Orlando Real Estate Voice

Yes, Florida is on-sale.

Orlando is one of the best cities for bargain hunters.

According to Forbes magazine Orlando is one of the top ten markets for home bargain hunters. Here they are:

1. Salt Lake City, Utah

Of the major metros in the U.S., Salt Lake City is adding jobs faster than anywhere. The economic boom in SLC has drawn residents from all over the country, and more than a few home builders trying to make a profit in these otherwise woeful times. Housing supply has gone up quickly, and there hasn’t been a high rate of foreclosure.

2. Raleigh, N.C.

Raleigh is another market that has been driven by job growth. Like much of the Southeast, the expanding economy here has kept people moneyed enough to make home payments. According to RealtyTrac, there is only one foreclosure per 319 households, one of the lower rates in the country. The inventory of homes available is slightly lower than Salt Lake City (No. 1 on our list), at 14,764, despite Raleigh’s larger population of 408,985 people.

3. Orlando, Fla.

South Florida markets aren’t often referred to as bargains, but Orlando stands out for two reasons. First, it’s adding jobs at a much quicker clip than other cities in the state, especially those in the South. Second, the market didn’t go through as much of a speculative boom as did the bigger cities of Miami and Tampa, so it doesn’t have as far to fall.

4. Charlotte, N.C.

Just like in-state neighbor Raleigh, Charlotte has expanded quickly as the result of an economic boom that has drawn many residents from the North and Northeast. The financial sector is largely responsible and this is something to keep an eye on as banks’ woes continue. While the city continues to grow, building activity has supplied plenty of inventory on the market, keeping things in the buyers’ favor.

5. Phoenix, Ariz.

Phoenix has a very high foreclosure rate; there’s no way around that. Based on RealtyTrac’s estimates, there is one foreclosure for every 87 households in Phoenix. Still, our data suggest that strong job and economic growth in many non-housing sectors of the local economy is enough to offset it, and people are still moving to the Valley of the Sun at a quick rate.

6. Seattle, Wash.

It looked like the good times were never going to end here, but housing price growth has slowed. The local economy continues to add jobs, and the city’s port, in particular, has profited from the weak dollar. The market slowdown isn’t an indicator of a crash and offers good bargains.

7. Las Vegas, Nev.

Las Vegas is a market hammered by foreclosures, due largely to extremely high speculation in both residential communities and the condo market. Though the housing slowdown has hurt jobs in the construction sector, Vegas continues to attract businesses and job seekers to its growing economy, making its excess inventory (and there’s a ton) less toxic than in other places. According to ZipRealty, inventory is down from its September peak by about 2,500 houses.

8. Jacksonville, Fla.

Jacksonville didn’t go through an obscene speculation boom, making its recovery cycle far less daunting than other Florida spots. Job growth isn’t outstanding, about average for the cities we measured, but the foreclosure rate is lower than any of the Florida cities we looked at, making the high inventory rate more likely to improve than get worse.

9. Richmond, Va.

10. Houston, Texas

Compared to housing prices in other cities, Houston real estate has always been a bargain, which is partly why the population has expanded so much since 2000. Jobs are being added to the books at the sixth fastest rate of cities measured, and while the city has had more than a few foreclosures, especially in Harris County, it hasn’t taken a huge hit. Based on inventory levels and construction projects in the works, buyers still have good standing to negotiate price.

