Author: Jenny Zamora

Orlando Real Estate Market Surviving Amidst COVID-19

Posted on by Jenny Zamora

What should be the start of peak season for Orlando real estate is instead a slower market for both buyers and sellers. Coronavirus has made it difficult for potential buyers to look at homes.

However, despite our current situation with the Pandemic, there are still some signs of life according to real estate agents in Orlando.

Jenny Zamora, Owner/ Broker at Orlando Realty Consultants breaks down what’s currently going on in the Orlando real estate market while Florida residents are under strong recommendations to stay home.

RE Transactions Still Being Made

Even though most employees at title and mortgage companies are working from home instead of the office, they are still working hard putting through mortgage and refinance applications as mortgage rates continue to drop.

“Offers are still being made,” said Zamora. “I am still receiving offers on my listings and buyers are still making appointments to visit homes”

Virtual Tours More Common

Even though most people aren’t physically looking at homes right now, it doesn’t stop them from shopping around. Although people are a bit afraid to look at homes in person, it doesn’t mean they aren’t shopping around.

Virtual tours of Orlando homes are now more popular than ever. People are carefully going through all the photos and videos that they can on a home. They’re doing as much research as possible so that when they’re allowed to physically see the homes, they’ll be ready with a plan to move forward.

Zamora says “Potential homebuyers are relying heavily on any pics and videos they can find online. Some people are in situations where they need to move, so they have no option but to keep pressing forward with their home search.”

Transactions Taking Longer to Close

Luckily, title and mortgage companies can push through deals that have been started before the pandemic on time. However, moving forward, transactions are now expected to take a bit longer to close until things get back to normal.

“Appraisers, home inspectors, and surveyors have had an easier time scheduling visits as these can work while maintaining social distance.

Will it Be A Seller or Buyers Market When Things Are Normal Again?

Before the COVID-19 pandemic began, inventory was low and home values were high making it a seller’s market. However, with the current rising unemployment rate and an economy on a downward spiral, Orlando home values are expected to fall rather quickly. When this happens it will shift the market making it a buyer’s market. Right now it’s just too early to say for sure what will happen.

“As of today, I don’t believe there’s been a major shift yet,” said Zamora. “Buying power is still there for the most part. Interest rates are at an all-time low, so money costs less. This is what helps to counterbalance the market and current home values that are out there. It’s still a bit too early to tell if the pandemic will have a more sustained impact on homes sitting on the market for longer periods.”

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Orlando Realtors Relying on Tech More Than Ever Amidst Coronavirus

Posted on by Jenny Zamora


Realtors in Orlando Doing Whatever It Takes

Although buyer activity has slowed down a bit, many buyers can’t put off buying a house for whatever reason. Even though people are held up at home, it doesn’t mean they can’t continue the search for their dream home right from their living room. Because of virtual tours, online mortgage application platforms, and tools like Facetime, Orlando real estate agents like myself are still conducting business… not quite “as usual”.

Armed with the latest technology such as smartphones and social media platforms, sellers and buyers have no choice but to rely on the internet for guidance. It’s become apparent that people are becoming more comfortable with technology… even seniors. Virtual tours have never been more popular in Orlando real estate. It’s the only way I’ve been buying and selling houses for the past several weeks.

I’m the kind of Realtor that likes to form a connection with my clients which usually results in a friendship. This means showing properties in person, being present at inspections, showing up to closings, etc. However, I’ve had to get used to doing everything I normally do via emails and lots of phone calls.

This also applies to sellers who need to sell their homes in Orlando. Just a few days ago I acquired a new listing in Orlando. Working together with the seller we got the listing up without ever meeting in person. He was adamant about not wanting anyone in his house and I don’t blame him. We did a thorough walk-through of the home so I could get a feel for it via phone. After giving him a few staging tips, the home is now set for photographs.

Realtors in Orlando and everywhere else for that matter, are having to adjust their practices to continue to do business. For right now and the foreseeable future… this marks the end of open houses and in-person closings and the beginning of virtual tours and remote closings using online notaries.

The Florida Department of State legalized online notarizations as of Jan. 1, 2020. This allows sellers and buyers to close on a home without actually being in the same room.

