Category: Orlando Real Estate

Newcomers Affecting Orlando Home Prices

Posted on by Jenny Zamora

Due to COVID-19 real estate prices in Central, FL is rising at a steady rate, according to real estate agents in Orlando. The main reason for this trend is the overwhelming amount of people from other states moving to Orlando every day. Unfortunately, this also affects the affordability for local home buyers.


The main reason for this trend is the overwhelming amount of people from other states moving to Orlando every day. The cost of living in northern states like New Jersey and New York is much higher than in Central Florida. Buying and renting a home is typically a lot more expensive in those states than it is in Florida.

With this steady stream of newcomers moving to Orlando buying and renting becomes more expensive for the locals. This is one of the reasons why home prices continue to rise and inventory remains low.

I recently had a client from New York who was now working remotely due to COVID-19 and he could not believe the home prices per sq ft compared to his home state. This is what he said when I started showing him Orlando homes for sale, “3,000 square foot house for 525k??… this house would cost me 1.5 million in NY!”. He then submitted a cash offer for the full asking price.


As prices rise in real estate, buying a home in Orlando suddenly becomes unaffordable for a lot of people. I believe this increases the demand for rentals which is why we are seeing so many new apartment buildings throughout Orlando. Unfortunately, this also makes traffic worse causing us to spend more time on the road.


I’ve been a Real Estate Broker in Hunter’s Creek since 2005 and I can tell you that traffic has increased to at least 5 times what it was since I’ve lived here. It seems like I spot a new apartment building going up every time I drive down John Young Parkway.


Virtual Tours For Orlando Homes


The use of virtual tours for buying and selling homes in Orlando has been booming since the pandemic. Stay at home orders by the state and public concerns prevented potential home buyers from physically walking through homes. Now more than ever the use of virtual tours is by far the best tool Realtors in Orlando have at their disposal.


Although it’s not quite as good as being there physically… It does provide the buyer with a greater understanding of the home’s location, features, and neighborhood amenities. This increased knowledge creates a more knowledgeable buyer and better seller. A buyer who knows more about a property before they view it in person has a greater likelihood of being a successful buyer


While some Orlando Realtors have embraced virtual reality as a legitimate tool for their business practices, many traditional realtors will discount the value of this emerging marketing strategy. Realtors that are willing to give a more holistic view of a prospective house and the surrounding neighborhood should be a big factor when looking at virtual home tours.


Real estate agents that can see the whole picture of a neighborhood should be considered because they can act as a catalyst for a quick sale or buyer, hold the buyer’s interest longer, and provide a more logical reason for the seller to enter into a contract. The rise in popularity of the virtual reality genre means that any prospective home shopper can experience a house or neighborhood through this medium. A trip to the virtual world of the internet is a compelling, and necessary, component of today’s Orlando real estate market.


COVID-19 A Major contributor To Influx of new residents


The Coronavirus has affected and continues to affect our country in a very negative way. Thousands of businesses have gone under, hundreds of thousands have lost their jobs and it’s not over yet. Even as the vaccines begin to get distributed there seem to be more cases than ever. Unfortunately for many people, recovering from this pandemic to the way things were isn’t very realistic.


Some people were fortunate enough to be able to continue working remotely from their homes, depending on what they do for a living. These people now realize that they no longer have to live near their workplace and are moving to other states. Orlando, FL is mainly known for world-class amusement parks like Disney World, Universal Studios, and too many others to mention. However, many people don’t realize that Orlando is also home to just about every industry imaginable.

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Demand for Orlando Homes in 2021 Rises

Posted on by Jenny Zamora

When someone decides they want to relocate to Orlando, they want to be sure that they are making the right decision for their families and their personal financial needs. Because of the high demand for housing in Orlando, homes are going to sell quickly.

People are interested in buying real estate in Orlando because of the great location of the city, a large number of schools, and course the entertainment and dining options.

People moving to Orlando will find many job opportunities available in every industry. Many young families make the move because of the great options in public schools and great neighborhoods such as Hunter’s Creek. Hunters Creek Fl was voted the 21st best neighborhood to live in in the US by CNN’s Money magazine.

