Allison Stewart BROKER/ASSOC/REALTOR ®St. Cloud Florida

IS NOW THE TIME TO BUY OR SELL?

A shift in the housing market is underway suggesting that the recession may be drawing closer to an end in the foreseeable future. Although concerns over job losses are still paramount on the minds of consumers, people are buying homes. .

Sales have soared recently to 6% in year over year comparisons. The median price for a home sold within the zip codes of St. Cloud is now $130,000- the median means some have sold above and some have sold below- the average price per square foot is now is $72.98 up from previous months. As prices inch upwards, the availability of homes in the lower end ranges (below $80,000) continues to diminish indicating in this range it is a sellers market.

A Seller's Market is determined when the amount of buyers exceeds the inventory of homes available for purchase.

Short Sales and Foreclosure offerings are still attracting multiple offers from perspective buyers hoping to obtain a bargain priced home, however the long delays in bank approvals have frustrated many buyers, some waiting for many months for an answer from the bank.

One local Realtor reported delays as long as 6 months on one of these properties. " Banks are simply overwhelmed and lack the manpower to push files through at a faster pace, if a buyers wants a good deal they are going to have to wait and be patient." according to Earl Dolinar, a Realtor for Zip Realty in Poinciana, a market where short sales still dominate the market.

As a result closing these sales is a laborious task with a smaller success rate than traditional sales. However, the price of these is also on the rise in month over month comparisons due to competing offers which are driving the market value higher.

Waiting for Third Party Approval has driven many buyers to seek traditional sales or property already in receivership (REO) properties. It would seem that the Short Sale is a stop gap between traditional sales and foreclosures, the system for disposing of them is mired in muck and the wheels move very slowly. Additionally, there are other variables which could potentially effect the successful outcome.

Sellers involved in short sales must negotiate with the lenders they are indebted to, often having more than one outstanding loan against the property- which could mean more than one lender is involved. The sellers are still responsible for the unsatisfied outstanding debt. They are often asked to sign a Promissory Note for the difference, or issued a Deficiency Judgement though the Court. In the alternative many have sought Bankruptcy Protection which further stalls the transfer of the homes until a Trustee appointed by the Court is assigned to dispose of the debtors assets.

There are still numerous short sale properties as well as bank owned properties, in St. Cloud, Florida some price ranges are experiencing diminished inventory. Particularly in the $75,000 price range. The median price for St. Cloud, Florida extrapolated from the sales between 8/1/09 and 9/1/09 was $130,000 There were 69 closed sales during this time frame.

An increase in median sales price, diminishing mid range inventory of homes and greater buyer demand are all indicators that the recession affecting the Real Estate Existing Home Market may be drawing closer to an end. It is predicted that recession conditions will extend into the Spring of 2010.

Problematic for bank owned properties which are sold "As-Is" are missing appliances,cabinetry, damaged flooring, missing or malfunctioning air conditioning units and plumbing issues, as well as damage to the property itself, that preclude many home buyers seeking FHA financing.

Although there are alternative financing programs available such as 203 (k) construction type loans, buyers must first make the repairs and pass inspection of repairs made, before the bank will issue a draw to reimburse them. Many simply lack the financial fortitude to rehabilitate some of these distressed properties.

BURIED DEEP IN THE FINE PRINT IS A NEW FEE LURKING...

RECENTLY SOME SHORT SALE LISTINGS HAVE BEGUN ADDING A FEE TO THE BUYER OF 1-1.5% TO BE PAID TO A THIRD PARTY NEGOTIATOR AT CLOSING- READ THE FINE PRINT IN ADVANCE.

THE EXISTING HOME MARKET IS STILL PRICE DRIVEN

What that means is the lowest priced properties stand a better chance of selling faster than their higher priced counterparts. On average 123 days.

Allison Stewart is a licensed Florida Real Estate Broker/Associate serving Osceola County, Florida

IS THE TASSLE WORTH THE HASSLE? Not everyone is college material. While we all know the importance of getting a good education, there is a segment of young people who thrive outside of the classroom. They are bright, hard working, and have talents in areas text books don't necessarily speak to. But more importantly, they are capable of buying Affordable Housing.

