three persons sitting on the stairs talking with each other 1438072 1

The Continuing Struggle of Renting vs. Buying

/0 Comments/in , /by

Tampa’s real estate has been on the rise, and 2020 will be no exception. Housing is not only projected to increase, but because the baby boomer segment is transitioning into assisted living, smaller homes are expected to rise in the market. At a time when real estate is an excellent investment opportunity, is it time to be renting or buying? If Tampa is such a hot market, why are so many people still renting homes instead of buying a home?

Renting is Currently More Expensive

In Tampa, renting an apartment will cost you an average of $1,300 per month. Many students report paying $700 for a room (with bathroom) in a 4×4 apartment, which means the total rent is $2,800. With low interest rates on mortgages holding steady, purchasing a home can cost as little as $1,000 per month (with insurance). In a simple comparison, if you qualify for a mortgage loan and you already know which neighborhood you would like to plant your roots, then buying a home is definitely your best option. However, not everyone wants to plant their roots. Welcome to the new generation of home buyers who are trying trying to pay off their student loans and find a job. They are not evening thinking about buying a home.

The Millennials are moving, a lot

Trending within the Millennial generation is the ability to move around. Freedom they call it. Paying more money for apartments all over the Tampa Area just so they don’t “settle down” too quickly. In fact, home ownership is the lowest it has been in over 50 years in the Tampa Bay Area! That is a pretty significant number. In addition, some of these newly-graduated Millennials are still struggling to find decent jobs and as such have not moved out of their parent’s spare room to their own home. Home-ownership is no doubt a tell-tale sign up our economy.

We won’t forget 2008

And neither will the younger generation who witnessed what their parents endured through the massive home foreclosures and job losses. The stench of a down-trodden economy still lingers in the air, making young adults more cautious of such a big decision. CNBC sums it up perfectly:

“People’s monthly student loan payments can eat up a large slice of their income, threaten to push down their credit scores and make saving nearly impossible — all huge impediments, of course, to landing in a house.”

Sources:
https://www.cnbc.com/2018/04/19/student-loan-debt-can-make-buying-a-home-almost-impossible.html

aerial view of buildigns 1642125 1

Are You Ready To Buy A House? Home Buying Tips

/0 Comments/in , /by

Going through the home buying process as a first time home buyer can be intimidating. Do you think you’re ready to buy a house? Here are some really helpful tips, collaborated by a variety of professionals, to help you take the right first steps.

Take a first-time home buying class

Did you know there are many resources which you can use to learn about the home buying process in detail? In fact, many mortgage officers will encourage you to attend one of these classes before you even apply for a mortgage. Here are a few things you will learn:

  • How to get prequalified and preapproved
  • How to find the right real estate agent
  • How to shop for your home and make an offer
  • How to obtain insurance and what kind of insurance you will need
  • When to have the home inspection and appraisal
  • Details of the process from beginning to closing

As you go through a class or seminar, some lasting as long as 8 hours, you will learn about each topic in detail. Don’t let the amount of information intimidate you, just take it one step at a time. Also, don’t forget that a good real estate agent will help you with each step as you take them.

The Paperwork for your financing

One task that many first-time home buyers are not prepared for is the amount of paperwork they will need to gather and provide for the financing. Not only will you need proof of income, but you will need proof of everything as it pertains to your finances. A good loan officer will tell you that the key to getting through this phase is organization.

In many cases, this phase is when many home buyers lose track of the little important things. For example, someone forgot to tell the home inspector that the water in the home runs on a well. Now you also need a water inspection and that takes longer – but you were supposed to close in a few days! So now closing could be delayed because a little detail got left out and had a big impact. Effective communication between your loan officer, your real estate agent, and your home inspector will make all the difference.

How to look for a home

You’ve been preapproved! Congratulations, it’s time to start looking for that dream home. Each individual approaches the actual home buying process differently. For example, you might look at homes that are outside your preapproved amount with the intention to negotiate on the price. Others might want to look under their preapproved amount. Some will wait until their real estate agent sends them listings, other will look for them on their own. There is no right or wrong way, just your way.

An important feature of your real estate agent will be assisting you in deciding on whether to make an offer on a home or not. They will provide pros and cons that you may not identify and also provide insight from a unique point of view. Your real estate agent will help you negotiate, if that is an option, and even help you understand resale value. Don’t take this for granted, it will make the process significantly easier. Lastly, your real estate agent will walk you through each step of the process until your closing day.