I believe that real estate deals in Orlando and everywhere else in the world will rely on technology even more so in the future. The public has no choice but to be more trusting of the technology.

Will Orlando Real Estate contracts contain a coronavirus clause?

Social distancing has made it virtually impossible for Orlando real estate agents to show homes and get people together at the same closing table right now. Orlando as of yet doesn’t have a coronavirus addendum to be used in real estate transactions like some other parts of the country have.

Florida however, has recently approved a Coronavirus Extension addendum. This form is available to use when the parties of a real estate transaction need to extend certain dates or periods as a result of COVID-19.

The form includes checkboxes with extension options for the following:

  • Closing date extension
  • Financing period extension
  • Inspection period extension
  • Title cure period extension
  • Feasibility study period extension
  • Due diligence period extension
  • Homeowners’/condominium association approval extension

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How Working With A Real Estate Agent Benefits You

Posted on by Jenny Zamora

Benefits of Working with a Real Estate Agent

They help sell your home and find your new home: Top Real estate agents can help your sell your current home as well as help you find your new home simultaneously. That way you don’t have to worry about where you are going to live once you sell.

Agents take care of all the paperwork: Ensuring all the documents involved in a real estate transaction are correct and properly signed and executed is extremely important. Real estate agents are trained to carefully analyze real estate contracts, inspection reports, etc. so you don’t have to.

Realtors save you time: Can you imagine all the time it takes to constantly search for a house that meets your criteria as soon as it hits the market. If you’re selling, the agent is also in charge of scheduling showings, hosting open houses, marketing, etc.

Agents help you navigate legal requirements when selling or buying a house. Although real estate agents aren’t attorneys, they do know the ins and outs of any legal requirements you’re obligated to follow when doing a real estate transaction.

Access to the MLS: Realtors have access to homes that are listed on the MLS. [Multiple Listing Service] This is a platform that only licensed realtors can access.

Buyers rely heavily on agents: In 2019, 87% of home buyers purchased their homes using a real estate agent. 88% of those buyers said they would use an agent again to buy another home and would also recommend a friend to use a buyer’s agent.

Sellers get a higher price when they use an agent: 48% of homeowners who don’t use an agent, end up selling for a lower price.

Easily schedule showings: Agents have tools they use to schedule showings for only qualified buyers. Just tell your real estate agent when you’re willing to show the home and they handle the rest…

Homes Listed by real estate agents sell for more money: Realtor listed homes sell for a whopping 18% more than homes sold “for sale by owner”

Agents provide you with professional advice: Top real estate agents have a lot of experience so you can rely on their judgment when you need to discuss something or make a decision about something.

Agents are great negotiators: Whether you’re buying or selling, there’s always some negotiating that happens. Experienced Realtors are expert negotiators and they can make sure you are getting a fair deal.

Real estate agents will guide you through the whole process from a to z. A real estate transaction is like a journey where a lot of things can go wrong if you’re not prepared to handle it. Your Realtor will be there for you throughout the whole process until closing.

Agents put their emotions aside to get the deal done. If you’ve ever bought or sold a home, you know how emotional it can be. Your real estate agent isn’t emotionally attached to your home so they can think clearly without clouded judgment to get the deal done.

Top Realtors are familiar with the neighborhood: If you hire a local real estate agent, they will have a tremendous amount of knowledge about the neighborhood you are buying or selling in.

Most homeowners in the US rely heavily on real estate agents: In 2019 89% of homes sold in the US were sold by real estate agents and only 11% sold as a “for sale by owner”.

Real Estate Agents are bound by law to act as your fiduciary agent. This means they are required to look out for your best interests whether you are the buyer or seller.

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How To Submit A Short Sale Package

Posted on by Jenny Zamora


Submitting The Short Sale Package

Back in the early 2000s when short sales were scarce and uncommon, short sale agents were forced to deliver completed short sale packages via FedEx, UPS, or sometimes even in person, depending on where the short sale lender was located concerning the home. As a short sale agent in Orlando, I did this to ensure the lenders would receive the package because banks would routinely lose or would claim they “never received it”, probably because they were outsourcing their short sales to 3rd party short sale processors. It was very frustrating, to say the least…

Although Bank of America was the first one to have the ability to receive shorts ales via upload, many of their competitors still required us to fax them over, and over… and over. As the years went on, through the implementation of online software and loss mitigation departments becoming more familiar with short sales, the short sale process became more streamlined and where being processed a lot faster.

