With today's real estate inventory maintaining the high levels that saturated the market over a year ago and hovering around 26,000 in the greater Orlando area, many sellers are deciding to toss their hat into the ring and place their prized possession on the rental market.
For some this is a great idea but it is not the ideal situation for everyone. If the property owner is behind on their payments or about to have the bank proceed with the foreclosure process, I don't believe this to be the answer. From the realtor's perspective it is not a good idea to manage a property which is not up to date with the mortgage payments because eventually the bank will expedite matters and place the property with the legal department and foreclosure could possibly put the owner and the management company in a potential legal situation. Once a bank forecloses the tenants are removed. A lease may survive the sale of a property but it does not survive a foreclosure.
Also the owner who is looking to use the equity (if there is any) from the sale of their house to make another purchase wouldn't benefit because there is no immediate outlay of cash to help the owner purchase that other house.
But for the person who has a second house, which is usually vacant, and is considering selling but doesn't want to accept what the market is willing to offer for the property, this is a great strategy. Once the house is leased it will continuously produce a steady stream of income which will offset most of the bills that are associated with owning the property.
Most property management companies offer two types of agreements which should satisfy almost everyone. The first is called a Finder's Fee Agreement. This is the basic agreement which only gives the property management company the authority to lease the property but not the authority to manage the property or collect the rent. All calls, complaints, collections, evictions and repairs are to be handled by the landlord. The management company's only job is to screen and lease the property and then they are finished.
The second type of agreement is property management. Here is where a landlord gets their monies worth without the headache. The property management company is responsible for all aspects starting with the marketing and leasing of the property all the way up the renewal of the lease or if need be the eviction. The landlord doesn't have anything to do with the day to day operations or headaches of managing the property.
There are lots of added incentives or extras that these companies will recommend or do for the landlords such as:
•· Evaluate your property and make recommendations to prepare your property to obtain the optimal rental amounts.
•· Advertise and syndicate your house over a wide variety of websites to obtain the maximum number of inquiries.
•· Show the property by appointment 7 days a week.
•· Receive all inquiries and tenant complaints 24 hours a day, 7 days a week.
•· Screen all applicants over the age of 18, checking for credit scores, felonies, sexual arrests, evictions, job verification and income verification.
•· Video the house, in and out, so if the tenant claims that something was broken prior to the lease all the property manager has to do is go to the video.
•· Rekey all the locks every time there is a change in tenants.
•· Have the lease prepared by an attorney.
•· Arrange for, oversee and inspect all necessary repairs.
•· Timely collection and delivery of rents with a financial statement.
•· Year end accounting documents for tax purposes.
•· Make periodic surveys of the property to check for damage or violations of the lease.
•· Make a recommendation for a home warranty.
•· Tenant guarantee.
So for most of us who aren't aware of today's trends in the market place there is another viable option available to homeowners. Hopefully this will educate and even make property owners more aware that there are other options available to them so everyone isn't trying to sell their house at the same time. This might even lead to lower inventory which is the beginning to the recovery process which is what everybody is waiting for.
Woodland Lakes Preserve is located off of Curry Ford Rd in the east Orlando real estate market. There has been 5 single family houses sold in the 1st quarter of 2008. They sold for prices ranging from $274,000 to $305,000 with an average of $281,908 and ranged in size from 1,941 square feet to 2,795 square feet. They took an average of 104 days before they sold.
There are presently 9 houses that are pending closing. They range in size from 2,035 square feet to 2,822 and the asking prices range from $168,000 to $370,000 with $284,503 being the average. They lasted 80 days before they went into contract. Remember the days to close will go up since they have not closed yet.
There are a total of 34 houses on the market. They range in size from 1,861 square feet to 2,822 square feet with asking prices ranging from $236,900 to $450,000.
Considering the amount of houses sold in the 1st quarter of 2008, the absorbsion rate, (the amount of time it will take to sell all of the houses in a specific area assuming that no other houses are listed in that area) will be 20 months. This is lower than the average of the rest of the Orlando real estate market.
