Why Buying Makes More Financial Sense Than Renting in 2023

It’s no secret that the real estate market has shifted in the past year, causing many hopeful first time homebuyers to wonder if they missed their chance or if they should wait for 3% interest rates to return. While you likely will not see those interest rates again, it doesn’t mean your chance to become a homeowner has passed. In fact, there are many reasons to prioritize buying a home in 2023.

If you are not sure yet if it makes more financial sense to rent or buy in 2023, here are 3 things to keep in mind.

1. Buying a home allows you to step away from rising rental costs

The cost of owning a home has gone up in recent years, and if you look at the overall trajectory of home values over the past decades that makes sense. Though there are some dips and the rare market crash, the overall direction of home values is always up.

This is also true of rental costs, which consistently rise with inflation and increasing home values. As long as you are a renter, you will continue to pay more and more for the same property over the years. When you purchase a home, you step out of that cycle and lock in your monthly housing payment for the foreseeable future.

For example, if your rent is currently $1,500, and a mortgage on a comparable home would be $1,800, you may think it is more affordable to continue renting. However, in a few years the rent on that same home is likely to have increased to $2,000 while your mortgage remains the same.

The bottom line is, the earlier you can afford to become a homeowner, the more money you will save over a lifetime of monthly housing expenses.

2. Homeownership is one of the best wealth building tools

One of the reasons homeownership is so valued and promoted among financial experts is because it is such powerful wealth building tool. When you own a home, you are increasing your net worth with each mortgage payment you make. You own an asset that can be leveraged to finance other ventures or be passed on to future generations.

Even if owning a home costs a bit more than renting at the beginning, renting will never provide you the same opportunities and passive financial growth that owning will. And remember, the longer you own a home, the more affordable it becomes.

3. Owning a home protects you against financial factors outside your control, like inflation

Many hopeful first time home buyers are concerned about inflation. Owning a home is one of the best safeguards against inflation. The price you purchase your home for today is essentially frozen in time. Where rental costs will rise with inflation, the price you paid for your home will be set.

In addition to being able to lock in your monthly mortgage payment, inflation will begin to benefit you as a homeowner. As inflation increases, your home’s equity will increase alongside it and open up opportunities to sell for a profit, refinance to lower your monthly payment, or take out a line of credit from the equity to fund home improvement or other projects.

One of the best things you can do when buying your first home is to choose an agent who is knowledgeable and experienced in the area you are considering. Ready to buy in Clermont or anywhere in the Orlando real estate market? Contact me today!

Many Buyers are Searching for Lake Homes Right Now

Just before the pandemic, the big city living right in the center of all of the action was gaining popularity with home buyers. A large number of people wanted to live close or even within walking distance if possible of the office and all of the places they loved to visit on a regular basis.

When the pandemic shut things down for a brief period of time the majority of home buyers shifted their mindset. The big city no longer held the allure it used to. There wasn’t much to do, and what could be done took much more effort and thoughtfulness to stay safely distanced from the higher number of neighbors.

As a result of feeling too cooped up with very little room to distance from everyone around, many homebuyers have begun to flock to less populated areas. Of those less populated areas, the most sought after homes are those that offer a chance to get out of the home more. Recently, reports have shown at the top of the trend of moving away from the city is moving to a lake home.

Here are the Key Reasons Why Buyers are Hoping to Move to the Lake Right Now

A City Home Is No Longer More Convenient

The reasons for moving to the city before the pandemic, like being super close to work and more opportunities to play in the neighborhood you live, are no longer needed perks of everyday living since the pandemic hit. Now that more people are working from their home office and may continue to do so for several months or maybe for forever, people don’t have to worry about how long it takes to get to work. Zillow recently reported results from a survey they conducted showed that of those people currently working from home, 66% would consider moving if their employer told them their job was going to continue remotely after things go back to “normal.” With business slowly opening up and being at limited capacity it is no longer as alluring to be just minutes from your favorite hang-out.

More Space Is Now Desirable

When there were no limitations on where you could go and how often you could go there, people flocked to thriving social scenes in the city. They did not care about having huge spacious homes, because they spent very little time there. A home to a bustling social city dweller was just a comfortable place to lay your head for a few hours, shower, and then leave for work and living amongst the crowds in a rush of activity. Distancing has kept people in their homes for several hours at a time and this is leading people to want a home with more space to spread out, and an outdoor space with things to do.

You Get More For Your Money

While waterfront homes come with a bigger price tag than land locked homes in the same areas, they are still cheaper than high rise condos in the center of the city. The pandemic has shifted many people’s mindsets about the way they choose to spend their money. They are becoming more mindful of truly living within their means or a little below a comfortable budget to ensure they are better prepared for economic emergencies.

