I am contacted on a daily basis by clients looking to purchase Orlando real estate with less than stellar credit. It's my personal belief that everyone can benefit from understanding how the credit reporting agencies rank you on your credit and what you can do to improve or repair your credit score.
I'm not going to cover in any great detail the benefits of why it is good to improve your credit. I think we all understand the benefits of having a good credit score. There have been countless case studies performed which you may research on your own time that show how having good credit can save the average person hundreds of thousands of dollars over their lifetime and millions of dollars in investment opportunity that otherwise could be loss by having less than perfect credit.
Over the next couple of weeks I will be putting together a series of blog posts and reports that will help you understand how credit works, how to repair bad credit and how to improve your overall scores. If you have a good understanding already of how credit scores work this will be a good refresher for you. If you have limited knowledge about credit scores or have bad credit, then these reports will be a MUST READ.
How Can I Obtain My Credit Score?
One place to order your credit report is from MyFico.com. You can order all three reports for about $47.85. The three reports you will want to order are from Equifax, Experian and TransUnion which are the three major credit reporting bureau's that most companies look at when considering you for a loan, a mortgage or a credit card.
Contrary to popular belief, your credit score will not be negatively impacted by ordering your own credit score. You only lose points when a third party orders your credit report for the purpose of lending. I'll talk more about this in a future post.
What Is Considered A Bad Credit Score?
Many people ask me what is considered bad credit? The truth is that the score that is viewed good or bad ultimately depends on the person loaning you the money. Many will simply charge a higher interest if they put you in a high risk category. So having a low score does not necessarily mean that you won't be offered the loan, but more than likely you will be asked to pay a higher rate of interest or be required to submit a larger down payment. What's important is to obtain the highest score possible so you are eligible for the best rate possible. Credit scores are exactly like dieting in this regard...there are a few quick fixes, but mostly it takes a lifestyle change which will include time and dedication to achieve the overall long-term objective.
The majority of the people in the US have a FICO score of 700 or higher, therefore many lenders use 700 or 720 as the cut off point for what is considered to them as "Good Credit," and to which they offer the best rates. Many also use the score of 620 as the cut-off point for any type of lending (though not all). Those companies that deal with borrowers below that level are called 'Subprime lenders'. The term subprime typically refers to borrowers that are considered risky or less than 'Prime'. Below is a list of credit scores and the percentage of Americans that fall into each category. This list should give you a good idea of where you stand in comparison to other Americans:
300-499 - 2%
500-549 - 5%
550-599 - 8%
600-649 - 12%
650-699 - 15%
700-749 - 18%
750-799 - 27%
800-850 - 13%
The Five Most Important Factors That Affect Your Credit
Before I get into the nuts and bolts of actual credit building, let's take a look at the most important factors that will affect your overall credit scores, then later we'll move onto the specifics.
1. Your Payment History
Your payment history makes up 35 percent of your score. This makes a lot of sense as lenders want to know whether you pay on time and how long it has been since you last had a late payment or if you've had one at all.
When it comes down to negative marks like late payments, your score will focus on three different areas:
Recency - How recently you got into trouble. The more time that goes by, the less it will affect your score.
Frequency - It's logical that someone that has had only a few late payments will look better to a lender than someone that is frequently late making payments or frequently defaulting on payments.
Severity - There is a definite hierarchy when it comes to how bad each offense is. Obviously being 30 days late isn't as bad as being 120 days late, being in collections, having tax liens or a bankruptcy on your credit.
2. How Much You Owe
How much you owe makes up 30 percent of your score. This takes into consideration how much you owe on all of your accounts as well as how much individually is owed on each account.
To put this in perspective, most Americans use less than 30 percent of their total credit limits. Obviously you want to be in a range that is considered the norm or above normal. Those that have maxed out their cards or use up their available credit have a higher default rate and are viewed as a high risk to lenders.
You should try and keep each of your credit card debts under the 30 percent range. This score also looks at how much you owe on installment loans such as auto loans and mortgages, compared to what you originally borrowed. Paying down balance over time will help your score on installment loans.
3. How Long You've Had Credit
How long you have had credit lines will make up 15 percent of your total score. You can have a good score with a short history, but the longer you've had open credit lines, the better the score will be. To put this into perspective, the average American's oldest account has been established for about 14 years. The score considers the age of your oldest account, as well as the average age of all of your accounts.
Therefore, if you are trying to improve your credit it is not always wise to close out older accounts as closing down an account may reduce the overall average of the age of your trade lines.
4. The Last Time You Applied For Credit
Applying for credit will make up 10 percent of your overall score. Applying for credit can ding your score a little and applying for lots of accounts in a short period of time can seriously impact the score. The average American has not applied for credit or opened a new account in 20 months. It makes sense that someone that is in financial trouble may apply for a lot of new credit accounts to help them through a rough period of their life, therefore making them a credit risk in the eyes of a lender.
The score also takes the following factors into perspective:
How many new accounts have been applied for;
How many recent accounts you have opened;
The length of time since you last applied for an account;
The length of time since you last opened an account.
When people are buying real estate here in Orlando, they often ask me if shopping around to different mortgage brokers for a better rate will hurt their credit? This is a myth that many mortgage brokers are still using to stop you from going to their competitor. Providing you are shopping around in a concentrated period of time, it should not affect your credit score. I'll talk more about this later as we begin to discuss some of the credit score myths.
