Steps to Buying a House for the First Time in Orlando, FL

Posted on May 25, 2026February 24, 2026 by John Conde

If you’re buying a house for the first time, the steps are: set a realistic budget, get pre-approved, choose the right neighborhood, tour homes, make an offer, complete inspections and financing, confirm value with an appraisal, and close. The key is doing things in the right order so you don’t waste time—or money—when a good home hits the market.

What “first-time homebuyer steps” really means

Most first-time buyers think “find a house and get a mortgage.” In real life, it’s a checklist with deadlines, documents, and decisions that can cost you thousands if you guess wrong. The goal isn’t just to get an accepted offer—it’s to buy the right home, at the right price, with terms that protect you, and to reach closing without surprises.

Before you start: the 3 numbers that control everything

In Orlando, buyers get into trouble when they shop based on a “monthly payment” someone tossed out without the full picture. Start with these three numbers and you’ll make smarter choices from day one:

Comfortable monthly housing budget: mortgage + taxes + insurance + HOA (if applicable).
Cash available: down payment + closing costs + reserves (and any moving/repairs you’ll need right away).
Credit readiness: your credit profile impacts approval, rate, and overall buying power.

The step-by-step process to buying your first house

Step 1: Define your “must-haves” and your non-negotiables

Keep your list realistic. “Perfect house” thinking is how buyers miss out. In Orlando, prioritize what affects your daily life and resale value:

Commute time and access (408, I-4, 417, SunRail, etc.)
School zoning (even if you don’t have kids—resale matters)
HOA rules and fees (some communities have strict rental, parking, and pet rules)
Flood zone considerations and insurance implications

Step 2: Set a real budget (not a “max approval” budget)

Just because a lender approves a number doesn’t mean you should live at that number. You’ll still have utilities, maintenance, and life. A smart budget leaves breathing room for:

Insurance changes (especially with Florida’s insurance market)
HOA increases
Repairs and replacement items (AC, roof, water heater, appliances)
Property tax adjustments after purchase

Step 3: Get pre-approved with a local lender (and compare options)

Pre-approval is your leverage. It tells sellers you’re qualified and helps you move fast when a home hits the market. A solid pre-approval typically requires documents like pay stubs/W-2s, bank statements, and permission to pull credit.

Tip for Orlando: A local lender who can communicate quickly and hit contract deadlines can make your offer stronger than a slightly higher offer from a shaky lender.

Step 4: Choose the right team (buyer’s agent + lender + insurance)

Buying a home has a lot of moving parts. A strong buyer’s agent helps you price the home correctly, negotiate terms, and protect you with the right contingencies. Your lender and insurance agent should be looped in early so you don’t get surprised by payment jumps, HOA requirements, or coverage issues.

Step 5: Start shopping the smart way (online + tours + strategy)

Online browsing is useful—but don’t rely on it alone. Some listings look great online and feel totally different in person. Also, pay attention to how quickly homes are moving in your target area and price range.

If you want to understand how listings flow, it helps to know the role of MLS.com and how buyer demand impacts pricing and negotiation in different Orlando neighborhoods.

Step 6: Make an offer that protects you (price, terms, and deadlines)

First-time buyers focus on price, but terms can be just as important. A clean, well-structured offer can beat a slightly higher offer if the seller trusts it will close.

Price: based on true comparable sales, not just list price.
Deposit and deadlines: show seriousness without taking unnecessary risk.
Contingencies: inspection, financing, and appraisal protections (when appropriate).
Seller concessions: sometimes smarter than trying to “win” on price.

Step 7: Schedule inspections and negotiate repairs (or credits)

Once you’re under contract, the inspection period is where buyers either protect themselves—or regret it later. Your inspection helps you identify:

Major system issues (roof, plumbing, electrical, HVAC)
Safety issues
Moisture, drainage, and potential mold risk
Deferred maintenance that can turn into big costs

Tell-it-like-it-is: Almost every house has issues. The goal isn’t a perfect report—it’s clarity, fair negotiation, and knowing what you’re walking into.

