ST.CLOUD FLORIDA HOME OWNERS ON THE FENCE- IS NOW THE TIME TO SELL? A question that has sidelined many long term home owners who have been wondering when the market will stabilize enough to consider placing their home for sale.

The focus on Short Sales (owing more than the home is currently worth) , Foreclosures and now Bank Owned Properties (homes which have been foreclosed upon)  has left many long term home owners wondering if there is a demand for homes that are not so-called "distressed properties." 

Although these distressed properties are abundant, and attract bargain hunters with low asking prices, which is a great hook- there is a catch. It takes many months for these deals to be negotiated and closed.  Not all short sales will close. Some will go into foreclosure during the negotiation process.

So called "Third Party" Sales are experiencing extreme delays as much as six months as reported by some Real Estate professionals.  On average 3-4 months is typical depending on the Lender involved. Information is often lost, misplaced, and never received by the correct department adding to the delays. There may be more than one lender involved further w5qhn8aju6complicating the process.

Additionally, many of these homes are in chronic disrepair cannot meet FHA/VA loan inspection requirements.  Many have been vandalized and will require extensive renovations to be habitable.

SO WHAT "HOOK" DOES A LONG TERM HOMEOWNER HAVE IN THIS MARKET?

A long term homeowner is generally one who has owned their home for more than 7-10 years. If you purchased a home prior to the Market Boom  which began in late 2004 the chances are you bought it right. Despite the devaluation of home prices (from their peek in 2006) it is possible for long time home owners to capitalize on their original investment. 

Historically, homes appreciated on average 6% per year.  It was not until 2005, when housing was in short supply that homes values hyper-inflated, and exceeded their actually worth.  This hyperinflation paved the way for the mortgage mess, of which the foreclosures and short sales are a by product of.  If you are waiting for those days to return... it is unlikely you will see them for a very long time to come.

WHAT DETERMINES PRICE?                               

In a word, Inventory.  The number of available homes for sale will directly affect how much your home is worth. What contributed to the "BOOM" was low availability of existing homes, and high demand for housing.   Conversely, low demand and high supply brought the housing Market to a stand still. 

In 2005, Osceola County experienced one of the biggest building booms since WW2- new developments were springing up like weeds, without an economic base to support it.  Developments like Stevens Plantation (7000 homes) Harmony, and Turtle Creek flooded the former farm lands with Planned Unit Developments of single family and clustered housing (Townhomes) at prices average wage earners simply could not afford.  Compounded with Community District Development Fees (which were added to Property Taxes) and Home Owner Association Fees  pushing the monthly mortgage payments through the stratosphere and in essence, brought the housing market to a grinding halt.  Over supply lack of demand.

PRICE AND CONDITION

 Fast forward to the present. The median price for a home in the St. Cloud Florida zip codes has readjusted to $134,950.  Of homes sold in the last 30 days,on average they have sold for 97% of list price or $79.93 per square foot.                                                                                               

 Price is predicated upon several factors. Comparable Properties, Location, Age, and Condition.

The selling price of comparable properties will directly affect the value of a home. Regardless of how many upgrades the home may have-it plays little role in the comparison and will not yield a profit over cost.

If you are a current homeowner considering selling your home, in St. Cloud Florida, NOW is a perfect time to consult an Area Real Estate Expert about listing your home. 

Recent changes in Appraisal Guidelines could have an impact on your ability to sell your home.

FOR A FREE CONSULTATION CONTACT ME TODAY-  

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