Bank Foreclosures Selling 2X the Rate

Days on the market is the number of days that a property is on the market before its under contact or called "pending" in the Multiple Listing Service. Here are how fast properties are moving in Orlando.

• Bank Owned Properties are on the market for an average of 59 days



• Distressed Properties, such as short sales are on the market for 209 days



• Normal sales-not bank owned or short sales are on the market for an average of 125 days

Collectively with all home types the average days on the market for an Orlando home is 104 days. You can see bank owned properties sell faster than any other type sale.

What makes a property a “Good Buy”?

It all depends…on many things. Mostly on what you think your home should have and what is most important to you. To some buyers, the purchase price may not even be a factor on a “good buy”; to others privacy is everything.

Buyers all have a “hot button”…something that will make them pick one home over another. What that is, varies from one person to another and may swing from one need to another, just like a Florida breeze.

The price. If getting a financial bargain is most important than please do not expect a long list of other features this property must have. Cheap properties are usually priced that way for a reason….because they need work, or they have a poor location, or they have a funky floor plan or maybe they are just unappealing. It is rare that you will find a beautiful home with all top upgrades, bells and whistles, in a great location, at a “give-away” price. Most such homes exist only in advertisements with pictures that can look deceiving, descriptions that are “puffed” up and locations that you have not yet seen.

Location: Does a good location always mean it is a central location…not necessarily. You may want a home located near a particular school, near shopping, or in a gated community. Someone else may think a good location is golf frontage, an oversized cul-de-sac lot, or out in the woods with no neighbors. If you are looking for a location out of the norm, than you cannot be picky about the style of house. For example, it your #1 desire is to be on located on prime Lake Frontage and your investment has a budget, you just may have to settle for a bit less of a house.

Features: If your desired features can be added or changed, this should not be a deal killer if the price is right. If the house needs landscape, that is curable. A pool, fence and fresh paint can also be added…carpet and countertops can be changed. If a feature can be fixed, added or changed, and you are willing to alter some things, your ability to look at the possibilities and past the outdated colors can put money in you pocket.

Summary: Home buying is always a trade-off. You will never get the perfect combination, as it will always be that one property has the perfect floor plan, another has the perfect location, and another will be the best price. Stay flexible in your wants…if the house has solid possibilities, buy it, and then make it perfect.

If you want to know how much house your budget will buy just ask us.

Cities Get First Crack at Bank Foreclosures

In an effort to improve cities and communities that have been hardest hit with foreclosures that is part of HUD Housing Stabilization Program. Bank of America will give cities first shot at purchasing their bank foreclosures before the go into the multiple listing service. These will be no haggle bottom line pricing.

Maximize Marketing of Your Short Rental

There are many owners that own a short term rental property in the Disney area, which are rented to people on vacation or holiday. When an owner selects a property management company they forget to find out if the property manager will market the property. If your rental is not marketed well it could result in low number of bookings.

Here's what we have found out. Almost all property management companies have websites where you can view their inventory of homes, but not all of the pay to make the websites visible on yahoo or google for instance. So if you cannot find the website through online search, then could have a negative impact on bookings. Also some companies have mulitple websites.
Many do, but not all have relationships with tour operators. This is important because this can create volume of bookings.

To optimize marketing of your short term rental:

• Make sure you can find your property online.


• Select a Property Management Company that contracts with Tour Operators.


• Create your own website, and use Paypal services to collect your income, even in different currencies. Here is a web company that designs for short term rentals, one of our clients uses.


• Market your own website for free with Save Property Managment, who also does property managements services, if needed.


• Pay to have your rental property on other website such as, http://www.holidaylettings.co.uk/ , http://www.holiday-rentals.co.uk/, http://www.vbro.com/

Are homebuyers really pulling the strings?

Depends on what price range you are thinking about…. If it is $300,000 and up, than yes, the buyer probably still has the upper hand.

If it is $300,000 and less, then the seller has the prize possession that the buyers all want. The majority of homes in this price range are short sales and if there is a property for sale that the buyer can actually own next month (not a short sale that buyers have to wait for, and wait for and wait for…) then the house is the king and almost guaranteed to get multiple offers.

Bank owned properties are getting the lion’s share of multiple offers and dozens of offers coming in (within days) is not unusual. Offers of 25% over list price are further fueling the bidding wars.

Bottom line is this…if you find a property that is still available and has most of what you want, do not think about it…make an offer today, because tomorrow it may be gone.

If you want to know the “real” story about foreclosure and short sales, send us an e-mail at info@Orlando-BuyersAgent.com and we will e-mail you our latest version.

Another Blow to the Real Estate Market

Now a new challenge has emerged to slow down real estate again, this new law appraisal law for Fannie Mae and Freddie Mac backed properties. This law no longer allows a lender or mortgage broker to order an appraisal from the company of there choice. They have to go through Appraisal Management Companies with no choice in the appraisal company. Many problems have occurred higher appraisal fees to consumer because of middle man fees. Lower fees to appraisers which means the quality of the appraisal is suffering and appraisers going out of business. Appraisers not familiar with areas of the property and values are off. Delays in the transaction if another appraisal is order, and additional expense to buyer. Not to mention if there are delays on the buyers side in foreclosed property the buyer is charged from $100-300 for each day delayed from closing. Here is a very detailed article from Orlando Sentinel and here is a video worth watching.

