MAJOR IMPROVEMENTS COMING TO THE NATIONAL FLOOD INSURANCE PROGRAM

On Oct. 1, 2021 FEMA will begin implementing a new pricing methodology called Risk Rating 2.0: Equity in Action. These changes will apply to new policies. Most existing policies will not be affected until after April 1, 2022.

 

Where Can I Find More Information About FEMA’s Risk Rating 2.0: Equity in Action?

As FEMA implements the new pricing system, some owners and buyers may have questions about flood insurance rate changes. Real estate agents and brokers are an information source, not flood or insurance experts. You can provide the facts that every home in America has some flood risk, and a flood insurance rate quote from a licensed insurance professional can help your clients make better informed decisions. You can also be ready with contact information for a few NFIP and private market insurance agents, licensed surveyors/engineers, and other flood risk professionals (e.g., your local government floodplain manager) who can offer risk assessment and mitigation resources and answer property-specific questions.

NAR has developed the following comprehensive packet of educational information for NAR members to talk with customers about Risk Rating 2.0:

FEMA-NAR Flyer for Homeowners

NAR Frequently Asked Questions (FAQs)

NAR Member Legal Guidance

NAR-FEMA Toolkit: Disaster Preparedness

Video: NAR-FEMA Townhall

Video: Flood Insurance & Disclosures: What You Need to Know Now

 

To learn more about Risk Rating 2.0:  Equity in Action, FEMA has a dedicated webpage with comprehensive consumer resources(link is external).

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      What’s Changing? Since the 1970s, National Flood Insurance Program rates have relied predominantly on a property’s location with a zone on a relatively static Flood Insurance Rate Map. With the new methodology, FEMA now has access to modern insurance technologies, catastrophic models and data sets so it no longer requires zones or elevation certificates. The new methodology rates each individual home according to property specific rating factors, such as its unique elevation, distance to water and cost to rebuild.

      
      
    
    
    
    
  
  
  
  

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      Why? Currently, policyholders with lower-value homes are paying more than they should and policyholders with higher value homes are paying less than they should. These lower-value homes have some of the highest rates in the program. Under the new methodology, they will see an immediate decrease in insurance costs because it accounts for more risk factors and rates each home individually.

      
      
    
    
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      What Does this Mean for my NFIP Rate – Will it Go Up or Down? Because each home is rated individually under the new system, only a licensed insurance agent can tell you that. Please contact your agent today to prepare a quote for you or view FEMA’s Risk Rating 2.0 at www.fema.gov/flood-insurance/risk-rating.

      
      
    
    
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      What’s Not Changing Under Risk Rating 2.0? Rate increases will not exceed 18% per year; Grandfathered rates including for newly mapped and pre-FIRM subsidized homes will continue; Policyholders will still be able to transfer discounts to a new owner by assigning their flood insurance policy; and Floodplain Mgmt. requirements will continue to be enforced by communities and lenders as usual.

      
      
    
    
    
    
  
  
  
  

 

Source: FEMA & National Association of Realtors®

FHFA Extends COVID-19 Forbearance for Multifamily

The Federal Housing Finance Agency announced that mortgage financing giants Fannie Mae and Freddie Mac will continue to offer forbearance indefinitely to qualifying multifamily property owners as part of their ongoing COVID-19 protection.

This marks the fourth extension the FHFA has made to the programs. The latest were set to expire Sept. 30.

“Given the uncertain nature of this pandemic, the FHFA is taking further action to protect renters, property owners, and the mortgage market,” says Sandra L. Thompson, acting director of the FHFA.

Property owners with Fannie Mae– or Freddie Mac–backed multifamily mortgages can enter a new or modified forbearance if they experience a financial hardship due to the pandemic’s impact on their business operations. Property owners must inform tenants in writing about tenant protections available during the forbearance and repayment periods. They also must agree not to evict tenants for nonpayment of rent while the property is in forbearance.

Additional tenant protections are in place when the repayment period starts.

For more information, visit consumerfinance.gov/housing on relief options.

 

Source: FHFA.gov

Acts of Kindness Can Bolster Students’ Health and Wellness

Study Finds Small Acts of Kindness Can Bolster Students’ Health and Wellness

 

A small act of kindness can go a long way, say researchers, towards bolstering student health and wellness.

Dr. John-Tyler Binfet and Dr. Sally Stewart at the University of British Columbia recently published a study that explores how the inclusion of a kindness assignment in an undergraduate course impacted student perceptions of themselves, their peers, and their campus.

While there have been several studies that have assessed the effects of kindness on wellbeing, there has been limited research into how university-aged students understand and enact kindness, says Dr. Binfet.

Thousands of university students returned to class across Canada in September, and Dr. Binfet notes that while living in the times of COVID-19 every act of kindness goes a long way.

“We know being kind yields a number of wellbeing benefits, such as stress reduction, happiness and peer acceptance, and we know mental health impacts learning,” says Dr. Binfet.

“The post-secondary environment is often the last training ground to prepare students for life so we want to understand how we can prepare students for optimal mental health as adults.”

For the study, volunteer students provided self-reports to determine the extent they see themselves as kind in online and face-to-face interactions, and how connected they felt to their peers and the campus. The students were then asked to plan and complete five kind acts for one week.

The participants completed 353 kind acts with the main themes of helping others, giving, demonstrating appreciation and communicating. Students that completed at least three of the five planned acts of kindness self-reported significantly higher scores of in-person kindness and peer connectedness.

“This research can help students realize that there is evidence behind how and why people are kind, and that kindness does impact health and wellbeing,” says Dr. Stewart. “It also has an incredible impact for teaching in higher education as it provides insight into where students are at with their practice and understanding of kindness in order to build the groundwork for inclusion of this topic within educational practices and course content areas.”

While there are on-campus wellbeing resources available to students at most post-secondary schools, this research demonstrates that by including wellbeing initiatives into coursework, it’s easier for more students to engage in those activities and receive benefits without added effort. The study also demonstrated that a curriculum-based kindness intervention would be well received by students.

“We found that the students loved the assignment,” says Dr. Stewart of the study, published in Journal of Further and Higher Education. “For some, it helped them realize that kindness is a skill that they can learn to do better and that there are many ways to be kind. For others, it helped them realize that they already do kind things. It reinforced their desire and intention of doing more kind acts.”

For years, Dr. Binfet’s research has focused on elevating the discussion of kindness, and he has previously completed studies on how children and adolescents perceive and enact kindness.

“With this research, we now see alignment in how university students and school-age participants define kindness—to them it means actions that can improve the lives of others. Often, it’s simple things such as being polite and helping others,” says Dr. Binfet.

