Author: stallion-admin

Single-family rentals (SFRs) are established as a compelling investment opportunity in the real estate market, offering a unique blend of stability and growth potential. These standalone residential properties, rented out to tenants, provide investors with a tangible asset that generates steady income while potentially appreciating in value over time.

As the demand for single-family homes continues to rise among renters seeking more space and privacy, SFRs have become an increasingly attractive option for both individual and institutional investors looking to diversify their portfolios.

The acronym IDEAL encapsulates the primary benefits that make SFRs an attractive investment vehicle:

Income – SFRs provide a steady stream of rental income, offering investors a reliable cash flow. Unlike some other real estate investments, single-family homes tend to attract long-term tenants, resulting in more stable and consistent rental income. This regular cash flow can help offset mortgage payments, property taxes, and maintenance costs while potentially providing additional profit.

Depreciation – One of the significant tax advantages of investing in SFRs is depreciation. The IRS allows property owners to deduct the cost of the building over its useful life, typically 27.5 years for residential properties. This non-cash expense can significantly reduce an investor’s taxable income, potentially leading to substantial tax savings.

Equity – As tenants pay rent, a portion of that money goes towards paying down the mortgage principal, building equity in the property. Over time, this equity accumulation can represent a significant portion of the investment’s return. Additionally, as property values appreciate, the equity in the home increases, further enhancing the investor’s wealth.

Appreciation – Real estate, including single-family homes, has historically appreciated in value over the long term. This appreciation can lead to substantial gains when the property is eventually sold. SFRs in desirable neighborhoods or growing markets may experience even higher rates of appreciation, potentially outperforming other types of real estate investments.

Homes in the United States have appreciated an average of 5.56% per year for the past 60 years.

Leverage – Investors can use leverage to purchase SFRs with a relatively small down payment, typically 20-25% of the property’s value. This allows investors to control a valuable asset with a fraction of its total cost, amplifying potential returns. As the property appreciates and the mortgage is paid down, the investor’s return on investment can be significantly higher than the initial cash invested.

Single-family rentals offer a unique combination of these IDEAL factors, making them a superior investment alternative for many reasons, especially for individuals.

• Lower barrier to entry compared to multi-family or commercial properties
• Easier management and maintenance than larger rental complexes
• Appeal to a wide range of tenants, from young families to retirees
• Potential for higher appreciation rates in desirable neighborhoods
• Flexibility to sell to either investors or owner-occupants when exiting the investment

By leveraging the IDEAL elements of income, depreciation, equity, appreciation, and leverage, investors in single-family rentals can build long-term wealth while enjoying the benefits of passive income and tax advantages. As with any investment, it’s crucial to conduct thorough research and due diligence before committing to a property, considering factors such as location, market trends, and potential rental income.

For more information on Single-family rentals, download our Rental Income Properties guide. We welcome the opportunity to meet with you and explain more about the opportunities that make SFRs such an attractive investment.

The real estate landscape is shifting, with new practices like mandatory buyer’s agreements becoming the norm. While these agreements aim to provide clarity and protection, they can also create unexpected complications.

Imagine signing a buyer’s agreement with an agent, then stumbling upon your dream home during a casual open house visit. This seemingly innocent scenario could lead to a costly mistake, potentially leaving you on the hook for thousands of dollars in out-of-pocket fees.

As the industry evolves, it’s crucial for homebuyers to understand the implications of these agreements and the potential pitfalls of going solo after signing one.

Contacting Listing Agents Directly

Visiting open houses on your own or calling the listing agent is a quick way to discover information and what you like and dislike. Be sure to register with the host agent and inform them if you are currently working with an agent. Keep your excitement in check, as the host agent represents the seller. It’s best to keep your intentions discreet, as anything you say or do can be used against you in negotiations!

Builder Homes

Creating your dream home is an adventure. Many buyers are surprised to learn that a builder’s role is very similar to that of a traditional home seller. Your buyer’s agent will represent you as a buyer and use their expertise to ensure you have the best possible experience and get the best deal. Many builders budget for a buyer’s agent commission regardless of whether you have one, so take advantage of my experience and understanding by following their policies when visiting developments.

