Orlando Florida Real Estate - Market News & Information

A glut of unsold homes continued to grow last month, fed by a new wave of foreclosures, even though sales of existing homes rose, a national real estate trade association said Wednesday.

The National Association of Realtors reported that the inventory of unsold houses, townhouses and condominiums rose to 3.97 million in April, the highest level since November. At the current rate of sales, it would take 10.2 months to exhaust those unsold properties.

“We’ve got all this looming inventory out there, and the likelihood that whatever gains we see in sales are going to be pretty anemic,” said Joshua Shapiro, chief United States economist at MFR. “If you look at the broad middle of the market, price adjustment has a long way to go because of this whole inventory issue.”

Housing experts said more homes would come on the market as the job market deteriorated, threatening previously secure homeowners.

An additional 313,000 homes entered foreclosure in the first two months of 2009, according to First American CoreLogic, a real estate analysis firm. More are expected as one-time delays to foreclosures end, and lenders resume proceedings against delinquent homeowners.

Although home builders are starting few new projects, the supply of houses is still overwhelming the market. The Realtors’ association said inventories grew last month even though sales of previously owned homes picked up as buyers went looking for bargains and lower-priced properties. complete story

Source: NYTimes.com - Jack Healy

Stop Foreclosure  Save Your Credit Orlando Short Sales

I heard a startling statistic from the National Association of Realtors this morning…no not that home sales are actually increasing, but something about the high end of the market.

Chief economist Lawrence Yun said that the supply of existing homes for sale over $750,000 has reached a forty-month supply. Yep, that means it would take well over three years at the current place to sell off all of those homes.

The trouble is manifold: Jumbo loans are pricier and more difficult to get, job losses are mounting, and buyers in that price home are generally move-up buyers, so they have to sell their own homes first. I asked Mr. Yun if, given how hard it is to sell a home in that price range, he expects to see more foreclosures of high-end properties. He said absolutely.

That’s going to mean a new phase of the current housing recession. So far we’ve seen the “correction” of a boom market that was driven by faulty, exotic loan products, investors looking to make a quick buck, and average Americans using their homes as ATMs. Now the losses are being driven by traditional economic factors and by sweeping price drops across the nation.

Yesterday Fitch ratings estimated that up to 75 percent of the modifications now being done through the administration’s Making Home Affordable program will re-default in six months to a year. I’m not talking about the old mods, which were largely repayment plans that could actually raise monthly payments. I’m talking about the new mods, which lower monthly payments to 31 percent of a person’s income. I couldn’t understand Fitch’s reasoning, so I called them. complete story

Source: Realty Check - Diana Olick

Stop Foreclosure  Save Your Credit Orlando Short Sales

The street is predicting existing home sales to increase, based largely on the sales surge of distressed properties. No question, the bottom feeders are back in the game, as are first time home buyers.

But these sales are not the type of sales necessary for meaningful recovery in housing. Don’t get me wrong, we need to unload the foreclosure inventory, but without real “organic” sales, that is move-up home buyers and sellers, there is no way to put a bottom on home prices.

I know there is a common perception that foreclosures and distressed sales are really only happening in the big boom-to-bust states, i.e. California, Florida, Nevada and Arizona. California makes up roughly 10 percent of the U.S. population and very roughly ten percent of the nation’s total housing units. complete story

Source: CNBC.com - Diana Olick

Stop Foreclosure  Save Your Credit Orlando Short Sales

Short sales - where a lender agrees to take less than it's owed on a mortgage - are rising sharply. Here's how you can profit.

(Money Magazine) -- When Brian Gavitt, a physician, and his wife Gayleen, a stay-at-home mom, started to eye homes in Sacramento last winter, they knew they were looking in the hardest-hit areas of the housing bust. So the couple, who were relocating from Lansing, figured they could land a fantastic bargain in no time at all.

The part about the bargain turned out to be true. The Gavitts bought a five-bedroom house in the upscale Natomas Park neighborhood ("Even now, you don't see FOR SALE signs up anywhere," says Gayleen.) And it was a steal at $300,000, a full $200,000 less than they would have paid just two years ago.

