On April 5, 2010 a new program will go into effect that will change the way short sales have been stigmatized and processed for the past several years. Under the US Treasury’s new HAFA plan (Home Affordable Foreclosure Alternatives) short sales will be more streamlined, less stressful and offer more to the seller in terms of commitment, guarantees and cash. The new program not only offers incentives to the underwater borrower but also to the lender, in an effort to finally reach some level of balance between the two.

If you are a home owner, unable to pay your current mortgage and struggling to find a solution, this may be the solution!

To find out all of the important details of the plan and how it differs from a traditional short sale read below:

Why is this so HUGE?

In the past the lenders have tried to settle hardships with borrowers by modifying their loan. If the borrower did not qualify for a modification or was still unable to pay after a modification was granted, the home would either be listed as a short sale or eventually go into foreclosure. In these situations the lender is able to come after the borrower for the remaining dollar amount. (For example: a borrower’s mortgage amount is $200,000 the home is sold as a short sale for market value at $135,000. The lender holds the borrower responsible for the $70,000 difference.)

With the new HAFA program, the lender guarantees total debt forgiveness. They promise to NEVER come after you or hold you responsible for the remaining balance.

What’s in it for you?

In addition to the lender guaranteeing total debt forgiveness and  pre-approving the short sale terms (so you can move on with your life more quickly and avoid foreclosure!), Cash for Keys is the only program that offers you up to $3,000 cash in relocation assistance. The HAFA program is also probably one of the least credit damaging options available. In a traditional short sale your credit gets hit each month you miss a payment, with the process taking so long it can add up to over a year of missed payments. And the lender can still hold you responsible for the difference.

The new program requires that the entire process take no more than 5 months, there-by minimizing the damage on your credit report and releasing you from future liability.

Find out if you qualify for HAFA today:

Simply fill in the form below or call one of our Certified Distressed Property Experts at 407-340-6458 and find out if you could and should consider this program!

Cash for Keys (or HAFA) is designed for borrowers who are facing a hardship and cannot pay their mortgage. A lender participating in the program must consider borrowers for this new program if they qualify. After filling in the form you will receive all the details about the program via Email and find out if you qualify.  For a more immediate response please call one of our CDPEs at 407-340-6458.

How will this affect the real estate market?

Part of the problem currently affecting real estate is the flood of homes on the market. Traditional short sales take up much of this inventory. Because the negotiation process with the lender is so slow, these homes can sit for months after an offer for purchase has been made. The vacant home begins to show neglect and eventually prices in the community drop even further spurring more short sales and prolonging the instability of the market. In addition the prospective buyer may get tired of waiting for a response and finally move on to another property.

With the new Cash for Keys program the lender pre-approves the short sale terms and promises to respond to offers with in 10 days. The simplification of the process and a rapid response to offers helps the market stabilize more quickly and reduces the number of homes available for sale.

What’s the First Step to get started?

If you want to participate in the HAFA or any short sale program your home will have to be listed with a Realtor. Please remember that there will be absolutely NO fees for you – we will be paid by your lender! Our team has been trained in all aspects of successful short sale completion and we are CDPE certified and have attended the HAFA training of the Certified Distressed Property Institute! You can rely on our expertise and professionalism to help you with the successful sale of your home.

Please contact us today at 407-340-6458 (or fill in the contact form on the top left of this page) to schedule a confidential consultation so we can inform you about your options. This is a free service and there is absolutely no obligation!

When Orlando home owners start thinking about potentially selling their home, one important question usually comes up early on: What did other homes in my neighborhood sell for? Especially in the current market it is crucial to have this information available to you to make informed decisions. After all, nothing could hurt you as a home seller more than overpricing your home. But not only future home sellers are wondering about current real estate prices in Orlando’s neighborhoods. Some home owners simply want to stay informed – and we think that is important. Consider it as “checking how your investment is doing”.

Jose and I would like to share the the 3 best and free ways for home owners in Orlando to find out what homes are selling for – without having to speak to anyone.

