Category: News and Information

Orlando Home Sales Show Continued Increase

Posted on by Jenny Zamora

 

Rising interest rates and property values drive Orlando sales up by fifteen percent

The numbers are in and home sales are up! Median home prices jumped more than 25% this July compared to July of 2012. This is the greatest increase we’ve seen year to year since the peak of the Orlando real estate market back in 2006, as reported by the Orlando REALTOR Association.

Steve Merchant, the current ORRA Chairman, says that continued price increases are jump-starting buyers to take action. People have a sense of urgency now because they feel like soon they will be out of reach of still getting a good deal on an Orlando home. Mortgage interest rates are on the rise just as fast as home prices and potential home buyers are trying to get in on a good opportunity while they still can. It’s now wonder why home sales are up by fifteen percent when compared to July of last year.

Click here to  check out current market statistics, mortgage rates, as well as how many new listings are coming on to the market.

Are We Headed for Another Bubble Burst?

With this dramatic increase in home sales and property values over the past couple of years, one can easily speculate and say that we are headed for another market crash sooner than later. When you look at it, this was kind of the same pattern that was taking place back in 2004-05. Property values were increasing at astronomical levels, buyers were like hungry sharks and banks were lending money like it was going out of style. It’s impossible to predict how all of this will play out over the next year or two but I’m hoping that people don’t forget what not only Orlando went through but what the entire nation went through when the market crashed in 2007.

Potential home buyers should beware to not fall into that trap of feeling of having to buy a property as if their life depended on it.  Many times I will recommend to certain clients to rent as another option to buying. To some people it just makes more sense to rent and even though I lose a potential buyer by doing this, it’s my job as an Orlando realtor to do what’s in the best interest of my client.  I believe that many home buyers are set up to fail just as soon as they sign those closing papers. You have to be realistic with your financial situation. People tend to let their emotions get involved when purchasing a home and that’s OK to a certain extent but it can also get you into deep water. Don’t let that thought of yourself having margaritas with your friends in the pool of that house you just fell in love with [that you really can’t afford] cloud your judgement. Buying in a new house is a special feeling kinda like being a newlywed. However, just like a marriage if you picked the wrong one, your headed for some pretty rough times. 

 

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How Do Orlando Real Estate Agents Get Paid?

Posted on by Jenny Zamora

I was meeting with a client last earlier this week that was looking for a 4-bedroom home in East Orlando. At one point in our meeting, she looked at me with a blank stare on her face and asked me how much I was going to charge her to find her a house. Just at that moment, I realized just how many pieces there are to the puzzle in a real estate transaction.

As Orlando real estate agents, we’re aware of everything involved with buying and selling homes because it’s our profession and it’s something we do every day. However, a first-time buyer may be completely clueless about how a real estate transaction works. That’s why it’s our job as real estate agents to make sure the buyers and sellers are completely informed about every last detail of the transaction they are about to be involved in.

Typically the buyer’s agent’s commission gets paid by the seller. Here’s how it works… The agent representing the seller AKA the “Seller’s agent” signs an agreement with the seller AKA a “Listing agreement” to pay a specific amount of commission in order to sell the home. Then the listing agent will enter the listing into the Multiple Listing Service [MLS] and based on whatever amount they agreed upon with their client, they will usually offer the buyer’s agent 50% of the commission. When the transaction is complete both agents are paid out of the seller’s proceeds.

How do Realtors get paid when it’s a short sale?

It works a bit differently when it’s a short sale or foreclosure situation. In a short sale scenario, the seller is upside down on their mortgage which means that there is more money owed on the property than the property is actually worth. A short sale is a pre-foreclosure arrangement between the seller in which the lender is agreeing to the sale of a property for less than what is owed in order to re-cooperate some of their money. This usually means that the seller is financially unable to bring any money at all to the table. In this case, the Bank pays both real estate agents. Banks will usually approve a commission of 5% or 6% which is to be split 50/50 by both agents involved.