Step 8: Confirm value with the Appraisal

An Appraisal is a professional opinion of value used by the lender to confirm the home supports the loan amount. If the value comes in low, you may need to renegotiate, bring extra cash, or walk away (depending on your contract terms).

Step 9: Finalize your mortgage underwriting and insurance

Underwriting is where the lender verifies everything—income, assets, credit, and the property details. Don’t open new credit cards, finance furniture, or switch jobs mid-process unless your lender tells you it’s safe. In Florida, homeowners insurance can be a major factor, so handle quotes early.

Step 10: Closing week: final walk-through, closing disclosure, and keys

Closing is the finish line. You’ll typically:

Review your Closing Disclosure (your final numbers)
Complete a final walk-through to confirm the property condition
Sign documents, fund closing, and receive keys once the transaction records

First-time home buying checklist (printable-style)

Set your monthly comfort budget (include taxes, insurance, HOA).
Estimate cash needed: down payment + closing + reserves.
Check credit and resolve obvious issues early.
Get pre-approved and compare loan options.
Pick neighborhoods that fit your lifestyle and commute.
Tour homes and refine your must-have list.
Write an offer with smart protections and clear deadlines.
Complete inspections and negotiate repairs/credits.
Clear underwriting and lock insurance.
Close, get keys, and set up your post-closing to-do list.

Timeline: how long does it take to buy your first house?

Every buyer is different, but this is a realistic “planning timeline” for Orlando. Shopping is the variable—contract-to-close is usually more predictable once you’re under contract.

Phase	What happens	Typical timing
Preparation	Budget, credit review, pre-approval, neighborhood plan	1–3 weeks
Home search	Tours, offer strategy, negotiations	2–8+ weeks
Under contract	Inspections, appraisal, underwriting, insurance	3–6 weeks
Closing	Final numbers, walk-through, signing, funding	1–3 days

Costs first-time buyers forget to budget for

Down payment is only part of the story. Build a realistic buffer for:

Closing costs: lender fees, title fees, escrow setup, and prepaid items.
Home inspection(s): general inspection plus specialty inspections if needed.
Appraisal fee: often paid upfront during the loan process.
Insurance and taxes: can change after purchase.
HOA/condo fees: and sometimes application/approval requirements.
Immediate repairs and basics: locks, blinds, pest treatment, small fixes.

Pros and cons of buying your first home in Orlando

Pros

You build long-term stability and potential equity instead of renewing rent every year.
Orlando has diverse neighborhoods—starter homes, townhomes, condos, and new construction options.
Owning gives you control (renovations, pets, lifestyle), within HOA rules if applicable.

Cons

Insurance and maintenance are real costs in Florida—budget honestly.
Competition can still be intense in certain price points and school zones.
If you buy “too much house,” you can end up house-poor fast.

Common first-time homebuyer mistakes (and how to avoid them)

Shopping before pre-approval: you’ll fall in love with homes you can’t (or shouldn’t) buy.
Ignoring HOA rules: restrictions can affect parking, rentals, pets, and even exterior changes.
Focusing only on list price: terms, condition, and insurance costs matter just as much.
Skipping inspections to “win”: risky move—especially in Florida where hidden issues can be expensive.
Big purchases during escrow: new debt can change your approval.
Not planning for post-closing expenses: moving, repairs, and setup add up quickly.

How it works in Orlando (local context you actually need)

Orlando isn’t one single market—it’s many micro-markets. Your strategy should change depending on where and what you’re buying.

Neighborhood and commute reality

A “10-mile difference” can mean totally different traffic depending on I-4, 408, or 417 patterns. If commute time matters, test drive it during the hours you’ll actually travel.

HOAs and condos are common

Townhomes and condos can be great first purchases, but they come with HOA rules, fees, and approval processes. Some communities limit rentals, which matters if you might relocate later and want flexibility.

Insurance can change your payment more than you expect

Don’t wait until the last minute to shop insurance. In Florida, the premium can vary widely based on roof age, construction type, claims history, and location factors. A great “purchase price” can become a bad deal if the insurance math doesn’t work.

Touring strategy matters

Don’t judge a neighborhood by one street. In parts of Central Florida, a few blocks can change the feel, the noise level, and resale demand.

