Archive for August, 2007

Orlando Forclosures

Published at August 31, 2007 in General Real Estate, Market Reports and Orlando Real Estate. 0 Comments

Are you interested in buying a distressed property? Pre-foreclosure filings were on the rise last month in Florida, placing it at the No. 2 spot across the nation for total filings and filings per capita, claims Foreclosures.com.

Orlando ForclosuresIn first place was California with 132,101 year-to-date pre-foreclosures, and Florida followed closely behind with 111,236. Florida was also just behind Nevada’s 2.55 percent per capita with a 1.76 percent per capita.

In July alone, Florida had 21,120 filings, which was well above the 13,005 filed in June. These were still very close to the numbers in California who had a total of 23,662 filings in July. However, they were much higher than the 6,498 cases filed in Texas.

A report from Realty Trac. shows that Florida is number two in the rankings of the most foreclosures in the United States for the month of July.

Florida was also ranked seventh in the entire country when it came to foreclosure rates. This includes one filing out of every 431 households. This is 1.6 times the entire country’s average.

Last month there were a total of 179,599 filings reported last month. This number was an increase of nine percent of the previous month and a whopping ninety-six percent increase from July 2006. The report also indicated that for every 693 households, there is one foreclosure filing.

Pre-foreclosures occur when homeowners are in default on their mortgages and may also have notice of default or notice of auction included in them. Not all pre-foreclosures end in the homeowner losing their home.

However, up until July of this year, 18,935 homes in Florida were taken from homeowners under pre-foreclosure. This makes up for 0.3 percent per capita. In July alone, 4,268 homeowners lost their homes, a huge increase from June’s 2,691. Even with these staggering numbers, the state still does not rank among the country’s top ten for homes lost due to pre-foreclosure.

The country’s total of pre-foreclosure filings totalled 617,162, which is 0.8 percent per capita. Of those, 100,421 were in July alone. Homes lost to pre-foreclosure were at a total of 300,938 or 0.37 percent per capita. In June there were a total of 51,373 in the country, which was still not as many as 41,535 homes lost in the month of June.

These numbers are not good but they are bound to continue for another twelve to eighteen months. This spells bad news for homeowners that aren’t even in default yet but may be in the near future as these numbers are sure to make for tightened credit markets, making it even easier for homeowners to eventually lose their homes.

If you are looking to Purchase a distressed property now is a great time. I can assist you in finding  and purchasing these types of properties at no cost to you.  Please contact Jeffrey Funk at 407-438-4028 or use my contact form.

Orange County Tourist Tax June 2007

Published at August 30, 2007 in Market Reports and Orlando Investment Properties. 0 Comments

I am happy to report that I have some good news regarding tourism numbers. Resort tax collections in Orange County were raised almost four percent in the month of June. This should be good news for people that are looking to purchase an Orlando vacation property in our current buyers market.

The six percent hotel tax had produced $14.9 million in June. $12.4 million was taken from the first five cents of the tax. The sixth cent took $2.5 million. The sixth cent was added in September by The County Commission.

The June 2007 tax receipts had increased to $466,000 or 3.9 percent. In June 2006, the five percent rate created $11.9 million.

It is definitely encouraging to know that the resort tax had increased some after two months of declining tax collections. Cumulative collections have also increased five percent compared to the same time period of the previous fiscal year.

Resort taxes are charged on things such as motels and hotels, anything that has a short-term rental attached to it.

Orlando Home Sales Continue to Decline

Published at August 30, 2007 in General Real Estate, Market Reports and Orlando Real Estate. 0 Comments

Homes prices in the Orlando area are continuing to be lowered. During the second quarter, Orlando experienced a forty percent drop in sales on single-family homes. The number of home sales dropped from 8,189 last year to 4,933 for the same time period this year. The average sale price has also dropped from $265,500 in the second quarter of 2006 to $253,800 for the same time this year.

Condo sales for Orlando have also dropped by sixty-one percent. During the second quarter of 2006 the figure was 1,456, compared to 572 for the same period of time this year. Average sale prices for these condos have also dropped from $163,500 in the second quarter of 2006 to $155,700 this year.

