What Months are Best to Buy Orlando Real Estate?

November, December and January….trust me on that.

November starts the Holiday season, than the December Christmas Frenzy, followed by January when the guests have left, the spending and overeating is finished and now normal life is coming back into focus…

The last thing that is on anyone’s mind is buying a new home and that makes sellers nervous…it’s the end of the year, trading in the car looks good, the kids want Christmas presents, Tax expenses are calculated and the cost of holding a vacant house, or juggling two mortgages is now a bigger burden… particularly since homebuyers are scarce.

It is a great time to negotiate, it is a great time to negotiate, and it is a great time to negotiate…

Sellers will listen….new attitude and all.

ALSO, lets not forget the brand new homes sitting in the inventory that the New construction builders want to get “off the books” as a debt they are carrying. Excess inventory is costly and builders want to look their best for the year-end audits. Bargains there, too, if you bring your realtor with you.

So, if you want to house hunt while the listing price is really negotiable, call us.

Eve

Not All Title Companies Are The Same

We previously wrote an article why its important for a buyer to pay owners title insurance and select a competent title company. Sometimes, that becomes a problem in negotiations if the seller wants to control the title work, or listing agent or brokerage has an aflliated business arrangement or receives illegal kick backs from the title company.

As mentioned, seller title companies with bank foreclosures are some of the worst in service and competency. They have asked the buyer to sign very unusual documents, for instance, they wanted the buyers to sign a 3 page document stating the title company had limited liability when holding the escrow check or buyers money. So basically, if they lose the money they are not responsible.

Also, at a closing a buyer had to review and sign title company disclosures, indicating that the closing statement they are signing is not final as "not approved by seller". Typically, when buyer gets to closing table, signs documents, and provides their check means all parties have reviewed the closing statement with finalized charges.

And for the real shock, the title company presents illegible lien search documents and buyers had to sign a disclosure indicating that title company will NOT interpret the lien search. This should be interpreted by all title companies, buyer is not qualified to do this especially at the closing table.

So if a buyer uses the seller chosen title company, it may be a good idea to have an attorney review the title work process with checks and balances along the way in the event the title company does provide full service and conduct a through job. This extra cost would be valued added for such as large purchase.

Blah, Blah, Blah…

I showed a property last week where the Listing Agent had to meet us to open the door. I typically do not mind that, as sometimes the listing agent knows something about the house that is not readily visible.

This time the listing agent also wanted to “show” the house to the buyers, which I was OK with too. Then the agent spent the next 15 minutes trying to convince the buyers that this is the house for them and they needed to buy it…that was not cool.

“Showing a house” does not mean beating a buyer into submission. If the goal was to show the house in the most favorable light…it backfired.

You cannot “talk” buyers into wanting something that they do not really do not care for as that only creates pressure and the desire to run away. If they do not like it, that should be OK…falling in love cannot be forced…

For no pressure home buying and the opportunity to decide in peace,

call me…Eve 407-539-1053

Have Christmas Paid for by Lennar Homes

Typically the best time to buy new construction homes here in Orlando is at the end of the fiscal year. In effort, to clear their inventory and strengthen the final year enf finanicals, many builders offer fantastic pricing and incentives. For example, Lennar Homes fiscal year is ending on November 30, 2009 and offering $5000 gift card for every closing before November 30, 2009. So in turn you get a great home, tax credit, and Christmas gifts paid for, all because you timed it right to buy a home.

In Central Florida, new construction properties, such as single family homes are starting in low to mid $200,000's or $250,000+/-, depending on area and size of home needed. New construction townhomes are the more prevalent choice for builders with more choices in locations and starting $160,000's to $190,000's.

We sell more new construction properties during the last quarter of the year. Do not buy new construction without a buyers agent representing you from contract to closing, they know what to ask for, know builder contracts, best upgrades, and represent the buyers interests, not the builder. Despite what many buyers think, there is no cost to utilize buyer agent services and has no impact on the purchase price on a home if buyers are represented or not. If you are looking for new construction properties, please contact Buyers Broker of Florida.

