Central Florida Real Estate Blog

I have a friend that always says that, supposedly somewhat jokingly, but we all know the truth. I have never been like that. Generally, have pretty much always tried to consider the other person & their feelings. Won't deny, but sometimes to a fault.

Haven't written much about myself, but I think that my persona has come through in my writing. I tend to be straight-forward & just thought that some of you would like more of an insight into me.

I am a very lucky man in that I love what I do. Being a Realtor® is a blast!! Yes, there are some difficult times in which I've wondered ‘what the hell am I doing here?' But this usually only comes about in dealing with unprofessional people. All in all it is such a blast, such a rush, when you are able to help people achieve a goal - whether selling or buying. My Vision & Mission statements say it all. You can view those on my website at www.orlandohomes-4u.com/2006/vision.php.

Many of you who know me, know that I consider myself a very lucky man. I am not a very religious person. I am observant, usually in my own way & not through any structured organization per se. The reason I say this is because I find myself continually thanking G-d. Yes, there are people to be thanked also, especially my parents, because no matter what, they must have instilled some things in me. We are what we are taught.

My ramblings here may seem somewhat convoluted, but hopefully you will see where they all come together. My outlook on life & work is not that I wish to become rich, monetarily. I already consider myself very rich - emotionally & spiritually. My goal is to live comfortably & thank goodness I have achieved that. I have a nice home - modest by many people's standards; I drive a couple of nice cars; have a great dog, Nicci; I'm healthy & I live well.

Yes, I do make a good living in real estate - I am good at what I do. In fact, very good, even to the point of being proficient. But, I will not profit on some else's poor fortune. I can not intentionally hurt someone. I believe in being fair. Actually, I believe that in any transaction in which I am involved, that all of the parties need to come out that feeling like winners. A buyer feels that they have gotten a good deal; a seller feels that they have received a great price for their property.

In all my year's in real estate, I have never had a deal fall apart. Unfortunately, I am experiencing that for the first time. The reason that this has never happened before is because I am a stickler for details. In the years that I've been in this business, I consistently hear realtors® talk about a deal that has fallen apart at the last minute. It's always behooved me to understand how this can happen. But the reason being is that they were not on top of things. They either weren't in contact with the mortgage broker, title company, etc. I always call them. I hate surprises. Or let me qualify that, I hate surprises like that when it comes to business. There is no reason for it. In the instance that I am presently dealing with, the buyer did not have a contingency clause that the sale was predicated on the sale of their home. Of course, being the sleuth that I am, I found this information out several weeks ago. At that time, I quizzed their mortgage broker at that time if this was the case & he assured me that it was not. Well ‘lo & behold, their deal is falling apart. But, thank goodness to the many professionals in this business, we may be able to salvage this deal for everyone, because otherwise so many people will be adversely affected. I have a major problem with that. I especially have a major problem with my seller being injured. I will go to great lengths to not allow that to occur.

As you can see, I get personally involved with my clients. I can't just say to my client ‘Sorry, you'll have to change your plans, life threw you a curve - too bad, deal with it.' It is not just a deal to me. This is not just like buying a piece of clothing. This is a major investment, probably one of the biggest that most of us deal with & needs to be handled as such. I take it personally & it upsets me when something of this nature comes up. I have to try to look at every different avenue to get us to the final outcome that we were looking for in the first place.

OK, enough about real estate. As I've written I consider myself a very luck man. I am 52 years old & it seems each decade of my life has been better than the previous one. It amazes me how much I've learned and grown. It really amazes me on the things that I've realized about life & myself since turning 50. Believe me, I've done some very stupid things in my life. I've created strife for myself. I've also learned from my mistakes. I believe that life is a learning experience & you have to treat it as such. If you don't learn from it, you will lose the lesson. There are too many people out there that just keep on going, but are not willing to learn or change. We know enough people in our lives that keep on making the same mistake, for lack of a better word, over & over again & are constantly complaining about it. We all have patterns - some good & some not so good. It is a matter or realizing this & changing those destructive patterns. Yes, it may be more easily said than done, but surely not impossible.