More People are Living in Their Lake Houses Instead of Renting Them

People who own lake homes as second properties and rent them out when they are not using them are now staying longer in their lake homes instead of renting them out. This has led those that would like to flee the city and rent a lake home to consider purchasing one. Especially those that have been considering maybe purchasing a lake home for a while so they can enjoy it anytime they please.

There were many reasons to love living on or near the lake before the pandemic and there are many more reasons to love it now. If you are looking for a lake home in Clermont or surrounding areas please contact me any time.

Clermont has several great opportunities to own a Florida lakefront home. Some of Clermont’s most sought after lake neighborhoods include Clermont Heights, Osprey Pointe, Susan’s Landing and any home on Lake Louisa, the largest lake in the Clermont Chain of Lakes. From new construction to estate homes with private lake access there is a lake home in Clermont to suit every water lover’s wants and needs.

If you are looking to buy a lake home in Clermont I would love to help you find just the right one for you. Please contact me at any time.

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Buying a Home with a Sump Pump

Buying a Home with a Sump Pump – Many lake homes have a sump pump, and they can be very useful and great feature. Here are some important things to know about sump pumps.

What is a Sump Pump

A sump pump is most often installed in the basement of a home and its main job is to pump water out of the home and into another area like a storm drain. Most of the time they are located beneath the floor of the basement where flooding and heavy rains are likely to occur.

It is a good idea to be knowledgeable of the type of sump pump a home has and the likelihood of excess water in your home based on its location.

There are Two Types of Sump Pumps

Pedestal Sump Pumps

These are the cheaper of the two sump pump types. Pedestal sump pumps are installed further away from living spaces. Though they cost less to purchase they do create more noise, but also do not require as much time to get the job done and have a longer lifespan.

Submersible Sump Pumps

A submersible sump pump is used when the pump needs to be installed closer to living spaces because it is much quieter. Though they make less noise, they are more expensive and take a little longer to get the job done. These are most commonly found in basements.

Sump Pumps Require Regular Maintenance

To receive the longest life out of your sump pump it will need routine care. With the correct attention and care, pedestal pumps can last 25 years and submersibles can last up to 15 years.

To care for your pump it needs to be cleaned, valves checked, filter checked, and tested. All of this should be done at least annually. Replace any parts that may need it right when you notice it instead of after it is so worn down it causes a problem.

If a Home has a Sump Pump Check it for Water Damage

Homes with sump pumps rarely have a sump pump for no reason. Either it was installed because the home is highly susceptible to water damage or it already had water damage and needed to have one installed. It is a smart idea to check homes with sump pumps for water damage. Sometimes homes come in contact with more water than the sump pump can handle and water damage may not have been noticed or repaired properly. Hiring an expert inspector will help with this.

Look for Structural Damage

Flooding can cause significant damage including severe structural damage. Just because a home has a sump pump, does not mean it is immune to any type of water damage. It is important to check for any areas that may be susceptible to structural damage and make sure the home is in good standing condition so that it will continue to do just that, stand. Again this is where an expert inspector really helps.

Pumps Should Be Tested

Just because a pump is in a home and the home has no current damage, does not mean that the pump is functioning well. It is always best to test if a pump is properly functioning before purchasing the house. You don’t want to rely on something only to find out it isn’t working when it’s too late to prevent damage. Like during a storm.

Battery Backups are a Good Investment

Backup battery systems for sump pumps are a bit of a pricey investment, but they are worth it. Should the electricity in your home go out the battery will kick in and allow the pump to continue operating. This is crucial should the power go out during a storm or as a result of flooding when the pump needs to be working.

Sump Pumps Need Routine Testing

Every once in a while, you should test the sump pump to ensure it is still functioning properly. To test it all you need is a five-gallon bucket of water. Slowly pour the water into the pump until you see it activate and drain the water. Watch it go through the motions to ensure it is doing its job including making sure it is draining where it is supposed to. Stick around to make sure it properly shuts itself off as well. You want to know the pump is working and not get caught with a mess during a storm.

For more information on purchasing a lake home in Claremont or surrounding areas please contact me at any time.

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4 Ways a Home Inspection Could Go

What are my options as a buyer or as a seller when it comes to the inspection report and response?

A home inspection is a vital part of the home buying process but it can also be used by home sellers as a way to entice buyers into making an offer. If a home inspection has already been completed by the seller, it doesn’t necessarily mean the buyer can forgo their own inspection but it does show the buyers that the homeowners are serious about getting the home sold and have probably corrected some or all of the inspection issues before listing.

Of course, buyers should still have their own inspection performed because you just never know if the seller used a legitimate inspection company or if they were above reproach on the repairs. However, it does make for a nice incentive when looking for properties.

A home inspection can be waived completely and there may be situations where this is appropriate but for most transactions the inspection is crucial.

