Orlando Real Estate and News

What Months are Best to Buy Orlando Real Estate?

2009-11-24T14:31:00.001-05:00

November, December and January….trust me on that.

November starts the Holiday season, than the December Christmas Frenzy, followed by January when the guests have left, the spending and overeating is finished and now normal life is coming back into focus…

The last thing that is on anyone’s mind is buying a new home and that makes sellers nervous…it’s the end of the year, trading in the car looks good, the kids want Christmas presents, Tax expenses are calculated and the cost of holding a vacant house, or juggling two mortgages is now a bigger burden… particularly since homebuyers are scarce.

It is a great time to negotiate, it is a great time to negotiate, and it is a great time to negotiate…

Sellers will listen….new attitude and all.

ALSO, lets not forget the brand new homes sitting in the inventory that the New construction builders want to get “off the books” as a debt they are carrying. Excess inventory is costly and builders want to look their best for the year-end audits. Bargains there, too, if you bring your realtor with you.

So, if you want to house hunt while the listing price is really negotiable, call us.

Eve

Not All Title Companies Are The Same

2009-11-24T14:00:00.002-05:00

We previously wrote an article why its important for a buyer to pay owners title insurance and select a competent title company. Sometimes, that becomes a problem in negotiations if the seller wants to control the title work, or listing agent or brokerage has an aflliated business arrangement or receives illegal kick backs from the title company.

As mentioned, seller title companies with bank foreclosures are some of the worst in service and competency. They have asked the buyer to sign very unusual documents, for instance, they wanted the buyers to sign a 3 page document stating the title company had limited liability when holding the escrow check or buyers money. So basically, if they lose the money they are not responsible.

Also, at a closing a buyer had to review and sign title company disclosures, indicating that the closing statement they are signing is not final as "not approved by seller". Typically, when buyer gets to closing table, signs documents, and provides their check means all parties have reviewed the closing statement with finalized charges.

And for the real shock, the title company presents illegible lien search documents and buyers had to sign a disclosure indicating that title company will NOT interpret the lien search. This should be interpreted by all title companies, buyer is not qualified to do this especially at the closing table.

So if a buyer uses the seller chosen title company, it may be a good idea to have an attorney review the title work process with checks and balances along the way in the event the title company does provide full service and conduct a through job. This extra cost would be valued added for such as large purchase.

Blah, Blah, Blah…

2009-11-23T16:18:00.000-05:00

I showed a property last week where the Listing Agent had to meet us to open the door. I typically do not mind that, as sometimes the listing agent knows something about the house that is not readily visible.

This time the listing agent also wanted to “show” the house to the buyers, which I was OK with too. Then the agent spent the next 15 minutes trying to convince the buyers that this is the house for them and they needed to buy it…that was not cool.

“Showing a house” does not mean beating a buyer into submission. If the goal was to show the house in the most favorable light…it backfired.

You cannot “talk” buyers into wanting something that they do not really do not care for as that only creates pressure and the desire to run away. If they do not like it, that should be OK…falling in love cannot be forced…

For no pressure home buying and the opportunity to decide in peace,

call me…Eve 407-539-1053

Have Christmas Paid for by Lennar Homes

2009-11-13T11:55:00.001-05:00

Typically the best time to buy new construction homes here in Orlando is at the end of the fiscal year. In effort, to clear their inventory and strengthen the final year enf finanicals, many builders offer fantastic pricing and incentives. For example, Lennar Homes fiscal year is ending on November 30, 2009 and offering $5000 gift card for every closing before November 30, 2009. So in turn you get a great home, tax credit, and Christmas gifts paid for, all because you timed it right to buy a home.

In Central Florida, new construction properties, such as single family homes are starting in low to mid $200,000's or $250,000+/-, depending on area and size of home needed. New construction townhomes are the more prevalent choice for builders with more choices in locations and starting $160,000's to $190,000's.