For Sale By Owner

If you find a For Sale by Owner property, let your agent know so they can help you maximize the process. They have the expertise to make contact, negotiate, and ensure the entire transaction goes smoothly. Your agent can help you save money in the transaction and, more importantly, save you the headaches of managing the purchase on your own.

Example

When a buyer who has signed a written buyer’s agent agreement contacts another agent, it can lead to a complex situation regarding procuring cause and commission payments. Here’s how it might unfold:

The buyer signs an exclusive buyer’s agent agreement with Agent A, establishing a legal relationship and potentially agreeing to pay a fee for their services.

The buyer then contacts Agent B, perhaps at an open house or through another listing, without informing them about the existing agreement with Agent A. Agent B shows the buyer a property, and the buyer decides to purchase it through Agent B.

A dispute may arise between Agent A and Agent B over who is the procuring cause of the sale. This dispute would typically be resolved through arbitration by the local real estate board.

If Agent B is determined to be the procuring cause (for example, if they showed the property and facilitated the sale), they may be entitled to the selling portion of the commission from the transaction.

However, the buyer may still be liable to pay Agent A’s fee separately, as per their written agreement. This is because the buyer’s agent agreement is a contract between the buyer and Agent A, independent of the outcome of the procuring cause dispute.

In this scenario, the buyer might end up effectively paying two fees: one indirectly through the sale (which goes to Agent B as the procuring cause) and one directly to Agent A as per their agreement.

This situation underscores the importance of clear communication between buyers and agents, and the need for buyers to understand their obligations under a buyer’s agent agreement. It also highlights why agents should always ask potential clients if they’re already working with another agent to avoid such complications.

For more information, download our Buyer’s Agent Guide. You should be comfortable talking with a real estate professional how this works and your available options.

Recent policy changes made by the National Association of Realtors (NAR) have shifted the dynamics of buyer’s agent compensation, prompting sellers to reconsider their strategies.

Many buyers, especially first-time homebuyers, have limited savings and may struggle to cover additional costs beyond the down payment, closing costs, and other expenses associated with purchasing a home. Mortgage lenders typically do not allow buyers to include agent fees in their loan amount, meaning buyers must pay these fees out-of-pocket, which can be a significant financial burden.

Requiring buyers to cover their agent’s compensation, as opposed to the traditional seller-offered model, exacerbates affordability issues and limits many buyers’ ability to purchase a home. To maximize market appeal and facilitate a quicker sale at full market value, sellers should strongly consider offering buyer’s agent compensation.

1. Increased Buyer Pool: Offering compensation to buyer’s agents can attract more potential buyers. Many buyers rely on agents to navigate the home-buying process, and agents are more likely to show homes where they are compensated, expanding the pool of potential buyers for the seller’s home.
2. Competitive Advantage: In a competitive real estate market, offering buyer’s agent compensation can make a seller’s property stand out compared to similar listings that do not offer such incentives. This could lead to quicker sales and potentially higher offers.
3. Facilitated Negotiations: Providing compensation can simplify negotiations. Without the need for buyers to negotiate agent fees separately, the transaction process becomes more straightforward, reducing potential friction points that could delay or derail a sale.
4. Legal and Compliance Benefits: Buyer agents help ensure compliance with legal and regulatory requirements during real estate transactions. By compensating buyer agents, sellers can mitigate the risk of non-compliance and potential litigation, which could arise from handling complex paperwork and disclosures on their own.
5. Market Perception: Not offering buyer’s agent compensation might create a perception that the seller is less flexible or cooperative, which could deter potential buyers and their agents. This perception can be particularly detrimental in markets where such compensation is customary.
6. Preservation of Market Norms: While the NAR settlement allows for commission negotiations, many buyers and sellers are accustomed to the traditional model where sellers offer compensation to buyer’s agents. Deviating from this norm might confuse or alienate potential buyers, affecting the property’s marketability.