1. Use our FREE Smart Phone Application: One of fastest ways is downloading our smart phone application (free for iPhones, Blackberrys, all Nextel/Sprint phones – for all other carriers a small nominal fee applies) called Homes for Sale. With this wonderful and easy to use application you can not only find out the current listing prices of homes in your neighborhood but also the sales prices (going back as far as 3 years!) of the homes that compare to your property. Watch the video to see what the Today Show is saying and then feel free to download/send the application right to your phone or iPod Touch below. Likewise you can also text DREAMHOME to 87778
   
   
2. Search the tax records: A much more time consuming but just as accurate way to get the info on recent home sales in the entire Orlando area is to search the online tax records by subdivision or street name. Just as with the smart phone application the down side of this method is that real estate sales are not recorded instantly so you will miss out on up to date information. It may take up to 30 days until information is available online. If you are in a hurry though you can’t afford to wait that long. Follow the links below to search the official sales records in your subdivision:
   Orange County | Seminole County | Lake County | Volusia County | Osceola County
   or:
3. Automated Free Neighborhood Sales Alert Emails: By simply filling in the form below you can subscribe to our FREE market snapshot email updates for the neighborhood or zip code of your choice. All we will need to get you started is your Email address and the neighborhood of your choice. You can unsubscribe anytime, it is that easy! The advantage to this form of home sales research and neighborhood price observation is that this information is the most up to date. The minute a home is listed as sold in the Orlando MLS (Multiple Listing Service), you will be notified. No more waiting and guessing and no need to call anyone to get the complete info. Another benefit is that with this solution you will be able to see features and pictures of the home that sold so you can truly get a good comparison to your home.
   Please note: If you would like to extend the sales alert to other areas or an entire Zip code please fill in the appropriate fields. For extended searches we recommend giving us as much information as possible so we can make sure to only send you relevant properties that truly compare to your home.

(After completing the form you will be re-directed to our Home Search Page.)

Are you currently trying to sell your home by owner? In Orlando’s current market is is quite understandable that home owners choose this option as a way of trying to sell their home. Many of these home owners know about all the down sides of this route, however they feel that they don’t really have a choice given the fact that many are “upside down” on their mortgages. Their last hope is to “save” some money on the real estate commission and then somehow make it to the closing table without too much further loss.

Obviously, we have tons of arguments why selling your home on your own is simply not a good idea, however in this article we would just like to provide some helpful advice to home sellers who are currently “For Sale By Owners” in the Orlando area.

Many of you have realized that selling your home is all about the right exposure and have therefore already gone a step further and listed your home with one of the many flat fee MLS brokers out there. For as low as $395 you can list your home in the MLS and offer a compensation to the Realtor who brings the buyer. (No comments on that at this point either because, again, this article is not about the downsides of this route).

So let’s assume you are listed in the MLS (because quite frankly, if you are not, you are simply loosing out on exposure and will sell your home for significantly less), here are some useful tips that can help you to market your home on your own.

Orlando For Sale By Owner Help – DIY Home Selling Marketing Strategies

• The Orlando MLS allows a total of 10 images so try to take advantage of that and post 10 images (buyers love that). Unless your home does not show nicely or is in a bad condition, anything less will hurt you.
• If you are willing to invest in professional photography, we can recommend a great photographer (he’s the one we’re using). It really makes a huge difference and will increase interest. Some photographers take pictures for as low as $80.00 which is well worth the money. In addition to that you can have the photographer produce a virtual tour of your listing. Some even offer to upload them to YouTube and other online video web sites.
• Write a long description listing the benefits, not the features of your home. You might live close to the mall, I-4, Turnpike, 417, 528 or 429. Or do you live close to Disney or Universal? Can you see the fireworks from your back porch? Is there a lake with dock in your community? What about other community amenities? Buyers often don’t have access to this information even though you may have specified it when you entered the listing. SO make sure you have included the info in your listing description. Buyers show interest in homes that have descriptions that address their feelings and emotions. The more information you can give in the description, the better. Be enthusiastic and try to remember what is was that made you buy your home. Some of the most effective words in listing advertising are: lovely, bright, clean, spacious, open, and cozy.
• Definitely post on craigslist and post often! Even though craigslist.org is not a beautiful looking web site by any means, home buyers look here daily! Your ad will be visible for several weeks, however since you are competing with tons of other home owners and Realtors, post your home a minimum of once per week. Ideally open several accounts (with different email addresses) and post 2-3 times a week. Be aware of spammers and fraudulent Emails though and do not schedule appointments until you have made sure who the potential buyer is. Ideally you may want to ask them for a pre-approval letter!
• Two other great classified ad web sites that are free to use are Kijiji.com (Ebay’s classified site) and backpage.com.
• Here is a list of great real estate web sites where you can post your home for free: Zillow.com – Trulia.com – Oodle.com
  There used to be more free ones but many providers charge a fee now. These are the biggest ones though and since you are in the MLS you have at least the basic listing version on Realtor.com (which is the largest consumer real estate site).

Fill in the form below and we will mail you the complete DIY Home Selling Guide for Orlando Home Sellers at no cost to you! You will receive your guide within 3-5 business days.

This 30-Day, 5-Step Home Selling System is the must have guide for every serious home seller in the Orlando area! On over 40 pages you will learn everything you need to know when selling your home on your own.

