Florida Homeowner Insurance companies are having a negative effect on Orlando Real Estate Sales
Even though the real estate market in Orlando is recovering in leaps and bounds, homeowners are not happy about the high price of Florida homeowners insurance. As a matter of fact, for some potential home buyers, it’s proven to be the straw that broke the camel’s back.
There are still great real estate deals in Orlando, but even if the price of the property is affordable as well as property taxes, etc., the homeowners insurance in some cases can be almost as much as a mortgage payment. That’s insane!
Citizens Insurance raising it’s premiums on Florida Homeowners
The main reason for the high cost of homeowners insurance in Florida is the recent increase that Citizens has made to it’s premiums. Many times this will cause potential real estate deals to fall through or even worse, it puts the new homeowner in a position to fail because he went over budget, and potentially cause him to default on his payments.
The state run Citizens claims that the had no choice but raise the premiums because they are supposed to be a last resort for people and now they are covering many more homes than the program was designed for. That’s not all, if massive hurricane were to hit Florida and deplete all the company’s reserves, all Floridians would get taxed thus hurting the state economy in a big way.
Read the fine print when Buying Orlando Realty
When it comes to buying Orlando Real estate, there’s more than just deciding which homeowners insurance company you’re going to commit to. You have to read the fine print and be aware of everything that you’re committing to. So many first time home buyers end up in hot water because the fail to understand exactly what they’re signing. Then there is another type of buyer, the type that wants to get into that new house so badly even though deep down they know that it’s beyond there budget.
That’s why you need an experienced Orlando realtor to walk you through the complexities of buying a home in Orlando. I personally will not allow a client to make what I know will be a bad decision for them. As Orlando real estate agents, we have an obligation to look out for the best interest of our clients and help them in any way that we can when it comes to buying or selling Orlando real estate.
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.
