Category: Orlando Realtors

Newer Homes Preferred by Orlando Real Estate Buyers

Posted on by Jenny Zamora

 

 The real estate scenario in Orlando is a flurry of activities with new homes coming on top in a competition for the buyers. This has created a unique opportunity for the sellers, especially for those selling homes that were built in the 90s, with buyers indulging in a bidding war for these properties. As far as Orlando short sales are considered, the buyers seem to have a lot more negotiating strength when pursuing older properties compared to brand new ones. This is because when it comes to the new properties, they almost certainly get tough competition from affluent buyers.

Analyzing the trend

 The current trend seems to be driven by all sorts of investors, those that are aiming for resale, as well as rent. A report released last month suggests that these investors have been responsible for the inflation in the housing market in Orlando, as far as prime residential properties that were built since 1990 are considered. This could be partial because houses built over two decades ago are often considered to be less appealing as they are more likely to require upgrades and repairs. However, this is something that is not necessarily true as even newly built properties could be in a worse condition as compared to some of the houses built in 90s that are still in excellent shape. 

These older homes can also be highly appealing, especially in pristine neighborhoods in Orlando real estate. However, the overall demand for properties in Orlando has been for greater newer properties. Orlando real estate comprises of about 30% of the houses that have been built since the year 2000. However, only 34% of the sales have been taken place in this group. The report also suggests that a similar trend has been observed for houses that have been built between 1990 and 2000.

One of the distinctions between the newer and older neighborhoods is that most of the homes that are rich in equity are not listed for sale, as compared to houses in areas that have been heavily hit by foreclosure since 2008. Buyer interest for homes built before 1990 has only diminished further;. these houses, which comprise of more than 50% of the real estate properties in the area,  have only made up for as much as 41% of the sales recorded so far, reflecting a negative impact on the market.

 

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Boom Time for Orlando Realtors as Apartment Demand Shoots Up

Posted on by Jenny Zamora

At the moment Orlando Realtors are making hay. It is all in the numbers: the rate of apartment occupancy increased to 94.5% from 93.9% of the previous year. As per the Charles Wayne, Consulting Inc published semi-annual report of residential markets, more than 19,000 units have been taken on lease. The 2009 report for Orlando showed only 87.5% occupancy in the multifamily residential space. So figures indicate a sharp rise in real estate leases in the region.

The real estate picture in Orlando

The rate of occupancy increased in nine submarkets of Orlando. Three submarkets, however, exhibited a slight decrease in demand. Occupancy rates were seen to be highest in the Apopka market. Apopka boasted of an average of 97.1% occupancy in September this year. Osceola County and South Orlando also showed high demand.

There was a discernible softening of demand in the Winter Park, Maitland, and North Orlando region. Only 90.8% of the total apartment complexes were occupied. The data, however, incorporate new projects currently under completion. The Charles Wayne Consulting census collated data from about 660 complexes within the Orlando area.

Approximately 3,000 units are being leased each year in the Orlando region. More than double the number of units are being built every year. The rate of apartment buildings being constructed has at least tripled in the previous two years. About 7,124 units were under construction in September compared to 1,929 units that were being built in September 2012.

Sales and leases

The Orlando real estate agent, Sperry Van Ness Florida sold 9 acres of land on State Road 50 in the Clermont area for a sum of $1.27 million. The seller was represented by Miguel de Arcos, of the Lake Mary office, Sperry Van Ness Florida. The buyer was represented by Karen Wentzell of Schmid Properties and Centennial Bank N.A.

A lease of 11,500 square feet at 755 Rinehart Road in Lake Mary was signed by the Florida Hospital Medical Group. The group was represented by Sarah Castor of the Cresa Orlando. Approximately 3,000 square feet were leased by Night Lite Pediatrics at the Hunt Club Shopping Center in Apopka. The tenant was represented by Bill Bagley, Dunhill Properties Inc. Saul Holdings Limited Partnership, the landlord was represented by Coldwell Banker’s Alana Hogan.

 

           

 

 

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Tips for Estimating Repairs on Orlando Investment Properties

Posted on by Jenny Zamora

Have you ever bought a car without first finding out how much the monthly payment will be or how much it will cost to insure it? Of course not, that would be crazy and irresponsible. You would first find out how much everything will cost to determine if you can afford it or not.  The same thing holds true when you’re talking about buying Orlando investment properties. When you buy a house with the intention of selling it for a profit, it’s crucial that you get the numbers right from the very start or you could end up losing money.

Know the difference between Cosmetic Repairs and Structural Repairs

Just about anyone can recognize when a house needs a paint job, new carpet, or maybe even some minor carpentry repairs. These items are considered cosmetic repairs and can usually be completed with a few thousand bucks depending on the size of the house.  In some instances, you may even want to do some upgrading such as new kitchen cabinets or replacing fixtures, etc. I consider these items to be cosmetic repairs as well though they will be a bit more costly. However,  it’s very important to know if the house you’re about to purchase has any major structural issues with it.

Structural damages to a house can be a game-changer and most of the time will turn a deal into a non-deal depending on the extent of the damage and much it will be to make the necessary repairs. Unless you are a seasoned investor, I would highly recommend that you steer clear of any houses in need of major repairs.  

Some examples of major repairs are as follows:

Updating the Electrical system– Houses that are older [30+] will sometimes need to have the electrical system brought up to code. This can sometimes mean that the whole electrical system will need replacing or rewiring.

Rotten Plumbing – Having corroded or rotted plumbing has the potential to be a rehabber’s nightmare. Plumbing runs through the walls as well as the foundation and leaky pipes can easily cause severe damage over time.

