From The New York Times
Federal regulators have decided to revise a key disclosure form required by lenders – the good faith estimate of mortgage costs.
The change could help borrowers get a better handle on closing costs while simplifying mortgage shopping. The challenge that remains for borrowers is to protect themselves in the 14 months before the new documents come out.
HUD unveiled the new, simpler good faith estimate format in Nov 2008. HUD also established limits on certain loan charges: the processing fees collected by the loan officer from the lender, third-party fees for appraisers/services, and escrow charges for taxes and insurance.
Dec 23, 2008
Dec 18, 2008
Secure at Home When You’re Not
From The New York Times
With the holidays fast approaching, thoughts of family getaways are on the minds of many homeowners - but getaways can be less enjoyable if homeowners are worried about things being safe back home.
Protecting an empty home is a priority for many and with so much reliance these days on video surveillance cameras and alarm systems that alert the police to a break-in, sometimes it’s just as important for people to slow down between the planning and the packing and to remember what they can do themselves to secure their home the old-fashioned way.
With the holidays fast approaching, thoughts of family getaways are on the minds of many homeowners - but getaways can be less enjoyable if homeowners are worried about things being safe back home.
Protecting an empty home is a priority for many and with so much reliance these days on video surveillance cameras and alarm systems that alert the police to a break-in, sometimes it’s just as important for people to slow down between the planning and the packing and to remember what they can do themselves to secure their home the old-fashioned way.
Dec 15, 2008
A Glut Of Abandoned Homes
According to the Orlando Sentinel, cities already strapped for cash face a new burden: keeping homes in foreclosure from dragging down property values of neighboring homes.
Tall grass at these abandoned homes is creating eyesores and attracting bugs and snakes. Though some HOAs are cutting the grass, cities have begun sending their own workers out with lawn mowers.
Dec 11, 2008
Small & Affordable Ways To Invest In Your Home
There are many small and affordable ways to invest in your home today. These projects are small investments of time and money you can make in your home - one project at a time. Not only will you enjoy these improvements, but they will also be strong selling features if and when you decide to sell your home.
These improvements are in demand by buyers today:
- Storage
- Ceiling Fans
- Light Fixtures
- Window Coverings
- Appliances
- Paint
- Faucets
- Hardware
These improvements are in demand by buyers today:
- Storage
- Ceiling Fans
- Light Fixtures
- Window Coverings
- Appliances
- Paint
- Faucets
- Hardware
Dec 9, 2008
1031 Exchange
Property owners considering “selling” their investment property may want to consider “trading” it in a 1031 exchange.
What Is It? In a 1031 exchange, a property owner “trades” a relinquished property for a “like-kind” replacement property while deferring the payment of federal income tax and some state tax on the transaction.
A 1031 exchange is tax-deferred - not tax-free. When a replacement property is ultimately sold (not as part of another exchange), the original deferred gain plus any additional gain realized since the purchase of a replacement property is subject to tax.
Like-Kind Property All real property is considered “like-kind” with other real property of the same nature and quality. Both a relinquished and a replacement property in a 1031 exchange must be held for investment purposes or for productive use in a business. A primary residence, second home or vacation home does not qualify for a 1031 exchange.
Some examples of qualified like-kind real property include:
- rental property
- office suite
- retail space
- vacant land
Benefits Some of the benefits of a 1031 exchange include:
- Postpone or potentially eliminate tax due on any gain in the sale of qualifying investment property.
- Acquire and dispose of property to reallocate your investment portfolio without paying tax on any gain.
- More money available to invest in another investment property. In effect, you receive an interest-free loan from the federal government in the amount you would have paid in tax on any gain.
Qualified Intermediary A Qualified Intermediary (QI) - an independent party who facilitates the exchange - is required to transact a 1031 exchange. The exchange ends the moment the taxpayer has actual or constructive receipt of sale proceeds of a relinquished property. The QI holds all sale proceeds until funds are needed to acquire a replacement property. The QI then delivers the funds directly to the closing agent.
What Is It? In a 1031 exchange, a property owner “trades” a relinquished property for a “like-kind” replacement property while deferring the payment of federal income tax and some state tax on the transaction.
A 1031 exchange is tax-deferred - not tax-free. When a replacement property is ultimately sold (not as part of another exchange), the original deferred gain plus any additional gain realized since the purchase of a replacement property is subject to tax.
Like-Kind Property All real property is considered “like-kind” with other real property of the same nature and quality. Both a relinquished and a replacement property in a 1031 exchange must be held for investment purposes or for productive use in a business. A primary residence, second home or vacation home does not qualify for a 1031 exchange.
Some examples of qualified like-kind real property include:
- rental property
- office suite
- retail space
- vacant land
Benefits Some of the benefits of a 1031 exchange include:
- Postpone or potentially eliminate tax due on any gain in the sale of qualifying investment property.
- Acquire and dispose of property to reallocate your investment portfolio without paying tax on any gain.
- More money available to invest in another investment property. In effect, you receive an interest-free loan from the federal government in the amount you would have paid in tax on any gain.
Qualified Intermediary A Qualified Intermediary (QI) - an independent party who facilitates the exchange - is required to transact a 1031 exchange. The exchange ends the moment the taxpayer has actual or constructive receipt of sale proceeds of a relinquished property. The QI holds all sale proceeds until funds are needed to acquire a replacement property. The QI then delivers the funds directly to the closing agent.
Dec 5, 2008
All About Co-Ownership
When two or more people own an interest in property, they are considered concurrent owners. The amount of control a co-owner has in their property is affected by how they hold ownership to the property. Varying forms of ownership dictate whether or not a co-owner can give their property away or how a co-owner’s interest passes to their estate or heirs upon their death.
The three forms of co-ownership are:
Tenancy In Common This form of ownership is the most commonly used form of co-ownership behind husband-and-wife ownership. Any number of people may own property together as tenants in common. Tenants in common may have acquired title at the same time or different times. Tenants in common may hold different percentages of ownership in the property. Each owner has an undivided interest in the property (an interest in the entire property, not just one particular party of the property). A tenant in common’s interest may be transferred or inherited, in which case the heir becomes a new tenant in common with the other co-owners.
Joint Tenancy This form of ownership is characterized by the right of survivorship. Joint tenants acquire title at the same time. Joint tenants hold an equal percentage of ownership in the property. Joint tenants have an undivided interest in the property (an interest in the entire property, not just one particular party of the property). When one co-owner dies, their share of the property goes to the surviving co-owner – not the heirs of the deceased.
The three forms of co-ownership are:
Tenancy In Common This form of ownership is the most commonly used form of co-ownership behind husband-and-wife ownership. Any number of people may own property together as tenants in common. Tenants in common may have acquired title at the same time or different times. Tenants in common may hold different percentages of ownership in the property. Each owner has an undivided interest in the property (an interest in the entire property, not just one particular party of the property). A tenant in common’s interest may be transferred or inherited, in which case the heir becomes a new tenant in common with the other co-owners.
Joint Tenancy This form of ownership is characterized by the right of survivorship. Joint tenants acquire title at the same time. Joint tenants hold an equal percentage of ownership in the property. Joint tenants have an undivided interest in the property (an interest in the entire property, not just one particular party of the property). When one co-owner dies, their share of the property goes to the surviving co-owner – not the heirs of the deceased.
Tenancy By The Entireties This form of ownership is basically a joint tenancy between husband and wife. When one spouse dies, their interest automatically transfers to the surviving spouse. Neither spouse can will any portion of their interest; however, this form of ownership can be divided by annulment or divorce.
Dec 2, 2008
The Realtor Difference: Time, Energy, Effort
Your time is valuable. Selling a home takes an extraordinary amount of time, energy and effort. A majority of homeowners cannot give the necessary time, energy and effort needed to sell their own home for maximum dollars in minimum time with minimum hassle. This is another key area where the value of a realtor is keenly apparent. It is a realtor’s job to spend their time, energy and effort to actively market your home and seek a buyer who is ready, willing and able to buy your home. A realtor is uniquely motivated to get your home sold because a realtor only gets paid at the closing table.
Nov 28, 2008
Why Strong MLS Photos Are Critical
Photos of your home in MLS are often your first and only chance to make a good impression and to pique a buyer’s interest enough for them to request a showing of your home. After price and location, the average buyer will select homes for viewing based on presentation and image in MLS photos.
Even today, I routinely see the poorest of poor photos of homes in MLS. I shake my head at the laughable, embarrassingly bad photos of homes and wonder why any homeowner would accept this. Are they aware what a poor first impression their home is giving out? Are they wondering why they’ve received so few showings? Are they questioning why their home has been on the market for eight months?
Every quick, top dollar home sale starts with strong, effective MLS photos. You’ve heard “image is everything” and in real estate, it is. Poor, unflattering or non-existent photos are a sure path to minimal showings, lengthy time on market and a drawn out sale.
Quality Every one of your MLS photos must showcase your home to its fullest and provide strong visual appeal to a buyer. Strong photos cut through the avalanche of available homes to connect with a buyer in capturing their attention and interest. This is your first tool you have against your competition. This could make the difference in a buyer viewing your home this weekend versus the 13 other homes on the market in your neighborhood.
The time of year, the time of the day and the weather all affect the image of your home in MLS photos. Photos taken during a summer dry spell show your home with brown, crispy grass and landscaping. Photos taken at the height of daylight (12pm) cast a severe, dark shadow over your home. Photos taken on an overcast day show your home as lifeless and dull. Ask your agent to take updated or improved photos if need be.
Quantity Orlando MLS allows a maximum of ten photos. Even today, I routinely see homes with just a couple photos - and far too many homes with only one photo. This is doing a disservice to the homeowner and a potential buyer. Insist that your agent post the maximum number of MLS photos allowed.
Even today, I routinely see the poorest of poor photos of homes in MLS. I shake my head at the laughable, embarrassingly bad photos of homes and wonder why any homeowner would accept this. Are they aware what a poor first impression their home is giving out? Are they wondering why they’ve received so few showings? Are they questioning why their home has been on the market for eight months?
Every quick, top dollar home sale starts with strong, effective MLS photos. You’ve heard “image is everything” and in real estate, it is. Poor, unflattering or non-existent photos are a sure path to minimal showings, lengthy time on market and a drawn out sale.
Quality Every one of your MLS photos must showcase your home to its fullest and provide strong visual appeal to a buyer. Strong photos cut through the avalanche of available homes to connect with a buyer in capturing their attention and interest. This is your first tool you have against your competition. This could make the difference in a buyer viewing your home this weekend versus the 13 other homes on the market in your neighborhood.
The time of year, the time of the day and the weather all affect the image of your home in MLS photos. Photos taken during a summer dry spell show your home with brown, crispy grass and landscaping. Photos taken at the height of daylight (12pm) cast a severe, dark shadow over your home. Photos taken on an overcast day show your home as lifeless and dull. Ask your agent to take updated or improved photos if need be.
Quantity Orlando MLS allows a maximum of ten photos. Even today, I routinely see homes with just a couple photos - and far too many homes with only one photo. This is doing a disservice to the homeowner and a potential buyer. Insist that your agent post the maximum number of MLS photos allowed.
Nov 25, 2008
What Are Doc Stamps?
Doc stamps are excise taxes imposed by Florida law on the transfer of ownership or interest in a real estate transaction. Doc stamps are one of the most expensive closing cost items for both a buyer and a seller. Doc stamps are paid one time at the time of closing and can be seen on lines 1200 to 1206 of the closing statement (also known as “the HUD”).
The rates for doc stamps are as follows:
- Deed $0.70 per $100 of purchase price; customarily paid by seller
- Mortgage $0.35 per $100 of mortgage; customarily paid by buyer
- Intangible Tax $0.002 per $1 of mortgage; customarily paid by buyer
Example: $400,000 purchase price; $300,000 mortgage
- Deed $400,000 / $100 = 4,000 taxable increments x $0.70 = $2,800 customarily paid by seller
- Mortgage $300,000 / $100 = 3,000 taxable increments x $.035 = $1,050 customarily paid by buyer
- Intangible Tax $300,000 x $0.002 = $600 customarily paid by buyer
The rates for doc stamps are as follows:
- Deed $0.70 per $100 of purchase price; customarily paid by seller
- Mortgage $0.35 per $100 of mortgage; customarily paid by buyer
- Intangible Tax $0.002 per $1 of mortgage; customarily paid by buyer
Example: $400,000 purchase price; $300,000 mortgage
- Deed $400,000 / $100 = 4,000 taxable increments x $0.70 = $2,800 customarily paid by seller
- Mortgage $300,000 / $100 = 3,000 taxable increments x $.035 = $1,050 customarily paid by buyer
- Intangible Tax $300,000 x $0.002 = $600 customarily paid by buyer
Nov 21, 2008
They Want Our Chandelier, Too?
A showing wrapped up at your home today at noon. By early evening, you hear word from your agent that the buyer is very interested in your home and is planning a second showing with their agent for this weekend.
As the seller, you have informed your agent that your $6,000 chandelier in the foyer “does not convey” (is not included in the sale of the home). This is disclosed in the home’s MLS listing for any potential buyer and their agent to see.
The second showing is a hit and by late Mon morning, you have an offer in hand. The terms of the offer are right in line with your expectations and you intend to accept as is – but wait, the buyer wants your $6,000 chandelier in the foyer - the chandelier you planned to move to your new home. Now what?
