Orlando Real Estate - Blog

The sales of homes for less than the amount owed the bank, known as "short sales," have been widely viewed as an alternative that could help slow the foreclosure epidemic. In theory, delinquent homeowners escape a mortgage they cannot afford, and lenders, although taking a loss, avoid the even costlier process of completing a foreclosure.

Instead, many homeowners are watching potential buyers walk away as months pass while they deal with lenders' lengthy delays, lost documents and unreturned calls, according to the National Association of Realtors (NAR). Not all the snafus are lenders' fault; inexperienced real estate agents who fail to turn in complete paperwork also are causing holdups, as are severely underpricedhomes.

The problems have become such a kink in the market's recovery that banks and the federal government are launching new efforts this month to simplify and speed up the short-sale process. complete story

Source: USA Today - Stephanie Armour

Stop Foreclosure  Save Your Credit Orlando Short Sales

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Orlando's pool of foreclosures swelled in July, and yet the city dropped in a nationwide ranking of foreclosure-prone metro areas because other cities were hit even harder, according to a report released today by the research firm RealtyTrac Inc.

While the number of foreclosure actions in the four-country metro area grew 8 percent from June to July, Orlando ranked 15th out of more than 200 metropolitan areas across the country. In June it had ranked 14th — and in May, eighth.

Florida dropped from third place among U.S. states in June to fourth in July, according to the monthly report compiled by California-based RealtyTrac. Florida continued to trail Nevada and California and has now fallen behind Arizona as a center for foreclosure activity.

"Although Orlando — and Florida — still have a high foreclosure rate, it's not as high as it was," said Daren Blomquist, RealtyTrac spokesman. " ... Many areas of Florida are still foreclosure hot spots, and I would put Orlando in that category. It's consistently in the top 20 nationwide. ... There are areas that are worse, if that's any consolation."

Compared with a year ago, Orlando experienced a 37 percent increase last month in foreclosure-related legal filings, which can include notices of mortgage defaults and notices of pending auctions. The number of filings totaled 7,248.

Other Florida cities in the nationwide ranking ranged from Fort Myers (fourth) to Gainesville (66th).

Within Metro Orlando, Orange County had the highest proportion of foreclosure actions, with one of every 109 households affected by a filing. In contrast, Seminole County's rate was one of every 152 households.

Source: Orlando Sentinel - Mary Shankin

Stop Foreclosure  Save Your Credit Orlando Short Sales

Despite a new report from Zillow.com that the annual rate of home price declines improved for the first time in ten quarters, the company’s COO does not think prices are anywhere near out of the woods yet.

He thinks some of the real estate bulls are not factoring in foreclosures nearly enough.

“One in four Americans now who have a mortgage are underwater on their loan at least somewhat so a lot of Americans can't qualify for Making Home Affordable [govt. modification plan], can't qualify for a loan modification or are caught up in the paperwork and bureaucracy of what it takes to modify your loan,” says Zillow’s Spencer Rascoff. complete story

Source: CNBC - Diana Olick

Stop Foreclosure  Save Your Credit Orlando Short Sales

Orlando's July Completed Home Sales and Contract Filings Nearly Double Over Last Year

Members of the Orlando Regional Realtor Association in July sold 45.45 percent more homes than in July of last year, contributing to the area's year-to-date sales increase of 45.11 percent. There were 2,141 closings in July, which brings the year's total to 12,223, while a total of 8,423 homes had changed by this time last year. Of those July sales, 41.99 percent of the homes were either bank-owned (737) or distressed (162). The remaining (1,242) "normal" sales made up 58.01 percent.

In addition to an increase in completed sales in Orlando, there is more than twice the number pending home sales (7,713) than in July of last year (3,258).

"Pending sales is an accepted economic indicator of future sales activity," explains ORRA President Les Simmonds, L.G. Simmonds Real Estate Corp., "but we are seeing a bottleneck in this category due to the extended length of time it takes to complete transactions involving bank-owned and distressed homes. Another good indicator of market future market activity is the number of newly filed contracts, which in July was 3,696 and the most in a single month this year. In July 2008, there were 1,947 newly filed contracts."

