Some intrepid homeowners are intentionally taking a loss on their current house - and writing a big check to retire their old mortgage - in order to buy twice the home for not much more money. Others, eschewing conventional personal-finance advice, are even opting for 'cash-in' refinancings, paying thousands of dollars out of pocket to settle old loans - and then taking out new mortgages with lower payments, shorter durations or both.
Read entire story at wsj.com.
Jul 29, 2010
Jul 26, 2010
Jul 22, 2010
View From the Trenches: Single Family Homes
In the market for a single family home in east Orlando? Here is sales activity for the past 30 days, a likely indicator of what you will experience in your house hunt.
East Orlando has closed 138 single family home sales and 72% of these were distressed sales (short sale or bank-owned). Average sale price was $202 for a normal sale & $151 for a distressed sale.
21% were cash deals. A very significant detail – no buyer with a mortgage can compete with a cash buyer. An all cash offer trumps even your higher priced offer (with financing). If you’re financing your home purchase (and most of us do), expect your buying competition may likely be paying all cash.
Sellers got 98% of their asking price. Buyers who intend to gamble with low ball offers like in spring 2009 are wasting everyone’s time. Homes are priced right today & are selling. The strong buyer’s market has become a thing of the past with fresh, hot buying competition for affordable homes in move-in ready condition. These buyers are out bidding each other for these homes & commonly drive the selling price above list.
Top selling communities: Waterford Lakes (19), Avalon Park (16) and Waterford Trails (9). I’m loving seeing old home inventory getting sold/closed & seeing new families move in to these communities every day. After nearly of year of this hot activity, the surplus of distressed sales are going to be gone, gone, gone before we know it.
Normal sales went under contract after 64 days on average (plus another 42 days to close on average). Distressed sales went under contract after 93 days on average (plus another 83 days to close on average). Buyers considering taking on a short sale, do the math (93 days + 83 days = just under six mos). You’re needing & wanting a home yesterday – can you wait six months to move in to your new home?
East Orlando has closed 138 single family home sales and 72% of these were distressed sales (short sale or bank-owned). Average sale price was $202 for a normal sale & $151 for a distressed sale.
21% were cash deals. A very significant detail – no buyer with a mortgage can compete with a cash buyer. An all cash offer trumps even your higher priced offer (with financing). If you’re financing your home purchase (and most of us do), expect your buying competition may likely be paying all cash.
Sellers got 98% of their asking price. Buyers who intend to gamble with low ball offers like in spring 2009 are wasting everyone’s time. Homes are priced right today & are selling. The strong buyer’s market has become a thing of the past with fresh, hot buying competition for affordable homes in move-in ready condition. These buyers are out bidding each other for these homes & commonly drive the selling price above list.
Top selling communities: Waterford Lakes (19), Avalon Park (16) and Waterford Trails (9). I’m loving seeing old home inventory getting sold/closed & seeing new families move in to these communities every day. After nearly of year of this hot activity, the surplus of distressed sales are going to be gone, gone, gone before we know it.
Normal sales went under contract after 64 days on average (plus another 42 days to close on average). Distressed sales went under contract after 93 days on average (plus another 83 days to close on average). Buyers considering taking on a short sale, do the math (93 days + 83 days = just under six mos). You’re needing & wanting a home yesterday – can you wait six months to move in to your new home?
Jul 16, 2010
What Buyer’s Market?
The buyer’s market in east Orlando is officially over. Buyers can no longer expect their every wish to be granted when buying a home – lowball offers, seller-paid closing costs & seller-paid home repairs are a thing of the past.
The competition for affordable homes in move-in ready condition is so strong, buyers are finding themselves in bidding wars, driving up the sales price over asking & still losing out on their first choice of home. A buyer wanting a move-in ready home at $200,000 & under can expect to write numerous offers due to strong demand & competition particularly from first-time homebuyers.
Affordable homes in move-in ready condition commonly receive multiple offers – four or five offers within 24 hrs of hitting the market is not unheard of. And 1/3 of sales in east Orlando are all cash, something no ‘regular’ buyer (with a mortgage) can compete with.