Sellers, be prepared. In the buyer’s market we have today in east metro Orlando, buyers are commonly asking for – and getting - anything they desire from furniture and fixtures to closing costs and HOA dues.
Sellers, keep in mind the definition of a fixture versus personal property when it comes to the sale of your home:
Fixture A fixture is an object that is permanently attached to a home. Some examples include a bathtub, fence, fireplace and French doors – these items cannot be easily removed from a home without causing damage.
Personal Property Personal property is an object that is not permanently attached to a home. Some examples include a chandelier, artwork, furniture and window coverings – these items can be easily removed from a home and packed away.
In the case of the $6,000 chandelier that the seller intended to move to their new home, the best practice would have been to remove it and replace it with a nice, but not expensive alternative before putting the home on the market. That way, no buyer would have ever laid eyes on the $6,000 chandelier and therefore, would never have the opportunity to stake a claim for it…in other words, don’t let a buyer fall in love with something they can’t have.
As the seller, you have informed your agent that your $6,000 chandelier in the foyer “does not convey” (is not included in the sale of the home). This is disclosed in the home’s MLS listing for any potential buyer and their agent to see.
The second showing is a hit and by late Mon morning, you have an offer in hand. The terms of the offer are right in line with your expectations and you intend to accept as is – but wait, the buyer wants your $6,000 chandelier in the foyer - the chandelier you planned to move to your new home. Now what?
Sellers, be prepared. In the buyer’s market we have today in east metro Orlando, buyers are commonly asking for – and getting - anything they desire from furniture and fixtures to closing costs and HOA dues.
Sellers, keep in mind the definition of a fixture versus personal property when it comes to the sale of your home:
Fixture A fixture is an object that is permanently attached to a home. Some examples include a bathtub, fence, fireplace and French doors – these items cannot be easily removed from a home without causing damage.
Personal Property Personal property is an object that is not permanently attached to a home. Some examples include a chandelier, artwork, furniture and window coverings – these items can be easily removed from a home and packed away.
In the case of the $6,000 chandelier that the seller intended to move to their new home, the best practice would have been to remove it and replace it with a nice, but not expensive alternative before putting the home on the market. That way, no buyer would have ever laid eyes on the $6,000 chandelier and therefore, would never have the opportunity to stake a claim for it…in other words, don’t let a buyer fall in love with something they can’t have.
Nov 18, 2008
Have You Overimproved Your Home?
Just a few years ago, home improvements were considered strong, sound investments. A $50,000 kitchen remodel could easily add $75,000 to the value of a home. However, in the challenging real estate market we are experiencing today, this is no longer the case.
For a homeowner who needs or wants to sell in the near-term with recent major home improvements in place, it is possible for them to find that they have actually overimproved their home and may be unable to recoup their costs in the sale of their home.
Materials & Finishes Luxury, top-of-the-line materials and finishes used in home improvement projects during the past few years were in high demand by buyers who were willing and able to pay the price. This is no longer the case as more buyers select homes with quality, but not over-the-top materials and finishes.
Additions Home improvements that are inconsistent with other homes in the neighborhood are considered an overimprovement. For example, the addition of a $50,000 swimming pool to a $300,000 home in a neighborhood of $300,000 homes would be considered an overimprovement.
Home improvements that are relative to other homes in the neighborhood are still considered safe, but be watchful of overimproving your home beyond the general value of your neighborhood such as adding a third bath if all other homes have two baths.
Appreciation Being the most expensive house on the block is considered an overimprovement. For example, the owner of a $400,000 home in a neighborhood of $250,000 homes will see the value of their home hindered by the more affordable homes. The $400,000 home in the $250,000 neighborhood will appreciate at the same 5% per year like every other home in the neighborhood though a nearby $400,000 neighborhood may be appreciating at 8% per year.
For a homeowner who needs or wants to sell in the near-term with recent major home improvements in place, it is possible for them to find that they have actually overimproved their home and may be unable to recoup their costs in the sale of their home.
Materials & Finishes Luxury, top-of-the-line materials and finishes used in home improvement projects during the past few years were in high demand by buyers who were willing and able to pay the price. This is no longer the case as more buyers select homes with quality, but not over-the-top materials and finishes.
Additions Home improvements that are inconsistent with other homes in the neighborhood are considered an overimprovement. For example, the addition of a $50,000 swimming pool to a $300,000 home in a neighborhood of $300,000 homes would be considered an overimprovement.
Home improvements that are relative to other homes in the neighborhood are still considered safe, but be watchful of overimproving your home beyond the general value of your neighborhood such as adding a third bath if all other homes have two baths.
Appreciation Being the most expensive house on the block is considered an overimprovement. For example, the owner of a $400,000 home in a neighborhood of $250,000 homes will see the value of their home hindered by the more affordable homes. The $400,000 home in the $250,000 neighborhood will appreciate at the same 5% per year like every other home in the neighborhood though a nearby $400,000 neighborhood may be appreciating at 8% per year.
Nov 11, 2008
All About Deeds
With a sharp increase in short sale, foreclosure and bank-owned property sales today, the transfer of title (ownership) in real estate from seller to buyer is less likely to be conveyed through the traditional Warranty deed and more likely to be conveyed through one of three other types of statutory deeds.
In the transfer of ownership from seller to buyer, there are varying levels of protection among the four types of statutory deeds. Starting with the deed that offers the most covenants and warranties and ending with the deed that offers the fewest covenants and warranties, the four types of statutory deeds are:
Warranty The seller forever covenants and warrants the title and provides every possible future guarantee to protect the buyer’s title. With a warranty deed, the seller is the rightful owner and has the right to transfer title; there are no outstanding claims on the property from lenders or other creditors using the property as collateral; and the property cannot be claimed by another party. This type of deed is commonly used in a traditional arms-length transaction between Joe Seller and Joe Buyer.
Bargain & Sale The seller does not covenant or warrant to defend the title against any future claim or attack. This type of deed is sufficient to convey all the title the seller has, but does little to protect the buyer from clouds or claims on the title. This type of deed is commonly used by court officials for property that has been seized from the property owner and held by force of law by the authorities.
Special Warranty The seller does not covenant or warrant the title in any manner except against acts by the seller or the seller’s rep. The seller guarantees that nothing has been done to encumber or cloud the title during their ownership. This type of deed is commonly used by major corporations in the sale of property.
Quitclaim The seller makes no covenants or warranties about the quality or extent of the title being conveyed. The seller does not warrant to defend the title or to transfer a valid interest. The buyer has no legal recourse if title problems surface at a later date or if a forgotten lien holder emerges from the woodwork. This type of deed is commonly used when a property owner dies and bequeaths their property to someone; when a property owner gets married/divorced and adds/removes the spouse's name to/from the title; or when property is transferred to a living trust.
In the transfer of ownership from seller to buyer, there are varying levels of protection among the four types of statutory deeds. Starting with the deed that offers the most covenants and warranties and ending with the deed that offers the fewest covenants and warranties, the four types of statutory deeds are:
Warranty The seller forever covenants and warrants the title and provides every possible future guarantee to protect the buyer’s title. With a warranty deed, the seller is the rightful owner and has the right to transfer title; there are no outstanding claims on the property from lenders or other creditors using the property as collateral; and the property cannot be claimed by another party. This type of deed is commonly used in a traditional arms-length transaction between Joe Seller and Joe Buyer.
Bargain & Sale The seller does not covenant or warrant to defend the title against any future claim or attack. This type of deed is sufficient to convey all the title the seller has, but does little to protect the buyer from clouds or claims on the title. This type of deed is commonly used by court officials for property that has been seized from the property owner and held by force of law by the authorities.
Special Warranty The seller does not covenant or warrant the title in any manner except against acts by the seller or the seller’s rep. The seller guarantees that nothing has been done to encumber or cloud the title during their ownership. This type of deed is commonly used by major corporations in the sale of property.
Quitclaim The seller makes no covenants or warranties about the quality or extent of the title being conveyed. The seller does not warrant to defend the title or to transfer a valid interest. The buyer has no legal recourse if title problems surface at a later date or if a forgotten lien holder emerges from the woodwork. This type of deed is commonly used when a property owner dies and bequeaths their property to someone; when a property owner gets married/divorced and adds/removes the spouse's name to/from the title; or when property is transferred to a living trust.
Nov 7, 2008
Get Organized For Your Next Move
Your next move is an opportunity to purge and clean house of clutter and unwanted belongings - you don’t have to take everything with you in your next move! As a first step to planning a smooth move, here are some ideas to help you make your move much more efficient and a little less overwhelming.
Recycle Newspaper, magazines, catalogs, junk mail, plastic containers, glass containers and aluminum cans can be recycled through weekly curbside pick up at your home by Orange or Seminole county services.
Donate Goodwill and Salvation Army are not your only options for your donations. Consider donating to your local pet shelter, school, church or veteran’s group.
Give Away Give away your goods to family, friends, co-workers and neighbors; you never know what they may need or have an interest in. Just ask that they pick up the goods immediately.
Sell For unwanted belongings that have still have value, consider selling them. You get rid of an item you don’t want anymore and recoup a little cash along the way.
Craigslist is ideal for selling large, unshippable items such as furniture, cars and yard/garden tools. Amazon is ideal for shippable media items such as books, CDs, DVDs and video games. Ebay is ideal for smaller, shippable items such as clothing, shoes, handbags, jewelry, art, antiques and home décor. A garage sale is ideal for a quick, one day liquidation of your unwanted (but not junk) belongings.
Throw Away If you’re unable to recycle, donate, give away or sell your unwanted belongings, do yourself a favor – throw them away immediately. Don’t think twice about it, just let it go.
Recycle Newspaper, magazines, catalogs, junk mail, plastic containers, glass containers and aluminum cans can be recycled through weekly curbside pick up at your home by Orange or Seminole county services.
Donate Goodwill and Salvation Army are not your only options for your donations. Consider donating to your local pet shelter, school, church or veteran’s group.
Give Away Give away your goods to family, friends, co-workers and neighbors; you never know what they may need or have an interest in. Just ask that they pick up the goods immediately.
Sell For unwanted belongings that have still have value, consider selling them. You get rid of an item you don’t want anymore and recoup a little cash along the way.
Craigslist is ideal for selling large, unshippable items such as furniture, cars and yard/garden tools. Amazon is ideal for shippable media items such as books, CDs, DVDs and video games. Ebay is ideal for smaller, shippable items such as clothing, shoes, handbags, jewelry, art, antiques and home décor. A garage sale is ideal for a quick, one day liquidation of your unwanted (but not junk) belongings.
Throw Away If you’re unable to recycle, donate, give away or sell your unwanted belongings, do yourself a favor – throw them away immediately. Don’t think twice about it, just let it go.
Nov 5, 2008
The Realtor Difference: Experience With Buyers
A realtor has skill and hands-on experience working with qualified buyers. A realtor has the most experience in objectively conversing with buyers to address their questions, objections, needs, wants and desires. A realtor can guide a “maybe” buyer to a “yes” buyer by guiding them through the purchase decision process. This may include educating the buyer on the home buying process from A to Z; providing the buyer a Comparative Market Analysis of similar homes; advising the buyer on price and terms to create their strongest and most competitive offer; and referrals to quality lenders and home inspection/repair professionals.
Oct 31, 2008
St Joseph Statue
A 4” ceramic statue of St Joseph was buried upside down in the front yard of a home that had been on the market for eight months without a single offer. A week later, the seller received the full price offer she had been hoping for. Do you consider this just coincidence or did St Joseph have something to do with it?
Interest in St Joseph has been reignited as homeowners look for anything to help them sell their homes - including saintly intervention by an age-old tradition.
Considered the patron saint of home, family and house hunting, St Joseph is believed to help sell the homes of those who ask for his help. According to Catholic lore, burying St Joseph in the yard of a home for sale promises a prompt offer.
The actual technique of burying St Joseph varies greatly: bury him upside down facing the home; bury him facing away from the home; bury him under 12” of dirt; bury him under the for sale sign; bury him close to the back property line; or bury him facing the heavens.
Interest in St Joseph has been reignited as homeowners look for anything to help them sell their homes - including saintly intervention by an age-old tradition.
Considered the patron saint of home, family and house hunting, St Joseph is believed to help sell the homes of those who ask for his help. According to Catholic lore, burying St Joseph in the yard of a home for sale promises a prompt offer.
The actual technique of burying St Joseph varies greatly: bury him upside down facing the home; bury him facing away from the home; bury him under 12” of dirt; bury him under the for sale sign; bury him close to the back property line; or bury him facing the heavens.
Oct 27, 2008
Knock $4,000 Off Your Utility Bill
In an article from CNNMoney.com, here are six ways to invest $1,500 in home maintenance projects that will provide you over twice that amount in energy savings the first year.
Oct 22, 2008
How Short Sales & Foreclosures Can’t Compete
With short sale / foreclosure homes clogging the market in east metro Orlando, communities continue to be challenged by the damaging affects of these often neglected, unappealing homes and the related decline in home values for the rest of the community.
The oversupply of neglected homes on the market creates a unique opportunity for straight sellers. A straight seller has equity in their home and is selling by choice (not motivated by a short sale / foreclosure). This means for straight sellers of owner-occupied homes, now is an ideal time for your home to outshine and outsell the competition.
