About Saint Cloud's Bay Lake Ranch

Build or Buy? Back in May 2010 Homes in Bay Lake Ranch that were short sales commanded $200,000 or more. Lots conversely could be had for under $50,000. So the question arose would it be better to buy and refurbish an existing home in Short Sale or Purchase the Land, and build a brand new holiday home.

In May 2010 it was about even. In the time it took to complete the brand new home, in Bay Lake Ranch, the market had shifted. And the shift was dramatic. Several homes transitioned from short sales to foreclosed properties. When that happens market value is directly impacted.

UPSIDE DOWN OUT OF THE BOX? CAN IT REALLY BE WORTH LESS THAN WE PAID?

As a result of the market shift over the five months time it took to build, the brand new home is now worth less than it cost to build. Substantially less in fact. Brand new out of the box the new home took a 29% loss that amounts to a $56,500 loss in value when compared to those that have recently sold. The build price was $135.00 per square foot. The resale price is on average $79.98 per square foot.

WHAT SOME BUILDERS HAVE BEEN DOING SINCE THE HOUSING SLUMP

New Construction has been stalled in Osceola County since the Real Estate market imploded. Many local builders have turned to renovating foreclosed homes as a way of surviving the tough market conditions and continuing price declines making it impossible for builders to compete with existing housing prices at their current levels.

Theobald Construction for instances along with Robertson Homes have both become approved vendors involved with the Neighborhood Stabilization Program. They have successfully transitioned from building new custom homes to refurbishing REO foreclosed homes which has kept their crews of local workers employed.

FOREIGN BUYERS ARE SEEING SIMILIAR MARKIET CONDITIONS ACROSS THE POND

The housing market fears in the UK show the real estate market downturn to be affecting the British Economy as much as the US Housing market downturn has affect the local economy. The primary difference being availability of land. Investors seeking to find afford holiday homes in Bay Lake Ranch with acreage, should be looking at more closely at existing housing with renovations versus building new homes.

In just a few short months the tables have turned. International buyers will once again find value in existing home resales particularly in Bay Lake Ranch, St. Cloud Florida 34771.

JUST SOLD- WHEN YOU HAVE JUST HAD THE LOWEST SALE IN THE NEIGHBORHOOD SHOULD THE NEIGHBORS BE IMPRESSED ? As an active Broker, and Realtor® in Bay Lake Ranch, St. Cloud Florida, we have always impressed upon agents the importance of using a mail push to promote a recent sale.

However, I believe there is an exception to that rule. If you have just achieved the lowest sale in the neighborhood should the neighbors be impressed? I cannot speak for other areas, but here in my market, the answer is a resounding NO.

Home values have taken hits everywhere. No one is disputing that. In Bay Lake Ranch like other parts of Osceola County, the values have dropped 30-50% off the high water mark back in 2007. When sales like the one in the photo here were strong and prices were still high,

But what message are you sending to the homeowners when your mail push, comes in a plainly marked envelop clearly copied off the tax roles, with no return address (to avoid being thrown out with the other piles of junk mail we receive n a daily basis) The contents are a cheerful "JUST SOLD ON YOUR STREET" announcement- and it has set the new low.

The property was now an REO, and was undervalued right out of the box- the comps would have placed it at $149,000- $175,000 range- as similar properties in distress have sold for in the past 30 days. But nope, the local"expert" decided to undervalue the property by $30,000.

Perhaps a Free Market Report would have helped establish a better base price for this REO?

It did not sell first. And it did not sell the fastest, in fact, it sold $70,000 below the previous comparable property the month before.

The neighbors at a local garage sale gathered around in discussion.

Every one of them seemed to be in agreement-

The Flyer they all received in the mail made them really mad.

They would never use this agent to sell their home.

They monitor home sales pretty closely here in Bay Lake Ranch.

The listing agent used a mail push to promote her latest sale, but at that price, and at what cost to obtaining future business? I am sure that i snot what this agent had in mind- and part of me really felt bad for her. A sale is a sale. Vut perhaps how you go abo0ut delivering bad news may have to takie a different approach.

JUST SOLD advertising, worked great in the boom years, it fueled the fire and attracted new listings. In a declining market, a soft sale may have been a wiser decision because the "GREAT NEWS" just impacted home values in a negative way.

Foreclosures and Short Sales are everywhere- we list them and we sell them every day. How we price them should be determined on what has recently sold- so one must ponder...did the agent even pull comps? Doesn't look like it from the numbers

They phone has been ringing all day, calls from neighbors Bay Lake Ranch Real Estate Office is also watching with great interest what happens here and in all of Osceola County.

BAY LAKE RANCH REAL ESTATE OFFICE OFFERS SHORT SALE HOMEOWNERS FREE HELP- St. Cloud Florida

Bay Lake Ranch is not your typical development. It one of the few equestrian zoned communities in Osceola County. This unique development is located on the east side of St. Cloud Florida, off the main corridor Hwy192 which runs east/west from Melbourne Beach to the Disney area. Homes in Bay Lake Ranch range in price from a modest $121,000- 1.3 Million dollars.