5. The Types of Credit That You Use
The types of credit that you use will make up 10 percent of your score. The FICO formula wants to see a healthy mix of credit.
To get a healthy score you typically need to have both revolving debts like credit cards as well as installment debts like a mortgage, a car payment or a personal loan. Additionally, the major credit card companies like Visa, AMEX, and Discover are better than department store cards.
To put this into a better perspective, the average American has 13 trade lines showing on their credit report with typically 9 credit cards and 4 installment loans.
- I hope this has provided you with a good introduction to credit scores and what lenders are looking for. Please check back over the next couple of weeks as I update new reports on building your credit, repairing your bad credit and cover other items such as identity theft and common myths and misconceptions regarding credit scores.
Feel free to contact me at any time, should you have any questions relating to Orlando real estate or credit worthiness. I may be reached directly at (407) 346-5331.
Did you know that the average American family spends over $1,600 a year on their electricity bill? Unfortunately, the majority of the energy consumed is wasted. Not only is that energy wasted the electricity that we generate by fossil fuels for the average family home puts more carbon dioxide into the air than that of two cars.
I'm always looking for ways to save money wherever possible and do my small part for the environment. If you're like me, then you're most likely throwing away money in the name of convenience on a daily basis. Don't you think it's time we both did our bit for the environment and saved a few dollars at the same time?
With just a few minor adjustments in our behaviors and a few tweaks here and there I'm sure we can all knock off fifty or sixty dollars from our energy bill each month, perhaps even more? With these same tips that I'm about to list below, my father was able to recently reduce his Orlando energy bill by an additional $150 per month (from $350 a month down to $200). I don't know about you, but I can sure think of a lot of little extras I'd like to buy with that hundred and fifty each month.
TIP 1 - Air Conditioning:
A/C and cooling your house in Florida can account for over 50% of your electricity bill. 78 degrees is the magic number for saving money and for every degree over that it is estimated that you will save between 6 and 8 percent on your cooling bill.
Keep your A/C on auto and shut it off during the day when you are at work or set it to 85 degrees. If you don't have an auto programmer thermostat, you can upgrade your existing one pretty cheaply by running off to home depot and getting one (around $30 to $40 and they're easy to install). It'll pay for itself in no time at all - perhaps even the first month. I particularly love the programmers that have three settings during the night time, day time and afternoons and then different settings for the weekends. You can even change the settings to keep the house cooler every Wednesday if Wednesday is the day when you are home every week.
Here are a couple of other little tid bits that will help out the A/C unit:
Change the filter out once a month so that your A/C unit isn't struggling to cool the home as it is pushing air through the filter (more hygienic as well).
Use your shades, drapes and blinds to keep the heat out of the house
Use ceiling fans to feel cooler when you are in a room, but make sure you shut them off when you leave.
Check all windows and doors - make sure they aren't letting the cool air out. Buy some caulk and weather stripping to give your windows and doors a good seal to keep that cool air in. Windows and doors are the major cause of cooling loss in a home. Weather stripping and caulk is very cheap and can save you a lot of money.
TIP 2 - Did you know that switches go ON & OFF?
I just noticed that I'm starting to sound like my parents. Haha. I can even hear my parents telling me that I'm trying to cool down the neighborhood by leaving the doors open while the air is running.
Anyway, now that I'm starting to sound like my parents, "How hard is it to shut off a light when you leave the room!?" I don't know about you, but I think I've learned to be lazy by not shutting off the lights, therefore it is only logical that I can unlearn this behavior and use the off switch a little more often.
This goes for other electronic items as well like computer monitors and televisions. Even when in standby mode both TV's and monitors utilize electricity. Plugging these devices into a power strip can not only give you protection against lightening and power spikes, but can also make it easier for you to shut off the entire strip and save energy before going to bed each night.
TIP 3 - Save on your hot water heating bill
Your hot water heating is another biggie when it comes to chewing up the electricity bill. By removing the front access cover on your hot water heater you can adjust the temperature with the turn of a screwdriver to 120 - 125 degrees for optimum efficiency. Additionally, there is a lot less chance of children being scalded by hot water at this temperature.
If you want to go one step further (and it's definitely worth it), again you can purchase a timer for your hot water from home depot or any other hardware store for around $40. These timers are very simple to install and can be regulated for heating in the evenings and mornings as well as different settings for weekends for those of us that like to sleep in on a Saturday. Why heat water at 3am in the morning or midday when you are going to be at work?
TIP 4 - Lighting
Lighting consumes as much as 25% of your energy bill so it is a big factor in reducing your energy consumption.
Replace all of your incandescent lights with low wattage fluorescent light bulbs. Yes, I know they're a little ugly but it's for a good cause right? A 22 watt fluorescent bulb will have the same output as a 100 watt bulb. If you are renting...no problem, just remove the existing lights and put them in a box. You can return them once you move out and take your fluorescents with you because they are going to last you for many years to come.
Compact fluorescent light bulbs will last you 10 times longer than a incandescent and will typically use 1/3 the amount of electricity in comparison.