Dry rot and termites-  This can be another major problem to the structure of a house, especially if it’s an older home. There are rafters in the attic as well as studs in the walls that are made of wood and if there is evidence of termites or dry rot, you may be looking at replacing most of it which mean a lot of demolition in addition to replacing the rotted wood.

All of the above-mentioned repairs can cost a lot of money. Also, it can be risky because most of the time you won’t know the extent of the repairs until you start the project and know exactly what you’re dealing with. As an experienced rehabber myself, I’ve seen what I thought was going to be a $5,000.00 repair turn into a $15,000.00.

Keep it Simple

Remember that your goal is to resell the house for a profit. That means that you need to get a good enough deal so that you can do all the repairs and get it sold quickly. My advice to any investor experienced or not is to stay away from homes in need of major repairs. If you have to repair to many things, not only will you end up spending too much money, but it will also take longer to get the house ready to put on the market. Like that old saying goes “Time is money” and another month or 2 of carrying costs while your house gets repaired can mean thousands out of your pocket.

Follow this simple formula when looking at investment properties

1-Enlist the help of an experienced Orlando Realtor in the area you wish to buy-in.

2- Determine the value of the home after repairs. Always expect your house to sell for less than the lowest comp in the area.

3- Determine how much you will spend on making repairs then add on another few thousand to it to be safe.  You should also add your projected carrying costs to the budget.

4- Price the house correctly from the start, too many people make the mistake of pricing the house too high and it ends up sitting in the market for several months and they ultimately end up lowering the price anyway.  This is where a good Orlando realtor can help you tremendously.

By following these basic guidelines, you will have a much better chance of making a profit once the house is ready to be put on the Orlando real estate market.

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SunRail Access Makes an Entry into the World of Orlando Real Estate Amenities

Posted on by Jenny Zamora

The brand new commuter line covering 31 miles, SunRail is all set to begin service in less than 6 months. However, a handful of Orlando realtors have already started to use SunRail along with their real estate listings in Orlando. Realtors in and around Orlando and other parts of Central Florida have started listing proximity to the SunRail station as one of the amenities to advertise their property.

Expectations from SunRail

 A large number of Orlando realtors are of the opinion that the billion-dollar rail line is likely to drive up the value of Orlando real estate prices in and around the areas where the SunRail stations are located. Many realtors are also expecting that the new commuter rail is also likely to increase sales in Orlando. However, market research has shown that the new transit line may not have a significant impact on real estate prices. But, the realtors are hoping for the best as earlier case studies and reports have suggested that commuter lines play a role in real estate prices. However, the rate of acknowledgment may depend greatly on the type of rail line.

Mixed reactions

 While the realtors seem to be highly optimistic about the SunRail commuter transit, the market researchers have been skeptical if the SunRail would lead to any rise in the cost of real estate. One of the researchers, Mike Duncan suggests that commuter rail stations that include spacious parking lots are generally meant for commuters that live farther away from the station. He also says that these type of Par and ride type of facilities generally have a tendency to have an impact on properties that are in close proximity to the stations.

However, he also suggests that prices of properties located in close proximity to other kinds of transit systems have a tendency to increase once the new system has been announced. As a result, once the transit system is in full function, the prices may experience a rise depending on the market conditions and the scope for further development. In concurrence with Duncan’s findings, real estate agents in and around Orlando have not yet observed any sales driven by the prospect of proximity to the SunRail station as of now. In addition to this, people are also concerned about the noise and other dangers involved in living in close proximity to a rail station.

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Choosing the right Orlando neighborhood for Re-habbing a House

Posted on by Jenny Zamora

Which type of Orlando neighborhood is best for rehabbing a house?

When you’re looking for an investment home that you intend to flip for a profit you should know that choosing the right location is just as important as choosing the right home. Although it’s true that there are buyers for just about any area in Orlando, certain areas are more desirable than others making it easier on the investor.

Qualities to look for

When considering the neighborhood for a flip, there are some statistics that you should research about the area.

* Make sure that recent sales in the area are homes that sold quickly.

* Ensure that the neighborhood is mostly owner-occupied and not a mostly rental community.

* Homes in the area have maintained their values or even better, they are going up in value.

* Not many houses for sale in the area, too many houses for sale is never a good sign and creates competition for your house when it’s time to sell.

* Be aware that older homes will need much more work to get ready for the market.

 Try Keeping it Close to Home

When you make the commitment to re-hab a house you should know that even if you hire a general contractor to do all the work you will still be making frequent visits to the property. By rehabbing a property in your own area, not only will you have less driving time to get to the property but you’re probably already a bit about the area making your research easier.

However, the area must still be holding its value or going up or it just won’t make sense. A neighborhood that has falling property values because of crime, new highway construction, etc. is never a good choice no matter how close it is to your house.

 Hire an experienced Orlando Realtor

 By utilizing the skills and expertise of an experienced Orlando realtor to find your investment home, you can cut out a lot of the legwork. Realtors not only have access to the MLS but they are also able to provide you with the facts that you need about the area to make the right decision. A good realtor will be familiar with the area as well as the houses thus being able to give you valuable advice that will ultimately translate to more dollars in your pocket when it’s time to sell.

It’s also a good idea to list the property once you’ve finished the repairs. Listing the property with a realtor will give your property maximum exposure to buyers that are currently searching in the area. It’s always a good idea to interview several Orlando realtors before making your decision on which one is the best fit for you.

 

 

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