Take Time to Understand Your Insurance Coverage
Owning a home in the Amelia Island and Fernandina Beach area of Florida is a dream for many people. But with that dream comes the responsibility of protecting your investment with the right homeowner's insurance. One of the most important decisions you'll make when choosing a homeowner's insurance policy is whether to choose replacement cost coverage or actual cash value coverage. Here's a closer look at both options so you can decide which one is right for you: Replacement Cost Coverage Replacement cost coverage is the most comprehensive type of homeowner's insurance coverage. It reimburses you for the cost of rebuilding or repairing your home to its pre-loss condition, regardless of its current market value. For example, if your home is worth $700,000 and it burns down, replacement cost coverage would pay for the cost of rebuilding your home to its original condition, even if the cost of construction has increased since you bought your home. This type of coverage is ideal for homeowners who want the most comprehensive protection for their home. It's also a good choice for homeowners who live in areas that are prone to natural disasters, such as here in the Fernandina Beach and Amelia Island, FL area that is at risk of hurricanes and floods. Actual Cash Value Coverage Actual cash value coverage reimburses you for the depreciated value of your home. This means that the reimbursement amount will be reduced to account for the age and wear and tear of your home. For example, if your home is worth $700,000 and it burns down, actual cash value coverage would pay you the depreciated value of your home, which may be less than $700,000. This type of coverage is typically less expensive than replacement cost coverage. However, it doesn't provide as much protection. If your home is old or has a lot of wear and tear, you may not be reimbursed enough to rebuild your home to its pre-loss condition. Which Type of Coverage is Right for You? The best type of homeowner's insurance coverage for you will depend on your individual circumstances. If you want the most comprehensive protection for your home, then replacement cost coverage is the best option. However, if you're looking for a less expensive option, then actual cash value coverage may be a better choice. Here are some factors to consider when making your decision: The age and condition of your home Your budget Your risk tolerance The location of your home If you're not sure which type of coverage is right for you, talk to a trusted insurance broker. They can help you compare different coverage options and find the best plan for your needs. As a top realtor in Amelia Island and the Fernandina Beach, Florida area, I would be happy to connect you with an insurance broker who can help you compare different coverage options and find the best plan for your needs. Contact me today to learn more. ABOUT TOP FERNANDINA BEACH REALTOR COLLEEN GERKEColleen Gerke is a Top Producer Realtor in Fernandina Beach, Amelia Island, Yulee and the surrounding Northeast Florida area. Colleen has a top 5-Star rating on Zillow, Yelp, Realtor.com and Facebook. She strives to be the best real estate agent you’ve ever worked with! Whether you’re looking to sell your house in Fernandina Beach, move to Amelia Island, or add a Florida property to your rental portfolio, you’ll have a stress-free real estate experience when you Close with Colleen.
What is a homebuyer's rebate?
A homebuyer's rebate is a discount on closing costs that is offered by some lenders. This can be a valuable savings for buyers, especially in competitive real estate markets like ours in the Fernandina Beach and Amelia Island, Florida area where closing costs can be high. However, it's important to read the fine print before accepting a homebuyer's rebate, as there may be restrictions on how it can be used. How Do Homebuyer's Rebates Work? When you buy a home, you'll have to pay closing costs. These costs can include things like appraisal fees, title insurance, and recording fees. The amount of closing costs will vary depending on the state you're buying in and the type of loan you're getting. A homebuyer's rebate is a percentage of the closing costs that is paid back to you by the lender. For example, if you get a 2% homebuyer's rebate and your closing costs are $5,000, you'll get a $100 rebate. How to Get a Homebuyer's Rebate Not all lenders offer homebuyer's rebates, so you'll need to ask about them when you're shopping for a loan. Some lenders offer rebates to all borrowers, while others only offer them to borrowers who meet certain criteria, such as having a good credit score or using a certain type of loan. As a top real estate agent in the Fernandina Beach, Florida area, I would be happy to connect you with a lender who offers rebates. Once you've found a lender that offers a homebuyer's rebate, you'll need to ask about the terms and conditions. Some lenders have restrictions on how the rebate can be used. For example, you may have to use the rebate to pay for closing costs, or you may have to use it within a certain time