How Are Solar Panels Considered in The Value Of A Home

How Solar Panels Affect A Homes Value Good morning, my name is Brenden Rendo with The Homes In Orlando Team at NextHome Neighborhood Realty and this is my associate ,buddy, Joseph Dionne of Appi Home Loans

Welcome, Brenden, What's up? Ready for a new one this morning, this is gonna be interesting one, so we are. I had to do that one, I worked on it all week, how to come out, okay, okay, all right, I like it alright, stepping it up. So this is the Orlando Real Estate Buzz what we do is we try and we come to you on a weekly basis to discuss some of the issues out there with the real estate market. the one that comes up today is solar plants and the reason why I picked this one is always at a appraisal meeting and it just was doing a conversation with the appraiser and I had asked him because it's come up for me several times, especially recently showing a client down in Davenport there were several houses with solar panels on and I needed to know how do I count those in the value of a house. 

Yeah, and he goes, now it's easy, I'm like it is because yeah, in December, Fannie Mae came out with guidelines for solar panels and you know it's it's the first time they've actually kind of put something together and it was kind of interesting because it puts a lot of responsibility on you, Joseph now and let's go, we can take a look at that real quick, let me share, it's gonna pop up. But yeah, there it is. Okay, so this is a guideline that they've put out as of December 15 of this year. 

Okay and basically what is stating is now you see down here lenders are responsible for determining the ownership and any financing structure of the subject properties, solar panels in order to properly underwrite the loan and maintain first lien position. Yeah that's I think that's the biggest key and this is like Fannie Mae put into writing because it became a bit bigger piece but a lot of investors and a lot of lenders had already kind of taken very similar steps but the reality of this is it does fall on the lender and this is the hard part is this is this is crucial because what what what what you heard was it's easy, well now it's the lender's responsibility but but you know like typically the lender doesn't find out until what somebody tells us that there solar if we want a smooth transaction you want to create a good environment that's going to actually create a, you know to make sure everything seamless, we really need to know going into it that hey there's solar panels and why why is that? It's because of debt to income, yep, yep and they've also put out some guidelines now that hey if it's financed and collateralized that you have to calculate it in the debt ratio right here include the debt obligation in the D. T. I. Calculation. 

Yeah and and that's you know just you know what we talked about is that debt to income ratio, you know I'd love to sit there and say like how many how many clients are you like Hey like when I can buy a house for 300,000 is the most buying power that I have. How many are coming back saying you know what, I'm probably gonna buy a house for 200 because you know they're not. Yeah because now also and I've got I've got solar panels on it and I've got a $250 a month payment. Some of the prices on these solar panels are amazing. I've got a sample contract in here because I was looking at a house for a client down in Davenport's mutual client of ours and she liked the house but I had Copy of the of the Lease Agreement, $50,000 cost to install The Solar System Total Payout 71,000. After the 1st 12 months the payment went up to $252. And you know so all of a sudden it's like that's a car payment that's more yeah you know a low car payment but it's a car payment and again we run into the same issues we've been running into with a lot of people is all of a sudden the debt to income just goes away. 

Yeah and you know the complexity of this as well is what a lot of people don't realize like we hit the term. So let's say on the lender's side and finance excited as we see that there is a, a, you know, there's a solar system, solar panel system on the house and then we find out that the seller owns it, but they financed it right and they're not going to pay it off or they're leasing it and its finance. So what ends up happening is now it goes to, it becomes the like, hey, if the buyer wants to close on the house, they now have to incure this, this monthly obligation. So that impacts debt to income ratio. But the other piece that a lot of people don't think about is that client now has to apply with that solar panel company that has the financing or has the installment loan and get approved with them. And for us to close on our side, we've got to see that they are approved and then they have the terms in place. So effectively, you know, they're not going to, you know, make a payment or anything before they close. But effectively that buyer is saying, hey, I'm, I'm agreeing to terms for this loan that I don't for a solar panel that on a house that I don't even own yet, I don't even own yet. And what do we always tell our clients not to do, what's the number one rule you tell all your clients not to do add more debt, more debt. Make apply for any type of credit whatsoever. You know, that's we drill it, you know, don't go go to Kanes and buy furniture the day before because they're gonna pull us, they're gonna pull enough soft credit. Make sure that you haven't done anything stupid before before the closing and now we've got to do now. Probably have to go to the underwriter and write a letter of explanation. 