For the past several years, Central Florida has been on the fast track to becoming one of the most desired places to live in the US. Whether you’re single looking for City life or looking to buy a home and raise your family, you’ll find that there are plenty of great homes and neighborhoods to choose from.

The City of Orlando has many older neighborhoods that offer the romance and charm many young couples seek. The proximity of the downtown area means that you’re just steps away from great options in dining and entertainment and fantastic city views.

If you have kids, you’ll enjoy being near Walt Disney World, and a whole bunch of other theme and amusement parks of which are too many to name. There is never a shortage of things to do when you live in the “City Beautiful”.

This creates a huge demand for housing in the Orlando area. To meet this growing need for housing, Realtors in Orlando is as competitive as ever trying to secure a home for their potential buyers and getting top dollar for real estate listings. The Orlando real estate market has been performing so well compared to other cities around the country people are moving to.

Now, if you were looking for a bargain in Orlando homes, you won’t have as good of a selection. But, if you have an experienced Orlando Realtor helping you, you could still find some great deals on single-family homes. Because the demand for homes in Orlando is very high at this time, new home builders aren’t offering many incentives as they would in a buyer’s market.

If you are a first-time homebuyer, you may want to start by looking into the Orlando real estate listings. You can do this by having your Orlando real estate agent send you the most current MLS Listings. You have to be ready to move quickly once you find what you’re looking for.

Right now, the top home types for those looking to purchase a home in Orlando are Single Family Homes, Townhomes, Condos, Mobile Homes, and duplexes. The Orlando MLS Listings shows that the inventory of single-family homes is slightly above the demand. Condos and mobile homes are lower in demand right now, but still higher than the inventory. Townhomes are the lowest in demand and the highest in inventory right now. The low inventory is good news for buyers because there are so few of these home types for sale.

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Foreclosure, Forbearance or Short Sale?

Posted on by Jenny Zamora

Foreclosure

When it comes to homeowners delinquent on their mortgage, three options that may be offered are foreclosure, forbearance, or short sale. A foreclosure occurs when a bank sues the homeowner for being delinquent on the mortgage. Either the homeowner has to bring the account current by paying any missed payments and late fees… or the lender will continue with the foreclosure process.

If the foreclosure is completed, it means the home will be sold at a public auction. If the bank doesn’t get an offer that meets their reserve, they will end up taking back the property and selling it as an REO property [real estate owned]. During the foreclosure process, the homeowner may continue to live in the home up until the foreclosure happens. Even after the property gets foreclosed on, homeowners have a period of time to vacate depending on what state it occurs in.

Forbearance Agreement

Another option is to ask your lender for a mortgage forbearance agreement. A mortgage forbearance is designed to help homeowners who are experiencing some type of financial hardship. It’s a repayment plan where a lender suspends or adjusts the mortgage payment for a pre-determined amount of time. The purpose of the mortgage forbearance is to allow a mortgagor to keep their property while they have time to repay the mortgage. Regardless of what the forbearance agreement is, the outstanding loan balance will still need to be repaid to the lender in full.

The duration of a mortgage forbearance can range from 6 months to 10 years, and the mortgage is usually placed in escrow at the end of the term.

What Happens If I Default On Mortgage Forbearance?

If the homeowner fails to meet the terms of the new agreement, foreclosure proceedings will eventually begin again. In many cases, the bank will offer the option of a mortgage forbearance extension to the mortgagor to avoid the foreclosure process. It is often an attractive incentive to the borrower because it does not have to be paid until the end of the term of the loan.

The borrower must decide whether to accept the extension of the mortgage or not. What are the benefits of doing so?

In addition to giving the borrower a second chance to redeem their property from foreclosure. Extending the forbearance agreement also gives the homeowner another opportunity to refinance their loan and possibly get a better price.

Short Sale

If a homeowner is denied an extension on their forbearance, then doing a short sale on the home may be the best option. A short sale is when a lender accepts a discounted amount on what’s owed on the mortgage.

