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.
Orlando real estate is once again a good investment for retirees
After the huge real estate bubble, we experienced between 2000 thru 2006, we all learned a painful lesson in 2007 when the market tanked. It’s just not normal for Orlando real estate prices to double over the course f only seven years. When the market crashed, Orlando’s real estate prices dropped to 50% of where they were and in some areas of Orlando, it was even more than that.
What I have been seeing more of recently, however, is that people are considering Orlando realty as a good investment for retirement once again. Here in Orlando, the bottoming process has already happened and prices have been on a steady rise. There is still a long way to go before we see a normal housing market, however, historically low mortgage rates are helping the market by making the cost of ownership more affordable, assuming that the potential buyer can qualify.
Sensing this opportunity, many are jumping into the rental market to boost retirement savings and income. There are however several important factors to consider when buying an Orlando property for the purpose of receiving a steady stream of income.
5 Tips for potential Orlando Landlords
1- Make sure that you buy at the right price- This is where working with an experiencedOrlando realtor will pay off big. Make sure your agent shows you the recent comparables in the area. Chances are that you won’t find anything at 30% market value unless it needs work done, but you should be able to buy something at fair market value, which is OK if you’re thinking long term.
2- Forget about flipping- The days of flipping houses for a huge profit are gone for the most part and you shouldn’t go into this thinking that you will be able to sell your investment property for twice what you paid for it in six months, it’s just not going to happen.
3- Take advantage of Historically low mortgage rates- Even if a potential home buyer is able to purchase an Orlando Investment property, I always suggest to them that they should consider getting a mortgage. With historically low rates right now, it’s a great opportunity for potential investors if they can qualify.
4-Consider hiring a property management company- Being a landlord can be a great source of income if you’re up to the task. However, I must warn you that it’s not for everyone. Landlords have to deal with not only the maintaining of the property, but they have to be available to tenants at a moment’s notice in case of emergencies. This is why you should consider hiring a property management company right from the start. You should work this expense into your budget before even buying your investment property so that you will know if the numbers make sense.
5-Get familiar with Orange county eviction laws- If you become a landlord for any amount of time you can expect to have a deal with an eviction or two [at least]. It’s very important that your rental agreements are solid and that you do background checks on ALL of your tenants no matter how nice you think they are. It may cost you a few extra bucks to get a quality tenant into your house but I can tell you from experience that paying a bit more upfront to do things correctly will save you time, money, and headaches in the long run.
It’s important for people considering Orlando real estate as retirement income to remember what the goal is. The goal is for the owner to be mortgage-free and to collect a steady stream of income on a house that’s free and clear.
Financial Hardship is not the only reason why Orlando homeowners are not paying their mortgage
Strategic Default is when a homeowner decides to stop paying their mortgage, not necessarily because they can’t afford it, but because it’s a bad investment not worth paying into anymore. Even if the consequence means to possibly lose their house to foreclosure and damage their credit.
Orlando homeowners have been purposely defaulting on their mortgages for several years now. When people become aware of the reality of their situation, they make a conscious decision to stop paying their mortgage. In most cases, I can’t say that I blame them. Don’t get me wrong, I would never tell a client to stop paying on their mortgage. However, I do tell my clients what their house will sell for and about how long it will take to sell and they do the rest of the math on their own. Although Orlando real estate is making a steady recovery and I believe will continue to do so. There are Orlando homeowners that will never get the money back that they’ve put into their property.
Strategic default Vs. Moral Obligation
Some Orlando homeowners are worried about their moral obligation to pay the mortgage. The truth is that the homeowner entered into an arms-length transaction with their lender in which both parties had competing interests thus spelling out their obligations in a clear, signed contract. Unless the contract states that the homeowner has a “moral obligation to pay,” then it’s plain and simple – they don’t. Here are the facts; when a homeowner borrows the money to buy an Orlando property, they have entered into a business transaction. The lender evaluated the risks and concluded that it was a risk worth taking. For its protection, the lender also required that the homeowner put the property up as collateral, as well as any equity that they had in the house. The contract spelled out that if the homeowner doesn’t pay, the lender has the right to take the property and sell it before the homeowner gets any equity back – if there were any equity left, which of course in these cases, there isn’t. The lender would not have approved the loan if they didn’t think it was a smart business decision. The homeowners choice to enter into this agreement was also a business decision. It’s now obvious, that both the homeowner as well as the lender made a bad decision. Now, the contract spells out what happens if the homeowner stops paying, the lender gets the property.
However, there are other options available to homeowners like doing an Orlando short sale or a loan modification. In my opinion, most loan modifications that get approved just don’t make financial sense unless they reduce the principle balance of the loan.
Strategic default is actually something that is caused by the lenders. The fact is, lenders won’t even consider entertaining a short sale unless a homeowner is behind their mortgage thus forcing the homeowner stop paying the mortgage.
By doing a short sale, the homeowner is able to get their house sold and walk away from the responsibilities of the mortgage. Also, there are now several “cash for keys” programs available where lenders offer substantial cash incentives for doing a short sale, sometimes up to $30,000.00 depending on what kind of loan they have and who the lender is.
Your value as a person is not determined by the value of your real estate, or how much money you owe to a bank. You are worth more as an individual than your bank will ever understand. Life is too short, and there are so many things more important than an underwater mortgage. For many Orlando homeowners, it’s literally the difference between happiness and depression.
If you’re in a situation where you need to do an Orlando short sale on your house go speak with an Orlando short sale expert and find a solution, you owe it to yourself and your family.
Jenny Zamora, Lic Re Broker/Orlando Short sale Expert
When it comes to Selling Orlando Real Estate, there’s only one chance to Sweep potential buyers Off their Feet.
