Orlando, Florida Short Sale Home Buyer Tips: An Interview with Chris Myers of the Orlando Property Group

Written by admin on 12 February 2010

Orlando, Florida Short Sale Home Buyer Tips:
An Interview with Chris Myers of the Orlando Property Group

We were interviewed by Kevin Sandridge of the blog site, www.floridamortgageblogger.com. Kevin is one of Orlando’s premier mortgage broker’s, and through doing business together, we’ve come to respect his industry knowledge greatly. Below is the interview.

Home sales numbers in the Orlando, Florida area are up, and there’s one single reason why… bargains in this area haven’t been available like this for over 30 years! However, the help of an experienced Real Estate Agent is a must if really want to ensure a smooth transaction on your next Orlando, Florida area home purchase.

Once again, I headed straight to Orlando, Florida Short Sales Real Estate expert Chris Myers, with the Orlando Property Group to ask exactly why he thought this just might be the best time to enter the housing market here. This is what he had to say:

Kevin Sandridge (KS): “Chris, thanks so much for taking time out to talk with us here at the Florida Mortgage Blogger about the Orlando real estate market. I know our readers always love the information and insight you provide.”

Chris Myers (CM): “My pleasure, Kevin. It’s always nice to stop by.”

KS: “So Chris, there’s a little bit of a buzz generating lately around whether now is really a good time to enter the housing market here in the Orlando, Florida area. Why do you think this is?”

CM: “You’re right, Kevin. There has been a noticeable upswing in buying activity in the area, and I think one of the main reasons is that there are a lot more homes in the Orlando area for folks to choose from. Whether they’re trading up to accommodate a larger family or moving into the area to take on a new executive position, buyers can basically take their pick of excellent properties in prime locations inside Orange, Osceola, Seminole, Volusia, and Lake Counties.

All told, there were nearly 25,000 properties for sale in the Orlando area in October, including single-family homes, condos, town houses, duplexes, and villas. It’s just a matter of people finding a home that fits their budget in a location they like.”

KS: “There sure seem to be a lot of great deals out there. I imagine a lot of first time home buyers might be looking to take advantage of homes that are either in pre-foreclosure or foreclosure status. What are some things they should be careful of when looking at these types of homes?”

CM: “That’s a great question, Kevin. There are several areas that deserve special attention from short-sale buyers. These include, but aren’t limited to:

The time required to complete short-sale transactions
The home’s condition and “as is” nature of the short-sales contract
How to finance their short-sale purchase
How to contend with multiple short-sale offers

The Timing of Your Orlando Area Short Sale

The first thing buyers interested in pre-foreclosure status homes need to understand is the waiting period involved with many Orlando area short sales. Even the smoothest transactions can take months to complete. It’s not at all out of the question for short sales to take up to three or four months before receiving an answer from the bank”

The Physical Condition of Your Orlando Area Short Sale Home

The home’s condition is another thing to take into consideration. The majority of pre-foreclosure and foreclosed homes are sold on an “as-is” basis. This is not necessarily a bad thing. Often, they are only in need of some minor cosmetic repair. Other times, however, they can lean more towards your “handyman special” and come without any major appliances. The key here is for buyers to be sure and negotiate time enough to properly inspect the Orlando area home you’re considering and, if necessary, provide a means to cancel the contract should the home’s condition be completely unacceptable.

Financing Your Orlando Area Short Sale

As with any home purchase, you’ll want to be sure you get all of your ducks in a row in terms of financing your Orlando area short sale. There’s a conception out there that FHA loans can’t be used to purchase short sales. This is untrue. They can in fact be used. Actually, as you and I have discussed, Kevin, FHA is in some cases even willing to waive their 90 day seasoning requirements if the home a buyer is purchasing has moved into foreclosure.

Contending with Multiple Offers

The Orlando, Florida area has an unbelievable number of short sale opportunities available right now. We’ve all heard the “buy low, sell high” stock purchase philosophy. Well, the same philosophy applies to the housing market. The US housing market is currently 3.8% undervalued. The Orlando market is in far worse shape value wise. According to a December 3, 2008 Orlando Business Journal article, the October median home price here in Orlando, Florida was $177,900, 25 percent less than the $238,500 reported in October 2007.

