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Welcome to our site where we talk all things Florida and all things real estate.  We love it here and want to share the joy with you.

Are you ready to unlock the door to ownership? Look no further! Our real estate website is your ultimate destination for finding the perfect slice of paradise in this sunshine state. Whether you're seeking a cozy bungalow nestled among the trees or a luxurious waterfront estate with breathtaking views, we have something for everyone.

Why Florida, you ask? Well, let us paint you a picture. Imagine waking up to the warm rays of the sun filtering through your window, birds chirping in the distance, and the promise of endless adventure right at your doorstep ALL YEAR ROUND. From world-renowned theme parks to pristine natural wonders, Florida offers a lifestyle that's second to none.

But it's not just about the attractions; it's about the sense of community that thrives here. Picture yourself strolling down tree-lined streets, chatting with friendly neighbors, and savoring the flavors of local cuisine at charming cafes and eateries. Whether you're a young professional, a growing family, or a retiree seeking tranquility, Florida welcomes you with open arms.

On our website, you'll find a treasure trove of information to assist you in learning about specific areas, specific homes and financing options that are available.

But our commitment to you doesn't end there. In a world where everyone seems salesy and out for themselves, our team of experienced real estate professionals wants to let you know that we are different.  We promise to put you first, to make your home buying or selling venture one that keeps you coming back to us.  Our business model is SERVICE BEYOND EXPECTATION and we deliver.  We encourage you to schedule a call with us at (407) 435-0079  It's the best way to get to know each other and we promise not to bee pushy!

So, what are you waiting for? Your Florida dream awaits! Start your journey today by browsing our website and discovering all that this remarkable region has to offer. Whether you're drawn to the magic of Orlando, the friendliness of the suburbs, or the coastal charm of New Smyrna Beach, we have the keys to unlock your next chapter. Welcome home to Florida – where every day feels like a vacation!

 

Feb. 3, 2025

2025 Florida Real Estate Market: Predictions, Trends, and What Buyers & Sellers Need to Know

2025 Florida Real Estate Market: Predictions, Trends, and What Buyers & Sellers Need to Know

By now, you have probably heard that 2024 was the slowest year for residential sales in the last 30 years! As an agent/broker who was around before and after the crash of 2008, I find that hard to believe. 2008 was devastating for so many people—millions lost not only their jobs but also their homes. But it is true—2024 saw the worst sales numbers in the last three decades.

“How is it possible that home sales can be this low, considering that the U.S. population has increased by more than 70 million over this time period from 1995 to today?” asked Lawrence Yun, the NAR’s chief economist. “One can partly answer that question because of the affordability issue. Record-high home prices, mortgage rates having risen, but also lack of inventory.”

What to Expect in 2025: Will It Get Better or Worse?

More than half of the country speculated that as a result of the 2024 Presidential Election, if Donald Trump won, then the market was going to quickly rebound and interest rates would plummet. We are now just a few weeks since the inauguration, and we have not seen anything drastic happen with the real estate market. However, there was a noticeable bump in activity and sales immediately after the election results were revealed. I spoke with several buyers who had put their home search on hold, saying, "We are not doing anything until after the election." And once it was over, they were back in the game.

Even though 2024 was the worst year for sales volume, home prices still rose—albeit not at the record-setting pace of previous years. The key factors impacting Florida’s market in 2025 will be:

1. Mortgage Rates: Will They Drop?

The Federal Reserve has hinted at potential rate cuts in 2025, which could improve affordability and bring hesitant buyers back into the market. But experts caution that any drops will likely be gradual. Buyers should prepare for rates to stay above 6% for most of the year.  We’ll be able to watch this and see if we are right!  

2. Inventory Challenges: Will More Homes Hit the Market?

One of the biggest hurdles for homebuyers in 2024 was the lack of available homes. Many homeowners were unwilling to sell because they were locked into ultra-low mortgage rates from previous years. In 2025, we might see a slow increase in listings as people adjust to the new normal.   Once inflation gets under control and the new administration is able to implement some of their monetary policies, we may be in better shape.  But I wouldn’t plan on it for at least 2 years.  

3. Florida’s Housing Demand: Still Strong

Despite the slowdown in sales, Florida remains one of the top destinations for buyers, particularly retirees, remote workers, and investors. Areas like New Smyrna Beach, Orlando, and Tampa continue to see strong demand due to their lifestyle appeal and lower taxes compared to other states.  

4. New Construction: A Solution to Inventory Problems?

Builders have been cautiously increasing production, and in some areas, buyers may find good incentives like rate buy-downs and closing cost assistance. We believe that new homes are ideal for first time buyers and retirees.  The cost of owning a new home is so much lower than an older home.  In Florida, we do have an insurance crisis.  New construction homeowner’s insurance is so much more affordable than buying insurance on an older home.  Also, new homes are made with so much efficiency the average electric bill is so much lower. I am not talking about homes with solar, I am talking about actual electric bills.  