Sellers who choose to offer buyer’s agent compensation can enhance their property’s appeal and attract a wider range of buyers resulting in obtaining the highest price, in the shortest time, with the fewest problems. In a competitive market, this strategic decision may be crucial for achieving a successful and timely sale.

The U.S. Department of Veterans Affairs, known as VA, issued a policy change that now allows payment to buyer brokers on VA loans. They will be subject to certain safeguards, such as the requirement that all buyer-broker fees charged to veterans "must be reasonable and customary within local markets." The circular is effective Aug. 10, 2024, and is valid until rescinded.

The VA also clarified that veterans can still ask sellers to cover these fees which in most cases will be negotiated in the offer to purchase agreement. As the practicality of the settlement of the lawsuit becomes clearer, VA is expected to issue a permanent policy.

This change in policy will protect veterans in situations where there is competition for a particular property and the seller might select another offer because those buyers were paying their own buyer’s agent fee. Prior to this policy change, veterans were not allowed to pay, "under any circumstances, be charged a brokerage fee or commission in connection with the services of such individuals."

Both the National Association of REALTORS� and the Mortgage Bankers Association have been lobbying the VA to address this prohibition and are thankful for addressing the issue to keep veterans who want to use their VA benefits to purchase as home.

VA mortgage loans have many benefits and options to structure a home purchase to fit your individual situation. Your real estate professional can help you find the home that fits your needs with affordable financing.

For more information on changes with buyer’s agents, download Buyers Agent Guide and contact your agent with any questions you may have.

Official Tourism Website of Pensacola, Florida

 

Visit Pensacola

https://www.visitpensacola.com

 

Discover nearly 500 years of history, unique shopping, and luxurious places to stay when you plan a trip to Pensacola, Florida.

The cost of living in Pensacola, Florida, is 11% lower than the state average and 13% lower than the national average. Pensacola, FL, housing is 25% cheaper than the U.S. average, while utilities are about 11% pricier.

Pensacola is a city in the Florida Panhandle in the United States. It is the county seat and only city in Escambia County. It is the principal city of the Pensacola Metropolitan Statistical Area, which had 511,503 residents in 2020.

 

Housing stats 

What Is My Home Value? 

The C-Note is a short version of the monthly newsletter, where we discuss all things real estate: investing, buying, selling, landlord, and tenant.

Charles Stallions, A Real Estate Broker since 1995, Charles holds many certifications, including (CRS) Certified Residential Specialist, (SREE) Senior Real Estate Expert, (CPI) Certified Property Investor, New Home Specialist, and Certified Buyer Expert. Charles believes a well-informed buyer or seller is an educated buyer or seller.

Bottom Line: “We ‘R’ The Realtors For That.” Sign up for our Monthly Real Estate Newsletter

We are Ambassadors for Pensacola, Pace, and Gulf Breeze, Florida. Whether you’re a first-time guest or a frequent visitor, do as the locals do when you need to know something — whether about an excellent place to eat, job opportunities, or a real estate question. Call or text Charles Stallions at 850-476-4494 or email [email protected]. It’s Who We “R”

More Information for the Military, Including PCS

When a military person receives orders for a Permanent Change of Station (PCS) to Pensacola, understanding the local area, housing options, and support resources can make the transition smoother. Charles Stallions A long Time Pensacolian can help you form benefits to housing. Here’s what they should know:

 

1. Housing Options

• On-Base Housing: Pensacola Naval Air Station (NAS) offers on-base housing through the Corry Station housing office, but availability can vary. It’s essential to apply early since wait times depend on the season and housing demand.
• Off-Base Housing: If on-base housing isn’t available or suitable, Pensacola has a range of neighborhoods with military-friendly rental and purchase options. Be sure to budget for utilities and additional costs since these may differ from on-base housing.
• BAH Rates: Basic Allowance for Housing (BAH) rates in Pensacola are specific to rank and dependents. Knowing your BAH rate will help determine whether on-base or off-base living is more cost-effective.

