Video Blogs to help you get

"Real Estate Smart"

Here at The Miller Realty Group, we like to provide current and future homeowners the information they need to help them make the right decisions when they are buying, selling or investing in real estate. This is why we continue to share our expertise via Video Blogs on our website for everyone to see. We firmly believe that in the real estate market that "Knowledge is Power!"  Let our expertise empower you with your real estate needs.

Always feel free to Contact Us if you need our help!

Feb. 19, 2019

Mistakes seller make when considering using Opendoor or Offerpad

Today David is talking about mistakes sellers make when considering using services from iBuyer companies like Opendoor and Offerpad.  An iBuyer company is a company that will offer to pay cash for a  property and will paint a pretty picture of an easy stressfree transaction.  They advertise that the seller does not have to do anything to get their home ready to sell, they do not have to have showings and they can pick their closing date.  While all of these things sound great, there are some details about these transactions that a seller has to be aware of. Below are 3 things a seller needs to look for when considering working with an iBuyer. 

1. These companies ask a seller to put in information about their home and then within 24-48 hours, they will receive a price for their home. Sellers assume the price they are provided is the true market value of the property. In most cases, this price is not at market value.  The iBuyer companies are in business to make money and the upfront pricing will be below market value.  Always make sure as a seller you contact a real estate professional to obtain a market analysis so you are able to compare the 2 prices to see if as a seller you are getting the right price for your property. 

2. When deciding to go with an iBuyer sellers do not know to look for extra fees that are charged to them for the purchase of the property. These companies could be offering a great price for the seller's home but the extra fees also have to be considered.  Opendoor, for example, can charge anywhere from 6% - 12% commission.  That is a lot of money that is coming off of the price that is given to the seller and this comes off the seller's bottom line.  Another example is Offerpad charges a convenience fee of 2.5% on top of the commission.  A seller also has to look at the fine print to see how much of the title fees the iBuyer is going to pay. For some of them, it is up to $2000 and that may not be enough to cover all of the title fees.  A seller looking to use an iBuyer also has to consider repair costs.  Once the home goes under contract, the iBuyer will send out an army of inspectors and go back to the seller with a list of items to be repaired or they will ask for a price reduction.  If the seller was working with a real estate professional, they would handle the repair negotiation for the seller and could save the seller money by possibly not needing to make the repairs depending on the type of contract.   

3. Sellers at times do not look at their bottom line number. Most sellers have a goal to net the most money possible.  They need to make sure that at the end of the day they look at their net number.  This is not the purchase price, this is the amount they will receive when they go to the closing table.  

David strongly suggests consulting with a real estate professional.  We have listing specialists that can help a seller review the quotes from the iBuyers and then work to find the best solution for the seller's needs.  A listing specialist will be looking out for the seller to get them the most money for their property, and isn't that what all sellers are looking for?

For more information on this or if you need trusted realtors to represent you, feel free to Contact Us, and we would be more than happy to assist you. "Get Real Estate Smart" with The Millers!

The Miller Realty Group is a successful real estate team who provides real estate solutions for residential homeowners in the metro Orlando real estate market, including Lake Mary, Longwood, Heathrow, Sanford, Winter Park, Winter Springs, Altamonte Springs, Maitland, and surrounding cities. Founded in 2006, The Miller Realty Group has transformed itself into one of the top real estate teams in Central Florida.

Posted in Seller Video Blogs
Jan. 22, 2019

Why should the seller let the buyer handle repairs?

 

Today David is talking about who should handle the repairs a buyer requests from a home inspection when purchasing a home. When a home goes under contract, a buyer will get a home inspection. The home inspector will most likely come back with something, whether it be big or small.  For example, a leak in a roof the seller was not aware of. Should the seller try to fix the leak before closing or should the seller provide a closing cost credit and have the buyer correct the issue after closing? In some cases, the type of loan the buyer is getting will dictate whether or not the repairs would have to be done before closing. If this is the case it would be a good idea to let the buyer choose who will be making the repairs.  If the lender does not require the repairs to be done, David recommends giving the buyer credit at closing and have them correct the issue themselves. In both circumstances letting the buyer handle the repairs will take the liability off of the seller if anything should come up after the completion of the repairs.  