The amount of time it took to land the deal was another story. It was more than six months from when the Gavitts first saw their dream home to the moment they held the keys in their hands. The reason: The home they bought was a short sale.

Not along ago, few people had even heard of a short sale, which occurs when the bank agrees to discount the loan balance for a seller who owes more on his mortgage than the home is currently worth.

If you're in the market for a home today, you're almost guaranteed to be looking at some short sales. Nationwide, 14% of homeowners are currently underwater on their mortgages, calculates real estate website Zillow.com. And in many areas, it's far more: In the Gavitts' zip code, for example, over half of homeowners would owe more than their home is worth if they sold today, calculates Dee Schwindt, the Gavitts' realtor.

The good news is that short sellers are likely to still be living in the home and some may even be current on their payments. That means these aren't the run-down, distressed properties that you often find among foreclosures; in fact, there's a good chance that some of the most deluxe homes for sale in your market are underwater.

Before you get too excited about buying a short sale, know that they generally aren't, well, short. For the sale to go through, the seller's lender must approve the price and agree to take the shortfall as a loss. That extra step can cause the process to drag on three times as long as a normal home sale.

But as the Gavitts discovered, the hassles can be well worth it. Some buyers and realtors don't want to deal with short sales, leaving many choice homes with very few bidders. So if you're willing to brave the intricacies of the process, you'll be far more likely to land the home you always wanted. The key to snagging a good deal is knowing how to avoid the land mines. complete story 

Source: CNN Money.com - Joe Light  

Warren Buffett said that the real estate business his company Berkshire Hathaway owns is seeing a small improvement in housing demand. The National Association of Realtors seemed to confirm his observations when it announced that the index for pending home sales went up in March. This data helped send the stock market higher as it stays true to form by rising on the most modest news.

Except for low home prices and very low mortgage rates, all of the elements for a recover in housing are missing. Those two things should be enough, but balanced against them are shrinking access to credit, an inability of Americans to get higher wages, and crippling unemployment.

The April unemployment figures will be out later this week. Six hundred thousand people lost jobs last month, according to most estimates. Two and a half million people have lost work since the beginning of the year. A housing recovery cannot occur in the presence of the massive collapse in unemployment. The devastation of the potential home buying base is too great. Many of the people who lose jobs will also lose their houses and that increases the inventory of unsold homes.

Consumers have lost access to credit. The fact that mortgage rates have dropped does not even begin to offset that. Qualifying for a mortgage is harder than ever. Banks have reason to be cautious. One of the large credit bureaus just released a report that says 4.7% of payments for bank-issued credit cards were late sixty days or more in March, an increase of 38% over the same month last year. According to Reuters, "In March, lenders closed 20 million card accounts, sending the total down by 58 million since the peak in July 2008 to 380 million." Banks will not be lending to consumers as long as there are no solid and sustained signs of an economic recovery. They cannot afford the risk after all of the write-offs they have already taken. complete story 

Source: Time.com - Douglas A. McIntyre

Stop Foreclosure  Save Your Credit Orlando Short Sales

Orlando Home Prices Drop Leave More Underwater 41.7%

The downturn in home prices has left about 20% of U.S. homeowners owing more on a mortgage than their homes are worth, according to one new study, signaling additional challenges to the Obama administration's efforts to stabilize the housing market.

The increase in the number of such "underwater" borrowers comes amid signs that falling prices are making homes more affordable for first-time buyers and others who have been shut out of the housing market. But falling prices also make it more difficult for homeowners who get into financial trouble to refinance or sell their homes, and for others to take advantage of lower interest rates.

Borrowers who owe far more than their home is worth may also be less likely to participate in another part of the government's housing plan, which provides incentives for mortgage companies to modify loans to make payments more affordable. Thomas Lawler, an independent housing economist, said borrowers who owe 30% more than their homes are worth are far more likely to walk away from their property than those who owe just 5% or 10% more and expect prices to rebound. More than one in 10 borrowers with a mortgage owed 110% or more of their home's value at the end of last year, according to First American CoreLogic. complete story

Source: WSJ.com - Ruth Simon & James R. Hagerty 

Stop Foreclosure  Save Your Credit Orlando Short Sales

There are a few misconceptions about buying Orlando real estate for sale by owner (FSBO).

