Home Prices in Florida on the Rise

Home Prices in Florida on the Rise

September 29, 2013 by · Leave a Comment 

Florida Housing Prices Continue to Grow

For all you optimistic investors out there, the housing market in Florida showed significant improvement during the month of August. Closed sales increased, median home prices have risen, there are more sales pending, and a nice reserve of homes available for sale. The data, which was released by Florida Realtor’s, could help build consumer confidence for 2014.

Compared to last year, closed sales on existing single-family homes in Brevard County rose by about 11.5 percent, while median prices of the homes sold grew by 13 percent to $130,000. What’s more, these rising numbers are being overshadowed by market reports from South Florida, where increases have been closer to 25 percent in the last year.

Let’s Break Down these Numbers

Just to be clear, the median price is the middle point where half the homes sold for more, and half for less. Leading analysts for the housing industry also noted that sales (in particular all cash sales) of foreclosures and others being advertised for sale by their mortgagee are keeping the median price of homes lower, since they tend to sell at a discounted price below market value.

Why Buy Wholesale Real Estate?

November 30, 2010 by · Leave a Comment 

Many often overlook wholesale real estate when thinking about investments, however, there is little doubt that it is a vibrant industry that makes up a large portion of real estate transactions. It allows investors to buy properties at pennies on the dollar and there is often a really great deal – and profit – to be found in doing so.   Many “pros” will advise that the trick to wholesale real estate is to buy properties that may be considered “distressed”.  Once these deals are closed, the savings are then passed on by quickly selling – at a slight profit – to purchasers who may not be in as good a position to be a wholesale investor, so they too can make a profit on their own investment.  Sounds like a great deal and simple enough, right?   

Well, there’s no doubt about it:  it is!  Why then isn’t everyone cashing in?  Being “in the know” is a key factor in wholesale real estate success.  Perhaps the biggest challenge is in constantly prospecting and locating the types of properties that will yield profits to begin with. There are several ways to do so:

Buying Real Estate in a Down Market

November 28, 2010 by · Leave a Comment 

Today’s Real Estate Market

The real estate market has been in decline for a few years now, but that can be good news for people looking to buy real estate in Central Florida.  In fact, when a market is in such decline, it is referred to as a “buyer’s market”. Prices across the country are now stable and lower than ever. Interest rates are also lower, which can mean thousands in savings over the years.

Own Instead of Rent

There are many advantages to buying real estate — especially in today’s market. From the tax savings, to lower monthly costs, to owning something with actual value and room for future market growth, a buyer cannot go wrong. 

Many people overlook the fact that rental payments include taxes and fees, charged to the landlord or by the landlord, that are passed on to the tenant. When someone owns their own home, many states offer tax exemptions or discounts to homeowners, which equal huge savings each year. 

Mortgage payments are usually cheaper than paying rent, too. Landlords charge tenants more per month so that they can make a profit on their property and sometimes there’s also extra to cover any necessary repairs. A homebuyer can negotiate a price and pay rock bottom without any built in charges for a more personal home.

Understanding Real Estate Owned (REO) Properties

March 26, 2010 by · Leave a Comment 

Real estate owned properties (REOs) are foreclosed properties that are owned by a bank. Why are these properties owned by banks?

1) Because the homeowner was unable to pay off the mortgage.

2) Because the property failed to sell at a foreclosure auction.

Central Florida REOs are attractive to for several reasons. One of the most important advantages is that all of the home’s liens (property-related debts) are removed once it becomes an REO, and all of the property's taxes are paid in full.

Some Wonderful Advantages to Buying an REO

•    REOs can and should be inspected prior to signing a contract.
•    The lending bank will always restore the REO to at least stable condition.
•    The bank lender will often offer an allowance for certain repairs to the home.
•    Most REOs will include appliances.

All REOs will either be sold by the bank itself or through an established broker. As a result, buying an REO requires a specific body of knowledge and expertise. Make sure you find a real estate agent with REO experience.