We sell more new construction properties during the last quarter of the year. Do not buy new construction without a buyers agent representing you from contract to closing, they know what to ask for, know builder contracts, best upgrades, and represent the buyers interests, not the builder. Despite what many buyers think, there is no cost to utilize buyer agent services and has no impact on the purchase price on a home if buyers are represented or not. If you are looking for new construction properties, please contact Buyers Broker of Florida.

October Market Statistics for Orlando Real Estate

2009-11-10T15:42:00.000-05:00

Many positive things occuring in Orlando Real Estate with normalizing of the market occuring. If you are thinking of buying a home and thinking prices are still dropping, think again, if you wait you will loose out. October 2009 Pending Sales up 54.72% from October 2008. October 2009 most pending sales this year at 9,050. October condo sales up 236.89% from October 2008. Median price of a home up $130,000 (4%) from $125,000 September 2009. And most of all our inventory of home is decreasing representing a 7.14 month supply (6 months is normal). With tax credit extension available for both first time home buyers and current home owners. It will be no time at all clearing out of inventory will occur. However, it is predicated that another wave of short sales and bank owned properties will occur as a result of the unemployment rate, rather than bad loans.

Here is the market statistics produced by Orlando Regional Realtor Association for October 2009.

Average Mortgage Rate: 5.02%
Inventory: 15,743
New Listing: 4,165
New Contracts: 3,864
Under Contract: 9,050
Back on Market: 857
Expired: 924
Withdrawn: 646
Sales Closed: 2,206
Average Days on Market: 98

For historical months, please click here.

Move Up Buyers Gain; Tax Credit Available

2009-11-09T13:07:00.004-05:00

Great news to all primary residence buyers, President Obama signed a bill that allows first time home buyers to get up to $8000 tax credit, and repeat buyers up to $6500 when they have a contract on a home before April 30, 2010. Orlando area have great buys to be purchased and interest rates still history low, if you are considering a purchase, it is a great time to buy!

First Time Home Buyers

You may be eligible for 10% of the purchase price up to $8000.
Contract has to be in place by April 30, 2010 with a closing before June 30, 2010
Effective December 1, 2009 income limit will be raised to $125,000 for singles and $225,000 for married couple. Right now it is $75,000 for single and $150,000 for married couple.
Effective now the maximum home value cannot exceed $800,000.
First Time Home Buyers can use an interest free bridge loan to access the tax credit before they complete the home purchase. This money may be used toward downpayment or closing costs. The State Housing Initiatives Partnership Program (SHIP) is handling the distribution. For interested buyers, they should contact SHIP.

Repeat or Current Home Owners

Now eligible for up to $6500 tax credit. Current home owner must have owned and used its current home for 5 consecutive years out of the last eight.
Same time frame and deadlines for contract and maximum home value as first time home buyers.
Long Time Florida Home Owners can take advantage of property tax portability.

Why Buyers Should Choose the Title Company

2009-11-04T11:51:00.007-05:00

In the State of Florida, who ever pays for owners title policy can select the title company. Paying owners title policy is a negotiable item in the contract. In the Central Florida area it is customary for the seller to pay for owners title insurance and seller chooses. There are vary degrees of quality & competency of title companies from excellent to poor. If the seller chooses, buyer is not knowledgeable of quality of the title company or title insurance carrier. We find discount title companies affliated with REO properties or short sale facilitating companies are some of the worst. We believe if the buyer can negotiate to pay for their owner title policy and select a title company that is competent, through, detailed oriented, problem solving and have an A rated title insurance carrier, it is always in the buyers best interest. Here are some things a buyers should consider.

