There’s been a lot of buzz about the rising numbers of foreclosure filings in Orlando. The truth is that the increasing number Orlando Foreclosure filings can be deceiving.
It’s important to know numbers and statistics when you’re a Realtor, it’s even more important to know why things are playing out the way they are.
One of the main reasons that the number of foreclosure filings are at an all time high is because lenders had no choice but to put things on hold while this whole robo-signing fiasco got sorted out.
Now that the lenders and lawyers have had a chance to determine what was done legally or not, it’s back to business as usual for the lenders holding all those delinquent mortgages. This should lead to a massive increase in inventory and I think we are leading into a “perfect storm” type scenario…In a good way.
This is actually a good thing for everyone involved. Think about it, the seller get’s to proceed with a loan mod or short sale so they can be relieved of their debt and move on with their life, the lender recoups a percentage of their money back, a buyer gets a great deal and an Orlando realtor closes another deal.
It’s a win win for everyone involved.
The fact is… As long as Orlando home prices and mortgage interest rates remain low. It will be a busy year for Orlando Short Sale Realtors.
If you’re considering an Orlando short sale come in for a free consultation with one of our short sale specialists and get all of your questions answered with absolutely no obligation to work with us. You have everything to gain and nothing to loose.
Give Yourself the Best Chance at Selling your Orlando Home
If you’re trying to make your Orlando home a bit more appealing for a potential buyer, then there are some things that you should consider. First of all, not everyone has the same taste as you and so that’s why you should keep it simple when staging your home to be sold.
Never leave things out like family photos, personal keepsakes, and treasured belongings. All of these items should be safely packed away which very often creates open space. Everyone loves open space, it makes the home feel bigger and people can get a better feel for the layout.
Believe it or not Orlando home buyers often make a decision within just seconds of seeing your home about whether or not they want to buy it. So remember that and picture your home through the eyes of your potential buyers. What impression do you get in the first 30 seconds?
Sometimes a neighbor can help you out with this. If you do ask someone to give you an honest opinion about the first impression they get of your home, don’t take it personal if they don’t like some of your choices as far as decorating, just listen.
Here’s a List of easy things you can do to increase your chances of getting a contract on your Orlando property
• Remove all loose clutter inside and out. When you walk up do you see children’s toys scattered across the front lawn or throughout the house? Get rid of it something as simple as clutter can be a deal killer.
• Make sure your yard and landscaping looks as good as it possibly can. Overgrown trees , shrubs and grass are eyesores and it’s the very first look that they get at the home.
• I think it’s always good to get a fresh paint job when selling a home. It makes a huge impact and is relatively inexpensive to do. If painting is not an option, at least touch up any spots that are chipped wore out or can’t be cleaned.
• Remove any furniture that is causing the house to look smaller or that is in the way when you show a potential buyer your home. Most of the time less is more when it comes to bulky pieces of furniture that can absolutely change the look of a room.
• Add artwork to long hall ways. You don’t have to buy artwork that costs thousands of dollars but, if your home has long hall ways, it’s nice to break up the monotony with some tasteful artwork. Use contrasting shades and hues to coordinate with the flooring. When you’re shopping for the artwork or borrowing it from a friend or your real estate agent or homestager, if possible bring swatches of the carpet or flooring and wall paint to match the artwork colors.
• Make the kitchen a focal point. Whether they cook or not, the kitchen is of primary interest to many buyers. Winning over buyers with an appealing kitchen can often convince them that they must have the home. Make sure your appliances are clean, sparkling, and working. Return on investment in the kitchen is usually high and worth every penny, and more, you put into it.
• The bedroom needs to look like a bedroom. It sounds funny, but many people use their bedroom for other things such as an office or storage. Boxes or newspapers are scattered or stacked in a corner. There’s no “ah” or sense of relaxation with that kind of room. So even if that’s how you’ve been living, understand that’s not how you should show a home.
Making your home more appealing means seeing your home through the eyes of your potential buyers. When you start receiving more offers than you know what to do with, you’ll be glad you did.
When you examine the current Orlando real estate market a few things are undeniable. The most important fact, there has been a huge decline in Orlando home prices since 2006. Secondly, the foreclosure inventory is still incredibly large. The third factor is that interest rates remain low. There are two potential ways to look at these things. You could look at these facts and say that we are in weak real estate market and an economy that’s struggling. Orlando Real estate investors however, will look at this scenario and see dollar signs
Currently, Orlando home prices sit around 35% below the peak price of 2006 and is starting to show some signs of a recovery. Foreclosure properties and REO’s are the biggest reason for lower than normal home prices. Even if you’re not in a distressed situation, that’s who you’re competing with. This will not change until there’s a demand for more inventory.