For more information on this or if you need trusted realtors to represent you, feel free to Contact Us, and we would be more than happy to assist you. "Get Real Estate Smart" with The Millers!

The Miller Realty Group is a successful real estate team who provides real estate solutions for residential homeowners in the metro Orlando real estate market, including Lake Mary, Longwood, Heathrow, Sanford, Winter Park, Winter Springs, Altamonte Springs, Maitland, and surrounding cities. Founded in 2006, The Miller Realty Group has transformed itself into one of the top real estate teams in Central Florida.

Posted in Seller Video Blogs
Jan. 15, 2019

Does the partial government shutdown affect real estate?

 

Today David talks about the partial government shut down and how it affects real estate. There are three ways that real estate can be affected by the shutdown.

1. Verification of identity and income through the Social Security Administration and the IRS.  Lenders use these 2 agencies to verify a borrowers income and identity.  There is a lot of fraud in real estate which makes these agencies very important to lenders.  They are still moving forward with loans, but if they notice more fraud, the process will start to slow down.

2. FHA and VA loans make up 15%-30% of the home loans taken out today. FHA and VA loans are government-backed loans.  These loans are being processed by a skeleton crew, and it will take longer to process the loans than it did before. This could be a problem for buyers who are looking to close quickly.

3. The partial shutdown provides uncertainty in the market.  Anyone that was looking to buy a home and has a government job that has been affected by the shutdown will have to postpone their home buying until the shutdown is over.

The real estate market isn't being affected too much at this time, but the longer the shutdown lasts the more significant impact it will have.

For more information on this or if you need trusted realtors to represent you, feel free to Contact Us, and we would be more than happy to assist you. "Get Real Estate Smart" with The Millers!

The Miller Realty Group is a successful real estate team who provides real estate solutions for residential homeowners in the metro Orlando real estate market, including Lake Mary, Longwood, Heathrow, Sanford, Winter Park, Winter Springs, Altamonte Springs, Maitland, and surrounding cities. Founded in 2006, The Miller Realty Group has transformed itself into one of the top real estate teams in Central Florida.

Jan. 9, 2019

2019 Real Estate Market Predictions for Metro Orlando

 

Today, David talks about his predictions for the Metro-Orlando real estate market in 2019. Before jumping into 2019 predictions, let's take a look at the Metro-Orlando real estate market in 2018.   The first half of 2018 the market was very hot just like the past couple of years.  The inventory was meager, and if you were a buyer, you might have struggled to find a home under $200,000.  If you were a seller, it was a time of lots of buyers and multiple offers on your home if your home was priced right.  The 2nd half of 2018 the real estate market started to soften, interest rates began to go up affecting the demand, and the rate of appreciation slowed down.

Now let's look at David's 2019 predictions for the real estate market in Metro-Orlando.  David predicts that inventory will continue to increase steadily.  He thinks there will be more inventory for the price point of homes at $250,00 and above. He also predicts that pricing of homes will continue to appreciate, probably around 5-6% and interest rates will also increase, but not higher than 5.5% by the end of the year. 

What do these predictions mean to you as a buyer in 2019?  Now is the time to buy.  Waiting to a year to purchase a home can end up costing you more money.  With interest rates increasing and home prices increasing if you wait until next year to purchase you will end up paying more money for less of a house. 

What do these predictions mean to you as a seller 2019?  It is very important to price your property right.  It will still be a seller's market but not as strong as it used to be. This means you will most likely not see the bidding wars that we have seen in the past. If you are thinking of selling, now is the time to get ahead of the competition.  As you see more and more homes go up for sale in your neighborhood the competition for the buyers' increases. 

For more information on this or if you need trusted realtors to represent you, feel free to Contact Us, and we would be more than happy to assist you. "Get Real Estate Smart" with The Millers!

The Miller Realty Group is a successful real estate team who provides real estate solutions for residential homeowners in the metro Orlando real estate market, including Lake Mary, Longwood, Heathrow, Sanford, Winter Park, Winter Springs, Altamonte Springs, Maitland, and surrounding cities. Founded in 2006, The Miller Realty Group has transformed itself into one of the top real estate teams in Central Florida.

