How to find and buy a house in the Ocala Marion county Florida area including 55+ retirement homes, golf course homes, short sales and foreclosures.

Utility Bills

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I know that in some states up north it is common to see the oil bill to get an idea of heating costs. Here in Ocala there are no real heating costs. Our big expense is running the AC 24/7 from May through October. I don’t think much of looking at electric bills because different people have different comfort levels. I had a guy call me up to list his uncle’s home that he had just inherited. We’re talking and he says that his uncle won an award from the Ocala electric company for low energy use. I said maybe we should put that in the listing comments. Then he told me that his uncle was 80, lived alone and sat in front of a fan when it was 90 outside until he couldn’t take it anymore and turned on the AC. Different people have different comfort levels.

The real estate market in Ocala is changing

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Last week was a crazy week for me. First it was the busiest I’ve been since I started real estate here in Ocala in 2006. I was trying to work with 3 buyers at the same time. Secondly I encountered my first multiple offer situation. Which my buyer won by the way. Third when I went to make appointments to view homes 3 had offers that were so new that the listing agent hadn’t had time to change the listing status to pending. I almost never find a home that I want to show already has an offer let alone 3 ! If you’re still waiting for the market to hit bottom you missed it. The market is starting to go up.

Houses you can’t buy cheap enough

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I work almost exclusively as a buyers agent so I look at a lot of homes. There are times I just walk away shaking my head thinking you can’t buy this house cheap enough. No house is perfect and certainly not the less expensive ones but I sometimes see houses that need a roof, AC, new flooring and the kitchen and baths are outdated as well. One or two updates are to be expected but not all of them ! You often see these homes in 55+ communities where someone buys a home and lives in it for 20 years without ever doing a thing to it. I don’t think much of foreclosures either. Foreclosures come with a Special Warranty Deed which is a limited warranty. I’ve asked people who work at title offices if they would buy a house with a special warranty deed and every single one has said no so far. The moral of this story is that houses are usually cheap for a reason and some you can’t buy cheap enough..

Florida home owners insurance companies rated by size

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Is bigger better when securing property insurance?

 TALLAHASSEE, Fla. – Jan. 9, 2014 – Florida-owned Citizens Property Insurance retained its lead as the state’s largest residential property insurer in the latest “top 20” numbers released by the Florida Department of Insurance Regulation.

Top 20 personal residential writers in Florida as of Dec. 31, 2012

1. Citizens Property: 1,268,071 policies
2. Universal Property & Casualty: 542,882 policies
3. State Farm Florida: 387,970 policies
4. Security First: 177,589 policies
5. St. Johns Insurance: 175,535 policies
6. Homeowners Choice: 152,446 policies
7. American Integrity: 150,189 policies
8. Florida Peninsula: 139,721 policies
9. USAA: 135,964 policies
10. United Property & Casualty: 117,233 policies
11. Tower Hill Prime: 113,624 policies
12. Castle Key Indemnity (Allstate): 113,344 policies
13. Castle Key Insurance (Allstate): 109,156 policies
14. American Bankers: 104,489 policies
15. ASI Assurance: 101,480 policies
16. Florida Family: 96,190 policies
17. ASI Preferred: 90,340 policies
18. Tower Hill Signature: 77,533 policies
19. Southern Fidelity: 75,124 policies
20. Ark Royal: 74,276 policies

© 2014 Florida Realtors®

Ocala Florida sink holes

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Sinkholes: An overview from Fla. DEP

TALLAHASSEE, Fla. – Aug. 16, 2013 – Another Florida sinkhole made national headlines when a resort near Disney World broke apart. Because the phenomenon scares most homeowners, the Florida Department of Environmental Protection’s Florida Geological Survey compiled the following information. It provides a single point source for general knowledge about the nature of sinkholes in Florida, along with information on what should be done if a sinkhole happens nearby.

