Record numbers in Orlando Tourism is contributing to the shortage of Orlando real estate.
Increasing numbers of domestic tourists are buying up Orlando properties creating a noticeable decrease in nice Orlando homes. Who could blame them? This is a great place to live and even better place to visit. It seems everyone wants their own little piece of Orlando Realty. The majority of tourists that buy Orlando Real estate, intend to use these properties as vacation homes or second properties.
Orlando is considered to be the world’s top destination for families.
The theme park capital of the US attracted over 55 million visitors last year. As a matter of fact, Orlando beat out New York to be the first tourist destination to attract more than 50 million visitors in a single year. Thriving tourism means more demand for quality Orlando properties, especially for the neighborhoods located close to the theme parks like Disney World. Although some people choose not to rent out their vacation home most people do. Homeowners are cashing in on the Orlando short term rental market. Since Orlando never really has a low season, savvy out of state landlords are able to pull in a steady stream of income all year round.
So what does these mean for the future of Orlando real Estate? Increased sales means a continued stabilization in Orlando realty and I really can’t think of a downside. We can only assume that this will translate into an even higher sense of urgency for potential Orlando home buyers.
Orlando Real Estate Sales are being affected by appraisers who fail to recognize appreciation
With the current Orlando Real Estate market on the rise, appreciation has become an actual factor again. It’s very common these days for an Orlando property to receive multiple offers on it thousands of dollars above the asking price, especially in the more desirable Orlando neighborhoods. One of the problems we are seeing here is that appraisers rather than taking into consideration the recent appreciation of a property, are just looking at the original listing price and are trying to get as close as they can to it.
The big problem with that is, if the house doesn’t appraise for the contract price, then the bank won’t finance the deal. At this point, there are three things that can happen.
1- The buyer can make up the difference by bringing cash to the transaction [This hardly ever happens]
2- The buyer will want to change his or her offer to the “appraisal value”, however the seller now believes their property is worth more than the original listing price and will refuse to go down on the price.
3-The deal falls apart and the process starts all over again unless the buyer can get a different lender or appraiser or both to try and make the deal go through.
Any way you choose to look at it, bad appraisals are affecting Orlando Realty sales.
Are Orlando Appraisers afraid of history repeating itself?
Back in 2004 through 2006, many appraisers ended up in deep trouble because of overinflated appraisal values. Things were soo crazy back then that it was common for Orlando Real Estate Investors to tell their appraisers what value they wanted the property to come in at and that’s what it would come in at. Everyone was making soo much money that nothing else seemed to matter. Fast forward to 2007- The doo doo hits the fan. Appraisers among other people in the industry such as mortgage brokers, etc. ended up in serious legal trouble for fraud. Inflated appraisal values, bad loans, illegal kickbacks, you name it, and any real estate professional with a license was getting in trouble for it.
I don’t blame appraisers for being extra cautious about not turning in inflated appraisals. That being said, I think that some appraisers are going to the opposite extreme now and are under appraising properties which are having a negative effect on Orlando Home sales.
Here’s a tip on dealing with the appraiser
Make sure the agents on both sides of your transaction have created a CMA [Current Market Analysis] that demonstrates how the market has changed in the past six months or less. Then make sure the appraiser gets a copy.
Your sale or purchase doesn’t have to be jeopardized simply because the appraiser doesn’t have — or chooses not to collect — all the relevant recent facts.
I’ve heard of this happening time and time again. The realtor gets the short sale done, the bank signs off on everything and everyone goes home happy. Then, one day the seller goes to check his credit report a year later and finds out that he still has an outstanding debt with the lender that approved the short sale on his house. Even though the seller has all the closing documents, the approval letters, and copies of the wire transfers to prove them wrong, it was still showing a delinquent loan.
You would think that this would be an easy fix, just provide proof of the transaction to the bank and they would report that everything was paid to the credit bureaus. Not always true. This situation has the potential to become a complete nightmare for the former homeowner. Sure you can spend countless hours and phone calls trying to get it resolved yourself, but the chances of that happening are slim.
Make Sure your Orlando Short Sale Agent follows up after the closing
After you’ve completed the short sale with yourOrlando Realtor, make sure that you or your agent follow up with your lender after the closing. It is absolutely crucial that the satisfaction of mortgage is recorded, if not, then you’re still on the hook for the balance in the banks’ eyes as well as the credit bureau’s eyes.
Banks are made up of people and people make mistakes all of the time. Sure, they have people in place whose only job is to look over these documents to make sure there are no errors and also to make sure the payoff gets recorded, but even they make mistakes. One thing is for sure, no one will care about your situation as much as you will.
I’ve been an Orlando Short Sale Realtor since 2004 and I learned early on that when dealing with Orlando Short Sales there are some extra steps that need to be taken as opposed to just a regular closing. Short sales can get very complicated at times and if you don’t know how to navigate your way through them…well…remember what happened to the “Titanic”?
