Tag: Orlando Realtors

Orlando Short Sales Decrease Due To Tax Implications

Posted on by Jenny Zamora

The debt relief act of 2007 has officially expired as of January 1st 2014. This situation creates huge tax burdens for Florida homeowners that are upside down and that have or will receive any kind of mortgage forgiveness such as a short sale.

This means that the IRS will consider any capital that was forgiven by a lender either in a short sale or even a foreclosure to be recorded as income to the homeowner and will tax that income accordingly. The “Mortgage Forgiveness Debt Relief Act” [MFDRA] of 2007 was established to allow homeowners with certain criteria to exclude this type of income from their tax returns. This act only applied to debts associated with someone’s primary residence.

Orlando Short Sale Realtors Concerned Over Tax Relief Expiring

Orlando realtors that specialize in doing short short sales are very concerned about homeowners no longer having the tax break incentive. Why would someone go through with a short sale if they knew that they would be taxed on the deficiency? It’s like jumping from the frying pan into the fire, you’re going to get burned either way.

We’re already seeing a sizable decline in Orlando short sales since the 1st of the year. I think that we’ll see even fewer short sales, fewer principal reducing modifications, and an increase in foreclosures as we get further into 2014. Homeowners aren’t seeing the upside to doing a short sale in many cases.

The truth is that without the assurance of tax being exempt on a short sale there’s much less incentive for distressed homeowners to agree to the voluntary sale of their home.

Lenders Are Foreclosing Faster Than Ever Before

There was a time shortly after the RE market crashed in 2007 where lenders were extremely overwhelmed with the amount of homeowners defaulting on their loans. This resulted in a foreclosure taking up to 2 years or more to complete in some cases.

Several Orlando homeowners that I’ve spoken to say that they’ll just stay in the house until the bank forecloses believing that it will take their lender years to foreclose on them because of the stories that they’ve heard in recent years.

This couldn’t be further from the truth and homeowners that feel this way will be in store for a rude awakening. Lenders have come a long way in streamlining there process for dealing with mortgage holders that fall behind. They now have systems in place that help to expedite the amount of time that it takes to process foreclosures, short sales, loan mods, etc. Certain lenders will foreclose within a matter of 3 to 4 months if the homeowner doesn’t take action.

What Are Other Alternatives To Foreclosure?

Homeowners are still offered the same alternatives from their lenders; short sales, loan modifications, deed-in-lieu, etc. It’s important to note that it’s not the lenders who want to tax homeowners on the deficiency amount, it’s the IRS. And, although congress is actively looking at several bills that would extend tax relief through the next year or two, it hasn’t happened yet and there’s no guarantee that it will.

 

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EDC of Metro Orlando Brings Seven Projects and 2100 Construction Jobs to Central Florida

Posted on by Jenny Zamora

 

The Metro Orlando Economic Development Commission started its Brand Orlando campaign with a lot of vigor and the results of the effort have been positive. The EDC has managed to rope in seven new construction projects at various sites in Orlando.

Hard work of the EDC has finally paid off. The Commission has been striving hard to make this happen, from several high-level meetings with site consultants to pick up lucrative sites to discussions with brand executives to pitch these sites as favorable to the real estate business community; it has been a tough ride. But, it all seems to be worth the effort, states Holly Weidman, the executive vice president of the Commission.

Orlando Realtors work together with backing from EDC

Orlando real estate agents have been pitching the cause independently, but with them coming together as a team and with the backing of the EDC, the region has finally gained the interest it deserved. The EDC has marketed Orlando as a region of opportunity for the infrastructure sector, highlighting prospects other than the well-known tourism industry. They have focused on local businesses, traditional architecture, the rapport between the University of Florida and the business community, and the sense of communion with local communities.

 New jobs will boost the economy

The developments have spread cheer among realtors and buyers alike. Everyone is now anticipating a flurry of activities that will give way to about 2100 new construction jobs, giving the economy of the region a big boost. Existing businesses are also likely to spread their base in the region. Apart from pumping money into the markets through construction activities, a lot of local businesses, allied infrastructure, and manufacturing services are likely to find the requisite kick start, bringing in more cash flow and making the region a prospective hot spot for high-profile investments.

The EDC, although happy with the turn of events, is not complacent with its recent success. It is continuing with its crusade and giving out tips to real estate agents in Orlando on how to pick the right sites, how to market them and how to retain their USP – the tourism industry as their stronghold. They are very clear with their vision on making the region the hottest market for real estate business. They are keeping a tab on competition and fluctuations in the volatile real estate market, to stay on top of the tide.

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Orlando Foreclosure Activity #1 in the Nation – Real Estate Business Stays Unaffected

Posted on by Jenny Zamora

A new industry report places Orlando first in its list of cities and metropolitan areas with maximum foreclosure activity for the month of March. The number of foreclosure filings in the Orlando real estate marketplace increased by 13 percent in comparison to the figures from one month earlier (February 2014).

According to some Orlando realtors, the March foreclosure figures also bear another distinction. With a total of 2,886 foreclosure listings in the community, the March figures represent a nine-month high.
But Orlando real estate agents are not worried. The figures are still lower than they were at the same time, a year ago. Further, as noted by a majority of the top Orlando realtors, the business hasn’t slowed down for the residential real estate community of Orlando at least.