5. The Affordability Crisis: Will Prices Keep Rising?

While price growth has slowed, home values are still expected to increase in 2025, just at a more moderate pace, maybe the average 3% per year. Florida’s continued population growth and desirability will keep demand strong, but buyers may finally have more negotiating power than in previous years.

What This Means for Buyers and Sellers in 2025

  • Buyers: If rates drop, expect more competition. Act fast on well-priced homes, and consider new construction for better incentives.

  • Sellers: Pricing correctly will be crucial. Overpricing will cause homes to sit on the market longer, while well-positioned homes will still sell quickly.

  • Investors: Rental demand remains high in Florida. If home prices stabilize, this could be a great time to acquire rental properties.

Final Thoughts

2025 is shaping up to be a year of gradual improvement rather than an overnight boom. Interest rates, inventory levels, and economic factors will all play a role in how the market evolves. Whether you’re buying, selling, or investing, staying informed and working with a knowledgeable real estate professional will be key to navigating the Florida market.

 

If you have questions about buying or selling in Florida, let’s connect! Florida’s Good Life is here to help you make the best real estate decisions in 2025.

Posted in Market Updates
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Nov. 19, 2024

Explained: Why Small Homes Have a Higher Price Per Square Foot

 

 

Why Do Smaller Homes Have a Higher Price Per Square Foot AND Why it doesn't matter! 

 

If you’ve ever compared the price per square foot of homes, you may have noticed something surprising: smaller homes often have a higher price per square foot than larger homes. This might seem counterintuitive at first, but there’s a straightforward explanation for this trend that has everything to do with how homes are built and valued.

 

The Cost of Fixed Features

 

Every home, regardless of size, includes essential features like kitchens, bathrooms, plumbing, and electrical systems. These areas are among the most expensive parts of a home to construct due to the materials, fixtures, and labor involved. For example, a kitchen requires appliances, cabinetry, countertops, and specialized electrical and plumbing work. These costs are largely fixed, meaning they don’t scale down significantly based on the size of the home.

 

In a smaller home, these costly spaces make up a larger proportion of the total square footage. As a result, the price per square foot is higher. Conversely, in a larger home, these same features are spread across more square footage, which lowers the overall cost per square foot.

 

Quality Over Quantity

 

Smaller homes often pack a lot of value into a compact space. Many small homes are designed with premium materials and finishes to maximize their appeal and functionality. High-end countertops, custom cabinetry, and energy-efficient appliances can all drive up the cost per square foot, even if the home’s total size is modest. In comparison, larger homes may incorporate more standard finishes or spread upgrades over a much bigger space, reducing the price per square foot.

 

The Perception of Value

 

Homebuyers also tend to place a premium on homes that fit specific needs, such as affordability, location, or lifestyle preferences. Smaller homes often appeal to buyers who prioritize quality over size, such as young professionals, downsizers, or those seeking a second home in a desirable area. This demand can push up the price per square foot because buyers are willing to pay more for a well-located, manageable-sized home that meets their needs.

 

An Analogy to Simplify

 

To make this concept even clearer, think of buying a cake. A small, beautifully decorated cake might cost $50, while a larger sheet cake costs $100. Even though the sheet cake is more expensive overall, the smaller cake costs more per slice because it includes intricate details and premium ingredients. Similarly, smaller homes concentrate their value in fewer square feet, resulting in a higher price per square foot.

 

Why This Matters to Buyers and Sellers

 

Understanding the relationship between home size and price per square foot is crucial for both buyers and sellers. For buyers, it’s a reminder to look beyond the price per square foot and consider the overall value and quality of a home. For sellers, it highlights the importance of showcasing the features and upgrades that justify a higher price per square foot.

 

Whether you’re buying or selling, having an experienced real estate agent to guide you through the process can make all the difference. If you’re curious about how your home compares or want to explore your options in today’s market, reach out to me—I’d be happy to help you navigate the journey.

 

 

 

Posted in Home Buyers
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Oct. 30, 2024

Market Update September 2024

Latest News in Florida Real Estate: October 2024 Market Insights 

The Florida real estate market continues to evolve in October 2024, bringing both challenges and opportunities for buyers and sellers alike. With shifting interest rates, market trends, and new construction developments, it’s more important than ever to stay informed. At Florida’s Good Life, we’ve compiled the latest updates to help you navigate the current landscape and make informed decisions whether you're buying, selling, or investing.

