What the two eras have in common are families struggling to make ends meet.  Epic home foreclosures, (Grandma losing the family farm) and historically high unemployment (Brother can you spare a dime?)  But with all adversity and hardship: there comes the dawning of a new day and new opportunities.

Senior Citizens are our best resource when it comes to experience.  Having lived through the Great Depression and Stock Market Crash, they became very resourceful. They saved money, and recycled materials to avoid waste.  In time things did bounce back.  Following any major crisis is the epicenter of opportunity.  All one has to do is look for it.

Today’s home buyers are looking for solid long-term investments. We are seeing more senior citizens investing in Real Estate for their heirs, or assisting their children and grandchildren in the purchase of property perhaps to offset rising Estate Taxes. The terms of which are increasing annually.

Older people see the opportunity in the housing market which is parallel to what occurred following the Great Depression of 1929- even then housing appreciated 6% per year on average for the next 33 years until the Mortgage Meltdown which began in 2005.

So the window of opportunity which is attracting renewed interest in the housing market is the surplus of distressed properties the banks are holding as a result of epic foreclosure filings not seen since the Great Depression. 

THE LACK OF REO/FORECLOSURE HOMES IS AN ECONOMIC BYPRODUCT

The lack of REO properties (Real Estate Owned by Lenders) is an economic byproduct of the glut which hit the market early on.  Those first to fall, which were liquidated at substantial losses to the lenders who now held them.  The learned through trial and error that releasing too many at one time, would result in a price devaluation and prolong the housing market recovery.

The Second Prong

The second prong is Short sale efficiency improvements and new guidelines: which have helped to streamline the decision-making process; and perhaps lenders have learned that rushing to judgement (foreclosure) and amassing vast inventories could take years to liquidate at or below fair market value.

Buyers are returning to the market. They are evaluating their needs more conservatively, obtaining Pre-Approvals on financing and examining their budgets more carefully. 

 Bigger is no longer better.  Economic stability and long-term endurance has become the new norm. Which, is exactly what occurred following the Great Depression four score early.

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There is more to selling your home than just sticking a sign in the ground. Most sales today are achieved by combining various forms of marketing. While A FBSO may sell 3-4 homes in their lifetime, Real Estate Professionals are selling 3-4 monthly even in this market.
So exactly what does a Realtor® do?
There are at least 15 elements which are involved in a Real Estate Transaction which on average yield the seller 9% more money than a FSBO sale.
1) Evaluate and Estimate the Current Market Value
2) Prep a punch list of repairs
3) Recommend staging
4) discuss current market conditio0ns and how they effect your homes value
5) Analysis recent sales
6) Prepare and Market the property for maximum exposure to buyers
7) Photograph the property professionally Create a custom Virtual tour
9) Implement a multi level market program with proven results
10) Arrange showings
11) Pre-Qualify buyers
12) Write and Review Purchase Agreements
13) Negotiate best terms and conditions
14) Arrange escrow, title, survey, and inspections
15) Clear obstacles to closing

So while there may be 3 good reasons not to use a Real Estate ProfessionalThere are 15 reasons to consider it.

A Home Warranty covers major components such as the roof, plumbing, electrical and appliances. Although there is usally a deductible for a service call if needed, the assurance of added protection is a great benefit to our sellers and an additional benefit to buyers giving them piece of mind the home has additional coverage. We though it appropriate in these tough times to give something back.

Typically a Home Inspection can run on average about $250-$350. “We recommend getting a Home Inspection with a State Licensed Florida Home Inbspection Company;and there are many good ones locally. As an added incentive to our clients we will pick up the tab at the closing”, Stewart Said.

Sales have been improving although the median existing home sale price is a moderate $124,000. The bulk of our business comes from buy of area buyers, International Buyers, and investors looking for second homes or rental properties.
For additional Informatin you can visit our website: www.floridahouseinfo.com or call us at 407-545-8002

A Home Warranty covers major components such as the roof, plumbing, electrical and appliances. Although there is usally a deductible for a service call if needed, the assurance of added protection is a great benefit to our sellers and an additional benefit to buyers giving them piece of mind the home has additional coverage. We though it appropriate in these tough times to give something back.

Typically a Home Inspection can run on average about $250-$350. “We recommend getting a Home Inspection with a State Licensed Florida Home Inbspection Company;and there are many good ones locally. As an added incentive to our clients we will pick up the tab at the closing”, Stewart Said.

Sales have been improving although the median existing home sale price is a moderate $124,000. The bulk of our business comes from buy of area buyers, International Buyers, and investors looking for second homes or rental properties.
For additional Informatin you can visit our website: www.floridahouseinfo.com or call us at 407-545-8002

ODORS- Florida is famous for its high humidity.

On rainy days odors will be more noticeable.  Particularly pet odors, even in vacant homes.

Musty smelling mildew will also be more noticeable in the rain.