A straight seller cannot compete with cut-to-the-bone short sales / foreclosures when it comes to price. However, a straight seller has no competition from short sales / foreclosures when it comes to property condition. Behind price, the condition of a home is the second most critical factor in a buyer’s purchase decision. Property condition is commonly the make or break deciding factor for a buyer in choosing your home over the competition.
For a straight seller of an owner-occupied home that is well maintained, cared for and lived in, a short sale / foreclosure simply is no competition.
Once the average buyer steps foot inside a short sale / foreclosure home, their interest level quickly diminishes. Buyers who claim “I want to buy a foreclosure” really are saying “I want to buy at rock bottom”. If a buyer truly wants a rock bottom price, a short sale / foreclosure is the way to go. However, the average buyer cannot comprehend the unbelievable property conditions common to most short sales / foreclosures until looking at a few of these homes with their own eyes.
Short sales / foreclosures may offer rock bottom prices, but 95% of the time, come at the cost of poor property conditions – a complete lack of basic home maintenance inside and out, intentional property damage, homes stripped of anything of value and homes full of abandoned personal belongings. Far from move in ready, the average buyer is not prepared to buy a short sale / foreclosure.
The oversupply of neglected homes on the market creates a unique opportunity for straight sellers. A straight seller has equity in their home and is selling by choice (not motivated by a short sale / foreclosure). This means for straight sellers of owner-occupied homes, now is an ideal time for your home to outshine and outsell the competition.
A straight seller cannot compete with cut-to-the-bone short sales / foreclosures when it comes to price. However, a straight seller has no competition from short sales / foreclosures when it comes to property condition. Behind price, the condition of a home is the second most critical factor in a buyer’s purchase decision. Property condition is commonly the make or break deciding factor for a buyer in choosing your home over the competition.
For a straight seller of an owner-occupied home that is well maintained, cared for and lived in, a short sale / foreclosure simply is no competition.
Once the average buyer steps foot inside a short sale / foreclosure home, their interest level quickly diminishes. Buyers who claim “I want to buy a foreclosure” really are saying “I want to buy at rock bottom”. If a buyer truly wants a rock bottom price, a short sale / foreclosure is the way to go. However, the average buyer cannot comprehend the unbelievable property conditions common to most short sales / foreclosures until looking at a few of these homes with their own eyes.
Short sales / foreclosures may offer rock bottom prices, but 95% of the time, come at the cost of poor property conditions – a complete lack of basic home maintenance inside and out, intentional property damage, homes stripped of anything of value and homes full of abandoned personal belongings. Far from move in ready, the average buyer is not prepared to buy a short sale / foreclosure.
Oct 17, 2008
All About Liens
Various types of liens - monetary claims against a property to secure an obligation or debt of a property owner - can be placed on property. A lien is an encumbrance on the title to a property and can affect a property owner’s ability to sell.
The most well known example of a voluntary lien placed on a property by its owner is a mortgage. The most well known examples of an involuntary lien placed on a property by another party include a property tax lien and an income tax lien – both from parties with valid monetary claims against the property owner.
In some cases, an unsatisfied lien can force the sale of a property in order to satisfy the lien. This is commonly seen today with lenders foreclosing on property owners who have defaulted on their mortgage.
Mortgage A voluntary lien placed on a property by its owner as collateral on a home loan with a lender. This could be a first mortgage, second mortgage or line of credit. If the borrower defaults, the lender can force the sale of the property to satisfy the debt.
Property Tax A lien placed on property by municipal governments for unpaid property tax. Property tax becomes a lien on the property as soon as it is assessed. A property tax lien is superior to all other liens.
Special Assessment A lien placed on property by municipal governments for an unpaid special assessment, a public improvement that improves the property such as new curbs or sidewalks. A special assessment becomes a lien on the property as soon as it is assessed. A special assessment lien is second only to a property tax lien.
Construction A lien placed on property for unpaid material or labor that added value to a property (unjust enrichment). Also known as a “mechanic’s lien”.
Judgment A lien attaching to property when a judgment is obtained against a property owner. The lien is against all property of the debtor in the county where the judgment is recorded.
Income Tax A lien on all property owned by the taxpayer at the time of filing including all future property acquired until the lien is satisfied.
Estate Tax A lien against the deceased’s taxable assets upon death. Also known as “death tax”.
The most well known example of a voluntary lien placed on a property by its owner is a mortgage. The most well known examples of an involuntary lien placed on a property by another party include a property tax lien and an income tax lien – both from parties with valid monetary claims against the property owner.
In some cases, an unsatisfied lien can force the sale of a property in order to satisfy the lien. This is commonly seen today with lenders foreclosing on property owners who have defaulted on their mortgage.
Mortgage A voluntary lien placed on a property by its owner as collateral on a home loan with a lender. This could be a first mortgage, second mortgage or line of credit. If the borrower defaults, the lender can force the sale of the property to satisfy the debt.
Property Tax A lien placed on property by municipal governments for unpaid property tax. Property tax becomes a lien on the property as soon as it is assessed. A property tax lien is superior to all other liens.
Special Assessment A lien placed on property by municipal governments for an unpaid special assessment, a public improvement that improves the property such as new curbs or sidewalks. A special assessment becomes a lien on the property as soon as it is assessed. A special assessment lien is second only to a property tax lien.
Construction A lien placed on property for unpaid material or labor that added value to a property (unjust enrichment). Also known as a “mechanic’s lien”.
Judgment A lien attaching to property when a judgment is obtained against a property owner. The lien is against all property of the debtor in the county where the judgment is recorded.
Income Tax A lien on all property owned by the taxpayer at the time of filing including all future property acquired until the lien is satisfied.
Estate Tax A lien against the deceased’s taxable assets upon death. Also known as “death tax”.
Oct 14, 2008
Why Use A Lockbox
Today more then ever, it is critical for a seller to accommodate every showing request no matter the date, time or circumstance. To assist in this, the use of a lockbox - a small, hollow metal box that holds home keys and is securely attached to the front doorknob - is a great tool for a seller while their home is on the market.
By using a lockbox, there is no need for a seller to be home, for the listing agent to attend or for the buyer’s agent to pick up a key at the office. The home key is already located in a secure location at the home for the buyer’s agent to access.
A buyer wants a showing. Their agent wants a hassle-free, smooth showing. The use of a lockbox accomplishes both of these things. Showings are scheduled by the buyer’s agent at the convenience of the buyer, so a showing could take place on a Wed morning, a Fri afternoon or a Sun evening. A lockbox makes all of these showings possible.
There are two lockbox styles commonly used in the Orlando market.
Electronic An electronic lockbox provides a reliable, automated system for home access while a home is on the market. Any time an electronic lockbox is accessed by an agent using their “e-key” and pin number, their name, member ID, and the date and time is electronically recorded. An agent’s e-key is deactivated every 24 hours and requires a daily download of showing activity to be reactivated. A detailed record of all showings can be retrieved online at any time.
The electronic lockbox most commonly used in the Orlando market is the Supra iBox. Orlando Regional Realtor Association (ORRA) distributes and manages all iBox lockboxes and e-keys in the Orlando market. ORRA distributes iBox lockboxes and e-keys only to licensed Florida agents/brokers who are members of ORRA. An iBox and e-key are costly for an agent to obtain.
An iBox can only be accessed 9am to 9pm every day of the week. An iBox automatically locks out access for all other times. If an agent attempts to access an iBox at 7am, the iBox will register the attempted access and give the agent a “rejection” error message on their e-key.
Manual The Shurlok and GE KeySafe are the most popular manual lockbox styles used by Orlando realtors today. The listing agent self-selects an access code before securely attaching a manual lockbox to the front doorknob. The listing agent will then provide the access code to authorized agents for scheduled showings.
Manual lockboxes are helpful for providing easy access to other professionals involved in a real estate transaction such as home inspectors or repair personnel who are unable to access an iBox (these folks don’t have an e-key).
A manual lockbox is inexpensive and can be purchased by anyone at Lowe’s or Home Depot. This style of lockbox is also commonly used by FSBOs.
By using a lockbox, there is no need for a seller to be home, for the listing agent to attend or for the buyer’s agent to pick up a key at the office. The home key is already located in a secure location at the home for the buyer’s agent to access.
A buyer wants a showing. Their agent wants a hassle-free, smooth showing. The use of a lockbox accomplishes both of these things. Showings are scheduled by the buyer’s agent at the convenience of the buyer, so a showing could take place on a Wed morning, a Fri afternoon or a Sun evening. A lockbox makes all of these showings possible.
There are two lockbox styles commonly used in the Orlando market.
Electronic An electronic lockbox provides a reliable, automated system for home access while a home is on the market. Any time an electronic lockbox is accessed by an agent using their “e-key” and pin number, their name, member ID, and the date and time is electronically recorded. An agent’s e-key is deactivated every 24 hours and requires a daily download of showing activity to be reactivated. A detailed record of all showings can be retrieved online at any time.
The electronic lockbox most commonly used in the Orlando market is the Supra iBox. Orlando Regional Realtor Association (ORRA) distributes and manages all iBox lockboxes and e-keys in the Orlando market. ORRA distributes iBox lockboxes and e-keys only to licensed Florida agents/brokers who are members of ORRA. An iBox and e-key are costly for an agent to obtain.
An iBox can only be accessed 9am to 9pm every day of the week. An iBox automatically locks out access for all other times. If an agent attempts to access an iBox at 7am, the iBox will register the attempted access and give the agent a “rejection” error message on their e-key.
Manual The Shurlok and GE KeySafe are the most popular manual lockbox styles used by Orlando realtors today. The listing agent self-selects an access code before securely attaching a manual lockbox to the front doorknob. The listing agent will then provide the access code to authorized agents for scheduled showings.
Manual lockboxes are helpful for providing easy access to other professionals involved in a real estate transaction such as home inspectors or repair personnel who are unable to access an iBox (these folks don’t have an e-key).
A manual lockbox is inexpensive and can be purchased by anyone at Lowe’s or Home Depot. This style of lockbox is also commonly used by FSBOs.
Oct 10, 2008
The Realtor Difference: MLS
MLS (Multiple Listing Service) is a proprietary real-time home listing database available only to licensed agents/brokers. According to the National Association of Realtors, 64% of metro Orlando buyers purchased their home through an agent/broker in 2007. MLS is the premier tool for agents/brokers in finding homes for their clients – qualified buyers from all walks of life, from every corner of the country and the world. Not only is your own agent actively seeking a qualified buyer for your home, but in essence, with MLS every other agent/broker in metro Orlando is, too.
Oct 7, 2008
Knowing Neighbors Is Key To Home Safety
My family was recently awoken late one evening to the sights and sounds of a police car parked directly in front of our home with lights ablaze. Is there an emergency at the neighbor’s house? Is the officer here to see us? Moments later, we realized the officer had pulled a car over in front of our home and was using his loud speaker to instruct the driver to exit his car.
This got me thinking about neighborhood safety and what I would/could do in the case of an emergency with my family or a neighboring family. My neighbors and I may only talk in passing and witness each other’s daily comings and goings from a distance, but there is comfort to be had in knowing the faces, kids, pets and cars of who belongs on my street – and who doesn’t. In my opinion, this is more powerful than the most sophisticated home security system.
- Orlando Neighborhood Watch
- Orange County Neighborhood Programs & Services
- Seminole County Community Service & Crime Prevention
This got me thinking about neighborhood safety and what I would/could do in the case of an emergency with my family or a neighboring family. My neighbors and I may only talk in passing and witness each other’s daily comings and goings from a distance, but there is comfort to be had in knowing the faces, kids, pets and cars of who belongs on my street – and who doesn’t. In my opinion, this is more powerful than the most sophisticated home security system.
- Orlando Neighborhood Watch
- Orange County Neighborhood Programs & Services
- Seminole County Community Service & Crime Prevention
Oct 3, 2008
Thieves Tap Into Home Equity
According to The New York Times, homeowners who have significant equity in their homes may be well-advised to check their credit reports frequently. Identity thieves have recently begun targeting individuals with good credit because they often have substantial untapped home equity and large, open lines of credit.
A home equity line of credit is an ideal vehicle and a favorite option for criminals because a line of credit is almost as easy to open as a credit card account as long as a criminal has the proper financial information of their victim.
A home equity line of credit is an ideal vehicle and a favorite option for criminals because a line of credit is almost as easy to open as a credit card account as long as a criminal has the proper financial information of their victim.
Sep 30, 2008
Sep 26, 2008
Can You Still Get A Mortgage?
Melissa Cohn, founder and CEO of The Manhattan Mortgage Company, answers questions from The New York Times readers about obtaining mortgages to buy a home in the current economic climate.
Sep 23, 2008
Freddie & Fannie Rescue Impacts Sellers
According to CNNMoney.com, the federal takeover of Freddie Mac and Fannie Mae will likely translate into lower mortgage rates and greater availability of credit according to experts. Rates could drop 1% from the stubbornly high 6.39% for a 30-year fixed rate mortgage.
Sellers, how does this impact you and why should you care?
Interest rates have a direct impact on a monthly housing payment, so any rate decrease will have a significant positive affect on what a buyer can afford – it could be the difference between buying and not buying or potentially being approved for a higher price range. Good for buyer, good for seller.
With decreased interest rates, a buyer sitting on the sidelines may take this opportunity to finally commit to buying. A “borderline” buyer may receive that little extra buying power they need to buy a home. A “wait for a sweeter deal” buyer may decide the deal is finally sweet enough for them to commit to buying.