Financial strength of the agency and underwriter is a major importance to the buyer. We have seen many REO affliated title companies use B, C rated underwriting companies. Legitimate business savy title companies will not comingle escrow money with the companies operating money, so if they go out of business your money is protected.
The buyer will ultimately be the one to have to deal with the issue of a claim, not the seller. If someone makes a title claim it important to have a financial strong title insurance carrier. The seller no longer cares, they have the buyers money and have moved on.
Willingness of the agency/underwriter to acknowledge responsibility for the error. We have had a title company not request estoppel letter on a property and title company took a guess, and cost the buyer thousands of dollars after closing. Requesting an estoppel letter is title work "101". And yes, the title company did not correct or acknowledge any wrong doing.
Timely settling of the claim. When you have a problem, you want to make sure the title company and title insurance carrier representing all your best interests timely.
Amount of Errors and Omissions insurance carried by both.
The Buyer will not be able to sell the property until they have clear title. Problems with incorrect title work will be discovered when buyers are going to refinance or sell their home. Those would be the worst times to deal with correcting a title problems, as you jeopardize buyers for the home or best interest rates for refiance.
It is buyer's lender who will be working closely with the title company to bring the transaction to closing. Buyers lender is a major component to get a buyer to closing and working with a good title company who will be proactive to ensure closing is done correctly and on time.

If a buyer cannot negotiate to pay for owners title insurance and select a competent title company we recommend the buyer hire an attorney to fully represent them through the process of title work or at least review the closing package. We are in a different real estate enviroment than years ago.

Expansion of First Time Home Buyer Tax Credit

2009-10-27T14:30:00.005-05:00

The senate is expected to vote this week to expand the tax credit until June 2010 or March 2010 with $2000 decreasing each quarter in 2010. In addition expanding to all home buyers. The first time home buyer credit has fueled the housing market with many proponents in support to continue its benefits.

What should your property offer be?

2009-10-22T09:14:00.001-05:00

That just depends…on many factors…all which need to be considered.

1. How long has the property been on the market? Is it stale or a hot new property? The longer a property is on the market, the more motivated the seller will be.

2. Who is selling the property? Is it someone that is willing to wait for the target price, or is it a seller that needs to move? A job transfer, divorce or a bank owned property will work in favor of the buyer.

3. Location. Is the property in a prime location, in a desirable neighborhood or out in the woods off a dirt road? If the location is special, the price will be firmer, if the location is off the beaten path, there will be less demand for the property.

4. What is the competition? How good does it look? Is this a special property with a lot of interest in an area of few homes on the market? Or is it on “foreclosure row” with more homes just like it?

5. Last but not least, how is it priced? Is it overpriced, or a deal at full price? If there are multiple offers on the property, you have to give it your best shot with “highest and best” offer and keep your requests simple.

We are experts at sorting out the value and, providing you with all the information needed to make a good decision.

What goes into a Short-Sale package?

2009-10-20T14:38:00.004-05:00

1. Hardship letter: the purpose of this letter is to tell the lender your “story” of why you have missed payments and why you cannot continue to pay. It should be handwritten and come from the heart.

2. Financial disclosure: Like a loan application, except you are not applying for a loan…you are showing the lender that you cannot afford the loan that you have, because your expenses are greater than your income.

3. Copy of purchase contract. Most banks will not talk to you without an offer on your property.

4. Proof of income for past 2 pay periods.

5. Copies of last 2 bank statements.

6. Copies of last 2 years complete tax returns with
W-2’s and 1099’s.

7. HUD 1 prepared by a title company showing the cost of closing, estimated expenses and net to bank.

Most banks will not speak to a borrower about a short sale unless they are behind in mortgage payments and have a contract on their home. Submitting a short-sale package does not guarantee the bank will agree to accept a short pay-off.

Is paying $10,000 over full price enough?

2009-10-20T14:36:00.001-05:00

Maybe not. If the property looks good and is priced right, there will be multiple offers and some will be above full price. Guaranteed.

Don’t listen to the media “doom and gloom” about the glut of foreclosures and the prices falling…it isn’t so everywhere.

If the area is nice and the property is decent, paying $10,000 above list price will probably not be enough to buy the property. First time homebuyers are buying and there is no shortage of investors trying to snap up the good deals…with cash.

Don’t let the sticker price fool you!