Foreclosure trends around Orlando

Orlando’s number one position in the foreclosure activity charts contributed to Florida’s status as the state with the highest density of foreclosures. While the national average lay at one foreclosure for every 1,126 homes, Florida saw one foreclosure in every 407 houses on an average.

Metropolitan Orlando led other cities and metropolitan areas in the state with one foreclosure action in every 326 homes. The numbers present a grim situation no doubt, but not when compared with statistics of previous quarters and years. Orlando’s March 2014 foreclosure rate is lower than the rates of March 2013. This also marks the third consecutive quarter when Florida’s foreclosure rates have decreased.

Cities and counties around Orlando have seen their own ups and downs in foreclosure activities. The biggest hike in foreclosure activities was experienced by Polk County. With 786 foreclosure filings in March 2014, the rates went 15 percent above those in February 2014 and 28 percent above those in 2013.

Realtors Not Worried About Increasing Foreclosure Activity

Several years ago, real estate agents in Orlando were soliciting business from property owners who were just beginning with the foreclosure process. However, the trend has changed of late and realtors no longer depend on “foreclosing owners” for business. Realtors have enough business in their hands, further proof that increasing foreclosure activity will not slow the market.

Residential real estate buyers have witnessed an increase in their home buying confidence. The inventory shortage has been softening since February 2013. Banks have become lenient with their mortgage lending and Americans have seen a reduction in their unemployment rates. Add to it the several new construction projects underway in Orlando and you have all the reasons why home buyers are undeterred in their purchasing.

The spring buying season has just begun. And if you’ve been waiting for an opportune moment to purchase property, now is the right time.

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Top-Notch Property: Tips to Prepare for an Open House

Posted on by Jenny Zamora

You only get one chance to make a good first impression, and an open house is a moment to make your home shine. Dozens of people will walk through your home, check out the layout, and even peek in your closets to see if it meets their needs. During this time you will want your house to look as amazing as it possibly can. Get your home ready for an open house in a few simple ways.

Clean Everything

Cleaning is the most important thing that you can do before an open house. Sweep and vacuum, mop the floors, clean out the cabinets, get rid of clutter, and spray the house with an air freshener. Some staging experts recommend baking cookies, or another sweet snack to fill the house with the scent of vanilla, which appeals to almost all buyers. When cleaning, make sure that you are clean from top to bottom, removing spiderwebs, dirt, dust, and even the scent of your pets.

Take Care of Pests

Regardless of where you live, the odds are good that you have a few pests scattered around. If you live in the Midwest, and other cooler climates, you might find mice sneaking into your house to escape the winter. Other pests that can gain access to your home include rats, squirrels, bats, and even raccoons. You’ll hear those animals scurrying around inside your walls, find feces left behind, and see signs of their nests.

Do a Walk-Through

You can spend months cleaning and staging your home without getting a single offer. This often occurs because you think your house looks good, but others don’t agree. Before the date of your open house, ask some friends and family to come over and walk through the property. Ask them for an honest opinion about what works, and what doesn’t. You might find that they don’t like the darkness of a specific room, they notice a scent you can’t smell, or they think you have too much clutter. Use their advice to make your home look appealing to potential buyers.

When you can’t afford to work with a staging company, you can still get your home ready for an open house. Cleaning, getting rid of rodents, and asking for advice from those you trust can make your house look appealing to everyone who walks through the door during an open house.

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Selling Property: Additions That Can Increase Home Value

Posted on by Jenny Zamora

If you are trying to sell a property in Orlando, you know that making your home stand out from the competition can be difficult. However, there are some additions that can increase a home’s value and make the house easier to sell when it hits the market.

1 Count the Bathrooms

Never underestimate the power of an additional bathroom in your home. Everyone can use another bathroom. This is particularly true if the home you want to sell only has one bathroom; most buyers won’t even consider a home with only one bathroom. If your home has two stories, make sure there is at least one bathroom on the main floor because buyers in today’s market have come to expect that.

2 Garages are Good Bets

Many home buyers also expect to have a garage to protect their vehicles. While most buyers want an attached garage, if adding one to your existing house isn’t possible, you can add a detached garage to your property to increase the value. This is bonus square footage that can be used to house a vehicle or for storage.

3 Media Rooms Sell

Another smart addition to a home is a media room. You may not have to add on to your house to get a media room. You can take an existing space within your home and convert it to add the media room. For example, you might finish a room in your unfinished basement or loft area. Buyers in today’s real estate market are looking for homes with all of the bells and whistles, so you will get your money back on this investment.

4 Home Offices are Hot

You can also increase your home’s value and help it sell quickly by adding a home office. Most home buyers like having a dedicated space in the house to use for the computer, printer, and fax machine. However, more people are working at home today than at any other time in history, so lots of buyers need home offices for their jobs. This one feature could make your property stand out from all of the rest.

5 Outdoor Space is Nice

A final addition is an outdoor space. Many buyers want a home that provides outdoor entertainment space, so this is a good return on your investment. You might build a deck or patio in the backyard. You can even add furniture to the area. Swimming pools are also a good idea. “A pool is a lasting investment in both your home and in your life. It can add value to your property,”

Making smart decisions can help you increase your home’s value and make it easy to sell. You just have to spend your dollars wisely.

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