Source: University of British Columbia

Treasure Coast Weekend Happenings

Recycle Derby

Date: Saturday September 25, 2021

Time: 12:00 pm – 4:00 pm

Location: Walking Tree Brewery

Address: 3209 Dodger Rd, Vero Beach, FL 32960

Price: $10 entry for derby vehicle; free admission to watch

Category: Games / Tournaments

Walking Tree Brewery and Coastal Connections, Inc have teamed up to host the coolest new way to RACE and RECYCLE in Vero Beach. Amateur drivers will take the wheel of their team’s homemade derby cars made from 75% recyclable materials fueled by nothing but courage and manpower. Derby cars can range from realistic replica cars to anything the imagination can conjure up and must make it through FIVE challenges along the racecourse. But it is not just about speed. To gain more showmanship points, participants can wear outrageous team costumes, perform a skit or create their own music soundtrack for the race. So, grab your friends and get building your derby cars for the most memorable recycling event of all time. Or hang out and watch the fun!

https://coastal-connections.salsalabs.org/2021recyclederby

 

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17th Annual San Juan Festival & Business Expo

MIDFLORIDA Credit Union Event Center

Date: Saturday September 25, 2021

Time: 12:00 pm – 10:00 pm

Location: MIDFLORIDA Credit Union Event Center

Address: 9221 SE Event Center Pl, Port St. Lucie , FL, 34952

Price: Tickets at the door

Category: Entertainment

Event hosted by the Puerto Rican Association of Hispanic Affairs.

Come and Celebrate the 17th annual San Juan Festival & Business Expo with live music arts and crafts, food, drinks and vendors. Fun for the whole family. Come out to the MIDFLORIDA Event Center and celebrate Hispanic heritage month.

Tickets sold at the event

Saturday, Sept. 25 | 12 p.m. to 10 p.m.

http://prafha.org/

 

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Suncoast Basset Rescue Annual Fundraiser

MIDFLORIDA Credit Union Event Center

Date: Saturday September 25, 2021

Time: 4:00 pm – 8:00 pm

Location: MIDFLORIDA Credit Union Event Center

Address: 9221 SE Event Center Pl, Port St. Lucie , FL, 34952

Price: 70.00

Category: Arts / Exhibits

This event is hosted by Suncoast Basset Rescue, Inc.

The Annual Charity Auction is to support the medical needs of rescued basset hounds throughout the state of Florida.

There will be appetizers, dinner and dessert. Silent & Live Auctions with four themed interactive stations and a cash bar with themed signature cocktails.

http://suncoastbassetrescue.org/pages/events/events.html

 

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SUNDAY DECK PARTY by the Docks! Waterfront Bar, Art Market

 

Date: Event occurs every Sunday of every month.

Time: 1:00 pm – 6:00 pm

Location: Causeway Cove Marina – Wet Whistle Bar

Address: 601 Seaway Dr. Fort Pierce FL 34949

Price: $0

Category: Concert / Live Music

Sunday Funday weekly Deck Party on the water – Cocktails, Live Music, Art & Table Vendors Market, Food, Water-views, FREE to attend & park!

Experience OLD FLORIDA FUN!

Spend time by the water with a deck, the docks, great drinks, yummy food, and the most chill vibe around. THE WET WHISTLE BAR at Causeway Cove Marina will transport you to the Florida of old. No attempts to be plush, trendy, or hip – just an authentic deck bar with friendly servers, fantastic river views, and good times!

**********EVERY SUNDAY you’ll hear great local musicians, while enjoying Drink Specials including $5 Margaritas (3 flavors). Stacked Bloody Mary’s include a slider! ARTIST AND TABLE VENDOR MARKET every Sunday as well. Loads of free easy parking. Plenty of space to hang out, spread out, bring your beach umbrella and chairs if you like! (no outside beverages allowed). No cover charge or event fee, just a great way to spend a Sunday Funday in the Fort. !

Friendly dogs welcome on grassy area beside bar – lawn chairs welcome. NO COOLERS OR OUTSIDE BEVERAGES allowed. All ages venue.

See you here, tell your friends! Cheers!

THIS AND MORE TREASURE COAST EVENTS

 

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SUNDAY AT 12 PM EDT – 6 PM EDT

Treasure Coast End Of Summer Vendor Market

Treasure Coast Square

https://www.facebook.com/events/436874824286353/?acontext=%7B%22event_action_history%22%3A[%7B%22mechanism%22%3A%22discovery_this_week_tab%22%2C%22surface%22%3A%22bookmark%22%7D]%2C%22ref_notif_type%22%3Anull%7D

ST. LUCIE COUNTY DOUBLE DIGIT INCREASE IN MEDIAN PRICE

Just in! Newly released market reports from Florida Realtors® detailing recent real estate activity in St. Lucie County. The reports compare year-over-year data for August. Here are statistics on single family homes.

 

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“The St. Lucie County housing market ended summer just as hot as we expected! This area continues to be one of the most sought-after markets and top destinations to relocate to. As the market heats up, the appeal to invest in the housing market is increasing by the day, which has led us to another double-digit jump in median sale price to $317,900,” said Karen Johnson, President of Broward, Palm Beaches & St. Lucie Realtors®.

Median sale price is our preferred summary statistic for price activity, because unlike average sale price, median sale price is not sensitive to high sale prices for small numbers of homes that may not be characteristic of the market area.

“It’s worth noting that closed sales were down for the first time this year at 11.7 percent. Despite the slight decrease in closed sales, the median time to contract was 9 days. Mix the short time to contract with the historically low interest rates and the increasing price of rent in the Treasure Coast, it’s becoming more apparent that the time is now to start the home buying process. Contact a local Realtor® today to hear their expertise on the current market conditions and how they can help you find your dream home in St. Lucie County,” continues Johnson.

Closed sales are one of the simplest – yet most important indicators for the residential real estate market. Closed sales are affected by seasonal cycles, so actual trends are more accurately represented by year-over-year changes, rather than changes from one month to the next.

Market Reports: Single Family (Opens as PDF.) | Townhouses/Condos (Opens as PDF.)

Six in 10 Americans Agreed They’re More Financially Confident

Six in 10 Americans Agreed They’re More Financially Confident Than They Were Before the Pandemic

 

Gen Z and millennial Americans are “cashing in” on lost time due to the pandemic and applying new financial lessons from these life-changing years, according to a new survey.

The new poll asked 2,000 Gen Z and millennial Americans (born in the years 1981-2003) and asked about their new spending and saving habits during the ongoing impact of the pandemic.

The results found that nearly seven in 10 (69%) are getting back to spending money on things they missed because of COVID-19. And, 75% are focusing their spending on activities that allow them to catch up with friends and family.

When lifted restrictions and re-openings began in early summer, Gen-Z and millennials took advantage, with 51% of respondents splurging on a trip away, while 49% have been spending money on drinks and dinners at bars and restaurants.

Conducted by OnePoll on behalf of Laurel Road, a digital banking platform of KeyBank, the survey also found that 58% created new savings goals because their spending habits have changed.