Table of Contents:

• Introduction
• How much Can You Save?
• The Key Questions
• Understanding How To Prepare Your Home For Sale
  - Be Neat and clean everywhere
  - Exterior Preparations
  - Interior Preparations
  - Showing Advice/Preparations
  - During the Showing
  - A Handy Daily Checklist
• Understanding How To Price Your Home For Sale
  - Pricing Strategies
  - How to determine Price
  - The Motivation Factor
• Understanding How To Market Your Home Successfully
  - Classified Ad Writing Magic: The Basics Of Creating & Writing Classified Ads That Produce Buyers
  - Typical Mistakes That You Must Avoid So That You Can Write Powerful Classified Ads
  - Transforming Your Features Into Benefits That Will Make Your Prospect Pick Up The Phone And Call You, NOW!
  - The Steps For Turning Features Into Benefits
  - Rules For Writing Classified Ads That Motivates Your Prospect To Respond NOW
• HOW WELL WILL IT SELL? A Do It Yourself Guide To Predicting How Well Your Property Will Sell
• Understanding How To Qualify Your Potential Buyer
  - How to handle callers
  - Be Flexible
• Understanding How To Close Your Home
  - The Contract
  - What is Escrow?
  - Who Pays What?
  - Real Estate Transaction Checklist
  - A Few More Real Estate Terms You Need To Know

Order the FREE DIY Home Selling Guide for Orlando Home Sellers

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Wondering if the the Orlando real estate market has stabilized? Watch the Central Florida Market Update Video provided by the Orlando Regional Realtor Association and learn more:

Here is a quick summary of the Orlando real estate market video:

• Sales in January 2010 are up 66% compared to January 2009.
• January 2010 was the 17th consecutive month where we have seen more sales than the year ago.
• 54% of homes sold were below $140,000 (due to first time home buyer and investor demand).
• The overall median sales price was down 30% compared to 2009 from $148,274 to $103,000. This has improved affordability which means new opportunities for buyers.
• Even though homes are more affordable there are less homes to choose from. Inventory has dropped dramatically from the last year from 22,613 to 15,911 homes in the Orlando real estate market. That is an almost 30% drop! This amounts to about 9 months of supply as opposed to the 21 months supply of homes the year before.
• Decline in inventory and increase in sales means it is taking much less time to sell a home than it used to, making it 90 days in today’s market, a drop of 12% compared to the average days on market a year ago.

So altogether, not bad news for Orlando’s real estate market! Let’s see how the soon expiration of the first time home buyer tax credit affects market activity. What we have noticed lately is: there really are not many homes to chose from in the market! It is becoming very hard to find a home in the $200,000 – $300,000 price range in the Sanford/Lake Mary area. So if you are a home owner and have been thinking about selling, now may be the time! And obviously, if you are a first time home buyer, buyer (who qualifies for the $6,500 expanded tax credit) or investor in the Orlando area: now is the time to buy!

This is a question many home sellers in the Orlando area are asking themselves right now. In this market selling your home is becoming more and more difficult, not only because of the still quite high inventory and fact that more than 50% of all homes listed in Orlando today are short sales, but also because of the competition of bank owned properties. We have put together a basic home seller checklist with some of the most simple but important questions you should ask yourself before considering the sale of your home. We hope this list gives you some insight and helps to determine your motivation as well as options.

If you need a free home value analysis or simply real estate advice please don’t hesitate to contact us anytime to schedule a free confidential no-obligation consultation. We are the local experts and can provide you with valuable market data that will help you make this important decision.

Orlando Home Sellers Check List

Determine your need to sell.

• What are you goals for the next 5-10 years?
• What are the pros and cons of selling your home?
• Can you afford to sell and buy a new home?
• What does the local housing market look like?
• Think about remodeling your home to fit your needs?
• Have you thought about renting out your home?

Calculate the Selling expenses

• Are there repairs or projects you will have to complete in order to get your home ready to sell?
• Consider the cost of closing costs and Realtor commissions. Typically these run on average around 7 to 10 percent of the sales price of the home.
• Will you have to pay a capital gains tax?
• Does your current mortgage have any payoff penalties?
• How much will it cost to hire movers? Set up new utilities?

What is your selling strategy?

• How fast do you need to sell?
• How much profit (if any) do you expect or need from the sale?
• Interview a minimum of 3 reputable local real estate agents.
• Determine what you consider to be your home’s greatest strengths.

What are “strategic defaults” and why are more and more people considering this option?