Seller Isn't Serious

Some buyers think that the seller isn’t serious about selling the house, that they’re just testing the market. While this is true in some cases, most sellers will accept an offer that is close to the asking price at any time.

Sometimes Orlando real estate for sale by owner will sit on the market for a while. This may be because the owner is not open to negotiations on the sale price. More often, it’s because the owner doesn’t have the experience showing homes to potential buyers that a real estate agent does. A typical owner isn’t likely to have the time to properly market the house. If there aren’t enough buyers looking at the house, it’s going to be harder to get a good purchase offer.

Real Estate Agents Can't Help

Some buyers believe that real estate agents can't help negotiate the purchase of a FSBO. That's not true. If you find a FSBO you're interested in, whether you find it because you drive by it or see it in an advertisement, let your [city] real estate agent know. Real estate agents can represent your best interests when purchasing FSBOs, just like they do when purchasing homes listed with real estate companies.

If you do happen to come across a for sale by owner that you just love, you need to include several things in the purchase offer to protect yourself. These include:

· Home inspection required that shows there are no significant defects or pest infestations in the house. Make sure you hire a credentialed home inspector; you do not want to buy a house that needs major repairs.

· Appraisal of the home is a specific value. You don’t want to agree to buy a house for more money than it’s worth.

· Clear title on the property.

· Seller disclosures. The seller is required to give you all the same documentation you would expect to get from an agent-represented seller.

· Mortgage approval.

With a for sale by owner, you never want to give the earnest money check directly to the seller. A third party, like a real estate broker or title company, should hold on to all earnest money. If you give the money to the seller, there is no legal trust entered, and you lose the ability to determine how the money is used.

If you're interested in buying a home, whether it's a FSBO or not, We would like to help you.

It can happen to even the best Orlando home. It has great curb appeal and the interior shows well. So, why isn't it selling?

Even if your home is the best home in the neighborhood, it can still end up languishing on the market as others around it sell. So, what can you do to get your home sold?

Check Your Price

Being over priced, even by a relatively small amount, is the most common reason homes don't sell. The wrong price can prevent potential buyers from even looking at your home. Keep your emotions out of the calculations. Of course, you love your home and think it's very valuable. But, you need to look at it as an impartial outsider. Examine the facts and figures presented by your real estate agent, and take his or her expert advice. Price isn't the only factor to consider.

Picture It

Homes marketed with only one or two photos are passed by. The more photos the better, but any old photos won't do. You need quality photos. Consider hiring a professional real estate photographer, or work with a real estate agent who will get professional photographs for you.

Promote It Online

These days almost 80% of all buyers start their home search online. Make sure your home is marketed on multiple websites to get the broadest possible exposure. In addition to using multiple photos as mentioned above, a great online marketing tool is a virtual tour. Ask your agent to create a professional virtual tour for your home.

Market it Everywhere

Advertise your home in as many ways and as many places as possible. Here are a few ideas:

· Colorful flyers

· Home magazine ads

· Postcard mailings

· Emails to other agents and potential buyers

If you would like more information on how to get a stagnant Orlando home moving, contact us.

There are several important criteria to consider when buying Orlando real estate for investment. Some of the items will vary depending on the reason you are buying and the type of investment you are looking to make.

Long term investments such as rental properties can take longer to pay off but the income is consistent. Short term investments such as buying for quick flips may pay off larger but can be a less regular form of income.

When buying a home for either long or short term real estate investments, it is very important to know exactly what your costs will be compared to potential income. That should be your primary deciding factor when buying investment properties.

Short Term Orlando Real Estate Investments

When you are looking at short term investments like re-sales and flipping, the potential profit needs to be larger to cover both the inconsistent nature of that type of investment and the slightly larger risk. Orlando real estate purchased for short term investment also needs to be very appealing to ensure quick turnover. Languishing on the market once you have relisted it eats away at your profits.

