Well, it's Groundhog Day again and time for the Prognosticator of Prognotiscators to make the 2017 Central Florida Real Estate Market Prediction! 2017 is picking up where 2016 left off. The market here is stable, with a sellers market in the under $200,000 price range. A real lack of inventory in this price range has led to shorter market times and bidding wars in some cases.
New home construction continues to grab a larger percentage of the $250,000-$500,000 price range homes. Incentives offered by builders include paid closing costs, free upgrades and extended 10 year home warranties. Existing home sellers can compete by making sure their home is in good condition, shows well, and has a little deferred maintenance as possible. The big four as far as home inspections and insurance companies are concerned are:
1. Roofs need to have at least five years estimated remaining life.
2. Polybutelene pipes and even some older plumbing can cause problems in getting insurance.
3. Electrical panels must be up to code. Some older systems such as Federal Pacific will raise flags with inspectors and insurance companies.
4. HVAC systems over 12 years old are usually less effective and not as cost efficient. A yearly service record for an older unit is a good idea.
A one year third party home warranty can be a good tool to assure home buyers they will not incur any large, unexpected repairs shortly after closing.
Overall, as the market is now rid of most of the foreclosures and short sales that dominated our area from 2008-2013, a healthy, balanced market has set in that should benefit buyers, sellers and lenders. When listing your home, take the advice of an experienced realtor who knows your area and, most of all, keeps a positive mindset.