period. The Pros and Cons of Homebuyer's Rebates Homebuyer's rebates can be a great way to save money on closing costs. However, there are a few things to keep in mind before you accept one. Pros: Homebuyer's rebates can save you hundreds or even thousands of dollars on closing costs. They can give you more purchasing power, allowing you to afford a more expensive home. They can help you close on your dream home faster, as you won't have to worry about saving up for closing costs. Cons: Homebuyer's rebates may not be available to all borrowers. They may have restrictions on how they can be used. You may have to pay taxes on the rebate. Overall, homebuyer's rebates can be a great way to save money on closing costs. However, it's important to read the fine print before you accept one, so you know what the terms and conditions are. How to Find a Homebuyer's Rebate If you're interested in finding a homebuyer's rebate, there are a few things you can do. Ask me - your real estate in the Amelia Island and Fernandina Beach, Florida area! I would be happy to connect you a lender that offer rebates. Do an online search. There are a number of websites that list lenders that offer homebuyer's rebates. Contact lenders directly. You can call or email lenders to ask about their rebate programs. Conclusion Homebuyer's rebates can be a great way to save money on closing costs. However, it's important to do your research before you accept one, so you know what the terms and conditions are. By following the tips in this blog post, you can find a homebuyer's rebate that will save you money and help you buy your dream home. ABOUT TOP FERNANDINA BEACH REALTOR COLLEEN GERKEColleen Gerke is a Top Producer Realtor in Fernandina Beach, Amelia Island, Yulee and the surrounding Northeast Florida area. Colleen has a top 5-Star rating on Zillow, Yelp, Realtor.com and Facebook. She strives to be the best real estate agent you’ve ever worked with! Whether you’re looking to sell your house in Fernandina Beach, move to Amelia Island, or add a Florida property to your rental portfolio, you’ll have a stress-free real estate experience when you Close with Colleen.
National Real Estate Update for 2023
There’s an old adage in real estate: location, location, location. But ever since the Federal Reserve began its series of inflation-fighting interest rate hikes last year, a new mantra has emerged: mortgage rates, mortgage rates, mortgage rates. Higher rates had the immediate impact of dampening homebuyer affordability and demand, including here in our Fernandina Beach, Amelia Island, and surrounding Nassau County, Florida area. But this year, we’re seeing further repercussions. While analysts expected listing inventory to swell as sales declined, instead, homeowners have been pushing off plans to sell because they feel beholden to their existing, lower mortgage rates. So what impact is this reduced demand and low supply environment having on home values? And what can we expect from the real estate market in the coming months and years? Here are several key indicators that help to paint a picture of the current market and where it’s likely headed. HOME SALES ARE EXPECTED TO PICK UP BY EARLY NEXT YEAR The weather isn’t the only thing that heats up in the spring and summer. Nationally, it tends to be the busiest time in real estate. But this year, the peak season got off to a slow start, with sales declines in both March and April.1,2 Existing home sales in April were down 3.4% from the previous month—and 23.2% from a year earlier.2 What’s causing this market slowdown? Industry experts attribute it to several factors, including near-record home prices, high mortgage rates, and low inventory. According to National Association of Realtors (NAR) Chief Economist Lawrence Yun, “Home sales are trying to recover and are highly sensitive to changes in mortgage rates. Yet, at the same time, multiple offers on starter homes are quite common, implying more supply is needed to fully satisfy demand. It’s a unique housing market.”1 However, some industry experts believe the market is poised for a comeback. Forecasters at the Mortgage Bankers Association (MBA) predict that home sales will continue to fall through Q3 before rising in Q4 and throughout next year.3 Analysts at Fannie Mae expect the recovery to take a bit longer, picking up in early 2024. Meanwhile, home builder confidence is already up, as purchases of new single-family homes surged in March and April to a 13-month high.5 Builder incentives are helping to boost sales: According to the National Association of Home Builders, in May, 54% reported using them to win over budget-conscious buyers.6 What does it mean for you? A slower pace of sales has given buyers some breathing room. If you hated the frenzy of the pandemic-era real estate market, now might be a better time for you to shop for a home. As a top realtor in the Fernandina Beach, Amelia Island and surrouning Nassau County, Florida area, I can help you evaluate your options and make an informed purchase. If you plan to sell your home, prepare yourself for less foot traffic and a longer sales