Vacant Land as Real Estate Investment

Another type of investment property is vacant land you can subdivide and resell, or develop on your own. If you're considering that type of real estate venture, know that it requires quite a bit of homework.

· You will need to check out the zoning laws to be sure your plans are allowable without going through the hassle and possible failure of rezoning.

· You also need to pay close attention to the initial and long term costs associated with developing your vacant land.

· You need to know exactly what is possible such as how many units can be placed on a given parcel to be sure the property can accommodate the number of resale units you require in order to make a profit.

If you would like more information on investing in real estate, please contact us.

If your Orlando home has been sitting on the market for more than three weeks, it's already an "old property." Being an old property hurts sales because buyers looking in that community wonder what is wrong with your home that's keeping it from selling. Even in today's slower market, that holds true. It's human nature to think something must be wrong with an item that hasn't sold quickly. There are things you can do, however, to spruce up your home to make it more appealing and help it sell faster.

A second look from potential buyers can be a life-saver to you when selling your Orlando home. If a previous looker was on the fence, just a few little changes might make them reconsider. Ask your Orlando real estate agent to share negative comments from walkthroughs. Don't be offended, instead, find a way to overcome that dissatisfaction. If one person felt a room was too dark, too crowded, too cluttered, it is likely others will too.

After you address those issues, consider how your Orlando home really looks. If you haven't had time to do much landscaping get out there and plant a few border plants along the walk, or line the front of your house with some attractive flowers. At the very least, make sure lawn, trees and shrubs are trimmed, pruned and weeded to make your yard look as neat as possible.

Paint the inside. If you walls haven't been painted recently, chances are they could use some sprucing up. Your buyers want a home to sparkle and a new coat of paint is a cheap way to make that happen.

If you would like more ideas on how to make your home more attractive to buyers, We can help.

How Can Obama's Housing Plan for Orlando Real Estate Help You?

The housing plan included in President Obama's stimulus package has many good qualities that will help those seeking Orlando real estate.

There are two main points to the housing plan:

1. To help people once again obtain reasonable mortgages to afford the home of their dreams.

2. To keep people in the homes they already have. If it works the way it is planned, it is reason for a collective sigh of relief for millions of homeowners feeling threatened by foreclosures.

That's really it in a nutshell. There are many incentives wrapped up in each of those two areas to help both homeowners and prospective home buyers, but the very impetus behind the stimulus housing package is simple.

For Current Homeowners

If you have a current mortgage that you can't handle, now is the time to talk to your mortgage company. Don't wait too long because some of the detailed elements of Obama's housing plan are meant to be short-term in their offer so as not to over-tax the budget. While you have the chance, see if your mortgage can be reduced to reflect current home values. That can provide you with the equity you would have already built up but lost due to a drop in housing values. It will also lower your monthly mortgage to a manageable level.

For New Home Buyers

This is your market now. The Orlando real estate prices are much lower which gives you a chance to buy a home you might not have been able to afford before. President Obama's housing plan provides tax incentives for you. However, just like with current homeowners, the time to do this is now. Because of the stimulus to the Orlando real estate market, housing values are not going to stay as low as they currently are. Also, many of the incentives like the tax credits are valid for a very limited time.

If you’re ready to take advantage of the stimulus package benefits by buying a home, We can help.

You’ve finally decided you want to buy a piece of Orlando real estate. What do you do now? Here are a few tips for getting the best deal for your money:

Check Out Your Credit

The first thing you’ll want to do is order a copy of your credit report from the three major credit bureaus: Experian, TransUnion, and Equifax. Look for inaccuracies in:

· Name

· Address

· Creditors

· Late payments

· Delinquencies

After you’ve reviewed your credit report and know your credit score, you’re ready to make improvements to your report, if your credit score is too low. Send a written “Notice of Correction” to the credit bureaus. It can be up to 200 words. If needed, you can explain why you fell behind on a particular debt, and every time a lender accesses the report, they’ll see your explanation.

It can take several months to for your credit score to go up. However, it's well worth the effort to get a better interest rate. It can save you thousands on your Orlando real estate.

Get Pre-approved

Before you start looking at properties, it’s a good idea to get a pre-approval letter from a lender. The lender takes into consideration your income and credit history. Then the lender determines the loan amount for which you qualify.