For what it would cost to rent a small apartment- They can own a home. One of the best things about an economic recession is it levels the playing field for many people from different walks of life who were previously shut out due to soaring housing costs. Homes for them at that time simply were pipe dreams.

A GOOD WORK ETHIC MAY PAY HEFTY DIVIDENDS...

BEEN WORKING CONSISTENTLY SINCE HIGH SCHOOL?- You have a good solid work history. Lenders look favorably upon that.

Been paying your bills on time?- Another important first step to owning your won home.

Have you been saving money for your downpayment? Often times lenders wil allow a "gift" to assist you in getting down payment money. Cashing in those college bonds, could be the key to getting in the front door.

Buying a small home now, would be the equivalent of renting a small apartment somewhere else with one big difference...YOU OWN IT.

YES YOU CAN!

Perhaps it is time to sit down with a Bank Representative and discuss your options vefore the Market shuts you out. Small first time start homes in St. Cloud, Florida range in price from the mid 40's to 100's. Depending on yor credit score you could easily become a home owner.

IT IS NEVER TOO EARLY TO START PLANNING YOUR FINANCIAL FUTURE- Join the 20 Somethings who are dicovering they too can own a home.

Parents concerned about helping their maybe no so college bound children get ahead in life, are looking at Real Estate Investment as a way to help them launch into the future with security. Over time your investment will grow.

WHY RENT WHEN YOU CAN OWN?

Did you know there are tax advantages to home ownership? YEP. Mortgage Interest you pay is Tax deductible. Depending on what you make that could mean a bigger refund at tax time.

THINKING YOU MIGHT WANT TO SEE IF HOME OWNERSHIP MIGHT BE FOR YOU?

Contact me- I will happy to help you get started.

Allison Stewart, Licensed Florida Real Estate Broker/Associate Florida Pines Realty, St. Cloud Florida- First time Home buyers Welcome!

WHICH NICHE IS VANISHING? Is it the luxury market? The commercial market? The first time home buyer? Vacation home? Any or all of the above?

In My Market of St. Cloud Florida, If you are a first time home buyer looking for a three bedroom two bath home priced 75,000 or less.... you may have missed your opportunity time. Supplies of homes in this bracket are in great demand and short supply indicating that the market has taken a significant turn from a Buyer's Market to a Seller's Market.

WHY IS THIS IMPORTANT?

First time home buyers working under the assumption that it is still a Buyer's Market, are grossly under estimating their competition. In this niche, there are an abundance of buyers looking to cash on the tax credit incentive, as well as investors looking to purchase rentals. The turn over rate is very high and the supply at the present time is very low in St. Cloud, Poinciana and Kissimmee

WHY BUYERS WAIT ....UNTIL IT IS TOO LATE

There is a term in Real Estate called "Time of the Essence"- basically it means actions must be done within a specific time frame. First time home buyers are often afraid to make a quick decision regarding the purchase of a home- as a result, they are learning here in St. Cloud, Florida that the home they wanted, was also seen by someone else who wanted it more and was ready to make that offer first.

More Importantly- The offers they are making are at FULL PRICE.

POSTERING YOURSELF TO WIN

There are a few things you can do that are simple and easy to win in this market.

1. BE PREPARED-

Have a Pre-Approval Letter from your lender in hand before you begin viewing property.

2. BE READY TO BUY-

Previewing property online is an excellent way to narrow down the homes you really want to see.

Once you visit the home that is most appealing be prepared to write the offer then and there.

Too often, first time home buyers want to wait and think it over only to discover the home they wanted, went under contract that same day. If you find a home YOU really like, chances are someone else has seen it too.

3. ASKING FOR CONCESSIONS IS LIKE HAVING YOUR HAND OUT

IF YOU ARE LOOKING FOR SELLER CONCESSIONS YOU ARE COMING TO THE TABLE WITH YOUR HAND OUT.

