Posts Tagged ‘Orlando market conditions’

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Orlando Real Estate Update

September 1, 2011

My Mom always said…if you don’t have something nice to say – don’t say it. So I have been quiet for a while about the condition of the real estate market in Central Florida. I thought I would update you as we enter the final part of 2011.

Things are pretty rough and that is putting it mildly. I know everyone says we should be positive and optimistic and believe me…I am. But the realities are that (a) we have the lowest number of homes available in recent history for sale with so many of them short sales (b) lenders are still making it very difficult to obtain loans and (c) when you do get an offer on a home – appraisers have become the enemy. The low-ball appraisals are causing the cancellation of many contracts.

It’s hard times. In fact, in some areas of Central Florida…I see home prices rolled back to 1980’s price range and can’t believe it. This is the LOWEST price for listed home that I have seen in some time. That says something.

What does this mean to you? If you have CASH and want to buy – there will probably NEVER be a better time to pick up some bargains. Buy now at the LOW point and lease out your properties…it’s a wise move. For those of you who own your home free and clear – HOLD A MORTGAGE. This is a no-brainer. Sell your home with OWNER FINANCING and you will realize a higher return on your property with a 7% mortgage than putting it a volatile stock market. Take a reasonable but good sized down payment and hold the balance on a seven year balloon. You will watch your money and investment grow.

When will things change? No one knows. But I don’t look for things to get better in the immediate future. However, the wise investor or buyer knows that NOW is the time to buy and that’s good news.

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Generational real estate selling and other minsinformation.

April 28, 2011

We live in a time when people want quick answers and quick resolutions to all their questions. How many times a day do you see articles with “Five ways to Happiness” or “Seven steps to selling your home”? Here’s a fact: there aren’t any quick or fast steps to doing anything. It’s just the use of a catch phrase to get your attention. Imagine how great life would be if we could solve things in three easy steps? It just not that simple.

One of the main things I see is that realtors are being misled to believe that their clients are now internet social butterflies and that so much business is done via the web. This is simply not true. While more than 80% may look on the web for a home; the majority of individuals still rely on word-of-mouth or personal relationships to find a realtor to assist them. For instance, a recent fact published by the American Affluence Research Center reflects that only 12.5% of affluent clients even use social media. That’s not very good odds for those seeking to attract the luxury market via the web, through Facebook or other social networking venues.

The other common mistake I see in today’s real estate world is labeling clients. Of course, you know about “boomers” but now we have the newest which is the Millenial generation. The Millenial Generation was born between 1977 and 1998 and has approximately 75 million members. REALTORS are being led to believe that this age group is the next big wave of buyers. Let me assure you – I don’t see this happening. Why? Because I personally have millenials (with college degrees) living under my roof and they can’t find jobs that pay enough to afford a home. Fact: College degrees don’t guarantee a high-paying job thereby making home ownership affordable. I have friends who also have children who graduated college, who are hard-working and driven BUT who are also waiting tables and working part-time at corporations just to get an opportunity for full-time employment. Where do they live? At home with their parents! In addition, many of my friends have not only their grown children living at home but also their parents. These are the people who are helping to support the Millenials. I wish more people would write about that fact.

Millenials and Gen “X” and “Y” are watching the world economy in turmoil and they are scared for their future. I’m not sure they see the value in home ownership and they may just wait it out for a few years and see how the United States government (and lending instituions) respond to our economic crisis.

What is factual? At the end of the day it is still about relationships. Get out from behind your computer and meet people. Stay in touch with friends and former clients. While I personally have a blog, Facebook page and I tweet like a maniac, I do so for fun. I don’t expect business to boom because I do all my social networking. People will buy homes because they need a place to live. But as for me – know any investors or better yet – let’s do lunch?

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Real Estate Problem Solving

March 17, 2009

Market conditions seem to be getting dicey to say the least. What do I see on the streets? Here’s a summary of Orlando real estate sales (from my personal observations):

  1. If you are priced at $200,000 to $250,000 you should get a buyer. Why? Because most loans being written are FHA backed and accessible.
  2. Which brings me to my second point – WE NEED RESPONSIBLE MORTGAGE LENDING TO RESUME. Not really a strange concept but banks appear to be retreating from the real estate battlefield and have gone AWOL. Without loans, you can’t sell houses – it doesn’t take a rocket scientist to figure this one out.
  3. Buyers need to realize current market conditions (buyer’s market) are not going to last FOREVER. If I had a nickel for every time I have heard someone say “I’m waiting for the bottom” then I would be Trump-style rich.
  4. High end market is seeing some backlash with the main focus being on declining home values.
  5. We need to quit giving money to AIG for bonuses to their lame executives and give it to people who want to buy a home. Did I mention that it is ridiculously difficult to get a home loan right now?
  6. Buyers are unreasonable, Sellers are frustrated and REALTORS are trying to hold it all together for the better good of the public. Really!

Will our market improve? Absolutely. When? When the banks and Congress come together to loosen the control on the mortgage loan markets.

 

 

It’s time to quit retreating and advance the cause of home ownership.

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REALTORS – worth their weight in SOLD?

January 29, 2009

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These are great times for real estate agents…it is FINALLY our chance to show what true professionals can accomplish for clients under the most trying circumstances.

The numbers of Orlando REALTORS who are still working (successfully) in our profession continue to diminish hourly. This is not necessarily a bad thing. We are left with the agents who are prepared to move forward utilizing the most innovative tools and relying on outstanding experience to get homes sold.

I am proud to be a part of this group. I feel change and I think it will be good news for all people who want to see real estate rebound. Will it be the craziness of 2005? No. But will it be fair market value and a sense of order and civility. Absolutely.