Of the dozen (+/-) homes in Bay Lake Ranch currently available for sale about a half a dozen are distressed properties. Allison Stewart, owner of St. Cloud Homes & Land, LLC is offering free help for Bay Lake Ranch homeowners who may in jeopardy of losing their homes.

"This community is unique" Stewart said, "homeowners need help in understanding their options in these tough economic times. Homeowners who are struggling, do have options available to them but few are aware of what they are or how to start. Offering free information is one way we can reach these people before it is too late to help them. We have some beautiful homes here, and one way of preserving community values overall is to understand the process of a short sale and make that information available to homeowners who may need it."

"Buyers are looking heavily in this area, and at the present time many of the homes for sale here do have multiple offers on them" Stewart said. "We work with homeowners and their lenders with the main objective being to avoid a foreclosure which is good for the home seller, and equally good for the bank."

If you or someone you know is having a hard time making their mortgage payments have them contact our office.

Allison Stewart is a certified Distress Property Expert (CDPE) and Short Sale Resource (SFR) specialist who is familar with the process of negotiating short sales. A Short Sale, occurs when a borrower owes more than the home is currently worth, and has suffered a financial setback making it difficult or impossible to continue making their mortgage payments. " A financial hardship such as the loss of employment, reduction in pay, illness, or divorce all have financial consequences attached to them. Good people find themselves in a financially uncomfortable and unmanagable situation. That is where we can help" Stewart said. St. Cloud Homes & Land,LLC is offering free consultations for homeowners in Bay Lake Ranch and eastern Osceola County wanting more information on the process of Short Sales click here

COMPARING APPLES TO ORANGES IN OSCEOLA COUNTY FLORIDA-NEW HOUSING VERSUS SHORT SALE HOMES. The buzzwords of the decade have been foreclosures and short sales. Certainly there are no shortage of either. What works for some people does not work for others. Stuck in the middle are the Pre-Short Sale Home Owners (Known as Traditional Sales) frustrated by the market's inability to bounce back to previous unrealistic value and apprasiers adjusting downward the value of property based on recent comparables which of course include short sales and foreclosures. Seems like an endless cycle doesn't it?

Cash buyers have many choices. After spending several days vewing the entore inventory around our home office we drew an interesting conclusion. Homes which may be only a few years old, built during the boom, may need more work than 100 year old home swe have sold in town. And, when you factor in all the necessary restoration costs building a CUSTOM HOME may be cheaper.

Buyers seem to be considering building as an alternative to buying someone's problem these days. Lots have come down in price proportionate to housing prices. In Bay Lake Ranch in St. Cloud Florida, for instance, the average price per acre is hovering around 23,000 per acre. A quick survey of local builders in St. Cloud Florida assess that build out costs are now at $95.00 per livable foot. So even with Impact Fees of $18,000 to the County, the truth is you can build a moderately sized home brand new, for under $200,000.

If your price range is not quite that high, you can easily afford any of the "gently used" homes in Bay Lake Ranch falling under the short sale or foreclosure catagories. Some need more work than others-Home Ins

Unlike Poinicana Florida which has suffered tremendously, Realty here is not is NOT as distressed. In Poinciana entire blocks fell to bank receivership. Escalating the devaluation of home prices to levels we haven't seen since 1992-1994.

North of Poinciana the market seems to be more stable. The east side of St. Cloud Florida which borders on the Community of Harmony has stablized. Bay Lake Ranch has onloy 11 homes available for sale currently. And a dozen building lots which are 1 acre or larger are still available. Bay Lake Ranch, is an state community located near Lake Nona Medical Complex and Burnett Institute (Medical School) , Valencia College, and 30 minutes from Orlando Internatio0nal Airport.

Recent interest in building has budded since construction material costs have dropped considerably, and labor costs seem more favorable than they were previously. So perhaps considering building now, may be a viable alternative to distressed housing. Land Value in Bay Lake Ranch is favorable.

St. Cloud Homes & Land, LLC

BRITISH BUYERS AND INVESTORS ARE REDISCOVERING AMERICA AS THE LAND OF PROPERTY OPPORUNITY.  The sluggish American economy and stalled housing market, has triggered a new look by Brits across the pond at how much their £ will buy.  Lots and Custom builds may be a viable alternative to getting the most value for their money.