Sellers, how does this impact you and why should you care?
Interest rates have a direct impact on a monthly housing payment, so any rate decrease will have a significant positive affect on what a buyer can afford – it could be the difference between buying and not buying or potentially being approved for a higher price range. Good for buyer, good for seller.
With decreased interest rates, a buyer sitting on the sidelines may take this opportunity to finally commit to buying. A “borderline” buyer may receive that little extra buying power they need to buy a home. A “wait for a sweeter deal” buyer may decide the deal is finally sweet enough for them to commit to buying.
Sep 17, 2008
High Inventory & Minimal Sales in Avalon Park
Avalon Park is an established, but continuously growing community. It is considered to be the second most well known community in east metro Orlando. Folks all over the metro area commonly refer to the east side and east Orlando as the “Waterford/Avalon area”.
The majority of all real estate activity over the past 90 days in Avalon Park occurred in the $200,000 to $300,000 price range. Roughly 60% of all active homes, pending sales and closed sales were within this range.
With a high inventory of homes on the market in Avalon Park, how does a buyer choose among 63 similar homes for sale in the $200s?
Price per square foot will be a key consideration for a buyer in Avalon Park – the most space for the least price is what they’re going to buy. Active listings in the $200s presently run the gamut from 1,500 square feet to 3,800 square feet.
There has been minimal home sales in the low $200s – just four sales in the past 90 days. With the majority of active listings in the low $200s being overpriced short sales / foreclosures, this lack of sales will continue until sellers drop their prices in line with recent comparable sales.
There has been minimal home sales in the high $200s – just five sales in the past 90 days. However, the majority of active listings in the high $200s are priced within reason (half of those being short sales / foreclosures). I anticipate a noticeable increase in home sales in the high $200s throughout year end.
- 63 active priced $205,000 to $300,000 including 36 short sales / foreclosures
- 19 pending priced $210,000 to $299,000 including 17 short sales / foreclosures
- 9 sold (past 90 days) priced $217,000 to $300,000 including 3 short sales / foreclosures
The majority of all real estate activity over the past 90 days in Avalon Park occurred in the $200,000 to $300,000 price range. Roughly 60% of all active homes, pending sales and closed sales were within this range.
With a high inventory of homes on the market in Avalon Park, how does a buyer choose among 63 similar homes for sale in the $200s?
Price per square foot will be a key consideration for a buyer in Avalon Park – the most space for the least price is what they’re going to buy. Active listings in the $200s presently run the gamut from 1,500 square feet to 3,800 square feet.
There has been minimal home sales in the low $200s – just four sales in the past 90 days. With the majority of active listings in the low $200s being overpriced short sales / foreclosures, this lack of sales will continue until sellers drop their prices in line with recent comparable sales.
There has been minimal home sales in the high $200s – just five sales in the past 90 days. However, the majority of active listings in the high $200s are priced within reason (half of those being short sales / foreclosures). I anticipate a noticeable increase in home sales in the high $200s throughout year end.
- 63 active priced $205,000 to $300,000 including 36 short sales / foreclosures
- 19 pending priced $210,000 to $299,000 including 17 short sales / foreclosures
- 9 sold (past 90 days) priced $217,000 to $300,000 including 3 short sales / foreclosures
Sep 15, 2008
High Inventory & Strong Sales in Waterford Lakes
Waterford Lakes is known as the most established, quality neighborhood in east metro Orlando. In fact, folks all over the metro area refer to the east side and east Orlando as “Waterford Lakes”.
Though the inventory of available homes is high, Waterford Lakes is experiencing strong sales over the past 90 days. And it’s not short sales / foreclosures that are moving in Waterford Lakes as is the case in newer east metro Orlando neighborhoods. The majority of sales in Waterford Lakes were traditional sales (11 of 18 sales).
This is the case of a strong, desirable community retaining its value and appeal even in the most challenging of times.
The majority of all real estate activity over the past 90 days in Waterford Lakes occurred in the $200,000 to $300,000 price range. Roughly 70% of all active homes, pending sales and closed sales were within this range.
With inventory so high, how does a buyer choose among 34 nearly identical homes for sale in the $200s? The answer is first getting back to basics: price right and show great. In order to sell today for a quick, top dollar sale, a seller needs to share knowledge, have an accessible home and an accessible agent more than ever before.
- 34 active priced $205,000 to $300,000 including 14 short sales / foreclosures
- 5 pending priced $210,000 to $290,000 including 1 short sale / foreclosure
- 18 sold (past 90 days) priced $200,000 to $300,000 including 7 short sales / foreclosures
Though the inventory of available homes is high, Waterford Lakes is experiencing strong sales over the past 90 days. And it’s not short sales / foreclosures that are moving in Waterford Lakes as is the case in newer east metro Orlando neighborhoods. The majority of sales in Waterford Lakes were traditional sales (11 of 18 sales).
This is the case of a strong, desirable community retaining its value and appeal even in the most challenging of times.
The majority of all real estate activity over the past 90 days in Waterford Lakes occurred in the $200,000 to $300,000 price range. Roughly 70% of all active homes, pending sales and closed sales were within this range.
With inventory so high, how does a buyer choose among 34 nearly identical homes for sale in the $200s? The answer is first getting back to basics: price right and show great. In order to sell today for a quick, top dollar sale, a seller needs to share knowledge, have an accessible home and an accessible agent more than ever before.
- 34 active priced $205,000 to $300,000 including 14 short sales / foreclosures
- 5 pending priced $210,000 to $290,000 including 1 short sale / foreclosure
- 18 sold (past 90 days) priced $200,000 to $300,000 including 7 short sales / foreclosures
Sep 10, 2008
A Glut Of Spring Isle Townhomes
Owners of Spring Isle townhomes in east metro Orlando may be surprised if they put their homes up for sale any time soon. One in ten Spring Isle townhomes is on the market. The dilemma is over half of these townhomes are grossly overpriced and not moving as a result.
How does a buyer choose among 25 identical townhomes for sale? The answer is price, price and price - whatever is lowest priced will be next in line to sell. And what’s lowest priced today is short sales / foreclosures.
With overpriced short sales clogging the market, we will soon see these homes ultimately be foreclosed on due to a failed short sale (the lender approves a short sale, not the homeowner). A home that has been foreclosed on will be put back on the market at a rock bottom price.
An overpriced seller needs to consider the ramifications of overpricing their home – excessive time, cost, work, stress and worry. It’s time to price right, sell and move on.
- 25 active priced $141,000 to $229,000 including 17 short sales / foreclosures
- 5 pending priced $145,000 to $187,000 including 4 short sales / foreclosures
- 2 sold (past 90 days) priced $148,000 to $160,000 including 2 short sales / foreclosures
How does a buyer choose among 25 identical townhomes for sale? The answer is price, price and price - whatever is lowest priced will be next in line to sell. And what’s lowest priced today is short sales / foreclosures.
With overpriced short sales clogging the market, we will soon see these homes ultimately be foreclosed on due to a failed short sale (the lender approves a short sale, not the homeowner). A home that has been foreclosed on will be put back on the market at a rock bottom price.
An overpriced seller needs to consider the ramifications of overpricing their home – excessive time, cost, work, stress and worry. It’s time to price right, sell and move on.
- 25 active priced $141,000 to $229,000 including 17 short sales / foreclosures
- 5 pending priced $145,000 to $187,000 including 4 short sales / foreclosures
- 2 sold (past 90 days) priced $148,000 to $160,000 including 2 short sales / foreclosures
Sep 8, 2008
Orlando Area Crime Map
The Orlando Area Crime Map is a searchable crime database and is compiled using public records provided by local police agencies including the Orlando Police Department and the Orange County Sheriff's Department.
Sep 3, 2008
Avalon Park Farmer’s Market
Farmer’s Market
Downtown Avalon Park
Oct 2008 to Apr 2009
Saturdays 7am to 12pm
Downtown Avalon Park
Oct 2008 to Apr 2009
Saturdays 7am to 12pm
Aug 29, 2008
The True Cost of Overpricing
What is more valuable to you today - time or money?
It is important for sellers to understand the true cost of overpricing their home is not just money alone, but also time.
In the past 90 days of home sales in these premier east metro Orlando neighborhoods, 48 of 78 homes had price reductions. Here is how non-price reductions versus price reductions stack up against each other in the two most critical areas of a home sale – time and money.
No Price Reductions
- 30 of 78 sales had no price reductions
- 78 days to sell average
- 95% sales price to list price average
Price Reductions
- 48 of 78 sales had price reductions
- 12% price reduction average
- 199 days to sell average
- 94% sales price to list price average
The majority of sales with price reductions had to reduce multiple times in order to sell.
- 1 price reduction 14 homes
- 2 price reductions 15 homes
- 3 price reductions 7 homes
- 4+ price reductions 12 homes
A seller cannot rely on simply one price reduction to make their home competitive and to bring in an offer. Until a home is priced in line with recent comparable sales, a seller will need to drop and drop their price. A buyer does not care if a seller has dropped their price one time or eight times; this will have no bearing on a buyer’s offer.
Though the average price reduction was 12% overall, the top 10 price reductions ranged from 16% to 32%! Wow, 32%…I can only assume this seller based their asking price on what their home was worth at the peak in 2005/2006 rather than recent comparable sales. This seller paid dearly for it, too – the house took just under a year to sell.
Summary The moral of this story is straightforward:
- Homes that are priced right sell quicker and for more money.
- Homes that are overpriced take over 2½ times longer to sell and sell for less money.
Even after a year as a buyer’s market in Orlando metro, many sellers are still making a fundamental mistake by overpricing their home. I understand we all want to make a killing on the sale of our home – which many folks did in 2005/2006 - but that time has passed.
Depending on when a seller bought their home and the amount of equity they have in it, a profit is still possible. A large profit – no - but consider the alternative. Not including short sales / foreclosures, there is a large population of sellers who are making zero profit or bringing cash to the closing table just to sell their home.
It is important for sellers to understand the true cost of overpricing their home is not just money alone, but also time.
In the past 90 days of home sales in these premier east metro Orlando neighborhoods, 48 of 78 homes had price reductions. Here is how non-price reductions versus price reductions stack up against each other in the two most critical areas of a home sale – time and money.
No Price Reductions
- 30 of 78 sales had no price reductions
- 78 days to sell average
- 95% sales price to list price average
Price Reductions
- 48 of 78 sales had price reductions
- 12% price reduction average
- 199 days to sell average
- 94% sales price to list price average
The majority of sales with price reductions had to reduce multiple times in order to sell.
- 1 price reduction 14 homes
- 2 price reductions 15 homes
- 3 price reductions 7 homes
- 4+ price reductions 12 homes
A seller cannot rely on simply one price reduction to make their home competitive and to bring in an offer. Until a home is priced in line with recent comparable sales, a seller will need to drop and drop their price. A buyer does not care if a seller has dropped their price one time or eight times; this will have no bearing on a buyer’s offer.
Though the average price reduction was 12% overall, the top 10 price reductions ranged from 16% to 32%! Wow, 32%…I can only assume this seller based their asking price on what their home was worth at the peak in 2005/2006 rather than recent comparable sales. This seller paid dearly for it, too – the house took just under a year to sell.
Summary The moral of this story is straightforward:
- Homes that are priced right sell quicker and for more money.
- Homes that are overpriced take over 2½ times longer to sell and sell for less money.
Even after a year as a buyer’s market in Orlando metro, many sellers are still making a fundamental mistake by overpricing their home. I understand we all want to make a killing on the sale of our home – which many folks did in 2005/2006 - but that time has passed.
Depending on when a seller bought their home and the amount of equity they have in it, a profit is still possible. A large profit – no - but consider the alternative. Not including short sales / foreclosures, there is a large population of sellers who are making zero profit or bringing cash to the closing table just to sell their home.
Aug 25, 2008
How Interest Rates Impact Sellers
The most important component of a home sale/purchase is unquestionably money. When a money problem arises, both buyer and seller are affected and an entire transaction can be derailed in an instant.
According to CNNMoney.com, forecasters have predicted mortgage interest rates will hit at least 7% by the end of the year.
Sellers, how does this impact you and why should you care?
Fewer Buyers As rates increase, the number of buyers who can afford to buy and qualify for a home loan will drop. Interest rates have a direct impact on a monthly housing payment, so any rate increase will have a significant affect on what a buyer can afford. These buyers will either lose the ability to buy altogether or have to lower their price range.
At the other end of the buyer spectrum are buyers who still have the financial ability to buy, but believe in “waiting for a better deal” on their financing. Well, they could be waiting a lifetime…the fact is no one on earth knows when or if this “better deal” will materialize.
More Time The average days on market (days from time of listing to closing) today is 117 days in Orlando metro. With fewer - and choosier buyers – remaining in the market, be prepared to add weeks or months to your home sale. The buyers who remain will be even more cautious, conservative and selective in their home purchase, which means more time on market for sellers.
Price Reduction The longer a home is on the market, the more likely a price reduction will take place. With buyers taking a more conservative approach in their home purchase and taking more and more time to make a purchase decision, homes that are not priced competitively will quickly go stale on the market. The seller of a stale home who truly wants to sell will be forced to reduce their price.