Six in 10 respondents agreed they’re more financially confident than they were before the pandemic and they credit their need to be more financially responsible to COVID-19.

It’s translated to a shift in how Gen Z and millennial Americans manage their personal finances, as just over 30% admit they’re budgeting for the first time, while a further 39% are using new methods, like apps or dedicated spreadsheets to keep track of their budget.

Saving more

The survey found that 61% of respondents managed to save at least $1,000 from the start of the pandemic through the start of summer 2021 and one in 10 saved over $5,000.

With those new savings, Gen-Z and millennials say they’ll put that towards paying off their student loans (38%), spend it on a vacation (37%), pay their rent (32%) and make payments on their credit cards (29%).

“It’s encouraging to see that young Americans are feeling more financially confident throughout what continues to be a very difficult and challenging time, and that so many are focused on maintaining their hard-earned savings,” said Alyssa Schaefer, Chief Experience Officer at Laurel Road.

The survey found that 77% of those with private loans now feel prepared to start paying again, compared to 62% who have federal student loans.

Respondents’ confidence in their ability to save remains high, with two-thirds (66%) noting they believe they can achieve their savings goals moving forward.

In fact, this is top of mind for many, as over one in five (22%) of those surveyed noted that if they had an extra $1,000 to spend for the rest of 2021 they would put it in their savings account.

TOP CHANGES TO PERSONAL FINANCE

1. Began using a new method of budgeting (apps, spreadsheets, etc.) – 40%

2. Created new savings goals – 31%

3. Now budgeting for the first time – 30%

4. Spoke with a financial advisor – 24%

5. Planning to pay off more of my student loans – 20%

Study: Homeowners Have Gotten Lazy About Security

Homeowners may have developed some bad home security home habits during the pandemic. They’re realizing it as they plan excursions, according to a new survey of 1,000 U.S. consumers from Vivint, a smart home and security company.

Forty-two percent of respondents say concern over their home’s security while away was one of the leading reasons for anxiety over leaving home to travel. That is even higher than the 39% who expressed anxiety about getting COVID-19 while traveling, the survey finds. Younger Americans are more likely to feel this way than those who are in their 30s or 40s. Also, people living in urban areas showed more concern about their home’s safety while traveling.

The most common bad home security habits that respondents reported they’ve taken since the pandemic are leaving windows open and unlocked while home and leaving outside doors open or unlocked while still at home.

A separate survey found that 26% of people don’t lock their doors when they were at home, despite findings that show most burglaries occur when someone is around, Vivint researchers found. The average cost of a home burglary is $2,661.

About 40% of Americans admitted to not doing their proper due diligence when it comes to protecting their homes before heading off on vacation, the survey found.

Vivint highlights some of the most popular home safety practices while away.

Source: “Protecting the Home While You’re Away,” Vivint.com (July 2021)

Home Shortage in America

Report: America Is Short 5.24M Homes

 

More real estate listings are coming to the market, but that won’t be able to make up for the fact that America is short millions of homes based on population needs. That likely means home buyers will continue to face inventory shortages and a dearth of homes for sale in the future.

The U.S. is short 5.24 million homes. That is an increase of 1.4 million homes from 2019, according to research from realtor.com®.

“The pandemic has certainly exacerbated the U.S. housing shortage,” said Danielle Hale, realtor.com®’s chief economist.

New-home construction—at its slowest pace since 1995—is not making up the difference either. About 12.3 million American households were formed from January 2012 to June 2021. However, only 7 million new single-family homes were built during that period, CNBC reports. Builders would need to double the new-home production pace to make up the gap in five to six years.

“No matter how you frame the scenario, it will take a more meaningful shift in the pipeline to meet demand in the foreseeable future,” Hale told CNBC.

Builders like PulteGroup say that they are actually slowing sales lately to try to keep pace with the backlog from the high demand over the last few months. Builders are facing labor and lot shortages as well as rising costs for building materials.

Home prices are quickly rising as demand outstrips supply. Homes with a median value of $300,000, which is considered more affordable by today’s standards, comprised just 32% of builders sales in the first half of this year, down from 43% during the same period in 2018, CNBC reports.

Home prices have been rising on existing homes as well as pressure continues from the increasing demand. The median existing-home price in July was $359,000, up nearly 18% compared to a year ago, according to the National Association of REALTORS®.

NAR released a report earlier this summer—Housing Is Critical Infrastructure: Social and Economic Benefits of Building More Housing—that called the state of America’s housing stock “dire.”

“There is a strong desire for homeownership across this country, but the lack of supply is preventing too many Americans from achieving that dream,” Lawrence Yun, NAR’s chief economist, said about the report’s findings. “It’s clear from the findings of this report and from the conditions we’ve observed in the market over the past few years that we’ll need to do something dramatic to close this gap.”

 

Source:  “America Is Short More Than 5 Million Homes, and Builders Can’t Make Up the Difference,” CNBC (Sept. 14, 2021)

Things To Do This weekend

Historic Downtown Art Walk

Treasure Coast Events

Date: Event occurs the third Friday of every month.

Time: 5:00 pm – 8:00 pm

Location: Treasure Coast Events IRC

Address: , , FL,

Price: Free

Category: Cultural

Every 3rd Friday, the rendezvous is at Downtown Fort Pierce, 5-8 PM! Join your local arts community on March 19 for the next Art Walk. Artists will line up the historic streets, and musicians and other performance artists will further entice you to visit art galleries and businesses. Plus, get discounts from participating retailers and much more. Mark your calendar! 3/19/21

https://artstlucie.org/event/march-art-walk

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Musical Bingo

Date: Wednesday September 8, 2021 through Wednesday December 29, 2021.

Time: 7:00 pm – 9:00 pm

Location: Tail-gator’s Brews & Grill

Address: 464 SW PSL BLVD #103

Price: Free to play

Category: Food / Beverage

Join Al and the Crew for some fun Musical Bingo every Wednesday night. Free to play, win Gift certificates.

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Run for the Treasure Pirate 5K run/walk

Date: Saturday September 18, 2021

Time: 8:00 am – 10:00 am

Location: Tradition Square

Address: 5427 STATELY OAKS STRE

Price: 30.00

Category: Sports

Ahoy Mateys! Join us on Saturday, September 18, beginning at 8 AM for the first annual Run for the Treasure Pirate 5K, a timed 5K run/walk beginning and ending at Tradition Square in Port St. Lucie. Dress like a pirate to enter our costume contest, or bring your favorite Pirate joke, to celebrate Talk Like a Pirate Day! It’s all to benefit Tradition Prep High School programs and brought to you by Tradition Prep, Mattamy Homes, the Tradition Community and Running Charities of the Treasure Coast.

Runners and walkers of all ages and abilities are welcome to join us on this fast, flat course, timed by MCM Timing, featuring plenty of pirate partying and excitement. Your $30 preregistration entry includes a souvenir tee-shirt, eye patch, finisher medal and goodie bag filled with pirate’s booty. Overall Female and Male awards, Masters Awards and age group awards in 5-year age group. Student rate for 18 and under only $20.

