| 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: |
| 21
Tips to Improve the Chances of Selling Your
Home in a Slow Real Estate Market: |
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(1)
Make the Most of that First Impression:
A well-manicured lawn, neatly trimmed shrubs
and a clutter-free porch welcome prospects.
So does a freshly painted – or at least
freshly scrubbed – front door. Rake
leaves in the Fall. If it’s winter,
shovel the walkways.
(2) Clean Clean Clean:
Here’s your chance to clean up in real
estate. If your woodwork is scuffed or the
paint is fading, consider some minor redecoration.
Fresh wallpaper adds charm and value to your
property.
(3) Check Faucets and Bulbs: Dripping
water causes stains and suggests faulty or
worn-out plumbing. Burned out bulbs or faulty
wiring leave prospects in the dark. Don’t
let little problems detract from what’s
right with your home.
(4) Don’t Shut
Out a Sale: If cabinets or closet doors
stick in your home, you can be sure they will
also stick in a prospect’s mind. Don’t
try to explain away sticky situations when
you can easily plane them away. A little effort
on your part can smooth the way toward a closing.
(5) Think Safety:
Clean away potential disasters: roller skates
on the stairs, festooned extension cords,
slippery throw rugs and low hanging overhead
lights.
(6) Spacious Living:
Potential buyers are looking for more than
just comfortable living space. They’re
looking for storage space, too. Make sure
your attic and basement are clean and free
of unnecessary items.
(7) Bathrooms Help Sell
Homes: Make bathrooms sparkle. Check
and repair damaged or unsightly caulking in
the tubs and showers. Enhance your bathroom
with flowers, guest towels, and your best
mats and shower curtains.
(8) Pay Attention to
Detail: Loose knobs, sticking doors
and windows, pushed-out screens and other
minor flaws can detract from your home’s
value.
(9) Dream Bedrooms: For a spacious
look, remove excess furniture. Hang fresh
curtains and use attractive bedspreads.
(10) Warmth of the Sun: Pull back your
curtains and drapes so prospects can see how
bright and cheery your home is.
(11) Sweet Scents:
The old trick of delicious scents still makes
homes appealing. Bake cookies, pies, or other
delectable treats. Or use potpourri as long
as the scent you choose is not overwhelming.
(12) Coloring the Night with Light:
Turn on the excitement by turning on all your
lights - both inside and outside - when showing
your home in the evening. Lights add color
and warmth, and make prospects feel welcome.
(13) Garage Neat: Organize the garage.
This is often a place that becomes cluttered.
(14) Closets Are Important:
Closets look their best when they are orderly
and not too full. Be sure the lights work
and pack away items unused to make them look
more spacious. Great time to box up unwanted
clothes and donate them to charity.
(15) Control the Music:
When it's time to show your home, it's time
to turn down the stereo or TV.
(16) Keep a Low Profile:
CENTURY 21® Sales Associates know buyers
- what they need and what they want. Your
CENTURY 21 Sales Associate will have an easier
time articulating the virtues of your home
if you stay in the background.
(17) Don't Turn Your
Home into a Second-Hand Store: When
prospects come to view your home, don't distract
them with offers to sell those furnishings
you no longer need. You may lose the biggest
sale of all.
(18) Expert at Hand:
When prospects want to talk price, terms,
or other real estate matters, let them speak
to an expert - your CENTURY 21 Sales Associate.
(19) Make it Inviting:
Be sure the front entrance is clean and inviting.
Paint the gutters, downspouts and the front
door. Also sweep the walks, steps and driveway.
(20) Touch Up:
A small investment in paint for the inside
and outside helps. Remember to choose neutral
colors.
(21) Avoid Crowd Scenes:
Potential buyers often feel like intruders
when they enter a home filled with people.
Rather than giving your house the attention
it deserves, they're likely to hurry through.
Keep the company present to a minimum. |
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