Florida Bill Could Be A Blow To Housing Prices

Dated: 02/09/2017

Views: 665

In 2016, Governor Scott signed a bill that would allow students to transfer to any school within the student’s respective county, regardless of the the district they live in. The bill becoming law this year could virtually eliminate school zoning and open up schools to students from outside of the school’s district. While this may be great for students in lesser rated schools giving them a chance to attend A or B rated schools, it could be a near-fatal blow to home prices in what once were highly-rated school districts.

The bill was touted as a freedom of choice for parents and students to choose which schools they would be able to enroll in. The backlash of such freedom could come at a price though – housing prices to be exact. Many families concerned with their children attending highly-rated schools purchased homes specifically in the communities those schools reside in. If the district lines no longer determine which resident goes to which school, those neighborhoods in higher rated schools may not be as valuable to the next buyer of that home. This could have an adverse affect on its marketability and therefore, its market price. Of course the the higher the school is rated, the more desirable the neighborhood. Those that can afford to buy homes in highly desirable areas, are willing to pay more for a home based on the school district alone. Now that school district lines could become a thing of the past, parents are concerned that the homes they’ve recently purchased or are thinking about purchasing in those areas are going to see a drop it value.

According to an article in the Orlando Sentinel, Orange County Public Schools are only allowing enrollment from students outside their home district in about 15% of its 188 schools. While the County’s officials are holding off on completely rolling out the new legislation, parents are worried it may come to the rest of the county soon. Are the days of boasting a home’s assigned school a thing of the past? How will home prices be changed? These are the topics of discussion in and around Orlando these days.

1 comments in this topic

  • Posted by Scottj Lewis
    When it comes to mortgage rejections, Fla. is No. 1   ORLANDO, Fla. – March 3, 2017 – What happens after a home sale closes and the new buyer has keys in hand? In the days and months that follow, how do most new homebuyers feel? To determine new homeowners’ satisfaction, NerdWallet created its first Home Buyer Reality Report. It looked at owner satisfaction with the buying and lending process, mortgage preapproval, borrowers who failed to make it to closing and successful buyers’ regrets after they sign their final document. Mortgage failures Florida stood out in the study for mortgage failures: Almost 1 in 5 mortgage applications (17.1 percent) get turned down, making it the top state in the study for frustrated mortgage applicants. West Virginia ranked second with 15.7 percent of mortgage applicants failing to get a loan. On the flipside, Minnesota had the lowest rate of mortgage rejection at 7.7 percent, followed by Alaska with 8.2 percent. Buying a home – and finding the right mortgage – is a journey that can test your grit and resolve. If you haven’t done the proper research and you don’t know what to expect from the process, it can be even more stressful. Your credit history, income, assets and savings will be under scrutiny, and what you don’t know about mortgages can hurt you. Nationwide, 6 percent of survey respondents said they were denied a loan: 50 percent on their first try and 25 percent more than once: 79% were told why their mortgage was denied 41% thought the denial unfair 33% thought it was embarrassing 35% said it pushed them to improve their financial situation 52% denied to a high debt-to-income ratio; 39% credit history/score and 25% insufficient income “Borrowers who don’t understand the mortgage process or don’t know enough about their own credit history tend to hit obstacles or be rejected when applying for mortgages,” says Tim Manni, mortgage expert at NerdWallet. “They also tend to feel regret after their deal is done, even if they succeeded in buying a home. That tells me borrowers aren’t doing enough research – on themselves or the mortgage process – before applying for a home loan.” Other key findings 41% of mortgage applicants felt didn’t know all their loan options during the process 49% said they would have done something differently 28% felt they weren’t a priority to their mortgage professional 42% said the homebuying process was: stressful, complicated (32%) or intimidating (21%) 41% said the process was manageable; 30% said it was rewarding 27% of millennials got a mortgage rate they thought they could afford when purchasing 11% of millennials didn’t feel financially secure after purchasing 26% of Gen X applicants said the mortgage experience wasn’t positive compared to millennials, even though they were just as likely to be approved 25% of millennials, 20% of Gen X and 10% of baby boomers were approved at a higher interest rate than expected 57% of millennials, 61% of Gen X and 38% of boomer homeowners had regrets, saying they would do things differently the next time around   © 2017 Florida Realtors

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