3.5% Down Gets You into New Downtown Orlando Condo

Newly constructed condos have to meet certain financing requirements set forth in Fannie Mae guidelines to get you into a newly constructed condo with a minimum 20%, but at 101 Eola Condo you can buy as little as 3.5% down through FHA Financing. These are the only newly constructed condos in Central Florida approved for FHA Financing, according to recent article in the Orlando Sentinel.

This is what I like about 101 Eola Condos, that sets it apart from other downtown condos. First off the interior finishes are lovely with all the upgrades included nice cabinetry, hard wood, tile floors, granite, large balconies, floor to ceiling windows. When you walk in these units, you know no short cuts have taken to complete these interiors. This building has a boutique feel with 12 floors, with neighborhood views, you do not feel that you are in a tall office building like other downtown condo buildings, has nice pool area and well equipped gym. A neighborhood Mexican Cantina opening up the first floor. It is in a great location, with quick walking distance to Lake Eola, Publix, and Thorton Park. Their floor plans are very unique, especially the 2/2 corner units have wall of windows from both bedrooms, family room, dining room, so you have outside views from every angle. These corner units are something to see.

If you are looking for smaller scale condos, newly built, with quaint atmosphere, well appointed interiors, a neighborhood feel, all the amenities, with walking distance to everything, this is the place for you.

Please click here to see available units 101 Eola Units for Sale. For more information on these condos, or other downtown condos, please contact us at Info@Orlando-BuyersAgent.com

Down Payment Assistance Funds Decreased for SHIP

State Housing Initiative Partnership Program (SHIP) is a downpayment assistance program that provide buyers money toward their home purchase. Orange County was suppose to be paid $6 million from the State of Florida, but the State used it to balance the budget. Therefore, in order to keep the program going for the next fiscal year, the program benefits have changed effective on June 23, 2009:

Very Low Income $25,000
Low Income $17,500
Moderate Income $5,000

Orlando Condo Sales up 206%

Orlando Condos sales sky rocketed in May with an increase 206% which was the biggest gain in the state. Many condos priced are 50-75% discounted from 2-3 years ago. There are condos in all prices ranges in all areas. There are condos as little as $50K for 2 bedroom in good metro Orlando areas, but they do not come without strings attached.

Condo prices have dropped for a few reasons, supply of condos is plentiful with all the condo conversions, sales pace of condos slower than single family homes, change in mortgage underwriting, and new fannie mae guidelines for condos. Financing condos are difficult, not only does lender approve the borrower, but they approve the condo community. This is an additional review, not done with single family or townhomes communities.

Because of all the foreclosures occurring home owners have stopped paying on their condo fees. This has caused lack of funds for HOA to keep the communities maintained and HOA fees could go up. If there are too many deliquencies, too many renters, then a lender will not finance a borrower. If a borrower cannot get financing in a community, then prices plummet and purchasers have to pay cash in these condo communities.

So even if you find a community that is "financible", and find a cheapie condo in good condition, chances are it is bank owned with tons of offers. You will have to bid over asking price to get it, and if you are not cash buyer your offer probably will not get selected.

Many condo communities with pricing under $100k will be cash communities, or banks looking for only cash offer, especially if pricing under $50K or if multiple offers have been submitted.

Despite the draw backs in some of the HOA communities, many cash investors are crossing their fingers to make a return on their investment in the future. Many condo communities are in good locations making them marketable for renters, but investor need to know that rents are below normal rental value because of high volume of supply and this is expected through 2009.

Because of the cash investors buying all these cheapie condos, it is not surprising that condo sales have doubled in May. Please contact Buyers Broker of Florida for more information if you are in the market to purchase a condo.

USDA Financing in Central Florida

A buyer recently asked what areas of Central Florida would qualify for USDA Financing? So I asked a mortgage broker, Julie Brosseau. USDA Financing is available in "rural areas", so most areas in Metro Orlando will not qualify. Only select areas in Seminole County would be Chulota, parts of Geneva. In Orange County would be northern Apopka. For information, email Julie.

NAEBA Pushing for Disclosure

The National Association of Exclusive Buyers Agents is urging Congress to include real estate agency disclosure language in mortgage reform legislation, including the Anti-Predatory Lending Act currently under consideration.

"Too many consumers have no idea that when they contact an agent listing a home, that agent must do everything possible to achieve the best outcome for the seller," organization President John Sullivan says. "As a result, these consumers have no one involved from the beginning of the transaction who can advise them on negotiating techniques, price points or the acquisition of an appropriate loan."

While the states have attempted to better inform consumers through state disclosure laws, inconsistencies in these measures, as well as lack of compliance and enforcement, means home buyers are still confused, the organization said in a white paper.

Buyers Broker of Florida is 100% buyer agency office that always represents the best intests of the buyer. If you are in the market to purchase a home in Central Florida, check out their website at Orlando-BuyersAgent.com.

First Time Home Buyer Credit Revisited

A first-time home buyer tax credit of up to $8,000 has helped to move housing inventory during an otherwise sluggish real estate cycle. Now both legislators and the business community are hoping to build on the incentive's success by expanding it. A number of bills have been introduced in the House and the Senate that lobby for an expansion of the measure. Among the proposed changes:

• Setting a new cap of $15,000.
• Extending the tax break into mid-2010.
• Making the benefit available to all home buyers, not just first-timers.
• Offering a separate tax credit to $3,000 for borrowers who refinance.

Home prices in Orlando have never been better. For all the first time home buyers, should take advantage of the free $8000 the government is giving, while interest rates reamain at historical lows. To start your house hunting, contact Buyers Broker of Florida.