Lower Offers When a seller receives an offer on their home, it is more likely that they will receive a lower offer. Buyers are feeling the pinch from their lenders, are limited in what they can buy and expect to squeeze every last dollar out of their home purchase. That squeeze will be forced on the seller. Price reductions aren’t always enough for buyers - they aren’t concerned if a seller has already dropped their price once, twice or more.
According to CNNMoney.com, forecasters have predicted mortgage interest rates will hit at least 7% by the end of the year.
Sellers, how does this impact you and why should you care?
Fewer Buyers As rates increase, the number of buyers who can afford to buy and qualify for a home loan will drop. Interest rates have a direct impact on a monthly housing payment, so any rate increase will have a significant affect on what a buyer can afford. These buyers will either lose the ability to buy altogether or have to lower their price range.
At the other end of the buyer spectrum are buyers who still have the financial ability to buy, but believe in “waiting for a better deal” on their financing. Well, they could be waiting a lifetime…the fact is no one on earth knows when or if this “better deal” will materialize.
More Time The average days on market (days from time of listing to closing) today is 117 days in Orlando metro. With fewer - and choosier buyers – remaining in the market, be prepared to add weeks or months to your home sale. The buyers who remain will be even more cautious, conservative and selective in their home purchase, which means more time on market for sellers.
Price Reduction The longer a home is on the market, the more likely a price reduction will take place. With buyers taking a more conservative approach in their home purchase and taking more and more time to make a purchase decision, homes that are not priced competitively will quickly go stale on the market. The seller of a stale home who truly wants to sell will be forced to reduce their price.
Lower Offers When a seller receives an offer on their home, it is more likely that they will receive a lower offer. Buyers are feeling the pinch from their lenders, are limited in what they can buy and expect to squeeze every last dollar out of their home purchase. That squeeze will be forced on the seller. Price reductions aren’t always enough for buyers - they aren’t concerned if a seller has already dropped their price once, twice or more.
Your New Home As rates increase, your ability to buy a new home is affected. You may have fallen in love with a $450,000 home; however, should your lender lower your approved price range with a rate increase, you may no longer be able to afford that home. That means back to the drawing board and back to house hunting at a lower price range.
Aug 21, 2008
Ideal Time To Sell: Holidays
As we approach Labor Day, I am reminded of an odd experience I had working with a buyer over a “holiday” weekend.
I worked with an out-of-state buyer on Superbowl Sunday. They had a tight time frame, their checkbook and a pre-approval letter - they were there to buy. I attempted to schedule eight showings several days in advance. Still, five of eight sellers denied the showing request because “we are having a Superbowl party”. The buyer saw three of the homes on their list and made a full price offer on one of them the following morning.
There is an incorrect assumption that buyers don’t house hunt during the holidays; this could not be further from the truth. “Buyers take time off, too” and “everyone leaves town for such-and-such holiday” are seller misconceptions. In reality, any extended weekend - national holidays, federal holidays and school closings – is an ideal time to sell your home.
Buyers Have Time & Energy A ready, willing and able buyer wants to house hunt when they have the time and energy for it. A serious buyer will plan an outing with their agent well in advance. These buyers come armed with a good agent, their checkbook and a pre-approval letter. Isn’t this exactly the kind of buyer you’re looking for?
Minimal Competition There is a limited number of homes available for showing – and therefore, minimal competition - during the holidays. A majority of sellers “close up shop” during the holidays. Some sellers go out of town and choose to deny showings while they are away. And other sellers remain home, but choose to deny showings because they are at home with their families and don’t want to deal with the inconvenience of showings.
There are several federal holidays approaching that will provide many buyers with an extended weekend to house hunt and potentially buy your home.
- Mon 10/13/2008 Columbus Day
- Tue 11/11/2008 Veterans Day
- Mon 1/19/2009 Martin Luther King Jr Day
- Mon 2/16/2009 President's Day
I worked with an out-of-state buyer on Superbowl Sunday. They had a tight time frame, their checkbook and a pre-approval letter - they were there to buy. I attempted to schedule eight showings several days in advance. Still, five of eight sellers denied the showing request because “we are having a Superbowl party”. The buyer saw three of the homes on their list and made a full price offer on one of them the following morning.
There is an incorrect assumption that buyers don’t house hunt during the holidays; this could not be further from the truth. “Buyers take time off, too” and “everyone leaves town for such-and-such holiday” are seller misconceptions. In reality, any extended weekend - national holidays, federal holidays and school closings – is an ideal time to sell your home.
Buyers Have Time & Energy A ready, willing and able buyer wants to house hunt when they have the time and energy for it. A serious buyer will plan an outing with their agent well in advance. These buyers come armed with a good agent, their checkbook and a pre-approval letter. Isn’t this exactly the kind of buyer you’re looking for?
Minimal Competition There is a limited number of homes available for showing – and therefore, minimal competition - during the holidays. A majority of sellers “close up shop” during the holidays. Some sellers go out of town and choose to deny showings while they are away. And other sellers remain home, but choose to deny showings because they are at home with their families and don’t want to deal with the inconvenience of showings.
There are several federal holidays approaching that will provide many buyers with an extended weekend to house hunt and potentially buy your home.
- Mon 10/13/2008 Columbus Day
- Tue 11/11/2008 Veterans Day
- Mon 1/19/2009 Martin Luther King Jr Day
- Mon 2/16/2009 President's Day
Aug 18, 2008
A Dirty Little Secret
I’ve had a dirty little secret at my house – literally – a foul, nasty master shower and kitchen sink. We have endured hard water, calcium and mold build up for over a year that wouldn’t come clean for anything.
The worst thing happened last summer when I made a cocktail of four cleaning products and went at it – I ended up nearly asphyxiating myself in my master shower. Scary and so very stupid of me. I had the windows open and fans going for days to clear the polluted air.
We’ve tried product after product with no success. My husband was fed up with looking at the mess in the two most used water sources in our home. Just recently, he went to Lowe’s in search of “something”. He bought three products just to try them out having no expectation of them working – hey, nothing else has worked for us in the past…
Enter a super product, my husband and some elbow grease. It’s called Calcium Lime Rust - more commonly known as CLR - a household cleaning product used for dissolving calcium, lime and iron oxide stains/deposits from sinks, showers, tile and grout. My master shower is now clean as a whistle with all the nastiness washed down the drain pipe and my kitchen sink looks shiny new.
The worst thing happened last summer when I made a cocktail of four cleaning products and went at it – I ended up nearly asphyxiating myself in my master shower. Scary and so very stupid of me. I had the windows open and fans going for days to clear the polluted air.
We’ve tried product after product with no success. My husband was fed up with looking at the mess in the two most used water sources in our home. Just recently, he went to Lowe’s in search of “something”. He bought three products just to try them out having no expectation of them working – hey, nothing else has worked for us in the past…
Enter a super product, my husband and some elbow grease. It’s called Calcium Lime Rust - more commonly known as CLR - a household cleaning product used for dissolving calcium, lime and iron oxide stains/deposits from sinks, showers, tile and grout. My master shower is now clean as a whistle with all the nastiness washed down the drain pipe and my kitchen sink looks shiny new.
Aug 14, 2008
How Short Sales & Foreclosures Affect Your Home
No east metro Orlando community is immune to the short sale and foreclosure epidemic playing out in every neighborhood at every price level. On my street in east metro Orlando, 5 of 69 homes are in some stage of foreclosure. I watch and worry as these homes quickly go from bad to worse. These short sales and foreclosures have serious negative affects on your home, neighborhood and ability to sell.
Home Value A straight seller - an owner who has equity in their home and is selling by choice - today is competing with majority short sales and foreclosures. These parties are not traditionally motivated (sell high, sell quick) and are willing and able to sell below market value. These short sales and foreclosures are undercutting competing homes and selling at a substantial discount because they can afford to. In many quality east metro Orlando neighborhoods, the only homes moving at this time are short sales and foreclosures.
Security Vacant homes are targets for unauthorized activity such as partying and squatting. This kind of activity will only lead to more bad news. Illegal activity in vacant homes can start the spread of crime to neighboring, occupied homes. I personally overheard a conversation between a police officer and a young man during an 11pm traffic stop that occurred in front of my home. Officer: “Where are you heading to?” Young man: “To the house up at the corner.” Officer: “That house is vacant and I’ve already arrested three people there.”
Image In most cases, once an owner has gotten to the point of a short sale or foreclosure, basic yard and home maintenance have long been forgotten.
Owners who are negotiating a short sale with their lender commonly rent their home to an unqualified/undesirable tenant for immediate cash flow in an attempt to prevent foreclosure. Even with a tenant in place, an owner in financial dire straights may collect the rent, pocket it and continue to neglect the home.
Owners who fail to negotiate a short sale with their lender may decide to take the most drastic step of all by abandoning their home. Owners who walk away from their homes leave an unattended and neglected home for their lender and authorities to pick up the pieces.
Property Crime I’ve personally seen foreclosures stripped of anything of value (appliances, cabinets, faucets, trim) including its infrastructure (hot water heater, furnace, plumbing). These property crimes are commonly committed by the owner who lost the home to foreclosure or someone connected to that owner. This situation makes the home virtually impossible to sell. It is the rarest of rare buyers who would even consider buying a home that has been destroyed by vandals.
HOA Your HOA is a business. It’s in the business of operating and managing your association: landscaping, gates, recreational facilities, dues collection…all areas that have a direct impact on the value of your home. HOA dues are used to operate the community, so when short sales and foreclosures don’t pay their dues for months on end, the HOA is shorted and cannot maintain normal daily operations. HOAs may have to make a difficult decision to curtail or eliminate otherwise standard community services. Even in the case of a short sale or foreclosure successfully changing hands to a new owner, it is common for that original lender to settle with the HOA for a discounted amount.
Home Value A straight seller - an owner who has equity in their home and is selling by choice - today is competing with majority short sales and foreclosures. These parties are not traditionally motivated (sell high, sell quick) and are willing and able to sell below market value. These short sales and foreclosures are undercutting competing homes and selling at a substantial discount because they can afford to. In many quality east metro Orlando neighborhoods, the only homes moving at this time are short sales and foreclosures.
Security Vacant homes are targets for unauthorized activity such as partying and squatting. This kind of activity will only lead to more bad news. Illegal activity in vacant homes can start the spread of crime to neighboring, occupied homes. I personally overheard a conversation between a police officer and a young man during an 11pm traffic stop that occurred in front of my home. Officer: “Where are you heading to?” Young man: “To the house up at the corner.” Officer: “That house is vacant and I’ve already arrested three people there.”
Image In most cases, once an owner has gotten to the point of a short sale or foreclosure, basic yard and home maintenance have long been forgotten.
Owners who are negotiating a short sale with their lender commonly rent their home to an unqualified/undesirable tenant for immediate cash flow in an attempt to prevent foreclosure. Even with a tenant in place, an owner in financial dire straights may collect the rent, pocket it and continue to neglect the home.
Owners who fail to negotiate a short sale with their lender may decide to take the most drastic step of all by abandoning their home. Owners who walk away from their homes leave an unattended and neglected home for their lender and authorities to pick up the pieces.
Property Crime I’ve personally seen foreclosures stripped of anything of value (appliances, cabinets, faucets, trim) including its infrastructure (hot water heater, furnace, plumbing). These property crimes are commonly committed by the owner who lost the home to foreclosure or someone connected to that owner. This situation makes the home virtually impossible to sell. It is the rarest of rare buyers who would even consider buying a home that has been destroyed by vandals.
HOA Your HOA is a business. It’s in the business of operating and managing your association: landscaping, gates, recreational facilities, dues collection…all areas that have a direct impact on the value of your home. HOA dues are used to operate the community, so when short sales and foreclosures don’t pay their dues for months on end, the HOA is shorted and cannot maintain normal daily operations. HOAs may have to make a difficult decision to curtail or eliminate otherwise standard community services. Even in the case of a short sale or foreclosure successfully changing hands to a new owner, it is common for that original lender to settle with the HOA for a discounted amount.
Aug 11, 2008
Lenders Fear Bigger Wave of Loan Defaults
Homeowners, are you tired of short sales and foreclosures in your neighborhood and their affect on your home and your ability to sell? Unfortunately, this downward spiral is expected to only get worse in the next year or two.
According to The New York Times, the first wave of Americans to default on their home mortgages appears to be cresting, but a second, far larger one is quickly building.
The neighborhoods in east metro Orlando that are most affected by short sales and foreclosures are the communities that were built in 2005/2006. This period was the peak of the Orlando metro real estate boom where we experienced limited homes for sale and quick, easy financing. These neighborhoods are where you will find the greatest number of short sales and foreclosures today. Their levels have reached epidemic proportions and presently show no end in sight for frustrated homeowners.
According to The New York Times, the first wave of Americans to default on their home mortgages appears to be cresting, but a second, far larger one is quickly building.
The neighborhoods in east metro Orlando that are most affected by short sales and foreclosures are the communities that were built in 2005/2006. This period was the peak of the Orlando metro real estate boom where we experienced limited homes for sale and quick, easy financing. These neighborhoods are where you will find the greatest number of short sales and foreclosures today. Their levels have reached epidemic proportions and presently show no end in sight for frustrated homeowners.
Aug 5, 2008
What Buyers Want To See At Your Home
Fresh baked cookies. Fresh flowers. Potpourri. Scented candles. Soft music. When your home is on the market, these details are…nice. But will they sell your home - no. What will sell your home is simply getting back to basics. Here is what buyers want to see at your home…these are all simple to implement with no cost to you.
