

• Maronda Homes was issued a
$276,000 permit for a single-family
residence at 4 Lark Place.

• Seagate Homes was issued a
$254,000 permit for a single-family
residence at 111 S. Hummingbird
Place.

• Seagate Homes was issued' a
$231,000 permit for a single-family
residence at 117 Pepperdine Drive.
• Seagate Homes was issued a.
$207,000 permit for a single-family
residence at 34 Raintree Circle.

Source: city of Palm Coast 

Kickstarter: Leading Edge Design and Technology

I’m fascinated by Kickstarter.  Like Shark Tank, I can be one of the first to see lots of new things that will be hitting the market.   And I can gamble a little on getting something neat for a bargain price. 

If you don’t know what Kickstarter is here is my take on it…

Kickstarter is a funding project for creative projects.  Everything from games and music, to art, design and technology.  Rewards vary from project to project, but often include a copy of what is being produced.

Every project creator sets their project's funding goal and deadline. If people like the project, they can pledge money to make it happen. If the project succeeds in reaching its funding goal, all backers' credit cards are charged when time expires. If the project falls short, no one is charged. Funding on Kickstarter is all-or-nothing.  Kickstarter does not allow projects to fundraise for charity or offer financial incentives.

For lots more information here is a link to “Kickstarter 101”

https://www.kickstarter.com/help/faq/kickstarter%20basics#Acco

To review Kickstarter projects go to:

https://www.kickstarter.com/help/faq/kickstarter+basics?ref=faq_nav#TheKickApp

FANNIE MAE AND FREDDIE MAC EXPLAINED.

I just read this interesting and well written article about what Fannie Mae and Freddie Mac. I suspect a lot of others like me will enjoy it as these organizations once again play a big part in  the resurging market for homes and home mortgages.  I read it in our Florida Realtors News daily 

"WASHINGTON (AP) – Feb. 20, 2015 – Mortgage giant Fannie Mae reported net income of $1.3 billion for the fourth quarter. That's down sharply from $6.5 billion a year earlier due largely to losses on investments used to hedge against swings in interest rates.

Still, it was the 12th straight profitable quarter for the government-controlled company.

Washington-based Fannie also said Friday that it will pay a dividend of $1.9 billion to the U.S. Treasury next month. Fannie will have paid $136.4 billion in dividends, exceeding the $116 billion it received from taxpayers during the financial crisis.

The government rescued Fannie and smaller sibling Freddie Mac in September 2008.

For Fannie and Freddie, the decline in long-term interest rates last year brought losses on derivatives, financial transactions the companies use to hedge against rate swings.

Fannie and Freddie own or guarantee about half of all U.S. mortgages, worth about $5 trillion. Along with other federal agencies, they back roughly 90 percent of new home loans.

The two companies don't directly make loans to borrowers. They buy mortgages from lenders, package them as bonds, guarantee them against default and sell them to investors. That helps make loans available.

On Thursday, Freddie posted net income of $227 million for the fourth quarter. That was down sharply from the same period of 2013, as the company sustained losses on the investments it uses to hedge against swings in interest rates. Freddie also said it will pay a dividend of $900 million to the government in March.

Fannie Mae reported net income of $14.2 billion for all of 2014, down steeply from $84 billion in 2013.

Fannie's losses on derivatives reached about $2.5 billion in the fourth quarter and around $4.8 billion in 2014.

The gradual recovery of the housing market has made Freddie and Fannie profitable again.

The market's revival beginning in 2012 has been fitful, and housing has lagged behind the rest of the economy. Despite the low borrowing rates that could lure prospective homebuyers, the market has remained hampered by tight mortgage credit, rising home prices and stagnating incomes.

The federal agency that regulates Freddie and Fannie took action in December to allow consumers to buy homes with downpayments as low as 3 percent, down from the current 5 percent minimum. 

The new guidelines are meant to make houses more affordable for low-income families and first-time buyers."

Today the Dow hit a record high.  Are we blowing bubbles again?  Or returning to a healthy economy?  

FHA LOWERS RATE

The FHA lower the rate sets to insure an FHA mortgage in order to stimulate the housing market.  This information contains their information of why they decreased their rate.  To see the original document go to :  http://www.floridarealtors.org/NewsAndEvents/article.cfm?p=3&id=319358
Then Talk To Ted!

DRIVE-BY SHOOTINGS

FIRST IMPRESSIONS:  The first 45 seconds determines whether your house will be selected for a showing.  Videos and good still pictures will get the attention of Buyers and Realtors, but the first thing in the selling process will be a drive-by. The house must look as good as possible from the street or it will get a big X and never be looked at.  Required: My sellers must find a  way to cosmetically improve the curb appeal of the house.  I can help them do that.

Sellers also need to find inexpensive ways to make the interior of the house look more appealing.  Talk with me about what I think needs to be done to your house before you put it up for sale, how to do it and how much that  will cost, and how it will affect the amount of time it takes to sell it and the price you can get for it.

EMPTY  If possible, the house should be empty.  Trying to make appointments to show a house with folks living in it with all their stuff (often too cluttered) reduces the probability of selling the house dramatically.  Real Estate agents can get occupied listings to advertise that will get their phone to ring; but if the house is occupied, the buyer will have many more things to judge-and find it much easier to eliminate the house from their list.  Store or sell things so your house will be properly “Staged”. Move out.  I can help.

HOME INSPECTIONS Prepare to respond to the Buyer’s home inspection, they will all get one.  Our Florida “As Is” contract still gives the Buyer the ability to get a home inspection and then cancel the contract and request their deposit back.  There are ways to avoid this from happening.  Talk To Ted!

SELL TO A CASH BUYER  If a Buyer makes the purchase contingent on getting a mortgage…ouch!  You need to make sure they are qualified according to the new Guidelines.  Pre-Approval letters are worthless and Mortgage Confirmation letters are obsolete.  I know how to do the research necessary and add the clauses to the contract that will help insure the buyer is very likely to get the mortgage approved.

BUILD OR BUY? The gap in price between purchasing a resale and building a new home has widened.  While the market for resales is still plagued by foreclosures, the cost of materials for building a new home has risen dramatically.  This forced many builders out of the market.  

Although the new construction business has picked up nicely here in Palm Coast, most builders are not building model homes or spec houses.  But larger companies, like Seagate, Adams and Maronda are building spec homes again.  

I track the permits and I watch who is building, where and how many.  I know how to compare what a buyer can by new vs your resale.  And buyers need to know if the builder they are considering is financially sound. I was working out of Florida Green Homes model in Palm Coast Plantation and sold one of his houses.  They made two installment payments on my commission but have defaulted on the last payment.  

Talk To Ted before you build, buy or sell your home.

H. Ted Lesher 

Broker Associate, Sunburst Realty Group

Call or Text:  386-503-1101         email:  tedleshersr@gmail.com