Pensacola Realty Masters Blog
Realty Masters is happy to present the following Pensacola area community and Pensacola real estate information!
We've compiled a comprehensive list of new construction home builders that are continuously building new homes in Escambia and Santa Rosa Counties in Northwest Florida.
Builder: D.R. Horton (http://www.drhorton.com/)
Flynn Built- https://www.flynnbuilt.com/
Builder: Henry Homes (http://www.henrycompanyhomes.com/)
Builder: Adams Homes (https://www.adamshomes.com/communities/florida/pensacola)
Builder: Thomas Home Corporation (http://thomashomescorp.com/)
Builder: Holiday Builders (https://www.holidaybuilders.com/)
South Bay Construction - https://southbayconstructionfl.com/
Owens Custom Homes- https://www.owenshomeconstruction.com/
Kevin Russell Builders- http://www.kevinrussellhomes.com/
Mack Custom Homes- https://mackcustomhomes.com/
With so much new commercial and residential new construction in the area, the plethora of options involved in the new construction building process can be overwhelming for a prospective home buyer! We are here to help.
We are happy to help lead you whether you have a lot picked out to design and build a home custom to you, or find a new construction home in a newly developed neighborhood. Pensacola is growing at exponential rates and the builder are working hard to meet the supply and demand levels. Give one of our agents a call today for assistance with your BRAND NEW DREAM HOME.
We have been hearing a lot of comments about the increased costs of housing in the area. Comments such as "Housing is getting too expensive in Pensacola!" are all too common. While both rental rates and sales prices are increasing in Pensacola, the Pensacola area is still considered to be affordable compared to other cities, especially other cities in Florida. We decided to research what similar houses cost around Florida and provide you with data on comparing the costs of living amongst popular Florida metropolitan areas.
See the data below comparing different markets in and around Florida. As you can tell, even with increased prices and inventory lows, Pensacola still ranks among some of the most affordable markets in Florida.
Comparing Florida Real Estate Markets:
Florida Metro Average Sales Price Median Sales Price Median Time to Sell
- $263,397 Average Sales Price
- $231,000 Median Sales Price
- 91 days Median Time to Sell
Crestivew/ FWB & Destin
- $509,200 Average Sales Price
- $279,900 Median Sales Price
- 92 days Median Time to Sell
- $257,259 Average Sales Price
- $231,500 Median Sales Price
- 81 days Median Time to Sell
Orlando/ Kissimmee/ Sanford
- $326,044 Average Sales Price
- $280,000 Median Sales Price
- 78 days Median Time to Sell
Miami- Fort Lauderdale - West Palm Beach
- $547,362 Average Sales Price
- $370,000 Median Sales Price
- 98 days Median Time to Sell
Tampa- St. Petersburg- Clearwater
- $300,609 Average Sales Price
- $248,500 Median Sales Price
- 77 days Median Time to Sell
*Data provided from SunStat Reports from Florida Realtors
Are you interested in purchasing a home in the Pensacola area? Our Realtors can help you whether you are looking to lease or buy. Give us a call or email us today for more information.
Buying a home can be very overwhelming, especially in today’s market. You may be interested in purchasing but not know where to start. Here’s Pensacola Realtor Mike Hamby, Realtor, to discuss the steps for first time homebuyers to find buy a house!
- You need a realtor to help you buy a house. The commission is paid by the seller so no cost to you to have a buyer’s agent represent you! Please do note, that some agents and companies may charge a buyer transaction fee so always ask your agent before choosing them if they charge a fee. Our agents do not! Now that that’s out of the way, you want to meet with your realtor to discuss your wants and needs.
- Your realtor will introduce you to trusted lenders who can get you pre-qualified for a loan.
- Start looking at homes! We will review pros and cons of the location, condition, and price.
- Found one you like? Make an offer. If it gets accepted, we move forward to inspections.
- Discuss the inspection results and remedies possible.
- The bank orders the appraisal to ensure the value matches the price you are paying.