The median sales price of all existing homes sold in July rose 2.92 percent to $135,000 from the $131,175 recorded in June. That same median price is a decrease of 35.10 percent compared to July 2008's median of $208,000.
complete story

Source: Orlando Regional Realtor Association

Homes -The bigger they are the slower they sell!

Housing is fast dividing into two markets: Sales of low- and moderately priced homes are picking up and values have stopped falling in some parts of the nation. But on the upper end, sales remain mired in a deep slump and price declines are expected to accelerate.

Signs of the divide are visible across the country, including in suburban Chicago. In middle-class Schaumburg, Ill., which had a median income of $65,000 in 2007, sales were up 41% in June from the depressed level of a year earlier and bidding wars have broken out on some properties. "I can't even tell you how many I've been in over the last two months," says Joe Stacy, a local real-estate agent.

But 25 miles away in the affluent town of Kenilworth, with a median income of $230,000, home sales have stalled. While there are 65 homes on the market, just 13 have sold this year. "We're extremely oversupplied," says Sherry Molitor, a local real-estate agent. "Sellers are struggling to realize that we're back to 2001-02 prices."

The divide between the mass market and the high-end -- generally defined as homes that cost above $750,000 -- partly reflects the effects of Washington's housing-rescue plan, which is producing winners and losers. complete story

Source: Wall Street Journal - Nick Timiraos & James R. Hagerty

Stop Foreclosure  Save Your Credit Orlando Short Sales

Traffic remains above expectations on strong interest from first time buyers and investors. Buyer traffic remained at solid levels above agents’ expectations in July, as our traffic index was essentially unchanged at 59 from 60 in June, with readings above 50 indicating better than expected traffic levels. Agents said the strength continues to be driven by buyers trying to take advantage of the $8,000 tax credit before it expires and by investors snapping up foreclosures. One agent said, “First time buyers want low prices (bank owned property) and also the $8K tax credit which ends in November. We are also seeing cash investors pouring into market and starting to drive the value up with multiple offers going to highest and best bidder.” Another agreed, saying, “First time homebuyers and investors dominate the market.”

Foreclosure pricing stabilizing, but continued pressures on non-foreclosures. Home prices continued to fall in July, although seemingly at a slower pace than in recent months; our price index improved to 40 from 25 in June, with readings below 50 indicating sequentially lower home prices. Agents noted multiple bids on attractively priced foreclosures, which is helping to create some stability at least on foreclosure pricing, although this continues to pressure traditional sellers. Strong demand on distressed properties led to lower inventory again in July, as our home listings index fell to 78 from 82 in June but remains well above a neutral reading of 50. However, continued high foreclosure rates remain a risk.

Source: Credit Suisse - Daniel Oppenhelm

The percentage of “underwater” loans may rise to 48 percent, or 25 million homes, as prices drop through the first quarter of 2011, Karen Weaver and Ying Shen, analysts in New York at Deutsche Bank, wrote in a report today.

As of March 31, the share of homes mortgaged for more than their value was 26 percent, or about 14 million properties, according to Deutsche Bank. Further deterioration will depress consumer spending and boost defaults by borrowers who face unemployment, divorce, disability or other financial challenges, the securitization analysts said.

“Borrowers may also ‘ruthlessly’ or strategically default even without such life events,” they wrote.

Seven markets in states with the fastest appreciation during the five-year housing boom -- including Fort Lauderdale and Miami, Florida; Merced and Modesto, California; and Las Vegas -- may find 90 percent of borrowers underwater, according to the report.

The share of borrowers owing more than 125 percent of their property’s value will increase to 28 percent from 13 percent, according to Weaver and Shen.

Home prices will decline another 14 percent on average, the analysts wrote.

