2007 was a bad year for Orlando real estate just as it was for the rest of the country. It was especially devastating for people who lost their homes to foreclosure or were forced to do a short sale in order to avoid foreclosure. Since that time many people have managed to recover from the market crash with many still on the road to recovery.
2015 marks the passing of the seven year point for the first wave of these homeowners, which is the average time needed to conservatively repair someone’s credit after going through a foreclosure, short sale or bankruptcy. We refer to them as boomerang buyers because they were forced to exit the world of home ownership and they’ve managed to come back in a big way.
These people deserve a lot of credit because not only did they survive losing their home during the market crash, but they did what they had to in order to come back from a devastating loss and they’re now once again on the doorstep of becoming a home owner.
We are currently working with several boomerang buyers in finding them an Orlando home that meets their needs. I can honestly say that this particular group of buyers appear to be much more educated on the home buying process than the average home buyer that has never been through a traumatic experience as losing a home to foreclosure or short sale.
The one thing that ALL boomerang buyers have in common is that they never, ever want to go through a foreclosure again! Which is why they are now more educated and cautious in the way they think. These potential buyers have a carefully planned budget and they know exactly what they can and can’t afford. I’m also impressed by some of the questions they ask like these:
- How much does this house spend on utilities?
- How much are property taxes and are they subject to increase?
- How much is the HOA and is it mandatory?
- Are the appliances energy efficient?
- How old is the water heater? Is it energy efficient?
- Is there enough insulation?
- Are the windows energy efficient?
- How old is the roof? When can I expect to replace it? How much will it cost?
These same people wouldn’t have bothered asking most of these questions seven years ago. They just would’ve asked…Where do I sign?
Some People Still Prefer To Rent
For some former homeowners the experience was so traumatic that they’ve sworn off ever owning a home again and are more than happy renting their home. When you think about it… it’s not a bad option at all. They don’t have to worry about making a huge down payment, they’re not committing to a 30 year debt, they don’t have to worry about making major repairs. Also, if they have to move for whatever reason, they don’t have to worry about selling a house that may not be worth what they owe!