- If all comes back well with the appraisal, you move to the next step with the lender which is the underwriting process.
- The typical closing time in Pensacola takes about 45 days once you are under contract. Keep in mind, with the fierce competition in today’s market, it could take 3-5 months to find a house. It is typical to put in a few offers before anything gets accepted!
This is a really simplified breakdown of the steps towards homeownership, but it does entail a lot more than this. That’s why it’s best to find a Realtor that you feel comfortable with and trust to help guide you through the process. If you are interested in purchasing a Pensacola area home and want more information, call or text Mike Hamby at Mike Hamby (850) 290-4745.
There is no doubt about it- we are in a seller’s market. Inventory is down as much as 50%, and prices are up, which makes finding a home to purchase more challenging. It is not uncommon for Pensacola area sellers to get 10 or 15 offers upon putting their home on the market. Especially now, buyer’s need a little more than good luck to secure a nice home. Buyers (and us Realtors, too) are easily frustrated over the process of trying to secure a home. With the help of a good realtor and a lot of persistence, you can still find your dream home in the Pensacola area!
Here’s David explaining 5 quick tips for homebuyers to help navigate the seller’s market and get their offer accepted.
- Get a realtor who can communicate well with the other listing agent. This can help to find out what is important to the seller and strengthen you offer for negotiations.
- Consider an escalation clause to step above other offers.
- Consider what the offer will net and come with your own closing costs.
- Simplify the contract! Remove contingencies, consider a shorter inspection period, and limit repairs.
- Get a strong pre-approval and shop within your budget.
Reach out to David for help finding yours at (850) 375-7529 or email him David@PensacolaRealtyMasters.com
You can search Pensacola area homes for sale on our website here https://www.pensacola-gulfbreezehomes.com/
After a rough year for many business and people due to Covid-19, it has become hard to find the positives for the year 2020. However, landlords and home owners can rejoice, because the real estate market has been absolutely exploding with growth. The market for Pensacola and the surrounding areas in general has been performing at all-time highs in many areas and all the positive indicators of a sellers’ market can currently be seen.
The area is experience a housing shortage like many areas, but this shortage has only been magnified by the recent coming of Hurricane Sally. This unique situation is causing prices to soar, as options for buyers are limited.
- First of all, the inventory we are experiencing is significantly lower than 2019. This time last year, the MLS had a total of 2,361 active listing for buyers to choose from. Today, the MLS currently has only 1134 homes that are actively for sale. The drop in supply is over 50% from 2019-2020 and this is causing prices to go up as buyers are working against multiple offers the first week the home goes on the market, in many instances.
- To put things into perspective, the average sales price of homes in our area has gone up a whopping $46,000 from this time last year. Even the medium sales price has gone up $30,000 from last year at this time.
- Not only are the prices going up, but even the average days on the market for sales has gone down significantly. Last year, the average time on the market before a home sold was 58 days. That number today, is down to just 41 days.
Homes are truly selling for historically high prices, while closing in record time. All these factors make for a perfect opportunity for home owners to capitalize on their investments. If you have considered selling your home in the past, now may be the best time to capitalize on the market conditions. Even if you are just curious how much your home could sell for, we would be happy to give you our opinion on the value, while also, helping you weigh the pros and cons of selling. Give our sales office a call today to take advantage of the market today, before it’s too late.
Let’s talk about Milton and Pace real estate market trends over the past year.
Here's the Milton, Florida Real Estate Market update.
- Median Home Value: $178,000
- Over the most recent 12-month period, Milton is in the green with an increasing home value of 7.14% and increase of 13.25% in the last 24 months.
Here's the Pace, Florida Real Estate Market update.
- Median estimated home value in Pace is $219,000
- Pace, FL is showing even higher increase of 8.26% in the home value over the last 12 months and 12.65% over the last 24 months.
This is good news for Pace and Milton homeowners. If you are not planning on moving, it means you are earning more equity in your home. If you are planning to sell, chances are you can probably sell at a profit. The average days on the market is less than a month in both of these areas.