Dec. 11, 2018

Should You Sell Your Home During the Holidays?

Today, the question is: Should you sell your home during the holidays or not? We say, YES!, for two reasons:

1) During the holidays, if you put your house on the market, there will be less competition. This is because a lot of people actually like to take their houses off the market because they don't want people coming through their homes during this season. That means if a buyer if looking to buy a home in your neighborhood and your house is the only one on the market, you have leverage over that negotiation. After the holidays, competition will rise again and you will lose your leverage.

2) Buyers are more motivated during the holidays. If they have to move, then they have to move -- and they'll be more motivated to settle a deal!

Because of these two reasons, we encourage you to put your home on the market during the holidays. Make sure you have an experienced REALTOR to help you through this process! We are always here to help.

As always, we are here to help you! Please feel free to Contact Us, and I hope that I have helped you get real estate smart.

The Miller Realty Group is a successful real estate team who provides real estate solutions for residential homeowners in the metro Orlando real estate market, including Lake Mary, Longwood, Heathrow, Sanford, Winter Park, Winter Springs, Altamonte Springs, Maitland, and surrounding cities. Founded in 2006, The Miller Realty Group has transformed itself into one of the top real estate teams in Central Florida.

Posted in Seller Video Blogs
Dec. 4, 2018

Should You Buy a Home Now or in a Year?

Today's topic is about the difference between an Orlando homebuyer deciding to purchase a home now as opposed to waiting until next year. Interest rates and property values are two factors to consider when comparing buying a home during any temporal scale. The interest rates have gone up a bit since last year, increasing to the low 5s. It has been announced that the rates should be staying steady at least for the next month but are expected to increase next year. The prices of homes are up as well -- not quite as much as last year, with next year's appreciation expected to be around 6%. 

So, what does all of this mean for the Florida buyer looking to purchase a home? What would be the difference in waiting until next year? 

While it may be easy to assume that history will repeat itself and the market will crash once more, think again. A buyer's market is not expected for another five years, so our advice is do not wait!

Let's take a look at a buyer that is considering purchasing a $350,000 home with a downpayment of $50,000 and the amount financed being $300,000. The interest rates for this example are 4.83% today, and the following year's rate is 5.83%. When comparing these rates, the difference between waiting a year and purchasing now does not seem that much, especially looking at the difference from a monthly payment perspective of only $187.

Now, if the buyer were to look at the annual difference, that would work out to be $2,244.00. That number seems to be a bit more, but is that really enough to decide to purchase now instead of waiting until next year? To get a full understanding of the cost of waiting a year, the buyer needs to consider how much they would be paying over the life of the loan.

By waiting until next year and paying the higher interest rate, the buyer would end up paying $67,160 more then if purchased today. The buyer also has to take into consideration the appreciation of the property at about 6%, making the cost of purchase that same property $371,000. Adding the appreciation difference to the difference in the interest rate, waiting until next year to purchase the home could end up costing the buyer around $88,000. 

Now is the time to buy a home and save money! Find a central Florida property that matches your needs now before interest rates and property values rise. Make sure you are working with a real estate agent who knows the area and can help you find the dream home you are looking for. 

As always, we are here to help you! Please feel free to Contact Us, and I hope that I have helped you get real estate smart.

The Miller Realty Group is a successful real estate team who provides real estate solutions for residential homeowners in the metro Orlando real estate market, including Lake Mary, Longwood, Heathrow, Sanford, Winter Park, Winter Springs, Altamonte Springs, Maitland, and surrounding cities. Founded in 2006, The Miller Realty Group has transformed itself into one of the top real estate teams in Central Florida.

Posted in Buyer Video Blogs
Nov. 7, 2018

Are International Buyers Buying Property in Central Florida?

Today's topic is international buyers, which have been exponentially increasing in activity in Florida real estate. In fact, international buyers spent $22.9 billion in Florida last year alone. This number is actually a little lower than last years because of decreasing inventory and higher competition between buyers. Additionally, the exchange rate for South America isn't as advantageous as it used to be, making it more expensive to buy a home in the US.