Helpful resources (use these to learn faster)

Summary and next steps

The steps to buying a house for the first time are simple on paper, but the details make the difference. Start with your budget and pre-approval, shop with a plan, write a clean offer, protect yourself with inspections and smart contract terms, confirm value with appraisal, and get to closing without last-minute surprises.

Work with Orlando Realty Consultants (Central Florida)

If you want a first-time buyer plan that’s clear, realistic, and built around Orlando neighborhoods—not generic advice—reach out to Orlando Realty Consultants.

Business Name: Orlando Realty Consultants
Phone: 407-902-7750
Service Area: Central Florida
Se habla español: Yes—Spanish-speaking support available.

Direct, honest guidance: I’ll tell you what matters, what doesn’t, and how to structure your offer so you’re protected while still being competitive.

Frequently Asked Questions

What are the steps to buying a house for the first time?

Start with a budget and pre-approval, pick neighborhoods, tour homes, make an offer, complete inspections, finalize the loan, confirm value with appraisal, and close. The order matters because it protects your time and money.

How much money do I need to buy my first house in Orlando?

You’ll typically need funds for a down payment, closing costs, inspections, and some cash reserves. The exact amount depends on your loan type, price point, and whether you negotiate seller concessions.

Is pre-qualification the same as pre-approval?

No. Pre-qualification is often an estimate based on what you tell the lender. Pre-approval is stronger because the lender reviews documents and credit, which sellers take more seriously.

How long does it take to buy a house for the first time?

It depends on how quickly you find the right home, but many buyers spend weeks (or longer) shopping and then take several more weeks to close after going under contract.

What should I avoid doing after I’m under contract?

Avoid opening new credit, financing cars/furniture, changing jobs, or making big unexplained bank deposits without talking to your lender first. Any of these can delay or derail final approval.

Do I need a home inspection if the house looks fine?

Yes. A house can look great and still have expensive issues. The inspection is your chance to learn what you’re buying and negotiate repairs or credits when appropriate.

What happens if the appraisal comes in low?

You may renegotiate the price, bring additional cash, challenge the value (if supported), or walk away depending on your contract terms and contingencies.

Are HOAs a deal-breaker in Orlando?

Not automatically. Many great communities have HOAs. The key is reading the rules, understanding fees, and confirming the restrictions won’t conflict with your lifestyle (or future plans).

Should I buy a condo or a townhome as my first home?

It depends on budget, lifestyle, and HOA structure. Condos can offer lower maintenance but may have stricter lending/HOA requirements. Townhomes can feel more like a single-family home but still come with HOA rules and fees.

Can I buy a first home in Orlando and still be competitive?

Yes—if you’re prepared. Strong pre-approval, a smart offer strategy, clean timelines, and realistic expectations make you competitive even in tighter neighborhoods and popular price points.

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Buying a Home in Orlando, Florida? 5 Red Flags You Shouldn’t Ignore!

Posted on March 25, 2025February 23, 2026 by John Conde

Top 5 Red Flags When Buying a Home

The top 5 red flags when buying a home are: (1) water intrusion or poor drainage, (2) roof near end-of-life, (3) unsafe or outdated electrical, (4) termite/pest activity, and (5) unpermitted or sloppy renovations. In Orlando, these often affect insurance, financing, and repair costs—so verify them early and negotiate smart.

Buying a home is exciting—until it isn’t. In Orlando and across Central Florida, a “cute” house can hide expensive problems that show up right after closing. The goal isn’t to be paranoid; it’s to be prepared. This guide breaks down the top 5 red flags when buying a home, how to spot them fast, and what to do next so you don’t buy a money pit.

If you want a broader start-to-finish overview, here’s a solid reference: Realtor.com – Buying Guide.

What counts as a “red flag” when buying a home?

A red flag is a warning sign that the property may have a costly, recurring, or safety-related issue—or a problem that can derail financing, insurance, or resale value. Some red flags are deal-breakers. Others are negotiation points, as long as you verify the cause and price the fix correctly.

