Tag: Orlando Short sales

Orlando Foreclosure Discounts Shrinking

Posted on by Jenny Zamora

Orlando Foreclosure properties just aren’t the bargains that they used to be. In August of 2009, the average discount on a foreclosed home was about 24%. As of September of this year, it’s now down to about 7% compared to what a home buyer would’ve paid for the same property in a conventional transaction.

Orlando, which is one of the cities that was hit the hardest by the foreclosure crisis has such a strong demand right now for properties that the discounts are pretty much gone unless the house is in need of major renovations. Our company specializes in Orlando short sales and I can tell you that just about every one of our listings receives multiple offers for the listing price or above.  It’s extremely rare these days that we get an offer that’s lower than the listing price because buyers know that it’s a very competitive market right now. As a matter of fact, about half of our properties end up selling for over the listing price.

Regular homebuyers [not investors] are the main reason for the increased demand for Orlando real estate. Everyone wants to take advantage of the historic affordability, which means the combination between lower home prices and great mortgage rates. This doesn’t mean that you still can’t get a good deal in Orlando, but be prepared to submit multiple offers on multiple properties. It’s because of this that it’s much more work to be a buyer’s agent where you have to show multiple homes and submit multiple offers before you find what your buyer is looking for. It’s very common these days to go see a house that has been listed for less than 24 hours and find out that the home already has multiple offers on it.

Orlando Re-Habbers Still Turning a Profit

The average home buyer wants nothing to do with remodeling a home after they’ve purchased it. This is why there’s soo much competition for Orlando homes that are move-in ready. However, for the home buyer that is willing to roll up his or her sleeves and dive into some major home repairs, there’s still a profit to be made. There are some lenders that will complete the renovations on their own foreclosed properties before putting them back on the market, but most of the time they just want to sell them as-is.

Homes that are in need of repairs can still be good investment opportunities if you know what you’re doing. Using an experienced Orlando realtor to help with your search is highly recommended. It’s also important to know what repairs need to happen and how much the repairs will cost before you commit to buying a fixer-upper. Although profit margins are quite a bit smaller than they were a few years ago, a full-time rehabber can still make a decent living from flipping houses.

 

 

 

 

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Newer Homes Preferred by Orlando Real Estate Buyers

Posted on by Jenny Zamora

 

 The real estate scenario in Orlando is a flurry of activities with new homes coming on top in a competition for the buyers. This has created a unique opportunity for the sellers, especially for those selling homes that were built in the 90s, with buyers indulging in a bidding war for these properties. As far as Orlando short sales are considered, the buyers seem to have a lot more negotiating strength when pursuing older properties compared to brand new ones. This is because when it comes to the new properties, they almost certainly get tough competition from affluent buyers.

Analyzing the trend

 The current trend seems to be driven by all sorts of investors, those that are aiming for resale, as well as rent. A report released last month suggests that these investors have been responsible for the inflation in the housing market in Orlando, as far as prime residential properties that were built since 1990 are considered. This could be partial because houses built over two decades ago are often considered to be less appealing as they are more likely to require upgrades and repairs. However, this is something that is not necessarily true as even newly built properties could be in a worse condition as compared to some of the houses built in 90s that are still in excellent shape. 

These older homes can also be highly appealing, especially in pristine neighborhoods in Orlando real estate. However, the overall demand for properties in Orlando has been for greater newer properties. Orlando real estate comprises of about 30% of the houses that have been built since the year 2000. However, only 34% of the sales have been taken place in this group. The report also suggests that a similar trend has been observed for houses that have been built between 1990 and 2000.

One of the distinctions between the newer and older neighborhoods is that most of the homes that are rich in equity are not listed for sale, as compared to houses in areas that have been heavily hit by foreclosure since 2008. Buyer interest for homes built before 1990 has only diminished further;. these houses, which comprise of more than 50% of the real estate properties in the area,  have only made up for as much as 41% of the sales recorded so far, reflecting a negative impact on the market.

 

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Choosing the right Orlando neighborhood for Re-habbing a House

Posted on by Jenny Zamora

Which type of Orlando neighborhood is best for rehabbing a house?

When you’re looking for an investment home that you intend to flip for a profit you should know that choosing the right location is just as important as choosing the right home. Although it’s true that there are buyers for just about any area in Orlando, certain areas are more desirable than others making it easier on the investor.

Qualities to look for

When considering the neighborhood for a flip, there are some statistics that you should research about the area.

* Make sure that recent sales in the area are homes that sold quickly.

* Ensure that the neighborhood is mostly owner-occupied and not a mostly rental community.

* Homes in the area have maintained their values or even better, they are going up in value.

* Not many houses for sale in the area, too many houses for sale is never a good sign and creates competition for your house when it’s time to sell.

* Be aware that older homes will need much more work to get ready for the market.

 Try Keeping it Close to Home

When you make the commitment to re-hab a house you should know that even if you hire a general contractor to do all the work you will still be making frequent visits to the property. By rehabbing a property in your own area, not only will you have less driving time to get to the property but you’re probably already a bit about the area making your research easier.

However, the area must still be holding its value or going up or it just won’t make sense. A neighborhood that has falling property values because of crime, new highway construction, etc. is never a good choice no matter how close it is to your house.

