Home Buyers Do Not Delay

There is ONLY 3 more months for first time home buyers to get up to $8000 free money from the government if you purchase and close on your home by November 30, 2009. Buyers thinking of a purchase should not wait because competition for affordable properties is fierce. A buyer may have to put in multiple offers to get a property that is not a short sale or wait many months for a short sale to close. The time is NOW to start to start the home search. Buyers Broker of Florida can help you find a home.

• Tax credit applies for homes purchased from January 1, 2009 to November 30, 2009.
• 10% of purchase price up to $8000 for single resident or married couple filing jointly.
• US Citizens who are first time home buyers or home buyers that have not owned a home for preceding 3 years.
• There are income limits restrictions. Income has to be $75,000 or less for single filers and $150,000 or less for married couples filing jointly.
• The tax credit reduces the taxpayers tax bill or increases his or her refund, and will be paid out to eligible taxpayers, even if they owe no tax or the credit is more than the tax they owe.
• Repayment is not required.
• Tax credit is only available for purchase of principal residence, not vacation or rental property.

"Pretty" Does Not Make You Money

“Pretty” and “Bargain” do not go together. A bargain house will not be pretty… Pretty you pay extra for.

Recently I had a client looking for an investment property to rent out who wanted a “money-maker” but was not interested in anything that was not in move-in condition….yikes!

If you want to make money, you must look past the dirt for the “bones” of the property…the structure, the floor plan, the neighborhood and how much you can get for rent. The bargain of the year could be in a property with no curb appeal….how expensive is mulch and some flowers?

If the price is right and things can be changed, the dismal appearance is a golden opportunity and should not be a deal breaker….

If you need a seasoned expert to help you find the diamond in the ruff, call me.

Eve

Does a signed contract mean you can buy it? Don’t hold your breath…

Ok, true story…happened yesterday…

My buyer signed an offer to buy a short sale condo; seller signed it also, so we had a mutually accepted contract with just a contingency waiting for the bank to approve the price… …we waited, and waited, and patiently waited some more.

Weeks go by and I check with the listing agent every week…the “news” is always positive…they have done a preliminary approval, and are just waiting for the head bank official to sign off…well guess what?

I now find out (11 weeks later) that the bank re-possessed the property in a foreclosure, so now the bank owns it and will be putting it on the market as a Bank-Owned REO.
Can they do that? Sure, stranger things have happened.

Sometimes while the buyer is waiting, the seller could file bankruptcy, which changes your deal. Or the seller could simple move and not leave a forwarding address.

You can’t buy a house if the seller disappears.

Moral of the story: Don’t count on anything until closing and you have the keys.

Latest Activity Orlando Real Estate

• The market is nearly balanced between buyers and sellers, with an 8.37-month of inventory supply. Housing economists consider a six-month supply to be indicative of a balanced market.
• The inventory level’s 8.37-month supply is a 61.14 percent decline since January 2009 and is the lowest since July 2006.
• Inventory decreased by 1,292 homes from May 2009, and is 27.44 percent lower than it was in June 2008 (24,575).
• Sales are up 43.12 percent over June 2008.
• Bank-owned and distressed sales accounted for 45.99 percent of home sales in June.
  The median price for all homes is up by 0.92 percent compared to last month, but down 39.26 compared to June of last year.
• The overall median price is skewed down by the large number of discounted distressed and bank-owned sales. The median price of “normal” sales is $172,500, up 4.55 percent from last month’s $165,000.
• A record 3,686 homes came under contract in June. There are 7,230 homes currently awaiting closing, more than double the number awaiting closing in June 2008 (3,329).
  Affordability is down for the month (due to increase in the average interest rate and an increase in the median price), but at 183.66 is still very high. There are 9,318 homes in Orange and Seminole counties listed in the mls for $238,757 or less.
• Homes of all types spent an average of 104 days on the market before being sold in June 2009. In June 2008 the days on market tally was 121.
• The sales of condos in the Orlando area increased by 189.71 percent in June when compared to June of last year, and increased by 4.23 percent when compared to last month.

This information is published by Orlando Regional Realtor Association

Short Sale vs. Bank Owned Properties

Two very different situations, each with their own set of problems:

Short sale: Property is currently not worth the amount of all the loans the owner has against the property therefore it is being sold for less than owed and the bank has to say “OK”…sometime there is more than one loan with different banks and they all have to approve taking less money.

Problem: is that it will take the bank months to respond, they could respond with refusing to pay your closing costs or come back with an unfavorable counter offer at a higher purchase price, or they may never respond at all…ever. While you wait, the property could be taken back in a foreclosure or the seller could file bankruptcy and you will just be out of luck.

Bank Owned: The bank has already re-possessed the property from the former owner in a foreclosure proceeding, so the bank now owns the property and is selling it. Every buyer prefers this scenario because you will probably get a response within days and there is no question about what it will cost or when you can move in.

Problem: Since buyers prefer a “bank-owned purchase” to “short sales” there are usually multiple offers within days from bidders who are willing to pay over full price in exchange for peace of mind. Bidders who wish to bid must be quick and aggressive to get the property.

2 Brand New Homes at Bargain Pricing Good until 7/15/09

A local builder is closing out the community with the last 2 brand new energy efficient homes available at fantastic pricing in the Lake Nona/Moss Park area. Live in southeast Orlando the fastest growing area, and home to the new Medical City, with Orlando International Airport 10 minutes away.

• 4 Bedroom 2 Bath with 2 car garage with 2,645 sq. ft. priced at $221,920 expected completion November 2009. Spacious Kitchen with island, overlooking dining room and large family room, separate living room, and game room. Big master bedroom suite. Energy Star Certified Home.
• 4 Bedroom 2.5 Baths with 2 car garage with 2,892 sq. ft. priced at $224,820 expected completion November 2009. 2 Story home with 20X16 Family Room with separate Living/Dining Room combo. Large kitchen with island and breakfast nook. Game Room upstairs. Energy Star Certified Home.

Whats Included?

• Double Pane Low E Windows
• 14 Seer AC Units
• Core Filled foam Walls
• R-38 Insulation
• 42" Maple Cabinets
• All Stainless Steel Appliances
• Front Load Washer and Dryer
• Blinds
• $8000 toward buyers closing costs
• Builders Warranty

This offer is good until 7/15/09. To take advantage or for more information, please contact Buyers Broker of Florida.

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.