1. Interest Rate Movements: How They Impact Buyers

The recent interest rate cuts by the Federal Reserve, which saw a reduction of 50 basis points, have created a buzz in the market. While this cut is intended to spur economic activity, its immediate impact on home loans might take several months to filter through. Current mortgage rates remain relatively high compared to previous years, but savvy buyers can take advantage of buy-down options. By paying points upfront, buyers are able to reduce their interest rate, which can help lower monthly mortgage payments.

As Diana Boyesen, our seasoned mortgage expert, noted in our latest podcast episode: “This is a time to think long-term. Buyers should be ready for a fluctuating rate environment and consider locking in rates as soon as they find a home they love.”

2. New Construction in High Demand

Production builders across Central Florida are continuing to roll out new communities, especially in areas like OakLeaf Preserve in New Smyrna Beach and along the east coast beaches. While the appeal of new construction remains strong—due to customizable features, lower maintenance costs, and energy efficiency—buyers should be aware of the hidden costs. Builders often don’t cover expenses such as title insurance and transfer taxes, so it’s crucial to factor these into your budget.

Additionally, many builders are offering mortgage incentives, with lower-cost financing options, as they seek to attract buyers in a competitive market. These incentives can offset some of the upfront costs and make new construction more appealing.

3. Market Update: Inventory and Price Trends

In terms of home inventory, Florida remains in a relatively balanced market. While inventory is slightly up compared to last year, it’s still lower than pre-pandemic levels, which is driving prices upward, especially in sought-after areas like New Smyrna Beach, Ormond Beach, and parts of Volusia County. Homes with desirable features—like larger lots, newer roofs, and energy-efficient upgrades—are selling faster and closer to asking price. The market is particularly strong for sellers in coastal areas where demand for waterfront properties remains high.

However, many sellers are also facing longer time on the market than expected. Homes that aren’t updated or priced competitively are lingering as buyers have more options to choose from. This is where an experienced team like Florida’s Good Life can help you price strategically and market your property effectively to get it sold.

4. Buyer Behavior in 2024

We’ve seen a notable shift in buyer behavior this year, especially post-pandemic. Today’s buyers are more research-driven and selective. They’re looking not just for a home, but for a community that offers the right lifestyle. From access to beaches, outdoor amenities, and restaurants to great schools and lower property taxes, buyers want it all. That's why our Florida's Good Life team emphasizes the unique aspects of each community in our listings and neighborhood tours.

If you're thinking of buying, consider your priorities: Is it location, price, or long-term value that matters most? Having a clear vision will help you stay focused in a dynamic market. We recommend talking to a local expert, like our team, to narrow down the areas and properties that fit your lifestyle goals.

5. What’s Ahead for the Florida Market  

Looking ahead, we anticipate continued demand for homes in beach communities and neighborhoods offering larger lots and new builds. While interest rates and inflation may cause some uncertainty, the underlying fundamentals of the Florida market—such as population growth and the appeal of our sunshine state—are likely to keep the market resilient.

As always, our team at Florida’s Good Life is here to help you navigate the complexities of buying or selling a home in this exciting market. Whether you’re looking to make a move, invest, or just stay informed, we have the expertise and local insight to guide you every step of the way.

 

 

Stay tuned for more updates and don't forget to subscribe to our newsletter for the latest market trends and real estate tips!

 

Posted in Market Updates
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Aug. 22, 2024

Ladies, buying a home alone? You MUST know these tips!

Ladies, buying a home alone? You MUST know these tips!

Hey, ladies! Thinking about buying your first home solo? It's not just a milestone; it's a move towards financial independence and stability. Here’s what you need to know to make it a reality:

Buying a house as a single woman might seem daunting, but it's absolutely within your reach. Here's a step-by-step guide to help you navigate this exciting journey.

Step 1: Get Your Finances in Order

First things first, you need to understand your financial situation. Check your credit score and improve it if necessary. A good credit score will help you secure better mortgage rates. Start saving for a down payment, and don't forget about closing costs and moving expenses.

Step 2: Understand Your Budget

Once you have a clear picture of your finances, set a realistic budget. Consider not just the mortgage payments, but also property taxes, insurance, maintenance, and utilities. Use online calculators to estimate what you can afford based on your income, debts, and down payment.

Step 3: Explore Special Programs for Women

There are several programs designed to help women buy homes:

Step 4: Get Pre-Approved for a Mortgage

NACA:

This non-profit organization offers mortgages with no down payment, no closing costs, and below-market interest rates. They also provide support throughout the buying process, making it a great option for first-time buyers.

Women's Homeownership Initiatives:

Some local non-profits offer special assistance to women, including grants and low-interest loans.

FHA Loans:

Ideal for first-time buyers with lower credit scores, these loans require manageable down payments and have flexible credit requirements.