The entire state has experienced a decrease in single-family homes. During the second quarter of 2006 sales totalled 53,723. That number was down this year to 37,709. For existing homes the average sale price has also fallen from $250,400 in the second quarter of 2006 to $239,200 this year.

Condo sales in the State of Florida have also suffered with a twenty-five percent decline. This number went from 16,566 in the second quarter of 2006 to 12,415 for the same time this year. The average sale price of a condo has changed very little although that too has decreased. This figure dropped slightly from $211,200 in the second quarter of 2006 to $208,400 this year.

Designing The Perfect Room For Your Guests

Published at August 26, 2007 in Design Trends. 0 Comments

bedroom.jpgOne of the things I love about living in the Orlando area is that all of my friends from around the country love to visit here. With this in mind we have always tried to have a nice comfortable guest room for all of our out of town vistors. A guest room can be much more than just a spare bed with a lamp and maybe a night stand. These rooms can be a true getaway paradise for guests that stay with you, keeping just a few design trends in mind.

The first thing is to make sure that the guest will be comfortable staying in the room. The best place to start is with the bed. For added comfort, a plush mattress topper can be added to make the guests feel as if they truly are sleeping in luxury. Double sheeting also adds a touch of class. To do this, place one sheet over the mattress, another one on top, a cotton blanket, followed by a third sheet, and then the bedspread. Matelasse coverlets are good to use on the bed as they are washable and easy to use and keep clean. Any linens and towels in the room should also be white as this lends a feeling of pure cleanliness.

If there is enough space in the room, provide some furnishings to make your guest’s stay even more enjoyable. Placing an easy chair in the room, also provided with good lighting, will make reading or other activities more pleasurable for your guests. Some other items may include a writing desk, mirror, radio, television, some drawers, and an available outlet for things such as a laptop. Any tables should be free of clutter and should hold no more than a clock. This will provide your guests with space to place their own items down. The same rule applies to any vanity in the guest bath. Guests will also appreciate a small basket of shampoos, lotions, and soaps placed in the bathroom for their personal use.

Everybody’s internal body temperatures and preferred temperatures for sleeping are all different. Try to keep the house temperature not too cold or too hot to make for a happy medium for all. Also keep extra blankets in the guest room so guests who are feeling chilly can warm themselves up. Make sure windows can be opened and that there is a ceiling fan in the room in case guests feel a little warm.

Guest Room OfficeNot all homes are fortunate enough to have a separate room that can be used as guest quarters. In this case, a little creativity can turn an office or other room into a wonderful place to stay for visitors. Because these rooms are not solely used as guest rooms but are also needed as a place for the family to perform their daily activities, there are a few things to keep in mind, such as privacy. A folding screen can be placed in the middle of the room to separate the functional aspect of the space from the living space that guests will be using. A doorway can also be fitted with a decorative sheet or curtains that are held up using a curtain rod or a tension rod for those wider doorways.

To make guests feel like they are truly visiting a little piece of paradise, provide a small basket of treats such as bottled water, granola bars, fruit, and maybe a small bottle of wine. When serving breakfast, offer standards such as bacon and eggs, or waffles while keeping special dietary considerations in mind, such as allergies or vegetarianism.

The last important thing to do is to have fun with your guests! The whole point of the stay is to enjoy the time you have with them so now that you are ready for them, put your feet up and enjoy each other’s company!

Jeff- Orlando Real Estate

Considerations when Building a New Home

Published at August 25, 2007 in General Real Estate, New Home Construction and Orlando Real Estate. 0 Comments

Orlando New HomeThere really is nothing like moving into a new home where nothing has been used and there is no redecorating that needs to be done. A home that is one hundred percent, truly and only yours, brings about a feeling like no other. However, there is much more to building a home than some might think. Below are a few key things to keep in mind when building your dream home.

Consider very carefully where the home is going to be built. Check to make sure that any lots that you are considering building on are actually zoned for building. Although the real estate agent or the seller may tell you that this is not a building lot, this is not their responsibility so if you don’t check it out for yourself, you could end up with a lot that you can’t do anything with. If the home is close to many vacant lots, there could be a commercial site or a school going in. Not only will this be messy during construction but it will also make the area one of high-traffic once you are settled in your new home.

