Real Estate Market


new signCan you believe it is almost October?!  This year is going by  so quickly, but there is still time to move this year and get into a NEW home!

Here are a few things to consider if you want to sell your Orlando home before January 1st:

1.  First things first, the Fall is a good time to list your home.  Many people may decide not to list during the holidays.  And that is good news for you because that means there is less competition!  Another perk for listing during the holiday season is that most buyers that are searching are as serious as you about moving.  (Also check out the 5 Reasons to sell your home this fall)

2.  The average days on the market currently is about 70.  That means if you want to close before January 1st, you’ll want to list by very soon.  Most transactions take about 30-45 days to close once you are under contract.  To get to contract could take on average 70 days!  So it’s super important to price right from the beginning to ensure a successful sale by the end of the year.

3.  Beware of overpricing.    You may have heard that the real estate market prices are up 6% from this time last year!  That’s great news and yet the number of sales is down 16% and the prices are down month to month as well.  We are in what is considered a stable market with supply and demand being pretty equal.

The Orlando real estate market is cyclical and shifts.  In the last two years we’ve seen heavy demand as buyers have been trying to take advantage of the low prices and low interest rates.  That heavy demand and lack of listings caused the prices to rise.  That’s great news for you as you intend on selling!  But as prices rise, many other homeowners have the same idea leading to more supply.  Many New Listings have hit the market for now.  Some will sell over the next few months and other homeowners will take their homes off the market during the holiday season. Yet serious buyers will continue to search for their home!

Preparing to list?

The main issue I see as we continue into the next coming months is overpricing.  The market has improved drastically over the last few
years, but I have noticed some sellers future pricing, meaning they are pricing their homes in what they perceive the prices to be in a few months.  Yet those are the listings that are sitting on the market and not selling.  List your home fairly within the market range and you will sell before the end of the year and have a nice fresh start to 2015!

If you’re serious about selling your home before the new year, get started with a free consultation.

 

Image credit:  Land for sale by Crinity via Everystock – Creative Commons License

In the last 6 months the number of homes for sale in Orlando has continued to increase.  This time last year there were about 34% less homes on the market than there are now.  In the current market, about 25-30% of the listings are selling monthly on average.  With added competition comes longer days on the market and more expired listings.  As buyers have more options, they may decide to skip your listing for the one down the street.  There are a variety of reasons that they might choose another home over yours.  Find out the top 5 Reasons by watching the video below and download the full report at my website ExpiredListingClub.com.

The expired listing club is the one club where you do not want to be a member.  If you had a plan to move and your home did not sell or you are just thinking about selling – you don’t want to make these mistakes.  Find out why your home didn’t sell and let’s get together to get it sold!

Call me today at 407-494-2820 or visit the website for the full report with a detailed analysis of the 5 Reasons your home didn’t sell!  Did you have problems selling your home?

Young Woman Laptop StockSometimes it is fun to daydream about moving into a new home.  Maybe something a little larger, with a pool, or maybe a more walkable neighborhood?!  It’s fun to think about these things, but it can be a reality too.  Moving is all about timing and when it makes sense to sell your current home and find a new place.

If you’ve been daydreaming about moving in Orlando, why not make it a reality?  Start searching for Downtown Orlando homes today!  Or download my app and sync it to me to search while you are on the go!  (**don’t forget to register your info or if you contact me I won’t be able to answer any questions when you inquire!)

Reasons to Move Now:

1. You may finally be in a position of equity since the listing prices in Orlando are up about 13% since last year.  That might be just enough to get you moving into a bigger or better place.

2. And although the prices are up, the interest rates are still extremely affordable.

3.  The number of listings is up about 14% since last year, meaning you have more options to choose from when shopping.

Things to consider – since you will have more options to choose from – so will buyers for your current home.   So, as with any market, you need to price appropriately and competitively to actually get a contract.  We’re heading into Summer selling season.  Summer is notoriously the busiest time of year – get your home listed asap to take advantage of the pool of buyers that are looking to move over the summer months. They’re typically motivated by timing and the need to get into a new house before school starts or while they have vacation time planned – which is an advantage as a home seller.

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So let’s talk numbers – if you could sell your home for _______________ (fill in the blank), you would sell today?  Give me a call to see if it’s time 407-494-2820.

summerIf you’re considering purchasing a home in Orlando this summer, here are a few tips to consider!

