The Tricky Florida "Buyers" Market

Everyone knows how bad the Real Estate market is. Florida has been hit especially hard, with about half of all the homes in the Orlando area underwater, or owing more than the property is worth.


This should produce an unprecedented opportunity for buyers.....right? Well if you are a buyer in this market, you probably already know "the rest of the story" as Paul Harvey used to say. Statistically, about two thirds of all sales are distressed sales which means they are either bank owned foreclosures or short sales. Short sales are sales contingent upon the mortgage holder agreeing to take a substantialy smaller payoff for the mortgage than the actual balance of the note.

Bank owned foreclosure homes are usually listed on the market as the lowest priced home in the area, and somewhat undervalued. This creates an auction type bidding scenario, where it is not uncommon to see twenty or more offers submitted for the same property. Your actual chances of winning the bid on these can be low, depending on the neighborhhood and the price range.

Short sales require the approval of the sellers mortgage company to accept a reduced payoff. Because values have dropped so precipitously, these lenders are often faced with approving shortfalls in excess of 50%-60% of the original mortgage balance! Approval must be obtained from the servicer, the investor, the PMI company and in many cases a 2nd mortgage holder. Needless to say this process can take anywhere from 90-180 days with no certain outcome.

Yes! It is a great time to buy! In order to navigate this complicated "buyers" market, be sure to get an experienced Realtor to represent your interests and then be persistant and patient. You will end up with an incredible deal that will surely payoff once the market begins to rebound......as it always does!

Selling a Home?  Are you in trouble with your mortgage and don't know what to do? Wondering about doing a short sale? We can help you in researching your options. Can't sell in today's market? Rent it instead! Our team can also help with Tenant Procurement.