VA Loans:

If you've served in the military, you can take advantage of VA loans, which require no down payment and offer favorable terms.

Before you start house hunting, get pre-approved for a mortgage. This will give you a clear idea of how much you can borrow and show sellers that you're a serious buyer. Shop around and compare offers from different lenders to get the best deal.

Step 5: Start House Hunting

Now comes the fun part—house hunting! Make a list of must-haves and nice-to-haves. Consider factors like location, size, and amenities. Don't be afraid to think long-term; your needs might change in the future.

Step 6: Make a Smart Offer

Once you find the right home, it's time to make an offer. Work with your real estate agent to determine a fair price based on the market and the condition of the house. Be prepared to negotiate and make sure your offer includes contingencies for things like inspections and financing.

Step 7: Get a Home Inspection

A home inspection is crucial to ensure you're making a sound investment. Hire a professional inspector to check for any potential issues. If problems are found, you can negotiate repairs or a lower price with the seller.

Step 8: Close the Deal

Once everything is in order, it's time to close the deal. Review all the paperwork carefully, ask questions if something isn't clear, and make sure you understand all the terms. You'll need to pay closing costs and sign the final documents to transfer ownership.

Creative Down Payment Ideas

Saving for a down payment can be challenging, but there are creative ways to make it easier:

Crowdfunding:

Platforms like GoFundMe can help you raise money from friends and family for your down payment.

Co-Buying:

Consider teaming up with a friend or family member to buy a home together. This can help you split costs and responsibilities.

Rent-to-Own:

Some sellers offer rent-to-own options, where part of your rent goes towards purchasing the home.

Final Thoughts

Buying a home as a single woman is a powerful step towards financial independence and stability. With careful planning, research, and a bit of creativity, you can make your dream of homeownership a reality. Remember, it's not just about finding a house—it's about finding a place where you can build your future. So, take the leap, do your homework, and go after your dream home with confidence. You've got this!

Employer Assistance:

Check if your employer offers any home-buying assistance programs. Some companies provide grants or low-interest loans to help employees buy homes.

Local Grants:

Research local government programs and non-profits that offer grants and assistance to first-time homebuyers.

Posted in Home Buyers, Interest Rates
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July 12, 2024

Down Payment Assistance

Down Payment Assistance Programs Information

 

Down Payment Assistance Programs for Home Buyers in Florida

Buying a home can be an exciting yet daunting process, especially when it comes to securing a down payment. Fortunately, Florida offers several down payment assistance programs to help make homeownership more attainable. In this blog post, we'll explore these programs and how they can benefit you as a home buyer. For a more in-depth discussion, be sure to check out our latest podcast episode here.

What is Down Payment Assistance?

Down payment assistance (DPA) programs provide financial support to home buyers who may not have the necessary funds to make a down payment on a home. These programs can offer grants, low-interest loans, or other financial aid to qualified buyers.

Florida Down Payment Assistance Programs

  1. Florida Housing Finance Corporation (FHFC) Programs

    • Florida Assist Second Mortgage Program (FL Assist)
      • Provides up to $10,000 in down payment assistance.
      • 0% interest, deferred second mortgage.
      • Repayment is deferred until you sell the home, refinance, or pay off the first mortgage.
    • HFA Preferred and HFA Advantage PLUS Second Mortgage
      • Offers up to $7,500 as a deferred second mortgage.
      • 0% interest with no monthly payments.
      • Repayment is deferred until the property is sold, refinanced, or the first mortgage is paid off.

  2. Local Government Programs

    • Many counties and cities in Florida offer local DPA programs. Examples include:
      • Miami-Dade Economic Advocacy Trust (MDEAT) Homeownership Assistance Program
        • Offers up to $7,250 for low- to moderate-income buyers.
      • Orange County Down Payment Assistance Program
        • Provides up to $30,000 for eligible buyers in the form of a 10-year deferred loan.

  3. Non-Profit Organizations

    • Various non-profits offer down payment assistance to home buyers:
      • Neighborhood Assistance Corporation of America (NACA)
        • Provides comprehensive home buyer assistance including down payment help.

How to Qualify for Down Payment Assistance

Qualification requirements vary by program but typically include:

  • Income Limits: Many programs are aimed at low- to moderate-income buyers.
  • First-Time Home Buyer Status: Some programs require you to be a first-time home buyer.
  • Credit Score Requirements: Most programs have minimum credit score requirements.
  • Home Buyer Education: Many programs require completion of a home buyer education course.

Benefits of Down Payment Assistance

  • Increased Affordability: Helps reduce the initial financial burden of purchasing a home.
  • Lower Monthly Payments: By reducing the loan amount, DPA can result in lower monthly mortgage payments.
  • Broader Home Selection: With additional funds, you may have more options when choosing a home.