There is one situation in which the buyer pays the commission which is pretty rare. Some homeowners choose to sell their property “For Sale By Owner” in order to avoid paying any commission at all on the sale of their home. In rare cases like these, the buyer pays the agent when the transaction closes. It’s never a good idea for a buyer to enter into a real estate transaction without the representation of a licensed Orlando realtor. 

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A Real estate agent plays many key roles in getting the transaction closed. A realtor can also play the role of negotiator making sure that the buyer gets the best price possible on the property, most of the time the amount of money that a buyer saves on the transaction far exceeds what they agreed to pay the agent.

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Lake Nona Medical City Making a Huge Impact on Orlando Real Estate

Posted on by Jenny Zamora

It’s been referred to as the new chapter in the history of Orlando. Lake Nona Medical City is becoming a monumental landmark not just for Orlando but as a premier location for medical care, research as well as education. Meticulously planned out, it represents an obvious strategy to build a focused cluster of the world’s most sophisticated medical treatments, education, and research in Central Florida.

Over the next ten years, some of the country’s top hospitals, research institutions, and universities will call Lake Nona Medical City home while enhancing economic development and as well as build a job creation machine for Orlando. Also, speaking as an Orlando Realtor, I firmly believe that it will continue to positively affect Orlando real estate.

Lake Nona’s Medical City Economic Impact Could Exceed That of Walt Disney World!

Many people say that Orlando’s Lake Nona medical facility will produce a boost in the local economy that will exceed that of alt Disney World when it opened its doors in 1971. How on earth can that be considering Disney World’s Orlando location currently employs over 60,000 people?!

The reason is that Lake Nona’s 600+ acre “Medical City” contains a combination of some of the world’s most brilliant medical minds together with biotechnology-driven health care facilities. Located just 10 minutes from Orlando International Airport, this cluster will be an economic freight train for Central Florida.

The Lake Nona Medical City will bring over thirty thousand jobs to Orlando and will have a projected 7.8 billion dollars on the local economy over the next 10 years. This doesn’t include the small businesses that are and will continue springing up around the facility.

Some of the facilities located in Lake Nona Medical City

*UCF’s new health sciences campus at Lake Nona. This 50+ acre campus will employ over four hundred full-time and part-time employees.

*The Sanford Burnham Medical Research Institute spent over $85 million on its state-of-the-art research center and will become home to three hundred of the country’s top scientists and staff.

*Veterans Affairs Medical Center is expected to serve over 400,000 veterans and is also the national site for the Dept. of Veterans Affairs Medical Simulations Center for Excellence. The total cost for building this facility was in the neighborhood of 665 million dollars and will employ more than 2,000 people.

*The University of Florida will have a 100,000-square-foot biomedical research facility worth over 61 million dollars.

It’s pretty amazing when you think about all of these medical and biomedical facilities located in one Florida community. This is great news for Orlando as well as the state of Florida. One thing is for sure the jobs that Lake Nona Medical City will create as well the small businesses it will help will do wonders for the local economy as well as continue to fuel the Orlando Real Estate market.

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Can I Buy my Home Back after I Short Sale it?

Posted on by Jenny Zamora

One of the most common questions I get from sellers is “Can I buy m house back after the short sale is done”. The truth is that there are cash investors, hedge fund buyers as well as non-profits out there that specialize in doing just that. They will buy the property as a short sale then lease option it back to the original seller after 2 or 3 years. It’s actually a great option for a seller because they don’t have to deal with the hassle or expense of moving all of their stuff to another house.

Even though there have been laws in the past that have prevented these situations from happening, there was an amendment made to the “Making Home Affordable Program” that now allows a Non-Profit Organization to buy a property then lease it or resell it back to the seller. However, in order for everything to be done legally all requirements under the “Home Affordable Foreclosure Alternative aka [HAFA] must be met by the seller. As with any important transaction, it’s important that you read the fine print.

Here are some things to consider when entering into a buy-back agreement with a non-profit organization or cash investor.

 

1) You must qualify for a HAFA short sale in order for this to be an option for you. Not only that but even if you do qualify for a HAFA short sale this buy-back program is still subject to the approval by your lender. In other words, even if you meet all the requirements from HAFA, your bank still has to approve the sale of the property to a non-profit organization. There’s absolutely no guarantee that your lender will agree to this arrangement and you just won’t know until you try.