 In my Market of St. Cloud Florida, which closely resembles more a village than a city,and the countryside back home, the location is convenient and countrified concurrently. A short thirty (30) minutes drive time to Orlando International Airport, Orlando and the beaches, 45 minutes drive time to the Attractions Disney, Universal, and SeaWorld, one hour to Kennedy Space Center and lauches are visable from St. Cloud, Florida  without having to drive anywhere.  The City of St. Cloud, Florida  was established 1909 and has been home to cattle and horse farms as well as more urban development in the shadow of Kissimmee Florida but without the tourist traffic. The east side of St. Cloud Florida, is where Bay Lake Ranch is located, is perfect for evenhng star gazing, features large lush lots, custom built homes and is zoned for horses (on 2 acres or more) It surrounds Bay Lake which is fresh water and is convenient for shopping and services located just a few miles up the main corridor.

WHAT YOUR MONEY WILL BUY

Short Sales present excellent opportunity if you are handy in house repairs, looking for investment rental property,  and are willing to wait for an answer to your offer.

 An alternative is to buy a lot and build. We recently did just that with one of our buyers.We located a two acre parcel for under $50,000 ) £33,333

 and went to meet with a local builder to get cost breakdowns for a custom built home. 

 He was amazed at how much house he could build and what was included. The garage, patio and porch for example,as well as the septic, elelctric and well, and concrete driveway. Inside the home,  custom cabinets, hinges and hardware, doors, windows and trim all upgraded.  His build price... $95.00 per square foot for living space. This price includes the buildings footprint.

 

 A 1700 sq ft home with 2 car garage would cost $162,500 Plus the cost of the land. (average is $45,000-80,000 (£30-55,000)  for 13,200 meter lots or larger. (1 acre or more)

WHY NOW IS A GREAT TIME TO CONSIDER A PROPERTY PURCHASE

As you can see from the math...NOW is a great time to build because demand is low, and competition for bids means better value for buyers. Between the lackluster AMERICAN economy and the devalued dollar, the Pound gives Brits a decided advantage.

Existing Home prices have fallen to 1992 levels and construction costs are greatly diminshed as well.  This combination of factors empowers your buying ability.

 The American economy is fuel by supply and demand. Therefore buying when demand is low you reckon the reduced costs of land, homes and build outs. Something to think about, which may be right for you given timing and circumstance. 

For this buyer, it all came together in a neat and tidy package and his transactions was safe and secure.

The Process of Purchasing Property In America

An Estate Agent- A Real Estate Agent is licensed by the State and works for a Real Estate Broker. Real Estate Brokers have additional education, have passed the State Exam, have additionhal experience and are responsible for the actions of their agents. They are paid at closing for fasillitating the sale.

Presenting an Offer: Once the right property has been located, an Offer will be prepared by the Real Estate Agent, or Broker and signed by the buyer.  It is then submitted to the Seller of the Property.   The seller may accept it, reject it or make a counter offer.  When agreement to price, terms and conditions of the sale is reached, the offer then becomes a binding PURCHASE AGREEMENT. It will be signed and dated by both parties, (the buyers and Sellers) and a Deposit will be held by a Title Company (which is safe and secure) until time of closing. A copy of the Purchase Agreement accompanies the deposit at the Title Company.

TITLE COMPANY

In the US, a Title Company can hold the funds in a secure account for Real Estate Transactions.  You may choose to hire the services of a Real Estate Attorney (Barrister) as an alternative. Title Companies are secure. Accounting for all funds is a serious matter in American Real Estate- your money is safe and secure.

A Title Company will alaso perform a title search, and provide a Title Policy which warrants your property against defect. (Claims)

A Closing Agent (From the TItle Company, works as your personal liason schedules, Surveys and collects all documents for closing as well as prepares the closing statement for review prior ro facillitating the closing of the property.

A SURVEY- is a measure of the land.

INSPECTION- Licensed as well, are hired by the BUYER to perform functional assessment as well as termite reports, and will provide a detailed report of all finding complete wi9th photographs. There is a fee for this service which varies by company, and is paid for by the BUYER.

Once Inspections, Survey, and Title Work have been completed and are satisfactory a CLOSING is scheduled. It is at this time that the balance of funds will be due.

CASH DEAL CLOSE QUICKLY- in as little as 10 days or less from start to finish.

Financed transactions take a little longer due to , Tighter lending regulation,  have been implemented for the consumers protection. An Appraisal is required at an additional cost to the buyer. There are taxes as well to record the Mortgage document. Figure 45 -60 days on average for approval.

THE CLOSING

All documents are reviewed and explained and signed by the Buyer and Seller. Including the HUD or closing statement which is a detailed explaination of fund dispursements.

A Deed will be recorded and a copy of a deed is mailed to the BUYER from the County Clerk.

TRUSTWORTHY BUILDERS- In St. Cloud Florida many have been in area 25 years, have solid reputation, and are licensed by the State. All work is Custom.

* Your builder will also contract with you. You will select your plans, and leave a deposit to cover start up costs, permit fees, and materials. After that point,  Funds are paid in draws against the work performed and upon satisfactory passing County Inspections for quality and code compliance.  This is not standard development builds- you have choice of everything that goes into  your home.