Home prices are forecast to fall more than 30% in some communities in ‘the most severe housing recession’ since 1945.Housing markets from Orlando, Fla., to Stockton, Calif., will crash, and some will suffer price drops of more than 30% before the housing crisis is over, a report from Moody’s Economy.com said today. I find this funny because once again the media is slow to find out. I’ve been telling people now for a year that we won’t see the bottom until fall of 2009.We are now in the spring here in Orlando and I’ve sold 4 homes this week and listed another. Does that mean we’re turning the market?    My opinion is NO.  It’s simply the seasonal shift that we always have. Buyers always come out around the end of February and buying subsides in August.On a national level, the housing market recession will continue through early 2009, said the report, co-authored by Mark Zandi, chief economist of Moody’s Economy.com, and Celia Chen, director of housing economics. The report paints a worsening picture of the hard-hit housing sector, which is in the midst of its worst downturn since World War II. Again, I say we won’t see an up-tick until 1^st quarter of 2010.While activity will stabilize in 2009, it will be 2010 before a measurable improvement in sales, construction and pricing will emerge, the report said.  Overall, house prices are forecast to fall 13% from their peak through early 2009. After accounting for incentives home sellers are offering buyers, effective declines from peak to trough will total well over 15%, according to the report, which said the housing recession will ultimately be severe enough to be characterized as a housing crash.Punta Gorda Fla. and Stockton are the hardest hit markets in the United States, with price declines from peak to trough forecast at 35.3% and 31.6%, respectively. “This is the most severe housing recession since the post-World War II period,” Zandi told Reuters. These markets have been hard hit due to several reasons, namely the exiting of investors from the areas, a fair amount of subprime mortgage loans causing an increase in foreclosures and overbuilding by home builders, Zandi said. As I personally look at the MLS and each subdivision – community I see that nearly 10% of the homes are in short sales or foreclosure.  We’re looking at another 12-18 months before all of those get washed out. However, that  means there are some fantastic deals for buyers. The funny thing about is that when the media catches on and  says that the market is turning, the great deals will be gone.In summary, I say if you want a great deal on a house call me now and lets find you that great deal now, before they all disappear.

***YES*** Mark It SOLD……….Finally, Buyers are coming Back.

Jerry LaRose | Keller Williams Classic Realty | jerry@jerrylarose.com | 407-580-7011 5011 Coveview Dr., Saint Cloud, FL PRE-FORECLOSURE, PRICE REDUCED FOR QUICK SALE and/or SELLER WILL CONSIDER LEASE PURCHASE. Never occupied. Like-New in Gated community. Engle Home King 4 Bdrm Single Family House offered at $499,900 Year Built 2005 Sq Footage 3,310 Bedrooms 4 Bathrooms 3 full, 1 partial Floors 2 Parking 3 Car garage Lot Size Unspecified HOA/Maint $58 per month DESCRIPTION PRE-FORECLOSURE, PRICE REDUCED FOR QUICK SALE and/or SELLER WILL CONSIDER LEASE PURCHASE. Never occupied. Like-New in Gated community. Engle Home Kingston Plus Model. Granite counters, Stainless Steel upgraded appliances, 18×18 tile, downstairs Mastersuite, premium WATERFRONT lot with view of Fells Cove. Spacious upstairs bonus, 3 car garage. Lots are surrounded by natural beauty and a true sense of privacy with lake frontage behind you and a large conservation area directly across the street. Only 6 minutes from the new Lake Nona medical cluster, which includes the Burnham Institute, UCF Medical School, VA Hospital, and research park. see additional photos below PROPERTY FEATURES Central A/C Central heat Walk-in closet COMMUNITY FEATURES Garage parking Swimming pool(s) Lake OTHER SPECIAL FEATURES Lake Front Property ADDITIONAL PHOTOS Seller contact info: Jerry LaRose Keller Williams Classic Realty jerry@jerrylarose.com 407-580-7011 For sale by agent/broker Equal Opportunity Housing Posted: Feb 20, 2008, 2:30pm PST

Mortgage Fraud – What is it? View the video below to view a short clip from Freddie Mac on Mortgage Fraud. If you’re having mortgage problems and can’t pay your mortgage, talk to your lender. There are many mortgage fraud predators out there. Be Aware.
Of course, feel free to give me a call if you have any questions.

Jerry at 407-580-7011

Do In-ground Pools Add Value To Real Estate in Florida?

The answer may surprise you!

For many, many years REALTORS have given the standard answer to their customers that in-ground pools add little value to real estate in Orlando Florida. I have even heard agents reason with their clients that many families do not want pools due to safety issues with small children. They reason that a large number of buyers do not want pools, therefore the value of a home with a pool is not increased. This is interesting logic, but false! In recent years my clients have been getting huge returns of up to and even more than 80% of the pools cost. Unfortunately most REALTORS do not know the value of an in-ground pool and are still relying on old data and false perceptions! This error is perpetuated because houses with pools are statistically rare.