Time to Buy is now for Home Buyer Tax Credit

2009-10-20T14:14:00.000-05:00

#1 Reason short sales do not close…

2009-10-13T19:16:00.001-05:00

The paperwork submitted to the lender was not packaged adequately.

Here is the deal…the mitigators for the bank are overwhelmed, overworked and underpaid. Many carry 200-300 files; way too much for even a super worker.

Some banks are now paying incentives to employees for closed files…so what files do you think they will work on? Certainly not the ones that are incomplete, missing information, illegible, or unidentified…those files have a place of their own… at the bottom of the pile or “out of sight”.

There are rules that need to be followed and if something is missing, the short sale package is stalled many times “forever” and you never hear from the bank. The property may just go into foreclosure.

Coming next: “What goes into a short-sale package?”

Orlando Real Estate September Statistics

2009-10-13T09:48:00.003-05:00

Orlando Regional Realtor Association compiles monthly statistics on the sale active for the Metro Orlando Area. Sales pace is up, and inventory slow dewindling. Here is more about September 2009.

Current Inventory: 15,967
New Listings: 4,030
Average Days on Market: 97
Average Mortgage Rate: 5.09%
Orlando home sales in September are up 54.30 percent over September 2008; year-to-dates sales are up 50.69.
Normal sales made up 44.44 percent of sales in September, while 55.56 percent were either bank-owned or distressed.
There are 8,790 pending sales, of which 3,858 contracts were filed in the month of September alone (the most in a single month this year). There were 1,908 new contracts filed in September 2008.
Condo sales increased by 242.64 percent. Duplex, town home, and villa sales increased by 89.91 percent.
The overall median price of all existing homes sold declined 2.34 percent to $125,000 in September, from the $128,000 recorded in August. The median price is a decrease of 31.32 percent compared to September 2008 ($181,995).
The median price for “normal” sales is $175,450. The median price for bank-owned sales is $79,000, and the median price for distressed sales is $126,000.
Affordability improved in September to 202.03 percent as a result in part of in the month’s decrease in median price. There are 8,805 homes in Orange and Seminole counties currently listed in the MLS that are considered affordable ($268,697 or less).
The inventory level decreased by 394 homes in September and is 35.33 percent below the level in September 2008. There is a 7.42-month supply.
Year-to-date, Lake County sales are up 30.07 percent above 2008; Orange County is up 72.96; Osceola County is up 109.37; and Seminole County is up 19.14 percent.

For historical months, please click here.

“Walk thru” prior to closing…

2009-10-07T18:22:00.004-05:00

Typically done on the day of closing, the buyer (or agent) will check the property again, to make sure that everything is in the same condition as when the buyer bought the property.

BIG misconception as to what “walk thru” really means.

Many agents think that it is just to see that the house is standing or that the kitchen is still there. Not true,…it is much more than that. If all the appliances were working during the home inspections, then they should all be working on the day of closing. The walk-thru is to check to make sure that nothing has changed…

The Florida contract specifies that the seller is to have the utilities on for the “walk-thru”…the electric to check the appliances and A/C unit and water to make sure that the plumbing is still working and the septic did not collapse.

Do not let anyone minimize the importance…we have experienced lightening damaging the appliances, sellers remove the washer that was to stay with the property, new roof leaks, good fans replaced with cheaper ones, missing carpet, broken windows and more…

Buying “AS-IS”...the Real Story

2009-10-07T18:20:00.000-05:00

There are many misconceptions about what an “as-is” contract. It does NOT mean than you have to buy a property “as-it-is” with all its problems.

You still have the right to do inspections….for anything that you wish, as long as you do not destroy the property.

After inspections you have the right to say:
a.) OK, I will take the property as it is.
b.) No thank you, I do not want it.
c.) Maybe, if you lower the price or fix the problem.

Buyers have the right to re-negotiate the contract after inspections. If the seller agrees to fix certain things, then the contract is no longer “as is” because the seller now made an agreement to repair, which they are obligated to do.

