Tag: realtors in Orlando

Median Orlando Home Prices in Shoot 24 Percent Up at the Close of 2013

Posted on by Jenny Zamora

 Wednesday reinforced positive sentiments among Orlando realtors as the Orlando Regional Realtor Association released its yearly report about the Orlando real estate market. The report revealed that the average Orlando Home price for properties in the city saw a 24 percent hike in the previous year. This 2013 rise in median home prices marks an all-time high since the economic downturn of early 2006 that took the housing market down with it.

Key takeaways from the report

 The median home price in the core Orlando real estate market was $149,625, in 2013. Back in 2012, the corresponding figure stood $28,000 below, at $121,000. The last time Orlando real estate agents had seen such a hike was just before the housing bubble in 2005.

Median house prices rose by more than 33 percent that year. The same upturn of events was seen in 2013. The report holds that 2013 saw the sale of 6.54 percent more homes, than the previous year. Compared to the 28,765 homes that were sold in 2012, 30,645 were sold in 2013, showing just where top Orlando realtors had been busy the year.

Comparing the statistics for December alone, aggregate median home prices were up by 20.87 percent compared to the previous year. In the December of 2012, the aggregate for Orlando was $132,500. The 20.87 percent boost brought up aggregate median house prices for all of Orlando to $160,150 in the December of 2013.

The Christmas month also saw a 3.32 percent hike in the median home price of Orlando real estate properties from the previous month. Compared to the median price of $155,000 in November 2013, December registered the median price of $160,150. Real estate agents in Orlando sold 2367 homes in December – 11.55 percent more than their November tally.

Prime reasons attributed to the up-turn

 Orlando Regional Realtor Association’s chairman, Zola Szerencses remarked that the competition between investors and buyers helped reverse the sunken-mortgaged conditions for many property owners.

Industry experts list low inventory during the first two quarters as a positive influence. The second and third quarters presented prospects with low-interest rates – boosting confidence and increasing sales.

Despite the promising upturns, the median prices in the Orlando real estate industry remain considerably low compared to the peak Orlando realtors saw in July 2007. The real estate bubble was about to burst and median prices for the Orlando neighborhood homes peaked at $264,000. For 2014, economists have predicted a flattening up of the sales and price increase to about five percent.

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Tips for Estimating Repairs on Orlando Investment Properties

Posted on by Jenny Zamora

Have you ever bought a car without first finding out how much the monthly payment will be or how much it will cost to insure it? Of course not, that would be crazy and irresponsible. You would first find out how much everything will cost to determine if you can afford it or not.  The same thing holds true when you’re talking about buying Orlando investment properties. When you buy a house with the intention of selling it for a profit, it’s crucial that you get the numbers right from the very start or you could end up losing money.

Know the difference between Cosmetic Repairs and Structural Repairs

Just about anyone can recognize when a house needs a paint job, new carpet, or maybe even some minor carpentry repairs. These items are considered cosmetic repairs and can usually be completed with a few thousand bucks depending on the size of the house.  In some instances, you may even want to do some upgrading such as new kitchen cabinets or replacing fixtures, etc. I consider these items to be cosmetic repairs as well though they will be a bit more costly. However,  it’s very important to know if the house you’re about to purchase has any major structural issues with it.

Structural damages to a house can be a game-changer and most of the time will turn a deal into a non-deal depending on the extent of the damage and much it will be to make the necessary repairs. Unless you are a seasoned investor, I would highly recommend that you steer clear of any houses in need of major repairs.  

Some examples of major repairs are as follows:

Updating the Electrical system– Houses that are older [30+] will sometimes need to have the electrical system brought up to code. This can sometimes mean that the whole electrical system will need replacing or rewiring.

Rotten Plumbing – Having corroded or rotted plumbing has the potential to be a rehabber’s nightmare. Plumbing runs through the walls as well as the foundation and leaky pipes can easily cause severe damage over time.

Dry rot and termites-  This can be another major problem to the structure of a house, especially if it’s an older home. There are rafters in the attic as well as studs in the walls that are made of wood and if there is evidence of termites or dry rot, you may be looking at replacing most of it which mean a lot of demolition in addition to replacing the rotted wood.

All of the above-mentioned repairs can cost a lot of money. Also, it can be risky because most of the time you won’t know the extent of the repairs until you start the project and know exactly what you’re dealing with. As an experienced rehabber myself, I’ve seen what I thought was going to be a $5,000.00 repair turn into a $15,000.00.