Light & Bright Open every window treatment in your home (yes, even the baths, laundry, stairways/hallways). Even better, turn on every light in your home. The number one pet peeve of buyers (and me) in viewing homes is a dark, hidden home. You can’t see the place and it feels and looks like a cave…why on earth would a buyer find this appealing?
Sparkling Clean A spotlessly clean home is a must in today’s market. Maintaining a spotlessly clean home while it’s on the market is a worthwhile investment of your time and energy for a quick, top dollar sale. The chores that require daily attention are the kitchen, baths, making beds and straightening up. Other chores that can be done a couple times per week include dusting, vacuuming, mopping, weeding and laundry.
Clutter-Free Banish clutter from all rooms, surfaces and storage areas. Show no mercy…recycle, donate, sell, give away and throw away with abandon! There is nothing pleasurable about viewing a cluttered home. In fact, it’s a real turn off to buyers…they can’t envision their family living in a place where every nook and cranny is overflowing with someone else’s clutter.
Spaciousness Be mindful that your rooms have an easy, unobstructed flow. Excessive furniture or furniture blocking windows, doors or walkways makes a room feel awkward, uncomfortable and congested. You may adore your grandmother’s behemoth antique china cabinet located in your eat-in kitchen, but all buyers will see is an overstuffed, cramped room.
Not You Get out of dodge, sellers! Let the buyer and their agent conduct a leisurely showing on their own. The buyer is there to view your home in order to possibly buy it…the buyer is not there to meet you, ask you questions or receive a personal guided tour by you. Leave in advance of a scheduled showing and return after the showing is complete. If the showing goes over the allotted time, great! Let them be! Run another errand or wait in your car several blocks away until they are finished.
Light & Bright Open every window treatment in your home (yes, even the baths, laundry, stairways/hallways). Even better, turn on every light in your home. The number one pet peeve of buyers (and me) in viewing homes is a dark, hidden home. You can’t see the place and it feels and looks like a cave…why on earth would a buyer find this appealing?
Sparkling Clean A spotlessly clean home is a must in today’s market. Maintaining a spotlessly clean home while it’s on the market is a worthwhile investment of your time and energy for a quick, top dollar sale. The chores that require daily attention are the kitchen, baths, making beds and straightening up. Other chores that can be done a couple times per week include dusting, vacuuming, mopping, weeding and laundry.
Clutter-Free Banish clutter from all rooms, surfaces and storage areas. Show no mercy…recycle, donate, sell, give away and throw away with abandon! There is nothing pleasurable about viewing a cluttered home. In fact, it’s a real turn off to buyers…they can’t envision their family living in a place where every nook and cranny is overflowing with someone else’s clutter.
Spaciousness Be mindful that your rooms have an easy, unobstructed flow. Excessive furniture or furniture blocking windows, doors or walkways makes a room feel awkward, uncomfortable and congested. You may adore your grandmother’s behemoth antique china cabinet located in your eat-in kitchen, but all buyers will see is an overstuffed, cramped room.
Not You Get out of dodge, sellers! Let the buyer and their agent conduct a leisurely showing on their own. The buyer is there to view your home in order to possibly buy it…the buyer is not there to meet you, ask you questions or receive a personal guided tour by you. Leave in advance of a scheduled showing and return after the showing is complete. If the showing goes over the allotted time, great! Let them be! Run another errand or wait in your car several blocks away until they are finished.
Aug 1, 2008
Price Right Now or Price Reduction Later
In the past 90 days of home sales in these premier east metro Orlando neighborhoods, 37 of 51 homes dropped their list price an average of 11% (list price is the asking price). chart
What does this mean for you? This summary further demonstrates the reality of price reductions today. A homeowner has an important decision to make…price according to market straight out of the gate or be prepared to drop your asking price down the road.
Your agent will conduct a Comparative Market Analysis in order to arrive at a reasonable range of value where a buyer and seller may arrive at a satisfactory sales price. But ultimately, it is the homeowner who decides what price to list their home at.
The first and best indication of your home being priced too high is the lack of showings. A lack of showings will lead to a home languishing on the market for an extended period of time – something no seller wants. Ultimately, an overpriced home will come to the end of the line, will not sell and the seller will have to start from scratch.
What does this mean for you? This summary further demonstrates the reality of price reductions today. A homeowner has an important decision to make…price according to market straight out of the gate or be prepared to drop your asking price down the road.
Your agent will conduct a Comparative Market Analysis in order to arrive at a reasonable range of value where a buyer and seller may arrive at a satisfactory sales price. But ultimately, it is the homeowner who decides what price to list their home at.
The first and best indication of your home being priced too high is the lack of showings. A lack of showings will lead to a home languishing on the market for an extended period of time – something no seller wants. Ultimately, an overpriced home will come to the end of the line, will not sell and the seller will have to start from scratch.
Jul 30, 2008
Annual Free Credit Report
AnnualCreditReport.com is the official site to help consumers to obtain their free credit report.
This central site allows you to request a free credit file disclosure, commonly called a credit report, once every 12 months from each of the nationwide consumer credit reporting companies: Equifax, Experian and TransUnion.
This central site allows you to request a free credit file disclosure, commonly called a credit report, once every 12 months from each of the nationwide consumer credit reporting companies: Equifax, Experian and TransUnion.
Jul 23, 2008
Seller Best Practices In A Buyer’s Market
Price Right The most critical factor in the sale of your home is pricing right. If you do nothing else, pricing right will get you 50% of the way to a sold home. Price according to market from out of the gate and save yourself an untold amount of time, energy and concern.
Show Great The second most critical factor in the sale of your home is showing great. If you do nothing else, showing great will get you 40% of the way to a sold home. You can never go wrong by following the fundamentals: show your home spotlessly clean, light and bright. This is a seller’s best investment for a quick, top dollar sale. Ask your agent what areas of your home need the most attention – they will be happy to provide guidance. Check out real estate/home staging shows on tv for solid, simple, no cost ideas that you can implement in your own home.
Share Knowledge Gather relevant homeowner information to create handouts for buyers to take away from a showing of your home. Gather these docs, make copies and create simple handouts for buyers to take with them.
- Seller’s Disclosure
- Homeowner Association Disclosure
- Packet of basic homeowner info
- Property tax bill
- Property insurance bill
- School reports/grades from the county
- Electric bill from each quarter (Jan, Apr, Jul, Oct)
These are all areas of critical importance to a buyer, so make it as easy as possible for a buyer to decide “yes” to your home and “no” to the competition. Why not stand apart from the competition and present yourself as a cooperative and reasonable seller – not a bad thing to be nowadays. You’re cutting to the chase and providing helpful, relevant information to your potential buyer.
Accessible Home If a seller wants to sell in the buyer’s market we have today, they must accommodate every showing request…you never know which showing will lead to an offer. Even today in scheduling home showings, I routinely hear “The home can only be shown when the owner is present”; “The seller doesn’t want showings today”; or “The key is missing from the lockbox”. Frankly, these are the responses of a seller who doesn’t want to sell. There is no sense for a seller to put restrictions on the showing of their home. A showing is the first step to a sale, right? So why on earth put restrictions on showing requests? Buyers are going to want to see your home, which can and will occur at times that are less than convenient. You will survive these inconveniences. It’s best to suck it up for a short period of time and make showings a priority – get it over with!
Accessible Agent Your agent is your number one advocate in the sale of your home; they must be 100% responsive and timely to all inquiries about your home more today than ever. Unfortunately, even today in making inquiries for showings or other home info, I routinely experience what I call “lazy agent syndrome”…agents who do not respond in a timely manner or sometimes even at all! Pretty outrageous in my opinion.
Jul 22, 2008
East Metro Orlando Developments
Some developments taking place in east metro Orlando:
- SW corner of Colonial and Avalon Park Blvd. Orange Co recommends approval for retail development.
- NE corner of Colonial and Avalon Park Blvd. Orange Co recommends approval for retail development.
- SE of Challenger Pkwy and Ingenuity Dr. Orange Co recommends approval for student housing development.
- SW corner of Alafaya Tr and University Blvd. Orange Co recommends approval for gas station/convenience store development.
Orange County Planning Division
- SW corner of Colonial and Avalon Park Blvd. Orange Co recommends approval for retail development.
- NE corner of Colonial and Avalon Park Blvd. Orange Co recommends approval for retail development.
- SE of Challenger Pkwy and Ingenuity Dr. Orange Co recommends approval for student housing development.
- SW corner of Alafaya Tr and University Blvd. Orange Co recommends approval for gas station/convenience store development.
Orange County Planning Division
Jul 14, 2008
$300 Refund On Property Insurance
This is an update to my Jul 7 blog posting. Thanks to the My Safe Florida Home Program, I just received a $300 refund on my homeowner’s insurance. I received a 25% refund on my annual homeowner’s insurance…this made my week!
Please let me know your results and please forward this great program to everyone you know.
Please let me know your results and please forward this great program to everyone you know.
Jul 10, 2008
Amendment 1: Property Tax Savings
Beginning in 2008, homes with an assessed value of $75,000 or greater will enjoy a $50,000 homestead exemption.
Also beginning in 2008 is the new Save Our Homes portability benefit. The portability benefit transfers the dollar benefit of the homestead property assessment limitation known as the “Save Our Homes benefit” from a prior homestead to a subsequent homestead. The portable amount is the difference between market value and assessed value. Orange County Property Appraiser
In Orange county, resale of a home triggers reassessment by the county (higher property value = higher property tax). For homeowners who have enjoyed comfortable property taxes for many years and are hesitant to lose that in the purchase of a new home, this portability benefit may be an opportunity for you. With the portability benefit, you “port” your Save Our Homes benefit from home A to home B (you don’t pay property tax on this amount). This may help take the bite out of buying a new home and the resulting change in your property taxes.
For my own east metro Orlando home, my portability benefit today is $22,000. If I purchase a new home this year, I can “port” this $22,000 property tax exemption to my new home and not pay property tax on this amount.
Also beginning in 2008 is the new Save Our Homes portability benefit. The portability benefit transfers the dollar benefit of the homestead property assessment limitation known as the “Save Our Homes benefit” from a prior homestead to a subsequent homestead. The portable amount is the difference between market value and assessed value. Orange County Property Appraiser
In Orange county, resale of a home triggers reassessment by the county (higher property value = higher property tax). For homeowners who have enjoyed comfortable property taxes for many years and are hesitant to lose that in the purchase of a new home, this portability benefit may be an opportunity for you. With the portability benefit, you “port” your Save Our Homes benefit from home A to home B (you don’t pay property tax on this amount). This may help take the bite out of buying a new home and the resulting change in your property taxes.
For my own east metro Orlando home, my portability benefit today is $22,000. If I purchase a new home this year, I can “port” this $22,000 property tax exemption to my new home and not pay property tax on this amount.
Jul 9, 2008
Amendment 5: Potential 25% Property Tax Reduction
A major item of interest for east metro Orlando homeowners: on your Nov 2008 Presidential Election ballot, watch for Amendment 5 (a new tax cut proposal). If passed, this amendment would result in reduced property tax bills on average of 25% to 29% in Orange county.
If approved by 60% of Florida voters, Amendment 5 will eliminate by 2011 a portion of the public school funding lawmakers currently compel school districts to impose to qualify for state aid called the Required Local Effort (RLE). In addition, the proposal places a 5% cap on the annual assessment increases for all non-homestead properties such as businesses, second homes and rental property.
In turn, the state would be required to replace the lost tax revenue. Current proposals include a one-cent increase in the sales tax, eliminate some of the current sales tax exemptions, impose a new service tax and/or cut state spending.
Orange Co Property Appraiser
Vote Smart Florida
If approved by 60% of Florida voters, Amendment 5 will eliminate by 2011 a portion of the public school funding lawmakers currently compel school districts to impose to qualify for state aid called the Required Local Effort (RLE). In addition, the proposal places a 5% cap on the annual assessment increases for all non-homestead properties such as businesses, second homes and rental property.
In turn, the state would be required to replace the lost tax revenue. Current proposals include a one-cent increase in the sales tax, eliminate some of the current sales tax exemptions, impose a new service tax and/or cut state spending.
Orange Co Property Appraiser
Vote Smart Florida
Jul 7, 2008
My Safe Florida Home Program
The My Safe Florida Home Program is helpful for any owner of a single family home in east metro Orlando. You may have heard your co-workers talk about this or even the little radio spots…free wind inspections of your home conducted by the state, which may result in cost savings on your homeowner's insurance.
I applied online in mid-May. I was approved within about a week. The state-certified wind inspector was at my home the next day. Upon completion of his inspection, he handed me a receipt for the inspection, which I emailed to my insurance agent. My insurance agent sent a field person to my home to take exterior photos about three weeks later. I am still awaiting the final results, but I am hoping to receive some real cost savings on my homeowner’s insurance. I’ll share more once I hear back from my insurance agent.
If you are an owner of a single family home, take five minutes and check this out for yourself:
- go to http://www.myflorida.com/
- click on My Safe Florida Home icon at top of page, center
- click on I Want To Apply For A Wind Inspection icon at middle of page, center
I applied online in mid-May. I was approved within about a week. The state-certified wind inspector was at my home the next day. Upon completion of his inspection, he handed me a receipt for the inspection, which I emailed to my insurance agent. My insurance agent sent a field person to my home to take exterior photos about three weeks later. I am still awaiting the final results, but I am hoping to receive some real cost savings on my homeowner’s insurance. I’ll share more once I hear back from my insurance agent.
