Having realistic expectations when purchasing a home is so important in today's market.
Over the course of the last year or more, every media outlet across the globe has reported the collapse of the real estate market.
And now, they suggest that there are hundreds of thousands of homes that Buyers can purchase that are in pristine condition, in desirable neighborhoods, with every upgrade possible, for a price that is not only attainable...but negotiable...and, that those homes can be purchased and closed on within a reasonable time period.
As much as I wish that to be true, in Central Florida, that's just not the case. As a full-time professional Real Estate agent who is actively working with a dozen or more buyers at any given time, here's what IS a reality in our marketplace.
YES, there are hundreds of thousands of homes listed for sale.
YES, some of them are in pristine condition (but less than 5%).
YES, even fewer of those that are in pristine condition are located in desirable neighborhoods or sought after school districts.
YES, there are a handful that had every upgrade possible (if those upgrades haven't been removed by the seller or vandals...such as the light fixtures, plumbing fixtures, appliances, counter tops, window treatments, etc)
YES, the listing price in the MLS might be in the range that you qualify for (that is, if that price has been approved by the seller's lender(s) in the case of a short sale) or isn't under valued to create a bidding war (as is the case with some foreclosures).
And YES, you might be able to purchase and close within a reasonable time period...if you rule out non-approved short sales (and even some pre-approved short sales are taking months to close) and foreclosures (as some have "title issues" that need to be resolved before closing").
Once a Buyer determines their price range, where they want to live and what features they expect the home will have, many Buyers are coming to the conclusion that they need to be more realistic with their expectations as they aren't finding that exceptionally priced home with all the bells and whistles in a sought after community that is zoned for great schools...at least not at the significant discount that they thought they would.
Working with a REALTOR who knows the local inventory and can educate Buyers on what they can expect to find within their price range is a huge advantage for Buyers in today's market.
If you are a Buyer who is interested in purchasing a home in Central Florida, specifically in Seminole County, I'd welcome the opportunity to educate you on what you can realistically expect to find in your price range!
If you are considering buying a home in Central Florida that is owned by a government entity such as Fannie Mae or Freddie Mac, you need to be prepared to pay the documentary stamps on the deed as part of your closing costs at the time of settlement.
In a traditional sale, the FAR/BAR contract (both the FAR/BAR8 and the FAR/BAR AS-IS contract) specify that the Seller pay the documentary stamps on the deed unless otherwise noted in an Addendum and agreed upon by both parties.
With that being said, because Fannie Mae and Freddie Mac (otherwise known as the Seller) are not permitted by law to pay this fee, properties that are owned by them WILL have a clause in their required Addendum that states that the Buyer must agree to pay this expense.
In Florida, the cost of Documentary Stamps is 70 cents per $100 of the sales price...which could add $1,400 to the Buyer's closing costs for a home priced at $200,000.
While some Buyers may not mind paying this additional fee, others have a limited amount of cash to apply to their closing costs. To prevent any last minute need to break into the piggy bank, Buyers can always ask the Seller to contribute a flat amount or a percentage of the sales price towards their closing costs. Depending on the offer, the Seller may agree to the contribution, which makes it a "win-win" situation for both parties.
For additional tips on how to structure an offer on a governement or bank-owned property, call or text me at (321) 377-0157 or email me at LaShawn@LaShawnNorden.com
LaShawn Norden | RE/MAX Central Realty | (321) 377-0157
181 Crown Point Circle, Longwood, FL
Carefree condo living in Longwood community overlooking Sabal Point Golf Course. Lovingly cared for & priced to sell!
2BR/2.5BA Condo
offered at $110,000
Year Built
1985
Sq Footage
1,406
Bedrooms
2
Bathrooms
2 full, 1 partial
Floors
2
Parking
1 Car garage
Lot Size
Unspecified
HOA/Maint
$235 per month
DESCRIPTION
Ideal time to buy this well-maintained DUAL Master Suite condo in Longwood/Wekiva area. Maintenance free living includes NEW carpet, NEW paint, NEW roof, NEW A/C, NEWER plumbing (in 2005) AND a oversized screen-enclosed lanai & an upstairs balcony overlooking the Sabal Point Golf Course. Priced to compete by a traditional seller who has lived & loved this property and community for years! Pride of ownership shows and the location can't be beat. Steps from the community pool and minutes to shopping, dining & entertainment options galore!
Over the last year or more, there has been a shift in the real estate market, with the number of homes that are short sales and bank-ownedforeclosures growing by the day. As a matter of fact, in reviewing the number of active homes for sale in Central Florida, I estimate that more than 40% of the inventory that is available for sale is either a foreclosure or a short sale.
With that being said, one of the most notable attractions to foreclosures for Buyers has been the fact that they are often listed at prices that are 20%-40% less than other comparable active listings that are for sale within the same community. Banks and those real estate agents who are representing them have taken this approach to pricing in an attempt to create interest from buyers who will recognize the value, write an aggressive offer and agree to follow the "less than buyer friendly rules" that are required when purchasing.
This trend is certainly noteworthy for Buyers, as it's becoming more obvious each day that the "those who have the gold make the rules" theory is in full force when it comes to buying a bank owned home.
As evidence of how drastic this shift has become, below are a few of the more common "rules" that banks are now requiring Buyers to follow when submitting an offer on their REO (real estate owned) properties:
Provide a pre-approval letter from the selling bank's preferred lender. Although the Buyer may have a pre-approval letter from their own lender, many bank-owned homes (especially those owned by Countrywide) will require that the Buyer get pre-approved by a designated lending representative before the offer is submitted to the bank for review.
Accept the house in as-is, where-is condition. Simply put, the bank will make no repairs to the property, even if they are required by the Buyer's lender or FHA/VA to obtain the loan.
Agree to pay outstanding Homeowner Association fees, without disclosing how much is owed.
Agree to pay for documentary stamps on the deed. In Florida, that fee is .70 per $100 of the sales price. For Buyers purchasing a $200,000 house, those fees will be $1,400.
Agree to have all inspections completed prior to offer submission. This requirement thereby eliminates the "inspection" contingency in the contract.
Agree to pay a per diem charge for each day after the closing date if the property does not close, regardless of why it didn't close.
Agree that the property must be on the market for a minimum number of days before the bank will consider any offers.
Agree to provide their escrow deposit in the form of a cashier's check to the seller's attorney.
Agree that once the Buyer's offer has been verbally approved, that they will then be required to accept additional terms and/or conditions on an Addendum that will follow. Some of these addendums are so completely favorable to the Seller (Bank) that the Buyer might feel as though they are waiving their right to breathe for fear of their offer being rejected.
Regardless of whether you think these rules are "fair" or not, the banks and their agents are not making exceptions. They are what they are and Buyers need to know that the "Golden Rule" as they once knew it, has a whole new meaning today.
If you are considering buying a foreclosure (REO) property in Central Florida, you need to know what's expected.
As a full-time professional REALTOR with experience in foreclosure sales, I'd welcome the opportunity to further educate you on what you should and can expect when buying a home that's owned by a bank. Feel free to call or text me at (321) 377-0157 for a free consultation.
Please join me on Tuesday, March 31st from 5 o'clock until 8 o'clock for a charity event in Windermere's coveted "Chaine du lac" community.
"Chaine du lac" is a enclave of luxurious estates on the banks of Lake Butler in Windermere, Florida and home to those who desire privacy and prestige.
In addition to being able to tour an exceptionally priced custom estate within the community, guests can preview fine art and purchase raffle tickets for a variety of prizes. Music, catered food and a cash bar will also be provided.
The cost of admission is only $10 per person. All proceeds from the event, which is being co-sponored by SunTrust Mortgage & Events ByLisa, will benefit the United Cerebral Palsy organization.
Mark your calendars as this is an event not to be missed!!
Date: March 31, 2009
Time: 5 o'clock until 8 o'clock
Location: 3414 Cocard Court, Windermere, FL 34786. For more information on this property, please view the virtual tour here.
RSVP: to LaShawn Norden, PA, REALTOR, RE/MAX Central Realty by cell/text at (321) 377-0157 or by email at LaShawn@LaShawnNorden.com
LaShawn Norden, PA, REALTOR, Accredited Luxury Homes Specialist, (321) 377-0157
Sears Commercial in Altamonte Springs, Florida will be open to the public for a rare Friends & Family Event this Sunday, March 29, 2009 from 3PM until 9PM.
Sears Commercial sells pretty much anything you would need to outfit a kitchen...and at prices less than retail!
Because this event is "By Invitation Only" you'll need to call Shirley Perrotta at 407-767-6249 to make sure she has you on the guest list.
As a full-time professional REALTOR in Central Florida, I'd like to help you not only find the right home for your needs and budget, but also make sure that you have reputable referrals as well.
Be sure to tell Shirley that I referred you...that way, she'll be certain to keep me on the VIP list so that I can share future events with you!
With that being said, I am personally challenged by the fact that listing agents do not truthfully market the condition of the property in the Multiple Listing Services (MLS).
Don't get me wrong, I'm not asking agents to "hurt" their sellers by revealing less than desireable qualities about a property (like the need for paint or flooring), but I do think that if the ceiling has fallen in, all appliances and light fixtures have been removed, the pool is swampy and/or the property has mold growing on the baseboards and walls, that the listing agent should disclose such when marketing the property...even if they do so in the REALTOR only Remarks section in the MLS.
When working with Buyers, it would certainly be helpful to know BEFORE I show the property that the property will need a tad bit more than just "TLC" or "elbow grease" in order to make it habitable.
If Buyers (and their agents) knew that the house needed thousands in repairs, they would then be able to make an educated decision about whether to see the home...but if that information is not provided in the MLS, the Buyer and their agent unknowingly can walk into a "disaster-like" home that the Buyer would have never even considered had they known the truth upfront.
In addition to disclosing "issues" such as the ones listed above, I would also think that listing agents who are marketing these types of homes would want Buyers to know if the home will require cash to purchase or if it will or won't qualify for FHA or VA financing. Since many more Buyers today are purchasing using a VA or FHA loan, it would be worthwhile to know if the property will meet the loan requirements before choosing to see it.
Lastly, if a property has mold...PLEASE protect yourself, the Buyer and their agent by putting a note on the front door stating so. Many people have sensitivity to mold and this is a liability house of cards ready to come falling down! Should a sign be posted on the door and the Buyer and/or their agent choose to enter anyway, they are assuming the risk...not you.
While I do not see the world through rose colored glasses, I do know that if a duck is a duck, there is no point marketing as a swan!
For your viewing pleasure, I have included a few photos of homes I've shown to unsuspecting Buyers lately because neither they (or I) knew the truth prior to the showing.
The Orlando Regional Realtor Association produces a trade publication for it's members that is often filled with statistics related to the local real estate market. Here are a few that every Central Floridian needs to know about Lake County, Orange County, Osceola County and Seminole County:
Year over Year Decline of Median Sales Price by County~ (January 2008-January 2009)
Osceola County experienced a decline of 35.99%
Orange County experienced a decline of 34.70%
Seminole County experienced a decline of 28.88%
Lake County experienced a decline of 25.93%
First Time Home Buyers
In 2005, only 33% of the purchases were made by first time home buyers
In 2008, 41% of the purchases were made by first time home buyers
Foreclosures by County
With foreclosures on the rise, according to a search of the MLS (link to site is available here), the February 2009 statistics of active properties for sale indicate that:
29.98% of the properties in Osceola County are foreclosures
24.24% of the properties in Orange County are foreclosures
16.52% of the properties in Seminole County are foreclosures
13.00% of the properties in Lake County are foreclosures
Closed Sales for January 2009
54.57% of the 1,050 sales that closed were distressed and bank-owned properties. Sales by County were:
28.80% of the sales in Orange County were distressed or bank-owned
12.88% of the sales in Osceola County were distressed or bank-owned
8.5% of the sales in Lake County were distressed or bank-owned
4.38% of the sales in Seminole County were distressed or bank-owned
Sales of existing homes in Florida rose 27% in December 2008, which the 4th consecutive month of increased sales activity.
Median Sales Prices by County as of January 2009
Lake County ~ $135,000
Orange County ~ $150,000
Osceola County ~ $125,450
Seminole County ~ $165,00
As a full-time Real Estate professional in Central Florida, it's my job to not only know these statistics, but to share them with the Buyers and Sellers that I represent and advocate for. In today's market, it's more important that ever to hire a REALTOR who knows the market and how to best position you for success.
I'd welcome the opportunity to be yours.