Here is what the National Association of REALTORs says:

They (in ground pools) do tend to add value to a home – about 7.7%, according to National Association of Realtors statistics. Regionally, in-ground pools will add about 5% to the value of a home in the Northeast part of the country, about 6% in the Midwest and 7.5% in the Southeast and West. In the Southwest, a swimming pool will add nearly 11% to the home’s value!
Some instructors still believe that having an inground pool is a detriment to real estate sales today! This is absolutely FALSE!
WARNING: If you have an inground pool and you sell your house you could lose as much as $30,000 – $40,000 due to an inaccurate evaluation in todays market (Spring – Summer of 2007)! Pools in Orlando, Windermere, Winter Garden and the surrounding Orlando Florida area add a considerable amount to the value of the home. This is true because of the improved technology, reduced maintenance, improved safety features and increased competition among in-ground pool makers. Additionally, modern pools tend to have better designs, modern features and they have a HUGE PERCEPTION of VALUE!.

I have had clients literally laugh at me when I told them I could get $30,000 – $40,000 more than the highest quote given to them by other sales agents. I recently sold a home with a pool that had been purchased the previous year. The owners thought they had no equity because they were very happy when I delivered on my promise! The value you get for your in-ground pool is also enhanced by the landscaping and the design. A hot tub also adds value.

Call Jerry at (407)580-7011    JerrySellsOrlando.com

The question beckons – How Low Can You Go?

How much lower can this crazy Orlando Real Estate market go. Well, Here’s my thoughts and one way to look at it.

When a renter can pay only approx. 20-30% more in their rent payment and own a home, They’ll Buy!

OK, what does that mean?

Right now a 3/2 home at $200,000 would cost approx. $1600 Principle Interest Taxes & Insurance (PITI).

A 3/2 Home to rent in general is renting for $1200-$1300, meaning that when that average 3/2 home comes down to $200,000 that renter would rather buy instead of rent.

Right now that 3/2 Home is costing approx. $240,000. That means that that average home still has to come down $40,000 or 16% for that average renter to BUY.

OK, that’s my opinion and we know what they’re like!

Though the national index figures reflect the illusion we most favor — a steady and virtually guaranteed rise in home prices — a very different picture emerges when you examine price indexes by state or metropolitan area. Here are some examples.

• In Houston, the first Texas city to fall in the oil bust, the home-price index peaked at 108.5 in 1983. It also bottomed early, hitting 81.5 in 1987. But it was a long bottom: The index didn’t recover to its 1983 level until 1997. So recovery from the market top took a full 14 years.

• San Antonio peaked in 1984 at 109.7, didn’t bottom out until it hit 82.5 in 1990 and didn’t recover to its old high until 1995, a period of 11 years.

• Austin peaked in 1986 at 100.1, falling to 72.7 in 1991 and reaching recovery in 1994, about eight years.

• Dallas also peaked in 1986, at 110.1, bottomed at 94.3 in 1989 and regained its old peak in 1997, a period of 11 years.

The Texas template tells us we could be in for a 14% to 25% decline and an eight-year to 14-year wait for recovery. That’s real history. It’s not hyperventilation from the Chicken Little chorus.

You should also know that big-time housing comedowns aren’t unique to Texas. Comedowns also hit other markets. Los Angeles peaked in 1990, bottomed in 1995 and wasn’t fully recovered until 2000. Boston peaked in 1988, bottomed in 1992 and hit its recovery number in 1997.

Bottom line: Love your house for the shelter and peace it provides.

Until l993, mortgage lenders had traditionally relied on underwriters to determine if a borrower was worthy of a mortgage loan. The underwriter would mail out employment and bank verifications, order a credit report and review each piece of information when it was received. The underwriter or loan committee would meet to determine if the borrower met the guidelines established for the type of loan he was applying for. This process would often take weeks or even months to gather the information and make an underwriting decision. In today’s fast paced market, lenders want to be able to make decisions within 24 hours, if possible. So lenders have had to change the way mortgage loans are underwritten.