October Market Statistics for Orlando Real Estate

Many positive things occuring in Orlando Real Estate with normalizing of the market occuring.  If you are thinking of buying a home and thinking prices are still dropping, think again, if you wait you will loose out. October 2009 Pending Sales up 54.72% from October 2008.  October 2009 most pending sales this year at 9,050.  October condo sales up 236.89% from October 2008. Median price of a home up $130,000 (4%) from $125,000 September 2009. And most of all our inventory of home is decreasing representing a 7.14 month supply (6 months is normal).  With tax credit extension available for both first time home buyers and current home owners.  It will be no time at all clearing out of inventory will occur.  However, it is predicated that another wave of short sales and bank owned properties will occur as a result of the unemployment rate, rather than bad loans.

Here is the market statistics produced by Orlando Regional Realtor Association for October 2009.

• Average Mortgage Rate: 5.02%
• Inventory:  15,743
• New Listing:  4,165
• New Contracts:  3,864
• Under Contract: 9,050
• Back on Market: 857
• Expired:  924
• Withdrawn:  646
• Sales Closed:  2,206
• Average Days on Market:  98

For historical months, please click here.

Move Up Buyers Gain; Tax Credit Available

Great news to all primary residence buyers, President Obama signed a bill that allows first time home buyers to get up to $8000 tax credit, and repeat buyers up to $6500 when they have a contract on a home before April 30, 2010. Orlando area have great buys to be purchased and interest rates still history low, if you are considering a purchase, it is a great time to buy!

First Time Home Buyers

• You may be eligible for 10% of the purchase price up to $8000.
• Contract has to be in place by April 30, 2010 with a closing before June 30, 2010
• Effective December 1, 2009 income limit will be raised to $125,000 for singles and $225,000 for married couple. Right now it is $75,000 for single and $150,000 for married couple.
• Effective now the maximum home value cannot exceed $800,000.
• First Time Home Buyers can use an interest free bridge loan to access the tax credit before they complete the home purchase. This money may be used toward downpayment or closing costs. The State Housing Initiatives Partnership Program (SHIP) is handling the distribution. For interested buyers, they should contact SHIP.

Repeat or Current Home Owners

• Now eligible for up to $6500 tax credit. Current home owner must have owned and used its current home for 5 consecutive years out of the last eight.
• Same time frame and deadlines for contract and maximum home value as first time home buyers.
• Long Time Florida Home Owners can take advantage of property tax portability.

Why Buyers Should Choose the Title Company

In the State of Florida, who ever pays for owners title policy can select the title company. Paying owners title policy is a negotiable item in the contract. In the Central Florida area it is customary for the seller to pay for owners title insurance and seller chooses. There are vary degrees of quality & competency of title companies from excellent to poor. If the seller chooses, buyer is not knowledgeable of quality of the title company or title insurance carrier. We find discount title companies affliated with REO properties or short sale facilitating companies are some of the worst. We believe if the buyer can negotiate to pay for their owner title policy and select a title company that is competent, through, detailed oriented, problem solving and have an A rated title insurance carrier, it is always in the buyers best interest. Here are some things a buyers should consider.

• Financial strength of the agency and underwriter is a major importance to the buyer. We have seen many REO affliated title companies use B, C rated underwriting companies. Legitimate business savy title companies will not comingle escrow money with the companies operating money, so if they go out of business your money is protected.
• The buyer will ultimately be the one to have to deal with the issue of a claim, not the seller. If someone makes a title claim it important to have a financial strong title insurance carrier. The seller no longer cares, they have the buyers money and have moved on.
• Willingness of the agency/underwriter to acknowledge responsibility for the error. We have had a title company not request estoppel letter on a property and title company took a guess, and cost the buyer thousands of dollars after closing. Requesting an estoppel letter is title work "101". And yes, the title company did not correct or acknowledge any wrong doing.
• Timely settling of the claim. When you have a problem, you want to make sure the title company and title insurance carrier representing all your best interests timely.
• Amount of Errors and Omissions insurance carried by both.
• The Buyer will not be able to sell the property until they have clear title. Problems with incorrect title work will be discovered when buyers are going to refinance or sell their home. Those would be the worst times to deal with correcting a title problems, as you jeopardize buyers for the home or best interest rates for refiance.
• It is buyer's lender who will be working closely with the title company to bring the transaction to closing. Buyers lender is a major component to get a buyer to closing and working with a good title company who will be proactive to ensure closing is done correctly and on time.

If a buyer cannot negotiate to pay for owners title insurance and select a competent title company we recommend the buyer hire an attorney to fully represent them through the process of title work or at least review the closing package. We are in a different real estate enviroment than years ago.