Happy New Year???????? It’s March 6th of 2014 and I have to admit…I’m a wee bit late getting this blog up and rolling again. The holidays flew by in a flurry of activities and closings. Seriously…lots of closings. I’m thrilled that 2014 was a great year in real estate but it also leaves me little time to update the blog and chat with my favorite peeps. So, I’m starting my New Year’s resolution a few days late (well, a few months late) and letting you know that I resolve to keep you updated on Orlando real estate and I resolve to be a better hunter and gatherer of information on all things real estate. I don’t take these things lightly and I LOVE what I do. I will just work on being more communicative with you about selling Florida homes. Cheers my friends.
In today’s real estate world…financing is critical. It is often the difference between deal or no deal. So, how do you make it work? There are a number of factors to consider:
1. Is the buyer’s lender local and reputable?
2. Has the buyer been pre-APPROVED?
3. Is there a significant down payment?
4. Will the house appraise?
Without a yes answer to the above questions, your contract could be in jeopardy. It is always important to work with a lender who properly qualifies prospects, No ambiguous language allowed on that pre-approval letter (look for the “out” clauses”)! Make sure you actually talk to the lender and find out the specifics on the borrower. Is the buyer putting down some funds…money talks in this market and deals are done when the buyer has contributed to the bottom line. Finally, is the home priced right? In today’s market…we don’t want to be a part of the problem. We have to be problem solvers!
Home owners who are still underwater on their mortgage—owing more than what it is currently worth—have emerged as a growing crop of “accidental landlords,” CNBC reports. While home prices are on the rise, about a quarter of all home owners are still underwater, according to some survey estimates.
Some home owners may find they need to relocate for a job, but can’t afford to sell their home yet so they opt to put it up for rent. But jumping into the landlord role isn’t always easy, particularly for novices.
“When the market dropped, many people emerged with a life event prompting their need to move,” Todd Allen, a real estate professional in Northern Virginia, told CNBC. “Fortunately for many in the D.C. metro area with higher incomes and lending guidelines softening a little, individuals and families were able to qualify for the purchase of a second home, but their new landlord status did not necessarily generate positive income—often they incur a loss. Furthermore, many of my own clients have learned many other downfalls in being a landlord.”
The growing number of “accidental landlords” is one of the reasons behind today’s low inventory issues, real estate professionals say. “Usually a buyer is also a seller, making the transaction a wash in terms of inventory, but if the buyer is not a seller, and instead becomes a landlord, inventory takes a negative hit,” CNBC reports.
Source: “Underwater homeowners find they’ve become accidental landlords,” CNBC.com (May 24, 2013)