Well I, I applied for the solar system because solar systems on the house and I have to, you know, if I buy the house, I have to buy the solar system. Well most underwriters are gonna require, if we go into it, they're going to require, we're gonna need to see the new lease agreement, the climate plan, we're going to see all that. So there's not going to necessarily be anything kind of that added work is going to be on them, but it is added work and it takes time with one of the, with a past client of mine recently that we had, we went into it, we found out that the client had solar panels and thank goodness we did this at the start because I told the bar, I was like, hey you have to, you have to make this application now. And he's like, well we haven't even done the inspections. I said, we don't know how quickly they're going to move. I was, I was my only condition. 

I told him the day I got the contract. My only condition 3.5 weeks later on the file was the documentation for this new loan. And he was waiting for a response that the company that had the financing would sign over the, the loan to him and it eventually happened. But we were all the way up down to the very last minute to be within the contract terms. And the irony of it was, this was one of those you know, big bank corporations night that was probably the property we won't go into names. And they were like, hey, if you need more time, that's not our fault. Like you're gonna, you're gonna start paying per diem if you need more time. And that's what I was, I was laughing. I was like, imagine if he had if he had waited a week to do that application, he would have already, he would have had a delay and it would have cost them money and per diems that this seller was charging this corporate seller was charging for the house he was buying and he couldn't have avoided it. 

Well, it's, it's an interesting, let me see if, yeah, here's the wanted to bring up. You mentioned that the lease part of the lease agreements. What's something that again, we're taught as real estate agents as and as mortgage lenders about personal property homes. If it is personal property and not considered attached to the home, it has no value. This is a this is an actual lease agreement that I got for the for our client to see exactly what the terms were of of that solar panel. And right here it states the solar panels are personal property. You and we both expressly intend that no portion of the collateralized goods will constitute a fixture attached to any real property and that the collateral collateralized goods will be removable personal property. You've just wiped out any chance of having associated with solar panels because again, an appraiser is gonna look at it that says right here, it's personal property.

If it's personal property, I'm giving no value, I'm giving no value. And when we go back to our guidelines, that's really the nut of the whole thing was that if it's leased financed or they've done what they call a power purchase agreement which is something I learned that's new. the appraiser cannot give any value to the solar panel. The only time you can do it is when it's owned and when it's and fully owned, fully owned, fully owned, exactly no kind no other kind of lien attached to it. And then you know the appraisal was talking because then it's easy because I've got two houses that are exactly the same one sold for $200k sold for $210,000 guess what, I can give $10,000 value to the to the solar system goes, but otherwise now I can, I can give what and it's an important word its consideration. He's not allowed to give consideration because there's a value in the solar system. Yeah, and a lot of people see the value in the solar system, but as an appraiser, he cannot consider it in the value of the home. 

And that's a that's that's that's that's a very powerful word. And that's that that's that's something that a lot of people and a lot of agents and a lot of professional, a lot of buyers and sellers have to understand is that, is that depending on the property? Because yeah, like I think people look at and they go, well that system cost $50,000 and you know, maybe it's not worth $50,000 but they go, well maybe it's worth 30 like, you know, but kind of like putting in a pool, hey, I just spent, you know, I met with someone who's looking to list and they're like, well we have a contract for $90,000 pool, I want, it fell over costs, but to, they're like, what kind of value you think we'll get to that? And I said quite honestly, $20, $30,000 dollars you know, end of the day, You know, because you're just like a house, you know, when you, when you over build a house, you know for neighborhood, $90,000 house or $90,000 pool, this neighborhood is overbearing. 