2) If the home is not your primary residence, you won’t qualify for HAFA. In the lender’s eyes..you purchased this home as an investment which defeats the whole purpose of the HAFA program.

3) When using a cash buyer expect to pay full market value for your home when it’s time to close. Cash investors expect to get a decent return on their money when entering into any lease option agreement. The deal just wouldn’t make sense to them if they weren’t guaranteed a nice profit when it’s all said and done. A typical cash investor will want at least 3-5% of the purchase price as a non-refundable deposit [sometimes more] to ensure that the buyer will do everything in their power to close on the deal. And if they’re not able to close, the investor gets to keep the deposit as well as the property.  Also, you can expect to pay a higher than the average interest rate, I’ve seen investors charge as much as 13% interest on a lease option contract.  Cash investors will usually want full market value for the property at the time of the contract signing. This can be a double-edged sword because if the property appreciates over the time of the lease contract, then it benefits the buyer. However, if the property depreciates over the time of the contract, then it benefits the investor because the purchase price was locked in at the signing of the agreement.

 

A short sale may still be your best option

Even if you’re not approved for a buy-back program, a short sale may still be your best option. Surrendering a home that owes much more than it’s worth is a smart business decision. By doing a short sale, a homeowner can walk away free and clear from debt. Many times homeowners can even come away from the closing with thousands of dollars through certain programs. Throughout the years we’ve helped thousands of homeowners avoid foreclosure by completing a  short sale on their homes. Our team of dedicated real estate professionals is dedicated to finding real solutions for Orlando homeowners that are facing foreclosure.

 

 

Orlando short sale expert

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Renting A Property? Here Are Some Things You DON’T Have To Worry About!

Posted on by Jenny Zamora

Many people see renting as a bit of a pain – they would much rather buy a property, but they just can’t pull enough money together to get a mortgage. While there are some disadvantages to renting (for example not being able to decorate it to your own taste, having to sign regular contracts and having no long-term security in the house), there are some big advantages too. For people that move around a lot, it can be the perfect solution with minimal commitment. Other people rent while they wait for their perfect house to become available on the market. On top of the logistical reasons why renting is not always such a bad idea, there are some practical reasons too. Here they are:

Plumbing & Heating? Not Your Problem!

The beauty of renting a house or apartment is that if anything goes wrong with the plumbing, the heating or even the electricity for that matter, it’s just a simple case of putting a call in to your landlord or letting agent who will in turn appoint a plumber to sort things out. You may be inconvenienced while you wait for things to be put right, but at least you won’t have to foot the bill! The cost of repairing or replacing plumbing and heating systems can run into thousands, but somebody else can worry about that for you. If your boiler packs in then it will be repaired or replaced as part of the tenancy agreement. It’s a very stress-free way of living as you know exactly how much is going to come out of your bank account every month.

Maintenance Tasks? Not Your Problem!

A homeowner’s heart will sink when they discover a leaking roof or some missing tiles. Roof repairs can get very expensive indeed, and it’s never a welcome bill. If you rent your house, then at the first sign of damage you can call the maintenance men in who will fix it and send the bill to your landlord. With roofs needing to be replaced every 8-10 years on average, this is a huge headache that you don’t have to deal with (or pay for!). The same goes for loads of other maintenance tasks such as repairs to the flooring, the fixtures and fittings and the windows. All of these could be very expensive if you had to foot the bill yourself.

Need To Move Quickly? Not Your Problem!

Although you may feel very settled where you are right now, what if your company decide to relocate you to somewhere brand new right out of the blue? Homeowners can really struggle to sell or rent out their property, but if you are renting yours then it is a simple case of putting a month’s notice in, and packing your bags ready for the move. Many people really appreciate this way of living as it offers them far more career flexibility.

If you choose to rent a property then always make sure it is through a reputable estate agent in Orlando so that you know that your interests will always be protected.

 

 

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