Building codes are extremely important when new construction of any kind takes place. Again, it is the new homeowner’s responsibility to ensure that any codes are met and even go above and beyond the requirements. Such codes could include floodin and hurricanes.

Make sure that you understand the costs of insurance and property taxes. Don’t rely on real estate agents and construction workers to give you proper estimate to how much these costs will be. Property taxes on a vacant lot will be much less than that of the actual taxes after construction has taken place. To find out these costs for yourself, talk to the local tax collector’s office and they will be able to give you a better estimate. Also make sure to contact an insurance agent to make sure that you will have all the coverage you need for flooding, hurricanes, earthquakes, or any other factors that you may not have considered.

One of the most important aspects of building a new home is selecting the builder. This will probably be one of the most important decisions you make as you will be interacting with the builder often, and they are responsible for getting the project done on time and within budget. The builder is also responsible for hiring any sub-contractors that will be working on the project and if the builder doesn’t pay them, the onus is on the owner. When selecting a builder, ask for many references and contact all of them to make sure you know what working with that particular builder entails. Also ask to see some of the homes that they have constructed.

Any time one works with a sub-contractor, there is risk involved. This is because they will place liens on the property to make sure that they get their payment. If the sub-contractor does not get paid by the builder, you will be responsible for paying them, even if you have already paid the builder. Make sure that any time a sub-contractor is paid, the release the lien on the property.

Don’t only choose a lender carefully but know your options when entering into any financial arrangement. When lenders grant a construction loan, they pay the builder directly with a number of “draws” at set times. This means that the homeowner has no control over when the builder gets their money and payment cannot be withheld if the owner is unsatisfied with the work. Here again it’s very important to choose a lender carefully and ask lots of questions and for references before settling on one.

If the homeowner decides that they would like the option of withholding payment, finding another way to pay may be an option. This could include a home equity loan or a line of credit. If the owner decides to go this route, it’s very important that they be aware that this involves a much more hands-on approach to all aspects of building.

A very attractive option may be an end loan which are sometimes offered by larger building companies. In this instance, a homeowner does not pay anything until construction has been completed. The customer is then paying only for the home without having to worry about paying for construction along the way. Another advantage to these loans is that the interest rates are very often lower than those of regular construction loans. One disadvantage is that an arbitrator or mediator is sometimes needed if the homeowner is dissatisfied with the finished work.

Flexibility in a lender is also very important. If the loan documents state that the project must be finished within twelve months, this will mean that the loan will be interest only for the first twelve months and will then convert to a regular mortgage. If there is a delay the homeowner could end up paying more than they need to. Before entering into any agreement, you should ask what the options are for extending the construction loan should the project take a little longer than expected and what fees there are attached with that. If the fees are too high, it’s worthwhile to switch to another lender.

Also be sure to watch for any hidden fees that the lender may be charging. Quite often, the lender will want to inspect the site before handing out another draw. There are a few ways to manage these fees. One way is to carefully inspect the draw and inspection schedules and make sure that there are not more inspections than there are draws. Another way is to try and get a couple of visits consolidated into one.

Also look at the structure of the loan. After the house is built, the construction loan will convert to a regular mortgage. However, the mortgage structure needs to be decided on before the house is built. This can raise many other concerns, which will need to be discussed with the lender.

You may also want to consider buying a spec home that is already built. This can save a lot of headache during the construction process as you will not be a part of it. There are many newly built homes that are sitting empty and waiting to be sold. Finding one of these can give you your dream home without any nightmares.

Jeff: Orlando Real Estate

Question to ask when purchasing a condo

Published at August 24, 2007 in General Real Estate, Orlando Investment Properties and Orlando Real Estate. 0 Comments

Orlando CondominiumOnce you have found the condo that you believe is perfect for your tastes and lifestyle, there are some questions that should be asked before any purchase is made. These key questions will prevent you from being stuck in a bad homeowner’s situation and will make you more prepared for what you are getting yourself into.

 

The first question that you should be asking is what the other owner’s complaints are. Remember that if you were to move in, there’s a good chance that these complaints could become your own. Reading the minutes of past association meetings will provide good insight as to what any problems are. Of course, the present owners may not have anything to complain about but reading the minutes is still a good idea. They may show that there are things in the works for the condo and these could be things that the seller hadn’t mentioned.