One of the first changes made to speed up the underwriting process was to accept verifications of employment through pay stubs, rather than written verifications through the U.S. mail. Likewise, bank statements have replaced the need for written bank verifications. Court papers and canceled checks are often used as proof of additional income sources such as child support or alimony. Next, credit reports started coming with credit scores.

Credit scoring is an numeric way of weighing various financial factors, like income, debts, job history, credit history, and other factors, which can help predict the likelihood of the borrower defaulting on the mortgage. While there are a number of credit scoring models used, most lenders seem to use the Fair, Isaac & Co. (FICO) score that ranges from 450 to 900. The lower the score the higher the risk. Credit scoring is now part of the credit report that the lender gets when a borrower applies for a mortgage.

The formula for the Fair Isaac creditworthiness score deals only with financial information about a borrower and doesn’t consider such factors as place of residence, age, race, sex or nationality. The score is developed by giving weight to the following areas: Record of timely payments on loans-35%, the amount and type of outstanding debt-30%, length of credit history-15%, the mix of credit accounts-credit cards, department stores, finance companies, bank loans-10%, number and types of accounts opened recently-10%.

While the credit scores have some merit, there are different systems of scoring and the borrower may actually have three different credit scores at the three major credit bureaus. This is why FNMA recommends that lenders obtain credit scores from two of the three major credit bureaus and compare the scores. The lower score is used when only two scores are obtained. The middle score is used if all three credit bureaus are used.

While the credit score is only a tool to help lenders determine their risk, FNMA conducted tests on one million loans and found that one in eight borrowers with a FICO score below 600 were either severely delinquent or in default. On the other hand, borrowers who had a FICO score of 800, only one in 1300 borrowers were severely delinquent or in default.

While individual lenders are allowed to set up their own requirements for credit scores and there are no established guidelines, most lenders seem to generally agree on the following grading system:

CREDIT SCORE RATING

760-850 A++ This category is reserved for superior financing options such as 125% loans.

700-759 A+ This category is reserved for 100%, 103% & 107% conventional financing.

660-699 A This category entitles borrower to the “prime interest rate”.

620-659 A- This category is where “subprime loans” may begin, depending on all facts.

580-619 B This area is definitely “subprime”, the lower the score, the higher the rate.

579 & below C-D This is the lowest category that most “subprime lenders” offer mortgages.

When a borrower’s credit is in the “A” range they are entitled to the going rate on 30 year fixed rate mortgages and high ratio loans such as 95% conventional loans. If their credit scores are in the A+ or A++ categories, they may be entitled to even higher ratio loans, such as 100%, 103% or 107%, which requires less cash outlay. “A-“ borrower’s pay .5%-1.0% interest more than the going rate for 30 year fixed rate mortgages. “B” borrower’s pay 1.0%-2.0% more than the going rate for 30 year fixed mortgages. “C” borrower’s pay 2.0%-3.0% more than “A” borrowers and so on.

As you may know, the January 29^th 2008 Presidential Primary election Voters said ‘Yes on 1’ Property Tax Amendment 1,  Which lowers property taxes statewide. The property tax amendment  allows buyers to take their Save Our Homes tax savings with them when they move. One of these changes allows homestead property owners to transfer up to $500,000 of their Save-Our-Homes benefits to their next homestead. What is Portability?

• Portability

            The ability to transfer the benefit of the homestead property assessment limitation (defined in FS 193.155) described as the dollar value difference between market value and assessed value, or a percentage thereof, from an existing homestead to a newly homesteaded property.               MARKET VALUE(MINUS) ASSESSED VALUE               =   PORTABLE AMOUNT You can visit my Website at JerrySellsOrlando.com to view what it means to you. Click on: Property Tax Amendment. You can also use the Portability Calculator to determine your current Save-Our-Homes portability dollar amount, how the dollar amount is transferred to a new homestead, and the estimated tax dollar savings that may occur. I also have a link to the: Orange County Property Appraiser Homestead Portability Calculator.Call Jerry for your Real Estate Needs 407-580-7011, JerrySellsOrlando.com