Distressed sales (short sales or bank-owned) are already at bottom-of-the-barrel prices where there simply is no more room for a buyer to come in and offer less than asking. Homes are selling at 97% of asking price in east Orlando in the past 30 days, so buyers who intend to submit a lowball offer are simply wasting their time in this market.
The competition for affordable homes in move-in ready condition is so strong, buyers are finding themselves in bidding wars, driving up the sales price over asking & still losing out on their first choice of home. A buyer wanting a move-in ready home at $200,000 & under can expect to write numerous offers due to strong demand & competition particularly from first-time homebuyers.
Affordable homes in move-in ready condition commonly receive multiple offers – four or five offers within 24 hrs of hitting the market is not unheard of. And 1/3 of sales in east Orlando are all cash, something no ‘regular’ buyer (with a mortgage) can compete with.
Distressed sales (short sales or bank-owned) are already at bottom-of-the-barrel prices where there simply is no more room for a buyer to come in and offer less than asking. Homes are selling at 97% of asking price in east Orlando in the past 30 days, so buyers who intend to submit a lowball offer are simply wasting their time in this market.
Jul 10, 2010
Energy Credit Deadline
Homeowners have until the end of 2010 to make improvements that qualify for a federal energy-efficiency tax credit including insulation upgrades and purchases of heating and air-conditioning equipment.
Eligible upgrades for a federal tax credit include insulation, windows and doors, roofs, heating, ventilation and air-conditioning systems, water heaters and biomass stoves. The credit is worth 30% of the costs up to a maximum $1,500 total for all improvements.
Read full story at wsj.com
Eligible upgrades for a federal tax credit include insulation, windows and doors, roofs, heating, ventilation and air-conditioning systems, water heaters and biomass stoves. The credit is worth 30% of the costs up to a maximum $1,500 total for all improvements.
Read full story at wsj.com
Jul 5, 2010
Alafaya-Beachline Interchange Petition Scam
About a month ago, a man came into a Vista Lakes office collecting signatures for a petition supporting a connection between the Beachline and Avalon Park.
A week later employees got an e-mail from Lake Mary Jane Alliance in southeast Orlando, a group that informs residents of proposed developments coming into their area, warning people that petitioners hired by Suburban Land Reserve developers were misleading the public saying their signatures would support the Beachline interchange near Alafaya Trail when they were actually petitioning for Innovation, a project that combines International Corporate Park, a plan estimated to bring 10,000 jobs in southeast Orlando with a residential plan for about 6,300 homes near the Econ River called Innovation Way East.
When Innovation developers went before the Orange Co Commission on May 11, they boasted the 17,000 signatures they were able to collect in two weeks in support of their project. After some prodding from commissioners, they added that some of the petitioners were paid $5 per signature.
Read full story at eosun.com
A week later employees got an e-mail from Lake Mary Jane Alliance in southeast Orlando, a group that informs residents of proposed developments coming into their area, warning people that petitioners hired by Suburban Land Reserve developers were misleading the public saying their signatures would support the Beachline interchange near Alafaya Trail when they were actually petitioning for Innovation, a project that combines International Corporate Park, a plan estimated to bring 10,000 jobs in southeast Orlando with a residential plan for about 6,300 homes near the Econ River called Innovation Way East.
When Innovation developers went before the Orange Co Commission on May 11, they boasted the 17,000 signatures they were able to collect in two weeks in support of their project. After some prodding from commissioners, they added that some of the petitioners were paid $5 per signature.
Read full story at eosun.com
Jul 1, 2010
Verifying Borrowers’ Finances
Mortgage brokers and lenders will often caution borrowers against charging up their credit cards or changing jobs before the closing date on a home loan. Now that advice seems especially prudent.
On Jun 1, Fannie Mae, the government-sponsored company that establishes the underwriting standards for most of the nation’s mortgages, started requiring lenders to recheck a borrower’s finances shortly before closing the loan. If a broker or lender finds significant changes, the loan could be delayed, or in some cases, denied.
Read full story at New York Times
On Jun 1, Fannie Mae, the government-sponsored company that establishes the underwriting standards for most of the nation’s mortgages, started requiring lenders to recheck a borrower’s finances shortly before closing the loan. If a broker or lender finds significant changes, the loan could be delayed, or in some cases, denied.
Read full story at New York Times
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