On the other hand, if your contract is written to protect you and the property has deficiencies that you cannot accept, you can just walk away and get your deposited monies back.

You as a homebuyer have many rights, the problem is that you probably do not know what they are…we know your rights and will be glad to tell you.

Just ask me,
Eve

WHY 50% of SHORTSALES DON’T SELL….

2009-09-28T17:49:00.001-05:00

Wow, that is a loaded question but here are a few answers:

The property may go into foreclosure before the short sale is completed. The banks “short sale” department does not communicate with the foreclosure department, so while you are waiting for a response on the short sale, the property is being auctioned off in a foreclosure at the courthouse steps. Yes, that does happen.

1) The seller may file bankruptcy which can put the stops to any foreclosure and seller may decide they want to continue living for free in a home they have stopped paying for….

2) While you wait, the Seller disappears. Why hang around and go through a hassle to fill out more paperwork that will not result in a penny in your pocket? Goodbye; off to a new life.

3) The bank never responds…the voice mail is always full; no human answers the phone…not even 6 months later…

4) The bank responds but wants $25,000 more than the property is worth…banks do not need to operate on common sense; they can do anything they want.

5) The property may not be financial due to the seller stripping out even the bare necessities: No kitchen, no appliances, no bathrooms, no light fixtures, no air conditioner, no pool pump, no carpet, no wood floors, no doors and like I just saw last week….no electric wires either…all the wiring was pulled from the walls into the attic…seriously.

Get the picture?

Eve
407-539-1053

Carriage Pointe- USDA Financing Eligible

2009-09-18T10:54:00.002-05:00

Taylor Morrison new contstruction single family homes are eligible for USDA Financing which is allows $0 down for qulalified borrowers.

Homes priced from $199,000-$320,000
3 & 4 bedroom floor plans with 1606 - 2520 sq. ft.
Homes ready in time for $8000 tax credit
Oversized Homes Sites 75'x125'
$65/mo HOA inclues gated community and tennis court
Located in Winter Garden close to SR 429
Great area shopping and schools

August Orlando Real Estate Statistics

2009-09-14T17:59:00.001-05:00

Orlando Regional Realtor Association has produced Orlando Real Estate statistics for August 2009.

Average Mortgage Rate: 5.26%
New Listings: 4,232
New Contracts: 3,324
Sales are up 45.45 percent over July 2008.
Normal sales made up 58.01 percent of July sales; distressed and bank-owned made up 41.99 percent.
There are 7,713 pending sales, more than double that in July 2008 (3,258).
There were more newly filed contracts in July (3,696) than in any other month this year. There were 1,947 newly filed contracts in July 2008.
The overall median price rose 2.92 percent to $135,000 last month, but is still 35.10 percent lower than last year.
The median price for normal sales is $165,000; the median price for bank-owned sales is $84,500; and the median price for distressed sales is $139,500.
Affordability declined in July to 181.48 as a result of the increase in median price. There are 11,198 homes in Orange and Seminole counties currently listed in MLXchange that are considered affordable ($245,005).
Inventory decreased by 600 homes from June to 16,361. There is 8.05 months of supply at the current sales pace (economists consider six to seven months of supply to reflect a balanced market).
Condo sales increased by 175.37 percent compared to July of last year, with the majority selling for $50,000 or less.
Under Contract: 8,237
Back on Market: 436
Expired Listings: 1,014
Withdrawn: 1,339
Average Days on Market: 93
Sales Closed: 2,112

For historical months, please click here.