The Top 5 Red Flags When Buying a Home (Orlando Focus)

1) Water intrusion, staining, or poor drainage (the most common budget killer)

Water problems are rarely “just cosmetic.” In Central Florida, water can come from roof leaks, plumbing leaks, poor grading, clogged gutters, or a yard that funnels rain toward the foundation. If you see stains, musty smells, bubbling paint, warped baseboards, or persistent dampness, assume there’s a cause that needs proof—not guesses.

What to look for during a showing: ceiling stains, fresh paint patches in one area, musty odor, soft drywall, damp garage corners, ponding water in the yard after rain, algae streaks on exterior walls.
Why it matters in Orlando: moisture can trigger mold conditions, damage framing/drywall, and create insurance headaches. Water history can also affect future resale buyer confidence.
Smart move: ask for disclosure details, get a thorough inspection, and if needed, bring in a specialist (roof, plumbing, drainage, mold assessment) before you remove contingencies.

Competitor coverage commonly flags water damage and flooding as major inspection concerns, often tied to hidden mold and compromised systems. Use that as your baseline—then go deeper with Orlando-specific drainage and roof verification. (See similar emphasis on water-related red flags.)

2) Roof near end-of-life or obvious roof defects

In Florida, the roof isn’t just a maintenance item—it’s a financing and insurance item. A roof that’s old, curling, missing shingles, visibly patched, or sagging can mean expensive replacement and possible difficulty getting affordable coverage.

What to look for: missing/curling shingles, soft spots, dark staining, sagging lines, excessive granules in gutters, interior ceiling stains, daylight in attic (if accessible).
Orlando reality check: storms, heat, and humidity accelerate wear. Even if the home “shows well,” a questionable roof can change your monthly payment through insurance costs.
Smart move: verify roof age with permits/receipts, consider a roof inspection, and negotiate credits or repairs when the numbers justify it.

3) Outdated or unsafe electrical (can be a safety issue AND an insurance issue)

Electrical red flags can be expensive and sometimes dangerous. Older homes may have outdated panels, questionable DIY wiring, overloaded circuits, or wiring types that insurers/lenders scrutinize.

What to look for: flickering lights, warm outlets/switches, buzzing at the panel, double-tapped breakers, messy wiring in the panel, lots of extension cords used as “permanent” solutions.
Why it matters: electrical issues can create fire risk, trigger repair requirements, and slow down closing if the insurer or lender demands updates.
Smart move: have the inspector call out concerns clearly and get an electrician quote before you commit. Use real numbers in negotiations.

4) Termites / WDO activity or pest conditions

In Florida, pests are not theoretical. Termites and other wood-destroying organisms (WDO) can cause serious damage, and some evidence can be subtle—especially if a home was recently cleaned up for sale.

What to look for: mud tubes on exterior walls/foundation, damaged or hollow-sounding wood, piles of wings near windowsills, soft baseboards, active moisture (pests love it).
How it works in Orlando: WDO inspections are common in transactions. If the general inspection hints at activity, a dedicated WDO inspection and any needed treatment/repairs should be addressed before closing.
Smart move: don’t ignore it. Get the proper inspection report and clarify who pays for treatment/repairs in the contract.

5) Unpermitted work, sloppy renovations, or layout conversions that raise questions

Fresh paint and new flooring can be great—unless they’re hiding poor workmanship, water damage, or unpermitted changes. In Orlando, I see buyers get burned by garage conversions, added “bedrooms,” DIY electrical/plumbing, and additions without a clear paper trail.

What to look for: uneven tile, wavy floors, lumpy drywall, mismatched finishes, odd wiring/fixtures, doors that don’t close, “bonus rooms” with no clear HVAC/permits, or a remodel that looks rushed.
Why it matters: unpermitted work can create safety issues, appraisal problems, insurance complications, and resale headaches. It can also limit what a lender will finance.
Smart move: request documentation, verify permits when appropriate, and price the risk. If the seller can’t support what was done, negotiate accordingly.

