money? As the real estate market and the economy in general continue to flounder you may be forced to explore more drastic options when buying or selling. Foreclosures are at an all-time high throughout the country and especially in Central Florida. Many homeowners are negotiating short-sale options to pay off loans with their lender to avoid foreclosure and likewise, many home buyers and bargain hunters are buying these financially distressed properties at prices below market value.

Let's take a minute to define exactly what a 'short sale' is: A short sale occurs when (1) the purchase price of a property is not sufficient to satisfy all liens encumbering the property and to pay for sellers costs, including the real estate brokerage commission, and (2) due to hardship or financial inability, seller is unwilling or unable to pay the balance of such liens or costs and (3) a reduced payoff amount may be negotiated between the lender, the seller and the potential buyer to complete the transaction.

Sound complicated? It's really not, it is basically a comprimise between the bank; to limit the amount of loss on the loan as the house sits longer and longer without payments being made and the borrower; to avoid the negative credit and financial effects of a foreclosure.

This new dynamic has without doubt temporarily changed the personality of the Orlando real estate market, but this inventory of foreclosure and short-sale properties will not last forever. These changes from high to low, although painful at times, remind us that real estate prices are cyclical and will always remain a consistent long-term investment offering solid returns. It sounds a little crazy to talk about real estate as an investment during the current climate of our market, but consider this: although home prices are down 15% from a year ago, they are also 34.5% higher than they were in 2003 (according to the Florida Association of Realtors®). By comparison, when George W. Bush took office beginning his first term, the DOW was sitting around 11,000. If you are feeling daring, take a look at what it is today.

At Century 21 Real Estate Professionals, we have been helping home buyers and sellers make sense of the Orlando housing market since 1985, so we are accustomed to using our past experience to read and understand current trends and give informed advice to our clients.

Another hot topic for the Orlando area housing market is property taxes and homeowner's insurance. What exactly does the new "super exemption" of the "save our homes" tax amendment mean when buying or selling a home? What impact does the availability and cost of hazard insurance have on your decision? For example; when the market was peaking in 2005 and 2006, insurance companies were insuring homes at unreasonable replacement cost estimates due to the lack of housing supply at the time, and those high premiums can still be affecting you today if left unchanged. Overall, taxes and insurance can drastically affect the affordability of your monthly house payment and must be a factor that is given careful consideration on each home that you are interested in.

Now that Congress has enacted a bigger and better Home Buyer Tax Credit, now may be an even better time to consider buying a home. A tax credit of up to $8,000 is now available for qualified first-time home buyers purchasing a principal residence on or after January 1, 2009 and before December 1, 2009. Unlike the tax credit enacted in 2008, the new credit does not have to be repaid. Some basic facts about the Home Buyer Tax Credit:

• The tax credit is for first-time home buyers only
• The tax credit does not have to be repaid
• The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000
• The credit is available for homes purchased on or after January 1, 2009 and before December 1, 2009
• Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit

We have the resources to help you make an informed decision when deciding to buy or sell a home, whether you are interested in qualifying for the tax credit or not. Our in-house mortgage company can give you several excellent loan programs to choose from and give you exact principal and interest payment information on each. Our experienced sales associates can help you shop for homeowner's insurance and receive quotes as you are shopping for homes. They can also help you estimate your property taxes and any possible increases due to a reassessment when you make a purchase. Finally, our in-house title company can give you an accurate estimate of the closing costs, escrow accounts, and pre-paid items you can expect at your closing.

There is more to your decision than payments, taxes, insurance, and closing costs...right? After all, buying a house is supposed to be fun! We understand that part of the process too! All of our associates, staff members, mortgage consultants, and title closers make their home in Central Florida and have gone through the same steps to find a place to live for their own families. And although Century 21 is the biggest name in real estate worldwide, even the owners of our company live and work in the Central Florida community. Please browse the links below for some in-depth information about the different areas to call home in Central Florida: