Archive for the ‘foreclosure in orlando’ Category

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Cash is KING for real estate & other random real estate thoughts.

August 24, 2012

This may be a wild and wooly post but I’m just going to share whatever is on my mind today:

What in the world is going on in real estate in Orlando? I’m glad you asked. It’s a rather unique market right now with super low inventory of homes for sale and still lots and lots of distressed properties on the market. Not as many foreclosures but a lot more short sales.

I am seeing multiple bids on homes that are in move-in condition. I listed and sold a home in ONE day recently that was located in Winter Park and was completely remodeled. We had a bidding war and over 20 showings in two days. Absolute madness. What this tells me is that there are so few homes available that are in pristine condition that people will swarm over the good homes for sale. Note to Sellers: FIX YOUR HOUSE UP and make it shine. It paid off for my Sellers in a BIG way.

I recently had a chance to speak with an appraiser (yes…he actually spoke to me) and he told me that 8 out of 10 homes he appraises are fixed up and renovated. He hasn’t appraised a dumpy house in a long time. It is interesting to note that most people are looking for that type of home. After buying a home with 20% down, there isn’t a whole lot of extra cash leftover to fix up the home. So have your home in beautiful condition and watch the offers come in.

There are still distressed homes for sale and while lenders are putting lipstick on these pigs (i.e. paint and carpet)…they are still often showing signs of neglect. The interesting thing is that people are still bidding high on foreclosed homes. I am not sure what is going on here because who wants to OVERPAY for a home anymore? Have buyers lost their minds? Foreclosures are NOT a “deal” at the moment.

Finally, investors are still out there trying to work creative financing and get all sorts of hinky transactions closed. Flippers are back. I won’t deal with anything that may appear unethical and some of these deals just don’t seem “right” to me. Best to move forward with buyers who are working the deal with integrity. That is not to say that investors are not ethical…I just have not felt comfortable with the ones that have approached me lately.

Finally, CASH is KING. If you want to guarantee your offer will be accepted, I hope you are lucky to have cash. People know that the mortgage process is still dicey with resulting delays as things move through underwriting. If you have CASH…you have a guaranteed deal once you pass the inspection phases.

That’s real estate in a nutshell for Orlando…things are moving and selling but we have precious little homes available for sale. If you want TOP DOLLAR for your house – now is the time. I have not seen prices this good in a long time. Let’s get selling…

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STOP massive sale of foreclosed homes.

December 16, 2011

There is a simple way to address our current housing crisis – the sale of distressed properties could be easily slowed or stopped with ONE SIMPLE STEP. Banks need to write down the loans on homes that are underwater and allow good borrowers to refinance at today’s lower interest rates.

The most distressing things for most homeowners is that their homes are so UNDERVALUED that they will NEVER see a time when their home will be worth what they owe on it. It’s a reality and it is discouraging. Banks can start to turn the economy and housing around by going to people who are not in distress and beginning the process of re-evaluating value and re-negotiating outstanding balances to make home ownership attractive. To ignore this is fact is going to result in increased defaults and more short sales and foreclosures. It’s going to happen!

Recently, Moody’s released the following statement on the sale of foreclosed homes: They found that on average, a foreclosed property will be valued about 18 percent lower than average home prices, and will be subject to an additional sales discount of about 15 percent.

The banking industry is creating the depreciation of home values when they are personally responsible for the sale of homes at 30% less than fair market rate resulting in the downturn in value on surrounding homes. Banks are making a bad situation worse. I am shocked that no one seems to address this issue in the media or in Congress.

Who wins? Investors. Who loses? Everyone else – especially the American public.

If this fact is true then why not reduce the principal balance on underwater loans by 30% thereby rewarding homeowners who choose to stay in their homes and pay their mortgages. Does anyone really think that people are going to pay their loans out of a sense of obligation and responsibility? Seriously? I predict a mass exodus as people figure out that they are better off renting and getting out from a debt they can never actually pay off and for which their home will never be worth.

Let’s get serious about solutions to real estate and the housing crisis. Do I think this is going to happen? Hell, no. We have a government that is ineffective and impotent and a banking industry getting rich on investments. The American public continues to struggle with no one reaching out a helping hand. Is there anyone out there who can make a stand for the people?

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Politics as usual – ugh

October 25, 2010

 

As real estate sales spiral to new lows – we have the election season in full swing. Everybody is right and everybody else is wrong. 

But I hope our newly elected officials wake up and realize that AS THE HOUSING MARKET GOES – SO GOES THE ECONOMY. It’s not just about job stimulus – it IS about fixing housing and it won’t happen overnight. 

Banks needs to reward GOOD borrowers with better rates in an upside down market. Banks need to AGREE to short sales where they will actually MAKE MORE MONEY than going through the lengthy foreclosure process. Someone needs to start thinking about solutions instead of highlighting the problems that seem unsolvable.  

May sanity reign and may we change the course of this country for the good. 

Read the following New York Times article:  http://www.nytimes.com/2010/10/25/business/25short.html?th&emc=th

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What in the world??????? Orlando Real estate remains strange but solid.

July 27, 2008

Rates are climbing. The President is signing and BUYERS are out in droves. Maybe the interest rate increase is a GOOD THING with buyers realizing that they have to get out there and buy a house NOW!  Here are my facts…today I showed homes to three buyers with another two set up for tomorrow. That is a busy weekend my friends and buyers are back in the market.

Every week I think to myself that I cannot be shocked anymore and then another week comes and I am shocked! Things change so rapidly that only serious real estate agents can keep up.

Here are some highlights:

  1. Short sales are STILL A BAD BUY. Banks can NOT seem to make decisions that will save thousands of dollars and help move a property out of foreclosure and into the SOLD category. Everyone is talking about short sales and newspapers and newscaster seem to think this is the panacea everyone looking to stop foreclosure proceedings. Trust me…it isn’t working. There is no “YES” person at the bank. Realtors often are in over their heads on this one and I strongly believe that short sales are a waste of time. Until the banks get SHORT SALE DEPARTMENTS with an actual knowledgeable people in control that can make decisions…don’t bother.
  2. Foreclosures are coming. This is a guarantee. I heard recently that only 20% have come on the market in Central Florida. Sadly, I think this may be the case. This could affect home values for a few years in Central Florida.
  3. FHA loans are BACK. GOOD NEWS HERE. We need these loans to stimulate sales. Bad news, the maximum amount you can borrow in Central Florida/Orlando is only around $350K. No enough for most homes on the market.

We are in a market that changes daily. I don’t say that lightly. One day we have loans, the next day banks are tightening standards. Recently, we had a rate increase yet President Bush is signing legislation to help homeowners in foreclosure crisis. Every day is a new discovery. What does this mean to you? It means that we stay the course, work hard and get your home sold. It remains my number one priority.