Home Price vs Lifetime Cost of Mortgage

For the past few years, the real estate market has become more affordable, and has commonly been referred to as a “buyers’ market”. This has been great for buyers who were previously priced out of the market during the “boom years”, and many first-time homebuyers have taken advantage of the lower prices.

Housing Supply and Demand iin Celebration Florida
Housing Supply and Demand in Celebration Florida


Supply & Demand

The real estate market, like all markets, is greatly affected by the principles of supply and demand. When the supply goes up, the prices go down. Subsequently when the demand increases and supplies shrinks, the prices go up.

Celebration FL Downtown
Downtown Celebration

Celebration Florida Real Estate Market

We have seen a large shift in the inventory over the last 18 months here in Central Florida.  To use Celebration Real Estate as an example, we have  less than half of the inventory on the market as we did last year.  This is huge for consumer confidence.  It shows that people have so much faith in the housing market that they are buying again!

The Future of the Real Estate Market

Every now and then, when I take clients out or when I am discussing the market with  someone at an event, they will say that they think the prices are going to go down again.  They heard someone, somewhere predict that there will be another glut of bank owned properties come on the market.

As someone who spends almost all of my time entrenched  in this market, I have never seen any evidence to support this prediction.  If banks had  foreclosed properties that they needed to sell, you bet your bottom dollar they would get them on the market ASAP.  They don’t want to be property owners or pay carrying costs.  With that being said, I don’t think we will see prices take another dive.

Mortgage-Interest-RatesThe Price vs. The Cost

Some people have missed out on fabulous deals, because they have been waiting for the  “bottom”.  So, I would like to make a radical statement here that most people will disagree with at first, but here goes­‐ Price is not the most important factor! Some people may think that sounds crazy, but hear me out.

The most important thing to a buyer is the cost of  purchasing a property. Cost is not the same thing as price.  One of the major factors in determining a person’s financial ability to buy a home is the interest rate, or the cost of the money borrowed.  Right now the interest rate is the lowest is has been all year; the average 30-year fixed-­rate is 4.60%.

Here is an example of what I mean:

A buyer is looking to purchase a home for $200,000 now while the average interest rate is 4.60%.  If he puts 20% down and borrows $160,000, his monthly payment would be $820.23.  If he owned the home for the  entire life of the loan, he would pay 360 payments totaling $295,283.16.

The interest rate is not constant and it always changes, so let’s assume that it goes up in a couple of months.

Lower Mortgage with Higher Mortgage Rate Can Actually COST YOU MORE!
Lower Mortgage with Higher Mortgage Rate Can Actually COST YOU MORE!

That same buyer decided to wait and see if prices would come down, and maybe he got the home for $190,000.  During the time he waited though, the interest rate when up 1%.  He is  now getting a loan for $152,000 at 5.6%.  This puts his monthly payment at $872.60 and he will pay $314,136.02 for the home over the course of the 30 year term.

Initially it looked liked my buyer saved himself $10,000, but he actually cost himself over $50 per month and paid  almost $18,000 more for the home over time!

What I am trying to say is that buying a property is about more than price.  All costs should  be taken into consideration when deciding when is the right time for you.  If you have any  questions about this example or would like me to help you assess if now is the time to buy,  please feel free to contact me any time.



Celebration, FL Health

When people are looking to purchase real estate, they often ask about the proximity of local hospitals and health care facilities. People don’t want to have drive out of their way to visit their personal physician or if they have an emergency.

Celebration FL, Celebration Health
Celebration Health

In Celebration, we are incredibly lucky to have Celebration Health right here in town. Celebration Health is an award-­‐winning hospital that is a part of the Florida Hospital Network. The facility provides many patient services & areas of treatment including Labor & Delivery, Diabetes, Heart Health, Bariatric Surgery, Spine Center, Orthopaedic Health, Imaging, General Health, and Cancer. Many physicians, including dentists, also have their offices on site. The hospital is currently undergoing an expansion that includes a new Robotics Surgery addition providing state of the art care and treatment.

Celebration Health is also home to the Fitness Centre & Day Spa. The fitness centre offers the latest exercise equipment and has a wide variety of classes taught by well-­‐trained instructors. The facility also boasts a lap and therapeutic pool that is used for classes as well as rehabilitation and free swimming. Childcare and personal training is available. It is a wonderful, clean and friendly place to work or enjoy a steam in the sauna.

Considering Celebration FL homes? Contact Nectar Real Estate today to get started on your real estate search!