You know, so I think that's, I think that's our important thing that we've got to pull away today. Well let me hit one other thing because this is, this is I had my wife, me and I sat through, I think two or three solar panel presentations, a couple of keys that I took away from that, that in fact one, they always tell you it won't show up in your credit report okay. Because they don't, they don't report it. Things only show up in your report of the company and the company does it okay. And always you want to have fun. I always ask them what happens if I move, they never have an answer for it. And now we know why now we know why? Because they're not considering it, you know, many of them in their lease agreements are considering it personal property. Yeah. 

So by considering personal property, they're basically saying like, hey, like this is your problem to rectafy I, no matter what, you know, and then basically kind of when you read through it says, hey, you know, yeah, we can take them. Yeah. And the, you see and they, but they don't tell you, they file a UCC filing either. They don't tell you that because the UCC filing allows him to go back and file a lien against the property. So you've got to have all your ducks in a row if you if you own a home with solar panels and you are thinking of selling, this is another task for you. You've got to get all your stuff pulled, you know, it's not showing up on your credit report, make sure you've got to give your lease okay.

Finding UCC filings is not the easiest thing in the world either. It's kind of a pain in the butt. Well just like one quick cap that I want to talk about as well as you know we were in central Florida so we're in Florida and Florida had, you know there was a number of different programs, someone that stands out to mine is like a PACE, the property assessed clean energy program. It was actually a incentivized program in Florida that did it. But that's actually one of the few that there's certain loan times for instance F. H A. If there is a PACE like program was used to get solar panels on your home, you can't get F. H. A financing. And the reason being is there's a number of different things but one of the things that kind of stuck out to me is the Pace loans don't allow subordination. Gotcha. And that was the big thing with the Fannie Mae guidelines is that Fannie Mae has to be in first position. Yeah, no no lender is going to take second like nobody's gonna lend hundreds like to securitize against the property and be 80 90 100 you know, 95% of that value and sit there and say, you know, we'll take second consideration, yep. So there's a lot more, you know, in summary, there's a lot more to the solar panels than just, hey, yeah, throw them up there. Yeah. You know, I was paying $200 a month, you know, electric bill. Now, I'm paying $200 a month for my, for my solar panels and after 20 years of payments, I won't have to make any more. Let's see how long those last, let's see how long those last. And it's interesting to see how many people put them on two years ago, three years ago and now selling their house, you know, so it's, it's, it's something, you know, it's, it's going to be added in. This is where, you know, having good communication between your realtor and your lender because they're gonna, you know, we're gonna have to dig together to go find this information. Yeah. 

And I think you mentioned too, like I, and like you were out in Davenport area, I'm noticing on my end that there's a lot of new build communities that they're now utilizing this as like a strategy to be like, hey, not only building our house with us, but we've partnered with this solar company and they'll put it on and you can finance it all. Like we've got all this, like this is all now starting to become a bigger part of the puzzle piece of, you know, what are those loans, are they creating a second loan is actually just part of the purchase. So those details are going to pop up more and more because builders are using it as incentives to get people to buy in their communities now. Sure. So another fun thing, you know, for us to us to deal with in, in the real estate industry. if anyone has any questions on it, always feel free to give joe a call or I call or reach out to us. again, just remember that these days if according to Fannie Mae guidelines, if any, if the, if the solar panels are not owned outright and there is no type and they're not attached to any type of lien. That is the only way an appraiser can give value if they are lease and you've got to transfer the lease, it's going to count against the buyers DTI and can cause the, the deal to go south because all of a sudden you're there outside the D. T. I guidelines. Anything else, joe I think that's it. Thanks so much for having me on the, on the little chat today, enjoyed it, enjoyed it. That was, that was a good one. That was an interesting one. You take care, have a wonderful day. Bye bye next week 