Orlando Short Sale Experts


A short sale happens when a homeowner can no longer afford to make the mortgage payment because of financial hardship. Another condition that must be present for a short sale is the home must be worth less than what’s owed on the mortgage.

The homeowner will be required to submit a complete short sale package. If there is equity in the home, the homeowner could just sell the home as a normal sale and pay the bank from the proceeds.

It can be very costly for the lender to take someone through the foreclosure process, which is why a short sale can be a great option for both parties. The bank requires the homeowner to list the home with a local short-sale realtor. This is great for the homeowner because the short sale realtor will work with the lender to short sell the home. There is a lot more work involved in processing a short sale as opposed to a traditional listing.

Work With A Short Sale Expert

If you end up choosing to do a short sale, you must hire a short sale specialist. This is an agent that specializes in doing short sales and is up-to-date on the State’s rules and regulations. Many lenders offer cash incentives to borrowers to agree to a short sale depending on what lender.

Another benefit of working with a short sale expert is they have established relationships with every major lender. Good communication is key when working a short sale with any lender.

Benefits of A Short Sale

  • Avoid Foreclosure
  • Avoid Bankruptcy
  • Eliminate Mortgage Debt
  • Less Damage to your Credit- has less of a negative impact than a foreclosure
  • Get Cash Back at Closing [depending on the lender and situation]

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How To Extend Your COVID-19 Mortgage Forbearance

Posted on by Jenny Zamora

If you received a mortgage forbearance due to COVID-19, your payment suspension could be about to expire. If so, you must request an extension before the initial forbearance agreement expires. It’s important to know that a forbearance extension through CARES isn’t guaranteed. The CARES Act [aka] Coronavirus, Aid, Relief, and Economic Security (CARES) Act.
was signed into law on March 27th of 2020. If you aren’t sure, contact an experienced Orlando Realtor to assist you.

The act granted homeowners who were financially affected by the coronavirus a 6-month temporary suspension with no penalties. That means the first forbearance agreements began to expire at the end of October 2020.

The CARE Act also allowed for a 180 forbearance extension… as long as the homeowner requests before the initial agreement expires.

MAIN POINTS

  • The CARES Act provides up to 360 days of mortgage payment forbearance for homeowners with a federally backed loan.
  • The initial forbearance can be for up to 6 months with one 6 month extension.
  • You must request the initial forbearance from your bank as well as the extension. Neither one is automatic.
  • To apply for an initial forbearance or an extension, contact your lender.
  • Typically, forbearance freezes delinquency, which also stops foreclosure.
  • Most lenders offer COVID-19 related forbearance. For private lenders rules and conditions vary.

What Loans Qualify for Forbearance Under the CARES Act?

The CARES Act forbearance applies to mortgages backed by the federal government:

  • Loans insured by the Federal Housing Administration
  • Loans insured under section 255 of the National Housing Act.
  • Loans insured under section 184 or 184A of the Housing and Community Development Act of 1992.
  • Loans insured by the Department of Veterans Affairs.
  • Loans insured or made by the Department of Agriculture.
  • Loans insured by the Federal Home Loan Mortgage Corporations (Freddie Mac) or (Fannie Mae)

Apply For Your Extension Through Your Lender

If your loan forbearance is about to expire and you still can’t make the payments, contact your lender immediately. Check your mortgage statement for the contact information of your mortgage servicer.

Your lender should notify you before the expiration of your current forbearance. Don’t take a chance! If you’re not sure when your current forbearance expires then call your servicer to tell them you need an extension. If you’re unsure or need some help, feel free to contact us at https://orlandorealtyconsultants.com/ for immediate assistance.

Before you contact the lender, visit their website for any mortgage relief options available.

The CARES Act only requires that you request an extension and by law… you shall receive one.

Get It In Writing!

Although the law doesn’t require your forbearance request to be written, it’s a good idea to ask your lender for documentation detailing the terms of your agreement.