ROOF LEAKS- Distressed properties particularly foreclosure do not come with a seller’s disclosure. As a result, we know very little about them or what potential problems they may have.  Why looking at homes  in the rain is a good idea is to check for possible roof leaks.

LIGHTING- Rainy days are typically dark days- potential home buyers should see the home at its darkest to determine what the natural light will be like when they live there. It will assist them in deciding where placing additional light fixtures may be the most beneficial. This is best accomplished on rainy days.

LANDSCAPING- Few properties are completely level, as a result water may pool ONLY when it rains.

The best way of determining where water may stand during in climate weather and potentially be a problem, or to inspect the drainage of the lot, is to view a home in the rain.

Four reasons most potential home buyers may not think of when viewing properties Rainy days can be your greatest source of information. Is this something you have thought of when looking at homes before?

We aren’t done yet.  In my market, of  Osceola County located in the heart of Central Florida which seems to be the epicenter of the mortgage meltdown crisis. Homes in Poinciana for instance have declined in value as much as 67% from previous highs.  Kissimmee, is not fairing much better, nor is the sleepy bedroom community of St. Cloud Florida which has no manufacturing, industry, or viable source of growth other than property tax revenues. 

 City Council members and bank lenders all seem to be clinging to the desperate hope that the Lake Nona Medical Center complex will somehow “save” them…a county away and up the narrow corridor of Narcoossee Road; which will somehow magnetically attract newcomers to this former cow town does not appear to be happening as many had hoped it would.   

In the dating world the term is known as “G.U.”  or “geographically unsuitable”.                   If St. Cloud, Florida is courting doctors and medical professionals; it appears it is ‘G.U.” as completion nears on the new V.A. Hospital which is still a 45 minute drive north.

So how will this impact the double dip in housing?  As new loans reset, old loans move foreward to foreclosure and banks grapple with what do with short sales- not to mention the  massive inventory of already foreclosed homes that sit in silence on the books of most major lenders in this area, the estimates are five years of shadow inventory has been placed on hold in order not to flood the market and further depress pricing. 

Foreclosed homes typically bring much less than short sale ot traditionally sold homes which are not distressed properties. The more distress the lower the prices.

inverse realtionship

It is an inverse relationship and one that certainly has had a teeter totter effect on pricing with the 800 pound gorilla of foreclosures weighing down end, while recovery dangles helplessly on the other in most of Central Florida.

Lenders who would not finance homes they now own are stuck in the mire they have created.  The double dip will not come fromt he banking industry but rather will come about from the rise in ordinary expenses.

Disposable income or lack thereof; due to rising oil prices, food prices, and utility costs are eatting away at the economic recovery American’s have been promised but seems to elude them.  Housing today needs to be viewed as a long term investment which will over time slowly (the keyword here being slowly) appreciate.

Are we in for a double dip?  What do you think?

Even if you are a decade away from retirement, investing in a low-cost home now, will be a good investment. Real Estate works in cycles. It goes up and down.  The staggering boom in Central Florida has resulted in  epic price reductions. Think of it as a massive 50% off clearance sale.

The over-supply of existing homes means buyers have many choices in every price range.  Your next St.Cloud Florida Home could cost less than $50,000.  Have you checked bank rates lately?  Mortgages are still available under 5% as a result, buyers who were previously shut out of the housing market are looking at homes as an alterative to renting.

Federally funded programs such as the Neighborhood Stabilization Program and USDA Rural Housing make owning a home possible for as little as $1000-with 100% financing.

These are not risky creative financing loans, they are Federal Funds available to anyone who qualifies. If you have been thinking that now may be the right time to looking into purchasing a low-cost home; you are right. 

The building boom of 2005 and the subsequent housing bust of 2007 has created an excellent opportunity for buyers now. Why?  Because of the amount of homes available for sale. It is nothing more than Supply and demand. When supply is high it is a Buyer’s Market-the excessive inventory pushes prices down. There is more selection, and buyers have better leverage. It is that simple. Bank foreclosures typically sell at the bottom rung of the price ladder. Yes, they may need some work, but the savings outweigh the work involved. Short sales are a rung up. They are homes which are still currently owned by real people not lending institutions, although the lender is owed more than the property is currently worth and will need to approve the sale of the home; they are often very good buys and timelines have improved dramatically under the revised HAFA guidelines.

At the top rung are privately owned traditional sales. These home owners may be downsizing, or relocating, but are not distress sales. Homes tend to be in more pristine condition so buyers will pay on the higher side of fair market value.

Even in the Great Depression of 1929, housing saw annual gains of 6%. what makes 2011 different from 1929 is that the gains have been slightly below that in year over year comparisons. Warren Buffet has said the time to buy is when prices are low, and no can dispute that the recent sales in Osceola County, St. Cloud, Kissimmee, Harmony, and Bay Lake Ranch support that theory.  Homes previously in the $300,000 are averaging $170,000 or less.  So climate in Florida is not pleasant in the winter, it appears to be a hotspot for housing prices as well.