Landsea Homes Eyes Orlando As Base Of Operations

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Exclusive: Landsea Homes eyes Orlando as base of operations for future East Coast expansion. The Newport Beach, California-based homebuilder's recent $179.3 million purchase of Orlando-based Hanover Family Builders establishes a "beachhead" for Landsea. It's still unclear where "potentially beyond" may be, but a homebuilder interested in scooping up land for more homes should head south toward Davenport and north toward Ocala and Gainesville. Further growth in the market by Landsea would mean new home construction, which is important for Central Florida for a couple reasons.  First, construction activity generates jobs and subcontractor opportunities for local businesses. Second, new homes are in high demand amid a historic seller’s market in Central Florida.

One-Third Of Homes For Sale Are New Construction

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One-Third Of Homes For Sale Are New Construction. The share of newly built single-family homes on the market is at a record high as the resale market continues to face severe shortages. Homebuilders have been ramping up inventory due to increasing buyer demand. However, builders have said surging material costs and labor and lot shortages continue to press on the level of building activity. More than one-third—34%—of U.S. single-family homes for sale in December 2021 were new construction, the highest on record, according to new research released by Redfin, reflecting the national housing market. New-home prices tend to be higher than existing homes.

Clermont Real Estate Firm, Cagan, In Talks To Buy Lake County Land

Clermont real estate firm ,Cagan, in talks to buy Lake County land.

Clermont real estate firm, Cagan, in talks to buy Lake County Land in an off-market deal for residential project The Tavares City Council on Jan. 19 voted unanimously to enter negotiations with Cagan Management Group Inc. for the possible sale of 6.7 acres owned by the city to Cagan Management Group. Cagan Management Group’s plans are in the preliminary stages, but it envisions 50-60 townhomes for the site. The land was not marketed for sale, but the city attorney informed the city council that it's legal to sell the property based on an unsolicited offer.

Big Jump In Home Seller Profits

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ATTOM’s 2021 year-end report on the housing market found it was far from a typical year. Homeowners who sold their houses in 2021 realized a median profit of $94,092 according to data released by ATTOM.  That was a 45.3 percent gain, up from $64,931 and 33.6 percent in 2020. Those homeowners who sold in the fourth quarter of last year had owned their homes an average of 6.14 years. Another anomaly in 2021 was the percentage of all-cash sales. ATTOM said there were a few signs late last year that prices could flatten out in 2022, including declining affordability, lower investor profits and rising foreclosure activity. No doubt, there are warning signs that the surge could slow down this year. 

Interest Rate Increase

How They Are Cutting Into Your Purchasing Power

Transcript:

Good morning, my name is Brenden Rendo.

 I'm with the Homes Orlando Team at NextHome Neighborhood Realty and this is my buddy, Joseph Dionne of Appli Home  Loans.

Morning Joe. Hey, good morning. How are you doing today, man?

 I'm doing good, enjoying the cool weather down here in Florida.

 It is that it is, it's fantastic weather and I'm excited to be with you this morning.

 I think we've got some great stuff. So I'm curious what are we going to dive into today today?

I think it's important for us to go through what the current increase in interest rates is meaning to buyers, especially with the low inventory and the continued home price increases that we're seeing and you know this, it's it's a battle out there for home buyers right now.

 It really is. So what have you seen in the past, just in the past month alone, what have you seen as far as the increase in rates and how that's affecting are affecting our buyers?

 Yeah, this is like, this has been such a huge talking point at my, at my brokerage and my company between my owners and myself and our entire team is really, is this big change in rates and we all knew it was going to come at some point.

 We saw it and we've seen the market tested a couple of times and and really just from december to now, you know, so you're talking one month time, we've seen a half percent, 3.625% increase in rates And you're talking in 30 days.

 The rates have changed that much. So that's that's nuts.