1. Start now.  If you want to close by August you should give us a call now 407-494-2820.  It can take a little time to find the right fit, and then an additional 30-45 days to close once you’re under contract.

2.  It’s hot outside!  Florida weather is amazing, but it can get pretty hot during the summer months.  It can be especially heated if you’re visiting a few vacant houses that have no utilities.  If you’re home shopping all day be sure to bring water, keep the car AC running, and dress comfortably!

3.  Avoid short sales.  Short sales are not short.  (See what a short sale is here) They can take an average of 3-6 months just to have a response from the seller’s mortgage servicer.  At that rate you’ll be closing by the end of the year if they approve the sale at all.  A topic for another time!

4.  Join the club and have a strategy!  Summer is a peak selling season in many parts of the country because people have time off from work or want to move while the kids are out of school.  Keep this in mind when making an offer.  You’re probably not the only one who wants the house.  We can help guide you on a strong offer that will not be overlooked!

5.  Be prepared.  If you’re taking a summer vacation while under contract on a home, be prepared!  Send in every piece of information your lender might need for a loan before you leave town.  Be sure you will have access to internet and phone while you’re away.  Also – just to be safe – make sure you have access to a printer and fax machine.  We use electronic signatures, but not every agent does.  If you aren’t working with us – then you might need access to a printer and fax machine.  There are inevitably always little things that ave to be signed throughout the process.

Get started now by calling me at 497-494-2820 (ask for Kathryn)
Or fill out this simple form and I’ll get in touch shortly.

 

Home affordability in Orlando is still very high in the Central Florida area but it is declining.  The affordability is declining due to rising interest rates and rising prices.  However, if you have money to put down, you can still find quite a few options!  Downtown Orlando neighborhoods are particularly desirable so even the “affordable” homes need a little work.  The key is to be realistic with the type of home you can purchase and set aside money for some repairs/improvements.

According to the Orlando Regional Realtor Association, buyers who earn the Orlando median income ($55,670/year) have about 5,180 options to choose in Orange and Seminole counties.  Buyers earning the reported median income can afford approximately $288,418 (*with money to put down).  So let’s see what that $289k price tag gets you in the Downtown Orlando real estate market!

In and around Downtown Orlando there are 133 actively homes for sale at or below what the median income can buy you in Orlando.  These homes range in price from  $82,500-$289,000. The average “affordable” home is about 1400 sq. ft. with 3 bedrooms and 2 bathrooms and will cost you about $207,000.  At this price, you probably have a little work to do to make it your own.

snapshotmap Affordability

If you have the ability to put 20% down and can go up to the top of the affordability scale into the $280,000 range, there are some lovely options for sale in Downtown Orlando – Just NOT that many!

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If you are a first time home buyer earning the reported median income of $37,856/year; you have about 3,079 options in the same area.  First time buyers earning the median reported income can qualify for homes around $174,332 or less.  If you’re a first time buyer earning around this income you’ll have only about 35 homes to choose from in and around Downtown Orlando.  The average “affordable” home under $175,000 is about 1179 sq. ft. with 3 bedrooms and 1 bathroom.   The median price of homes that fall into this affordable category is about $142,000.  And with that you’ll need to bring your tools and make some needed repairs!

 Start searching homes in Downtown Orlando today!  Or find out what you can afford by using our simple mortgage calculator.

Image of roadIf you can believe it, it is almost May.  That means it’s time to look back at the first quarter numbers for 2014 and see how things are going in the Orlando real estate market and where the road will lead for the rest of this year.  The general word on the street is that real estate market in Orlando is back.  I agree that the market has had a huge turn around since the lows of 2010; but some people are getting a little ahead of themselves.

The median sales price in Orlando is up about 14% since last year at the same time. That’s a great increase as an average market only goes up about 3-5% per year.  The problem I’ve been seeing lately is that sellers believe that the market has increased by much larger numbers.  If you were under water a year ago, you may in fact have enough equity to sell, but you won’t
have enough to make a sweeping profit.

We are in what is called a normal market at the moment.  Meaning there is a balanced number of buyers and sellers in the Orlando housing market.  I realize that over the last 10 years no one has seen this type of market and this new (normal) market confuses people.  Over the last 10 years we’ve seen a bubble burst, a huge downturn with epic declining home values, and a shift back to a sellers market and multiple offers in what seemed like the blink of an eye.  Now we’re finally to an pretty stable market and this is a good thing for now.  