New FHA Condo Approval Guidelines

2009-09-14T17:52:00.001-05:00

FHA has recently released a Mortgagee Letter that will change how condominium projects are approved for FHA financing. HUD will eliminate spot approvals and the current FHA Approved Condo List on all case numbers issued on or after October 1. FHA will now allow lenders to determine project eligibility, review documentation and certify that it is compliant to HUD's guidelines and regulations. There will be two condominium project approval options. The documentation requirements will be the same for each option. The first option is a HUD Review and Approval Process option referred to as HRAP (probably will be longer and more costly). The second option will be Direct Endorsement Lender Review Process referred to as DELRAP. This option is restricted to lenders who have unconditional Direct Endorsement authority and staff with knowledge and expertise in reviewing and approving condominium projects. It's too early to tell how these changes will affect FHA condominium financing. Lenders are currently scrambling to figure out how they will deal with the additional liability of certifying these projects with all the current condominium challenges and exposure. For more information on financing a home please contact Eric Intihar of US Mortgage of Florida at Eric@SpecialtyMortgage.com

Florida is #1 for British Buyers

2009-09-09T14:56:00.000-05:00

HomesOverseas.co.uk editor Marc Da-Silva says Britons continue to favor Florida when looking to buy properties in the United States, and favorable exchange rates make this a perfect time to do so.“Florida is basically the most popular place for Brits looking to buy,” says Da-Silva. “It is always going to appeal to people looking to move overseas for, arguably, a better quality of life, as well as holidaymakers.”He notes that the Britons prefer the Sunshine State’s climate, and daily flights to and from the United Kingdom make Florida easily accessible.

Save Money Using Foreign Currency

2009-09-09T14:05:00.005-05:00

Are you using foreign currency to purchase US Real Estate? Before you transfer your money from your bank, shop around for the best rates. Yes, currency exchange companies can save you money by offering interbank rates. That means you can get a better rate than your bank, which leaves more money in your pocket. International home buyers who use foreign currency for their real estate purchase may save 4-6%, get free advice from currency exchange expert, lock in rates for future the purchase, and transfer the money to the US via same day transfer on time for closing. For more information, please contact Buyers Broker of Florida

Need an 8 Bedroom Home?

2009-09-02T11:39:00.005-05:00

Not too many builders, build or allowed to build an 8 Bedroom Home. But one builder is maximizing the potential and building an 8 bedroom 4 bath home with game room and study featuring 5,107 sq. ft., 3 car garage in the best school districts in Orlando for just $350,000. This home is perfect for multi generational living or family that has alot of multi purpose space for office, play room, library, fitness room, craft room with plenty of room still left for guests. Other new constructions homes start at $250,000. For more information on this community, please contact, Buyers Broker of Florida.

Market Statistics for July 2009

2009-09-02T11:23:00.005-05:00

Orlando Real Estate Sales picking up and according to recently published statistics from Orlando Regional Realtor Association, sales are up 45% since July 2008 and pending sales have doubled. Median price of a home starting to creep up at 2.92% to $135,000. There are an 8 month supply of inventory of homes, and 6-7 months is considered a balanced market. For buyers time is now to buy, as I have seen in past few months, bargain homes no longer available, and underdesireable properties now going under contract rising. Here are additional statistics:

Average mortgage rate: 5.34%
Inventory of homes: 17,231
New Listings: 4,158
New Contracts: 3,696
Under Contract: 7,713
Back on Market: 787
Expired: 849
Withdrawn: 1266
Sales Closed: 2,141
Average Days on Market: 103

Stay off the internet for financing…

2009-08-26T16:21:00.001-05:00

Remember this:

1. Anyone can quote you anything and not live up to it.
2. Good Faith Estimates are subject to change.
3. If the deal sounds too wonderful…it really isn’t.

Buyer be aware…there are no miracles in financing. If your income is stable and you have great credit, you will get the best rates. If not, you will have to put more money down and pay a higher interest rate. There is no such thing as a real 1% interest rate, or no money down.

Advice:

1. Use a lender in the state in which you are buying.
2. Use someone that was referred to you by someone you trust.
3. Stay off the internet for quotes…they always change once you apply.
4. Don’t feel obligated to a friend just because they got a license.

For reliable and experienced mortgage brokers, or to get pre-qualified for free, please contact us.

Eve