The home inspection should be scheduled and completed when a mutual offer has been accepted. When the buyer and seller come to signed agreements on the purchase price and the terms. The listing is now considered “Subject to Inspection” and depending on where you are in the country this could also be considered “under contract”. At this point, the seller cannot sell the property to anyone else until either the buyer backs out and/or the deal is terminated. The seller is in a legal contract to sell to a willing and able buyer should all the contingencies be satisfied.

Contingencies on the sale could include but may not be limited to:

Home inspection contingency
Financial contingency
Feasibility contingency
Neighborhood contingency
Sale of buyers home contingency

Not every home will have these but most will have financial and inspection contingencies. This means that the buyer must be able to obtain financing for the deal to go through unless they are paying with cash and the inspection must be approved before proceeding. But there are several ways a home inspection can go. Let’s look at the differences.

A home inspection is usually performed by a licensed qualified home inspector within 7 days of an accepted offer. In some areas, the inspection just needs to be scheduled within those 7 days but check with your real estate agent on the details.

The buyer should absolutely accompany the inspector throughout the property asking questions, understanding the construction of the home and learning all they can about this large investment. Home inspectors usually know a little about a lot of things but some can be experts in one or two areas such as roofs, siding, pests, etc… Ask your inspection as many questions as you can to find out the integrity of major items and how much life they may have left such as hot water heaters, furnaces and heat pumps, kitchen appliances, roofs, washer and dryers, and windows.

Once the inspection is completed, which can last anywhere from 1 hour to 4, the home buyer and possibly the agent will receive a report about the inspection. This can be a physical report or an electronic one depending on the inspector. Expect the report within a day or two of the inspection and some may offer the inspection report on the spot.

Go over the report with your real estate agent be sure to ask the inspector and/or your agent if you have any questions or don’t understand something. Remember, this is your home and the more you know and understand about it, the better.

Here are 4 ways the home inspection report could go with different scenarios:

Rejection
Approval
Cash Off
Ask for Repairs

The house is a money pit and should be condemned.

This is a little extreme but sometimes an inspection report will come back showing multiple issues. Even if you assumed the home was a fixer-upper, if the number of issues seems too overwhelming you can back out of the deal right then and there, no questions asked. You don’t even have to give the seller a reason although they would probably want to know if they don’t already. However, you don’t have back out if you feel you want to tackle all the errors and issues. So with this scenario, if you plan on sticking with the house, you can either ask for repairs to be done or money off the purchase of the home. Of course, you can also accept the home as-is and then all the issues become your issues as soon as you close. This situation works best for investors, home flippers, and those that want a project. Most first time homebuyers will likely back away completely and those in the middle may ask for money off.

There are a few major issues and a few cosmetic ones.

“If the report comes back stating the roof needs replacing but overall is well built, the buyer may just ask for the roof to be replaced. Some sellers may request their own ‘roof certification’ where a roofer comes out, inspects the home and give a 5-year stamp on the roof. If the roofer cannot do this or the buyer doesn’t accept this, the seller can either renegotiate a new, lower price for the home to make up for the roof or replace the roof themselves before the transaction closes. Or, the seller may terminate the transaction and wait for a buyer that doesn’t care about the roof, but that’s a stretch.”- Wheat Ridge Real Estate Expert Chuck Gonzalez

There are a few cosmetic issues.

If the flooring is dated, unappealing wall paint or colors, leaky faucets or faulty switches, these are the cosmetic issues that buyers and sellers typically negotiate. One good rule of thumb for buyers is “If you ask for everything, you may get nothing”. This about what could make or break a deal. If outdated flooring is really all that’s keeping you from buying the house is it really worth it? You can always see it from both sides too… is new flooring keeping the seller from getting the best offer? These are decisions that agents and their clients need to decide so that all parties feel like they’ve had a win-win. Another good rule of thumb is to consider if an item is under $100 to fix or change, it’s not worth losing the home.

There’s nothing wrong.

If the inspection report comes back perfectly clean, the buyer could still reject it and terminate the transaction, but this is really only if the buyer had planned on doing that anyway and now needs an excuse (because backing out of a deal without cause can a lawsuit of forfeiture of earnest money deposits). But if the buyer is satisfied with the report and wants to move forward, the report is sent back for mutual signing and agreement that nothing is to be done and the deal moves on.

Money to Buyer – Lower the Price

If the seller doesn’t want to perform any repairs or do anything to the house, which could be from investors or banks or folks that just need to sell the house as-is, the buyer can either requestion money off the purchase price or credit to the buyer at closing. This gets a little trickier and needs to be handled with the escrow company.