 Hire an experienced Orlando Realtor

 By utilizing the skills and expertise of an experienced Orlando realtor to find your investment home, you can cut out a lot of the legwork. Realtors not only have access to the MLS but they are also able to provide you with the facts that you need about the area to make the right decision. A good realtor will be familiar with the area as well as the houses thus being able to give you valuable advice that will ultimately translate to more dollars in your pocket when it’s time to sell.

It’s also a good idea to list the property once you’ve finished the repairs. Listing the property with a realtor will give your property maximum exposure to buyers that are currently searching in the area. It’s always a good idea to interview several Orlando realtors before making your decision on which one is the best fit for you.

 

 

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Top 3 Myths about Orlando Short Sales

Posted on by Jenny Zamora

 

These days the term “short sale” is a term that most people are familiar with. Especially people who either have been or are currently being threatened with foreclosure. For the people that don’t know, a short sale is a pre-foreclosure arrangement between a homeowner and their lender where the lender agrees to accept less than what’s owed on the mortgage so that the property can be sold as opposed to having to take it to foreclosure.

 Short sales have become very common since the market took a turn for the worse six years ago. Like everything else that becomes popular, people start talking about it, and before you know it there are a bunch of rumors flying around, most of which just aren’t true. When it comes to Orlando short sales, there are several myths that have been created for one reason or another.

 I’ve written the article in an attempt to try and educate homeowners on the truth about short sales and expose the myths for what they are.

 

1- You can buy a short sale super cheap, then sell it immediately for a huge profit.

When a bank agrees to the short sale of a property, it will want to get the highest dollar amount possible for the property. This is done by listing it with an Orlando realtor then once there is an offer is submitted to the bank, the bank will order a BPO [broker’s price opinion] to be done on the property which is basically a market analysis. This will ensure that the offer is very close to fair market value. These days banks are very aware of what the real estate market is doing and the chances of getting a lender to accept a low ball are slim to none.

The real money to be made in buying and selling short sales is in rehabbing properties. The only way lenders will accept extremely low offers on short-sale properties is when the property needs substantial repairs.

2- Lenders have to accept the best offer that they receive on a short-sale property.

This couldn’t be further from the truth, in a short sale situation the buck stops with the lender which means that the ultimate decision is theirs. As an Orlando short sale realtor I’ve seen it many times, after listing a property you submit offer after offer and the bank still won’t budge on what they think is fair market value. Most of the time a stubborn lender will eventually realize that the price they’re seeking is just not realistic and agree to a lower price.

As far as a lender having to accept the best offer on a short-sale home, it’s just not true. Although most lenders will eventually accept a reasonable offer, some won’t and will proceed with foreclosing on the property.

3- Short Sales are a waste of time and take forever to get approved.

After the market crash of 2007 short sales were all the rage and the market was flooded with short sale properties. This was the biggest reason why short sales would take such a long time to complete. Banks were not prepared nor equipped to handle that many short sale files at once. Short sale negotiators were bogged down with files and properties were taking a year or two to get sold. Now that the market is hot again this is no longer the case. Lenders have put systems in place to streamline the entire short sale process making it much easier for realtors to get the job done.

If you or someone you know is in need of an Orlando Short Sale or if you just have questions about short sales, feel free to contact our office by visiting  https://orlandorealtyconsultants.com/ or just give us a call at 407-902-7750.

 

 

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Orlando Real Estate makes top 5 in the country list for booming markets

Posted on by Jenny Zamora

 ORLANDO   # 5

A recent ZipRealty report has put Orlando real estate in the No: 5 spots in a list of booming real state locations in the United States. All of the 10 markets featured in this list have been hand-picked for their excellent public schools. Orlando owes its 5th position to the highly reputed Seminole County Public School which holds a score of 7.8 on a scale of 1 to 10. The ZipRealty report also indicates that Orlando home prices have witnessed a 26% year-on-year rise to nearly $145,000.

 Accessibility to good schools has always been a top priority consideration for home buyers who are looking to relocate and Orlando clearly has what it takes in this respect. Companies hoping to recruit the cream of the available talent often highlight the excellent schooling available to attract skilled employees to its ranks. This could be great news for sellers who are looking for good Orlando short sale opportunities since it means that more buyers may be viewing this location favorably. In fact, the appearance of Orlando on this top 10 list can make the job easier for short sale realtors representing sellers.

 Chinese Show Interest in Orlando Properties

 A recent trend also indicates that buyers should view Orlando’s properties favorably. International investors appear to be keen on buying real estate here. The Chinese, in particular, who have been investing in key locations across the United States in recent times, are also adding Orlando to their list of possible investment destinations.

 In fact, a Hong King based firm, Gaw Capital Partners has plans to raise $500 million to invest in commercial property in Orlando among other places. The fund’s manager describes Orlando as an ‘innovation center’. If investors like these increase their attention on Orlando properties, the housing recovery is bound to get impetus and in turn, prices are likely to move upwards. For sellers in need of a short sale, achieving a reasonable price for their property may become easier in such circumstances.

 An increase in Flood Insurance Premium may Impact Housing

 On the negative side, analysts are worried that the increase in flood insurance premiums may dampen the enthusiasm for properties in low-lying areas across Orlando. Many have predicted that the rate hike will subdue housing recovery here and/ or cause a decline in property values. In the words of Governor Risk Scott, the unfair consequences of the National Flood Insurance Program reforms could devastate real estate values across all of Florida. However, as experts point out the rate hike is likely to impact only specific pockets within Florida where the wealthiest of the State’s denizens reside.

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