Covid-safe protocols may include rolling start, pre-packed snacks, sanitary precautions by volunteers and optional face covering pre-event and following, as necessary.

https://runsignup.com/Race/FL/PortStLucie/RunfortheTreasurePirate5K

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Outdoor Greet Market in Tradition

Date: Event occurs every Saturday of every month.

Time: 9:00 am – 1:00 pm

Address: 87 Village Pkwy, Port St. Lucie, 34987

Price: Free

Category: Food Special

Come for a nice stroll through the Tradition Green Market every Saturday from 9am to 1pm. Completely outdoors and perfect for social distancing.

Over 30 different vendors on one long strip with organic fruits, vegetables, mushrooms, fresh produce, raw local honey, free-range organic eggs, kombucha, fresh juices, baked goods, gluten-free bread, pastries, desserts, spices, marinades, jams, marmalades, plants, herbs, flowers, orchids, fresh local beef.

We also offer home decor, custom jewelry, fabric masks, clothes, shoes, custom and handmade products, arts and crafts, unique gifts, goods, services and so much more.

Our vendors and farmers rotate so we don’t always have the same products but we’ll always have something good every Saturday.

Brunch food trucks too!!

Come spend the morning with us, and support your local vendors and small business, we’ll have a nice gourmet coffee and warm breakfast waiting for you every Saturday from 9am to 1pm “Rain or Shine”

“Tradition Neighborhood Market “ is located in the parking lot across from Target and Michael’s in Tradition – Port St Lucie.

Free Parking-Free Parking lot and Pets are always welcome !!!

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2021 Autumn Jazz Workshop and Concert

Date: Saturday September 18, 2021

Time: 4:00 pm – 5:15 pm

Location: First Presbyterian Church of Vero Beach

Address: 520 Royal Palm Blvd

Price: Free

Category: Entertainment

‘Have Piano will Duel’ will present its annual workshop and concert on Saturday, September 18th, 2021 @ 4PM. Music Director Dr. Jacob Craig and accomplished trumpeter Paul Mc Call, will guide a quartet of jazz students in the morning sessions to experience and practice the skill of maximizing their performance with limited rehearsal time followed by a performance that afternoon. The performance is open to the public. There is a $10 suggested donation. The show will be held at First Presbyterian Church of Vero Beach, 520 Royal Palm Blvd.

For more information, please email us at havepianowillduel@gmail.com or call 772 538 1181.

www.verovinofestival.com

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Port St. Lucie Home Show

MIDFLORIDA Credit Union Event Center

Date: Saturday September 18, 2021 through Sunday September 19, 2021.

Time: All Day Event

Location: MIDFLORIDA Credit Union Event Center

Address: 9221 SE Event Center Pl, Port St. Lucie , FL, 34952

Price: FREE

Category: Expo

Here you will find professional exhibitors with fabulous ideas for consumers and information about the latest in products and services for home improvement. Visitors meet with professionals to make that next remodeling, renovation, landscaping, or decorating project a big success. For one weekend, you’ll find wall-to-wall displays and exhibits. Most importantly you will also have the opportunity to speak directly with experts and receive advice and inspiration.

Hours of Operation:

Saturday 10:00 a.m to 5:00 p.m. Sunday 10:00 a.m to 4:00 p.m.

For more information

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The COLORADO CRAWL

Date: Sunday September 19, 2021

Time: 3:30 pm – 7:00 pm

Location: Cafe Martier at the Postal Arcade

Address: 38 Seminole St. Stuart , FL 34994

Price: $8.50

Category: Drink Special

Hop along Colo. Ave. and side streets in Downtown Stuart enjoying DEALS, TASTES, SAMPLES AND SPECIALS at every stop – At your own pace! Enjoy the businesses of Colorado Ave. including Duffy’s, Sneaki Tiki and more. You MUST start at Cafe Martier (Come in the back door – walk down Seminole St. from the end of Colo. Ave and look for the BALLOONS). Enjoy your first drink / bite at Cafe Martier’s gorgeous vintage bar and fountain room, with HALF OFF cocktails/wines/beers. You MUST start your crawl between 3:30 and 5:05 PM. Crawl ends at 7 PM, with 5 or more great stops. You’ll receive the list of stops and details of the deals and offers when you check in at the Welcome table at Cafe Martier. Crawl at your own pace. Thank you for supporting small businesses and the hospitality industry, still struggling with the effects of C-19. $10 Cash includes a Free Gift, or pay $8.25 in advance on eventbrite. Social distancing encouraged. #StuartStrong #PubCrawl #Downtown#FunwithFriends #SupportSmallBiz #HospitalityIndustry

https://www.eventvesta.com/events/8408

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Fall Equinox Drum Circle

Date: Sunday September 19, 2021

Time: 6:00 pm – 8:00 pm

Location: Savannas Preserve State Park Main Entrance

Address: 2541 SE Walton Road

Price: $6/person

Category: Concert / Live Music

Celebrate the beginning of Fall with local drumming enthusiasts at the Fall Equinox Drum Circles hosted by the Savannas Preserve State Park and Kevin Beatkeeper!

Savannas Preserve State Park is going to host a drum circle on September 19, 2021 from 6 pm to 8 pm. Tickets can be pre-purchased online or can be purchased at the event entrance with exact cash only (no credit card or checks). Cost is $6 per person (infants and toddlers are free). Tickets are non-transferable and non-refundable.

The drum circle will take place out front of the Education Center of the Savannas Preserve State Park. You are encouraged to bring your own chair. You are welcome to bring your own drum or borrow an instrument during the event. You can also just come and enjoy the sights and sounds of the drums in this beautiful and natural Preserve.

Come celebrate the Fall Equinox with us at the Savannas Preserve State Park located at 2541 SE Walton Road, Port St Lucie, FL 34952. Questions about the event can be directed to the Education Center at 772-398-2779.

https://checkout.square.site/buy/KYDANQ27NIP6SKWLMW4SUMXV

Budget Stresses Weigh on Buyers

Nearly a third of buyers—30%—say that, to triumph in a competitive offer situation, they paid more than they anticipated on their home purchase. Of those who did, 32% paid $52,000 or more over the asking price, according to the Homebuyer Sentiment Index conducted by Qualia, a digital real estate closing platform. The survey reflects about 1,000 consumer attitudes over home buying.

Some buyers say they waived contingencies to gain a competitive edge. Nineteen percent of respondents said they removed inspections from the contract.

The index “shined a light on the risks consumers may be taking when they act too quickly without understanding the home purchase process or transaction costs involved,” the survey said.

Only one in five home buyers surveyed said they understood all of the documents they were signing at closing.

With the high competition lately, buyers report feeling stressed. Real estate closings are the most stressful and complicated part of the process, they reported. Forty-four percent of recent home buyers said they were surprised by higher-than-anticipated transaction costs.