Waterford Lakes is located in the east Orlando real estate market. There have been 18 single family houses sold in the 1st quarter of 2008. They range in price from $218,000 to $331,500 with $265,372 being the average and 9 of them having swimming pools. The square footage ranges from 1,610 to 3,162 and the houses lasted an average of 157 days on the market before they sold.
There are presently 14 houses that are pending closing with an asking price range from $175,000 to $349,900 with $260,077 being the average. These houses range in size from 1,214 to 3,072 square feet with 8 of them having swimming pools. The average time on the market is currently 91 days. Remember these properties have not closed yet so the average time to close will rise.
There are a total of 55 houses on the market ranging in size from 1,013 to 2,986 square feet with asking prices ranging form $169,000 to $450,000. Of these 55 single family dwellings available, 26 are priced $275,000 or less.
Considering the amount of houses sold in the 1st quarter of 2008, the saturation rate, (the amount of time it will take to sell all of the houses in a specific area assuming that no other houses are listed in that area) will be 9 months. This is considerably lower than the average of the rest of the Orlando real estate market.
Vista Lakes is located in the east Orlando real estate market. There have been 11 single family houses sold in the 1st quarter of 2008. They range in price from $219,900 to $568,000 with $365,436 being the average. The square footage ranges from 2,048 to 4,456 and the houses lasted an average of 119 days on the market before they closed.
There are presently 13 houses that are pending closing with an asking price range from $214,700 to $545,000 with $310,522 being the average. These houses range in size from 1,781 to 3,904 square feet. The average time on the market is currently 113 days. Remember these properties have not closed yet so the average time to close will rise.
There are a total of 113 houses on the market ranging in size from 1,399 to 4,551 square feet with asking prices ranging form $185,000 to $659,900. Of these 113 single family dwellings available, 35 are priced at $300,000 or lower.
Considering the amount of houses sold in the 1st quarter of 2008, the saturation rate, (the amount of time it will take to sell all of the houses in a specific area assuming that no other houses are listed in that area) will be 31 months. This is a higher than the average of the rest of the Orlando Real Estate market.
Vizcaya is located in the Dr Phillips section of the Orlando real estate market. There has been 4 single family houses sold in the 1st Quarter of 2008. They sold for prices ranging from $990,000 to $2,550,000 with all 4 having pools and ranged in size from 4,311 square feet to 7,475 square feet. They took an average of 58 days before they sold.
There are presently 4 houses that are pending closing. The asking prices for these houses are $370,000 and $650,000 with $547,225 being the average and they range in size from 2,163 square feet to 3,050 square feet with 2 of them having pools. The houses took an average of 73 days before they sold. Remember the time to close will increase as they are only under contract and have not closed yet.
There are 29 houses on the market. They range in size from 1,974 square feet to 6,541 square feet with asking prices from $449,000 to $2,499,000.
Considering the amount of houses sold in the 1st quarter 2008, the saturation rate, (the amount of time it will take to sell all of the houses in a specific area assuming that no other houses are listed in that area) will be 22 months. This is much average with the rest of the Orlando real estate market.
Turnberry Reserve is located in north east section of the Kissimmee real estate market. There has been 3 single family houses sold in the 1st quarter of 2008. They ranged in price from $185,400 to $224,000 with an average of $202,466 and the sizes of these houses ranged from 1,673 to 2,909 square feet with 1 of them having a pool. They took an average of 90 days to sell.
There are presently 8 houses that are pending closing with an asking price range from $149,900 to $219,900 with $205,325 being the average. These houses range in size from 1,654 to 3,023 square feet. The average time on the market is currently 42 days. Remember these properties have not closed yet so the average time to close will rise.
There are a total of 19 houses on the market ranging in size from 1,654 to 3,897 square feet with asking prices ranging form $189,000 to $325,000. Of these 19 single family dwellings available, 9 are priced under $225,000.
Considering the amount of houses sold in the 1st quarter of 2008, the saturation rate, (the amount of time it will take to sell all of the houses in a specific area assuming that no other houses are listed in that area) would be 19 months which is lower than the average for the rest of the Kissimmee real estate market.