Listen to Our Podcast for More Insights

 

For a more detailed discussion on down payment assistance programs in Florida, tune into our latest podcast episode. Listen here to get expert advice and tips on navigating these programs.

Posted in Home Buyers, Real Estate and Mortgage Resources
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May 3, 2024

Securing Your Legacy: The Crucial Steps of Estate Planning and Why Delaying Isn't an Option

By: Diana Boyesen

Estate planning isn't just for the wealthy or the elderly—it's a critical process that everyone should undertake to ensure their wishes are carried out and their loved ones are provided for after they're gone. From safeguarding your assets to designating guardians for minor children, estate planning encompasses a range of essential tasks that require careful consideration. Here, we'll outline the important steps to take in estate planning and why procrastination can have costly consequences.

 

1. Take Inventory of Your Assets

The first step in estate planning is to assess your assets, including financial accounts, real estate, investments, and personal property. Creating a comprehensive inventory will provide clarity on the extent of your estate and inform subsequent planning decisions.

 

2. Create a Last Will and Testament

A Last Will and Testament is the cornerstone of any estate plan. It allows you to specify how you want your assets distributed after your death and appoint guardians for minor children if applicable. Without a will, state laws will dictate asset distribution, which may not align with your wishes.

 

3. Establish a Trust

Depending on your financial situation and goals, setting up a trust can be an effective way to protect your assets, minimize estate taxes, and ensure efficient distribution to beneficiaries. Trusts can also provide privacy and avoid the probate process, streamlining the transfer of assets to heirs.

 

4. Designate Beneficiaries

Review and update beneficiary designations on retirement accounts, life insurance policies, and other accounts to ensure they align with your current wishes. Failing to designate beneficiaries or keeping them outdated can result in assets being distributed contrary to your intentions.

 

5. Plan for Incapacity

In addition to planning for death, estate planning should also address potential incapacity during your lifetime. Establishing powers of attorney for healthcare and finances allows trusted individuals to make decisions on your behalf if you become unable to do so.

 

6. Review and Update Regularly

Estate planning is not a one-time task—it requires periodic review and updates to reflect changes in your life circumstances, such as marriage, divorce, births, deaths, or significant financial changes. Regularly revisiting your estate plan ensures it remains relevant and effective.

 

Why You Shouldn't Wait

Delaying estate planning can have serious consequences for you and your loved ones. Without a plan in place, your assets may be distributed according to default state laws, potentially leaving out desired beneficiaries or causing family disputes. Moreover, procrastination increases the risk of incapacity or untimely death occurring before your affairs are in order, leaving your loved ones to navigate a complex and stressful process during an already difficult time.

 

By starting your estate planning process early, you gain peace of mind knowing that your wishes are documented and your loved ones are protected. Don't wait until it's too late—take the necessary steps to secure your legacy today. Your future self and your family will thank you for it.

Posted in Real Estate Strategies for Senior Retirement Planning
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May 3, 2024

Sunshine and Storms: Buying a condo in Florida

By: Diana Boyesen

You can watch the podcast here.

Over the last several decades, retiring and buying a condominium in Florida has been a highly desired plan for millions of Americans entering their golden years. Unfortunately, a combination of high insurance rates, high homeowners' association fees and high interest rates is scaring off buyers and turning Florida's once highly sought after condominium market into a possible disaster zone.   

Traditionally, a condo has been a choice for buyers looking for either a more affordable property or a low maintenance property.  The collapse of the Champlain tower south in 2021 where 98 people died caused lawmakers to make major changes to the condominium laws.  Florida lawmakers have since adopted measures aimed at ensuring the safety of aging buildings. Condominium associations are now required to regularly assess the structural integrity of their building and fully fund reserves necessary for maintenance and repairs.

Under SB4D, condo developments over 30 years old — two-thirds of all condos in Florida — must undergo inspections and immediately address critical defects. SB4D also eliminates the ability of COAs to waive reserve contributions, instead requiring that they collect the annual cost needed to repair and replace certain elements by the end of their life span, as determined by a 10-year Structural Integrity Reserve Study (SIRS).

The deadline to complete these inspections is Dec. 31, 2024. As inspection results come in, many condo associations and owners will realize the scale of the problem. Many associations may face repair costs in the millions.  Even after allocating those costs among all unit owners, many owners in older buildings may not be able to afford the increased maintenance fees and special assessments to make immediate repairs.   

Condo owners need to understand: they’re going to be on the hook. The state legislature is going to be enforcing these new laws.