Most pre-approval letters list the maximum amount for which you are approved, not necessarily the amount you can afford. Look carefully at your budget so that you don’t get too excited about the number and get into more house than you can afford.

There are several benefits to getting pre-approved. It allows you and your Orlando real estate agent to narrow down the house search. That way you won't waste time seeing properties you can’t afford. Also, sellers will give your bid more weight if you're pre-approved.

Are you a first-time buyer? You have just made a fabulous decision for your future. There are tons of great buys in the Orlando real estate market. We are specialist in this community and would love to help you buy the home of your dreams.

There are many items you own that never move from the spot you placed them when you brought them home. Some of these objects are very large like televisions or cabinets. Other belongings are lighter but extremely delicate. Valuable items can either be very expensive or just full of sentimental value. How do you protect them from possible damage or loss during a move to your new Orlando home?

· Beg, borrow, or buy bubble wrap. It protects your valuables better than just paper. However, when paper will do, go to news outlets and ask for old papers you can get either at a great discount or for free for wrapping.

· Use old carpet or moving pads to protect your furniture. Even if items are unlikely to break outside of a catastrophe, they can still get scuffed or bruised. Padding protects your wood furniture from dings and your cloth furnishings from tears or rips.

· Get Insured. Yes, you can get moving insurance, and if you have valuables you can't afford to replace, it is well worth the expense. With many televisions costing upwards of a thousand dollars a piece, it's a good idea to make sure that if the unspeakable does happen you can replace them. While some things can't be replaced, at least you won't be without both the item and the money it was worth if you have your things insured. Accidents happen whether you hire professionals or move your possessions yourself. So, having insurance is the smart way to go when moving to your new Orlando home.

Don't forget to protect your most valuable possession—yourself. When moving heavy objects, use care and lift properly to avoid hurting your back or pulling muscles. Keep small children out of the way of traffic. Board your pets, or get a friend to pet sit, to ensure their safety on a hectic moving day.

If you would like more moving tips, subscribe to this blog. It's easy and free.

There are many wonderful reasons to want a home of your own. Right now is an excellent time to pick up a great deal on Orlando real estate. It's definitely a buyer's market where you can purchase homes at historically low prices. To be sure the time is right for you, answer a few simple questions for yourself:

Are you ready to stay put for more than three years?

If you move around a lot, have a job that sends you to different locales all the time, or just haven't found the area you want to settle down in, it can be a bad time to buy Orlando real estate no matter how great the price. Selling a home and moving is much harder than just switching apartments or other rental units. However, if you are ready to settle in a spot for a number of years, the value you get from owning your own home is well worth it, especially now.

Can you afford it?

There's more to owning a home than just the cost of the mortgage. Other costs added to a typical mortgage include homeowner's insurance and property taxes. These add hundreds of dollars a month to the simple mortgage costs. On top of those are routine repairs and upkeep that will be your responsibility instead of a landlord's.

Do you value the pride of ownership?

For many people, the pride of owning their own home is a primary factor in purchasing Orlando real estate. There is a feeling of success and security when you own your home that won't be fulfilled with any rental.

If you'd like help determining if now is the right time for you to buy a home, give us a call.

If you are thinking about buying Orlando real estate in the near future, there are three activities you should avoid. These are normal things we all do from time to time, but are unwise when contemplating a new mortgage application.

1. Change careers: This is different than just changing jobs. If you have recently gotten a new job in the same field, at the same or better pay, and your past history shows long, solid employment, all should be fine. Changing careers entirely is more of an issue. You have no history of steady employment and income in the new field. Since you're new to the field, you may be bringing in less income than in your previous career. That's why a recent career change makes your mortgage application less appealing to a loan officer.
2. Open new bank accounts: When you apply for a loan for Orlando real estate you need to provide bank statements for several months. Although your money is still in your possession, moving it to new bank accounts generates a series of big withdrawals and deposits which gives an image of instability. If you have withdrawn large amounts of money and not redeposited it, that looks even worse. Even if you invested the money in something solid, you no longer have the cash and thus appear less solvent.
3. Buy Big Ticket Items: The reason for this is simple. When reviewing a loan application for Orlando real estate one of the biggest things a lender takes into consideration is your debt-to-income ratio. Purchasing expensive items on credit can negatively impact your debt-to-income ratio. Wait until after you've closed on your home to buy new furniture or appliances.