 So that's that's not what does that really mean though to a consumer because they like all right, I've got a higher rate.

 Like, what does that mean though? Right. So, so it's got to cut into the purchasing power. It really does.

 It really does. So, what I mean right now, if you're in central Florida And you're looking at a house, you you've got to be what?

 Around what? 400,000 somewhere around there.

 So if we were to say 400,000 Average buyer put in 5% down, you know, and let's just say, so we're going to go with a loan amount of 380,000.

 Just to give you some data real quick.

 I said, I went and I pulled some information of the at average rates as reported from mortgage news daily for the last one.

 Right. And the mortgage news daily is an industry like it's a recognized website for mortgage rates and data and everything rates and everything going on.

 All this fun stuff. They give great info.

 Then a month ago, they were reporting rates on average, we're about 3.125.

 And then today they're reporting the same rates Are right around 3.75. So that's .625 difference.

 And this is just this is pulling the data from major, major retail lenders from brokers that are reporting data.

 This is everybody that's just kind of like reporting their own data what they're offering and it's out there right?

 So you go into that and that difference 400,000 And let's say 400,000 5%, 380,000 loan amount At a 3.125.

 That principle and entrance payment It's $1267 and change. Okay so alright excuse me. $1627 and change.

 Sorry, sorry, I'm trying to make it really affordable. Yeah.

 I was just say you're like I'm about to get over this afternoon.

 So that difference from you know now is at 3.75 that same loan amount Would be $1759 and change for a principal and interest payments.

 So that's 100 basically you're looking at $130 increase almost. and principal and interest payment.

 Where does that kind of equate?

 So let's say a buyer was at the top of their debt to income ratio.

 Like they couldn't go any higher when we were at a 3.125 that's the max that they can qualify for.

 So today they wanted to buy that same have that and maximize their buying power.

 They would be down to 370,000 purchase price They lost $30,000 in purchasing power in a month, 30,000 in one month like that that now that's something where you know if you're watching this or you're, you're an agent and you see this video or you're another broker or lender out there like, and you're a client specifically, if you haven't talked to the person that you're pre approved with That in the last month, you better be having another conversation with them to make sure that you're still in good shape.

 Yeah. Because they, they, they, they're going through, you know, a lot of the buyers, the way they work is we've got them set up so that they get the new listings every morning.

 I'm actually joking with them. Hey, you know, they come out at 6:00, my pants are next to my bed.

 You know, you see something called me, we're out the door. It's still that competitive.

 There's a lot of pockets right now.

 I'll give you a perfect example down in Davenport which used to be 90%, All vacation homes.

 Well, it's now probably 50-50 residential vacation. So you've got people competing who are moving here.

 You've got foreign buyers who finally can get out of their country after COVID restrictions are lifted and then you've got Americans who want, who want a vacation rental.

 Their kids are growing up a little bit, they want to be able to come down to Disney every year.

 Maybe get that short term rental. 

 14 homes we looked at 14 homes all gone one day, one day, All multiple offers 10-20 offers on them. That's you're talking like, like you said, that's that's Davenport's so that's, you know, when you look at the Metro Orlando area, like you're really on the outskirts right there, like Davenport's almost like you're not Tampa Metro, you're not Orlando Metro, you're like somewhere else, somewhere, somewhere out there, look at, look at Oviedo last month.

 I had I was fortunate enough to have a listing in Oviedo last month in the sanctuary. Great, great community.

 Right? I was the only one there's 900 to 1000 homes in the sanctuary.

 I was the only one for sale. 36 homes in Oviedo. That was at 32765 zip for sale last month.

 That's crazy. And so, so when we look at that, right?

 And we talk all right, so interest rates have gone up. They've taken a big bump up, You know?

 And and the reality is it's extremely volatile on the market right now.

 But I don't see like you're not gonna see like to like when I say it's volatile, like you're not gonna see tomorrow that it's 3.65.