Red Flags Summary Table (Skimmable)

Red Flag	How to Spot It Fast	Why It Matters	What to Do
Water intrusion / poor drainage	Stains, musty smells, bubbling paint, yard ponding	Mold risk, structural/material damage, insurance concerns	Inspect + specialist if needed; negotiate with real quotes
Roof issues / age	Missing shingles, sagging, staining, patchwork	Big-ticket repair + insurance pricing/eligibility	Verify age/permits; roof inspection; credits/repairs
Unsafe/outdated electrical	Flicker, warm outlets, messy panel, DIY wiring signs	Safety + lender/insurer repair demands	Electrician quote; negotiate; fix before closing if required
Termites/WDO/pests	Mud tubes, damaged wood, wings, moisture hotspots	Hidden damage and ongoing risk	WDO inspection; treatment/repairs negotiated in writing
Unpermitted/sloppy renovations	Rushed finishes, odd additions, layout conversions	Appraisal/insurance/resale problems	Request documentation; permit verification; price risk

Practical Steps: What to Do When You Spot a Red Flag

Document it: take photos/notes during the showing so you remember what you saw.
Ask direct questions: “What caused this stain?” “When was the roof replaced?” “Who did the remodel?”
Get the right inspections: general home inspection first, then specialty inspections (roof, sewer/plumbing, electrical, WDO) if the report suggests it.
Use the inspection contingency wisely: it’s your leverage to renegotiate, request repairs, or walk away if needed.
Negotiate with numbers, not opinions: quotes/estimates are what move a seller, not a vague concern.

Checklist: Top 5 Red Flags When Buying a Home (Bring This to Showings)

Any water staining, musty odors, or signs of recurring moisture?
Does the roof show wear, patching, sagging, or interior leak evidence?
Any electrical warning signs (panel mess, flicker, warm outlets, DIY wiring clues)?
Any termite/WDO indicators (mud tubes, damaged wood, wings) or obvious pest conditions?
Any “too good to be true” remodel areas that look rushed or unverified?

Pros and Cons of Buying a Home With Red Flags

Pros

You may negotiate a better price or seller credits if issues are verified.
Some problems are manageable if you understand scope and cost upfront.
Less competition sometimes means more favorable terms for buyers.

Cons

Repair costs can blow up your budget fast if the issue is bigger than it looks.
Insurance and financing can get complicated (or delayed) with certain defects.
Unpermitted work can create long-term resale and liability problems.

Common Buyer Mistakes (That Cost Real Money)

Falling in love with the staging: pretty furniture doesn’t fix a bad roof.
Skipping specialized inspections: if the main inspection suggests a risk, confirm it properly.
Accepting vague seller answers: “It’s been like that for years” is not documentation.
Not budgeting for closing + repairs: review closing costs and cash-to-close early.
Waiving protections to “win”: in many cases, that’s gambling with your biggest purchase.

How It Works in Orlando (Local Context You Should Know)

Orlando isn’t one single market—it’s a patchwork of older neighborhoods, new construction communities, lake-adjacent areas, and HOA-heavy subdivisions. That changes what “red flags” look like in real life:

Drainage matters a lot: summer downpours expose grading problems quickly. If you can, visit the property after rain or look for signs of recurring ponding.
Insurance is part of the deal: roof condition and certain system issues can affect policy cost and availability—sometimes late in the process if you’re not proactive.
Permits and renovations: conversions and additions pop up often. When something feels “off,” verifying documentation can save you from inheriting someone else’s shortcut.
HOAs are common: rules, fees, and special assessments can change your monthly costs and even what you can do with the property.

If you want to cross-check local services, resources, or city requirements, you can reference City of Orlando.

Money + Market Notes (So You Don’t Buy Blind)

Red flags aren’t only about condition—they also affect your financing strategy and negotiating power. For broader mortgage and housing market context, you can review Freddie Mac – Mortgage Market Data.

And when you’re planning your budget, don’t ignore closing costs. This is one of the cleanest references out there: CFPB – Closing Cost Guide.

FAQs: Top 5 Red Flags When Buying a Home

1) What are the top 5 red flags when buying a home?

