Lisa Carey Real Estate Blog at Carey Cottage, Tallahassee

An abundance of student housing exists in Tallahassee with close proximity to Florida State University, Tallahassee Community College, and FAMU.  Possibilities include condos, townhomes, and detached single family homes, all within walking distance, a short drive, or a quick bus ride to your higher education destination.

Many parents prefer to purchase a property for their college-bound children in lieu of dorms and rentals.  It can be an especially wise decision if a family has several student children attending school in the same town.  Benefits are many, especially if financed to the buyer's advantage.  The obvious are the tax write offs, the opportunity for a college-aged child to earn an "income" as the property manager, the possibility of a lucrative return when the property is sold, and quite often a positive cash flow from roommates, or at least the opportunity for roommate rental to reduce or cover the mortgage.

Financing a "kiddie condo" or student housing can work to both the parent's and student's advantage.  In my opinion, using an FHA loan is by far your best choise.  FHA loans aren't what they used to be - they're better than ever!  Best of all, a parent and child can be on the loan together and reap the benefits of homestead in this manner.  In Tallahassee, that equates to a $25,000 reduction in assessed taxable value!  Even a child with no credit (so long as there isn't bad credit), can be on the loan and thus establish the best type of credit for future reference. 

Often a property can be purchased with only a small deposit.  100% financing may is available.  And, sellers can contribute up to 6% in closing cost concessions and no longer are there excessive FHA seller costs.  In fact, I often see FHA seller costs of less than $100 now, making sellers much more accepting of this financing method.  The once dreaded FHA inspection is also no more - a conventional inspection will suffice with only the roof as a major concern.  Relaxed WDO (wood rot & termite) requirements also take the pressure off.

If you are interested in finding a safe and convenient student housing property for yourself or your student child in Tallahassee, please give me a call at (850) 212-3083 or e-mail me at Lisa@CareyCottage.com.  I would be pleased to help you with your search for just the right property and connect you with local lenders who can help you finance the "kiddie condo" to your advantage! 

There is a active debate in Tallahassee about the availability of affordable, or workforce, housing here in town.  Many think there isn't enough and propose giving assistance or grants to builders who will construct more inventory homes.  Others think the homes already exist, and the ticket is getting assistance money into the hands of buyers.

A search just moments ago of the multiple listing service (MLS) here in Tallahassee shows 240 homes with the following criteria:  3 bedrooms, 2 full baths, at least 1000 square feet heated & cooled, and between $70,000 and $185,000.  Another 107 exist in Gadsden County and 126 in Wakulla County, neighboring counties.  That doesn't include the many for-sale-by-owner homes or those sold by builders who don't use the MLS.  A builder I regularly work with builds new-construction, 3BR/2BA homes in Wakulla County starting at $114,000 and doesn't use MLS.  The homes are clearly out there.

I really do believe that getting assistance to the buyer is the answer here, unless our inventory dips well beneath current numbers.  And, it is a system with proven success.  Last week I helped a newly-married couple with nothing in savings buy a beautiful 3-bedroom home.  To give you an idea of the salary range - the groom is in the computer industry, the wife a part-time student and waitress.  New kitchen, new bath, new tile, paint, carpet, molding, 6-year-old roof, 1/3-acre lot, brick & vinyl siding, in an area with proven appreciation.  With only $500 down, we were able to put this $143,000 home under contract for $140,000 with the seller agreeing to repair any systems (plumbing, electric, etc.), fix any woodrot, and pay for a home warranty.  We found an assistance program that not only covered all of their closing costs (about $4000) but also reduced their principal.  Their new mortgage payments will only be about $100 more than rent for their 2-bedroom apartment.

How does it work? 

First, I work with lenders who are experts in assistance programs.  There are programs for first-time buyers, low-income buyers, buyers in rural areas, HOP homes, and more.  HOP actually gives the buyer 25% of the cost of the house as a no-interest, deferred payment loan, i.e. a $100,000 home would only have a mortgage of $75,000.  Buyers qualify and pay on the $75,000.  This is key - find the program that works best for the buyer and gives them a payment that is comfortable for their budget.

Second, weed through the homes and find the best of the best.  All affordable homes are not equal.  An affordable home with a roof that fails 3 months after closing is disasterous to a buyer without a reserve in the bank.  You'll need to kiss a lot of frogs before you find the prince.  Be patient, be careful.

Third, ask for seller concessions!  From closing costs to price reductions.  Ask for home warranties, a new refrigerator, blinds, repairs, etc.  You can even ask to have the rate bought down.  These extras get you across the finish line.

The homes are out there . . . and so are the programs.  Until inventory drops significantly, I would prefer to see the assistance granted to buyers not builders.  If you have any questions regarding these programs, or are interested in finding an affordable home, please drop me a line at Lisa@CareyCottage.com.  If you are already working with a Realtor, please feel free to use these tips for your own success.  Call a lender and see what you qualify for.  You might be pleasantly surprised.  Good luck!  Lisa Carey

Am pleased to announce that my real estate firm, Armor Realty of Tallahassee, has just entered into a partnership with WCTV channel 6 here in Tallahassee.  WCTV will start regular commericals advertising the WCTV Home Place, sponsored by Armor Realty of Tallahassee.  Viewers are asked to go to the WCTV website  www.wctv6.com and click on the Home Place tile sponsored by Armor Realty.  There users may search the local MLS to find homes, watch Armor Realty (and especially Lisa Carey's) listings flash by, meet Armor Realty agents, get local rates and updated real estate news. 

I think it will be a popular site for local buyers who know the area and want to bypass the larger real estate sites.  Most of all, I am hopeful it will bring significantly increased exposure for my sellers and listings.  I recently read that 70% of new home buyers begin their real estate adventure on the internet.  Personally, and at Armor, we are hopeful that the Home Place site will become a real resource for buyers and a strong exposure tool for sellers.  We're thinking outside the box!  Print ads just don't seem to do the trick anymore. 

The Home Place site will change somewhat over the next few months as we collect feedback from users and acquire advanced technology.  I encourage you to visit the Home Place at www.wctv6.com and send any feedback to me at Lisa@CareyCottage.com.  I would appreciate your comments, suggestions and gentle critique! 

To my sellers, I will be tracking any increased visits to my website, www.careycottage.com and specifically hits on your listings at my page.  I will do the same at the www.ArmorRealty.com site and keep you updated on any progress.  Please tell your friends!

Thanks, as always, for your continued confidence in me and many kind referrals.  I've had a number of new relocations customers lately, thanks to referrals, that I am enjoying very much!  It is a real pleasure to introduce Tallahassee to a visitor.  Have a great St. Patrick's Day!

Take care!  Lisa Carey, Realtor, Armor Realty  March 15, 2007