But don't stop there with the lighting! If you have your garden all lit up during the evenings, there are now cheaper more energy efficient bulbs that utilize solar power for your garden. The lights I use charge all day and typically run from the time the sun goes down until about 3am in the morning.
TIP 5 - Incentives for the kids
The young ones are often the biggest energy thieves in the household. We need to get these offenders on our side and make them our allies by offering incentives to turn off the lights, shut down the TV and shut doors when the A/C is on. What better way to do this than to add to their allowances the difference in savings or the full amount of the average savings from your monthly Orlando electric bill?
Well, I hope you've found these tips to be helpful. I'd love to hear about some of your success stories. Please feel free to write me or post a response to this blog.
I'm often amazed at how many people visit Florida and have never heard about the opportunities of renting a vacation home. If you've ever driven through the southern part of Orlando in areas such as Kissimmee or Davenport (just south of the theme parks), then you've been driving directly through the heart of a prime investment opportunity and a fantastic alternative to hotel rental that has been overlooked by the masses. And, regardless of the current depreciating market, this industry is thriving. Here's why...
An estimated 50 million tourists visit Orlando every year, either on business, to visit family or to enjoy the numerous theme parks and the fantastic weather this great city has to offer. Sadly, most are cramming themselves and their families into 500 sq. ft. hotel boxes at the expense of thousands of dollars per week. Timeshares thrive on the promotional pitch of offering perhaps an additional 300 or 400 sq. ft. alternative than the traditional hotel room has to offer - all I have to say is "Look Out Timeshares," Vacation homes are coming!
The vacation home market is really nothing new, but what is new is the incredible growth that this market is experiencing due primarily to internet savvy investors and more mainstream advertising portals that set out to promote this alternative style of vacationing. One such portal is Vacation Rentals by Owner that sets out to help homeowners to promote their own rental properties without the assistance or the expense of hiring a property management company. Additionally, high gas prices and the recent down-turn in the economy are both incredible driving forces in a recent change in vacation consumerism. Consumers are now looking for vacation opportunities that give them the most bang for their buck without having to give up all the creature comforts that their families deserve. Vacation homes are fast becoming the panacea to providing families with some major buck-bang, plus a little more than what they bargained for.
Vacation homes are a win/win for both the investor that owns the home and the vacationer that rents the home. Let's first take a quick glance at what the renter receives, then we'll move on to why vacation homes can be a smart investment opportunity in a depreciating market:
Firstly, vacation home prices are seasonal just like Hotel rentals. So let's use peak season rates as an example. For $1,300 to $1,500 for the week (seven days) during prime season a vacation rental as an example can offer you the following:
A five or bedroom home, in excellent condition & professionally cleaned;
1,800 to 2,800 Sq. Ft. home;
With fold out couches the home will more than likely sleep 8 to 10;
Fully furnished;
Plasma TV's and DVD Players;
X-Box or Nintendo's with games for the kids;
Telephones where local calls are FREE;
Pool Table;
Air Hockey Table;
Ping Pong Table;
Dart Board;
Private Heated Pool;
Jacuzzi;
High Speed Internet;
Golf Course Neighborhood;
Washer & Dryer - excellent for extended stays or for children (plus less packing involved);
Club House on Premises with DVD rental, Pool, Tennis Courts, Jacuzzi, Fitness Center, Cyber Cafe and Kiosk with food and basic consumer items such as towels, sunscreen, bathing suits etc. Not to mention an in house concierge service to assist you with getting directions or tips on where to go for basic needs or entertainment purposes;
Want a bottle of Moet on ice for when you and your loved arrive for a weekend getaway? Yes, it's not uncommon for vacation home owners to provide an ice cold bottle of Moet, a bouquet of flowers or a box of chocolates for moment you and your loved one walk through the door. Don't believe me? Call in your order a day or two before your departure and have it added to your bill.
The above list represents some of the items you can expect when you stay at a vacation home. The pricing is comparable to that of a hotel stay. The major advantage over a hotel or a timeshare comes down to privacy, master bedroom suites and room to move so the rest of the family aren't pulling each others hair out. Additionally, you have a refrigerator, microwave and oven where you can cook your own meals which can be a tremendous savings for those travelling with a family. It shouldn't cost you $15 per kid for breakfast when all they are going to eat is a half a bowl of cocoa puffs, a piece of toast and a glass of milk!
Also, because there are so many rooms - many vacationers are able to defray the cost of the rental property by travelling with friends or family members. Thereby reducing the cost in half or more depending on how many are travelling with you and without giving up your privacy. Yes, some homes come with two and even three master suites, so there is no need to fight over who gets the master when splitting up the bill. Also, if you're staying for a month or more, you'll be pleasantly surprised with the additional discount the home owner will negotiate with you. Try getting a hold of the owner of the Hotel to negotiate this great monthly rate. Fat chance!
Okay, so why is owning a vacation home such a smart investment opportunity? I'd like to start off with a recent personal experience that I've had to illustrate before going into the nuts and bolts of the dollars and cents. I've been selling vacation homes in Orlando for some time now and have, albeit by accident, become somewhat of an expert in the area of vacation homes.
Recently I met with a potential buyer from the UK looking to obtain his second vacation home. Naturally, I want to know why this owner is looking to add an additional property to his portfolio so I ask, "What year did you buy your first property?"