Thinking of buying a home? We can help you get financing and buy the home of your dreams.

Home sales may get a push

First-time homebuyers soon could get even more incentive to buy a house this year, officials for the U.S. Department of Housing and Urban Development said Tuesday.

HUD Secretary Shaun Donovan said the department is days away from finalizing a plan that would allow first-time homebuyers to use the federal government's $8,000 tax credit on a down payment and closing costs instead of waiting until they file their tax returns to get it.

Under the proposed plan, HUD-approved lenders, nonprofit groups and government entities would issue bridge loans to borrowers before their closings. The loans would be paid back from the borrower's tax credit.

Real estate and homebuilding groups have been pushing for the change and say it will spur home sales and lead to a quicker recovery of the troubled housing market.

"This will help homebuyers who are a little short on down payment but want to get into the market," said Paul Bishop, an economist with the National Association of Realtors. complete story

Source: Tampa Bay Online - Shannon Behnken

Orlando No. 10 on foreclosure list

The Orlando area and the Sunshine State ranked among the highest areas for foreclosure rates in April, according to RealtyTrac’s most recent report.

The Orlando market notched the 10th highest foreclosure rate among the nation’s largest metropolitan areas, while Florida overall had the second highest foreclosure rate with one in every 135 homes receiving a foreclosure filing in April.

Florida’s foreclosure rate, which was 37 percent higher than March’s rate, was more than 2.7 times the national average. Bank repossessions totaled 6,114, down 7 percent from the previous month, but default and auction notices were considerably higher, the report said.

Only Nevada posted a higher foreclosure rate than Florida, topping the nation with one in every 68 homes receiving a foreclosure notice.

The Sunshine State also reported 64,588 foreclosure filings in April, second only to California’s 96,560 filings.

Nearly half of the 1,741 closings in April — 865 — were either bank-owned of distressed properties, the Orlando Regional Realtor Association reported May 11. Values, according to the association, continued to fall as the median price was $132,900, 37 percent lower than the same time last year.

RealtyTrac tracks more than 1.5 million default, auction and bank-owned listings from more than 2,200 counties nationwide.

Source Orlando Business Journal - Anjali Fulker

Stop Foreclosure  Save Your Credit Orlando Short Sales

Surge in sales of lower-priced homes indicate a healing housing market

Members of the Orlando Regional REALTOR® Association in April sold nearly seven times more homes in the lower-price range categories than in the upper categories, which according to economists is typical of a rebounding market.

“Orlando’s housing market appears to be following a recognized healing pattern — from the bottom up — as evidenced by the greater number of sales in the lower-price categories,” explains ORRA President Les Simmonds, L.G. Simmonds Real Estate Corp. ”For example 75 percent of homes sold in April were purchased for less than $200,000, while 10 percent sold for more than $300,000. And, we expect the ratio of sales of lower-priced homes to increase exponentially as more and more first-time homebuyers seek to take advantage of the $8,000 federal tax credit.”

Sales activity in the lower-price categories gradually stimulates sales in other categories as sellers who want to become trade-up buyers are able to sell their current homes. complete story

Source: Orlando Regional Realtor Association

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Fl Realty Agents .com

FL Realty Agents .com is one of the leading team of agents in South Florida engaged in real estate, foreclosure homes & property dealing, short sales. Contact us today if you are interested in Miami, Fort Lauderdale or Palm Beach area properties. We cover all of Broward, Miami-Dade & Palm Beach County.

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Florida short sale Agents .com can help people, who are behind on their mortgage payments, can no longer afford their homes, but want to avoid foreclosure regardless of good or bad credit. We service the South Florida tri county (Broward, Miami-Dade, & Palm Beach) metro areas like Miami short sale - Fort Lauderdale short sale & Palm Beach Short Sale.