KS: “That’s amazing – and a real chance for folks in the right financial position to gain a great deal of built in home equity at the time of purchase! Just look at the picture -home affordability is near an all time high, interest rates are holding steady at very attractive levels.

CM: “That’s it, exactly, Kevin. And the thing here is that savvy investors are absolutely on top of this situation. So much so, that nearly every well-priced Orlando, Florida short sale I’ve seen or been a part of recently has had multiple offers on it. Short sale buyers in our area need to be prepared to act immediately if they find the perfect house. They also need to be ready to offer the seller’s asking price or even a little over the asking price in some cases, as attractively priced short sales can often become the focal point of some pretty fierce bidding wars.”

Establishing the Asking Price in a Florida Short Sale

KS: “Chris, one question I hear often from my clients concerns setting the sales price of a home in a short sale. Who typically decides the asking price for short sales here in the Orlando area?

CM: “In most cases, Kevin, the banks or lenders holding the note make the final determination as to how much money to ask for the home. Most banks are willing to do what it takes to sell them quickly, and they understand the power of market value. However, their main objective is to recoup as much money for themselves as possible, so they aren’t apt to just give the home away for a song.

My advice to people interested in buying a home here in the Orlando, Florida area via a short sale is this: Don’t get greedy if the house is already priced well. Have your real estate agent do a market analysis to determine the home’s true value and go from there. But remember, the bank will be far less willing to negotiate a lower price if multiple offers start pouring in.”

KS: “OK. So get your offer in early, and make it as competitive as the situation dictates. Got it. But what about up front money? Let’s talk briefly about what making an offer and whether good faith deposits are encouraged.

At the peak of the last housing market boom, sellers were fielding multiple buyer offers at once. Often, buyers who failed to put down good faith deposits were left out in the cold. Since we’re now in a buyer’s market, can you talk a bit about whether good faith deposits are still a must?”

CM: “Good faith deposit, or escrow deposit is actually required in order to make an offer on an Orlando, Florida area short sale. However, the actual amount of that deposit is negotiable. Typically, sellers are looking for earnest money deposits of about $1,000. It may be a buyers market, but only if your able to buy. Seller’s recognize this and want to know you’re not only willing to buy, but capable as well. It also shows them that you won’t simply walk away, after they’ve taken the home off the market.”

KS: “So I take it that, just as with a typical new or existing home purchase, you agree with me that buyers should get pre-qualified for a Florida home loan before beginning their Orlando, Florida area short sale shopping experience?

CM: “Absolutely. It’s imperative that a homebuyer get pre-qualified before beginning their home search. That’s really the first step. In fact, when someone calls us about a property, we help them get in touch with the right Florida home loan professional to make sure their financing is in order.

Many homebuyers think they know their credit score, or what they can afford, but when the price is broken down into monthly payments, and things like taxes and insurance are factored in, they sometimes find they don’t want to spend as much. It goes the other way, too. Buyers think they may be in the position of paying one amount, but discover through the help of their Florida home loan specialist that they are actually comfortable buying more home than they originally thought.

In any case, I can’t stress enough how important it is for everyone – homebuyers or not – to understand where they are in terms of their credit report. The credit bureaus freely admit that data entry error and other errors occur in the area of credit reporting.

Good credit is the key to financial stability and long term wealth, and you know, Kevin, just how much of an impact 10 or 20 points can make in terms of the long term money folks will pay out over a 30 year fixed rate mortgage. Too often I’ve seen good people end up with lower than expected credit scores due to information about late payments or other derogatory data being added to their credit reports erroneously. Meeting with a qualified Florida mortgage broker early on in the home purchasing process gives people the time required to combat this type of situation should it arise.