Expecting to hear 2001 or 2002, "2006," Replied the buyer.
In case you've been living in a bomb shelter for the past couple of years - 2006 was the peak of the real estate bubble before it came crashing down. People who purchased during this period are generally looking to dump their properties and most aren't too thrilled even about the mention of real estate as an investment.
Amazed at this statement I dug a little deeper to find out why a person who overpaid for a property was wanting to obtain more homes. It turns out that he purchased his original property for $400,000 in 2006 and estimates its current worth to be around $210,000. His monthly payments are $1,800 per month and running costs are around $1,000 per month with an average gross income of $48,000 per year and a net income of roughly $10,000 after taxes and running costs.
Wow, "Not a bad investment," I said.
This buyer went on to tell me that he believes he can slash an additional $1,000 per month off this budget due to the lower prices in the market and the current exchange rate between the US and the UK. "That's a total NET profit of around $32,000 per year from two properties. Where else in real estate can you get this type of return? And, on top of that, I have free accommodation any time I choose to visit Orlando."
This really got me to thinking about the possibilities. Two properties and this gentleman will have a net income well over the average income of an Orlando resident. No matter what way you look at it, this buyer is profiting even though he paid a premium price for his initial home and that to me ladies and gentleman is a WIN in my book. Not only that, he has a legacy that he can pass down to his children that will yield an income for many years to come and perhaps many generations to come. Not a bad investment strategy.
Unfortunately not everyone will have a win like the example above. Before investing in a vacation property you should have a budget set aside for slow months. Vacation rentals can be seasonal and some months can be slower than others. Owning an Orlando vacation home is also a business, or at least should be treated like one in my honest opinion. You should have an advertising and marketing budget. And I say that regardless of whether you utilize a property management company or not. Property management companies sometimes manage hundreds of properties and won't always keep your property booked to maximum capacity. Therefore it may be in your best interest to do some of your own marketing to compliment that of the property managers marketing efforts.
Writing a business plan on how you are going to market your property and how you are going to manage it are of paramount importance to your success. With a successfully implemented business plan and just the right amount of operating capital, you can also have a thriving investment for you and your family to enjoy for years to come.
If you would like to know a little more about the set up expenses of vacation homes, please visit the following page on my website: http://www.orlando-real-estate.biz/Orlando_Vacation_Homes/page_2055248.html
If you are interested in renting a vacation home, I would be more than happy to point you in the direction of some of my previous clients. Or simply visit: http://www.orlando-real-estate.biz/Vacation_Home_for_Rent/page_2060331.html
Feel free to contact me at (407) 346-5331 should you have any questions whatsoever about the vacation rental market. Don't worry if you're not interested in buying, I always have time to offer suggestions, answer questions or give advice.
In a recent article released by time magazine, Chief economist Jim Svinth (Lending Tree) was quoted as saying:
"The thing that will make home prices stop falling is the very same thing that will push mortgage rates higher."
This statement makes a lot of sense when you take into consideration the slashing of interest rates that has recently occured to try and spur the economy back into an upswing. In otherwords, who is going to pay for the interest cuts? The money will have to come from somewhere and historically low interest rates have been followed by seasonably high interest rates which help to make up for losses sustained during that period.
Timing the market may not necessarily be the smart thing to do right now. Perhaps that time has already come. Consider this:
"Consider a typical home that sells for $218,900. You put down 20% and get a 30-year fixed-rate mortgage at today's rate of 5.5%. Monthly principal and interest come to $994.31. Let's say that 12 months from now the same house goes for 10% less, or $197,010. But by then the recession is history and the Fed is jacking up rates to stem inflation. If mortgage costs rise a point, to 6.5%, your monthly payment would be $994.94 and you'd have saved nothing. Meanwhile, home prices might steady and sellers might become less willing to negotiate. And you have spent a year living someplace you'd rather not be" (direct quote, Time Magazine).
If you are looking to get into a home right now, you should be looking long term. And by long term I mean at least 5 years out. Buying at the right price now can set you up for long term profits.
A new feature with Google map search technology has been added to my website for those looking for Winter Garden Real Estate.
Winter Garden is an up and coming area. With its close proximity to Windermere (an exclusive part of Orlando), new schools, shopping centers, restaurants and highways that put you downtown Orlando in ten to fifteen minutes or at the major attractions in under 20 minutes - there is no wonder Winter Garden is experiencing explosive growth in the real estate department.
For more information about the Winter garden area, visit the Winter Garden Village website.
Your feedback is of paramount importance to me. Please let me know how you like the new search feature on my website? Good or bad, I'm open to any feedback you would like to provide. Using Google maps is a relatively new feature for me and at the moment I am beta testing the maps to see if people prefer the more interactive type search or the old fashioned MLS search function of a real estate site.
If you are interested in receiving a more detailed list of homes for sale in Winter Garden, please feel free to contact me directly at (407) 346-5331 or via E-Mail by going to my main site at www.orlando-real-estate.biz and clicking on the Contact Me page.
Sincerely,
Chantal Gakwaya
I get asked all the time, "What is the difference between a short sale and a bank foreclosure property?" Both terms are used rather loosely these days and are becoming a very common part of our daily speech in the real estate business.
