TAMPA, Fla. — The housing market in Florida can be crazy, and there is a lot to navigate. So, we consulted top experts in their fields.
Anyone who has purchased a home knows you need a great loan officer, realtor, and insurance agent to get to the closing table.
ABC Action News reporter Michael Paluska interviewed all three at our Tampa studio.
Melonny Thompson is a loan officer with United Direct Lending,Laura Bohannon-Myers is a realtor with MVP Realty, andBridget Neumann works for Florida Strategic Insurance.
Full disclosure: All three helped Paluska buy a home earlier this year, which is how he met them. Paluska knew their knowledge and expertise would be valuable to viewers.
Our top takeaways: The market is shifting towards buyers. Sellers are offering closing costs, homes are sitting on the market longer, prices are starting to drop, and despite high interest rates, our experts said now is the time to strike. Gone are the days during the pandemic when dozens of people lined up for one house, willing to pay more than the asking price.
"Many people might have this mindset of, oh, I don't want to overpay an interest rate. But when rates were 3%, nobody minded paying $100,000 over the list to buy a home. So it's a mindset shift," Thompson said.
Florida's insurance market has been highly volatile. But Neumann said that, too, is improving.
"This is good news; we'll see what happens. However, there are a couple of carriers asking for rate decreases this year. So, hopefully, we'll start to see more of a trend in that direction. And that will make buying homes in Florida a little more appealing," Neumann said.
Neumann urges buyers to shop their insurance around to different agents. If someone says you can't get specific coverage, chances are you can; you must find the right person for the job.
"What's your advice for people who might be scared because things have been so crazy?" Paluska asked the panel.
"I say you jump in. There are so many first-time homebuyer programs, and with everything kind of shifting, where prices are going down just a little bit, there is not a better time. I feel like everything's going to skyrocket eventually. Right now, this is the time; this is what you've been waiting for," Bohannon-Myers said.
Knowing the system's ins and outs can save a buyer thousands. Here are some tips that people can consider.
One is called "policy assumption." That is where you take over a federal flood insurance policy. You cannot take over a flood policy in the private market, but it is possible if a seller has a FEMA flood policy.
Also, with high interest rates, buyers can look at a "mortgage transfer" and lock into lower rates on the seller's current mortgage. There are specific qualifications for this. If you plan to buy a home and work on your credit score, the higher, the better, to get the best interest rate.
And if you don't put 20% down. You don't always have to; you can choose to buy out your mortgage insurance so you don't have to pay that every month.
Finally, all three experts said to make the offer personal. Talk to the seller about who the family or person wants to buy the home. Often, sellers want to avoid selling their home to a corporate entity just to put it up for rent.
Have your loan officer contact the listing agent to determine if their finances are strong. Thompson said she does that a lot as a courtesy for Bohannon-Myers. If a seller knows financing won't fall through, they will be more likely to accept that buyer's offer.
Good luck, and happy housing hunting!
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