The next thing to find out is who is paying their association dues, or at least the percentage of people who aren’t. Owners neglecting to pay their bills could indicate that they are having problems with the condo and therefore, withholding fees, or it could be an indication of not having enough funds on the association’s part.

Another big question that you should have answered is how much money is available for repairs. Also ask if reserve fund has been reviewed in the past five years. If the building is one to ten years old, the fund should have ten percent of the cost of replaceable items. If the building is between ten and twenty years old, it should have twenty-five to thirty percent available in the repair fund. After twenty years, the amount should equal fifty percent or more. Be wary of condos that have owners who claim to be paying very little in maintenance fees. This could indicate that the building has poor upkeep or that the building is going above its means.

One of the most important questions that should be asked is to see a copy of the certificate of insurance. The replacement costs should be enough to cover the costs of rebuilding and the policy should contain a building-ordinance clause. This will ensure that there will be enough money to make sure the building meets code should rebuilding become necessary. Also make sure that you know what the association will cover and what is the responsibility of the homeowner. The homeowner should get insurance for any contents inside their own unit as well as anything that the association’s insurance does not cover. If you don’t understand all of the insurance language, take the policy to an agent to help you understand what it says.

Buying a condo is different from buying a single-family home in that there are many more complications and things to consider. A homebuyer should obtain a copy of the condo’s by-laws and look it over with a real estate lawyer to ensure that they understand them and that they are in keeping with any state laws. The lawyer can also screen the association at the courthouse to make sure that they have never had a suit filed against them.

A homebuyer should find out what the rental policies are. These should be listed in the by-laws or added as an amendment if the condo consists of ten percent or more rental use. Although the association can change the bylaws regarding renters, this is less likely to happen if there are a lot of owners renting.

Any homebuyer should be wary of condos that are managed by the owners themselves. This could lead to many problems, especially if the owners are not in the local area. If the complex has a management company working for them, they should be looked into as thoroughly as the association is. Asking the owners and people living nearby will give good insight as to what the management company is like. Also find the manager who runs day-to-day operations and speak with them directly.

Jeff- Orlando Real Estate

The Condo Hotel - Orlando’s Newest Vacation Property

Published at August 23, 2007 in Orlando Investment Properties and Orlando Real Estate. 0 Comments

The Blue RoseOne of the biggest trends in home ownership right now are condo hotels. These wonderful vacation spots can be used when the owner chooses and rented out when the homeowner is not using them. Condo hotels differ from other vacation homes in the way that they provide high end resort style amenities, are wonderfully furnished and sit on some of the best vacation spots in the country. They are generally owned and operated by some of the most well known names such as Hilton, Ritz Carlton, and Westin.

Offsetting the cost of ownership is very simple process with condo hotels. When the unit is empty, it is placed into the hotel’s rental program. The hotel also takes care of managing the renters, housekeeping and maintenance of the unit. Also, because the owners can take advantage of using the hotel’s name, advertising, central reservation system, and many other of the hotel’s benefits, they can typically receive a larger rental income than they would with other investment properties.

Condo hotels are also in very high demand, with some properties being completely sold out before the developer even begins construction. This high demand makes for an even greater appreciation for these communities.

Seasonal resorts areas are one of the hottest markets for condo hotels. This is especially true in places such as Orlando, Florida. These type of resorts carry many attractions that lure in international buyers. Everyone recognizes the appeal of these destinations and want to be a part of it.

The trend of buying condo hotels has sky-rockets due to rising interest rates and a very unstable stock market. Investors continue to look for ways to invest in something safely, with minimal risk. Condo hotels are a great way to have a wonderful place to vacation to, rent and make income when they are not there, and to have an investment that will continue to appreciate.

Additional information on: Orlando Investment Properties  - Orlando Condo Hotels

Effective Selling Incentives

Published at August 19, 2007 in General Real Estate and Orlando Real Estate. 0 Comments

When trying to sell your home in today’s Buyers Market, there are certain incentives that can attract buyers. However, these incentives don’t often include things such as large screen televisions or expensive cars in the driveway. Often homebuyers will assume that these gimmicks have been included in the price of the home and they could actually turn buyers off of your property. Instead, more practical incentives such as the actual cost of the home and the amount of their monthly payments are likely to be much more attractive.  