CASH BUYERS IN THIS NICHE ARE MORE PLENTIFUL ESPECIALLY IF THEY ARE INVESTORS-

THEREFORE IF YOU ARE FINANCING THE PURCHASE, ASKING FOR THINGS LIKE CLOSING COSTS MAKE YOUR OFFER LESS ATTRACTIVE TO THE SELLER.

"As-Is" means no repairs. What you see is what you get.

HOME INSPECTIONS: Once your offer has been accepted-get one right away.

They are the best investment you will make in the purchase process. As long as nothing severe comes up, like structural damage, expect to have to make some repairs to homes in this price range.

EXPECT TO PAY FULL PRICE OR ABOVE

If you love to haggle, you may be haggling yourself right out of the deal. Recent Market stats in this niche indicate that sales price to listing price ratios are at 100%.

This means sellers are getting the asking price or above consistently.

A Sellers Market Means: There are more buyers than there are homes available. In this niche of 75K or less multiple offers are not uncommon.

My buyers are given a market stat report so they have the information they need to make an informed decision.

In St. Cloud, Floridaas well as parts of Kissimmee and Poinciana the Market Recovery has begun. Prices are steadily inching upwards in month over month sales. There are still some excellent opportunities out there, but if you wait...it will be too late and the market will pass you by.

Allison Stewart, Licensed Real Estate Broker/Associate/REALTOR® 407-616-9904

Florida Pines Realty, LLC

REAL PEOPLE , REAL DEALS , REAL ESTATE

IS IT A BUYERS MARKET OR A SELLERS MARKET? Many buyers have latched onto the term "buyers market" as a snappy catch phrase. While they may be looking to buy indeed they are not alone.This concept is very confusing when attempting to arrive at fair offering price.

But in reality, it is an Inventory Term used in Real Estate to define how inventory is shifting.

Numbers are powerful. They are also Persuasive.

They trump opinion, perceived value, or unintentional ignorance of what one may think the market is doing.

In fact, they are the strongest line of defensive reasoning we as professionals have.

There are a high number of low end buyers in Poinciana and St. Cloud, Florida. As a result, they feel they can undercut REO/ and Short Sale prices substantially and still be successful. That is the old mindset. Probably was true in 2007- but now...not so much.

ARMED WITH MARKET STATS- THE NUMBERS SPEAK MORE LOUDLY THAN WORDS.

There were 297 homes sold in the last 60 days.

11 of those sold were in $60,000-$65,000

6 of those sold at ABOVE list price

3 sold AT list price

2 Sold at BELOW list price.

Which means you have an 82% chance of Failing to get an offer below asking price accepted at that Price Level. That is tough competitiion.

Given the low number of homes available in this price range , and the high number of competing offers-it is a Seller's Market.

It is happening all over my market of Osceola County- WONDERING WHAT A FAIR OFFER MIGHT BE?

CONSULT A LOCAL EXPERT-

ST. CLOUD FLORIDA OFFERS OPPORTUNITY TO BUSINESS OWNERS AND HOME BUYERS. Business Owners tired of paying for overpriced commercial space are taking a serious look at St. Cloud, Florida. A sprawling community located on Disney's Doorstep, and sandwiched between Kissimmee and Melbourne.

It's convenient location provides easy access to the main arties of the Florida Highway system of I-95, the Florida Turnpike, 417, and I-4. Commercial space is abundant along the 192 corridor. It is more reasonable priced than it counterparts at the Loop for instance in Kissimmee.

St. Cloud, Florida has a population of 29,000 people, and the median age is 47.6 years. Once a retirement community, the expansive building of residential housing in late 2005-2007 and the Opening of The UCF College of Medicine at Lake Nona has made St. CLOUD FLORIDA attractive to investors once again.

The Chamber of Commerce is active recruiting new members and hosts networking opportunities on a weekly basis. Whether you are a large big box retailer, or a small family run business seeking to locate in an area that welcomes you- St. CLOUD FLORIDA is an excellent place to consider.

As a local Real Estate Expert in St. Cloud Florida I would be happy to assist you in locating the perfect space to launch your business here in St. Cloud, Florida

ST. CLOUD FLORIDA AT GREAT PLACE TO LIVE WORK AND PLAY