According to a recent Redfin report, Florida's condominium market is in a state of freefall. Every indicator shows evidence of a market struggling to come to terms with a new reality. First, condo listings have increased by 30% in comparison to the same period one year ago. Another shocking aspect of the report is the extent to which prices in some of Florida's largest markets are retreating in comparison to condominiums nationwide.

  • Tampa condominiums are selling for an average of 1% less ($235,000).

  • Miami condominiums are selling for an average of 2.5% less ($385,000).

  • Orlando condominiums are selling for an average of 4.8% less ($200,000).

  • Jacksonville condominiums are selling for an average of 6.5% less ($254,000).

More alarming is the fact that pending sales of condominiums in four of Florida's largest markets are significantly down, or at best flat, compared to a year ago. That means Florida condos are losing their luster in the eyes of many prospective buyers.

What the report doesn’t address is that two of the biggest mortgage players Fannie Mae and Freddie Mac have also tightened their guidelines on loans for condominiums.  They have a condo questionnaire that is required for loans and they increased the criteria drastically.  They want a reserve study done every 3 years.  So, there is now a “battle” between property managers and/or board members and their attorneys and the lender who needs the questionnaire answered.  The managers don’t want to answer questions that could open them up to more liability and the lenders won’t make the loans without the questions being answered.

Many Florida condominium communities have been dramatically raising HOA fees to cover both the cost of rising group premiums and assessments for needed maintenance, and money to pay for the new requirements that are now in place.  To further muddle the waters, HOAs are having difficulty finding an insurer willing to write a policy for the community. In many cases, insurers will only cover communities after they make numerous (and costly) repairs or upgrades to existing facilities.

So, the condo world has gotten even more confusing- not only for professional lenders and realtors, but for the seller and buyers as well.  

If you are still listening, you probably think “Well, dang, I would never buy a condo now.”  And, we don’t blame you!  However, we do have some factors to consider. 

Most people talking about all the issues with condos are ignoring the fact that ALL properties in Florida are dealing with rising insurance costs and maintenance costs.  And, the maintenance costs for homes have risen as well. 

If you do want to buy a condo and we haven’t scared you off- the benefits of low maintenance living and possibly being in a location that you could not otherwise afford, might still be of interest to you. Also, the amenities offered by an association can be very attractive.

There are also different types of condos:

  • High-rise apartments with common interior hallways (usually over 9 stories)

  • Mid-rise condo (5-9 stories)

  • Low-rise condo (1-5 stories)

  • Garden-style apartments with outside entrances

  • Multi-Story townhome style condos

  • Condo-hotels and condo shares

  • Detached condos

So- let’s talk for a minute about how buying a condo is different than buying a single family residential property.

1)   When you are purchasing a property there are two things that need to be approved: the borrower and the property.  In the condo purchase there is an added approval needed- and that is the condo association. 

2)   A single family is owned “fee simple” and you own the land that the property sits on.  A condo is owned “condominium” and you do not own the land that the property sits on.

Just like the purchase of a home- the buyer will also do an inspection on the property and likely an appraisal and will go through the loan process.

If you want to purchase a condo it is really important to do your research up front

Gather all the documents you can so you have time to look at them before your inspection period expires. 

If you are using the condo rider from the FL Realtors and Florida Bar properly, then these documents are requested when you submit a contract.

  • Declaration of the condominium

  • Articles of incorporation of the association

  • Bylaws and rules

  • Most recent year end financial statements

  • FAQ

Financing for a condominium involves approving the borrower (your income, assets, job history etc), the property (the appraisal, the insurance) and the condo association.  In order to do a loan with less than 25% down the lender is going to review the following:

  • The condo questionnaire

  • The budget (including reserves)

  • The 6 months most recent board meeting minutes

  • The condo insurance and flood insurance if required

  • Any reserve studies

There is usually a cost to the borrower up front for these documents when ordering the official versions..

The review of these documents will determine the Loan to Value that the lender will offer on the property and what type of loan.  If the condo association can’t meet the requirements then there is the possibility of doing what is called a “non-warrantable condo” loan. The Department of Housing and Urban Development also keeps a database of warrantable condos that will be applicable for an FHA loan. This resource is also available for VA loans here.

Doing a loan will require a questionnaire filled out by the management association. For less than 25% down the full condo review will need to be done.  If you are putting 25% or more down then the limited review will suffice.  And, non-warrantable condo lenders will have their own review process.

It isn’t an easy journey to navigate, but if you would like an expert to guide you through it, reach out to us!

 

 

Posted in Home Buyers
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May 2, 2024

Last Will and Testament: Why You Need One

By: Diana Boyesen

In the realm of estate planning, there's one document that stands as a cornerstone of your wishes and directives: the Last Will and Testament. While contemplating mortality may not be the most comfortable of topics, having a will in place is a crucial step in securing your legacy and ensuring your loved ones are taken care of according to your wishes. Let's delve into the benefits of having a Last Will and Testament and why it's an essential document for everyone to consider.