We're sure that many of you are wondering how the COVID-19 virus is affecting the buying and selling of homes in our area. In fact, over the last 3 months, both Pace and Milton real estate have remained strong with positive equity increase, a decrease in number of days on the market, and an increase in number of real estate sales.
Are you interested in purchasing a home in Milton or Pace? Browse Pace and Milton area homes for sale on our sales website at www.RealtyMastersofFlorida.com.
Nonwhite Kitchens- We all know that white kitchens have been all the rave for a very long time. While they are still popular we are seeing an increase in colored cabinets. Colors are ranging from soft greys and pastel blues to bold navy blues and black. Some are even combining the two tends with the colored lower and white upper cabinets.
Rustic/ Antique accents- Locally the “farmhouse” style seems to be the most popular the antique look goes beyond the country feel. Antique lighting fixtures seem to be the most popular. The combination of new and old creates one of a kind spaces.
Bath Tubs- One of the biggest selling features in a home besides the kitchen is the master bathroom. The new trends are showing that more people prefer the freestanding tub. If you want to take it over the top you can even put the freestanding tub into the oversized shower like one of our recent sellers.
Bathroom Tiles- Like we mentioned before the Master Bathroom is a huge selling feature so many sellers are choosing to use bold tiles to leave an impression. While accent times have been around for a while these have taken it to the next level. In small bathrooms they are commonly seen on the floor while in the larger bathrooms you can find them on an entire wall.
Formal Dining- For a while we were seeing that the formal dining space was going away. It seems that trend may be coming to an end as more people are choosing to use the dining space as a staged room.
Our broker and fellow real estate investor recently appeared on The Rental Income Podcast! Listen to her 20 minute episode "The Formula for Buying the Perfect Rental with Pam" as she discusses real estate investments.
Pam discusses her preferences for real estate investments in Northwest Florida, preferably newer, lower maintenance single-family homes.
If you are interested in purchasing a Pensacola area rental property or real estate investment, reach out to our sales team. For additional real estate investment information, head on over to our Real Estate Investors page.
With any measurement based on a future predictions or hypotheticals, we know that many parameters, and events can change the results,but that shouldn't stop us from doing our due diligence on the front end of investment properties.
Let's take a look at the kinds of properties I focus on, which are single family homes that are easy to finance with 20% down for investors.
Below is an example of a home purchased for $100,000 with a $20,000 down payment and an $80,000 mortgage at 5% interest. I used a 2% property appreciation rate and 2% annual increase for rents and expenses, and a 10 year holding period.
Annual Rental Income: $1000 per month rents less 2% vacancy = $980 * 12 = $11,760 per year.
Basic view: Invested $20,000 (down payment) for 10 years and then cashed out.
See the chart that shows the growth. (Chart is courtesy of Chris Bird with CRS and came from his investment analysis course which I attended).
Feel free to utilize this formula and information when analyzing your own real estate investments. Reach out if you have any questions about analyzing real estate investments in the Pensacola area.
Across the country, low inventory and increasing home prices are causing rentals to be more indemand. The Pensacola Real Estate market, is definitely a Seller and a Landlord's market as of 2018. The supply of quality homes for rent is currently exceeded by the demand.
In a recent study done by attomdata.com, we see that Escambia County is 57 out of 449 best counties to invest in single family rental properties in 2018, according to the analytics. Pensacola ranked the highest among all Northwest Florida Counties. The data reports less than a 5% investment property vacancy rate and an 11.8% 2018 Annual Gross Rental Yield.
Neighboring Santa Rosa County was ranked 299 out of 449 and Okaloosa County was ranked 219 out of 449.
Demand for Single Family Rentals
One of the major things shown by this report, is that there is a demand for Pensacola rental property. People simply want to live is this beautiful area! From our trendy downtown areas to our upscale beachfront communities, there is something here for every person and every budget. Pensacola is still ranked as one of the most affordable markets in Pensacola.