I am somewhat simplistic, in that everything can be broken down to it's bare basic roots. We are the most intelligent being on this planet - that works both ways, for & against us. We tend to over think things. But to get to the root of the matter, I think try to simplify things. By taking away all of the extraneous matter, you can then delve into what the root of the problem at hand may be.

I am extremely blessed man in that I have a great support group of friends & family. Their care, concern & love for me, as well as me for them, is extraordinary. But I, as well in my business, tend to treat people the way I wish to be treated. I guess that this comes through. I am not one to be able to hide my feelings - I wear them on my sleeve.

We see so much negativity around us. I've learned that this can easily bring you down. There is no way to keep negativity totally out of your life, but it is how you tend to handle it & deal with it that makes a difference. I can easily allow negativity to bring me down & then allow such to progress into a depression. Been there - done that. That is not what I want out of life. It is very self-defeating. I must say at this point that I do not take any anti-depressants. Again, been there, done that in the past. The only medication that I take daily is a vitamin. I try to keep a positive attitude. Sometimes that is somewhat difficult, but it is a matter of how you look at things. What I learned is that your mental attitude and outlook on life is a matter of a healthy body, mind & soul. If you let one go, let's say not taking care of your body, then the others will follow suit. They interact with each other. It all comes down to a matter of how you feel about yourself & what you want out of life. Life is so freakin' Grand. Go for it! Take care of yourself, because you can not take care of someone else without taking care of yourself first. So, I guess it is all about ME!! Not really, but I think you get the point.

Thank you for indulging me here. Until next time - Marc It Sold!

This is quite different from my previous blog entries. I don't know who the author is, but was relayed to me in an office meeting by my broker. Hope you enjoy!

The Bottom Line

Face it. Nobody owes you a living.
What you achieve or fail to achieve in your lifetime is directly related to what you do or fail to do.
No one chooses his parents or childhood, but you can choose your own direction.
Everyone has problems and obstacles to overcome, but that too is relative to each individual.
Nothing is carved in stone, you can change anything in your life, if you want to badly enough.
Excuses are for losers:
Those who take responsibility for their actions are the real winners in life.
Winners meet life's challenges head on, knowing there are no guarantees, and never think it's too late or too early to begin.
Time plays no favorites and will pass whether you act or not.
Take control of your life.
Dare to dream and take risks ... compete.
If you aren't willing to work for your goals don't expect others to.
Believe in yourself.

As I alluded to in the previous post, I wanted to discuss the topic of Insurance and specifically Condo Association Insurance. Again, as I've stated while writing the Market Trends post, this also has been a topic in the news that is of great concern to many of us.

Insurance in itself has gotten out of control in the State of Florida. I won't deny that I am not sure as to the rest of the nation, but in Florida we are probably pushing toward an epidemic of sorts.

If you are not aware of what is occurring, than let me recap for a moment. Firstly, the cost of most housing insurance has skyrocketed in the State of Florida. I started becoming more aware of this situation while helping a client who was relocating to the western side of the State much earlier this year. Now, granted, we expected the insurance to be higher because there was a pool involved, but when quoted that the least expensive would cost $2300/year, we were totally astonished. Couldn't believe that we were getting rates upwards of $2800.

Anyway, we've most likely heard about people being dropped by their insurer, therefore, not being renewed and having to search out other options. In Florida, we have a state insurance fund of last resort, Citizens Insurance. Unfortunately, we've heard the debacle that they are in. Oh by the way, we are all paying for that with surcharges on our policies, whether you are with Citizens or another carrier.

Citizens actually has to have higher rates so that they are not in direct competition with the other insurers that wish to do business in Florida and write policies. Citizen has also become the largest insurer in the State of Florida due to others pulling out. This has put all of us in a precarious position.

OK, enough of that doom & gloom. Now to another aspect of the insurance industry that is also quite scary and will affect so many lives & unfortunately be devasting to quite a few. When you purchase a condo, you should get homeowners insurance. Now the condo association also has a master policy covering the association, buildings, common grounds, etc.