More than half—55%—of future home buyers said they’d like to receive information face-to-face about the closing process prior to the closing date, and nearly half would like to receive information over a secure mobile app or web-based portal, according to Qualia’s survey.

 

Source: “Homebuyer Sentiment Index,” Qualia (Sept. 9, 2021)

LEGISLATIVE SOLUTION SEEN AS ‘FASTEST PATH’ TO ADDRESS HOUSING CRISIS

A new effort will offer homeownership opportunities for frontline workers and take the place of the Housing Funds for Housing ballot campaign.

Florida Realtors® and Broward, Palm Beaches & St. Lucie Realtors® announced that they are pursuing a legislative solution as the fastest way to address Florida’s affordable housing crisis, including new homeownership opportunities targeted at frontline workers. The decision was made following highly productive discussions with legislative leaders indicating strong support to address this crisis. This legislative relief will take the place of the Housing Funds for Housing ballot campaign.

Florida Realtors® and Broward, Palm Beaches & St. Lucie Realtors® will be working with legislative leaders to protect existing programs that provide housing for low-income and vulnerable Floridians, and create a new homeownership program that provides down payment and closing cost assistance for nurses, law enforcement, firefighters and other frontline professionals.

“Floridians made it known through their broad public support for the ballot initiative that workforce housing affordability must be a top priority, and this has opened the door for positive discussions in the Capitol. The legislative leadership has committed to working with us to find significant, immediate solutions to Florida’s workforce housing crisis,” says Florida Realtors® President Cheryl Lambert. “This crisis cannot wait. Every day, we hear about workers who are bearing the brunt of the pandemic who can’t afford a home. This approach will help bring homeownership within reach of Floridians much faster.”

Lambert says they will suspend their efforts to pursue a constitutional amendment, which would have taken much longer to provide relief to the average Floridian.

Florida Realtors® and Broward, Palm Beaches & St. Lucie Realtors® will work cooperatively with the Florida Legislature and other stakeholders to increase opportunities for Floridians to own their own homes, while preserving programs for rental assistance. The organization will also advocate for new funding to support the proposed frontline worker homeownership program. The goal is to begin working with the Florida Legislature immediately to ensure these issues receive attention during the 2022 legislative session, which begins in January.

“Front-line workers are the absolute foundation of our communities, something that has been made even more apparent during this pandemic. They are putting their lives and health on the line every day to benefit those around them, yet Florida has no homeownership program in place to ensure that these heroes can live in the communities where they work,” says Florida Realtors® CEO Margy Grant. “We’re pleased that legislative leaders recognize the importance of this issue and we look forward to working with them on meaningful solutions.”

Data analyzed by Florida Realtors® shows that front-line workers are at a large disadvantage when it comes to home affordability. For example, EMTs and paramedics would need to earn $25,000 more a year to afford a median-priced home in the state. Similarly, nurses would need to make $15,000 more a year and firefighters $10,000 more a year to afford the same home. Pursuing a legislative approach would provide targeted assistance to these frontline workers more immediately than a ballot initiative.

“During the pandemic, when ‘home’ took on a whole new meaning, Realtors® put forth unprecedented efforts to ensure that Floridians were given every opportunity for housing assistance. Advocacy comes in many forms – Florida Realtors® believes that protecting funding for housing and creating new options for homeownership for our front-line workers is a top priority,” says Florida Realtors® President-Elect Christina Pappas. “We are excited to work with the Legislature to advance new programs and improve existing ones to ensure that all Floridians, especially our front-line workers, have access to safe and attainable housing.”

State Sen. Kathleen Passidomo (R-Naples) said in a statement, “I have worked with the Florida Realtors® all summer – and for more than a decade – to strengthen affordable housing opportunities in Florida. We agree that affordable housing is absolutely essential to our state – for our families, for our workforce and for our economy. We must ensure that the state’s investment in affordable housing is spent judiciously, and that our first responders, health care workers, teachers and other critical professions are able to benefit from the opportunities available. I look forward to continuing our work with the Realtors®, property owners, affordable housing advocates and other key stakeholders across the state toward our shared mission of providing safe, accessible and affordable places for Floridians to live, work and raise a family.”

President Lambert added, “We have a long, proud history of advocating for Florida’s housing trust funds, and we believe working with the Legislature is the best way to make sure the Sadowski Housing Trust Funds help the most people as quickly as possible. We are a member-driven organization, and it was our members who made it possible for us to secure this positive outcome.”

 

Source: Florida Realtors®

5 FLORIDA METROS TOP 10 BUSIEST FOR COMMERCIAL REAL ESTATE

NAR ranked Port St. Lucie and West Palm Beach-Boca Raton-Delray Beach in top metros for strongest in the U.S. based on all commercial market segments and a range of indicators.

 

Florida metros are hot! According to NAR’s commercial metro market reports for 390 markets, Florida has five of the top ten markets with the strongest overall conditions in the apartment, office, industrial, retail, and hotel markets, according to NAR’s Commercial Market Conditions Index ranking. Here are the top 10 metros with the strongest market conditions in 2021 Q2:

• 
  

  Las Vegas

  
  


• 
  

  Cape Coral Fort-Myers

  
  


• 
  

  Port St. Lucie

  
  


• 
  

  Nashville

  
  


• 
  

  Raleigh

  
  


• 
  

  North Point-Sarasota-Bradenton

  
  


• 
  

  West Palm-Beach-Boca Raton-Delray Beach

  
  


• 
  

  Punta Gorda

  
  


• 
  

  Spokane-Spokane Valley

  
  


• 
  

  Olympia-Tumwater

  
  

 

Five Florida Metros With Strongest Commercial Conditions

Cape Coral. (Opens as PDF.) In 2020, 18,500 people moved into this metro area on Florida’s west coast area from other states on a net basis, second only to the Bradenton-Sarasota metro area. In the apartment market, 4,300 units were absorbed over the last 12 months, and apartments rents were up 20% y/y as of 2021 Q1 compared to 10% nationally. While major markets such as New York, San Francisco, DC, Los Angeles have lost occupancy, Cape Coral absorbed 195,000 sq. ft. of office space (about 1,300 people each occupying 150 sq. ft. of space) in the past 12 months. The demand for industrial space is high, with a net increase of 1.5 million sq. ft. of occupied space. In retail, Cape Coral absorbed a whopping 966,000 sq. ft. of space, which speaks of the robust demand for retail brick-and-mortar real estate. Hotel jobs also came back in the second quarter, with 1,400 jobs added.