The big five are water intrusion/drainage issues, roof problems, unsafe/outdated electrical, termite/WDO activity, and unpermitted or sloppy renovations. These are common because they’re expensive, can be hidden, and may impact financing or insurance.

2) Are foundation cracks always a deal-breaker?

No. Some small settling cracks can be normal. The concern is large, expanding, or unusual cracking patterns, plus doors/windows that don’t align. If you see signs, get a qualified pro to evaluate before you commit.

3) What’s the easiest way to spot water issues during a showing?

Use your eyes and your nose. Look for stains, fresh paint patches in one area, warped trim, and bubbling paint. Smell for mustiness. Outside, look for low spots and ponding near the foundation.

4) Why does roof age matter so much in Florida?

Because the roof can drive insurance cost and approval. A roof near end-of-life can mean higher premiums or required replacement before closing—turning a “good deal” into a costly surprise.

5) What’s “unpermitted work” and why should I care?

It’s remodeling done without the required approvals. It can create safety issues, appraisal problems, trouble getting insurance, and complications when you sell. If a major change was done, documentation matters.

6) Should I still buy a home if the inspection finds red flags?

Sometimes, yes—if the issues are clearly diagnosed and the numbers work. The key is understanding the scope, getting quotes, and negotiating repairs/credits or price reductions in writing.

7) What inspections are most important in Orlando?

Start with a general home inspection. If red flags show up, add specialty inspections (roof, electrical, plumbing/sewer, and WDO/termite). The right inspection depends on what the house is telling you.

8) How do I negotiate after finding red flags?

Negotiate with documentation: inspection findings, specialist reports, and repair estimates. Ask for a credit, price reduction, or specific repairs—whatever best fits your timeline and risk tolerance.

9) What if the seller refuses to fix anything?

Then you decide whether the home is still worth it at the current price. If the risks are big and the numbers don’t make sense, walking away can be the smartest move.

10) Do I need a Realtor for this, or can I handle it myself?

You can do it yourself, but a strong local agent helps you spot patterns, line up the right inspections, negotiate intelligently, and avoid common traps—especially in competitive Orlando submarkets.

Work With Orlando Realty Consultants (Se Habla Español)

If you’re buying in Orlando or anywhere in Central Florida, my job is to help you avoid expensive surprises and negotiate from a position of strength. If a house has red flags, we’ll verify them, price them, and decide the smartest next step—without guesswork.

Business: Orlando Realty Consultants
Phone: 407-902-7750
Service Area: Central Florida
Se habla español: Yes—Spanish-speaking support available.

If you’re looking for a Realtor in Orlando who will tell you the truth and protect your downside, call or text 407-902-7750. Let’s make sure the home you love also makes financial sense.

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Top Low-Cost Improvements For Selling Your Orlando Home

Posted on October 6, 2014May 18, 2022 by Jenny Zamora

Top Improvements For Selling Your Orlando Home

These days there’s more competition for home sellers than ever. To stay ahead of the competition sellers would be wise to utilize the most cost-effective ways to improve their homes making them more attractive to potential buyers.

Typically, there are 2 categories that home improvements fall into. There is the kind of improvements that you do because it’s something personal to you that doesn’t necessarily increase your home’s value, and there are the improvements that you do with the sole purpose of increasing your return on investment.

There are other factors that affect property value that you can’t control like the state of the current housing market in relation to the timing of your sale. Following are some suggestions that will be helpful to you when getting your Orlando home ready for sale.

Clean and De-Clutter

As an Orlando Listing Agent, it’s routine for me to ask my sellers to clean, de-clutter, and organize their homes prior to putting them on the market. This is also the absolute best home improvement you can do for the highest return on your investment. It doesn’t cost much to get some cleaning supplies and get to work.

Move any pieces of furniture that can make the room feel smaller and get rid of as many personal items as possible. Potential buyers want to picture what it will feel like when they live in the home so show them a clutter-free and clean space and let their imagination do the rest.

Fresh Paint

Coming in at number 2 on my list is new paint. This is hands down the most cost-effective way that a homeowner can make the biggest impact on the appearance of their home without breaking the bank. I advise all listing my clients to fill in any cracks or dents on the walls as well as any minor drywall repairs that need attention before hitting the walls and ceiling with a fresh coat or two of paint.

