New Contracts

Pending sales reach all-time high; median price makes a monthly gain

(March 19, 2010 – Orlando, FL) Members of the Orlando Regional REALTOR® Association filed 4,043 new sales contracts in the month of February, the greatest monthly tally since the organization began recording the statistic in 2005 at the height of Orlando’s red-hot market. The number represents a jump of 66.11 percent more new contracts filed in February 2010 than in February 2009 (2,434).

courtesy of ORRA email

Short sale incentives

Daily Real Estate News | March 22, 2010 | Share
Short-Sale Incentives Start April 5th


Potential buyers of short-sale homes might consider waiting until April 5th before making a formal offer.

That’s the date the federal government will begin offering lenders financial incentives to hasten the process. Under the new rules, banks will seek a BPO before the property is listed for sale and let the sellers know a minimum number they are willing to accept. If the sellers bring a buyer with a good offer, the lender must accept it within 10 days.

Not all sellers are eligible for the program, dubbed the Home Affordable Foreclosure Alternatives (HAFA), but enough are that it is probably worth waiting.

Source: The Wall Street Journal, June Fletcher (03/19/2010)

Oprah Surprises Ocoee Middle School on today's show

Ocoee Middle School will be featured on Oprah today at 4 p.m. (WFTV, Channel 9, Orlando).

Back in December the entire study body recorded a "flash mob" video similar to one done in Chicago at the start of Oprah’s current season. The Ocoee Middle School flash mob was recorded to promote the virtues of reading, with the production assistance of Full Sail University and permission from Black Eyed Peas to adapt one of their popular songs.

Oprah loved the video and the school’s creativity so much that she is featuring it on today's show. The show segment was broadcast live from Ocoee Middle this morning and taped for replay this afternoon. Oprah announces, via satellite, to principal Sharyn Gabriel and the assembled body of students and staff in the courtyard that she and Target will give Ocoee Middle a complete library makeover, add 2,000 books and all new computers.
Watch the video here: http://www.youtube.com/watch?v=x6D9jiEYxzs

It's easier to get a jumbo loan

The jumbo loan market is starting to thaw, making it easier for move-up buyers to borrow.



Rates on jumbo loans of more than $729,750 in highest-priced markets rose during the financial crisis and lending standards tightened to the point where borrowers couldn’t refinance or get a new loan.



In the last couple of weeks, the average interest rate on a 30-year fixed-rate jumbo fell to 5.79 percent, a five-year low, according to rate tracker Informa Research Services. Rates are even lower on hybrid adjustables.



The availability of these loans suggests that banks are feeling more confident since Fannie Mae, Freddie Mac, and the Federal Housing Administration do not insure them.



Source: Los Angeles Times, E. Scott Reckard (02/28/2010)

From this weekend's Sunday Times (London,UK)

Florida's property market has collapsed, but with the worst over, it could be time to swoop in the Sunshine State

Lucy Denyer

February 28, 2010





It's freezing outside, there are at least a couple more months to go before the weather warms up, and the idea of a holiday home in the sun is probably pretty tempting right now. But Spain's not hot enough, and the Caribbean and the Seychelles are too expensive. Could Florida be the answer?



With its country-club lifestyle and balmy climate, the Sunshine State has traditionally been popular with British buyers. In the past 18 months, however, it has fallen out of favour, as prices have come crashing down by 50% or more from their peak. Florida had the second highest foreclosure rate - the equivalent of repossessions - in America in 2008, affecting one in 22 properties. Many remain empty and abandoned, after being seized by the banks.



"Some people just dropped the keys and left - they were effectively handing the property back to the bank," says Todd Swann, owner of Swann & Associates, an estate agency based in DeLand, central Florida. "Pricing didn't seem to matter when times were really desperate. It felt like we were working in a morgue."



In recent months, things have started to pick up. Although prices remain low, properties are starting to move again as people try to make the most of the bargains on offer. For UK-based buyers, there is also the exchange rate to consider: although the pound is already at a nine-month low against the dollar, some analysts expect further falls, which would add to the attraction of buying now.