Port St. Lucie. (Opens as PDF.) Located on Florida’s eastern coast, Port St. Lucie is another metro area where all the property sectors are outperforming the national figures. There is significant construction of industrial space going on that will add 1.85 million sq. ft. or 8% to the existing industrial inventory, the largest percent increase among the five Florida metro area with the strongest market conditions. The migration of people into the area has led to 534 more occupied apartment units in the past 12 months, and rents were up 20% year-over-year in 2021 Q2. In 2000, 11,300 people also moved to Port St. Lucie, although this is slightly lower than in Cape Coral on the western coast of Florida. In retail, 228,000 sq. ft. has also been absorbed in the past 12 months. Hotel jobs are coming back as well, with 2,000 net new jobs added compared to one year ago.

North Point-Bradenton-Sarasota. (Opens as PDF.) All commercial property sectors are also firing hotly in North Point-Bradenton-Sarasota, a metro area on Florida’s west coast north of Fort Myers-Cape Coral. Migration is a key driver of the demand for residential and commercial property, with 20,900 people moving into the area from other states, the largest among the five metros with the strongest commercial market conditions. The apartment market is the area’s strongest sector, with 4,672 apartment units absorbed on a net basis in the past 12 months, lifting rents by 20% as of 2021 Q2 on a year-over-year basis. There was 1.2 million sq. ft. of net occupied industrial space. There is a small net increase in office occupancy of 113,600 sq. ft., much smaller than Cape Coral-Fort Myers, a metro area South of the West coastline.

West Palm-Beach-Boca Raton-Delray Beach. (Opens as PDF.) Located along the eastern coastline a little north of Miami-Dade, this metro area has the highest net absorption of industrial space, with 1.9 million sq. ft. absorbed and with rents at $12.8/sq. ft. This is a bigger absorption than that in Cape Coral on the western coastline. The apartment market is also strong here, with 4,546 of net increase in apartment units in the past 12 months. The office market is making a sharp turnaround, from a 12-month negative absorption in 2021 Q1 to a positive net absorption in 2021 Q2.

Punta Gorda. (Opens as PDF.) This small metro area on the western coastline lies between the bigger metro areas of Cape Coral-Fort Myers in the South and North Point- Bradenton-Sarasota on the north. It is essentially a tourist and vacation destination with its many marinas and restaurants, but the demand for vacation homes and from retirees is bolstering the demand for apartment units in this area. There was a net increase in occupancy of 22 apartment units , with rents up 24%. A little over 100,000 sq. ft. of retail space was absorbed. There is construction of retail space underway and a gain of 600 new jobs in the hospitality sector.

Affordable Home Prices and Jobs Growth are Driving Migration in Florida

Driving Florida’s growth is the migration into the area. In 2020, 174,645 people moved into Florida from other states, as other states lost population, mainly New York (-203,893), California (-242,313), Illinois (-113,205), New Jersey (-42,623), Massachusetts (-32,164) , and Pennsylvania (-20,854). Florida beat out Texas ( 162,299), and Arizona (105,434), North Carolina (70,229), and South Carolina (53, 671) in attracting movers from other states.

Besides the sunny weather, migration is being driven by the still relatively affordable home prices and job creation, with the aid of a powerful tax incentives.

Relatively Affordable Home Prices

Home prices in Florida are relatively affordable compared to prices in other populous states when prices are compared on an absolute level or with how home prices compare to wages (price-to-wage income). As of August 2020, the median price of homes listed on Realtor.com in Florida was $ 395,000, which is about 7.7x the annualized average weekly wages. Compare this to the median listing price in New York ($569,999; 9.3x the annualized average weekly wages), or Washington ($ 575,000, 9x the annualized average weekly wage) , or California, the most unaffordable state ($732,000, 11x the annualized average weekly wage).

However, Florida is now more expensive than the other South region states of Texas ($349,900, 6.5x the annualized average weekly wages), North Carolina ($353,000; 7x the annualized average wage), South Carolina ($325,000; 6.8x the annualized average weekly wage) , or Georgia ($365,000; 7.4x the annualized average weekly wage). Florida can only keep up its competitiveness if housing supply increases so houses remain affordable.

Job Gains in Professional and Business Services

Florida is one a few states that have gained jobs in professional and business services since March 2020 as of July 2021, with 2,100 net new jobs, although Florida’s job gains are modest compared with other South states. Texas leads all states with highest job gains, at 44,000 net new jobs; North Carolina, with 18,400 jobs; Utah, 16,300; Tennessee, 15,900; and Georgia , with 15,400 jobs.

Tax Incentives to Attract Businesses

In addition to Florida’s strong domestic migration, another reason Florida’s commercial real estate market is booming is associated with the tax credits to attract businesses in the area. One such program is the Qualified Target Industry Tax Refund Program (QTI) which is “designed to encourage the creation of high-skill jobs and encourage the growth of corporate headquarters and other targeted industries. QTI provides a tax refund of $3,000 per new job created in Florida through the expansion of existing Florida businesses or the location of new ones. This increases to $6,000 per job within an Enterprise Zone or Rural County). A business is eligible for a $1,000 per job bonus if it pays over 150% average wage in the area, and a $2,000 per job bonus if over 200%. Projects must be supported by their community to the amount of 20% of the incentive. Another program is the Qualified Defense Contractors Tax Refund Program (QDC) – A tool to preserve and grow Florida’s high technology employment base, giving Florida companies a competitive edge as defense contractors consolidate defense contracts, acquire new contracts, or convert to commercial production. Pre-approved projects receive tax refunds of up to $5,000 per job created or saved in Florida. Projects must be supported by their community, which provides funding for 20% of the incentive.”2

Florida’s Commercial Outlook

Florida’s commercial outlook is bright because of the strong migration into the area which is driving the demand for multifamily properties, office space, and retail. The sustained growth in e-commerce will continue to also fuel the demand for industrial space in Florida’s coastal metro markets, both in the East and West coastlines.

 

Source: National Association of Realtors® & Florida Realtors®

FLORIDA RECEIVES 10 FAIR HOUSING GRANTS WORTH $2.4M

Of that money, almost $1.5M goes to four groups under HUD’s Private Enforcement Initiative to investigate and litigate complaints filed under the Fair Housing Act.

 

The U.S. Department of Housing and Urban Development (HUD) awarded $47.4 million to fair housing organizations across the country under its Fair Housing Initiatives Program (FHIP), with $2,371,333 going to organizations in Florida.

The grants support 120 national and local fair housing organizations working to address violations of the Fair Housing Act, and part of the funding allows grantees to conduct fair-housing investigations, test to identify discrimination in the rental and sales markets, and if discrimination is found, file fair housing complaints with HUD.

“The fair housing groups’ HUD funds are a critical piece of combatting housing discrimination,” said Jeanine Worden, HUD’s acting assistant secretary for fair housing and equal opportunity.

 

HUD grant categories

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  Private Enforcement Initiative (PEI) – $34,556,620 is being awarded to organizations that conduct intake and testing, and that investigate and litigate fair housing complaints under the Fair Housing Act.