Source: Bloomberg.com - Jody Shenn

Each month, we publish a series of articles of interest to homeowners -- money-saving tips, household safety checklists, home improvement advice, real estate insider secrets, etc. Whether you currently are in the market for a new home, or not, we hope that this information is of value to you. Please feel free to pass these articles on to your family and friends.

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Have you ever walked into one of the Orlando homes and looked down to see stained carpet or flooring? It brings a little thought of “ew” sometimes, doesn’t it? Imagine if you were a buyer looking at the same floor.

The right type of flooring, and flooring that is well taken care of, can make a big difference to buyers. If your floor brings on the “ew” thought, here are a few fixes to help make sure your home sells:

Does your home have hardwood floors?

You’re in luck. Buyers love hardwood floors and some will actually pay extra to get them. In fact, it could be that final selling point. If your hardwood floors are covered by carpet, painted over or showing anything but the natural wood grain, it’s time for an overhaul. Pull up those carpets and get to sanding.

With the ability to rent large sanders and other tools, you can either refinish the hardwood floor yourself or hire a professional. Remember, however, that hardwood floors in Orlando homes have a tendency to show off scratches, dents and uneven surfaces. If you don’t think you could do a good job, hire a professional.

Does your home have carpeting?

If you don’t have hardwood floors, take a look at your carpeting. If it’s stained, out-dated, bright or ragged, it’s time to pull it up. When laying the new carpet, use good carpet padding to make it comfortable to stand on. Many buyers will lean down and touch the floor, so make sure the carpet feels soft to the touch.

In addition, don’t go for the bright colors. Pick a neutral carpet color that goes well with the home.

Does your home have tiles?

Although tiles are beautiful, they typically show every ounce of old grime, dirt, chips and cracks. Go through your home and replace any that are chipped, cracked or show signs of bad wear and tear. Make sure the grout is clean and new looking, and use cleaners (or a steam cleaner) to get rid of any stains.

Beautiful floors can go a long way towards selling Orlando homes. Take a good, honest look at yours. Show your floors some TLC. It might just get your home sold.

If you’re ready to sell your home, we can help. Call us at 407-876-5771 for more information.

If you’re looking for the right price to list your Orlando home for sale, you may need to call on a real estate professional. Pricing your Orlando home to sell in this buyer's market is part research and part experience.

You don’t want to overprice your Orlando home for sale because you don’t want it to sit on the market week after week. A home that is priced too high for the area will not attract as many buyers as a more reasonably priced home. If you price your home below market value, you’re likely to receive several offers that will drive the sale price up, so you don’t have to worry about getting less money for your home than it’s worth.

A good way to get an idea of the current value of your home is to get the sale prices of homes that have recently sold in your area. Your real estate agent can gather that information for you. Look for homes similar to yours in size, location and condition.

When setting the price of your home, you may also want to take a look at the listings that have expired in your area. You may find that the homes were overpriced for your neighborhood or that some homes remain on the market because the home wasn't updated or in good condition. Try to learn what caused the listing to expire and work to avoid the same mistakes.

You should not list your Orlando home for sale at a price that you aren’t comfortable with. Explain to your agent the concerns that you have about the home’s sale price and ask for his or her professional opinion about the price that you have chosen.

Want help pricing your home correctly? Let us put together an analysis of current home prices in your neighborhood. It's free and at absolutely no obligation. To get your analysis, call us today at 407-876-5771.

Orlando foreclosures are a sad fact of life. The truth of the matter is that, for many, even loan modification isn’t an option. When faced with foreclosure or short sale, how do you decide which is best? While short sales have been pushed by many as a viable option, it’s hard to know what’s best for you. Here are some facts about the consequences of both:

Your Credit
While both Orlando foreclosures and short sales will affect your credit score, the differences are wide. A foreclosure can affect your score for as long as three years or more, and lower it as much as 300 points. The foreclosure can remain on your public history for over ten years.

However, only late payments show on your credit with a short sale. Your score can drop as little as 50 points and be affected for as short as one year. In addition, it isn’t reported on your history; it will show that the mortgage was settled and paid in full.