If you are an owner of a single family home, take five minutes and check this out for yourself:
- go to http://www.myflorida.com/
- click on My Safe Florida Home icon at top of page, center
- click on I Want To Apply For A Wind Inspection icon at middle of page, center
Jul 2, 2008
Do You Really Want to Sell?
You have two homes for sale in the same neighborhood just ten doors down from each other. The homes are identical – same square footage, age, beds, baths, garage and lot size. The homes are priced $15,000 apart.
Which home would a buyer choose? “The cheaper one” most would say. Not so fast. In reality, the average buyer will choose the home that is presented the best, though not necessarily priced the best.
123 Maple St $345,000 The buyer arrives for a scheduled showing with their agent. The homeowner is not home for the showing, which allows the buyer to relax, enjoy and spend as much time as they like to explore the home and ask their agent questions.
From the entry foyer, the buyer sees a home filled with natural light and simply arranged furniture allowing for easy flow throughout the home. From the starting gate, the buyer sees many attractive areas to explore as they eagerly soak in the view…where to start?! The buyer can’t wait to see more…
Entering the open door to the master suite, the buyer is greeted with a gorgeous, classic master suite. The window treatments are wide open to allow natural light to soak in. The bedroom furniture is just perfectly sized for the space and is simply arranged to allow for plenty of free movement. Art and décor is lovingly placed just right. The master bath is sparkling clean, light and bright. The walk-in master closet is organized with easy access to everything inside and is easy to move around in. “Wow, this bedroom would be perfect for us, honey…”
Entering the living room, the buyer finds a contemporary living room set in a pleasing arrangement allowing for good flow, good conversation and good movie watching. Another light-filled, spacious room to enjoy, the buyer takes a seat – him on the loveseat, her on the club chair. The couple stays several minutes just chatting and looking wide-eyed around the room. She loves the easy, spacious movement throughout the living room and the natural light pouring in from the French doors.
The couple steps in to the modern, contemporary kitchen. Like the master bath, the kitchen is sparkling clean, light and bright. There is little to nothing on the kitchen counters, which makes it easy for the couple to envision preparing meals for their family in the home. The stainless steel appliances look like new they are so clean. She peeks inside the cabinets and fridge out of curiosity and finds them to be organized and clean as a whistle.
Entering the open doors to the secondary bedrooms, the couple finds a child’s bedroom and an office. Both spaces are filled with natural light and have easy flow in and around the room. Classic décor accents both rooms. He wants to recreate the look and spaciousness of the office; she thinks the child’s bedroom would be ideal for their new baby on the way.
456 Maple St $330,000 The buyer arrives for a scheduled showing with their agent. The homeowner is in the driveway washing his boat, the in-laws are inside watching a movie and the homeowner’s small child just went down for a nap.
From the entry foyer, the buyer is greeted with the in-laws watching an action flick on an enormous flat screen tv. A German Shepard leaps off the couch and bounds to the front door. The buyer stumbles over the dog, shoes, bags and clothing strewn about the entry foyer. There is a card table near the front door teetering under piles of bills, junk mail and dog toys. “Oh, hi there, folks…ah, sorry to bother you – we just want to take a quick look…”
The door to the master suite is shut…“Emily just went down for her nap” says the in-laws…“We’ll bring you in, but be very quiet”. The buyer steps in with the in-laws for just a moment to take a quick glance at the room. The master bedroom is completely dark; every window treatment is pulled tightly shut for the napping child. There is a mattress lying on the floor in front of the French doors covered in tousled sheets and blankets. The armoire is wide open, spilling with clothes and DVDs. There is a desk with an old computer shoved next to the window. The owner has five paint samples painted on the wall because his wife is deciding what looks best. The master bath looks like a public restroom in cleanliness; the buyer doesn’t step a foot inside. The walk-in master closest is inaccessible, overflowing with clothing, linen and piles of laundry.
Entering the darkened living room, the buyer finds six in-laws sprawled out over the furniture enjoying pizza and pop while engrossed in their action flick. The buyer immediately continues on to kitchen without stopping.
The couple steps in to the kitchen. Like the master bath, the kitchen is a dump. The house is only five years old, but the kitchen looks like a war zone. Every inch of counter space is covered in clutter, laundry, dirty dishes and piles of mail. The kitchen sink is chocked full of dirty dishes. The stainless steel appliances look well beyond their actual five years thanks to grime, stickers and magnets. The couple exits the kitchen as quickly as they arrived.
The couple ends their showing after just a few minutes in the home without seeing the entire home. “Honey, I’ve seen enough…do these people really want to sell?”
The Results The buyer scheduled a second showing of 123 Maple for during the week. By the next weekend, the buyer writes a full price offer of $345,000 and closes on the home in 40 days.
Five months and five showings later, 456 Maple drops their listing price from $330,000 to $310,000.
Moral of this story: how a seller presents their home is as critical as pricing right.
Which home would a buyer choose? “The cheaper one” most would say. Not so fast. In reality, the average buyer will choose the home that is presented the best, though not necessarily priced the best.
123 Maple St $345,000 The buyer arrives for a scheduled showing with their agent. The homeowner is not home for the showing, which allows the buyer to relax, enjoy and spend as much time as they like to explore the home and ask their agent questions.
From the entry foyer, the buyer sees a home filled with natural light and simply arranged furniture allowing for easy flow throughout the home. From the starting gate, the buyer sees many attractive areas to explore as they eagerly soak in the view…where to start?! The buyer can’t wait to see more…
Entering the open door to the master suite, the buyer is greeted with a gorgeous, classic master suite. The window treatments are wide open to allow natural light to soak in. The bedroom furniture is just perfectly sized for the space and is simply arranged to allow for plenty of free movement. Art and décor is lovingly placed just right. The master bath is sparkling clean, light and bright. The walk-in master closet is organized with easy access to everything inside and is easy to move around in. “Wow, this bedroom would be perfect for us, honey…”
Entering the living room, the buyer finds a contemporary living room set in a pleasing arrangement allowing for good flow, good conversation and good movie watching. Another light-filled, spacious room to enjoy, the buyer takes a seat – him on the loveseat, her on the club chair. The couple stays several minutes just chatting and looking wide-eyed around the room. She loves the easy, spacious movement throughout the living room and the natural light pouring in from the French doors.
The couple steps in to the modern, contemporary kitchen. Like the master bath, the kitchen is sparkling clean, light and bright. There is little to nothing on the kitchen counters, which makes it easy for the couple to envision preparing meals for their family in the home. The stainless steel appliances look like new they are so clean. She peeks inside the cabinets and fridge out of curiosity and finds them to be organized and clean as a whistle.
Entering the open doors to the secondary bedrooms, the couple finds a child’s bedroom and an office. Both spaces are filled with natural light and have easy flow in and around the room. Classic décor accents both rooms. He wants to recreate the look and spaciousness of the office; she thinks the child’s bedroom would be ideal for their new baby on the way.
456 Maple St $330,000 The buyer arrives for a scheduled showing with their agent. The homeowner is in the driveway washing his boat, the in-laws are inside watching a movie and the homeowner’s small child just went down for a nap.
From the entry foyer, the buyer is greeted with the in-laws watching an action flick on an enormous flat screen tv. A German Shepard leaps off the couch and bounds to the front door. The buyer stumbles over the dog, shoes, bags and clothing strewn about the entry foyer. There is a card table near the front door teetering under piles of bills, junk mail and dog toys. “Oh, hi there, folks…ah, sorry to bother you – we just want to take a quick look…”
The door to the master suite is shut…“Emily just went down for her nap” says the in-laws…“We’ll bring you in, but be very quiet”. The buyer steps in with the in-laws for just a moment to take a quick glance at the room. The master bedroom is completely dark; every window treatment is pulled tightly shut for the napping child. There is a mattress lying on the floor in front of the French doors covered in tousled sheets and blankets. The armoire is wide open, spilling with clothes and DVDs. There is a desk with an old computer shoved next to the window. The owner has five paint samples painted on the wall because his wife is deciding what looks best. The master bath looks like a public restroom in cleanliness; the buyer doesn’t step a foot inside. The walk-in master closest is inaccessible, overflowing with clothing, linen and piles of laundry.
Entering the darkened living room, the buyer finds six in-laws sprawled out over the furniture enjoying pizza and pop while engrossed in their action flick. The buyer immediately continues on to kitchen without stopping.
The couple steps in to the kitchen. Like the master bath, the kitchen is a dump. The house is only five years old, but the kitchen looks like a war zone. Every inch of counter space is covered in clutter, laundry, dirty dishes and piles of mail. The kitchen sink is chocked full of dirty dishes. The stainless steel appliances look well beyond their actual five years thanks to grime, stickers and magnets. The couple exits the kitchen as quickly as they arrived.
The couple ends their showing after just a few minutes in the home without seeing the entire home. “Honey, I’ve seen enough…do these people really want to sell?”
The Results The buyer scheduled a second showing of 123 Maple for during the week. By the next weekend, the buyer writes a full price offer of $345,000 and closes on the home in 40 days.
Five months and five showings later, 456 Maple drops their listing price from $330,000 to $310,000.
Moral of this story: how a seller presents their home is as critical as pricing right.
Jun 30, 2008
The Strength of a Straight Seller
The best home values today can be found in the free and open resale market from “straight sellers” who have equity in their homes and are selling by choice. I use the term “straight seller” for a seller who is selling by choice (not motivated by a short sale/foreclosure). Straight sellers are financially stable in their property; maintain their home inside and out; and are 100% responsible and timely for their financial obligations to their lender, property tax/insurance and HOA.
With the majority of active listings in Multiple Listing Service (MLS) for east metro Orlando being short sales / foreclosures / bank owned, the straight seller has been slowing fading in to the background and are easily overlooked by buyers. Why? This is due to the misconception that the best home values today are short sales / foreclosures / bank owned.
Due to popular mass media, there is the perception of short sales / foreclosures / bank owned being the only place a buyer can find “a good deal”. But remember, no seller - private, short sale, foreclosure or bank - is going to give a property away in any market. So really what is “a good deal”? A good deal boils down to “a good home for a good price”.
When a buyer chooses a home, the purchase price is the first consideration; however, a strong second is the condition of the home. 95% of buyers want a home that is “move in ready”. Buyers do not have the interest, money, time or energy to buy a home, move in and then complete one repair after another. Buyers want to buy their home, move in and enjoy and relax…we all have enough on our plates with our jobs and families.
Straight sellers have the most desired product - a well maintained, cared for, lived in home, which positions them for a timely sale. Straight sellers are selling by choice and are not pressured to sell due to financial dire straights.
Most Desired Product A straight seller offers a home that is well maintained, cared for and lived in. A leaky kitchen faucet is repaired; the grass is mowed; an ant trail along the baseboards is eliminated; ripped window screens are replaced. On the other hand, it is commonplace for short sales to lose the time, money and attention of the seller. Owners or tenants in various stages of packing and moving out; basic home repair and yard maintenance not attended to due to financial limitations.
It is commonplace for foreclosure homes to be intentionally damaged or neglected by the owners who lost their home to foreclosure. Many foreclosure/bank owned homes are long vacant with no maintenance for months and months. Far from move in ready, the average buyer is not prepared to buy this kind of home.
Timely A straight seller will respond to an offer within a few days max. On the other hand, a short sale can take weeks or months to receive a response to an offer because the seller’s lender approves an offer, not the seller. It is a rare buyer who will wait weeks or months for a response to an offer.
For an offer on a bank owned property, a buyer can expect a delay of ten days to three weeks due to numerous addendums required by the bank and dealing with a third party administrator who manages the inventory of bank owned homes for the bank.
A straight seller is financially stable in their property with no financial dilemmas weighing down their ability to sell in a timely manner such as missed mortgage payments, property liens, delinquent property taxes or delinquent HOA dues. These are all areas of major importance in the transfer of property and have been known to derail or delay a closing.
With the majority of active listings in Multiple Listing Service (MLS) for east metro Orlando being short sales / foreclosures / bank owned, the straight seller has been slowing fading in to the background and are easily overlooked by buyers. Why? This is due to the misconception that the best home values today are short sales / foreclosures / bank owned.
Due to popular mass media, there is the perception of short sales / foreclosures / bank owned being the only place a buyer can find “a good deal”. But remember, no seller - private, short sale, foreclosure or bank - is going to give a property away in any market. So really what is “a good deal”? A good deal boils down to “a good home for a good price”.
When a buyer chooses a home, the purchase price is the first consideration; however, a strong second is the condition of the home. 95% of buyers want a home that is “move in ready”. Buyers do not have the interest, money, time or energy to buy a home, move in and then complete one repair after another. Buyers want to buy their home, move in and enjoy and relax…we all have enough on our plates with our jobs and families.
Straight sellers have the most desired product - a well maintained, cared for, lived in home, which positions them for a timely sale. Straight sellers are selling by choice and are not pressured to sell due to financial dire straights.
Most Desired Product A straight seller offers a home that is well maintained, cared for and lived in. A leaky kitchen faucet is repaired; the grass is mowed; an ant trail along the baseboards is eliminated; ripped window screens are replaced. On the other hand, it is commonplace for short sales to lose the time, money and attention of the seller. Owners or tenants in various stages of packing and moving out; basic home repair and yard maintenance not attended to due to financial limitations.