Here in Orlando, real estate is already showing significant signs of recovery. Banks are moving short sale files along a lot faster than they used to and inventory is moving.
There are many real estate analysts that say that we haven’t hit rock bottom yet. However, I believe differently. I think we hit bottom in Orlando about six months or so ago and we’re already on the comeback trail. I don’t think we’ll ever see what we saw in 2006 nor do I want to see inflated home prices.
If you’re anOrlando short sale realtor, you’ve noticed that banks are moving short sale files along much faster than was the case a year, or even six months ago. Although our company has an unusual 100% closing ratio on Orlando Short sales, most brokers close about half of their short sale files, which still isn’t bad considering all the work that’s involved. Not to mention everything that can go wrong throughout the process if you’re not experienced in the Orlando short sale arena.
Even though short sales can take anywhere from 2 months to a year from contract to close, people are willing to wait. Sellers that live in the house that they need to short sale have a huge advantage because they can continue to live in their house rent free until the short sale is completed. This really helps families relieve some financial stress, and ultimately translates into the homeowner being in a much better position financially when it’s time to move.
Potential Orlando home buyers also don’t mind waiting because they know that the payoff will be worth it if they are willing to stay in there and play the game. I believe that right now is the perfect time to buy an Orlando Home. The market is starting to stabilize but you can still get a good deal on an a great Property. This time next year people who were going to buy Orlando Real Estate and never did are going to be kicking themselves.
Best Practices for Dealing with Orlando Short Sales
Orlando Short sales are distressed properties in that sell, by mutual agreement between the buyer, homeowner, and the mortgage co, for less than what is owed on the property.
If you’re a seller and you need to stop an Orlando foreclosure on yor hoome, this a great way not only stop the foreclosure, but to get out of debt with your lender, and many times even walks away with cash from the closing. The best part is that it doesn’t cost you anything so you have nothing to lose! That’s not all… you can continue living in your house mortgage free while the short sale is being processed which can be for up to 2 years in some cases [depending on the lender].
For buyers, it’s a great way to obtain a real estate investment. Yes, they can be tricky to find and obtain, but are worth the work… sometimes.
Here are 4 tips for short selling in today’s real estate market.
1. The short sale realtor The final price for a short sale is determined by the lender, not you or the buyer. Many buyers have learned this the hard way because they submitted an offer that did not come anywhere close to the bank’s asking price. This doesn’t mean you have to lock yourself into the asking price, but you do have to start from there and work your way down. Doing this will increase your odds of the bank accepting your bid. Unfortunately, if you have an Orlando realtor that is not experienced in doing short sales then you have a big problem. The realtor has to be willing to negotiate with the bank and be ready to show proof as to why the offer is what it is by doing a market analysis on the property among other things.
An Orlando Short Sale Expert will go back and forth with the lender several times before coming to a mutual agreement that works for all parties involved. With some lenders like B of A we’ve had short sale files that have taken over 2 years to close. If your Orlando realtor is not willing to be persistant and stay the course with the lender for as long as it takes, then you probably hired the wrong Orlando real estate agent for the job.
2. Be careful of going too low Another tip is to avoid going too low when you submit your offer. A bank has to balance the benefit of having a buyer take the property off of its hands without having to go through foreclosure and spend more money versus accepting far too little for the property and missing out on a lot of money. If your offer is too low chances are that they won’t accept it. However, a good realtor will guide you through this process as well.
3. Have your Orlando agent check comparable homes This one should go without saying. You have to know what the true value of the property is, as well as how much, if anything, you plan to spend on repairs or upgrades. If there are substantial repairs that need to happen, this can be great for justifying your offer. This is why you should work with an experienced realtor so that he or she can you through this process.
4. Have your Financing Ready When you’re searching for an Orlando short sale, make sure that you have your financing in place and ready to go. If your realtor shows you a property that you love, chances are that someone else loved it to and usually the first person to submit a solid offer to the bank will get their offer accepted. If you’re a cash buyer then your offer stands an even better chance to get accepted.
Remember, Shortsales take time and you have to be patient . If the bank rejects your first offer, which happens a lot, address their concerns and make them a counter offer. Thousands of Orlando properties that were purchased would not have been bought if the buyers sdid not stay the course and stick it out. Considering the stabilizing market my advice to clients is to send in your highest and best offer from the start. I’ve had clients lose their dream house over a couple thousand dollars and every single one has wished that they would’ve gone up that extra two or three grand.