Things to keep in mind:

  • To get the extension, you don’t need to submit additional documentation. Only your claim to have a coronavirus-related financial hardship will be required.
  • During the time of your forbearance, additional fees, penalties, or interest will be waved.
  • You have the option to shorten the forbearance and continue to make payments at any time. Let your lender know of the change.

If you still haven’t asked for your mortgage forbearance, don’t worry… you may still be able to as long as the emergency declaration is still in effect. You can check with your local Orlando real estate agent to get informed.

What About Private Lender Forbearance Agreements?

If you have a mortgage through a private lender you’ll have to contact them and see what they’re offering. Because your lender will have their own set of terms and conditions, you’ll need to pay close attention to the fine print. For example, some private lenders may want you to pay a balloon payment for missed payments and interest.

During Your Forbearance

During the time of your Forbearance, while preparing for life after your forbearance expires, there are a few things you should be doing…

  • Maintain copies of ALL written documents pertaining to your forbearance agreement.
  • Check your monthly mortgage statements carefully to make sure there are no mistakes.
  • Pause auto-payments for your mortgage during your forbearance.
  • Carefully monitor your credit report for any errors and make sure your lender is reporting your status correctly
  • Prior to your forbearance expiring, be sure to have a plan in place with your lender for you to repay what you owe.

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Right Of First Refusal Explained

Posted on by Jenny Zamora

In my 16 years of being an Orlando Realtor, I’ve been asked by dozens of clients to explain what a right of first refusal is and how does it work.

When you are selling a house, you may encounter a situation where the sale is contingent upon the buyer selling the home they live in before buying yours.

So, is it a good idea to accept an offer like this? Accepting an offer such as this is OK as long as you include a “right of first refusal” aka “kick-out clause” contingency in the contract.

It’s pretty rare to get an offer with a home sale contingency, but it does happen occasionally and depending on the situation, sometimes it’s a good alternative.

What’s a right of 1st refusal?

Right Of 1st Refusal Explained

If your Orlando home has been listed for a while with little or no offers, you may be willing to make your terms more attractive to buyers. For instance, if a buyer came along and wanted your house but they can only afford it after they’ve sold their current home. Accepting an offer that includes a home sale contingency involves a bit of risk if you don’t structure the deal correctly.

When one of these offers is presented to one of my clients, I insist on including a right of 1st refusal clause in the contract or we don’t accept it. The purpose of this clause is to allow you to accept an offer like this while continuing to market your home to other interested buyers. You’re telling the buyer that you will continue to actively Market the home until the buyer completes the purchase.

Here’s how it works…

If a different buyer makes an offer on your home while under contract, you have to give the original buyer the option of eliminating the home sale contingency for the sale of their current home and purchasing your home within a pre-determined amount of time, usually between 24 and 72 hrs.

If the original buyer fails to buy your home within that time frame, then you have the right to sell your home to the second buyer.

Working as a top real estate agent in Orlando FL, I’ve closed several of these transactions successfully. Sometimes they worked out and everyone was happy and other times it didn’t work out for the buyer. In every instance, the seller was protected because we used the 1st right of refusal contingency.

What to Look For In A Right of 1st Refusal Clause

If you have your home listed with a realtor and you receive a purchase agreement with a kick-out clause, there are a few things to look for like the following:

  • How much is the buyer offering on your home?
  • How much time are they asking for to complete inspections?
  • How long are they asking for to obtain financing?
  • What is the closing date?
  • How long do they have to respond if you end up getting another offer?
  • Is their current home already being marketed for sale?… It better be!

Why Would A Buyer Accept A Kick-out Clause?

Many of you might be wondering why a buyer would even accept a clause like this when it puts them at a disadvantage. Think about it…anyone who makes an offer that’s contingent on selling their own home first is already in a bad position.

It’s human nature for people to view things from their perspective without thinking about it from the opposite side of the table. Think about it…If you were in a situation where you’re struggling to sell your home, you may get super happy to receive an offer like this one!

Understand, however, that a buyer like this is more than likely facing his or her share of struggles and the road to the closing table will probably be a bumpy one.

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