Keep it Simple

Remember that your goal is to resell the house for a profit. That means that you need to get a good enough deal so that you can do all the repairs and get it sold quickly. My advice to any investor experienced or not is to stay away from homes in need of major repairs. If you have to repair to many things, not only will you end up spending too much money, but it will also take longer to get the house ready to put on the market. Like that old saying goes “Time is money” and another month or 2 of carrying costs while your house gets repaired can mean thousands out of your pocket.

Follow this simple formula when looking at investment properties

1-Enlist the help of an experienced Orlando Realtor in the area you wish to buy-in.

2- Determine the value of the home after repairs. Always expect your house to sell for less than the lowest comp in the area.

3- Determine how much you will spend on making repairs then add on another few thousand to it to be safe.  You should also add your projected carrying costs to the budget.

4- Price the house correctly from the start, too many people make the mistake of pricing the house too high and it ends up sitting in the market for several months and they ultimately end up lowering the price anyway.  This is where a good Orlando realtor can help you tremendously.

By following these basic guidelines, you will have a much better chance of making a profit once the house is ready to be put on the Orlando real estate market.

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SunRail Access Makes an Entry into the World of Orlando Real Estate Amenities

Posted on by Jenny Zamora

The brand new commuter line covering 31 miles, SunRail is all set to begin service in less than 6 months. However, a handful of Orlando realtors have already started to use SunRail along with their real estate listings in Orlando. Realtors in and around Orlando and other parts of Central Florida have started listing proximity to the SunRail station as one of the amenities to advertise their property.

Expectations from SunRail

 A large number of Orlando realtors are of the opinion that the billion-dollar rail line is likely to drive up the value of Orlando real estate prices in and around the areas where the SunRail stations are located. Many realtors are also expecting that the new commuter rail is also likely to increase sales in Orlando. However, market research has shown that the new transit line may not have a significant impact on real estate prices. But, the realtors are hoping for the best as earlier case studies and reports have suggested that commuter lines play a role in real estate prices. However, the rate of acknowledgment may depend greatly on the type of rail line.

Mixed reactions

 While the realtors seem to be highly optimistic about the SunRail commuter transit, the market researchers have been skeptical if the SunRail would lead to any rise in the cost of real estate. One of the researchers, Mike Duncan suggests that commuter rail stations that include spacious parking lots are generally meant for commuters that live farther away from the station. He also says that these type of Par and ride type of facilities generally have a tendency to have an impact on properties that are in close proximity to the stations.

However, he also suggests that prices of properties located in close proximity to other kinds of transit systems have a tendency to increase once the new system has been announced. As a result, once the transit system is in full function, the prices may experience a rise depending on the market conditions and the scope for further development. In concurrence with Duncan’s findings, real estate agents in and around Orlando have not yet observed any sales driven by the prospect of proximity to the SunRail station as of now. In addition to this, people are also concerned about the noise and other dangers involved in living in close proximity to a rail station.

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Top Schools to blame for higher priced Orlando homes

Posted on by Jenny Zamora

We find ourselves in the age of Super Moms and Dads trying to raise the world’s smartest kids. Getting a great education has become an obsession for most Floridian parents. Being a parent myself, I know first-hand how expensive it can be to send your kids to a good school. And I’m not even talking about college or private schools. I’m talking about top-rated public schools. In order to send your child to a top-rated elementary school, you have to live in that particular school zone which also means that you’re more than likely paying higher than normal housing costs. It’s been proven in Orlando real estate, that the price of Orlando homes found in the zones of higher-ranked public schools are much higher than other neighborhoods that are served by schools that are ranked lower.

As an Orlando realtor, one of the first questions that I get from home buyers with children is “How are the schools around here?” If you’re a good parent then a good education for your children should be at the very top of your list when looking for a place to live. I’ve seen people pay up to $50 more per square foot for a house in an excellent zone as opposed to a house in an average school zone.  

Good News for Home-Buyers with no kids

There’s always a silver lining to every situation and this one happens to be dedicated to the home buyer without children. As parents of tomorrow’s presidents and scientists are paying more than top dollar to live close the best schools, home buyers without kids couldn’t care less how highly ranked the elementary school down the street is.

Homebuyers that aren’t concerned about school systems can get a lot more house for their buck while still living in a nice area. Just because the school systems aren’t the best in certain neighborhoods it doesn’t mean that it’s a bad place to live. Everyone just assumes that a better school district will automatically have bigger houses of much higher quality with larger lots, or a more prime location with views and quiet streets.  

There are plenty of great Orlando neighborhoods where you can still get a nice home at a fair price. We’ve found homes just a short distance apart with nearly identical attributes that are selling for drastically different prices. And when you compare the difference in price per square foot at $50 less, that can easily translate into tens of thousands of dollars on the purchase of a house.

 If you’re looking for a home to buy in Orlando, hire an Orlando Realtor to help you with your search.

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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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