Your Job
On its own, a short sale generally doesn’t affect your employment. However, a foreclosure is a different story. Some employers regularly check their employees’ credit records. As well, many require credit checks for new hires. A foreclosure on your record can jeopardize your current position or future opportunities, as well as cause the revocation of a security clearance.

Judgments
In the event of a foreclosure, many banks have the right to try and get a deficiency judgment, stating that you have failed to pay the entire amount of the mortgage. With short sales, however, lenders will normally agree to give up the right to that judgment and put it in writing.

Lastly, keep in mind that Orlando foreclosures generally close below the price they would get from a short sale, so the remaining balance might be significantly higher with a foreclosure.

If you want to stay out of foreclosure through short sales, we can help. Call us at 407-876-5771 for more information.

Stop Foreclosure  Save Your Credit Orlando Short Sales

Selling a home isn’t easy, especially now. Yet some homeowners believe they can stick a “for sale” sign in the ground and have the house off the market within a few days.

While FSBO (For Sale By Owner) sales do occur, four out of five homeowners still use a Orlando real estate agent. Why? Because selling your home on your own is hard work, and even more importantly, statistics prove that real estate agents get homes sold faster and for more money than FSBOs.

If you’re not sure what you should do, here are a few things to think about:

FSBO
Sometimes, for sale by owner purchases are a good deal for the homeowner. That doesn’t mean you should just jump in, however. FSBO might be a good thing for you if:

1. It’s a seller’s market
2. You don’t care how long it takes
3. You are unwilling to pay the typical Orlando real estate agent commission
4. You have a good attorney who can keep you protected for the legal aspects
5. You have the time to learn how to do it, answer the phone and provide open houses
6. You’re comfortable negotiating
7. You’re confident you can price your home correctly

Real Estate Agent
Although you will have to pay your agent a commission, there are some definite benefits to hiring one:

1. A good agent can help you price your home correctly.
2. They have an abundance of resources to help find buyers, get the best price and get your home sold.
3. They make sure the potential buyer can actually afford it.
4. They’re good at negotiating and aren’t emotionally invested in the sale.
5. If for no other reason, they’re interested in getting the highest price possible because of their commission.
6. They put in several hours a day, that you may not have available, to get your home sold.
7. They have advertising resources, such as real estate magazines, that you may not be able to touch (or afford).

A Orlando real estate agent may not be the best way to go for you. On the other hand, you may not have the necessary information and time required for FSBO. Before going one way or the other, take the time to really look at both sides and decide which works well with what you expect from the sale of your home.

If you've tried to go the FSBO route, and it didn't work out, or if you know FSBO isn't for you, we can help. Call us at 407-876-5771 for more information.

Driving down the streets of the city, you’ll see a lot of Orlando homes for sale. What you’ll also see, however, are homes for rent. What’s the difference? Why did these people decide to rent out their home? Why did that homeowner become a landlord?

There are a lot of reasons for renting out your home, rather than adding it to the list of Orlando homes for sale:

1. The competitive factor – The Orlando housing market is great for homebuyers, but not so great for home sellers. With so many homes to choose from, your property has to stand out from the rest to get sold. Sometimes, it could take months, or even years, to sell your house. During that time, renting can be a good way to make the house profitable.

2. Belief that the area will grow – Many people need to move out of their first house because it doesn’t have enough room for their growing family. However, they think the area has a lot of potential and will be growing. It then becomes a real estate investment. They may want to sell later, but not during the real estate slump.

3. Not sure if they want to sell the home – Another set of landlords have moved to a new city and job, but aren’t sure whether they’ll like it or not. Renting is a way to cover the cost of the house. This is a “just in case” prospect, and works well for many.

4. More money – Especially with the housing slump, some landlords have been able to make more money renting than selling their house. Because housing prices are currently very low, many owners have found renting their home more profitable than selling it for a lower value.

If you’re trying to determine if you should sell or rent your home, we can help. Call us today at 407-876-5771 for more information.