Page 15 - HCMA Summer 2022

Benefit Provider – The Bank of Tampa
Navigating the Home Buying Process in Today’s Market
Oliviana Catrone
Vice President, Private Relationship Manager The Bank of Tampa (NMLS 451520)
• The housing market in the greater Tampa Bay area is forecast to be one of the top housing markets for 2022. According to Realtor.com, home sales are expected to surge by 9.6% while prices are projected to rise by 6.8% year-over-year.
• According to a Florida Atlantic University and a Florida Interna- tional University study, the aver- age Tampa Bay home sold for 41% above the expected price at the end of 2021.
• According to Redfin, home values grew 20.6% from March 2021 to March 2022. Tampa had the largest annual home price increase, at 29% year-over-year.
What do these statistics mean to you? The answer to that ques- tion will vary greatly based on your stage of life. Below are some examples of actions you can take to be ready for a real estate pur- chase in the coming year:
First Time Home Buyers:
1. Establish a relationship with a team of advisors (e.g., pri- vate banker, accountant, financial planner and realtor). These experts offer a wealth of knowledge and experience that can help you start off the home buying process with the best foot forward.
2. Work with your advisors to know your budget and set goals. Before you start house hunting, you want to be sure you have established a home budget. In addition to principal and interest payments, you will need to consider additional costs such as flood insurance, property taxes, homeowners insurance, etc. Also, be sure to factor in the cost of home maintenance. Once you have established what price range is comfortable for your personal situation, you can then begin to work with an experienced realtor to find homes that are best suited for you. One thing to note, in this home buying market, you may be put in situations where homes are being sold for more than their appraised value. Many home buy- ers are being priced out of their intended range. We recom- mend being open minded in this environment, and consid-
ering a range of homes—within your budget of course—in your search.
3. Ask your advisors for guidance on the best available loan programs. There are a wealth of resources for first-time home buyers out there and programs specifically imple- mented to encourage first-time home buyers to take that next step. Work with your team of professional advisors to see what programs you may qualify for. For example, first- time homebuyers in Florida may qualify for down pay- ment and closing cost assistance programs through Florida Housing Finance Cooperation.
Seasoned Home Buyers (relocating, buying a second home, etc.):
1. Communicate your goal with your advisors (e.g., private banker, accountant, financial planner and realtor). Sea- soned home buyers should also connect with their advisors to communicate goals and develop a plan to get there. One area that may specifically impact seasoned home buyers is tax considerations when buying or selling a home. For ex- ample, your accountant and financial advisor should be well equipped to help you navigate tax laws that may impact your decisions.
1. An additional consideration to be discussed with advisors, especially by those in the “sandwich generation,” (those that may have financial responsibility over their children as well as their aging parents), is to consider if you will be purchas- ing a home for a multi-generational family. Future-proofing your home may provide you more options for care in the future.
2. Determine the most efficient way to finance your purchase. The most common way to finance a new home is through a conventional mortgage, but seasoned home-buyers may have other resources available including a line of credit, cash or the equity in your current home. A conventional mort- gage may very well be the best path for you, but it is a good idea to work with your team of professional advisors to de- termine what options are available based on your specific situation.
3. Understand the market. Our current home buying market is hot. An influx of relocations to our area and a scarcity of supply have fueled a surge in housing demand in our area.
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HCMA BULLETIN, Vol 68, No. 1 – Summer 2022
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