It is commonplace for foreclosure homes to be intentionally damaged or neglected by the owners who lost their home to foreclosure. Many foreclosure/bank owned homes are long vacant with no maintenance for months and months. Far from move in ready, the average buyer is not prepared to buy this kind of home.
Timely A straight seller will respond to an offer within a few days max. On the other hand, a short sale can take weeks or months to receive a response to an offer because the seller’s lender approves an offer, not the seller. It is a rare buyer who will wait weeks or months for a response to an offer.
For an offer on a bank owned property, a buyer can expect a delay of ten days to three weeks due to numerous addendums required by the bank and dealing with a third party administrator who manages the inventory of bank owned homes for the bank.
A straight seller is financially stable in their property with no financial dilemmas weighing down their ability to sell in a timely manner such as missed mortgage payments, property liens, delinquent property taxes or delinquent HOA dues. These are all areas of major importance in the transfer of property and have been known to derail or delay a closing.
Moral of this story: straight sellers are good deals - a good home for a good price.
Jun 23, 2008
Foreclosures To Surge in Spring Isle
Spring Isle is the one neighborhood along the Avalon strip that catches my eye the most. Something is working in this east metro Orlando neighborhood. I like the fresh, crisp look of the community – the homes, common area and recreation facilities. I attribute this to effective HOA management. Now, no one is a fan of HOAs, but this neighborhood truly stands out compared to the numerous neighboring communities up and down the Avalon strip. Spring Isle actually enforces common sense rules/regs such as no overnight street parking and no commercial signage. These things make a world of difference to the image of a community and for Spring Isle, it works.
Though still a neighborhood with active construction, the majority of Spring Isle came of age during the Orlando housing boom starting in 2005. Many buyers at that time (owner-occupied as well as investors) bought with easy-to-qualify financing and are now heading down the path to foreclosure:
- For active listings in the Multiple Listing Service (MLS), 50% are short sales or bank owned (8 of 14 single family homes and 7 of 16 townhomes). active
- For pending listings in MLS, 60% are short sales or bank owned (3 of 7 single family homes and 3 of 3 townhomes). These sales are anticipated to close Jun/Jul. pending
For a community of this size (567 homes as of this writing), there were minimal sales over the past 90 days - just six sales in MLS. Four of these sales were builder sales, plus two other single family home sales were short sales or bank owned. sold
A couple things are brewing here – overpriced homes and an avalanche of new foreclosures about to occur in Spring Isle.
Overpriced Homes For active listings as of today, 50% are listed at prices that just don’t make sense for the market. These homes are overpriced, can’t be getting any showings and will not sell. It appears that these listing prices are based on the seller’s purchase price, not priced according to market. These overpriced homes will remain on the market for many more months to come and will require substantial price reductions to even be considered for purchase by an informed buyer. Regardless of the seller’s purchase price, the home is only “worth what it’s worth”.
Avalanche of New Foreclosures Numerous Spring Isle homeowners who bought at the peak starting in 2005 and now need/want to sell, but are unable to make a profit (or even get their money out) are seeking “short sale” approval from their lender. In fact, 50% of active listings today are short sales. Remember, it is the lender who approves or denies a short sale, not the homeowner. Homeowners who are denied short sale approval by their lender will ultimately be foreclosed on. What this means is more and more Spring Isle homes on the market that are bank owned, not privately owned. And no one has more incentive to negotiate and sell low/sell now than a bank. Banks don’t want to own real estate – they are not in business for that purpose.
Curious about homes that didn’t sell for one reason or another? expired
Jun 18, 2008
Why Isn’t Bridge Water Selling?
As an admirer of the finest neighborhoods surrounding me in east metro Orlando, I routinely watch the neighborhoods that I love the most. This handful of neighborhoods all have an undefinable quality that makes them stand apart from the rest. Bridge Water is one of those neighborhoods.
However beautiful Bridge Water is, there is one thing nagging me: why is this premier east metro Orlando neighborhood not selling? In the past 90 days, there has been one sale in the Multiple Listing Service (MLS). The one sale was a “short sale”. sold
Why the lack of sales activity in this neighborhood compared to other neighborhoods? Simple…overpriced homes don’t sell.
Start with a gorgeous, established neighborhood full of appealing family homes in a primo location central to major employers and educational centers. Add easy on/off, immediate access to 408, a major Orlando artery. Sprinkle in enjoyable community amenities including two community pools, fitness center, playground, basketball court and gazebo. Finally, garnish with a quick four-mile drive “thru the back door” to Waterford Lakes Town Center, east metro Orlando’s premier destination shopping locale. Top it all off with a dash of A-rated schools (elementary and middle). This is Bridge Water – an ideal family community.
For as challenging as the real estate market has become, people continue to buy homes. Why? People will always need a place to live. Period. That fact will never fade in any market. East metro Orlando homes are still moving, still changing hands, but not in Bridge Water.
With just one Bridge Water sale taking place in the past 90 days (a “short sale”) for such a quality neighborhood, only one explanation makes sense – overpriced homes. This neighborhood’s overpriced homes may be tied to the inflated home values of 2005/2006. Oh, the joy of 2005/2006 home appreciation many of us experienced…out of this universe…and simply effortless! But recall what drove the home value boom of 2005/2006 - minimal home inventory (nothing for buyers to choose from) and out of sight financing (anyone with a pulse could buy).
Fast forward to summer 2008, we now have an over abundance of inventory (an overwhelming number of homes for buyers to choose from) and strong, competitive financing (only for buyers with very good credit and a good, stable job).
There is no doubt we can expect a swift increase in Bridge Water sales with some significant price reductions to current inventory. There are 12 active listings today in MLS with a minority of the homes being priced right, priced according to today’s market. active For the few Bridge Water homes priced right today, I anticipate a successful closed sale for them this summer. For the rest of them, the reality is many more weeks and months on the market along with price reduction, price reduction, price reduction - no seller wants this, but reality is reality.
However, a significant trend is brewing in Bridge Water. There are six pending listings today in MLS with anticipated closing dates of Jun/Jul. This is a move in the right direction for the neighborhood and is one that I anticipate will spark even more homes to change hands this summer because the most recent sales provide the best comparables and those comparables provide the strongest supported evidence of homes values to sellers and buyers. pending
Curious about homes that didn’t sell for one reason or another? expired
Moral of this story: overpriced homes don’t sell.
However beautiful Bridge Water is, there is one thing nagging me: why is this premier east metro Orlando neighborhood not selling? In the past 90 days, there has been one sale in the Multiple Listing Service (MLS). The one sale was a “short sale”. sold
Why the lack of sales activity in this neighborhood compared to other neighborhoods? Simple…overpriced homes don’t sell.
Start with a gorgeous, established neighborhood full of appealing family homes in a primo location central to major employers and educational centers. Add easy on/off, immediate access to 408, a major Orlando artery. Sprinkle in enjoyable community amenities including two community pools, fitness center, playground, basketball court and gazebo. Finally, garnish with a quick four-mile drive “thru the back door” to Waterford Lakes Town Center, east metro Orlando’s premier destination shopping locale. Top it all off with a dash of A-rated schools (elementary and middle). This is Bridge Water – an ideal family community.
For as challenging as the real estate market has become, people continue to buy homes. Why? People will always need a place to live. Period. That fact will never fade in any market. East metro Orlando homes are still moving, still changing hands, but not in Bridge Water.
With just one Bridge Water sale taking place in the past 90 days (a “short sale”) for such a quality neighborhood, only one explanation makes sense – overpriced homes. This neighborhood’s overpriced homes may be tied to the inflated home values of 2005/2006. Oh, the joy of 2005/2006 home appreciation many of us experienced…out of this universe…and simply effortless! But recall what drove the home value boom of 2005/2006 - minimal home inventory (nothing for buyers to choose from) and out of sight financing (anyone with a pulse could buy).
Fast forward to summer 2008, we now have an over abundance of inventory (an overwhelming number of homes for buyers to choose from) and strong, competitive financing (only for buyers with very good credit and a good, stable job).
There is no doubt we can expect a swift increase in Bridge Water sales with some significant price reductions to current inventory. There are 12 active listings today in MLS with a minority of the homes being priced right, priced according to today’s market. active For the few Bridge Water homes priced right today, I anticipate a successful closed sale for them this summer. For the rest of them, the reality is many more weeks and months on the market along with price reduction, price reduction, price reduction - no seller wants this, but reality is reality.
However, a significant trend is brewing in Bridge Water. There are six pending listings today in MLS with anticipated closing dates of Jun/Jul. This is a move in the right direction for the neighborhood and is one that I anticipate will spark even more homes to change hands this summer because the most recent sales provide the best comparables and those comparables provide the strongest supported evidence of homes values to sellers and buyers. pending
Curious about homes that didn’t sell for one reason or another? expired
Moral of this story: overpriced homes don’t sell.
Jun 16, 2008
University Estates Is Hot
There are a handful of premier east metro Orlando neighborhoods that I simply love. University Estates is one of them. When I drive thru these certain neighborhoods, I say aloud to no one in particular “I would live here in a heartbeat” (I live in east metro Orlando, though not University Estates). I want to share with you why I consider this neighborhood to be a stand out.
What I find intriguing about University Estates is their great sales over the past 90 days, which is atypical for east metro Orlando. Sales are hot and houses are moving! And these sales were not “short sales”, though there was one bank-owned. These were arm’s length transactions with seller and buyer being traditionally motivated. Though not a large neighborhood by any means (just 374 single family homes), this neighborhood is churning out the sales.
Why such sales activity in this neighborhood compared to other neighborhoods? Simple…good homes priced right sell.
Good Homes University Estates is simply a gem. It is a lush, developed, more mature neighborhood. The location is top notch - nestled between UCF and the city of Oviedo. There is easy access to Alafaya, 408 and 417. There is convenient shopping nearby – basic shopping (grocery, drug store, dry cleaning) plus destination shopping (malls, large shopping centers) as well as numerous professional and medical offices. The elementary and middle schools are both A-rated.
Priced Right Here are actual sales from the Multiple Listing Service (MLS) for the past 90 days (list is sorted by ascending sold price): sold
The majority of these homes (9 of 12) sold between $267,000 and $305,000 at an average of 93% of list price – these were not short sales and only one was bank-owned. These closed sales are a strong example of good homes being priced right, priced according to market.
Before a homeowner can make the decision to sell, the first and last question is all about the numbers. How much money are we going to make? With that, I submit to potential University Estates sellers: price your home correctly from the start and price according to market. Simple advice, but I believe this will be the wisest decision you will ultimately make in the sale of your home. The buyer of your home is coming armed and prepared with facts, data and a good agent - and they know what your competition has sold for.
Yes, all of our east metro Orlando homes were worth $50,000, $75,000 and $100,000+ more two and three years ago, but that’s history. You will not sell your home today for what it was worth at its peak in 2005/2006. Fact. Unfortunately as a realtor, I still regularly see homes listed at 2005/2006 prices…and it’s no surprise that the homes get zero showings and ultimately, languish on the market and never sell.
Though closed sales provide the strongest supported evidence of home values, sellers should also consider the competition in active, pending and expired status: active/pending/expired
Moral of this story: good homes priced right sell.
What I find intriguing about University Estates is their great sales over the past 90 days, which is atypical for east metro Orlando. Sales are hot and houses are moving! And these sales were not “short sales”, though there was one bank-owned. These were arm’s length transactions with seller and buyer being traditionally motivated. Though not a large neighborhood by any means (just 374 single family homes), this neighborhood is churning out the sales.
Why such sales activity in this neighborhood compared to other neighborhoods? Simple…good homes priced right sell.
Good Homes University Estates is simply a gem. It is a lush, developed, more mature neighborhood. The location is top notch - nestled between UCF and the city of Oviedo. There is easy access to Alafaya, 408 and 417. There is convenient shopping nearby – basic shopping (grocery, drug store, dry cleaning) plus destination shopping (malls, large shopping centers) as well as numerous professional and medical offices. The elementary and middle schools are both A-rated.
Priced Right Here are actual sales from the Multiple Listing Service (MLS) for the past 90 days (list is sorted by ascending sold price): sold
The majority of these homes (9 of 12) sold between $267,000 and $305,000 at an average of 93% of list price – these were not short sales and only one was bank-owned. These closed sales are a strong example of good homes being priced right, priced according to market.
Before a homeowner can make the decision to sell, the first and last question is all about the numbers. How much money are we going to make? With that, I submit to potential University Estates sellers: price your home correctly from the start and price according to market. Simple advice, but I believe this will be the wisest decision you will ultimately make in the sale of your home. The buyer of your home is coming armed and prepared with facts, data and a good agent - and they know what your competition has sold for.
Yes, all of our east metro Orlando homes were worth $50,000, $75,000 and $100,000+ more two and three years ago, but that’s history. You will not sell your home today for what it was worth at its peak in 2005/2006. Fact. Unfortunately as a realtor, I still regularly see homes listed at 2005/2006 prices…and it’s no surprise that the homes get zero showings and ultimately, languish on the market and never sell.
Though closed sales provide the strongest supported evidence of home values, sellers should also consider the competition in active, pending and expired status: active/pending/expired
Moral of this story: good homes priced right sell.
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