 And then, and the next day it's three again, you're gonna see like, Alright, today it's 3.625, And you know, maybe it improves and it goes to 3.62.

 Like so a very very small change down.

 But then that bump up might be 3.875, but you know, kind of what I'm saying, and obviously I'm not a major like, I I don't want to sit there and say like, you can write this down and like, this is just my prediction, my estimate, this isn't a guarantee of rates or anything like that.

 But I really think that, I think we're going to continue to touch up towards that four on primary, but I don't know if we're gonna pass it.

 That's what's interesting, you bring that up because the Fed came out earlier this week And they said they don't think rates are gonna push above four this year.

 Yeah. And it's like, that's that's interesting because they're talking about four possible rate increases of a quarter point usually when you get that rate increase, even though mortgages aren't tied to the Fed rate, you know, it pushes them up.

 But what did they do yesterday?

 They actually announced that they were the met and they were supposed to make their first increase, like in January or they, and they were going to announce kind of what to expect and they said, and we're gonna hold off, we're not gonna do anything.

 So March. And the irony of this, right is they took no action.

 And what happened, rates pumped up, like, like it's it's so funny the marketplace that we're in right now and kind of what were happening is there's a lot of, I think what you're seeing on and this is why I say we might not cross that 4 barrier a I think it's a psychological barrier that I think that even the feds and the government and everything else, they know that there's a psychological barrier there because we've been below for so long, right?

 So I think they're worried about that and they're going to make sure that they take the measures to try to keep it there and if we cross it, I feel like we'll bounce back under it pretty quickly.

 But what I think we're also seeing here is that right now we've seen rates jump the way they have because a lot of lenders like myself, like on our side of the table, like the people that are much smarter than me that are like, you know, hedging bets, figuring out these big, you know, national companies, you've got, you know, your United wholesale mortgage, rocket mortgage, Wells, Fargo, you know, all these big companies that are doing mortgages, they've got people and and a team of people that are determining their pricing.

 I think what they're kind of doing is they're hedging a little bit right now, they're like, all right, we're gonna protect ourselves a little bit.

 Everybody else's protecting themselves right now. We're gonna protect ourselves a little bit, right?

 Because they don't know where it's gonna go and at some point, once it starts to stabilize, they're gonna be like, okay, this isn't as bad alright, we didn't go as fast as we want and you may see that improvement.

 That's why I think we're gonna see that we'll see ourselves continue to climb.

 But I think as we hit that 4, it'll be like, okay, maybe we're not going to go as bad because right now they're saying, hey, let's hedge our bets up front to see what happens.

 And then once they've seen what, what's happened to adjust to the market, That's, that's true because I, I bought my home in 2018 And so we, they had actually bumped above 4 and the market slowed down a lot.

 So all of a sudden we had, I had opportunities. It was a pretty good market back then too.

 But all of a sudden I had an opportunity to negotiate deals that I didn't see before, you know, and I think the Fed knows, hey, one of the big, big power, parts of the economic engine right now that's keeping us afloat, keeping us out of recession, is housing, if housing goes boom, you know, is that the rest of the economy is going to pull back.

 I mean, the great thing is, if you look at housing starts, there's actually more new houses being built now since I think it was 2006, something like that.

 You know, there's more new housing starts and you know, you read through the Orlando Business Journal, you know, you see where, you know, policies building a new one out towards Mount Dora and M/I homes is building a new one out towards Mount Dora, but everything's were built out.

 We're really kind of built out in Orange and Seminole County, especially in Seminole County.

 I mean they're, they're finding maybe a five acre lot where they can throw 10 homes on otherwise, you know, you've, we're just spreading out now now now and it's, you know, probably half of my buyers are out of state relocating to, you know, so we're still getting that influx of people moving in here and we're just, and as long as that continues to happen, we're gonna have that shortage.

 But you know, it's, it's great to know that hey, you gotta, you can't sit on your decisions.