Basically, a bank foreclosure property (or REO - real estate owned property) is where a foreclosure ruling has been filed and approved by the courts and the bank is now the legal owner of the property. Unlike a short sale, bank foreclosures actually are quite easy to purchase and can close rather quickly. The process is not all that different than purchasing a home from a regular home owner. Perhaps the only differences are the types of contracts required by the banks to complete the sale and almost always the homes are sold "AS IS". If you would like me to send you a copy of a sample bank contract, please contact me and I'll send you one to look at.
A short sale is a type of pre-foreclosure property in a sense. A short sale is when the lender will accept less than the full amount you owe on your mortgage when your home or property is sold. They do this to sell the home as quickly as possible and will often allow additional time for your home to sell.
Why would a lender do this? Believe it or not, the lender does not want to own your property, nor do they want to incur the costs associated with foreclosing on your home (legal fees, carrying costs etc.). Therefore the lender is willing to accept the short sale of your home to avoid the time and expenses pertaining to foreclosing on your home.
If you are interested in learning more about short sales and bank foreclosures, feel free to call me at any time at (407) 346-5331.
Best Regards,
Chantal
I have one word for the future of real estate, and that word is "Technology."
Believe it or not, real estate agents and brokers are on the cutting edge of todays internet technology. Okay, so let me re-phrase that, the good real estate agents and brokers are on the cutting edge of internet technology. Why? Because real estate is the backbone of the economy (backbone + economy = $) and technology is what todays consumer wants. Just google 'real estate' and you'll come up with 783 million possible results.
It comes as no surprise that over 80% of all consumers looking to purchase a home will search for that home via the internet. Why? Well because many people start their search months (even years) before they are ready to buy. And after all, who wants to get hounded by a sales person when you are just window shopping? When searching for a home, you have access to pictures, crime stats, comparable homes in the market, financing rates and statistics, local schools in the area and whatever else you need to make a smart, educated decision when purchasing a home. And best of all, this can all be done anonomously until you reach the point where you want to pull the trigger and make that leap of faith to follow through with your new home acquisition.
The new buzzword in the industry is Web 2.0. So what is web 2.0? Simply put it is a more interactive platform for the consumer. An example would be a blog or an instant message chat on a website. Something that allows the consumer to interact anonomously, but still get the immediate answer they are looking for. In other words, not having to browse through hundreds of 'STATIC' pages to find one simple answer. Consumers want answers immediately and to get these answers website platforms need to allow for interactivity and speed of interactivity. Otherwise, consumers will simply say 'NEXT' and move on to the next site that allows for this immediate yet anonomous information source.
So here are my predictions for the future of real estate (in no specific order):
1. Real estate websites will move to more blog like structures where consumers can interact or comment on every aspect of a website.
2. Video and live feeds will become common place. Streaming video will replace static pictures (JPEGS).
3. Instant messengers will replace E-Mail. E-Mail will still exist for a while, but will be used like the fax machine is used in todays world.
4. Synchronization will become a part of the future: When entering a listing on one real estate website, that same information will automatically be fed to tens of thousands of competing or similar websites.
5. Everything will feed into wireless technology. Sites will have devices that allow instant access for wireless consumers to interact as well as watch video.
6. Real Estate Agent commissions will shrink to about half of the existing rate because of the tremendous competition and more tech savvy consumers.
7. Transaction brokers will not exist in the future. You will either be a Buyers agent or a Sellers agent. In other words, real estate agents won't be a middle man in any transaction, they will represent the buyer only or the seller only (and for a lower commission as mentioned above).
8. Those real estate firms that can't keep up with the technology will be non-existant.
9. Boutique real estate firms will have the same selling tools and media access as the large real estate power houses - this will even the playing field out a lot more.
10. Consumers will have the same or similar real estate sales tools via the use of the internet as real estate agents will have. This will force real estate agents to be incredibly aggressive in their marketing techniques and knowledge of the market. They will still be of value, but will be required to be exceptional.
Okay, so that is my rant on the future of the real estate market. I try not to sugar coat my projections and give a true picture of what the market will show in the years to come, whether it is to the benefit to me as a real estate agent or not. I would be interested to hear your input?
Luxury home foreclosures
Many people are unaware that luxury homes are also subject to foreclosures in Orlando. In fact, today I can across a 4,000 plus square foot home in the downtown area for just over 800k. This home is a lakefront home on a ski lake and has all the luxury upgrades - granite countertops, travertine floors, travertine backsplashes throughout the kitchen and much more. I had to ask myself why a home like this hasn't moved? The answer was easy, if you saw the way the landscaping in the front of the home looked, you might think the house was abandoned. Well, it wasn't abandoned as such, but the owners sure left in a hurry when they couldn't foot the bill.
The type of person that would buy a luxury home foreclosure must also be willing to invest a little extra money throughout the house and especially in the landscaping to truly get their money's worth. Most luxury home buyers are not willing to invest much effort into a house. Usually luxury home buyers are looking for a home that is move-in ready and demand a lot more out of their new home acquisition.
The point is, if you want a fantastic deal in Orlando, then luxury home foreclosures are the way to go. Windermere, Dr. Phillips, Gotha, Winterpark, Heathrow and Lake Mary all have a substantial amount of luxury homes for sale that are either facing foreclosure or are completely bank owned.