A strategic default occurs when a homeowner who can afford to make their monthly payment chooses to stop paying and short sale their home because they feel it is a bad investment. With over 5 million homes now “upside down” it is clear to see why so many feel their investment has gone bad. While the decision to walk away from a home you could technically afford may seem to go completely against the norm of society, it is interesting to note that corporations, investors and even banks (!) have been doing it for years.

Recently several reports have been written discussing the topic of “strategic defaults” and short sales. The majority have overwhelmingly concluded that if homeowners could look at their property from a purely financial perspective then strategic defaults would certainly appear to be a reasonable decision. Brent T. White, a University of Arizona law school professor asserted in his paper titled “Underwater and Not Walking Away: Shame, Fear, and The Social Management of the Housing Crisis” that “Homeowners should be walking away in droves, the financial costs of foreclosure, while not insignificant, are minimal compared to the financial benefit of strategic default.”  He also states that until homeowners are able to look at their property as a failing investment and simply walk away, the banking system will not be forced to re-examine their willingness to actually modify mortgages.

According to White the reason some people continue to pay on a mortgage despite the home’s loss of value is a result of “misplaced loyalties and antiquated values (that) prevent otherwise clear-headed individuals from simply walking away from a bad business deal.”

However, with the general consensus that banks have used predatory lending practices and have actually benefited from this crisis and the question of values or ethics gets tossed out the window. Liz Puliam Weston of MSN has stated “Lenders showed an astonishing lack of morality and responsibility by pushing risky loans. They could have redeemed themselves by getting serious about restructuring mortgages to make them affordable, but their efforts so far have been pathetic. Regulators, meanwhile, stood idly by while the foxes raided the henhouse, and lawmakers dropped the ball by not giving bankruptcy judges the power to modify home loans.”

But even taking the moral implications (if one considers there are any) out of the equation, there are still real consequences to letting a home go into foreclosure or choosing to short sale a property. And the cost of owning it should be compared carefully to cost of strategically defaulting.

It is important to note that a strategic default is still a default and has the same effect on credit scores. But unlike a traditional default, careful planning and a well structured short sale can help minimize the implications.

In the end homeowners paying on a mortgages that are worth half their value will decide what is in their best interest both financially and morally.

In the meantime we would love to hear what you think. Do you think that offering a home as a short sale carries a moral weight? Do you think that financial prudence and morality are linked?

Click here to read in full Brent White’s report or Liz Piliam Weston’s article.

If you are one of the many who either need to sell due to financial reasons or simply have that itch and want a fresh start, you are not alone. The old expression, “there is safety in numbers” does not apply to the current Orlando market and those numbers add up to stiff competition. To set your home apart from the crowd you will need to impress buyers.

Here are 5 low cost ways to impress Orlando area buyers and get your home sold.

1. Many buyers make a decision about a home within the first few seconds after entering. Start off on the right foot by making your entry way clean and inviting. We agree that a fresh coat of paint on the front door and well placed console table is an inexpensive way to make your potential buyer feel more confident about your home.
2. Closet space is a big issue for buyers, they want to know that there is space to store not only their clothes and shoes but anything else that might pile up. After all most of them are moving from smaller apartments and buying a home to them equals increasing their amount of living and storage space. Cleaning out and organizing your closets will help make the closet space seem larger and give the buyer the opportunity to imagine their prized possessions in the space. At the same time it will get you started packing up for your big move. Sooner or later you will have to de-clutter and pack – you ight as well do it now, especially if that means selling your home faster and potentially for a bit more.
3. Believe it or not lighting can play a crucial role in selling your home. Every buyer wants their potential new home to feel spacious, light and bright. Open your curtains and blinds to let natural light flow through the home and turn on the lights throughout the house to help add to the ambiance. If you have little extra in your budget, upgrade some of the fixtures and always make sure that all of the light bulbs are working. If you can, turn the lights on before a showing and leave the blinds open during the day while you are away at work. Don’t rely on the buyers’ Realtor to do this. We know, Orlando gets hot during the summer and you would like to keep your blinds closed during the day to save energy, but trust us, in the end you are hurting only yourself by trying to keep your energy bill low during this crucial time.
4. The lawn is the first impression of your home that a buyer will see. Be sure to keep it neat and clean, a messy yard with unkempt gardens will make the buyer feel that the home may need more maintenance than it really does. Again, we know, Orlando gets too hot to possibly maintain your yard also during the summer months, but again, it is worth it right now! And if you don’t like doing it, you can always hire a landscaping company for the time being.
5. Keep your home smelling fresh by adding air fresheners throughout. Most people do not recognize odors in their own home but trust us, we have been in many homes throughout the Central Florida area, and those who don’t use air fresheners really do have their own (mostly undesirable) scent to them. Buyers will definitely notice that. Prevent buyers from running to the nearest exit by spritzing the couch and curtains with frebreeze and keeping a light scented air freshener near by. Especially pet owners must do this! Focus on key area such as the entrance areas, kitchen and family room. We use Glade Plugins.