Top Orlando realtors know the importance of staging a house to get it sold. The truth is, with the exception of owner occupied homes that are furnished because the homeowners still live their, hardly any one wants to spend the money to have their house staged for showings. Even the houses that are owner occupied and fully furnished can work against you. Let’s face it, not everyone has the best taste to pick out furniture or decorating a home to look it’s very best.
I’ve entered many owner occupied Orlando homes and have been forced to have that ever so awkward conversation with the seller about removing some of their personal belongings, de-clutter and sometimes about just basic cleaning.
Have you ever had to tell a cat lover that they need to get the cat smell out of their house, or even better, relocate the cat so we can get the property sold? Not funnest part of my job!
As an Orlando Listing Agent it’s my job to do my very best at getting my clients Orlando Property sold, and sometimes sellers will get their feelings hurt. Usually, once I explain to the seller why we need to do certain things to their home sold for the highest price possible, they understand that ultimately it’s for their own good.
I also make them understand that as a Top Orlando Broker, people seek me out for quality Orlando properties and it’s my responsibility to show everyone of my listings in the best light possible.
Top Tips on making your Orlando Property look it’s best with little or no money
1-Cleaning and De-Cluttering– If you could only do one single thing to a house to make it look better, it would be to clean it and get rid of the clutter. Most potential buyers don’t have the imagination to see anything except what you are showing them. So in other words the perception is the reality. Start by removing everything that you possibly can into the garage or out front. If possible, remove any large pieces of furniture that can make a room feel small and uncomfortable. Also, you should remove as many personal items as possible and put them in storage. Next,… clean, clean and clean more. Make every surface of your house as clean as possible, I prefer the term “sparkle”.
Warning: Once you clean and De-Clutter your home like never before, you run the risk of falling in love with it all over again and not wanting to move anymore.
2-Lighting– To show a house in it’s best light possible, you start with light and lots of it. There’s nothing worse than showing a house that looks dim and dark when you first walk in [that’s what they’ll remember]. Ample illumination can make a home feel warm, inviting and even larger and open. Lightening and brightening a home can offer one of the biggest returns to sellers at resale next to Cleaning, De-cluttering and paint. To make sure you get maximum benefit from your lighting efforts here are a few suggestions
a. Use clear light bulbs instead of opaque for a cleaner look- Get rid of any mismatched bulbs, they are an eye sore and can make a room feel chaotic. Also, avoid using those energy efficient bulbs that emit a harsh glare, instead use standard incandescent bulbs for a warm soft white light that. b. Clean or Update old lighting fixtures- If it’s not in your budget to update old light fixtures, then clean them. It’s a huge turn off to a potential buyer to look up at light fixture and see dust, spider webs and dead insects. I know it’s a pain to get the ladder out if the garage and clean fixtures that haven’t been cleaned in quite a while, but well worth your time and effort. c. Take advantage of window lighting- Start from the outside in, clean the glass and the screens. If the screens look really bad, get rid of them. Old screens can make a window look awful and I’ve never seen a deal fall through because of a house not having screens on the windows. On the inside get rid of any curtains or other window dressings that can be keeping the light from getting into the house.
3-Fresh Paint- If you were able to complete my first 2 suggestions, then you are off to a great start and many times you don’t need this final step. However, if you have chipped, scratched and missing paint on some of your walls, or if the colors you have on your walls now are very personal to you then you should definitely consider painting. Some people will see a color on the walls that they don’t care for and for that reason alone not like the house and not make an offer. If your house is extremely colorful to the point where it might turn some potential buyers off my suggestion is to paint all the interior walls off white. You can’t go wrong with off white; it’s bright, soft and elegant all rolled in to one. My husband is an experienced Orlando Real Estate Investor/Re-habber and he paints everyone of his Orlando properties “off white” with the trim “bright white”. You really can’t go wrong with this combination. It makes the house look clean, spacious and elegant. Also, these colors are very easy to paint over for new homeowners wanting a more dramatic look.
I hope this information was helpful to anyone looking to sell their Orlando property. If you would like to see how much your house would sell for in today’s market, even if you have no intention of selling. Feel free to come see us for a Free Consultation or call 407-902-7750
“All cash deal” is one of my favorite phrases to hear regarding Orlando Real estate. Real estate deals that are purchased with all cash actually account for two thirds of all Orlando Florida residential deals closed. Cash deals are usually done by private investors or a group of investors that pool their cash together to buy investment homes to either rent out or flip.
The ”All Cash “ trend started in 2008 and in my opinion was great for the once “troubled” Orlando real estate market. Cash buyers took care of a lot of the inventory causing residential real estate prices to rise.
I have several Orlando Investors that I’ve been working with for several years. They are great to work with because already know what type of Orlando properties they are looking for and we’ve established mutual trust. So much so that they’ve purchased many of our properties site-unseen.
Of course cash buyers make lower offers than retail buyers, but they make up for it in volume. The best part about selling a property to one of my investors… Guess who you think they will call when they are ready to sell it? That’s right, yours Truly.
Cash Deals are Dominating all Spectrums of Orlando Realty
Cash buyers don’t discriminate against high end properties either. Orlando properties from below 100k all the way into the millions are being bought up buy Cash buyers. Educated home buyers are aware that when a you make a cash offer on a property that your offer will draw more attention than an offer for the same amount using traditional financing.
57% of all my Orlando listings closed this year have been all cash. Buyers know that in order to get the best sales price possible cash is the best incentive that you can offer. No one likes to have to wait around for a potential home buyer to go through a long drawn out approval process where at the end of the day may or may not close. Also, lenders have a very strict inspection guidelines which are proven deal killers.