If you would like an up to date list of luxury foreclosure homes, please contact me directly at (407) 346-5331 and I will send you a free list. Don't miss out on the amazing value that these homes have to offer. I don't think we will see too many opportunities like this when we have such an abundance of luxury homes to choose from.
Orlando Florida MLS
A new feature has been added to my site that allows you to search the Orlando MLS for free. MLS stands for Multiple Listing Service which is basically a massive database that allows other Orlando real estate agents to share information about the homes and properties they have for sale through one site. The original purpose of the mulitple listing service was to allow listing agents to sell their homes to other brokers or real estate agents that are operating as a buyers agent. Through a new technology called an IDX (internet data exchange), I can now share this information with you absolutely free of charge. On the site you can view almost every home for sale in Orlando, which is currently in excess of 20,000 homes. Also, you will find many, many for sale by owner listings through the Orlando Florida MLS as many of the FSBO's have paid flat fee to a real estate agent to submit their information to the service.
The Orlando MLS includes commercial properties, residential properties and land. Now you have the same power at your finger tips as real estate agents do and this new feature allows you to passively search homes for sale without being hounded by an agent. How nice is that! Basically all you have to do is click on the link above, register and you will have unlimited access to preview homes for sale in central Florida. I don't make it a habit to hound you for your business - if you need my assistance I know you've visited my site and I know that you know how to contact me (you know?).
If you are looking for Orlando foreclosures, please contact me and I will send you a free list of bank owned properties in Orlando in the price range and area you are searching for. Unfortunately this information is not available through the IDX system and is only available to licensed Florida real estate agents.
At present I have only subscribed to the Orlando Florida MLS however, at a later date I will be adding additional areas throughout Florida so you can have access all over the state.
Once you locate a property that you like I recommend that you drive through the neighborhood during the week and on the weekend to see if you like both the property and the area. Once you have selected a home that you like, please call me to schedule a showing and can also do a marketing analysis free of charge for you and let you know if the home is a good deal or not. Naturally my buyer services are free of charge to you.
Many homes you will see on the Orlando MLS that are low priced will be bank owned homes. It is important that you know what you are doing when you purchase a bank owned foreclosure home. Having relationships with the banks and knowing which banks are willing to negotiate can mean the difference between obtaining a good deal on a home or not. Unlike short sales, bank owned homes actually can close very quickly as the banks are motivated to remove them from their books.
I hope you find the Orlando Florida MLS a helpfull tool. Don't hesitate to contact me directly at (407) 346-5331 should you have any questions.
I look forward to the opportunity of assisting you.
Sincerely,
Chantal
Orlando Real Estate Home Prices
A new report was released today by the Orlando Regional Realtor Association. The report showed some great news for home prices in Orlando, showing that home prices in Orlando have now reached an affordable level for the average home buyer and first time home buyer.
The decrease in the median sales price has allowed the area’s housing affordability index to reach 100 percent, which along with a reduction in inventory by nearly 2,000 homes indicates a swing toward stabilization of Orlando’s current buyer-favoring housing market, according to the Orlando Regional Realtor Association.
The median sales price of a single-family home in the Orlando area in December 2007 dropped in one month by $11,000 to $223,900. This price represents a 10.44% drop from that of December 2006 prices.
The true affordability index is actually 100.3 percent. An affordability index of 99 percent would mean that buyers earning the state-reported median income are 1 percent short of the income necessary to purchase a median-priced home. Buyers who earn the reported median income of $51,335 can qualify to purchase one of 6,936 homes in Orange and Seminole counties currently listed in the local multiple listing service (MLS) for $230,617 or less.
The first time homebuyer affordability index climbed in December as well, to 71.4.
This is great news that the Orlando real estate market has been waiting to hear. Also great news is the fact that we are seeing nearly a 2,000 home reduction in the amount of inventory currently available on the market.
Better yet, the area’s average interest rate was 5.93 percent in December 2007 — which represents a continuing downward trend since a high of 6.60 percent in August. The lowered prices combined with the lower interest rates is positive news which will allow many more first time home buyers to afford a home in Orlando.
There are still a tremendous amount of foreclosure homes for sale in the Central FL area that offer fantastic deals often well below those of the average home for sale (contact me and I'll send you a list of foreclosures). If you are interested in locating foreclosure properties or investment deals, please feel free to contact me. I specialize in foreclosures and can show you how you can purchase one of these homes at way below market value.
Don't hesitate to contact me, should you have any questions.
Sincerely,
Chantal Gakwaya
(407) 346-5331
How to pick the right agent to market your home?
The real estate market is changing on a daily basis. Not only with the economy but more so with new technology entering the marketplace. In today's real estate market, you may just want to consider choosing your real estate agent by the amount of web traffic that they receive. You need to start asking the agent you are interviewing for cold hard stats on how many visitors are coming to their site and how many turn into buyers?
Consider these facts:
The consumer changed, according to the NAR 2006 Profile of Home Buyers and Sellers. Now 80% of consumers use the Internet!