 

2. Schooling Options

• Pensacola offers various public, private, and charter schools. Families with school-age children may want to research school ratings, distance from base, and enrollment requirements.
• School Liaison Officer (SLO): NAS Pensacola provides a SLO to help military families understand local education options and coordinate school transitions.

 

3. Community and Family Resources

• The Fleet and Family Support Centeron NAS Pensacola offers resources, from relocation assistance to counseling and support groups. They provide valuable help with integration into the local community.
• Childcare: On-base childcare options exist, but early application is recommended due to potential waitlists. Off-base childcare centers are available in Pensacola, though costs and availability vary.

 

4. Local Area and Lifestyle

• Pensacola is known for its beaches, outdoor activities, and historical sites. The military community is well-integrated, offering opportunities to socialize with both military and civilian residents.
• The area has a variety of recreational activities, and the base itself offers amenities like gyms, pools, and recreational facilities, which can enhance quality of life during your time stationed there.

 

Understanding these aspects can ease the PCS transition and help a military family feel at home more quickly in Pensacola.

The C-Note is a short version of the monthly newsletter where we talk about all things

real estate: investing, buying, selling, landlord, and tenant.

Charles Stallions, A Real Estate Broker since 1995, Charles holds many certifications, including (CRS) Certified Residential Specialist, (SREE) Senior Real Estate Expert, (CPI) Certified Property Investor, New Home Specialist, and Certified Buyer Expert. Charles believes a well-informed buyer or seller is an educated buyer or seller.

Bottom Line: “We ‘R’ The Realtors For That.” Sign up for our Monthly Real Estate Newsletter

We are Ambassadors for Pensacola, Pace, and Gulf Breeze, Florida. Whether you’re a first-time guest or a frequent visitor, do as the locals do when you need to know something — whether about an excellent place to eat, job opportunities, or a real estate question. Call or text Charles Stallions at 850-476-4494 or email [email protected]. It’s Who We “R.”

Authored by Charles Stallions, CRS, GRI, CBR, a leading real estate broker in the Florida Panhandle who has helped thousands of families move since 1995.

Mortgage 101: Are you thinking of financing, refinancing, or just needing to understand how the process works? We squash the mortgage myths, and it all starts here. We research whether you need a VA, FHA, conventional, or non-traditional owner-financing loan. We can help simplify the process and remove the challenges. Call or Text “Mortgage 101” to Charles at 850-476-4494 for our FREE INFO PAK.

How to Get Mortgage Info and a FREE Credit Report

“Explore our latest inventory of homes or conduct your own search at your convenience.

Check out the latest Guide to Buying a Home.

Check out the latest Guide to Selling Your Home.

Are you looking to sell your home? Click here for a Free Appraisal and a Guide on Selling Your Home in the current market where selling myths are debunked.

“We ‘R’ The Realtors For That.” Sign up for our Monthly Real Estate Newsletter

We are Ambassadors for Pensacola, Pace, and Gulf Breeze, Florida. Whether you’re a first-time guest or a frequent visitor, do as the locals do when you need to know something — whether about an excellent place to eat, job opportunities, or a real estate question. Call or text Charles Stallions at 850-476-4494 or email [email protected]. It’s Who We “R.”

Authored by Charles Stallions, CRS, GRI, CBR, a leading real estate broker in the Florida Panhandle who has helped thousands of families move since 1995.

In today’s fast-paced world, home automation is becoming increasingly popular among homeowners seeking to enhance convenience and reduce energy costs. With advancements in technology, smart home devices offer innovative solutions that not only simplify daily tasks but also promote energy efficiency and sustainability.

Whether you’re looking to upgrade your existing home or are in the process of building a new one, incorporating these home automation trends can significantly improve your living experience while saving you money in the long run.