Facts about sinkholes in Florida

• The entire state sits on top of several thousand feet of limestone, which can form with natural void spaces called porosity. In limestone where the void spaces are connected, the rock is permeable. In most ways, this is positive: Porous and permeable limestone makes great aquifers and provides millions of gallons of fresh drinking water for residents and agriculture. However, acidic groundwater can change the limestone, leading to sinkholes.

• Sinkholes form from the collapse of surface sediments into underground voids. In Florida one may see solution sinkholes, cover-subsidence sinkholes or cover-collapse sinkholes. The first two types will show very little topographical disturbance to the naked eye, while the third is the type that shows an abrupt change in topography and the one most people consider when they hear the word “sinkhole.”

Questions about sinkholes

My yard is settling … Do I have a sinkhole?
Maybe. But a number of other factors can cause holes, depressions or subsidence of the ground surface. Expansive clay layers in the earth may shrink upon drying, buried organic material, poorly-compacted soil after excavation work, buried trash or logs and broken pipes all may cause depressions to form at the ground surface. These settling events, when not verified as true sinkholes by professionals, are collectively called “subsidence incidents.”

If the settling affects a dwelling, further testing by a licensed engineer with a licensed geologist on staff or a licensed geology firm may be in order. Property insurance may pay for testing, but in many cases insurance may not cover damage from settling due to causes other than sinkholes.

A sinkhole opened in my neighborhood … should I be concerned?
Although sinkholes in Florida sometimes occur in sets, most are isolated events. The bedrock underlying the state is honeycombed with cavities of varying size, most of which will not collapse in our lifetimes. A quick inspection of your property for any sinking or soft areas might be prudent. Unless the sinkhole is very large and extends to your property, there’s likely to be little reason for concern.

Should a sinkhole open in an area near you, the hole should be immediately cordoned off and clearly marked to protect traffic. Contact local law enforcement to report the hazard and call your city or county road department to initiate repair work. If the road is private, repair of the hole is usually the responsibility of the landowner or property owners’ association.

Is there a safe area of Florida with no chance of sinkholes?
Technically, no. Since carbonate rocks underlie the entire state, sinkholes could theoretically form anywhere. However, there are definite regions where sinkhole risk is considerably higher. In general, areas of the state where limestone is close to surface, or areas with deeper limestone but with certain types of water table elevation or characteristics have increased sinkhole activity.

More information about Florida sinkholes should be developed over the next three years. The Department announced recently that the Florida Geological Survey, in conjunction with the Florida Division of Emergency Management, has received a $1.1 million grant from the Federal Emergency Management Agency (FEMA) to address sinkhole vulnerability.

© 2013 Florida Realtors®

Ocala Florida home buying advice……..heat pumps

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Most Ocala area homes are cooled and heated by a heat pump. Although a heat pump looks like central AC unlike an air conditioner it heats as well as cools. You can only get away using a heat pump in very mild climates like here in Ocala where we get very few winter nights below freezing. The winter here in Ocala is really only about 6 to 8 weeks long.

There is natural gas for heating in some areas. Generally it doesn’t pay to lay gas pipes in areas without high heating costs. You do find gas in some areas of the city of Ocala and in a few retirement communities where there are a lot of homes closer together. People who are looking for gas are usually looking for cooking rather than heating. Some people use propane for cooking but it is expensive.

Heating is not the issue or expense here in Ocala. The expense is air conditioning which is also supplied by the heat pump. You will need AC from late May until late October 24/7. From Late October until around Christmas and from mid March until May you might not need heat or AC.

Someone said to me just recently that energy efficiency isn’t as important in Florida as it is up north. The rational was that even if the outside temps are in the 90’s you will only be trying to cool the inside down to the high 70’s. A difference of less than 20 degrees as opposed to trying to heat a house to 70 when the outside temps are in the 20’s a difference of 50 degrees. His point being that expensive windows and insulation doesn’t have the pay back it does in more extreme climates.

 

 

Banked-owned sales no longer a bargain

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Banked-owned sales no longer a bargain

SEATTLE – Nov. 9, 2012 – While “foreclosure” remains a buzzword for bargain seekers, a study finds that the actual discount off a “normal” price is far less than it used to be.