Incentives can be stated at the very beginning of the home selling process to make it stand out from the rest of the houses on the market or they can be added several months after the property has been listed to help it sell. The incentives could also be brought up during negotiations to help encourage the buyer to buy the home. A seller needs to consider all factors when offering incentives. Both the selling price and the incentives need to be considered to determine if it is worth it to the seller to offer the incentives. 

Price reductions are usually the first incentive that is considered. This is due to the fact that the price will attract everybody. If a buyer is considering the house but is hesitant on making a commitment, dropping the price by even five or ten thousand could make all the difference. Another big incentive the seller can offer to is to pay mortgage points for the buyer. Buyers are always thinking about interest rates and one point is equal to one percent of the mortgage in prepaid interest. Having a lower interest rate or lower monthly payment will also be something that everyone can relate to and can draw in all different kinds of buyers.  

Another key factor that buyers are always considering is the size of the down payment they will need to be making. In fact, it’s one of the aspects of homeownership that most first time buyers have a difficult time with. This is advantageous to buyers due to the fact that they would not need to have such a large portion of funds available at the time of purchase.  

Closing costs is often used as an incentive as buyers aren’t interested in paying additional fees to lawyers and title insurance after they have purchased a home. And these costs aren’t small – they usually add up to approximately two percent and seven percent of the cost. Buyers, especially those having an already difficult time with the down payment, will be very interested in these types of incentives. A very interesting incentive that is sometimes offered is a warranty. The seller will often offer a warranty on the home’s systems such as plumbing and electrical for the first year after the house is sold. This provides a much needed feeling of security for homebuyers. And costing only a few hundred dollars, it’s worth it for the seller to make offer this incentive as well. 

Creative little perks can also be thought of for incentives to selling a home. If the residence is in a condominium complex, the first year’s association fees could be paid. Or if the home comes equipped with a pool, the seller could offer to pay for the upkeep and maintenance for a year. Many of these small details may come up in negotiations as buyers and sellers both think of things that would be useful.

Jeff - Orlando Real Estate

Should I Buy a Home in Today’s Market

Published at August 9, 2007 in Orlando Real Estate. 1 Comment

The only reason one should not a buy a home is if they don’t intend to live there for a very long time. Buying a home and then moving within two years of the purchase doesn’t make a whole lot of sense as there are many costs that come with selling a home. While a homeowner can usually rely on the appreciation of the home’s value to cover these costs as well as the costs that come with buying their new home, this is not the case if the current home has only been occupied for a short period of time.  

That being said, a home is usually occupied for seven or more years, making it very practical to buy instead of rent. This is true at any time and for any market. Many homebuyers think that they need to wait until the time is exactly right before purchasing a home. Meaning that they are waiting for the market to provide optimum conditions to afford them the best options. This is impossible to do however as the real estate market can be analyzed once the downturn or upturn is finished, and not before. 

It also always makes much more sense to own than it does to rent as there are no advantages to renting. Homeowners are able to deduct things on their income tax such as property taxes and interest on their mortgage. A homeowner also has full control over making changes to the living space including anything from landscaping changes to the colours of their walls or carpets. 

The interest rates on the market today are also very low. Though no one is able to predict what the rates will do in the future and they may drop even further, they could also rise substantially. Owning a home is the easiest way to acquire wealth. The majority of people have more equity in their home than they do in retirement plans, stocks, mutual funds, and savings. Over time, the value of the home will increase. There are some areas that will appreciate more quickly than others.  

There are a few ways to ensure that you are buying a home that will reduce your risk of lower appreciation on the home. The first way is to determine how much you want to spend on a home, within a certain range. You can then look at neighbourhoods that offer houses in the lower end of that range. By doing this it will keep your home less vulnerable during low periods and the higher end houses will help keep the appreciation up in busy markets. It’s also wise to stay away from buying a house that is very close to a busy street. Houses across the street from a park or a school should also be avoided when thinking about appreciation. Buying in an area where all the homes are very similar in appearance and model. 

It’s also always a good idea to speak to a real estate agent and find out what the market is doing in your area when thinking about purchasing a home.

Orlando Real Estate