So what are some contributing factors to Pensacola’s booming rental market? One of the most influential factors, is the military presence in the area. The next factor would be the large growth in the north side of the county due to new jobs being created at the Navy Federal Credit Union. Additionally, we have two colleges including University of West Florida and Pensacola State College which feed the rental market. Finally, there are the renters who simply appreciate the fact that when something goes wrong, they have property management to turn to.
Investing in Pensacola Real Estate
The article points out that the people benefiting the most from the current economic condition of rental real estate, are the owners who have invested in 6 homes. With the demand for rentals on the rise, rents are increasing in the area. We are seeing low supply and high demand so we must admit that it's tough right now to purchase an income producing property. You need a good realtor to help you find, identify, and act fast on good income producing properties.
As we are fellow real estate investors ourselves, we want to help you build income producing real estate investments. We are here to come beside new and experienced investors to streamline the process. Our sales team and property management team work together to identify viable properties to purchase and our sales team of qualified Realtors are prepared to walk you through the investment process with honest, reliable advice.
When you are ready to rent it out, our property management team is ready and willing to assist. So if you are considering investing in the Pensacola area or in Escambia County, give our agents a call!
Click Here for the original article and more data on real estate markets around the state and country.
originally posted 04-04-2018
You now own your home! You have been living the good life of homeownership, but you find your needs changing. You could have received a job offer somewhere else and need to move. When you bought the place you were single and now you have a spouse and children, or the space is too small and you are looking for more room. If this sounds like you, you may consider the option of selling the home and buying another or keeping it to rent and moving to a new home. Not all landlords set out to become landlords, but life happens and you should look at your situation, weigh the options, and do what makes the most sense for you.
The 1st step you should take, look at the math and see what makes sense for you
If you rent the home, will it be a positive or negative cash flow after you make your mortgage payment and other monthly expenses associated with owning the home. For example - Taxes, Insurance, and HOA dues which may or may not be part of your mortgage payment. If it is going to cost you more money to keep the house, you may want to consider selling.
The second step, is can you profit from selling
You should take into consideration the expenses of selling. First, determine the approximate value of the home, subtract about 8-10% for real estate fees and other expenses, and look at your mortgage payoff. If you take the likely selling price, subtract your loan payoff and other expenses, how much will you put in your pocket? If you like that number, you should consider selling. If you would walk away with little or no profit from a sale, or would need to bring money to the closing to sell the home, you may want to keep the home and wait for property values to appreciate more. Especially, if you will have a monthly positive cash flow renting the property.
You will find that one option, or both, other make the most sense in your particular situation based on the math, so lets go a step further and consider the taxes.
Lets say you bought the home for $150,000 - 5 years ago and it is now worth $250,000. You have lived in the home for 5 years, but even after subtracting 10% for expenses, you could potentially profit $75,000 from the sale. Normally, if you sell real estate and make a profit, you'll have to pay capital gains tax on the sale, which can be up to 20% depending on your tax bracket. However, the IRS allows homeowners to exclude the gain on a sale of up to $250,000 (or $500,000 if married filing jointly) of a primary residence if you lived in the home for at least two of the last five years, so in this case the $75,000 profit would be tax free. If you move out and turn the home into a rental, it becomes an investment property. If you then decide you don't like being a landlord and sell it down the road, you may have to pay up to 20% of the profit in income taxes when you sell.
I'm not a CPA, so to learn more about this possible capital gains tax exclusion, consult a tax advisor or read the IRS's rules on the topic.
The third step, look at past and current market trends where your home is located
Questions to ask yourself when considering selling or renting your home.
- The quality of the schools in the area
- Is the area growing and do people want to live there
- Are property values, as a rule, increasing, remaining the same, or declining?
We don't know for certain what the future will bring, but if you have doubts or you know of economic factors that could adversely affect future rental potential and/or appreciation, you may want to consider selling now.