When you are selling your home, it's very beneficial to know information about international buyers in order to make your home more appealing. In the state of Florida, the aforementioned number represented about 52,000 sales in this state alone. 54% of these sales were made in South Florida, but Orlando is at #2 with 9%.

So what are they buying? On average, international buyers are leaning toward townhomes and condos, which represent 54% of what they tend to buy. An additional 42% are single-family homes. The average price they're spending in Florida $286,500. About 63% use this as a second home.

It also might be useful to know where these international buyers are from. 36% of them come from Latin America and the Caribbean, 22% come from Canada, and 19% come from Europe. It's important to know this information when you're selling your home so your REALTOR can market it effectively.

As always, we are here to help you! Please feel free to Contact Us, and I hope that I have helped you get real estate smart.

 

The Miller Realty Group is a successful real estate team who provides real estate solutions for residential homeowners in the metro Orlando real estate market, including Lake Mary, Longwood, Heathrow, Sanford, Winter Park, Winter Springs, Altamonte Springs, Maitland, and surrounding cities. Founded in 2006, The Miller Realty Group has transformed itself into one of the top real estate teams in Central Florida.

Posted in Seller Video Blogs
Oct. 16, 2018

Will the Agent with the Lowest Commission Net You More Money?

Deciding to sell your home is a big decision. However, the next big decision a seller makes is deciding which real estate agent to use to help them sell their home. Do they go with the real estate agent who will charge the lowest commission to net more money on the sale of their house?

Many people feel that if they are paying a lower commission that will mean more money in their pocket, but that's not always the case. There are many different commission formats, with the standard commission being 6%. Of that 6%, half will go to the listing agent and half will go to the buyer's agent. Every agent is different and will be able to sell a home at a different price point. 

When choosing an agent, the seller should look at the stats of the agent they are interviewing.

The Miller Realty Group, for example, has listed and sold over 38 homes so far this year, and their average sold to list price ratio is 100%. In comparison, the average sold to list price ratio in Orlando is 97%.  That means The Miller Realty Group is averaging 3% more for their sellers than the Orlando average.

If The Miller Realty Group charges 6% and another agent is charging 5%, it would appear the seller is saving 1% in commission. But in reality, according to the stats, the seller could actually net the 3% more by using The Miller Realty Group. According to the stats for Orlando, the same seller would lose 2% by going with another agent.

Most of the time, a seller will say that netting the most money is more important than the commission percentage. So it is important to partner with the right real estate agent who has the right systems in place to get their home sold for top dollar and net them the most money. 

As always, we are here to help you! Please feel free to Contact Us, and I hope that I have helped you get real estate smart.

The Miller Realty Group is a successful real estate team who provides real estate solutions for residential homeowners in the metro Orlando real estate market, including Lake Mary, Longwood, Heathrow, Sanford, Winter Park, Winter Springs, Altamonte Springs, Maitland, and surrounding cities. Founded in 2006, The Miller Realty Group has transformed itself into one of the top real estate teams in Central Florida.

Posted in Seller Video Blogs
Oct. 16, 2018

Seller Closing Costs Explained

When selling a home in Orlando, it's important for the seller to understand the closing costs that are associated with selling a home. When purchasing residential real estate in Florida, there are costs that are incurred by the seller and closing costs that are incurred by the buyer. In this post, we'll be going over the seller fees so you feel comfortable with them when selling your home. 

Within the contract, Section 9 states the fees that the seller will be paying. There are three fees that are based off of the purchase price of the property. The first fee the seller pays is the broker's commission. The average commission amount is 6% of the purchase price. The other two fees are the doc stamps and the title insurance. The docs stamps, which are determined by the purchase price, are taxes paid to the county and are $0.70 per every $100. Additionally, the title insurance ensures to the buyer that the title is good. When the seller sells their home, they provide the owner's title policy for the buyers, ensuring a clean transfer of the property. The owner's title policy is also based on the purchase price: for an Orlando home over $100,000, the cost will be $5.00 per $1,000.