At face value, there do seem to be incredible deals out there, with flats in some condominiums on sale for as little as $15,000 (£9,700) - sites such as foreclosuredataonline.com give an idea of what's on offer. Yet it's a case of caveat emptor, warns Bill Cowie, director of British Homes Group, a Florida-based company running online auctions where prices start as low as one cent, with no reserve. "A $15,000 condo might sound good, but it's in a building with no homeowners' association, with a wreck of a kitchen," he says.



Instead, do your research, visit America in person - don't even think about buying blind off the internet - and make sure your chosen area is an attractive one with good infrastructure.



In Orlando or other inland areas, it's worth considering a gated community, for a property you can lock up and leave. Stirling Sotheby's International Realty (stirlingsir.com) has a three-bedroom house in the Palisades, a golf community in Clermont, west of Orlando, for £120,000; the owner gets access to a pool, boating and tennis courts.



Northeast of Orlando, in the DeLand area, you are near Ocala National Forest and St John's River, and still only an hour from Mickey and his pals.



Properties with land are a particularly good buy now - land values have dropped so sharply that the extra acreage is almost free. A three- to four-bedroom detached property, with outbuildings and a pool, costs between £116,000 and £162,000.



As with any overseas purchase, there are potential pitfalls. If you plan to a buy with a American dollar mortgage, then any further fall in the pound will increase your monthly repayments; for a fee, you can hedge against this, through a company such as World First (worldfirst.com). Or take out a mortgage half in pounds and half in dollars. Don't forget that you will also be liable for real-estate tax - a yearly fee equivalent to 2% of the purchase price.



Nor should you count on funding your purchase by letting out the property: many condominium associations have rules governing how many rentals you are allowed in a year. Other local restrictions can also apply.

Claiming Tax Credit

IRS Clarifies What's Needed to Claim Tax Credit


The Internal Revenue Service has clarified which documentation taxpayers need to submit to claim the first-time and move-up homebuyer tax credit.



While the IRS is still requiring the filing of Form 5405, it is not demanding that all parties’ signatures be on the HUD-1 settlement document in areas where requiring both the buyer and the seller to sign the document isn’t common.



The IRS clarification says: "In areas where signatures are not required on the settlement document, the IRS has clarified that it will accept a settlement statement if it is completed and valid according to local law. … The IRS encourages those buyers to sign the settlement statement prior to attaching it to the tax return.”



For repeat buyers, the IRS is seeking documentation that home buyers have lived in the previous property for a consecutive five of the past eight years. Proof can include property tax records, home owner insurance records, or mortgage interest statements.



Source: Washington Post (02/20/2010)

Johns Lake Pointe, Winter Garden

Previous customers and clients - the remaining properties at Johns Lake Pointe have now been taken over by the bank and are currently off the market. The receiver is assessing their value and they will then be remarketed as bank-owned/foreclosures. Contact me if you want to know when they are available.

They include -

ALICANTE : 2315 sf / 4 bedrooms / 2.5 bathrooms / 3 car garage

SYCAMORE : 3743 sf / 6 bedrooms / 5.5 bathrooms / 3 car garage

LAUREL OAKS : 2563 sf / 4 bedrooms / 3 bathrooms / 3 car garage

Lake Cane, Dr.Phillips

Dr.Phillips - Phillips Crossing and Lake Cane

Hogwarts

Hogwarts appearing through the trees...............................

Dr. Phillips

Dr. Phillips

Dr.Phillips

Evening at Sand Lake

Dr.Phillips Park

Making friends in the Dog Park and The Splash Zone

Dr. Phillips

12/2009

Xmas at Universal

Top Five Tips for sellers

According to the HomeGain survey, the top five home improvements that Realtors recommend to home sellers based on cost and return on investment (from highest to lowest ROI) are:
1. Cleaning and de-cluttering ($200 cost / $1,700 price increase / 872% ROI)
2. Home staging ($300 cost / $1,780 price increase / 586% ROI)
3. Lightening and brightening ($230 cost / $1,300 price increase / 572% ROI)
4. Landscaping ($320 cost / $1,500 price increase / 473% ROI)
5. Repairing plumbing ($385 cost / $1,250 price increase / 327% ROI)