Decreasing ‘For Sale By Owner’ Trend

Why It’s Worth the Commission

For those of you unfamiliar with the term, for-­sale‐by-­owner means that the seller of the home is attempting to sell the property themselves without hiring a real estate professional or being listed on the MLS (Multiple Listing Service). More often than not, these sellers do not engage the help of a Realtor strictly because they don’t want to pay the commission.

I would like to explain why this does a disservice to the homeowner and mathematically just doesn’t make sense.

windermere luxury homes for sale by Nectar Real Estate
Click to View Windemere Homes for Sale

As a Realtor in Central Florida, I can tell you that the standard commission that a Realtor takes to list and sell a property is 6%. The listing agent offers 3% of that commission to the agent who brings the buyer, and the remaining 3% is paid to the listing agent for their services. These services include, but are not limited to, negotiating all offers, marketing the property, showing the property, and answering questions about the home and neighborhood.

According to the NAR (National Association of Realtors), For­‐Sale‐By-­Owner properties sold for 13% less on average than similar properties marketed and sold by Realtors. That is a huge difference! It means that sellers left an average of 7% of their home’s value on the table.

I understand that sellers sometimes chose to sell a property themselves after they have a had a bad or unproductive experience with a real estate professional. In order to avoid personality conflicts and to make sure you and your Realtor have the same goals, I encourage you to interview several Realtors and ask them lots of questions. Your home is generally your largest financial asset. It is important to make sure that it is being represented by someone who is competent and knowledgeable.

orlando homes for sale by Nectar Real Estate
Click to View Orlando Homes for Sale

In 2003 and 2004, For‐Sale-­By‐Owners represented 14% of the sales in the marketplace. In 2010, that numbers had dwindled to a mere 9%. Sellers have realized that this market is different, and your property needs someone with real marketing ability and reach to get in front of the most amount of people and thus garner the higher sale price.

If you are a seller looking to sell your Florida home, contact Nectar Real Estate today to see what we can do for you.

Nectar Real Estate Client Testimonials

Hear What Our Clients Have to Say!

We think that it is really important to ask our clients how we did once a transaction has closed.  It allows us to grow as a company and as a real estate professionals.  Here is what some of our clients had to say:

Davenport FL homes for sale by Nectar Real Estate
“Jana is awesome! When we started looking at homes in Florida, we were in South Carolina.  She asked what we were looking for and we sent her a list. She would send us updates for new homes on the market. And her website is awesome.  Great maps, great information, great pictures!  When we came down to do some house hunting, she came to the hotel and picked us up.  Jana took us to the houses and even walked around inside just looking at the layouts.  No Pressure at all!  We were very comfortable with her. 

Once making a decision on a house (last one to look at, first one picked), she made the paperwork process so easy and simple.  Jana will try to get as close to the ideas that you have for a house.  The house I picked had everything I wanted.  She made our move to Florida very smooth.  Went to all the inspections since we were in South Carolina, and took extra care to make sure that all our requests were taken care of!  I have recommended Jana to several other people and will always recommend her.  She will bend over backwards to make sure the house is the right one!  I can’t thank her enough!”  ‐ Tamara G.

orlando homes for sale by Nectar Real Estate
Click Here to View Orlando Homes for Sale

“My wife and I were introduced to Jana Renner and Nectar Real Estate through a trusted friend who also lives in Celebration, FL.  Jana went above and beyond in helping us to find the perfect property, dedicating several days to our search.  She was extremely patient and explained details through multiple calls and emails.  Her thorough knowledge of the Kissimmee area helped us make an informed decision about which property to buy. 

When a home inspection for one property uncovered a problem Jana quickly identified our optionsand helped us find an even better property.  Keith Renner also pitched in by taking photos and a video, giving us the opportunity to walk through the property several times before making a final decision, then meeting me late at night to deliver the keys.  Nectar Real Estate exceeded our expectations in helping us realize our dream of having a vacation property in Orlando.”  ‐ Tom F.


“After two weeks of extensive negotiations involving both the buyer and their agent, you (Keith) achieved the first arms‐length sale on Eastlawn Drive (in Celebration, FL) in many years and the highest price per square foot on Eastlawn ever.  The sale closed under three weeks later.  Throughout this time you (Keith) conducted yourself to the highest standards of professionalism and we want to thank you for selling our home.  In a difficult market, you achieved what others had failed to do.  You sold our house.”  ‐ Phil W.


We are truly dedicated to each individual property. Contact Nectar Real Estate today to see how our marketing system can work for you!