Stoneybrook is located in east Orlando. There have been 13 single family houses sold in the 1st quarter of 2008. They range in price from $212,000 to $600,000 with $353,272 being the average and 7 of them having swimming pools. The square footage ranges from 1,840 to 3,779 and the houses lasted an average of 141 days on the market before they closed.
There are presently 11 houses that are pending closing with an asking price range from $249,900 to $712,500 with $407,782 being the average. These houses range in size from 1,873 to 4,922 square feet with 9 of them having pools. The average time on the market is currently 131 days. Remember these properties have not closed yet so the average time to close will rise.
There are a total of 70 houses on the market ranging in size from 1,614 to 5,122 square feet with asking prices ranging form $229,900 to $1,100,000. Of these 70 single family dwellings available, 33 are priced under $350,000.
Considering the amount of houses sold in the 1st quarter of 2008, the saturation rate, (the amount of time it will take to sell all of the houses in a specific area assuming that no other houses are listed in that area) will be 19 months. This is little bit lower than the rest of the Orlando real estate market.
Stevens Plantation is located near the downtown sector of the St Cloud real estate market. There have been 3 single family houses sold in the 1st quarter of 2008. They range in price from $212,000 to $340,000 with $289,000 being the average. The square footage ranges from 2,356 to 3,364 and the houses lasted an average of 34 days on the market before they closed.
There are presently 7 houses that are pending closing with an asking price range from $224,181 to $299,900 with $255,069 being the average. These houses range in size from 2,064 to 3,402 square feet with 2 of them having pools. The average time on the market is currently 107 days. Remember these properties have not closed yet so the average time to close will rise.
There are a total of 38 houses on the market ranging in size from 2,195 to 4,285 square feet with asking prices ranging form $220,000 to $819,000. Of these 38 single family dwellings available, 20 are priced at $300,000 or lower.
Considering the amount of houses sold in the 1st quarter of 2008, the saturation rate, (the amount of time it will take to sell all of the houses in a specific area assuming that no other houses are listed in that area) will be 38 months. This is higher than the rest of the St CloudReal Estate market.
Downtown St Cloud is located north of Rte 192 going towards the water and the heart of the Orlando real estate market in zip code 34769. There have been a total of 12 single family houses close in the 1st quarter of 2008 ranging in size from 928 to 2,220 square feet with 2 of them having pools. They sold at prices ranging from $97,000 to a high of $225,000 with an average price of $159,208 lasting an average of 119 days on the market.
There are presently 23 houses that are pending closing with asking prices starting at $54,900 and going up to $274,900 and an average asking price of $159,204 with 5 of them having pools. The sizes of these houses range from 741 square feet to 2,327 square feet and have been on the market for an overall average of 147 days.
There are a total of 173 houses on the market ranging in price from $74,900 to $700,000. At the present saturation rate (the amount of time it will take to sell all of the houses on the market in this specific area assuming NO other houses are listed) it will take 58 months to sell the entire inventory. This is higher than the average compared to other Orlando real estate markets.
Southchase is located in the south central sector of the Orlando real estate market. There has been 13 single family houses sold in the 1st quarter of 2008 ranging in price from $175,000 to $280,000 with $223,869 being the average and 7 of them having pools. The square footage ranged in size from 1,196 square feet to 2,513 square feet and they lasted an average of 123 days on the market.
There are presently 16 houses that are pending closing with asking prices ranging from $169,000 to $300,000 and $221,169 being the average. They range in size from 1,011 square feet to 2,842 square feet. They have been on the market for an average of 103 days. Remember these properties have not closed yet so the time to close will rise.
There are a total of 149 houses on the market ranging in size from 1,003 square feet to 3,515 square feet with asking prices ranging from $155,000 to $425,000. Of these 149 single family dwellings available 46 are priced at $225,000 or lower.
Considering the amount of houses sold in 1st quarter of 2008, the saturation rate, (the amount of time it will take to sell all of the houses in a specific area assuming that no other houses are listed in that area) would be 34 months to sell all of the inventory. This is higher than the rest of the Orlando real estate average.
Our intent at the Team Carpentieri Realty Blog is to spread the needed information for informed people to make better decisions so realtors can represent buyers and sellers to the best of their ability. It is geared towards the Orlando real estate market and the surrounding areas.
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
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