  
  


• 
  

  Education and Outreach Initiative (EOI) – $10,747,218 is being awarded to organizations that educate the public and housing providers about the Fair Housing Act. These grants will also support state and local organizations that enhance fair housing laws that are substantially equivalent to the Fair Housing Act.

  
  


• 
  

  Fair Housing Organizations Initiative (FHOI) – $2,156,183 is being awarded to help build the capacity and effectiveness of non-profit fair housing organizations, particularly organizations that focus on the rights and needs of underserved populations, including rural and immigrant populations.

  
  

 

Florida agencies funded to conduct fair housing investigations

• 
  

  Housing Opportunities Project for Excellence (HOPE) Inc.: $375,000

  
  


• 
  

  Jacksonville Area Legal Aid Inc.: $371,333

  
  


• 
  

  Community Legal Services of Mid-Florida Inc.: $375,000

  
  


• 
  

  Legal Aid Society of Palm Beach County Inc.: $375,000

  
  

 

Florida agencies funded to create education and outreach programs

• 
  

  Florida City of Tampa: $125,000

  
  


• 
  

  Florida Legal Services Inc.: $125,000

  
  


• 
  

  Housing Opportunities Project for Excellence (HOPE) Inc.: $125,000

  
  


• 
  

  Jacksonville Area Legal Aid Inc.: $125,000

  
  


• 
  

  Legal Aid Society of Palm Beach County Inc.: $125,000

  
  

 

In addition, Florida Legal Services Inc. will receive $250,000 under the FHOI program.

Source: Florida Realtors®

Treasure Coast Weekend Happenings

United Way September 11 Walk and Remembrance Ceremony

Date: Saturday September 11, 2021

Time: 7:45 am – 10:00 am

Location: Jock Leighton Park

Address: 3755 SW Mapp Rd

Price: Free

Category: Community

The AmeriCorps Seniors program of United Way of Martin County is hosting a 9/11 remembrance ceremony to commemorate the 20th anniversary of the September 11, 2001 terror attacks that took the lives of 2,977 men, women and children in New York City, Arlington, Va. and near Shanksville, Pa. Twenty years after the attacks that changed our world forever, Martin County residents will unite as a symbol of resilience in the face of unimaginable tragedy.

The ceremony will be held at Jock Leighton Park in Palm City. Starting at 7:45 a.m. AmeriCorps Seniors volunteers will be handing out 2,977 American flags and asking participants to pay it forward to honor the lives lost on 9/11. The official program begins at 8:30 a.m. with remarks from Martin County Commissioner Ed Ciampi, followed by a 9/11 remembrance walk across the Veterans Memorial Bridge led by Martin County Fire Rescue.

Out of the sorrow of 9/11 came a commitment to give back. At this years 9/11 remembrance ceremony, we encourage individuals to pledge to help a person, our community or our nation through an act of kindness or service, said United Way of Martin County Director of AmeriCorps Seniors Kathleen Stacey. Participants of all ages and activity levels are encouraged to attend.

The OneBlood Big Red Bus will be collecting donations and the Florida Department of Health in Martin County will be onsite to provide free COVID-19 vaccinations.

The event is free and open to the public. For more information, visit www.UnitedWayMartin.org/911. Attendees are asked to follow CDC guidelines that are in effect on Sept. 11.

September 11 Remembrance Ceremony

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The Jazz Market

Fort Pierce Jazz & Blues Society

Date: Event occurs every Saturday of every month.

Time: 8:00 am – 1:00 pm

Location: Historic Downtown on the Waterfront

Address: 200 N Indian River Dr

Category: Festival

Every Saturday, the Fort Pierce Jazz & Blues Society hosts a Jazz Market “featuring creative arts & crafts” in Historic Downtown Fort Pierce on the waterfront of the Indian River. Original hand made crafts, stained glass, Highwaymen paintings, hand-painted glassware and much, more are available for purchase. Funds raised support education programs and local scholarships.

The Fort Pierce Jazz & Blues Society Jazz Market is a year-round event.

The Jazz Market summer hours are 8:00 a.m. – 1:00 p.m.

Although we enjoy promoting our local Fort Pierce and St. Lucie County resident artists and crafters, our market is open to all crafters who wish to participate, given space available and our Market Managers discretion. If you are interested in displaying or selling your items, download the The Jazz Market Guidelines and Vendor Application.

If you are an interested new vendor, applications are now being accepted.

Print and fill out an application and return it with pictures of your items to:

P.O. Box 1086, Fort Pierce, FL 34954-1086

For more information, please email: JazzMarket@jazzsociety.org

Fort Pierce Jazz & Blues Society

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9/11 Remembrance Ceremony

MIDFLORIDA Credit Union Event Center

Date: Saturday September 11, 2021

Time: 8:30 am

Location: MIDFLORIDA Credit Union Event Center

Address: 9221 SE Event Center Pl, Port St. Lucie , FL, 34952

Price: Free

Category: Arts / Exhibits

The City of Port St. Lucie and the MIDFLORIDA Event Center invite the public to attend its annual 9/11 Remembrance Ceremony. The ceremony will begin at 8:30 a.m. on Saturday, September 11, 2021, adjacent to the 9/11 monument on the Front Plaza of the Event Center.

The St. Lucie County Fire District, Port St. Lucie Police Department, St. Lucie County Sheriffs Office and St. Lucie Fire District Honor Guard Pipes and Drums Band will assist with the ceremonies.

https://www.cityofpsl.com/Home/Components/Calendar/Event/11341/1944

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Spirit Fest – Metaphysical & Holistic Fair

MIDFLORIDA Credit Union Event Center

Date: Saturday September 11, 2021 through Sunday September 12, 2021.

Time: 10:00 am – 6:00 pm

Location: MIDFLORIDA Credit Union Event Center

Address: 9221 SE Event Center Pl, Port St. Lucie , FL, 34952

Price: 1-day Admission $10, 2-day Admission $15

Category: Festival

Sanctuary Productions presents the LARGEST metaphysical fair on the Treasure Coast on Saturday, Sept. 11 and Sunday, Sept. 12!

Over 70 booths with vendors, practitioners, readers, artists, demonstrations, and MORE! You’ll find crystals, jewelry, divination tools, holistic health specialties and natural products! Performances will be happening all day with special guests and workshops.

Tickets are on sale now, get yours today! Visit SpiritFestFL.com!

Hours of operation:

Saturday 10 a.m. – 6 p.m. | Sunday 10 a.m. – 6 p.m.

Buy tickets

MIDFLORIDA Credit Union Event Center

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Atlantic City Boys

Date: Saturday September 11, 2021

Time: 8:00 pm – 10:00 pm

Location: Town Hall Event Center of PSL

Address: 10799 SW Civic Lucie Port St. Lucie, Florida 34987

Price: $36.05

Category: Concert / Live Music

The Atlantic City Boys are four dynamic lead singers who have wowed audiences in Las Vegas, Walt Disney World and, of course, Atlantic City! Now they lend their world-class vocals to the rock-n-roll harmonies of the 60s, singing the hits of The Drifters, The Beach Boys and Frankie Valli and the Four Seasons.

