Author: stallion-admin

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 The circular is effective Aug. 10, 2024, and is valid until rescinded.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.

 

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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.

Traditionally in the U.S. housing market, the seller has offered the buyer’s broker and agent a share in the commission specified in the listing agreement between the seller and the listing broker and agent. In a settlement between the National Association of REALTORS�, beginning on August 17, 2024, buyers will have to sign an agreement with their buyer’s agent specifying what services will be available and the fee the buyer’s agent is charging.

Many sellers may continue to offer compensation to the buyer’s broker and agent, maintaining the traditional practice of the seller paying both sides of the commission. However, when no offer of compensation is made, there are several distinct alternative ways to facilitate the buyer agent’s fee, as well as a myriad of variations to suit different scenarios.

In an instance where the seller doesn’t offer compensation to buyer agents regarding a property you’re interested in, there are several options to consider:

1. Negotiation with the Seller
   As your agent I can negotiate with the seller or their agent, on your behalf, to include the buyer agent’s commission in the terms of the sale. This becomes part of the overall negotiation strategy when making an offer.
2. Adjusting the Purchase Offer
   As your agent, I can modify the offer to indirectly cover the commission by raising the purchase price to include the commission and have it included in the financing. For example, if a home is listed at $400,000, and the commission is $12,000, the offer would be for $412,000 with a condition that the seller pays a $12,000 commission to the buyer’s agent.

   This approach ensures the seller receives their expected amount while covering the commission.

3. Seller Concessions
   As your agent, I can negotiate for seller concessions, where the seller agrees to pay a portion of the closing costs. This can include loan origination fees, appraisal fees, points, and other items that are disclosed in the offer to purchase.
   Seller concessions can help offset your out-of-pocket expenses, potentially making the purchase more affordable even with commission obligations.
4. Buyer Pays Commission Directly
   If the seller refuses to pay the buyer’s agent commission and it can’t be incorporated into the purchase price, it may be necessary to pay the commission directly. This would be discussed and agreed on before proceeding with any offer, and it would be clearly stated in the buyer’s agency agreement.

It’s important to note that any combination of these strategies may be used to find the best solution for your specific situation. The overall goal is to ensure you can pursue properties you’re interested in while fairly addressing the commission aspect.

Download our Buyer’s Agent Guide for more information.

Last year, U.S. homeowners faced an average property tax bill exceeding $4,000, marking the highest increase in five years, according to data from Attom Data Solutions, a real estate data firm. Property taxes nationwide amounted to over $363 billion in 2023, reflecting a 6.9% rise, largely attributed to inflationary pressures on local government costs and public employee wages.

States with the highest effective property tax rates included Illinois, New Jersey, Connecticut, New York, and Nebraska, with notable disparities in tax increases observed across different regions, such as a 31.5% increase in Charlotte, North Carolina, and a 15.2% rise in Atlanta.

Property taxes are determined by the assessed value of the property and applying the tax rates for the different taxing authorities for that year. Generally, homeowners are notified of the assessed value of the property for that year, many times, even before the tax rate is set.

There is often a procedure for disputing the assessment, which may involve various processes. In some states, independent appraisal boards convene to review arguments from the taxpayer and a representative of the taxing authority.

To help further understand the process, here are some helpful definitions:

Assessment Process – The local government assesses the value of your property periodically to determine its taxable value.

Taxable Value – This is the value of your property that is subject to taxation, which may not necessarily be the same as its market value.

Tax Challenge – Homeowners have the right to appeal their property tax assessment if they believe it is too high.

Tax Rates – Typically determined by the taxing authority based on funding needs to generate the necessary revenue.

Tax Exemptions – Some homeowners may qualify for tax exemptions or reductions based on factors like age, disability, or veteran status.

Escrow Accounts – Many homeowners pay their property taxes through an escrow account set up by their mortgage lender, which is included in their monthly mortgage payment.

Tax Due Dates – Property taxes are typically due annually or semi-annually, depending on local regulations.

Penalties for Non-payment – Failure to pay property taxes on time can result in penalties, interest charges, and even the loss of your property through tax foreclosure.

For information about federal income taxes relating to homeownership, download the Homeowners Tax Guide.

Congratulations on your offer being accepted! In many cases, you may have a provision in your sales contract for a satisfactory home inspection. You’re one step closer to owning your dream home. Now is the time to choose a home inspector to take a closer look at the property.

