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Jim Gilliland

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The Dangers of Overpricing Your Home

by Jim Gilliland

When choosing a real estate agent to sell your home, it’s tempting to go with the one that wants to list it for the highest price. Don’t do it! Experienced Realtors will tell you that listing your home at the right price from the very beginning is crucial to getting it sold the fastest and for the highest price. Research consistently shows that over-pricing your home, and then continually dropping the price while the home sits on the market for days to months leads to the home selling for much lower than it would have had it been priced appropriately for the market to begin with.

There are several factors that explain why that is. Overpricing can scare off good buyers before they even have a chance to see your home. Good agents can tell when a home is overpriced and can steer their clients in another direction. Overpricing a home will also cause the days on the market to just go on and on. Buyers are suspicious of homes that have seemed to sit on the market for too long. Overpricing will also lead to your home not showing up in the searches of qualified buyers. If you price your home at $275,000, but you would be happy to accept $250,000, you have just eliminated your home from any search in the $225-$250k range.

When choosing an agent, make sure that you don’t just go with the one that offers to list your home at the highest price. Make sure you go with one who fully explains how he or she got to their price, and can explain to you exactly what the market will bear. 

Good news for rental property owners!

by Jim Gilliland

Do you have rental property in our area? Or have you thought about buying an investment property to rent out? According to a new report from RealtyTrac, Okaloosa County has the # 5 best rental market IN THE NATION for renting single family homes to millennials. In all of the top 15 counties, the millennial share of the population increased at least 10 percent between 2008 and 2013, and annual wage growth outpaced annual rental rate growth.

 "Rapidly rising home prices and tepid wage growth have dampened single family rental investment returns and growth potential in many markets, but there are still plenty of solid opportunities available for real estate investors willing to cast a wider geographic net," said Daren Blomquist, senior vice president at RealtyTrac. "Rents are rising faster than median home prices in 45 percent of the markets analyzed -- indicating continued strong demand for rentals in those markets -- while annual wage growth is outpacing rent growth in 43 percent of the markets -- indicating room for rising rental returns in those markets.”

 Several members of the Gilliland Team here have rental properties. If this is something you are considering, give us a call, and we can point you in the right direction!

 

Intracoastal or Intercoastal?

by Jim Gilliland

One question comes up around here a lot, especially when we’re describing waterfront property  – Is it Intercoastal or Intracoastal waterway? The correct name is actually IntRAcoastal Waterway.  The Intracoastal Waterway is a network of canals, inlets, bays, and rivers that runs from Norfolk, VA down to the Florida Keys, and along the Gulf of Mexico to Brownsville, TX. The plans for the Intracoastal Waterway go back to 1808, when Treasury Secretary Albert Gallatin proposed a system of canals that would link Boston Harbor to the harbor in Brownsville. Congress rejected that plan, but over the next few decades, the Corp of Engineers began dredging a series of canals along the US Coast.

The Gulf Intracoastal Waterway is 1,100 miles from St. Marks, FL to Brownsville, TX.

 

 

Thinking about buying a vacation rental?

by Jim Gilliland

Hello Internet! We’re going to get the blog rolling again here at RE/MAX Gulf Coast Realty. With a combined 154 years of Real Estate experience, we have lots to say, so let’s jump in!

Today we’re going to talk about vacation rentals. Specifically, things to consider when purchasing a second home that you plan to rent out.  If you are in the market for a vacation home that you expect will pay for itself on the rental market, there are several things that you need to think about. Below are just a few:

Location – The old adage “location, location, location” has stuck around for a reason. You’ll be visiting your vacation property yourself from time to time, so make sure you love the location.

Some communities and properties have restrictions on short term rentals, so make sure to thoroughly check that out. For example, Bella Riva – a beautiful complex on Okaloosa Island – will only allow rentals that are 7 nights with a Saturday to Saturday stay. And did you know that if you own a house on the north side of Santa Rosa Boulevard on the Island, that you can’t rent your property for stays of less than a month? Make sure to do your research on rental restrictions!

Price vs Cash Flow – The sale price is only part of what you’ll need to spend. There will most likely be a monthly HOA fee, utilities, advertising costs, fees to have the property cleaned between renters, added insurance costs…and the list goes on! Make sure you have accounted for everything when you consider the price.

It’s also important to be realistic in your expectations for rental income. Take into account slow seasons and periods of time where your property could sit unoccupied.

Personal Use – How do you intend to use the property? This goes back to what I mentioned about location. Make sure you love the location! Also, a one-bedroom unit might have a great ROI, but if you’re a family of 6, it might not be the best move. Return on your investment is good, but only one aspect of the whole thing. Consider how you intend to use the property yourself.

Just a few thoughts! We’re going to be updating the blog more regularly, so check back with us in a few days!

Should I Buy a Home Now?

by Jim Gilliland

I'm often asked if this is a good time to buy a home. Some clients are concerned that home prices may fall down the road, while others are convinced that home prices will go up.

Home prices are one factor in determining your cost of ownership, but so are interest rates and financing availability. Even though interest rates have fluctuated, they are still near historic lows. Since your monthly mortgage payment is a combination of paying down your principal and paying the interest owed, a one point rise in interest rates could cost tens of thousands of dollars over the life of your mortgage!

While a home is a major investment, it is also the center of your personal life. It's important to live in a home that reflects your taste and values, yet is within your financial "comfort zone." To that end, it may be more important to lock in today's relatively low interest rates while they are still available.

Please give me a call if I can be of any assistance in determining how much home you can afford in today's market.

Displaying blog entries 11-15 of 15

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Jim Gilliland
RE/MAX Gulf Coast Realty
28 Walter Martin Road NE, Suite A
Fort Walton Beach FL 32548
Office: (850)243-2220
After Hours: (850)864-7459
Fax: (850)664-6068