timeline than you may have found a year ago. It will also be crucial to enlist the help of a skilled real estate agent like myself who knows how to draw in buyers. Get a copy of my FREE home sellers guide now! PROPERTY VALUES REMAIN RELATIVELY STABLE Some good news for buyers: While home builder sales climbed in April, the median new-house price fell to $420,800, an 8.2% decrease from a year ago.5 Meanwhile, the median existing-home price dropped to $388,800, down 1.7% year-over-year. Notably, existing-home prices rose in parts of the country but fell in the South and West.2 “Roughly half of the country is experiencing price gains,” explains Yun. “Multiple-offer situations have returned in the spring buying season following the calmer winter market. Distressed and forced property sales are virtually nonexistent.”2 The average national home price remains about 40% higher than it was in early 2020, according to the S&P CoreLogic Case-Shiller index.7 A tight housing supply has helped to buoy prices amidst a slowdown in sales. “While it varies from region to region, home prices at the national level may fall 1% or 1.5% by the end of the year, so not much,” Doug Duncan, senior vice president and chief economist at Fannie Mae, told Yahoo Finance in April.8 Record levels of home equity will help to stabilize the sector and prevent a wave of foreclosures, even as prices moderate, according to Mark Zandi, chief economist at Moody’s Analytics.9 “But for those who have owned a home for more than a year or two, their home will remain a rock-solid investment. And once affordability is restored, the next generation of households can become homeowners. Getting there is critical to the financial well-being of those households, their communities, and the broader economy,” writes Zandi in The Washington Post.9 What does it mean for you? Prices have softened in certain market segments—and motivated sellers are out there and willing to make deals. As a top realtor in the local area, I can help you find your next home in the Yulee, Fernandina Beach, Amelia Island and surrounding Northeast Florida area, and will also help you negotiate a great price. If you’re a homeowner, the surge in home values has slowed, but you’re likely still sitting on a nice pile of equity. In April 2023, the average sale price of a single family home in the Amelia Island, Fernandina Beach and surrounding Nassau County, Florida area is $548,467. Get a FREE instant valuation of your home here. Even if you're not looking to sell your home right know, knowing you're home's value can help you with financial planning, updating insurance coverage, as well as contenplating potential housing moves. LISTING INVENTORY IS LOW, BUT NEW CONSTRUCTION IS ON THE RISE Unsold existing home inventory rose 7.2% from March to April, according to NAR. At the current level of demand, this equates to 2.9 months of supply, which is still well below the 5 to 6 months of inventory required for a “balanced” market.2 Inventory remains tight despite the market slowdown because many would-be sellers are reluctant to give up their lower mortgage rates. “Affordability is not only an issue for first-time homebuyers, but also for many repeat buyers who still need to take on a mortgage,” explains Danielle Hale, chief economist for Realtor.com.10 In a recent survey by the home listing site, 82% of respondents who are planning to both buy and sell a home said they feel “locked in” by their low rate.11 In some areas, new home construction is helping to fill the supply gap. “Currently, one-third of housing inventory is new construction, compared to historical norms of a little more than 10%,” according to National Association of Home Builders Chief Economist Robert Dietz.12 And more new homes are in the pipeline, after a builder slowdown last year. Single-family housing starts rose 1.6% from March to April (seasonally adjusted) and new construction permits hit a seven-month high.13 What does it mean for you? Inventory remains tight, but less competition means more choice and negotiating power for buyers. If you’ve had trouble finding a home in the past, it may be time to take another look. I am happy to help you find a new or exsiting home in the Amelia Island, Fernandina Beach, Yulee and surrounding Nassau County area. Looking to relocate to the Northeast Florida area, upgrade your current Fernandina Beach home or add an Amelia Island property to your rental portfolio? Start your seach for a Northeast Florida home here. Sellers are enjoying reduced competition right now, as well. However, the longer you wait to list, the more competition you’re likely to face. And if you feel locked in by your current, lower mortgage rate, consider this: If you roll your equity gains into a down payment on your next home, you could possibly lower your monthly payment. Curious how much equity you're sitting on? Get a FREE instant valuation of your home here. Then, reach out to me to discuss your options. MORTGAGE RATES MAY FINALLY COME DOWN According to Freddie Mac, the average 30-year fixed-rate mortgage hit a peak of 7.08% in the fourth quarter of 2022, and