Read more: http://rismedia.com/2009-11-09/home-sellers-top-5-home-improvement-projects-based-on-cost-and-return-on-investment/#ixzz0WUpgEzUt

Buyers issues

RICHMOND, Va. – Oct. 21, 2009 – When the Federal Reserve enacted new rules to protect homebuyers from unfair and deceptive practices, it also made it more difficult to qualify for mortgages.With changes in the Federal Truth and Lending Act, “lenders are examining buyers’ credit under a microscope,” says Bruce McClary of ClearPoint Credit Counseling Solutions, a national nonprofit organization that helps consumers overcome personal finance difficulties. “These more stringent lending standards combined with the expiration of the first-time homebuyer tax credit on Nov. 30 will undoubtedly create even more obstacles for homebuyers.”McClary believes that homebuyers can address the situation best by maintaining a good credit score. He advises consumers to monitor their credit reports, and, if they spot any issues, no matter how minor, to work toward resolving them:• Address credit card debt. If necessary, seek free credit counseling from a trustworthy nonprofit agency.• Save for a downpayment. When the $8,000 first-time homebuyer tax credit expires, buyers will need more of their own money to buy a home. A healthy downpayment shows ability to pay. • HUD-approved housing counseling agencies offer free first-time homebuyer classes and counseling. Buyers who understand the home buying process, real estate terms and how to shop for a mortgage have an advantage. They can prepare for the process and avoid becoming victims of predatory lending. For buyers with credit report issues, a credit counselor can strategize steps for clearing up inaccuracies, paying down debt and improving the numbers.© 2009 Florida

Sales continue to rise

From last weeks Orlando Sentinel..
Lower-priced homes and condos sent resales soaring again last month in the Orlando area, continuing a rebound that began six months ago.The Orlando Regional Realtor Association reported Tuesday that its members sold 1,219 homes, condos and town houses in February, up more than 28 percent from the same month last year. Pending contracts in February were double last year's total, an indication that the momentum in existing-home sales continues to build locally even as the nationwide downturn in housing persists.Pending sales by Orlando Realtors rose to 4,348 in February, compared with 2,175 a year earlier. The Realtors also noted that sales so far this month in the core Orlando market are off to a strong start.

New tax credit details

Feb. 17, 2009 – Florida Association of Realtors has just released the following details of the $8,000 tax credit. According to the most recent analysis, the following rules will apply – though things could change as tax professionals weigh the details:
• The deduction is worth 10 percent of a home’s value up to $8,000, which means all homes worth more than $80,000 could qualify for the maximum amount.
• There is an income limit to qualify. A married couples’ modified adjusted gross income (MAGI) should be under $150,000 and single filers’ MAGI should be less than $75,000.
• Partial tax credits may be available for married couples with MAGI incomes over $150,000 but under $170,000, and single filers with incomes over $75,000 but under $95,000.
• If married couples file separately, they can both claim 5 percent of the home purchase ($4,000 each for a home over $80,000) on their tax returns.
• It’s a tax credit, not a deduction. That means the entire amount goes back to the first-time homebuyer unlike deductions, such as mortgage interest, that are subtracted from gross income before tax is calculated. If qualified for $8,000, the buyer gets $8,000, even if they would not owe that much in taxes otherwise.
• The tax credit applies to homes purchased between Jan. 1, 2009, and Dec. 31, 2009.• The tax credit does not have to be paid back, providing the homebuyer keeps the property for at least 36 months and resides in the home.
• To qualify as a first-time homebuyer, the purchaser cannot have owned a home within the previous three-year period. However, ownership of a vacation home or rental home does not disqualify the buyer.
• If purchasing a new home, the effective date to receive the credit is the first day the homeowner actually lives in the house. If construction began in 2008, that buyer could still qualify. And if construction begins in 2009 but the owner does not take possession until 2010, the buyer would not qualify.
• The tax credit can be claimed on 2008 income tax forms even though the purchase took place in 2009. A buyer could close on a home the same day that President Obama signs it into law, fill out their income tax forms the next day, and receive the tax credit fairly quickly. The tax credit is not a downpayment, but it could be used toward a downpayment if first-time homebuyers plan ahead. U.S. taxpayers have money withheld from every paycheck for income taxes. If they owe more tax than the amount deducted, they pay the IRS; if they owe less, they get a tax refund. By anticipating at least an $8,000 refund in early 2010 when they file 2009 taxes, these buyers could cut down on their tax withholding this year and save the money toward a downpayment. There is one caveat, however: Should they not buy a home in the qualifying period, they would still owe the IRS the money, and reducing their withholding amount could result in a high bill at tax time.
Thank you FAR!