For years, one of the most popular vocal groups worldwide has been Frankie Valli and the Four Seasons. The story of this group has even been made into an exciting Broadway play called Jersey Boys.

The Atlantic City Boys show is a tribute to them and several of the other classic vocal groups. The show is presented with personality, charm and great vocal talent.

https://www.eventvesta.com/events/6822

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International Coastal Cleanup

Date: Sunday September 12, 2021

Time: 9:00 am – 12:00 pm

Location: Wabasso Causeway Park

Address: 1820 Wabasso Beach Rd

Category: Other

General registration will be opening on August 1st, 2021. Volunteers are welcome to register for the 36th Annual International Coastal Cleanup in Indian River County. We are looking for boaters, paddlers and walkers to remove litter pollution from our shorelines and waterways. If you are willing to lead one of locations on September 18th as a Site Captain, please contact Ester@KeepIndianRiverBeautiful.org. Your help is essential to ensure our wildlife stays safe and our unique and beautiful environment is pristine.

https://www.keepindianriverbeautiful.org/icc

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Folk Jam and Song Circle

Date: Sunday September 12, 2021

Time: 3:00 pm – 4:30 pm

Address: 2541 SE. Walton Road

Price: $3.00 per vehicle

Category: Arts / Exhibits

Enjoy the wonder of old-fashioned porch music right here at Savannas Preserve State Park! Pull up a chair and listen or bring an instrument and join in the jam. The next Song Circle will be on Sunday, August 8, 2021 from 3 pm to 4:30 pm.

The song circle will take place outside under a pavilion near the Education Center. This program is free with paid park admission of $3 per vehicle (with up to 8 people). Admission can be paid via 3 different methods: 1) in person with exact cash 2) on-site using your phone, the posted QR Code and a credit card or 3) prior to arrival online. A porta-potty is available for use. No registration required. The Savannas Preserve State Park is located at 2541 SE Walton Road, Port St Lucie.

https://www.floridastateparks.org/parks-and-trails/savannas-preserve-state-park

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What if Your Sellers Have Nowhere to Go?

For sellers, it’s more difficult than ever to get the timing right between the sale of their current home and the purchase of their next property. Low inventory, high prices, and quick transactions work against them as buyers, so many sellers may need extra time to figure out their next move. One solution is to ask for a leaseback agreement, which allows the seller to stay put and rent the property from the buyer after the sale. Such an agreement is typically meant for a short period of time—a matter of days or a week. But in this feverish market, some agreements are stretching to a few weeks or even months, which can pose problems if they’re not structured to account for various risks, says Deanne Rymarowicz, associate counsel at the National Association of REALTORS®.

Some sellers are delaying their search for a new home until they’ve sold to avoid the need for contingencies, which can undermine a person’s competitive edge in today’s market, says Michael “Smit” Smith, C2EX, RENE, a sales associate with Windermere Real Estate who is licensed in Arizona and Washington. Of course, that strategy also can land sellers in housing limbo. Sellers often have little time to organize a move, as the typical home sold in just 17 days in June, according to NAR data.

Leasebacks, also known as post-possession occupancy agreements, not only help sellers but also can give buyers an advantage in bidding wars. “In this market, buyers are putting these in to sweeten their offers in a multiple-offer situation,” Rymarowicz says. “Sellers are selling their homes so quickly that they may not have even started packing.”

But—and This Is a Big ‘BUT’…

These agreements turn home buyers into landlords and sellers into tenants. Giving a seller a few extra days to move out is fairly common. “But it’s when we’re talking about more than a few days that there’s a lot more to consider, like any potential risk of loss, insurance, and rent,” Rymarowicz says. For example, should the buyer charge a security deposit? Do any state or local landlord rules apply—particularly if the seller-turned-renter is staying longer than 30 days? Here are some tips to keep in mind when your client needs to enter into a post-closing occupancy agreement.

• Put everything in writing. Buyers shouldn’t let sellers retain possession of a home for any amount of time without an agreement in place that lays out all the conditions. Your clients may need a short-term lease agreement in place while drafting a longer-term contract if the seller plans to stay for 30 days or more, Rymarowicz says. Leaseback agreements should spell out the length of the rental period; the amount of rent per day, week, or month, if applicable; penalties for late payments; who pays for utilities; the buyer’s right to access the property; and the seller’s duties to maintain the home while they’re living there. The agreement may stipulate that the buyer has the right to inspect the property and ensure no damage was done.


• Double-check insurance coverage. An insurance agent can help clear up any confusion about who’s responsible for what if the home is damaged during the leaseback period. For example, who has to pay if the water heater breaks or a tree limb falls on the roof? The responsibility likely will fall on the buyer as the new homeowner. However, the seller isn’t off the hook. Once becoming a tenant, the seller’s previous homeowner’s insurance policy no longer applies, Rymarowicz says. “The seller will need to talk to an insurance agent to discuss converting it to a renter’s policy to ensure their possessions are still covered,” she adds. Also, buyers should ensure that there are no gaps in their insurance policy during the leaseback period. Otherwise, they’ll need to carry supplemental insurance, like fire coverage.


• Charge a deposit. The buyer may want to charge a refundable security deposit just like a landlord would. Damage to walls, for example, can occur when the seller finally moves out, and a deposit can offer protection against any losses. Consider whether the security deposit should be held in escrow or released to the buyer at closing. A security deposit can also send a message to the seller: This isn’t your home anymore, and you’ll be on the hook for damages like any tenant would.


• Get the lender’s approval. Many lenders won’t accept leaseback agreements that are longer than 60 days, at which point the home can be classified as an investment property instead of a primary residence. Investment properties come with different loan terms—and, typically, a higher interest rate. Make a lender aware of any leaseback arrangements up front to make sure the buyer’s loan won’t be put in jeopardy.


• Know the risks. Buyers must have safeguards in case a seller refuses to leave at the end of the leaseback period, though this situation rarely occurs, real estate pros say. Still, it’s increasingly a possibility in an environment where many people are taking advantage of eviction moratoriums, Smith warns. With this in mind, buyers may ask sellers to waive their rights as tenants under current COVID-19 protections. As another safeguard, buyers may hold a portion of the home sale amount in escrow and release it to the sellers once they finally move out.


• Consult an attorney. A real estate attorney can review any post-possession occupancy agreements, particularly those that stretch beyond a few days, to help minimize the risks. “The longer [the time period] these agreements are structured for, the more both parties will need to think about avoiding potential issues that could arise,” Rymarowicz says.

 

Melissa Dittmann Tracey – Contributing Editor, Melissa Dittmann Tracey is a contributing editor for REALTOR® Magazine. She can be reached at mtracey@nar.realtor.