It’s also a good idea to stick with neutral colors whenever possible. Just because you like super bright and flashy colors, it doesn’t mean the rest of us to do. By using wites and off whites, you can’t go wrong with any buyer. These colors are not offensive and can easily be painted over without too much work.

Landscaping

The first thing a potential home buyer sees when driving up to your house is the landscaping. I’ve had times when I go to show clients a house and when we pulled up to the property, they decide they don’t want to go in just based on what they see outside.

Most of the time, all it takes is a bit of trimming, mowing, and weed pulling to give the home a landscaping facelift. Trim the bushes below window height, prune overgrown trees and shrubs, plant a few annuals for color, and mulch in the beds. You’ll be surprised at what a huge difference this can have on your home’s curb appeal.

We can easily continue on with other home improvements like kitchen and bathroom remodels, new flooring, etc. However, these improvements can be very costly and this article is about “low-cost” improvements so I will end it here.

For more tips on how to get your home ready for the Orlando real estate market, feel free to visit our site at https://orlandorealtyconsultants.com/ or contact us at 407-902-7750.

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Orlando Real Estate: Investors hurting first-time homebuyers

Posted on October 19, 2012February 28, 2022 by Jenny Zamora

Savvy Orlando real estate investors are beating first time home buyers to the punch

1st time home buyers looking for their ” dream home” are no competition for the seasoned Orlando real estate investor. People looking for their 1st house to move into with their families are finding themselves being squeezed out of the Orlando real estate market by investors looking to capitalize on the current market conditions. With a growing number of people being foreclosed on each week , Orlando short sales are everywhere and investors know that the rental market will keep getting stronger as homeowners that have been foreclosed on scramble to get into rental properties in addition to people moving into the Orlando area from another state or country.

1st time Orlando home buyers grow increasingly frustrated

I feel bad for my clients who are just looking to buy their first home so that they can get their family moved in and settled. These people have no intention of flipping the house for a quick profit, pulling an equity line on it or renting it out for additional cash flow. They just want to move in, raise a family and do their best to “live happily ever after”. The problem with first time home buyers is that they have to qualify for financing which can take a while sometimes and there’s never a guarantee that they will get approved.

Today’s average seller is very educated on how different types of buyers and terms could affect them. It’s not just about taking the highest offer that you receive.

3 Tips for Sellers when looking at offers

1- Is the buyer pre-approved? I personally won’t even show one of my listings unless I have proof that the potential buyer has already done their due diligence as far as going to a mortgage broker or lender and getting pre-qualified for a loan. The buyer will also know what an affordable purchase price will be for them.

2- Will the house appraise for the amount of the asking price? A seller could have a contract on the property with a pre-approved buyer willing to pay full asking price and the deal can still fall apart. These days lenders will almost always insist on an appraisal being done on the property with an appraiser of their choice, [not the buyer or seller’s choice]. Once the appraisal is ordered by the lender, the lender will work off of the appraisal value and sometimes the property just doesn’t appraise for the amount of the contract price.

Things that can happen if the house doesn’t appraise for asking price.

a- The seller comes down on the asking price in order to make the deal happen. This is what usually takes place because the seller realizes that he will probably run into the same problem again and will ultimately have to lower the price in order to get the house sold.

b- The buyer will have to come out of pocket to make up the difference. This rarely happens unless the buyer is absolutely in love with the home and the seller is unwilling to lower the price.

c- The deal just falls apart.

3- Are your buyers Cash buyers? Cash buyers are almost always investors looking for their next investment property.

Things to consider when you have an “all cash offer”

a- A cash buyer will not pay you full retail price for your house. Whether they are buying with the intent of flipping or renting it out, they are going to want a deal that makes sense to them, [dollars and cents]

b- Cash buyers can close quickly. One of the benefits of working with cash buyer is that there are no lenders involved. Experienced investors will already know what the numbers are even if there are repairs involved. They will rarely get an appraisal done which means that there are not many things that can get in the way of this deal getting done, usually within 3 days or so.

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