According to a study by Zillow, the national average discount of a real estate owned (REO) property compared to a non-REO was only 7.7 percent in September – a sizable change from the 23.7 percent average discount that peaked nationally in August 2009 and less than the average 9.1 percent discount one year earlier.

In some areas of Florida, REOs aren’t a bargain at all. Zillow included three Florida metro areas in its analysis and claims an average REO savings of only 2.9 percent in the Miami-Fort Lauderdale market – a significant drop from the peak of 22.7 percent in August 2008 and a notable decline year-to-year; in September 2011, a South Florida REO sold for 6.8 percent less.

In Tampa, a REO in September 2012 sold for 9 percent less than a non-REO sale, down slightly from the 9.6 percent discount one year earlier, but significantly lower than the peak 29.1 percent discount recorded in November 2008.

In Orlando, the REO discount of 4.6 percent rose slightly year-to-year; in September 2011, it was 2 percent. However, both numbers are down from the peak 24.4 percent discount for a REO recorded in January 2010.

In two cities – Phoenix and Las Vegas – REOs no longer come with a discount, with sale prices roughly equal to other home sales.

“The smallest foreclosure discount is found in places where competition for homes” is high, says Zillow Chief Economist Dr. Stan Humphries. “People are willing to pay the same amount for a foreclosure re-sale that they would for a non-distressed home simply to take advantage of historic affordability.”

Year-over-year foreclosure discounts fell in roughly three-quarters (76.9 percent) of metro areas analyzed, and all metros are down from their peak. Nationwide, foreclosure discounts reached their height in 2008 and 2009, and in some areas peaked at more than 30 percent.

© 2012 Florida Realtors®

I’ve thought for a long time that people looking at foreclosures too easily over look condition issues and the fact that foreclosures come with a Special Warranty Deed. Prices of traditional sales have come down a lot and in many cases aren’t that much more than a foreclosure.

Home Inspections

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The purpose of a home inspection is to find a problem so large and costly the buyer might not want to buy the house. Or in some cases so many problems that add up to so much money that the buyer might want to back out of the deal. Home inspections aren’t intended to create a laundry list of repairs to make a home like new again.

One problem I encounter is that home inspectors as a courtesy provide maintenance suggestions in addition to needed repairs. The difference in repairs and cosmetic items is defined in the Florida real estate sales contracts but that doesn’t seem to help with the confusion.

The way that repairs are defined in the Florida RE contract can cause problems. For example a 20 years old roof that doesn’t leak but is at the absolute end of it’s life doesn’t need to be replaced. The same with termites. A seller can make repairs up to 1 1/2% of the purchase price. You might just want to walk away but the contract locks you in.

In certain circumstances like the above examples it’s better to use an AS IS contract that let’s you out of the deal for any reason regarding the inspection or you can use a right to inspect right to cancel addendum.

Escrow Deposits how much is enough

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When you write an offer on a house you’re expected to make a good faith deposit. That deposit is held in escrow by the title company and can be contingent on things like financing or a home inspection. I usually tell me buyers around $1,000.00 and it’s surprising how many sellers will accept that amount. However from a sellers point of view you have to ask yourself if you wanted to get out of a contract would you walk away from $1,000.00? A lot of people might if they had a good enough reason. But would you walk away from $5,000.00? Probably not. $10,000.00? Pretty much definitely not. A lot of my buyers are also sellers somewhere else. You have to look at things from both points of view depending on which side you are on at the time.

Newer Ocala area homes

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I constantly get buyers looking for newer homes. The market crashed here in 2007. This is the Great Recession. There has been very little building here since the crash. Why you ask? Resales are priced below what it costs to build new. So far below that builders can’t compete. Land has gone down in price but no new large scale planned communities have been started since 07. Building materials aren’t much cheaper. Most sub contractors have gone bankrupt or cut back to much smaller companies.  A couple of retirement communities that were started before 07 are building but not much else. New home building won’t get going again until prices go up. It’s just a matter of economics.