• Smart Lighting – Automate your lighting to save on energy bills by setting schedules and controlling brightness and color through a smartphone app.
• Enhanced Home Security – Invest in smart security systems with features like facial recognition, motion sensing, and real-time alerts to enhance safety and provide peace of mind.
• Smart Thermostats – Use smart thermostats to learn your schedule and optimize heating and cooling, reducing energy consumption and lowering utility costs.
• Voice-Controlled Assistants – Incorporate voice-controlled assistants to manage daily tasks and control other smart devices, enhancing convenience and efficiency.
• Smart Appliances – Upgrade to smart appliances that offer features like remote control, energy efficiency, and inventory management, particularly in the kitchen.
• Sustainable Living Solutions – Implement energy-efficient appliances and solar-powered systems to reduce your carbon footprint and utility expenses.
• Smart Entertainment Systems – Integrate smart entertainment systems for a customized audio-visual experience that can be controlled remotely or by voice.
• Touchless Technology -Install touchless faucets and smart showers to promote hygiene and water conservation while adding convenience to daily routines.
• Eco-Friendly Smart Toilets – Consider eco-friendly smart toilets that offer features like water-saving flushes and self-cleaning capabilities, contributing to a sustainable lifestyle.

By integrating these home automation trends into your living space, you can create a more efficient, convenient, and enjoyable home environment. Not only do these innovations enhance your daily routines, but they also contribute to long-term savings on energy costs and improve the overall value of your property.

Embrace the future of home living by exploring these smart solutions and take the first step toward a more automated and sustainable lifestyle.

Pre-approval is a comprehensive process where the lender verifies the buyer’s financial information, including credit history, income, and assets. Pre-approval provides a conditional commitment from the mortgage company to lend a specific amount, pending appraisal of the property.

Pre-qualification is an initial assessment based on self-reported financial information provided by the buyer. It gives a rough estimate of how much a buyer might be able to borrow but it is merely an opinion.

Despite the well-known advantages of getting pre-approved for a mortgage early in the home-buying process, many buyers remain resistant even to their detriment. Here are several reasons why:

Some buyers may not fully understand the benefits of pre-approval or may underestimate its importance. They might see it as an unnecessary step rather than a strategic move that can give them a competitive edge and streamline the home-buying process.

Buyers often perceive the pre-approval process as complicated and time-consuming. Gathering financial documents, filling out applications, and dealing with lenders can seem daunting, especially for first-time buyers unfamiliar with the process.

Potential buyers may fear that they won’t qualify for a mortgage or won’t get approved for the amount they need. This fear of rejection can lead them to delay or avoid the pre-approval process altogether.

The pre-approval process requires sharing sensitive financial information, which some buyers may be uncomfortable with. Concerns about privacy and data security can make buyers hesitant to initiate pre-approval.

Buyers who feel confident in their financial situation might not see the need for pre-approval. They might believe they will easily secure a mortgage when needed and therefore consider pre-approval an unnecessary precaution.

Some buyers may be waiting for the perfect moment to get pre-approved, such as when they have a specific property in mind or when they believe their financial situation will improve. This can lead to delays and missed opportunities.

The belief that mortgage pre-approval will negatively impact their credit score can deter some buyers. Although pre-approval does involve a credit check, the impact is typically minor and temporary, but this is not always clearly understood.

Procrastination and indecision can also play a role. The home-buying process involves many decisions and actions, and pre-approval might get pushed aside in favor of more immediate tasks or simply due to procrastination.

Some buyers believe that they can get pre-approved later in the process without any negative consequences. This assumption can lead to delays and complications, especially in competitive markets where pre-approval can be crucial for making a timely offer.

"Pre-qualification is the crucial first step in the home buying journey, providing buyers with an initial understanding of their borrowing capacity and setting the foundation for a successful and informed search for their dream home."

Among the benefits to buyers are enhanced buying power, competitive edge, negotiating power, streamlined process, confidence, and peace of mind. If there are potential issues identified early in the process, there may be time to cure them without delaying a transaction.

Pre-approval benefits the buyer directly as well as the seller by having a qualified buyer that can close the sale. Download our Buyers Guide and Buyers Agent Guide.