Category: Orlando Real Estate

Orlando’s Real Estate Boom and How to Take Advantage Of It

Posted on by Jenny Zamora

The Orlando real estate scene has seen renewed residential construction activity this year. According to Real Data Apartment Market Research, more than 6,100 dwelling units are being constructed in the Orange and Seminole counties – double the count of September 2012. Central Orlando and the areas near the University of Central Florida have seen frenetic construction activity. Another 5,000 units are being considered for development in Orlando.

Price recovery

Resale homes from Orlando short sales residential markets are now selling at a higher price compared to last year. The average resale price for a single-family unit in the four-county metro area of Orlando is $172,000 – an increase of 22.9% when compared to the previous year’s price. It is a clear sign that the economy is progressing towards recovery.

How to take advantage of Orlando’s short sales

Foreclosures usually mean an advantage for would-be buyers. But all is not rosy on the property front. Short sales are usually accompanied by costly problems. Buyers must be aware of a few facts before they sign the check to buy a short sale property.

   * Property problems should not be ignored. Prospective buyers should understand that the previous owners were unwilling to part with the property. They tend to take their frustrations out on the construction before leaving. Many of the original owners willfully damage the interiors before they move out. Besides this, many Orlando short sales properties have been lying vacant for an extended period of time. This gives rise to mold, termites, leaks, and filth. Squatters further damage the residential unit.

* This problem is further compounded by the fact that banks are not required to furnish the disclosure statement generally required from a standard seller of a property. It would not even reveal whether the dwelling unit was constructed from quality materials or not. The rule of thumb, in this case, is that if the house is between 15 to 30 years of age, then there is a strong possibility of it requiring some expensive repairs.

*The buyer should physically inspect the home. It is better to physically go to the house and ask all the required questions. If there is an existing problem, the buyer should ask for repair estimates. If required, specialized inspectors should be called in before making an offer.

*Insurance and Legal information should not be ignored. A disclosure statement would state whether the house is constructed on a flood plain. If it is so, the buyer will have to pay thousands more a year as additional insurance costs.

If you’re interested in seeing what properties are available, contact an Orlando Realtor to get the ball rolling.

 

Orlando short sale expert

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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. 

Orlando Real Estate Broker

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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Cash buyers fueling Orlando Real Estate market recovery

Posted on by John Conde

The Orlando Real Estate market recovery continues on a positive path and some Orlando realtors claim that the tidal wave of cash deals is behind the recovery. “Florida realtor” studies show that fifty-one percent of single-family home sales are all-cash deals. Cash buyers have a huge edge over buyers that need to qualify for a mortgage and they are preferred over traditional buyers by sellers as well as listing agents.

One reason is that cash buyers have their own money and don’t have to wait on any mortgage company for anything. Also,  sellers know that a cash deal means a quick closing, this can mean big savings for the seller who has to make another mortgage payment for every month that their home is on the market. These days a cash offer doesn’t always mean a low ball offer anymore, investors are aware of the competition and a low ball offer could mean losing the deal.

As Orlando realtors,  we are seeing more cash offers for the full listing price of properties than ever before.

Lower-end properties [under 100k ] are being devoured by investors because of the huge demand for rentals right now. Cash investors are able to buy more of the less expensive properties and turn them into monthly cash cows. And although lower-end properties are also being bought and then re-sold for a modest profit, for the most part, we are seeing them end up as rental properties.

Other investors buy properties with the sole intention of flipping them. They want nothing to do with being a landlord and are only interested in getting in and out of a property as quickly as possible.

These buyers usually have to do some rehabbing in order to see some substantial profit and this means that they are usually pretty limited on how many they can do at once. I have investor clients that will buy one or two properties and then have to wait until the houses are renovated and sold before moving on to the next deal.

So what does this all mean for the Orlando Real Estate market?

I believe that all the cash purchases that are happening right now are driving up prices as well as home values in the Orlando real estate market. And the healthier the market is, the less risk there is for lenders to approve more mortgages for traditional buyers. This is all great news for now and hopefully will be for several years to come.

What worries me is that if home prices continue to rise to unjustifiable degrees, banks will then start giving mortgages to people that can’t afford them, then…2007 all over again!

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Selling Your House? Smarten Up The Exterior For The Best First Impressions!