These days some lenders will only accept documents if you upload them to their online processing platform. You must speak to someone before submitting the package so you know exactly what they need and how they need it. If there’s only one document missing, it will hold up the entire process.

Documents Needed for A Short Sale Package

Nowadays most lenders will have their short sale package with their company logo. It’s best to just follow along and submit the docs exactly how they ask for them.

This is a list of documents required by all lenders to be considered for a short sale:

Listing Agreement: The short sale lender will need proof the property is listed by a licensed real estate agent at the current market value. The listing agreement must be signed and list the terms of the listing, the name of the brokerage and the amount of commission to be paid. It’s never a good idea to lowball the bank so make sure the offer price is close to the listing price, they aren’t stupid and it could cause them to reject the file altogether.

Purchase Contract: Note: Not every lender will accept a contract that’s been signed electronically. They may require you to have “wet signatures” on the contract so find out the requirements beforehand. Make sure the property address is written correctly and every line has initials and signatures where needed so there aren’t any delays.

Hardship Letter: Writing an effective hardship letter is probably the most important part of the short sale package. It should tell a detailed story about how the homeowners got into their current situation and why they can no longer afford to pay the mortgage. Whether it’s because of loss of employment health problems or divorce, leave nothing out. The hardship letter must have the loan number on it, signed and dated by the homeowner.

Letter of Authorization: This is the letter in which the seller authorizes the agent to speak with the lender on the seller’s behalf.  As a short sale realtor in Orlando since 2004, I prefer to send in the authorization letter as soon as I get the listing agreement so I can establish communicate easily with the short sale lender before sending in the package. However, for some unknown reason, many short-sale agents will wait to send it together with the complete package.

Bank Statements: Every short sale lender will want to see your last 2 bank statements for every account you have and don’t leave out any pages as this will delay your file. If there is any unusual activity on the account like large deposits or withdrawals, I suggest you make a note to the short sale processor explaining why. Put out the fire before it starts…

Last 2 Years Tax returns: The short sale lender will also want to see your past 2 years of federal tax returns, dated and signed, on every single page. If for some reason you haven’t failed, you should write a letter explaining why.

Last 2 W-2s or Profit and Loss Statement: The lender will require you to send in the past two years of w-2s disclosing your salary. However, if you’re self-employed, you’ll need to send in a profit and loss statement. If you’re not self-employed, you should also send in your payroll stubs supporting the w-2s. Explain any bonuses or other pay increases if applicable.

Preliminary HUD Statement: The preliminary HUD statement should be prepared by the title company that will do the closing. It contains all the details of the property such as a legal address, seller’s names, buyer’s names, and the estimated closing costs. It will break down all the costs of the transaction including the sale price, mortgage payoffs, real estate commissions, taxes, insurance, etc.

The CMA [comparative market analysis]: Your short sale agent should also prepare a comparative market analysis to be included with the short sale package. It’s a report of comparable homes sold in the same area. A CMA report should justify the offer price and should be included if the offer price is less than the listing price.

Contractors Estimate: If the home requires some repairs to make it livable or even minor repairs, it’s always a good idea to include a contractor’s estimate of how much it will cost to make the repairs. If you want to be thorough, you should get 3 estimates from different contractors.

Short Sales Aren’t Guaranteed

Keep in mind that there is never a guarantee when it comes to short sales. Just because you followed all the steps and did everything the lender asked of you, there’s still a chance that your short sale will be denied by the lender. If this happens, don’t give up!

If you have an experienced short sale agent in your corner, they won’t give up either. Sometimes it takes some negotiating and jumping through a few more hoops to get it done.

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What Do Real Estate Agents Charge?

Posted on by Jenny Zamora

If you need to hire a real estate agent to help you buy or sell a house, keep in mind these real estate professionals get paid through a real estate commission. So how much does it cost and why? Can this be negotiated?