Improving sales figures.

The latest FAR (Florida Association of Realtors) report shows increased sales activity for the fourth consecutive month with a 27% increase in existing home sales in a year to year comparison. The NAR (National Association of Realtors) reported a 6.5% increase in sales in December compared to November.

There has been a noticeable increase in the number of buyers since Christmas, too. I'm not complaining about how busy I've been but time for an occasional coffee would be nice.

New listings are continually being added to the market so inventory levels remain high. I suspect it will be a buyer's market for some time.

International buyers

U.S. real estate is still considered a prime investment opportunity and a "safe haven" for foreign buyers to put their money. For those in a position to take advantage, there are some great investment deals in today's market. In a survey of Realtors last year (NAR), more than 8 out of 10 respondents said foreign transactions accounted for up to 25 percent of their sales. A large portion of their international clientele came from Mexico, the United Kingdom and Canada.
Florida is the destination of choice for many international buyers - 26 percent of foreign buyers represented in the survey purchased in the Sunshine State. 16 percent bought real estate in California and 10 percent purchased in Texas.
In today's economic climate, international buyers are recognising it's a great time to buy.

Living in Orlando

When you live anywhere, life revolves around work, school, shopping, paying bills, etc and some times it takes an outsider to remind you of what makes your area special. My daughter and her family have just left and we spent two weeks doing the tourist side of Orlando, which meant I saw it through the eyes of my 4 year old grandson, Jack. When not floating in the pool, we took him to the parks. His fascination with dinosaurs made the Jurrassic Park ride at Universal Studios "Awesome" (Well, "Awthome" actually because he hath a lithp!) Also the new dinosaur cafe at Downtown Disney was a hit. But the highlight for him was meeting his heroes - Spongebob Squarepants (Wow), Buzz Lightyear (I'm a thpathe ranger) and Spiderman (stunned silence, eyes on stalks). When he did recover, he told everyone he saw that 'piderman knew his name! Last year another daughter was here with my 5 year old grandaughter so we lived the Disney Princess life for two weeks. I love it. Both of them think that I am responsible for the magic and fireworks so, naturally, I must be Tinkerbelle. (Hence the Tink necklace on my profile photo - a Christmas present from them.)

They've left now and I've spent this week helping 12 golfers find accommodation and courses for next year's vacation, a huge learning curve but a pleasant departure from my normal real estate work. I do love living here!

An immigrant's tale

The phone rings, I answer it.
"Hi, this is Dave calling from Coventry in England. We want to buy a house in Orlando. We're moving over, can you help?"
"Of course I can" I reply. "Which area do you want?"
"Well ,anywhere really, it's all nice" Oh dear, my heart sinks.
"Where will your job be?" I ask.
"We'll sort out jobs once we're settled, so it doesn't matter where we buy" says poor Dave.
"If you don't have a job, how have you managed to get a visa?" I ask.
"What visa?"
This conversation happens all too frequently. Since Britain (UK) joined the European Union back in the 70's and the borders opened, any member of the EU can work and live in any member state. Add Canada, Australia and New Zealand to the list and you can understand how Brits think that emigration is just a case finding somewhere to live and moving there.
My heart goes out to them. For some it's just the post-vacation honeymoon period. Many return to work and normal lives with a heavy heart, but recover quickly once their routine starts again. For others it doesn't happen. I was one of them.
I first landed on American soil in 1986 and as my feet touched the ground I felt like I had come home. Don't know why, can't explain it, just did. So started a long and difficult battle to move from England to the USA which I shall be telling over the coming weeks in the hope that it offers information to those that need it and hope to some that are travelling that path.