Every agent’s goal is to assist you in getting the best property at the best price with the least amount of inconvenience based on current market conditions.

high water 123215 1280 1

Home Inspections and Flooding

/0 Comments/in , /by

Due to the excessive rain we’ve had in Tampa the last few days, we felt the need to share a little information on home inspections and flooding. The down-pouring of rain these last few weeks have made living in Tampa feel more like living in Seattle. While this much rain this often isn’t year-round, it can certainly cause issues for many homes around the Tampa Bay Area. This is especially true for homes located in flood zones, specifically in South Tampa, and along the shoreline. Flood hazards directly effects the buying and selling of a home. As we’ve mentioned in a few of our past blogs, inspecting a home during the rain can actually be a really good thing. In addition, and for any home-buyer, here are a few questions and warning signs to look out for when purchasing a home in South Florida.

The Flood Zone

As always, it is the seller’s responsibility to let you know if the home you are considering purchasing is within a flood zone. Although it is the seller’s duty, that doesn’t mean you shouldn’t ask. especially living in Florida in areas like Tampa, South Tampa, St. Petersburg, Treasure Island, North Tampa, and even Land O’ Lakes areas. All over Tampa are flood zones and there is a good chance your future home is in one. Don’t assume the seller will let you know, go ahead and ask them. Even if the house is not in a flood zone the neighborhood could experience some flooding when there is substantial rain and you’ll want to know about it ahead of time. You can also enter the home address into FEMA’s Flood Map to find out.

What Flooding Can Cost You

Living in Florida means no basements, so you don’t have to worry about your basement flooding if you’re in a flood zone. If you live, or are planning to live, on the coast then you should already be familiar with the mandatory standards for coastal flooding. Living in a flood zone also has some costs associated with the location, such as higher insurance premiums (much higher in fact!), difficult access in and out of your driveway or neighborhood, higher maintenance costs on your home, or even more maintenance on your car if you experience a substantial amount of travel during flooding. Be aware of the extra costs before committing to a home within a flood zone. Of course, during our home inspection if we see any signs of flooding within or around the home we’ll be sure to give you all the information you need.

Deal Breaker or Not?

Should flooding issues be a deal breaker or not? This question is a little tricky because there are so many flood zones all around Tampa that excluding these homes would narrow down your options considerably. That being said, ultimately it is your decision. Flooding issues can vary in intensity and you may find that the flooding issues near or around your home are minor, making a small impact on your decision. The more information you know about your future home, the better!

contractors 1

Verify Your Contractors

/0 Comments/in , /by

Many times a good home inspector will run into an all-too familiar problem. It starts out like every other inspection, checking for important home characteristics, installations, foundation, etc. But then it happens – a clear indicator of unverified (or just really bad) contractors. The problem could consists of bad electrical wiring, incorrect installation of a toilet, a wrong size drip pan in the a/c unit, and the list goes on and on. So let this article be a warning, for any work that needs to be done around the house don’t skimp by using the first (or the cheapest) contractor you can find. At the end of the day, and down the road, you will absolutely regret the decision to hire an unverified contractor. Here are some steps to ensure you get both a fairly priced contractor and a trustworthy contractor.

Use Referrals

Someone almost always knows someone they can refer for contract work. Asking around is a great place to start – but it shouldn’t be where you end. A person referring a business, company, or individual may have the best intentions in doing so but referrals are not guaranteed so you still need to take the extra time to check them out.

Read the Online Reviews

Real feedback from real people should be a deciding factor in hiring a contractor. Most businesses have online reviews from Google, Yelp, or another platform where you can easily and freely see what other people have to say about their service. While the commonly known fact that people are more apt to voice their opinion when they’re unhappy vs. when they are happy, you should still utilize the information. Chances are high the reviews are going to tell you something about the business you are considering.

Call Around

Tampa is saturated with contractors. From handymen to large companies, you have a plethora of choices. So why wouldn’t you call around? Ask about pricing, check out how they deal with you on the phone, and get all of your questions answered. If you run into an issue with a company’s service down the line, more than likely the way you are treated when you call is how you will be treated in the future, so don’t wait until you’ve hired them to find out.

At Divinity Inspection Service we offer a vendor list to any customer upon request. We know, like, and trust our vendors which is why we refer them. You can also trust that they have been verified by us. No matter which vendor or contractor you decide to hire, now or in the future, make sure you verify them first.