Last step of all, you should ask yourself are you cut out to be a landlord
Landlording can be a pleasant experience or sometimes a very stressful one. You may learn a thing or two along the way and making mistakes can be costly. Of course if you do not want to actually deal with your tenants yourselves, you can always hire a professional property management firm like Realty Masters of Florida to do the job for you.
I hope this blog gives you some good information to help you make the decision to sell or rent a little easier for you; However, if you need more information you can read my latest book published in 2017
“The Real Estate Rulebook, Everything you need to know to build wealth and create passive income" which is available for purchase on Amazon.
originally posted 02-01-2018
The Pensacola Real Estate Market is strong!
We are taking a look back at 2016 Real Estate Statistics. The Florida Real Estate market, which was known to be hard hit by the recession, is showing continual signs of improvement. This is great news for homeowners and landlords but not necessarily great news for tenants.
Let David Keen, Realtor, give you a rundown of some of the highlights of the 2016 Pensacola Real Estate Market.
Here's a summary of what David Keen, Realtor, has to say.
Pensacola Real Estate Market
- Home Sale Prices in the Pensacola Area were up about 5% over 2015 Home Sale Prices
- Inventory is down and supply is limited
- New Construction makes up a large percentage of inventory
- Foreclosures and Short Sales are now only about 3% of active sales inventory
- Average time on the market for properties for sale in Pensacola is sitting at approximately 90 days
With days on the market down along with inventory and supply, sales prices are likely to continue to increase in the Pensacola area. As David mentioned, the distressed inventory made up nearly 29% of our active inventory just two January's ago and now the distressed inventory is down to about 3% of active inventory. Because so many of the sales comparables were distressed properties, it kept the market and appraisal values down. In comparison, today in 2017, nearly 1/3 of the active inventory are new construction, or brand new, homes.
As we are expecting an increase in interest rates in the coming months, many buyers are using this opportunity to purchase a larger home and sell their old home or deciding to make the leap from renter to homeowner.
Pensacola Rental Market
- Rental Rates have increased about 3% over 2015 rental rates. While this is not as strong as the improvement for the sales market, we expect tighter inventory to continue to drive rental rates up!
- The average rental rate in Pensacola is up to approximately $1,100
- Rental Supply is limited with nearly 1,000 fewer units on the single-family rental market than five years ago.
What do these statistics mean? The shrinking inventory of Pensacola area rental properties comes from forced landlords who previously could not sell their homes. These hesitant landlords leased their homes, condos, and townhomes out of necessity, not out of desire. Because of the improving real estate sales market, hestitant landlords are choosing to sell their properties rather then releasing when their tenants vacate. This trend began in 2013 but ramped up in 2016.
The increase in rental supply in 2014 comes from a huge increase in investor purchases as prices were down and distressed inventory was high. Now that it's harder to find affordable investments in the Pensacola area, the investor sales have finally leveled off although demand has not. We expect even more landlords to sell their rental properties this year further tightening the rental inventory. Because of these factors, rental prices will continue to increase over the coming years. This lack of inventory and increase in prices is forcing some renters to make the leap to homeownership earlier than they had desired!
Are you interested in building a rental portfolio? We have owners ready to sell their rental properties and know where you can find the best deals on auction sites, with tax deed sales, and with existing foreclosure inventory.
Do you have questions about the Pensacola rental market or the sales market? Reach out to our team for answers!
originally posted 03-02-2017
- Tenant Education
- Pensacola Real Estate
- Owner Education
- Pensacola Community
- Real Estate Market
- Military PCS Move to Pensacola
- New Construction Builders in Pensacola
- Considerations when Purchasing a Pensacola Multifamily investment
- What Makes a Good Pensacola Investment Property
- Buy and Hold Investment Strategy
- Nicole St. Aubin
- Pam Keen
- Nicole St Aubin
- Erica Parker
- Mike Hamby
- David Keen
- Realty Masters
- Mitch Adcox