Consumers said the most useful source of info is:
98% Internet
- 89% Realtors
- 81% of Internet buyers used a Realtor vs. 61% of traditional buyers
Buyers:
- Are 500% more likely to find the home they want to purchase online than in the newspaper
- Buyers are 2400% more likely to find the home they purchase online than in a magazine
- 92% of Internet buyers found an agent on an aggregate site
- 83% of online consumers want multiple photos
- There were 330% more views for homes with multiple photos
Dr. Phillips FL Real Estate
A new feature has been added to our website which allows you to search Doctor Phillips FL real estate by using google maps. For local residents that know the area well, the maps will serve as an easy reference guide to sort through dozens and dozens of properties quickly by eliminating areas that you do not want to live in. I hope you find this free search function as quick and user friendly as we do.
Naturally, if you are not as familiar with the area as many local residents - we still offer the Orlando Real Estate MLS search free of charge. The MLS will provide you with every home for sale that is listed by a real estate agent in Dr. Phillips (and Orlando for that matter).
A little info about Doctor Phillips FL:
Many people from out of State ask me why the town is called Dr. Phillips. Many laugh at the name, and I guess I can't blame them as I can't think of another municipality in any major city named after a Doctor in such a manner. Though I have to admit, after a while the name has grown on me and I don't give it too much thought anymore. Notheless, here's a little background info:
The area of Dr. Phillips is named after Dr. Phillip Phillips (such and original first name!), an Orlando or Central FL citrus magnate. He was responsible for several key innovations in the processing and packaging of orange juice. Doctor Phillips owned thousands of acres of groves, stretching across nine Central FL counties. These orange groves stretched from Conroy Rd on the north to the south end of the Sand Lake Chain, and encompassed the entire area that we now refer to as Bay Hill, Orange Tree, Sand Lake Hills and Turkey Lake Park.
The population measured in 2000 for the Doctor Phillips area is 9,548.
Please feel free to use the new google search function. Also, please let me know if you prefer it over the regular MLS search function.
Don't hesitate to contact me if you see any properties you like. I am always available to answer any questions you may have.
Sincerely,
Chantal
(407) 346-5331
When will the Orlando real estate market hit its lowest price?
I find it so interesting how everyone has an opinion regarding Orlando Real Estate and when the market is going to hit the bottom. It appears the media is evenly divided between the doomers and the cheerleaders. And BOTH sides are packing some serious street cred, including well respected financial analysts, big name media analysts, The National Association of Realtors and Major US Banks etc. etc.
The point is that one side is saying that home prices in the Orlando Real Estate market are going to see a decline in price conitnuing through until 2009 and the other side is saying that the turn around may come in the first quarter to first half of 2008. The doomers are claiming as much as a 35% drop in price and the cheerleaders are expecting prices to hold steady and then start raising by the end of the year.
Well I don't have the type of street credentials these big time doomers and cheerleaders are packing. But what I can tell you (coming from someone working in the trenches) is that the investors are beginning to swoop in and pick up deals. And when I say deals I should be saying steals. I'm talking about properties selling so low that some investors are seeing immediate positive cash flow returns on their rentals. I don't care what the market predictions are, positive cash flow on an investment today is positive cash flow in any language.
So what are my predictions?
Sorry, but I'm going to sit on the fence for a while on this one. However, I will predict that the market will turn around once the smart investors have bought out the majority of foreclosure properties currently on the market. Yet again, the part time investor and first time homebuyers will wait until the good deals are gone and then begin buying when the prices start rising again. Well, time will tell I suppose. So who are you listening too? The Doomers or The Cheerleaders?
Getting a divorce is never easy and means making a lot of difficult decisions. One of the most important decisions is what to do with the home you jointly own.
In the midst of the heavy emotional turmoil, what you need most is some non-emotional, specific information and answers on how to deal with divorce and selling your home. Once you know how a divorce may affect your home, your mortgage and taxes, making the critical decisions are much easier. A Neutral, third party can help you make rational, rather than emotional decisions.
One of the first decisions you may want to make is whether you want to continue living in your home. Do you want to stay where you are? Or sell your home and move to a new place that offers a new start?
Only you can answer these questions, nevertheless, there it is a certainty that you will have to face some financial repercussions as a result of your decision process. You’ll have to ask yourself questions like:
· What type of a home can I afford after my divorce?
· Can I manage the old house on my new budget? Divorce Home Refinance (is refinancing an option for me)?
· Or is it better to sell and buy a new home? How much of a home can I afford on my new budget?
Divorce Home – What Are My Options?
You have four basic home options when in the midst of a divorce:
- Sell my home now and divide up the proceeds with my ex.
- Buy out my ex.
- Have my ex buy me out.
- Retain my ownership of my home.
It is of paramount importance that you understand the financial ramifications of each of these options.
- Sell the House Now and Divide Split the Proceeds
Your primary concern in this situation is to maximize the selling price of your home. I can help you avoid the common mistakes most divorcees make that compromise this outcome.
As you are working to get your new financial situation in order, be sure that you understand what your net proceeds are going to be. You’re going to have selling expenses. I would be more than happy to sit down with you and do a break down of all the fees involved in selling a home. Obviously the split of the proceeds is not always 50/50 as naturally this will depend on your divorce settlement as well as the legislative property laws in applicable.