Things to Watch:

1.  How many new listings come on the market?  We have more listings and more competition since last year.  In fact, the number of listings since last year is up 40% – that’s almost double!  That’s a lot more competition and as the prices go up and the competition goes up that can make things more difficult to sell.  If we are flooded with new listings, we will quickly see a shift back to a buyers market and possible flat-line.

2.  How many pending sales are in motion?  Pending sales are an indicator of future sales and how the market will do in coming months.  The number of pending sales was on the decline towards the end of 2013 but they are back on the rise from January as we enter into the busier season.

Where do you think the real estate market will be at the end of 2014?  Need help navigating the real estate world?  Call us today 407-494-2820

 

Image credit:  “Darwin’s Shot” by Scott Robinson via Flickr and Creative Commons

CapturerealestateanalysisPart 2 of the Selling Your Home Series is about choosing an agent.  So, you read last week’s post Part 1 and decided that now is the right time for you to sell your Orlando home.  Great news!  Now what?

Well your first step is to hire the right agent for the job.   If you are selling a home in Downtown Orlando, College Park, or Winter Park scroll to the bottom and fill out our form.  You found the right agent!

If you’re unsure of who might be the right agent for the job, look for signs in your neighborhood.  Is there any one agent that seems to dominate the area?  If you look at recent sales online in your area, is there one agent that has a large number of them?  That could lead you to someone who is highly knowledgeable about the area.  Knowledge and sales history doesn’t necessarily make that agent the best agent for you personally.  Get to know them and their business a little better by asking the questions below.  If you’re still torn visit next week for deciding between two agents that tell you different prices for your home!

10 Questions to Ask Your Realtor about Selling a House

1.  Are you a full-time professional real estate agent? How long have you worked full time in real estate? What professional designations do you have?

    • As with any profession, the number of years a person has been in the business does not necessarily reflect the level of service you can expect, but it is a good starting point for your discussion. The same issue can apply to professional designations. 

2.  Do you have a personal assistant, team or staff to handle different parts of the purchase? How will we communicate with you/them?

    • It is not uncommon for agents who are successful to have assistants or other team members.  You may want to know who on the team will take part in your transaction, and what role each person will play. If you have a question about fees on your closing statement, who would handle that? Who will show up to your closing?

3.  Who responds to emails and how quickly?

    • Again this establishes how you will communicate with your agent and how quickly you should expect a response from them.  A good agent should be able to respond to you by the end of the business day. 

4.  How will you keep in contact with me during the selling process, and how often?

    • It is important to understand how exactly you will be notified of activities/marketing/showings/etc.  We have a communication commitment that outlines exactly how we will communicate with our sellers.

5.  What is your average market time versus other agents’ average market time?

    • The time it takes to sell homes can indicate how well an agent is marketing – however keep in mind – some sellers choose a list price higher than the agent recommended and that can add length to the sales process.

6.  Will you give me names of past clients?

7.  What is your average list to sales price ratio? 

    • This number tells you how close to asking price the agent obtained for their sellers.  Our list to sales price ratio was a little over 100% in 2012 and 2013.  The average in Orlando is about 96%.

8.  How will you get paid? What other costs might we incur?

    • In Florida the seller pays the entire sales commissions. Sometimes, brokerage offices will have other small fees, such as administrative or special service fees, that are charged to clients, regardless of whether they are buying or selling. Ask for an estimate of costs from any agent you contemplate employing.

9.  How would you develop pricing strategies for our home? 

    • Although location and condition affect the selling process, price is the primary factor in determining if a home sells quickly, or at all.  Ask your agent how they created the market analysis, and whether your agent included For Sale by Owner homes, foreclosed homes and bank-owned sales in that list.

10.  What will you do to sell my home? Who determines where and when my home is marketed/ promoted? Who pays for your advertising? 

    • Your agent should have a marketing plan.  If they do not – then they do not have a clear picture of how/who to market your home.  We have a Custom Marketing plan for each listing in which we target the most likely buyer for your property and gear the external marketing around this profile.

Get Started selling today with our team! Call 407-494-2820 or complete the form below.

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