Buying the Beach Jacqui! Ask

Jacqui Luberto of Realty One Group Emerald Coast has all the real estate answers

▲ About Jacqui Come find your coastal-charmed life with me! Born and raised with my toes deep in the sugar-white sands of the Emerald Coast and with a Bachelor of Science in business administration and more than 20 years experience in business and marketing, I’ve gained valuable insight when it comes to representing both buyers and sellers in the area. As a military wife, I am familiar with the lifestyle and nuances faced by our military men and women. My firsthand knowledge of military moves will help ease the tension and make your move seamless. Let me show you how stress free your real estate transaction can be when you work with a true professional. And as the broker and owner of Realty One Group Emerald Coast, not only can I help you find the right home, I can help you find the right career!

YOU CAN SEND YOUR REAL ESTATE QUESTIONS TO US and we will “Ask Jacqui!” Jacqui Luberto is the owner and broker of Realty One Group Emerald Coast and has a tremendous wealth of knowledge and experience to share! Send your questions for Jaqui to admin@destinflorida.com.

Q: Can you help me decide if it is better to buy versus rent a home?

A: You bet! A side-by-side walkthrough of all your housing options always makes sense. Unfortunately, there is no one-size-fits-all answer to the question of whether it is better to buy or rent a home. The decision will depend on your individual circumstances and what is most important to you. A great realtor will help you work through the variables! One of the most important things to look at is the upfront cost of obtaining a mortgage versus renting a home. There are some mortgage products and negotiation techniques available right now that can actually cost you less out of pocket than a first month’s/last month’s/security deposit scenario. Make sure your financial advisor, lender and agent are good partners so they can work together to help find what works. Other important factors to consider are your flexibility, potential for financial return and your personal lifestyle. Find an agent that truly has your best interest at heart, and you’ll do great either way!

Q: What is your opinion on so many different HOA fees/costs in these communities?

A: Each community has different amenities and reasons that people choose to live there. Even without being in a gated community the property’s general upkeep, deeded beach access points or enforcement of rules to keep home values high can make a huge difference with ownership and resale. With condos, specifically, we learned a lot about upkeep and maintenance with the tragedy in Miami at Champlain Towers. Owners should stay involved in their association and know what's going on. Continual improvement benefits all!

Q: Are there financing options for income-producing properties that use the property’s income to qualify me?

A: Indeed, many people in this area use it! A debt service coverage ratio (DSCR) loan is a type of loan that is based on the borrower's ability to pay off the loan. The DSCR is a financial ratio that measures the amount of cash flow a borrower has available to make loan payments. It is calculated by dividing the property's net operating income (NOI) by the annual debt service (loan payments). DSCR loans are often used in short-termrental real estate financing, as they allow lenders to assess the financial viability of a property and ensure that it will generate sufficient income to cover the loan payments. However, they may also be used in other types of lending, such as for small businesses or individuals seeking personal loans. It’s a great product and many of our amazing local lenders offer them!

Q: How do you determine a list price for a property going on the market?

A: Well it's equal parts math and magic! First, we need to review comparable properties. This can give us an idea of the general price range for properties in the area and help you determine a competitive list price. Then, we evaluate the condition of the property. If the property is in excellent condition, it may be worth more than a similar property that needs significant repairs or even just cosmetic updates. The majority of buyers want turnkey properties. Next, we evaluate features and amenities of the property and surrounding area. For example, a property with a swimming pool, large lot or, in our area specifically, Gulf views, may be worth more than important to work with a real estate agent who has knowledge of the local market and can help you determine the right list price for your property.

Q: How can I buy a home if I have to sell mine first? What options are available?

A: If you need to sell your current home in order to buy a new one, there are a few options you can consider: a similar property without those features. Finally, we will review the local market conditions. There have been ups and downs over the past few years and these changes often happen very fast.

Contingency offer: You can make an offer on a new home that is contingent on the sale of your current home. This means that your offer will only be accepted if your current home sells within a certain time frame. However, contingency offers may be less competitive in a seller's market.

Sell your current home first: You can try to sell your current home as quickly as possible and then start looking for a new one. This can be a good option in our area, due to the high number of short-term rental options.

Get a bridge loan: A bridge loan is a short-term loan that helps you bridge the gap between the sale of your current home and the purchase of a new one. This can allow you to buy a new home before you sell your current one. But it's important to be aware that bridge loans can be expensive but are very often short lived!

Ultimately, the list price of a property is a balancing act between what you believe the property is worth and what buyers are willing to pay. It's

Rent out your current home: If you have enough equity in your current home, you may be able to rent out your current home and turn your liability into an asset. This can give you the financial flexibility to buy a new home without being rushed to sell your current one.

It's important to carefully consider your options and choose the one that is most feasible and financially responsible for your specific situation. Give me a call and I’ll help you work through the options! It all starts with a good conversation!