Posted on by Jenny Zamora

As we all know, first impressions are everything. And this is never truer than when we are talking about houses. If you are planning to sell your house then the single most important thing that you can do to impress viewers is to smarten up the exterior. When a potential buyer visits to carry out a viewing, they will be immediately put in a favourable mood if they like what they see on the approach. Here are some great ideas for making the outside of your house win prospective purchasers:

Tidy Up the Driveway

Driveways often get a little scruffy with weeds growing through concrete or between paving slabs. Head out with a load of weed killer and blitz the unwelcome weeds. Then, tend to the flowers and plants that are meant to be there. Finish off by giving the whole area a good sweep, and then using a pressure washer to thoroughly clean the driveway. Putting a few pot plants along the driveway will help to add a splash of colour to the approach to your house.

A Fresh Coat of Paint

You’ll be amazed at the amount of difference a fresh coat of paint to the exterior of the property makes to the overall look. Old paint that is faded, stained or peeling off sends out all the wrong messages to a buyer, but a freshly painted house suggests that you take as much care with the inside of the house as you do the outside. It will also help set off the windows and doors, and generally bring the whole house together. If you’ve a head for heights then you can paint your house yourself quite easily, but if you’d rather leave it to the experts then call a professional painter and decorator in – it shouldn’t take them long, it won’t cost you much, but the difference will be massive. Your prospective buyers will head to the front door and wait there until you answer it. So, make sure the door is freshly painted so that it looks nice and smart (you might as well paint the window frames too while you’re at it!) and make sure that the doorbell works properly. You might even want to consider getting a new front door if yours is past its best.

Window Boxes

Window boxes are a beautiful addition to the front of any home – they add a splash of colour and make the whole place look far more homely. Choose plants that don’t grow too high otherwise you will risk obscuring the view from the windows. Plant up a window box for each front-facing window, and put it up using secure brackets that won’t weather or deteriorate. Choose a mixture of colours for added impact.

Smartening up the outside of your house is a great way to make sure that your potential buyers get the ‘wow factor when they come to see your house for the first time. Your next step is the small task of sorting the interior out!

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Easy Tips To Help You Redecorate Your Home On A Budget

Posted on by Jenny Zamora

If you want to change the interior appearance of your home to make it more relaxing, more stimulating, more inviting, more calming, or anything else for that matter, it is time that you prepare for some redecorating. After all, you can change the feeling and atmosphere throughout your home with the right design elements, without needing to splurge on a huge renovation project that will knock down walls and change everything about your home.

By focusing on smaller details, you can really alter the appearance of your home to make it more modern and chic and you do not need to break the bank while doing so either. In fact, if you are interested in gaining some valuable tips on how you can redecorate your home effectively and easily while on a strict budget, continue reading.

New Paint on the Walls to Refresh Every Room

Refresh every room quickly and easily by applying a fresh coat of paint on the walls. If your walls were boring before, featuring only white or creamy shades, now is your chance to really have fun with colours. The more colours that you can add to the various rooms throughout your home, the more personalised you can make the space.

Keep in mind that colours affect the mind on a subconscious level. For example, a pale green can be quite soothing, so it is perfect for a room, such as your bedroom, where you wish to relax. A bright red or orange, on the other hand, is really stimulating. In fact, some people choose to incorporate rich, vibrant orange hues into their office environments in order to stimulate creative thoughts and expressions.

To make a space even more dynamic, you can even choose an accent wall on which one colour will go and then choose a complementary colour that will be applied to the other walls in the room.

Purchase Used Furniture to Save Some Money

Just because you are redecorating does not mean that you need to spend a lot of money on brand new furniture. With so many charities, second-hand stores and websites where people are selling their used furniture, you can find the lovely pieces that you are looking for, from kitchen tables and dining room sets to bedroom sets and more, at extremely affordable prices. And the great thing is that the furniture will look like new, thanks to the fact that a lot of these pieces are still in great shape when they are resold to the public.

Add New Art and Décor Throughout Your Rooms

New pieces of art on the walls or decorative vases and statues can really make a difference in changing the vibe of a room. Just be sure to not clutter your space with a lot of different ornaments and frames. Keep it bright and open with just a few accent pieces.

When it comes to redecorating, if you are smart about it, you can stay within budget. Utilize second-hand furniture, affordable paint options and some artwork to completely revamp a space.

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