 ”This funding will assist the Citizens of Osceola County by providing Homeownership opportunities at a continual affordable market rate” according to the Osceola County Neighbor Stabilization Program guidelines.

 Funding can only be used to assist in buying a primary residence. The units must be foreclosed and bank owned properties at the time of purchase.    

The properties must be located within the County’s Area of Greatest Need, which include areas of St. Cloud, Poinciana, BVL and Kissimmee.

The program authorized under Title III of the Housing and Economic Recovery Act of 2008, provides grants to purchase foreclosed homes to rehabilitate, resell, or redevelop these homes in order to stabilize neighborhoods and stem the decline of housing values.

• Applicants must meet Section 8 HUD approved income limits. (Documentation will be required)
•  A second mortgage note and lien on the property will be required for the assistance (no interest no payments)
• The focus is on homes that require little to no repairs.
•  Homebuyers must contribute a minimum of $1,000 towards the purchase.
• Up to 50% of down payment, primary mortgage reduction and closing costs may be eligible.

To apply, qualify and obtain  approval of homebuyers assistance, a pre-approval letter for financing for a primary mortgage must be obtained.

 Applicants must also attend Homebuyer counseling conducted by a HUD certified agency (8 hours) Times and dates can be found by clicking the homebuyers Counseling link highlighted above.

        Take advantage of the opportunities to own a home in my market of Osceola County.  As a locale area Professional I have had the pleasure of showing many first time home buyers homes in Kissimmee, St.Cloud, and BLV.   Let me help you find your first home!

Florida has one of the highest foreclosure rates in the Nation. The building boom of 2005- triggered what would be become, a tsunami effect of new housing. Flooding the market with an excessive amount of housing.  In my market of St. Cloud Florida located in Osceola County,  builders came by the  boatloads hoarding what was farmland and agriculture areas and feeding the greed of local municipalities with the promise of fat impact fees and  prolonged residential taxable properties which surely would “grow” the area into a budding metropolis. Fast forward to today- and the dream has become a nightmare. The field of dreams has become a field of foreclosures.

Homeowners lured by attractive mortgage products such as Interest Only loans, Stated Income Loans, and artificially low initial payments soon found their rates had been adjusted and they could no longer afford their homes. The housing bubble had burst. So who is to blame?  The buyers? The Bankers? Or the City Council for allowing uncontrolled growth of their communities? Truth be told… all of them.

Andrew Cuomo (D) New York, penned legislation in 2009 designed to protect the public from predatory lending practices. The so called HVCC (Home Value Code of Conduct Act) which now appears to be doing more harm than good to the general public.   It basically forbids appraisers to communicate with Realtors® who were their primary source of information when it came to property appraisals.  As a result of the barrier now established, the pool of “approved” appraisers are generally from out of the area. Lacking specific knowledge of what differentiates one community from another in counties they are even from.  Their valuations are often flawed and using comparables which include bank owned properties and short sale properties sold below market value in the past six months. They are  suppressing the market substantially. Appraisal is an art not a science. The factors include, age, condition, location and  size.  Inside amenities are not a factor. The result is market suppression of prices. Fair offers requiring financing are being rejected based on the low appraisal the lenders are receiving from the “Approved” pool of appraisers. Low appraisals have effected 57.7% of transactions!

Buyers willing to buy a Short Sale Property (where the home seller owes more than the home is currently worth) find themselves waiting many months for answers from the Lender Loss Mitigation Departments which are flooded with requests.

Lured in by below market asking prices, multiple offers are common place, frustrating buyers who are then asked to submit their “Highest and Best” offer which is above asking price. Sometimes they appraise at value and sometimes they do not which makes Buyers feel duped.  Overall buyers feel they are being played.

Foreclosed properties are no bargain either.  Angry borrowers have done damage to many of these homes; stripping out complete kitchens, damaging A/C units, removing plumbing fixtures, basically leaving them uninhabitable. Mold is also a health hazard. Particularly in Florida where high heat and humidity are the perfect breeding ground for mold which can cause health problems. However, if a cash buyer purchases one for rehab purposes…you now have a new “comp” which is going to adversely effect property values for the surrounding areas.

Buyers have always played a critical role in establishing Fair Market Value. A property is worth what they are willing to pay within in reason. However, the role of determining what that value is today has now been taken  over by the banks who have little idea what the properties they now own are truly worth and will often take a lot less than a buyer is willing to pay by under pricing them. or conversely create a bidding war which is no guarantee the home will appraise at the Highest and Best Offer in which the case the “winner” with highest and best offer actually loses.

This dramatically effects home sellers who either do not qualify for a short sale, but are having severe difficulty in keeping or selling their current homes.  Loan modifications fall again into the banks hands. Of a million applications only 170,000 homeowners have actually received help.  So at what point does the public have a say in how much a home is worth?   There is however a petition where you can voice your opinion.  121,833 people have so far signed it to REPEAL HVCC

If  you or someone you know has been adversely effected you may want to check it out.