The type of credit that a seller can give to a buyer depends on the buyers financing. Their lender may not allow for seller credit and may require the repairs done prior to closing. To get around this, the credit may be in the form of a closing cost credit and there are limits. For an FHA mortgage, the seller can pay up to 6% of the sales price of the closing cost credit for the buyer. On conventional mortgages with a 5% to just under 10% down payment, the seller can credit up to 3% and on a 10% to nearly 25% down payment, the seller can credit up to 6% closing cost credit. The amounts go up depending on the down payment, so the lender will need to be careful not to exceed the actual amount of closing costs.[CondoSales.com]

Lower the price

The buyer and seller may agree to lower the price to cover the repair. For instance, if the roof needs replacing and the seller doesn’t want to do it, they may reduce the purchase price of the home by $10,000 so the buyer can replace the roof at their expense and time after closing. Of course, the buyer will actually have to put out the money to do that unless the lender builds that into the cost of the loan with a rehab loan. If this is the case, the buyer may need more for a down payment and may have higher interest rates.

Home warranty

Another option is a home warranty. This is a great incentive for sellers to offer buyers that costs about $500-$600 and covers just about everything in a home for one year. If something should go wrong in that year, the buyers (now homeowners) pay a minimal deduction and items and appliances are repaired or fixed. So literally if you moved in and a week later the water heater blew, a simple $65 or so would pay to replace and fix the heater and cover any damage. Quite a good deal, if you ask me. Otherwise, the buyer is now out even if the inspection stated the water heater was in good working condition less than a month ago. Read More: Can you buy a home warranty on a condo?

The inspection is really the make it or break it part of a real estate deal. Most homebuyers should already be pre-approved before making an offer but the inspection is really what hangs in the balance between the deal closing or not. It’s sometimes back to the negotiation table after the inspection because each home is different and each buyer and seller is different and may want different things. The key is communication. If all parties stay in the loop and communicate what they want, chances are they will come to an agreement, but again, if not, this is the deal-breaker moment that a buyer could simply walk away.

Talk to your agent about the best way to respond to a home inspection. You may get the home you love with minimal work or you may realize it’s way more work than you want to do.

Additional Resources:

Do new construction homes need an inspection?

What happens if the inspection shows unpermitted work?

Top mistakes buyers make on a home inspection

What will the home inspector actually do?

Inspection Information for Waterfront or Lakefront Homes:

Clermont Realtor AND Property Manager in One

I was fortunate enough to find Beth through social media while I was living in NY. I knew I was moving to Central Florida, but had no idea where exactly I should land with my family. I briefly spoke with Beth and she “got me” right away. She recommended Clermont and I loved everything she showed/told me about it. We moved here sight unseen and she nailed it. We LOVE it here. She went out of her way to drive around the area and take photos to send me so I could get a feel for it and sent me tons of area info in the mail. She helped us get into a rental as we thought that would be the smartest first step and now we are working with her to find a home to buy. Beth is extremely knowledgeable about real estate and the Central Florida area. She is well known and well liked which is a bonus in her field. I highly recommend anyone looking for a realtor in the area she serves to meet with her and put your trust in her” – Zillow review

I love helping people find the right home and just because I love Clermont doesn’t mean that you will love it too. There are a lot of different cities and towns around the Northwest Orlando area including Winter Garden, Minneola, Winter Park, and even places close to Orlando such as Dr. Phillips and Windermere.

The goal is to find the right house for you within your budget. That could be a beautiful lakefront home in Clermont or a townhouse in one of the larger, gated communities closer to Orlando.

Contact for a Consultation

“Beth is a 5 star realtor!! She knows and understands the housing market and her negotiations skills are impeccable !! Beth handles and owns the process from beginning to end and kept us well informed.. She is absolutely the best !!!!! you won’t be disappointed !!” Ruddocks

Understanding the market throughout the Orlando area is key to not overpaying for a home, getting the property you want at your terms, or pricing a home correctly to sell. Not knowing the market could mean losing out on thousands of dollars for both buyer and seller.

As your Realtor®, it is my goal, job, and passion to assist in your real estate needs and guide you to the right and result. Whether that’s finding a beautiful single-family home close to the water, a home with boat docks and access to marinas, or simply a beautiful wooded lot perfect for custom building. Let’s find the right home for you.

“Beth is a friendly and professional realtor. She is an expert in all real state needs. She found two perfect tenants for my house and help me with all the process. I highly recommend her. She always ready to help and give you a wise advice. She is a hard worker. Beth is an expert in all real-estate needs” – Silvana A.

Not only can I buy and sell properties but I manage them as well. If you’re in the market for real estate investment or cash flow rental property, I can point you to the right neighborhoods and communities that gain equity quickly and are continually growing and improving, increasing your bottom line.

I can help you find and purchase the right property for your investment needs and then manage it with aggressive tenant screenings, in-depth care of tenants needs and repairs, and direct deposit and communication between your tenants and you.

When it’s time to buy, sell, or invest in Clermont and surrounding communities give me a call. Because I’ve done this for years, I understand the micro markets of our area and how to negotiate on your behalf. Let me be your guide to your next home purchase or sale. Read More Reviews