I’ll end by saying that even in situations where people have met with a Florida mortgage broker and were pre-approved for a Florida home loan, they still need to follow up to be sure nothing has changed on their credit – or that the program they qualified for is still active. Lending standards have changed so dramatically lately, that the only way to know where you stand for sure is to consult a qualified Florida mortgage broker.

Selecting the Right Realtor to Handle Your Orlando, Florida Area Short Sale Purchase

KS: “That is some valuable advice, Chris. And is basically what I tell all of my clients and referral partners as well. I’d like to round things out by asking you to provide some insight into how home buyers interested in Orlando, Florida short sales should go about selecting the right Realtor?

I imagine that, just as with the legal profession – where a lawyer may specialize in criminal defense or patent law, Realtors have their particular strong suits as well. Some may deal primarily with luxury homes and short sales, such as yourself, while others specialize in commercial real estate or conventional residential real estate. What qualifications should folks interested in Orlando area short sales be looking for in a potential Realtor, and what are some questions they should ask?

CM: “That’s such an important question, Kevin. You’re absolutely correct in that Realtors do tend to specialize or achieve professional comfort zones with specific types of real estate transactions. The thing you most definitely do not want to do is trust your short sale purchase to a real estate professional who is learning as they go. We’ve outlined many of the “built in” challenges that come with just about every Orlando area short sale – including

longer than average wait times to close,
gauging the condition of a short sale home,
price negotiation and financing, and
the need to contend with multiple sales offers on the property you may want to buy.

Quite simply, the care and feeding of a short sale is not something you want to entrust to someone who does not have a proven track record for success with them. Between the timing involved, paperwork they entail, and the sometimes repeated negotiations required to close an Orlando area short sale – you want a real estate professional on your side who can close the deal. Here are some key things to look for:

First, it’s important to choose someone you can trust. You’ll be working with your Realtor throughout the short sale process, and you’ll have to be comfortable sharing information about your finances – but also your hopes, dreams, and the fears you may have regarding the short sale purchase itself.
It’s also important in today’s market that you have an agent who’s skilled in short sales and foreclosures, as many of the homes you’ll be viewing (some say about 40-50% of Central Florida homes) are in some stage of distress. These types of sales can be very tricky, and it’s crucial that your agent possess the knowledge and experience required to serve your best interests.
Lastly, though I truly believe that most Realtors are honest, hard working professionals who keep their clients’ best interests as a priority, we are in a tough economy. The most smoothly managed short sales are not without some significant challenges or obstacles, and there are cases where even the most seasoned short sale real estate professional may have to circle the wagons in order to get the deal done. I’d hate for someone to lose out on purchasing a home that really fits their family’s unique requirements simply because they didn’t select a Realtor with proven short sale experience.

KS: “Wow. Well said, Chris, and once again you’ve provided us with some invaluable information for those looking to buy homes here in the Orlando, Florida area via the short sale process. Thank you so much for your time today, and we hope to have you back again very soon.”

CM: “Thank you Kevin, it’s always a pleasure.”

KS: “Remember folks, whether you’re buying a home to live in or you’re looking for one as an investment, work with an experienced real estate agent who knows the local Orlando, Florida area. Your Realtor® can prepare a Comparative Market Analysis (CMA) to help you make informed decisions. An agent who specializes in short sales and foreclosures can explain the benefits and pitfalls of buying properties in those categories, too.

A good real estate agent is worth their weight in gold! If a real estate purchase in the Orlando area is in your future, either as a home owner or investor, talk with a Realtor® now about the advantages of taking action in today’s affordable market.”

If you’re currently in the market to buy a home, and are wondering if now is the right time to pull the trigger, check out this article Chris Myers wrote detailing whether now is the right time to buy an Orlando, Florida area home.

Is A Short Sale Right for Your Situation?
Find out today: If you live in Central Florida, contact The Orlando Property Group, your experienced short sales agents, specializing in real estate in Lake, Seminole, Orange, and Volusia Counties.

Seaching for a great real estate value in Central Florida? Need help with a short sale?
Call or email me TODAY to go over your options!!!!!!

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