For more information on local statistics, including the value of homes in your marketplace, text/call me at (321) 377-0157 or email me at LaShawn@LaShawnNorden.com for an objective & honest evaluation of your buying or selling needs.
In all of Seminole County, Florida, there is nothing that compares to this property!
This one-of-a-kind showplace boasts more 135+ feet of direct frontage on Lake Monroe, which is the 8th largest lake in the Orlando area and is part of the St. Johns River waterway, which has direct access to the Atlantic Ocean.
Outfitted with a private dock and nearly 5,000 SqFt of indoor living/entertaining areas, this 1950's home has been completely remodeled into a contemporary haven.
Unlike any other in the Central Florida marketplace...this renovated estate has perfectly manicured grounds, grand oak trees and blooming azaleas that beckon you inside, where you'll enjoy resort-style living with the finest upgrades.
From the inside out, this impeccably maintained home features panoramic water views through plantation shutter-dressed windows, a spacious and open floor plan and designer appointments throughout. Every inch of the property from the foyer to the pool cabana has been upgraded and maintained to the highest standards.
Outdoor living is just as luxurious. The grounds have been professional landscaped with ambient lighting that showcase the heated pool, cabana with water closet & dressing areas, Summer Kitchen, shuffleboard court, two stately screen-enclosed rooms and privacy wall that promotes intimacy and security.
Opportunities such as these are rarely available. Come discover Florida lakefront luxury living at its finest! Tours of this stately compound, for sale at $1.8M are available to qualified candidates by appointment.
For more photos and information on this fine home, view the virtual tour here.
Regardless of whether you purchase a brand new home from a builder, a re-sale home from a traditional seller, a short sale or a bank-owned property (a foreclosure), one of the most important steps in the buying process is to have the property inspected by a certified, licensed and insured Home/Building Inspector.
While you may elect to hire a licensed roofer, plumber, electrician and HVAC contractor to individually inspect these four main components (considered a Four Point Inspection), there are many certified Home/Building Inspectors who can & do provide a comprehensive inspection of the property by evaluating the below componets & more:
Roof
Plumbing
Electrical
HVAC (Air & Heat)
Water Intrusion
Pool Equipment
Operational status of the appliances
Structural issues
Cosmetic issues
Many properties that are being marketed as short sales or foreclosures are being sold "as-is" with a "right to inspect," which typically means that a Buyer is assuming all of the risk when purchasing the property and that the Seller is not willing to make any repairs or give financial concessions for such repairs...which is all the more reason why a Buyer should know what "issues" the house has and how much money will be needed to correct those "issues."
More importantly, many lenders will not loan money on a property with wood rot or termites, roof leaks, active water intrusion, faulty plumbing or electrical wiring, structural issues, etc. because those properties are considered higher risk (especially if the Buyer is purchasing via a FHA or VA loan program).
With that being said, Buyers should make sure that their Contract for Sale and Purchase includes an "Inspection Contingency"which allows for them to have a specific amount of time to conduct any inspection they want, to secure estimates for any repair that might be needed and to withdraw from the Contract if they are not satisfied with the inspection results or the costs associated rectifying those repairs.
If you are a Buyer who wants to purchase a home in Seminole or Orange County, Florida and would like more information on how a "Inspection Contingency" can protect you, call/text me at (321) 377-0157 or email me at LaShawn@LaShawnNorden.com
As a 35 year Seminole County Native, I provide Real Estate services to those in Lake Mary, Sanford, Winter Springs, Altamonte, Longwood, Casselberry and Oviedo. Experienced in marketing & selling homes ranging from $100K to over $2M and advocating & representing Buyers to find a home that meets their personal and financial needs. Accredited Luxury Home Specialist & Relocation Specialist
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.
Central A/C
Over the last year or more, there has been a shift in the real estate market, with the number of homes that are short sales and bank-owned foreclosures growing by the day. As a matter of fact, in reviewing the number of active homes for sale in Central Florida, I estimate that more than 40% of the inventory that is available for sale is either a foreclosure or a short sale.
In addition to being able to tour an exceptionally priced custom estate within the community, guests can preview fine art and purchase raffle tickets for a variety of prizes. Music, catered food and a cash bar will also be provided.
When working with Buyers, it would certainly be helpful to know BEFORE I show the property that the property will need a tad bit more than just "TLC" or "elbow grease" in order to make it habitable.
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