Well, rates are up, but still a lot to talk about.
Hurricane Isaias and Citizens Insurance
First Isaias. Luckily it isn’t headed to Tampa/St Pete but we hope it doesn’t hit the panhandle too bad either. We’ve already had a lot of related rain and will likely have an extreme high tide tonight after midnight. Just don’t leave a car in a tidal area and you should be fine. Did you know that when a hurricane approaches, Citizens stops writing insurance? They pause all new policies until all warnings and watches in the state are lifted. If you are closing in the next couple days, make sure everyone is on top of binding the insurance policy. The sales contract allows up to 7 extra days if delays are due to hurricanes.
Citizens Will Require Flood Insurance Starting Jan 1, 2027
While we’re on the insurance topic. Did you know that every Citizens policyholder with a single-family home will be required to have a separate flood insurance policy starting Jan 1, 2027? And yes, even if you are in flood zone X. If you have a Citizens policy on a single-family home, you will be required to have a flood policy. (Condo owners and renters are exempt.) Need a new insurance quote? Give us a shout, we have some great agents we can refer you to. Luckily, several new carriers have moved into Florida and there are some other competitive options.
Rates Are Over 7%. Buyers Have the Leverage.
For the market, rates are up above 7% which is really slowing buyers down. On the bright side, this is the negotiating power that everyone has hoped for ever since COVID put sellers in the driver seat back in 2020. Finally, buyers are calling the shots. If you don’t like the rate, ask for seller credits to buy it down. On a $500k loan, 3 points cost $15k and that is enough to get you closer to 6.5%. And right now, a lot of sellers are willing to pay for it. The power has shifted, use it to your advantage. Restructure the deal, use points, get credits, work the price down. This is the market buyers have been waiting for.
Matt Marsden | The Marsden Group | Agile Group Realty | (940) 206-1931