As an Orlando Short Sale Expert, I have a system in place in which closed short sales get followed up with until the payoff to the bank has been recorded, at no charge to my clients. So as far as “Orlando Realty Consultants” is concerned, it’s not closed in our eyes until the client receives a “satisfaction of mortgage”. Unfortunately, most realtors just assume that everything has been done the way that it’s supposed to be done, collect their commission, and don’t give it another thought. This means that it falls on you.
Get a Credit Report after your Short Sale Closes
It’s a good idea for all of us to check our reports every so often. However, if you’ve completed an Orlando short sale recently, getting a credit report is not only recommended but necessary to ensure that you are free of your short sale lender once and for all. A good place to do that is at your bank.
Still, have questions? Call us at 407-902-7750 to consult with an Orlando short sale expert.
Jenny Zamora, Lic RE Broker/ Short Sale Specialist
Orlando’s summer home-buying season is here. With school being out, parents don’t have to worry about pulling their kids out before the end of the year. There is a sense of urgency in the air and potential home buyers are scrambling to buy a piece of Orlando Realty before the beginning of the new school year. Potential Orlando home buyers are out in record numbers actively searching for their next home. The problem is that there is just not enough inventory to keep up with the demand for Orlando Real Estate.
As an Orlando realtor, I am constantly showing homes to potential buyers, and finding the right one is not always an easy task. When I come across a terrific Orlando property that my clients love, I will almost always recommend them go above the asking price. Orlando real estate is a hot commodity once again and when you find a great deal, you’d better move fast or be ready to miss out. Now that the summer is upon us this is more true than ever.
When it was a buyers market, I would have to show a potential home buyer between 6 and 10 homes before they would even consider putting in an offer on one of them, buyers had the luxury of being extra picky. This made things a lot harder on realtors forcing many Orlando agentsto pursue other ways to make a living.
Submitting a full price offer on an Orlando Home may not be enough
The problem these days is that you can’t make an offer soon enough. And sometimes when you send in the offer and there are already multiple offers on the table. Although this can get frustrating for buyers, part of being an Orlando realtor is to guide our clients on their home buying mission every step of the way. If a client of mine really likes a certain Orlando property, I will almost always suggest that they offer more than the listing price to ensure that they have a chance at getting their offer accepted.
Following up with the Agent is Crucial
The sign of an experienced Orlando Realtor is that they know how to follow up. Many times, listing agents get overwhelmed and if you don’t stay on top of them, your offer could get pushed to the side or end up on the “back burner”. It’s the realtor’s job to not only submit the offer but to make sure the offer was received and follow up, follow up, follow up. Unfortunately, there are agents out there that don’t always follow the rules like they are supposed to so that they can drive up the price and increase their commission. This is why it’s important to have a Top Orlando Realtor looking out for your best interest.
Right now may be the best time to Sell your Orlando Real Estate
If you are an Orlando homeowner, you may be asking yourself, ” Should I put my house on the market now, or should I wait another six or eight months?
Here’s what I think, The inventory for Orlando Realty has decreased dramatically. This means that Orlando real estate values have increased and buyers are sometimes having to go through bidding wars with other home buyers to get the home that they want. The fact is that buyers just don’t have the power that they had 2 years ago and they know it.
Here’s what I suggest; Contact an Orlando realtor who is experienced in your neighborhood. The agent should be able to pull data showing you recent sales [within the past 2 or 3 months] and tell you how much your house should sell for within what time period. The best part is that Consulting with an Orlando Realtor doesn’t cost you anything and there’s no obligation. You can get a feel for what the market will give you before making a commitment. You have nothing to lose.
Make Sure You are selling your Orlando Property for the Right Reasons
If you know exactly why you are selling then it is easier for you to follow the right plan of action for getting what you want. If you are a seller who needs to close a sale as quickly as possible, then you should know that getting the highest price possible is not one of your priorities. It does not mean that you won’t or cannot get the highest price, but it means that the price is not the deciding factor. A buyer who can give you a quick closing time will appeal much more to you than a buyer who can offer you more money but the negotiation and closing time drag on.
It’s always good to know how low you will go on your Orlando Property, in terms of selling price. This will help to eliminate some of the offers that you find simply offensive or ridiculous. Even though you should consider all offers seriously and take into consideration the terms of each offer, sometimes, if you know the bottom line and are strict about it, you can save yourself time. Once you know what your limits and reasons are, discuss them with your Orlando agent so that they can help you set your goals realistically. If you decide to list your home on your own, make sure you do research on the current market, and you get the proper advice you need in terms of legal issues, etc. The key is to be realistic and to know what your goals are so they can be met.
Finding the Best Orlando Realtor for You
I you’re in the market for an Orlando Real estate expert, check out 9 critical things you need to ask a realtor. By following what is outlined in the list, you will have a blueprint on hiring an Orlando agent that will work for you.
Jenny Zamora Lic Orlando RE Broker Since 2005. Ask me anything, I’m here to help.