Guide to Buying Home Foreclosures

March 20, 2010 by · Leave a Comment 

Whether you're a relocating family or an investor looking to make money flipping homes, Central Florida foreclosures deserve your attention…especially the homes in Downtown Orlando. Buying a foreclosed home will afford you the freedom to make lovely interior adjustments, colorful landscaping upgrades, and a variety of other property embellishments.

What is a Foreclosure? A foreclosure occurs when a homeowner is unable to pay their mortgage. Because of this delinquency, the mortgage lender (bank) assumes full ownership of the home. This bank-owned home is referred to as a "foreclosed home".

If you are considering buying a foreclosed home in Central Florida, examine the following:

•    Understand the Advantages: Lenders want to recover the unpaid amount of the home's mortgage as soon as possible. As a result, many foreclosed homes are sold at significantly discounted prices. Sometimes, a foreclosed homes will sell for 30-40% of its market worth.

•    Inspect the Property: Some foreclosures are left in a state of disrepair. This is not necessarily a bad thing. Just make sure that the cost of the repairs will be be overshadowed by the value that they will add to the home.

Homebuyer Tax Credit Extended

November 11, 2009 by · Leave a Comment 

Homebuyer Tax Credit Extended…
Plus, New Tax Credit for Existing Home Owners!
Homebuyer Tax Credit Update!
TAX CREDIT OVERVIEW

Who Gets What?
First-Time Homebuyers (FTHBs): First-time homebuyers (that is, people who have not owned a home within the last three years) may be eligible for the tax credit. The credit for FTHBs is 10% of the purchase price of the home, with a maximum available credit of $8,000
Single taxpayers and married couples filing a joint return may qualify for the full tax credit amount.
Current Owners: The tax credit program now gives those who already own a residence some additional reasons to move to a new home. This incentive comes in the form of a tax credit of up to $6,500 for qualified purchasers who have owned and occupied a primary residence for a period of five consecutive years during the last eight years.
Single taxpayers and married couples filing a joint return may qualify for the full tax credit amount.

What are the New Deadlines?
In order to qualify for the credit, all contracts need to be in effect no later than April 30, 2010 and close no later than June 30, 2010.

Homes for Sale By Owner (FSBO)

June 25, 2009 by · Leave a Comment 

Purchasing a ‘for sale by owner ‘(FSBO) home can be the right choice for the savvy investor. If the price is right, this can be an ideal way to save money on your next real estate investment.

The obvious advantage of a FSBO home is the fact that you won’t be paying a percentage to a real estate agent. The entire transaction takes place directly with the homeowner.  Some of the additional advantages to this type of purchase include the following:

•    Financing:  Some homeowners are willing to do their own financing. For individuals currently experiencing credit problems, this can be an ideal way to buy. The contract can be drawn up a number of ways, but the most common is to give the current homeowner an agreed upon down payment and then make payments directly to the owner for a number of months or years until bank financing can be obtained.
•    Negotiations: Another plus to purchasing a FSBO, is having negotiation options. Dealing directly with an owner does allow more room for negotiating a purchase price or even certain items that should remain on the property.
•    No waiting period: Usually a home purchased through a real estate agent has a 30 day waiting period while the house goes through the closing procedure. With a home that is for sale by owner, the move in date is determined between you and the seller.

Buying Investment Properties in Florida

June 18, 2009 by · 2 Comments 

Investing your money into a market that has the potential for a sizeable profit margin is what we are all looking for. If you think you missed out on the housing industry, let’s look at some details of what actually happened over the past several years and what is projected for the Florida market. Buying investment properties in Florida is a golden opportunity right now.

From 2003-2004, Florida real estate emerged as one of the hottest markets in the nation. Prices quickly began to soar as developers and contractors started investing. By 2005, property values had appreciated by 45% in one year. No one really looked at the obvious end to the price escalation and everyone was buying high in fear that they would never again be able to afford a home in Florida if they didn’t. Builders were backlogged with two years worth of work.
The market began to slow down in 2005, but the buying frenzy continued until the bottom finally fell out in 2007. The ease of obtaining a mortgage only added to the amount of purchases. By the time the dust settled, the foreclosures and short sales began to drive the prices downward. Homes that were valued at $250,000 just a few years ago, were now selling for $80,000, which brings us to where we are now.