Aside from these three big items, another fee the seller will be responsible for is the property taxes. In the state of Florida, you are responsible for taxes from January 1 until the close date. This creates a credit for the buyers for their future home, which they will eventually pay in full amount.

You also have to pay the title service fee charge, which compensates the title company. This fee is usually around $500. There's also a title search fee and a charge for a municipal lean search, which can uncover unknown information about the house.

These are the most common seller's closing costs you will encounter throughout the process of selling your home! However, before you list your central Florida property, make sure to get a net sheet from your REALTOR. This breaks down all of these fees and determines what your net number will be at the closing fees.

As always, we are here to help you! Please feel free to Contact Us, and I hope that I have helped you get real estate smart.

 

The Miller Realty Group is a successful real estate team who provides real estate solutions for residential homeowners in the metro Orlando real estate market, including Lake Mary, Longwood, Heathrow, Sanford, Winter Park, Winter Springs, Altamonte Springs, Maitland, and surrounding cities. Founded in 2006, The Miller Realty Group has transformed themselves into one of the top real estate teams in Central Florida.

Posted in Seller Video Blogs
Oct. 11, 2018

The Ins and Outs of Home Inspections for Buyers

Today, David talks about the home inspections that are performed after a purchase contract is signed. It is essential to have a home inspection when buying a home because a home inspection may uncover items that are not listed in the seller's disclosures. On a purchase contract, there is a place that states how many days the buyers have to perform the inspections. A buyer would like as much time as possible to have to get their inspections done, and on the flip side, the seller will like them completed in a shorter amount of time. This home inspection contingency timeframe is an item that can be negotiated, and a real estate agent will work to get a timeframe that is good for their clients. 

There are two main inspections that are typically performed when buying a home:

The first one is a regular home inspection. The home inspection typically costs between $299-$399, depending on the size of the house. The home inspector looks for items that might not be visible to the naked eye. A few examples of items a home inspector is looking for are active roof leaks, past roof leaks, plumbing leaks and making sure electrical sockets are in working condition.

The second inspection that is typically performed is a WDO inspection. WDO stands for Wood Destroying Organisms. The WDO inspector will look for live termites, past termites, and wood rot. If the buyer is getting a VA or FHA loan, a WDO inspection may be required, and on a VA loan, the seller may have to pay for it. The cost for the WDO is around $100-$200.

Another inspection that can be performed is an inspection of the septic tank.  For any property that is not on public sewer and has a septic tank, it is a good idea to get a certification stating that it has been pumped and that it is in good working condition. The cost for a septic tank inspection can range from $300-$400 depending on how big the tank is and how many there are.  

Once the inspections are complete, the buyer will be getting a report of the findings. The report can be very lengthy and will outline everything that was found during the inspection. The buyer should not be alarmed when receiving a lengthy inspection. The home inspector is paid to inspect everything and in doing so will find something. Working with an experienced real estate agent is very beneficial to a buyer to help them to understand what is on the report. The real estate agent will go over the home inspection with the buyer and talk the buyer through the results. 

It is always a good idea to take out the seller's disclosures that were signed along with the contract and compare that to any items found on the home inspection. If the home inspector found an old leak, take a look at the seller disclosure and see if anything was mentioned a leak. If it was not mentioned, that could be something that the buyer could address with the seller. Most contracts today are written on "As Is" contracts -- that means the seller is not required to repair or fix anything that comes up in the inspections. A buyer can always as for items to be fixed, and it is up to the seller to decide if they want to make the repairs. If the seller does not want to make any repairs, the buyer can choose to back out of the contract and as long as they are still within in the inspection contingency, they will receive a full refund of their escrow funds.

As always, we are here to help you! Please feel free to Contact Us, and I hope that I have helped you get real estate smart.

The Miller Realty Group is a successful real estate team who provides real estate solutions for residential homeowners in the metro Orlando real estate market, including Lake Mary, Longwood, Heathrow, Sanford, Winter Park, Winter Springs, Altamonte Springs, Maitland, and surrounding cities. Founded in 2006, The Miller Realty Group has transformed itself into one of the top real estate teams in Central Florida.

Posted in Buyer Video Blogs