- Divorce Home Refinance – Buy Out Your Ex
If you plan on keeping your home to yourself, you'll have to determine how you will continue to meet your monthly mortgage obligations, if you now only have one salary. After a divorce refinancing on your own might be a bit of a challenge. Contact me about this, I have a FREE report which I will send to you to show how much of a loan you will qualify for based on the size of the loan including PITI (Principal, Interest, Taxes & Insurance) and your DTI (Debt to Income Ratio). It is important that you do not change or quit your current job if you plan to refinance your home. Also, start looking immediately at making sure your credit score is as clean as possible.
- Have Your Ex Refinance to Buy Your Home
If you have decided that you are the one who will be leaving, then you will have the opportunity to start over again and perhaps with some cash from your home in your pocket. Please be aware that if your home loan is not refinanced by your Ex then more than likely your lender will still consider the two of you as co-signers to be liable for the mortgage leaving you liable for any late payments or defaults on the loan. This liability can make qualifying for a new mortgage difficult for you if you decide to buy a new home. The lender may look at the existing mortgage balance as a Risk factor when identifying whether or not you qualify for the new loan.
- Maintain Joint Ownership with Your Ex
Many divorced or divorcing couples will postpone financial decisions with respect to their homes (particularly when there are children involved) and will retain joint ownership for a period of time even though only one of you occupy the home. Even if this may only a temporary consideration, keep your eye on tax implications which may change from the time of your divorce to the time your home sells. If your name is still on the loan, you will be liable for property taxes and monthly mortgage payments.
Sale of Home in Divorce – When You Have Decided to Sell
If you and your ex decide to sell your home, as hard as it may be, it is important to work together as a team to maximize your return. Try and put your differences aside as this is a decision that is ultimately going to affect you for the short term – if not for the rest of your life. Both of you should be present when the listing contract is completed and both of you should understand and sign the listing contract as well as being active in the final negotiations. If you are unable to work as a team during this process it may be a very long and stressful situation which may ultimately affect the bottom line selling price of your home.
Sale of Home in Divorce Completed. When You Buy Your Next Home
Use the proceeds from the sale of your home or home refinance from your spouse to determine an affordable price range for your next home. Be clear on getting the right home to suit your new lifestyle and financial status. Don’t over extend yourself as you may have some readjustments to get used to.
If you would like a free consultation about what your options are I would be happy to assist you in a confidential manner. As a licensed mortgage broker I can show you what your refinance options are or what you may qualify for in a new home. Additionally, I can provide you with a list of homes in your area and your price range so you can move quickly in re-establishing yourself in your new lifestyle.
Don’t hesitate to contact me at (407) 346-5331.
Sincerely,
Chantal
*NOTE: I am not an attorney and none of the information in this report should be taken as legal advice or utilized to replace the advice provided to you by a licensed attorney. You should seek legal advice with all matters relating to your divorce and any division of property or assets.
It's no secret that right now is a great time to buy. It's becoming even more evident to me by the amount of investors and would be investors that are contacting me on a daily basis. In fact, in the last two days I've had 21 investors call me or email me looking for deals on foreclosure properties. Investors are always difficult to deal with, but I don't mind working with them right now because there are so many good deals on the market. The good investors or experienced ones at least, have realistic expectations as to what type of deals they are going to get and make reasonable offers that have a chance of getting accepted by the seller.
On the other hand, I also get loads of calls from 'would-be investors' and those that have just come out of a seminar all pumped up and ready to make their mark in the real estate investment field. Usually these would be investors understand the concept of investing but never actually follow through. What they do follow through with is wasting an awefull lot of their own and other peoples time. Offers are low, offensive and more often than not NEVER stand a chance of getting accepted. My advice: go low, get a good deal but be realistic.
It really takes a certain type of person to get involved in real estate investing. You have to understand your own risk limitations and be ready to jump on something that you believe is a good deal. Jumping on a good deal comes from hours upon hours of studying the market, understanding market prices and having a sound strategy of what you will do once you actually OWN that great investment property. If you don't have a high risk threshold, my advice is to go back to your 9 to 5 or find another venture that you are more suited too. Investing is not for everyone.
The number one way to tell whether a person is a seasoned investor is by the team that accompanies them. Experienced investors don't leave anything to chance and have advisors, people and companies at their side - ready for when they need to jump on that next deal.
If you are just getting into the real estate investment field, I am happy to work with you. My only recommendation is that you get a sound team together so you can make educated decisions quickly when the right opportunity comes along.
Establish good relationships with quality people and companies. The following individuals must be on your team before you make your first investment:
A good real estate agent/broker with experience working with investment properties
A "CREATIVE" mortgage broker/lender - did I mention creative?
Home inspector - with rehab experience or solid building experience
Termite inspector
A Mentor - get a mentor that is a seasoned investor. One that will advise you without any emotional attachment to the property you are buying. If you have to pay them a small consulting fee - do it.
Title Company - Have your title company ready.
Insurance Agent - Get a good insurance company ready for your hazard insurance
Attorney - Get a good real estate attorney to protect you.
Contractors or Handymen - Have your team of plumbers, electricians, roofers, dry wallers, painters etc all together before you move forward.
Hard Money Lenders or Angel Investors - have these people ready for WHEN you need them. There may come a time they come in handy. Always establish good financial connections before you actually need them. Coming to them when you are desperate will not work in your advantage.
I would be happy to point you in the right direction for some of the above mentioned individuals, but ultimately you have to be happy with the team you have interviewed and selected.
Happy Investing,
Chantal