 You know, a lot of buyers get nervous, you know, And the hardest part for me is their level of expectation.

 When I explained to him this unfortunately is what a $300,000 house looks like right now in Florida, a lot of them need updating, You know, a lot of them just aren't in top condition.

 And you're just, you're trying to explain to him, I would love to find you that new home, but I can't touch a new build for under $400,000 either.

 So it gets, you know, it gets, it gets very frustrating and you know, my poor clients in that $200k- $150,000 range boy, you want to talk about finding a needle in a haystack.

 Yeah, that's where the home affordability is kind of really has changed and adjusted, right?

 And I know this is a big talking point nationally and a lot of politicians are talking about home affordability and that's why they put the recent changes on second homes or on an adjustment for rates that we're going to see go into effect more to where it used to be a second home was essentially the same rate as a primary purchase, but that's gonna go away.

 We're not gonna like now because a second home is going to cost more and monthly payment because that rate is going to be much higher than a primary, which is gonna help in some areas.

 But I think what, you know, kind of what you pointed out here is, you know, the demand in, in florida is so high and so great right now that florida, you know, I kind of equate back when kind of after the last, you know, that, that the last economic, you know, downfall that we had, so to speak with the hardship from the housing collapse before and then you saw California just explode out of it, like everybody was moving in and the rest of the market was kind of just doing its thing, not really doing much, but then California was like going up, going up, going up, that's what I see in florida right now.

 I kind of compare florida right now to kind of that California marketplace from that really that that 2010 to 2014 range where it's just it just kept going and that's because you know, we have less restrictions on Covid, we have the better you know, we have great weather, we have a lot of businesses going here, A lot of companies are allowing remote employment, we have the attractions that are open.

 So you've just got such a high influx of people going here that we're gonna see those.

 So I think, you know, even though rates are rising and usually when rates rise is that that sometimes stabilizes and gets a little extra inventory slows down how quickly.

 But I don't think we're gonna see that the way that maybe other parts of the country will no we're I mean we're we're not seeing it right now, you know it's it's you know it's it's just it's not going up, that's what I thought it's like okay, you know, hopefully december, you know slows down holiday stuff like that inventory will increase a little bit, it actually went down, inventory was down 50% 2021 December to 2020 December wow that's I mean less homes, higher interest rates.

 It just makes it a very tough market for home buyers, you know you've got to be on your game and you know you've got, I gotta tell you, you've got to stay in touch with your agent and with your lender, you know, because if you're, if you're sitting at that high DTI where you're right there and all of a sudden it jumps a quarter point and you're under contract and you're not locked in, you may be losing that house.

 Yeah, that's you absolutely hit.

 It's so crucial to be in constant communication with your lender and your realtor because they're going to help guide you through this and you need to, you need to be making those phone calls as a client to be talking to them.

 But your lender and realtor should be reaching out, having these conversations with you as well.

 So if you're not experiencing that, you got to call them and figure out what's going on and make sure you're still qualified.

 And I think, I think the biggest thing that I took and I know that you know that from our just quick conversation here is this isn't a doom and gloom type of conversation.

 This is a, hey, this is where we are and this is the market, right?

 It basically means like, hey, you can't wait if you're looking to buy because a, it's gonna cost you more money in your monthly payment.

 But it's gonna cost you more money and the opportunities for the homes because values are going up.

 So had you bought like, and let's just sit there and say had you bought a year ago, you would have already seen, hey, you would have had a lower interest rate and be, you would have already seen 10, 15, 20% in appreciation.

 I got this one for you.

 What do you think was the highest percentage increase in in Orange County as far as jump in In home values and home values like like year over year I would say Orange County, I don't know what 15 Windermere zip code 92% We went from, they went $525,000 to over a $1,000,000 ,92%. That's in the Orlando Business Journal This Week.