 

1. Clarifies Your Wishes

A Last Will and Testament is your opportunity to clearly outline how you want your assets distributed after your passing. Without a will, state laws (intestacy laws) will determine how your assets are distributed, which may not align with your wishes. By having a will, you have control over who receives what, whether it's your financial assets, real estate, heirlooms, or sentimental belongings.

 

2. Appoints Guardianship

For parents with minor children, a will is indispensable for appointing guardians to care for them in the event of your untimely passing. Designating a guardian ensures that your children will be in the care of someone you trust and who shares your values and parenting philosophy.

 

3. Avoids Family Disputes

Without a clear directive from a Last Will and Testament, family disputes over asset distribution can arise, leading to unnecessary stress, conflict, and even legal battles among surviving family members. A well-crafted will can help mitigate these potential conflicts by providing clear instructions and minimizing ambiguity.

 

4. Expedites Probate Process

Having a will in place can streamline the probate process, the legal process of administering your estate after your death. With a clearly defined will, the probate court can more efficiently distribute your assets according to your wishes, potentially saving time and reducing administrative costs for your estate.

 

5. Protects Unmarried Partners and Stepchildren

For individuals in non-traditional family structures, such as unmarried partners or stepchildren, a Last Will and Testament is crucial for ensuring they are included in your estate plan. Without a will, these individuals may not be entitled to any of your assets, regardless of the nature of your relationship.

6. Provides Peace of Mind

Perhaps the most significant benefit of having a Last Will and Testament is the peace of mind it brings. Knowing that your affairs are in order and your loved ones will be provided for according to your wishes can alleviate anxiety and uncertainty about the future.

Conclusion

While it's easy to postpone estate planning discussions, creating a Last Will and Testament is a vital step in securing your legacy and providing for your loved ones. Whether you're young or old, single or married, having a will ensures that your wishes are honored, and your assets are distributed according to your intentions. Don't wait until it's too late—take the necessary steps to create your Last Will and Testament today. Your future self and your loved ones will thank you for it.

Visit our referral partner page here to find an attorney that specializes in Estate Planning.  And, as always if you have questions please reach out to us.  We are always happy to help if you have any questions.

Posted in Real Estate Strategies for Senior Retirement Planning
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May 2, 2024

What is the difference between a Ladybird Deed and a Quitclaim deed?

By: Diana Boyesen

A Ladybird Deed, also known as an enhanced life estate deed, is different from a Quitclaim Deed in several key ways:

 1. Transfer of Ownership:

   - Lady Bird Deed: With a lady bird deed, the property owner retains control over the property during their lifetime, including the right to sell or mortgage it. Upon the owner's death, the property automatically transfers to the designated beneficiaries named in the deed without going through probate.

   - Quitclaim Deed: A quitclaim deed transfers the property owner's interest in the property to another party immediately without any warranties or guarantees about the title. It does not ensure that the grantor actually owns the property or that the title is free from defects.

 2. Probate Avoidance:

   - Lady Bird Deed: One of the main benefits of a lady bird deed is that it allows the property to transfer to the designated beneficiaries without the need for probate proceedings. This can save time and money for the beneficiaries and helps to avoid potential complications associated with probate.

   - Quitclaim Deed: Property transferred via a quitclaim deed may still be subject to probate, depending on the specific circumstances and the laws of the jurisdiction.

 3. Retention of Control:

   -Lady Bird Deed: The property owner retains full control over the property during their lifetime, including the right to sell, mortgage, or transfer it to another party. The designation of beneficiaries in the deed does not restrict the owner's ability to use or dispose of the property as they see fit.

   - Quitclaim Deed: Once a quitclaim deed is executed and recorded, the grantor relinquishes any claim they have to the property, and the grantee assumes ownership. The grantor no longer has any control over the property.

4. Warranty of Title:

   - Lady Bird Deed: Typically, a lady bird deed contains warranties of title similar to those found in warranty deeds. This means that the grantor guarantees that they have clear title to the property and have the right to transfer it.

   - Quitclaim Deed: A quitclaim deed offers no warranties of title. The grantor simply transfers whatever interest they have in the property to the grantee, without making any guarantees about the quality or validity of the title.

 

In summary, while both lady bird deeds and quitclaim deeds are used to transfer property interests, they serve different purposes and offer different benefits. Lady bird deeds are often used as estate planning tools to avoid probate and ensure the smooth transfer of property to designated beneficiaries, while quitclaim deeds are typically used for simpler, less formal property transfers.

If you have questions about which one you should use, reach out to us. And, it is always a good idea to consult an attorney who specializes in Estate Planning.  You can find our recommendations on our referral page.