As a real estate agent in Orlando, FL since 2004, please let me explain everything you’ll need to know about real estate commissions.

How much are real estate commissions?

Instead of getting paid by the hour or weekly salary, real estate agents only get paid if the real estate transaction goes through.

Some brokerages will charge a flat rate for their services, most agents work off a percentage of the sale once the sale has gone through. The exact percentage can vary however, most real estate commissions are usually between 5 and 6% of the sale price. So on a $100,000 home, a 5% commission would be $5,000.

This might seem like a lot of money, but keep in mind that the real estate commission gets split between the listing agent and buyer’s agent. Also, real estate agents don’t receive a penny until the deal has gone through… a process that can take weeks and even months of work depending on the deal.

Who pays the real estate commission?

Usually, the seller of the home pays the entire amount of the commission for the service of both the listing agent as well as the buyer’s agent… unless the agent is representing both buyer and seller.

The two agents typically split the real estate commission 50/50. If a home sells for $100,000 at a 5% commission, each real estate agent will walk away with $2,500. However, this can also vary in certain situations such as if the listing agent was only offering 1% to the buyer’s agent. Everything in real estate is usually negotiable.

Dual Agency Explained

If the same real estate agent is representing both the buyer and the seller, the agent then becomes a “dual agent” and receives the entire amount of the real estate commission. That’s why listing agents love it when they also find the buyer in addition to representing the seller. [Talk about a huge payday!]

As an Orlando real estate agent, this has happened to me countless times. However, many real estate agents don’t like representing both parties because it puts them in the awkward situation of having to work for both the buyer which could at times become a conflict of interest.

What Exactly does real estate agent commission cover?

Homeowners certainly have the option of selling or buying their home “For Sale By Owner”, but when they find out the tremendous amount of time and work that it requires, they usually end up hiring a real estate agent. Real estate agents provide a whole wide range of services like; pricing the home correctly, marketing the home [on the Multiple Listing Service, social media, etc.] negotiations, and even guiding homeowners through the closing.

An experienced real estate agent can help you get top dollar for your home while handling all the stress that comes with selling a home. I can tell you from experience… good real estate agents earn their money!

Need proof? Check out these numbers… A recent National survey done in 2019 found that a typical FSBO home sold for $195,000 compared to $245,000 with the assistance of a real estate agent, according to the National Association of Realtors®.

That means that homes listed for sale with a realtor sold for $50,000 more than without an agent. Maybe that’s why a whopping 92% of homeowners used a real estate agent to sell their home.

Are real estate agent commissions negotiable?

As my first ever real estate teacher used to say all of the time “everything in real estate is negotiable”. Although a 5% to 6% commission is the norm here in Florida, there aren’t any state or even federal laws that set commission rates.

This means that if you want to sell your home, you can certainly ask your real estate agent to reduce their commission however, they aren’t obligated to do so.

One thing to consider is this: Your listing agent must pay for marketing your home from the commission they receive after the closing, less commission could mean a lower marketing budget for your home which could mean more time on the market.

With that being said, it won’t hurt to ask your agent to lower their commission. Most real estate agents won’t be offended [who cares if they are?] and the worst they can tell you is no. If you are tight on the numbers, you may ask them to charge you a flat fee for helping you list the home, communicate with buyers, and write the contract, but you won’t get a full service from the agent or brokerage with a flat fee. Most agents don’t offer a flat fee listing agreement, so you’ll have to shop around a bit, and be prepared to do some of the heavy lifting yourself.

Buying or selling a home will probably be one of the largest financial transactions of your lifetime, so make sure to find an experienced real estate agent that you can trust to do a great job. This isn’t the time to hire your nephew who just got his license 3 weeks ago…

Other Things You Should Know About Real Estate Commissions

Every detail about an agent’s real estate commission must be outlined in the listing agreement [contract] that you signed when you hired the agent. A typical listing agreement should also state how long the agent will represent you. Usually, a listing agreement in Florida lasts between 90 to 120 days.

As the home seller, you want a real estate agent who will fetch you the highest and best sales price and the terms you want, but the best real estate agents aren’t cheap. Like the old saying goes with most things in life… you get what you pay for.

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