The Orlando real estate market has seen an above average depreciation over the past few years. But experts across the country remain optimistic for the future of real estate; they insist, however, that there are some new rules to play by to stay competitive in the buyers market that has taken hold of the Orlando market – and we agree!

The number one mistake they say sellers are making is over-pricing their home. Short sales and foreclosures, a result of lenient lending practices, have caused home prices to tumble. Many sellers still believe they should be able to sell their home at the traditional appreciated prices, even when those prices no longer exist.

One strategy that can put you, the seller, back in the driver’s seat, is under-pricing your home. Yes, you read that correctly, under-pricing! It is the same strategy banks are using quite successfully when dumping a foreclosed property. The lower sticker price draws much more attention from buyers looking to make a good deal. With more potential buyers come more offers on the home. With more offers the bank has more power over the deal and can comfortably set the terms of the agreement. The most obvious sign of the success of this strategy is that often these homes sell well above their original asking price.

The worst thing a seller can do is to let their property languish on the market. The longer the home sits on the market the less value and less profit potential it has. Especially considering that until the market hits bottom, prices will continue falling. The best bet in this market is to stay ahead of the curve and set the price of your home, before the market does it for you through price reductions.

Don’t be afraid to try this strategy! We can help you set a price that is right on target to attract buyers and produce multiple offers. Fill in the form below and we will be in touch to discuss what you as a home seller in today’s real estate market, can do to ensure a successful sale of your property.

Over the years we have helped dozens of home owners successfully sell their homes in the Orlando area. They did what needed to be done to actually sell. Sure, the market is not great right now, but that shouldn’t mean that you now cannot sell your home any longer. Be it as a short sale or a regular sale, homes are being sold on a daily basis. Below is a short summary of things you need to know when selling your home. Try to avoid the following mistakes and chances are, you will be successful!

1. Over Pricing Your Home: Of course, your home is your castle and you want your investment to pay off. Everyone wants top dollar when selling their home, but market conditions fluctuate (even seasonally) and when a home is over-priced, serious buyers won’t even stop to look. Keep your listing price in line with competitive homes for sale in the area, or sometimes an even better idea is to list it just a bit lower than area homes to generate the most interest and quite possibly multiple offers. Currently, that is what banks are doing when selling their REO properties and if you want to compete it is worth being bold and setting your asking price below market value.
2. Not Deep Cleaning Your Home: Buyers today have a plethora of homes to choose from, and a clean home makes an impression. Buyers might assume that a dirty bathroom means the property has not been taken care of properly. This leads to low-ball offers, if any offers. Hire a cleaning crew to come in and do a really deep initial cleaning to make your home shine. On top of that, keep in mind that your home should not only be clean but also smell clean. Investing in lots of air fresheners (we use Glade’s Plugins), especially in key areas like the entrance of your home and the kitchen, is well worth the money. Who doesn’t just feel home right away when a warm scent of vanilla or cinnamon greets them at the door? Buyers are definitely influenced by their senses.
3. Not Marketing Your Home Properly: If your agent is simply putting a weekly ad in the newspaper, your home is being grossly under advertised. This is a competitive market; your agent should take an aggressive marketing approach. Recent data show that 90% of today’s buyers start their search on the internet. Make sure that your agent has an internet marketing plan to back up the traditional front yard sign and newspaper ad. We will be happy to provide you with our extensive online marketing plan and proven success rate.
4. Rejecting Low-Ball Offers: This does not mean you should just accept at all costs a low ball offer, but it does mean you should at least entertain it. From our experience, many sellers miss their window of opportunity by rejecting a low offer. Instead of feeling insulted, try to counter offer and see if you can come to an agreement. Often, buyers are just testing the waters to see how motivated a seller really is. After all, they might get lucky and find a desperate enough seller. Once they see you are serious and reasonable (we back up our counter offers with convincing market stats and other materials) they will be willing to negotiate.
5. Not Using a Real Estate Agent: Many sellers think they can save themselves thousands of dollars by selling the home on their own. Unfortunately, most sellers do not have access to the same marketing tools a Realtor would have. They also might not be aware of current market conditions and how to properly price their home. Using a Realtor will generate more leads, more interest and finally more money in your pocket in the end.

Questions? Need a Realtor who is specializing in your neighborhood? Want advice on how to price and market your home not only to local but also International home buyers? Simply fill in the contact form below and we will be in touch.