 I about fell over many of the other zip codes in Orange County Where there's a think 10 of them that were over a 30% increase in value.

 Think about that if you had bought it last year. Yeah. So one year time potentially wow.

 And that's just, and you know what that's doing like the appraisals now like that because those are now comps.

 Like those are now comparable sales that that are being compared to help value your property.

 So if you're buying right now, those like you didn't benefit from that you bought before.

 So what's going to happen more people are continuing to move here like rates went up and it didn't slow down demand so values are going to continue to rise I think and obviously I'm not an expert, I'm not like this isn't you can't take this and you know, but it's like this is just looking at what's happened and where we are, where we're trending.

 And if we're if the same thing is happening right now, that happened a year ago and a year before that like likelihood is we're going to see a similar outcome.

 Yeah, yep. But that's where the market is today and we do our best, you know, get up and do our best for our clients every day and try and keep them informed.

 Well I appreciate your time this morning.

 I think I hope that was helpful information, everybody and hopefully we'll see you again next Thursday. Take care.

 Great one man. Bye.

Orlando No. 9 Hottest Market In U.S. 2022

Orlando No. 9 Hottest Market In U.S. 2022

3 Fla. Markets ‘Hottest’ for 2022 – Orlando No. 9 An analysis of "competitive" markets in 2021 projects that Tampa will be the hottest in the U.S. this year, with Jacksonville and Orlando close behind. The economists who oversee the yearly ranking say shoppers in the hot markets will likely face strong competition, rising prices and limited inventory that’s snatched off the market quickly. "Homebuyers are attracted to markets in the Sun Belt that offer relative affordability, fast-growing economies and weather that allows them to enjoy the outdoors year-round," says Zillow Economist Alexandra Lee.

Increased Loan Fees On Second-Home Loans

Increased Loan Fees On Second-Home Loans

Fannie, Freddie Increasing Fee on Second-Home Loans FHFA is increasing the "G-fee" on most high-balance and second-home mortgages. The increase in the so-called "G-fees" begins on April 1, 2022, according to FHFA’s announcement. Starting in April, G-fees for the affected high-balance home loans will increase between 0.25% and 0.75%, tiered by loan-to-value ratio. The National Association of Realtors® (NAR) opposes G-fee increases but says the latest change has a positive side if it helps Fannie and Freddie maintain broad liquidity as the federal government pulls back unprecedented support during the pandemic. Realtors® believe any excess revenues gleaned from the fee increases must be used to support homeownership opportunities in underserved communities, expanding affordability and access in a safe manner."

Inflation Pushing Buyers To Accelerate Plans

Inflation Pushing Buyers To Accelerate Plans

Inflation Pushing 1 in 4 Buyers to Accelerate Plans Inflation is weighing on buyer decisions, according to a study.  While 24% now plan to move faster, 1 in 10 have canceled plans and 29% have decided to delay. Meanwhile, 10% of sellers said inflation caused them to move up their home selling plans, 7% are delaying and 3% are canceling. "The way Americans interpret news about rising prices can have a variety of effects on their financial decisions, including homebuying," says Redfin Chief Economist Daryl Fairweather. " Inflation’s impact isn’t always directly related to the cost of a home purchase. Some people will pay a premium to shorten their commute, while others will opt for a more affordable home to make up for expensive gas or a new – but more fuel-efficient – vehicle."

Lake County Approves 1000's Of New Homes

Lake County Approves 1000's Of New Homes

Lake County community with thousands of homes moves toward development Leesburg city commissioners on Jan. 3 approved annexation and rezoning for 1,088 acres off U.S. Route 27, property slated to become the Whispering Hills master-planned community. The community allows for 2,302 single-family homes, 390 multifamily units and 451,000 square feet of commercial development, including medical and office space. Lake County boasts a red-hot housing market, with single-family home sales up 16.7% year-over-year. The demand is depleting the county’s home supply, with inventory down 30% year-over-year.