 

Posted in Real Estate Strategies for Senior Retirement Planning
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May 1, 2024

What is a LadyBird Deed?

What exactly is a Lady Bird Deed?

by: Diana Boyesen

It's a legal instrument enabling the automatic transfer of property upon the owner's death, sparing the need for probate proceedings. In Florida, it not only facilitates this transfer but also grants the current owner continued control and use of the property throughout their lifetime. The Lady Bird Deed, sometimes referred to as an enhanced life estate deed, is fully recognized under Florida law.

 

Here are the key elements required for a Lady Bird Deed to be valid in Florida:

 

1. Grantor: The current property owner.

2. Enhanced life estate: Allows the owner to retain control of the property during their lifetime.

3. Remainder beneficiary: The designated individual or individuals who inherit the property after the owner's demise.

4. Legal description: A formal description used for property identification.

5. Homestead provision: If applicable, a clause maintaining the property's homestead exemption.

6. Recording: The deed must be officially recorded to take effect.

 

Let's break down the process:

 

1. Grantor: The property's current owner executes the Lady Bird Deed, dividing their fee simple interest into an enhanced life estate and a remainder interest.

2. Enhanced Life Estate: This empowers the owner, known as the life tenant, to manage the property during their lifetime, with the property automatically transferring to the designated beneficiaries upon the life tenant's death.

3. Remainder Beneficiary: The individuals inheriting the property upon the life tenant's demise. They have no ownership rights until the life tenant passes away.

4. Legal Description: A precise description of the property for formal identification.

5. Homestead Provision: Crucial for maintaining the property's homestead exemption, particularly when transferring homestead properties to children.

6. Recording: Official documentation of the deed to establish its legal validity.

 

Advantages of a Lady Bird Deed:

 

- Avoids Probate: Property transfers seamlessly to beneficiaries without the need for probate proceedings.

- Cost-effective: Compared to setting up a trust, a Lady Bird Deed is relatively inexpensive.

- Simplicity: It serves a single purpose efficiently—transferring property after the owner's death.

- Revocable: The owner retains the freedom to modify the deed during their lifetime.

 

Disadvantages in Florida include potential lack of asset protection, constitutional restrictions on disinheriting certain family members, and complexities arising from unexpected deaths or changes to the estate plan.

 

A Lady Bird Deed differs from a Life Estate Deed in that it grants the owner full control over the property during their lifetime. While both deeds establish a life estate, only the Lady Bird Deed allows the owner such extensive control.

 

Regarding Transfer on Death Deeds (TOD deeds), while not available in Florida, the Lady Bird Deed effectively achieves the same outcome, transferring property ownership upon the owner's death.

 

Moreover, a Lady Bird Deed preserves the property's homestead character, safeguarding it from creditors and potentially benefiting Medicaid planning strategies.

 

In summary, a Lady Bird Deed offers a straightforward and cost-effective means of property transfer, particularly for homestead properties, while bypassing the complexities of probate.

Tax Implications:

Transferring property through a lady bird deed doesn't incur a gift tax, as it doesn't constitute a completed gift during the property owner's lifetime. Furthermore, the beneficiary should still benefit from a step-up basis in the property. This means that if the property is eventually sold, the beneficiary would only pay income tax on the appreciated value from the date of the original property owner's death.

 

Civil Judgments:

Lady bird deeds have specific considerations if a money judgment is issued against either the current owner or the designated remainder beneficiaries. If there's a judgment against the current owner, except for homestead property, the property isn't shielded from creditors. A judgment lien automatically attaches to any non-homestead property conveyed through a lady bird deed, allowing the lienholder to foreclose on the property. However, if a judgment is against a remainderman, it doesn't affect the owner's interest in the property during their lifetime since the remainderman's interest only vests upon the owner's death.

 

Title Insurance:

Most major title insurance companies understand lady bird deeds and typically don't hesitate to insure properties subject to them. They don't require consent from remaindermen when the property is sold since beneficiaries have no vested property interest. However, some smaller or less experienced title insurance companies may require additional steps due to a lack of understanding about lady bird deeds.

 

Lady Bird Deed Forms:

You can get a form here. While this option is cheaper than hiring an attorney, it's crucial to have a clear understanding of lady bird deeds and the preparation process. Many people opt for attorney-prepared deeds for peace of mind and expert legal guidance.

 

Lady Bird Deed FAQs:

Some common questions about lady bird deeds in Florida include the cost, legality, and tax consequences. Lady bird deeds cost a flat fee, with additional charges if recording assistance is needed. They are legal in Florida and a few other states, and they generally don't trigger gift taxes due to their nature as incomplete gifts during the owner's lifetime.

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