About Oviedo's Kenmure

Can you imagine whole neighborhoods of single-family homes and townhouses being turned into rental complexes managed by a host of absentee investors and landlords? If you can’t, come visit Orlando FL.

Several subdivisions in northeast suburban Oviedo and East Orlando are over 50% rental.

How could that happen? Easy. When homeowners can’t afford to live in their homes any longer, they rent it out. Or sell them as Short Sales to investors. Or go into foreclosure ... to the delight of other investors.

These communities were built at the height of the market. By respected builders in sought-after areas. The homes are nice. Some over 3,000 square feet. Many with pools. Upgraded kitchens with stainless steel appliances and granite countertops. Four and five bedrooms. Three and four baths. Conservation or pond views. Bonus rooms. Master baths with garden tubs, dual sinks, and separate showers.

What about the homeowners left behind? Dutifully paying their mortgage payments and HOA assessments? While property values are sinking?

They’re caught in a trap. Unable to unload their homes for what they bought them for. Stopped from moving on without renting or short selling or strategically defaulting and going into foreclosure. Because they had no choice.

And how soon before subdivisions like these — built in the heyday of the real estate boom — turn 75% rental?

And what happens when —

• Lawns turn into burnt-out weed-invested jungles ...
• Homeowner associations become cash strapped with delinquent dues ...
• Neglect and improper maintenance show more and more ...
• The revolving door of renters further deteriorate properties ...
• Property values drop into a dark abyss ...

Will subdivisions turn 100% rental?

If so, there goes the American Dream ... into the sunset.

I have a listing for a house that’s in mint condition with over 3,000 square feet, 5 bedrooms, 3 baths, a loft/game room, and situated on a tranquil pond.

The only houses that have sold in the subdivision are Short Sales, which were probably sold for at least 90% under market value, if not more. The subdivision is located in a very popular suburb. The sellers are NOT in a Short Sale position. The list price is about 5% over comparable non-distressed properties in nearby subdivisions.

While the subdivision is a gated community, it lacks a community pool. It’s also considered county rather than city, which means that the fine recreation facilities available to city residents would not be available to the homeowners unless they wished to join on their own. On the plust side, the schools are in the same fine county public school system, and the location is convenient to everything.

So why would a buyer ... who also happens to be a real estate agent ... put in an offer that is 25% less than the list price?

Of course, I know why. The buyer is testing to see whether the seller is desperate enough to make a deal.

All sellers are anxious to sell their house and all sellers wait for that coveted offer that will allow them to move on. In this case, I advised the sellers to make a token counteroffer that would say they were still in the game. By doing so, they would invite the buyer to make a more reasonable counter-counter. However, I also knew that a buyer who comes in so low probably isn’t looking for a reasonable price ... but a steal. What’s more, the seller knows it, too!

In my mind, if I were the buyer and I wanted to get as good a deal as possible, I might come in low, but not SO low that it practically negates any possibility of both sides finding common ground. If the buyer were to have made an offer that was, say, 20% less than list price, it might have proved to be a better starting point.

Sellers have high expectations. I understand that and respect it. But even sellers with high expectations can be whittled down to selling prices they may have never before considered ... provided the buyer approaches the process with care and respect.