Inspectors are thorough and in some states are required to be licensed. They have extensive training and follow strict rules to inspect the home’s structure, electrical systems, AC and heating, plumbing, appliances, and many other aspects.

Inspectors find things you might not be familiar with or have overlooked. Even in brand-new construction, inspectors will find issues. This way, you know about the problems and can determine how to deal with them.

Inspections help you make decisions. If the inspection uncovers big surprises, you may want to ask the seller to make repairs or lower the sales price. You may also decide to walk away from the transaction.

It’s better to know about problems before you close the sale on a home. No one likes it when an inspector finds deficiencies, but it’s better to know about them upfront than to find out later. An inspection can help you avoid surprises down the road and make an informed decision about your purchase.

Your agent can recommend a qualified inspector and answer questions you may have about the process and what to expect. Another alternative is to ask friends who have purchased a home recently about the inspector they used and any suggestions they might have.

Some additional tips for hiring a home inspector:

• Make sure the inspector is licensed, if required, and insured. Ask if they belong to any professional organizations.
• Ask the inspector about their experience and what they will be inspecting, as well as the type of report you will be receiving from them and whether it includes pictures of items in question.
• Ask if you can be present for the inspection so you can ask questions and watch the process to better understand.

By following these tips, you can hire a qualified home inspector who will help you make a wise decision about your purchase and protect you from unforeseen surprises.

There is a technique that has been attributed to Benjamin Franklin and used when faced with a decision. As the lore goes, whenever Ben was faced with a decision, like you are now, he’d take a piece of paper, draw a line down the middle of it. On the left side, he’d list all the reasons he should do something and on the right side, he’d list the reasons to avoid doing that thing.

Would-be home buyers are faced with the decision of whether to buy in today’s market with uncertainty about inflation, the presidential election, the economy, higher than recent mortgage rates, and increased home prices, just to mention a few.

Some people have been put on the sidelines because they cannot qualify for a mortgage and others have sidelined themselves, even though they have the funds and resources, because of all the "noise" in the market. Looking at the advantages of renting versus buying may bring clarity.

Advantages of Renting:

• Financial Flexibility: Renting typically requires a lower upfront cost, making it more accessible for individuals with limited savings or those looking to manage their finances conservatively.
• Maintenance Responsibility: Renters are often not responsible for major maintenance and repair costs, as these are typically the landlord’s responsibility, allowing for a more worry-free living experience.
• Mobility: Renting provides greater flexibility to relocate quickly if job opportunities or personal circumstances change without the commitment of selling a property.
• Amenities and Services: Many rental apartments offer on-site amenities such as gyms, pools, and concierge services, providing added convenience and luxury without ownership responsibilities.
• Predictable Costs: Renters usually have fixed monthly costs for rent, making budgeting more straightforward as they don’t need to account for unexpected homeownership expenses.

Advantages of Buying:

• Equity Building: Homeownership allows you to build equity over time as you pay down your mortgage, which can serve as a valuable asset and investment for the future.
• Stability and Control: Owning a home provides stability and control over your living environment, allowing you to personalize and renovate the property to your liking.
• Tax Benefits: Homeowners may benefit from tax deductions on mortgage interest and property taxes, potentially reducing their overall tax liability.
• Long-Term Investment: Real estate has historically appreciated in value over the long term, potentially leading to significant wealth accumulation.
• Sense of Ownership: Owning a home often brings a sense of pride and accomplishment, as well as the freedom to make decisions about the property without seeking landlord approval.

The Ben Franklin balance sheet might suggest that whichever side had the greatest number of reasons, that would be the appropriate action. If each item had the same weight of importance that might be logical. However, some reasons might tip the scale dramatically in favor of taking a particular action.

The equity building aspect of homeownership is exactly that type of reason. With each payment made on the mortgage, a portion of it reduces the principal balance due which builds equity in the home. Each month, a larger amount goes to the principal.

Homes on a national basis have experienced a 5.56% annual appreciation over the last 60 years according to the Federal Reserve Economic Data and Bureau of Labor Statistics. During that period, inflation has averaged 3.7%, making homeownership a hedge against inflation. Even if a person continues to rent, they will be paying more because rents have increased during the same 60-year period at 3.88% annually.

The average price of a home in America in 1963 was $19,300 and in 2023, 60 years later, the average price of a home was $495,100. Long term, a home is a powerful investment in an individual’s wealth.

For more information, download our information guide Homeownership Today and run a Rent vs. Own for your particular situation.