since then it’s primarily floated between 6 and 7%.14 However, there are signs that rates could trend lower later this year. “Calmer inflation means lower mortgage rates, eventually,” Yun predicted in a recent statement. “Mortgage rates slipping down to under 6% looks very likely toward the year’s end.”15 Other leading economists agree. In its May forecast, Fannie Mae speculates that 30-year fixed mortgage rates will continue to decline, averaging 6.0% in Q4 2023 and 5.4% by Q4 2024.4 Meanwhile, the MBA predicts rates will fall even faster, averaging 5.6% by Q4 2023 and 4.8% by Q4 2024.3 On May 3, the Federal Reserve raised its benchmark borrowing rate by another quarter point—its 10th consecutive increase since March 2022. However, in its corresponding statement, the Fed omitted language from its previous release about “additional policy firming,” leaving many analysts to speculate that the rate hikes may be over.16 Although mortgage rates aren’t directly tied to the federal funds rate, a decision by the Fed to pause rate increases could have a positive effect. In the meantime, buyers should shop around multiple lenders to find the best rate—and buckle up for what could be an exciting ride. What does it mean for you? Mortgage rates may finally trend down, which would be great news for buyers. But, a decrease in rates could correspond with an increase in competition and prices. If you start searching now, you’ll be prepared to make an offer when the time is right. Start your home search here. As a Top Producer Realtor in the Amelia Island, Fernandina Beach, Yulee and Nassau County, Florida area, I can help you negotiate a great deal on your home and potential seller incentives. If you’re planning to sell your home, this is good news for you, too. But, there are several factors to consider when determining the right time to list your home. Contact me today for a free consultation so I can help you chart the best course for selling your home for top dollar, and making it a stress-free experience. TOP PRODUCER FERNANDINA BEACH REALTOR COLLEEN GERKE IS HERE TO GUIDE YOU While national real estate forecasts can provide a “big picture” outlook, real estate is local. And a real estate expert in the local Amelia Island, Fernandina Beach and surrounding Northeast Florida area, I can guide you through the ins and outs of our real estate market and the issues most likely to impact sales and drive home values in your particular Northeast Florida neighborhood. If you’re considering buying or selling a home, contact me now to schedule a free real estate consultation. I’ll work with you to develop an action plan to meet your real estate goals. ABOUT TOP FERNANDINA BEACH REALTOR COLLEEN GERKEColleen Gerke is a Top Producer Realtor in Fernandina Beach, Amelia Island, Yulee and the surrounding Northeast Florida area. Colleen has a top 5-Star rating on Zillow, Yelp, Realtor.com and Facebook. She strives to be the best real estate agent you’ve ever worked with! Whether you’re looking to sell your house in Fernandina Beach, move to Amelia Island, or add a Florida property to your rental portfolio, you’ll have a stress-free real estate experience when you Close with Colleen. The above references an opinion and is for informational purposes only. It is not intended to be financial, legal, or tax advice. Consult the appropriate professionals for advice regarding your individual needs. Sources: National Association of Realtors –https://www.nar.realtor/newsroom/existing-home-sales-slid-2-4-in-march National Association of Realtors –https://www.nar.realtor/newsroom/existing-home-sales-faded-3-4-in-april Mortgage Bankers Association –https://www.mba.org/docs/default-source/research-and-forecasts/forecasts/2023/mortgage-finance-forecast-may-2023.pdf?sfvrsn=4bf1d1a7_1 Fannie Mae –https://www.fanniemae.com/media/47006/display U.S. Census Bureau –https://www.census.gov/construction/nrs/current/index.html National Association of Home Builders –https://www.nahb.org/news-and-economics/press-releases/2023/05/lack-of-existing-inventory–boosts-builder-confidence-to-key-marker New York Times –https://www.nytimes.com/2023/04/29/business/spring-housing-market.html? Yahoo Finance –https://finance.yahoo.com/news/mortgage-rates-increase-after-weeks-of-declines-160015631.html The Washington Post –https://www.washingtonpost.com/business/2023/04/22/housing-prices-put-some-out-of-the-market/ CNBC –https://www.cnbc.com/2023/04/20/home-sales-fell-in-march-amid-volatility-in-mortgage-rates.html Realtor.com –https://www.realtor.com/research/2023-q1-sellers-survey-btts/ National Association of Home Builders –https://www.nahb.org/news-and-economics/press-releases/2023/04/lack-of-existing-inventory-continues-to-support-builder-sentiment United State Census Bureau –https://www.census.gov/construction/nrc/pdf/newresconst.pdf Freddie Mac –https://www.freddiemac.com/pmms National Association of Realtors –https://www.nar.realtor/blogs/economists-outlook/instant-reaction-inflation-april-12-2023 CNBC –https://www.cnbc.com/2023/05/03/fed-rate-decision-may-2023-.html
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