Here's the first part of the sad part. There are fewer & fewer insurers that are wishing to provide this for these associations. Many are just dropping these assocations, while many others are in some instances quadrupling the association rates. I know of one community where I've been told that because of the rate increase they are going to have to raise the monthly maintenance fees that the condo owners pay at least $100. In the Orlando Sentinel, it was mentioned last week, that Lake Villas in Altamonte Springs off of Maitland Ave. has their rates increasing from approximately $33K/year to $197K. This in turn is requiring them to increase the monthly maintenance fee by $200/month.

Can you believe that? Do you understand how this will effect the owners there, many probably on fixed incomes? This will force people from their homes into uncertainty. This for many is like an additional mortgage payment.

Unbelievable, but what really gets me are the insurance companies. All of a sudden we are hearing of their supposed wows. Bunk!! How dare they! Do they give us breaks when they are making lots of money? I don't think so! But, we surely do hear them complain when they have to pay out large sums for the natural catastrophes that we've experienced in the last couple of years.

But & this is what really gets me, they have actuaries. An actuary's job is that of a statistician to compute risks & therefore premiums. So, they had a few years where they had to pay out. How about all of those years in which they didn't have to pay out so much? Again, did they give us a refund? Anyway, we all know that the weather is cyclical. We've gone through periods of this before. This is not something new. But the insurers are asking for increases & getting them, royally.

Where does this put us all? Unfortunately, like I stated at the outset, insurance in the State of the Florida is heading toward epidemic proportions. The state needs to do something and quickly. That means NOW!! Do you think they are listening?

Until next time...Marc It Sold!

My original intention with this blog, was to include more tips on caring for your home & to tell you more about me. But it seems that the slant has been more towards market trends. To some this may be boring & I apologize for that. But it is very important to us. Real Estate has become a much published topic. We read about it in the newspapers & on the net. We hear about it on the evening news. We've seen it & it's effect in our daily lives.

Granted, a lot of what I've written is my educated opinion, obviously derived from my experience; sources that I've read; and, speaking with other real estate professionals. I've mentioned before that I really like numbers. They don't tell the whole picture, but do give us a great insight into what is happening. This is why I've tried to back up my opinions with facts & numbers, so it doesn't seem as if I'm just spouting off at the mouth. Goodness, knows I can do that also.

But the reason that I've written more about the market trends, is that this effects us all and is very important. With all that we've seen & heard in the real estate market, I think that it is something that needs to be addressed. We've all seen the doom & gloom articles & editorials and a lot of what I've read is pure bunk. My intentions are to try to give you a balanced account of the state of real estate. Yes, I do have my prejudices & biases, but I do try to keep those to a minimum when writing an opinion.

Sometimes, it is difficult for me to decide what to write about. There has been so much in the news that is of great concern. So, today, I am going to discuss the annual housing report released by the Harvard Joint Center for Housing Studies - "The State of the Nation's Housing 2006." http://www.jchs.harvard.edu/publications/markets/son2006/index.htm

The report overall is positive on the housing market - that "the housing sector continues to benefit from solid job & household growth, recovering rental markets, & strong home price appreciation," and as long as these remain in place, "the current slowdown should be moderate."

Households are expected to accelerate from about 12.6 million over the past years, to 14.6 million over the next ten which combined with projected income gains and a "rising tide of wealth" should "lift housing production and investment to new highs."

However, affordability will also intensify, as the economy is generating many low-wage jobs and land use restrictions are driving up housing costs. Incomes are rising much faster in the top ranges than in the bottom ranges for homebuyers. The number of households paying more than half of their income for housing has shot up & will continue to increase.

We've seen & heard about affordable rental housing disappearing. Just look at all of the condo conversions that we've seen around.

The report also goes into financing in that we've seen a shift from fixed-rate mortgages to adjustable-rate mortgages & other products. In just 2 years, the interest-only loan shot from relative obscurity to 20% of the dollar value of all loans & 37% of all adjustable rate loans in 2005. Payment option loans accounted for nearly 10% in 2005.

As bad as that sounds, the report says that only 3% of owners had equity less than 5% in their homes & 87% had a 20% or higher equity in 2004.

Housing gains are continuing even while home sales are softening. Driving housing will be the baby boomers who will boost markets for senior housing & second home.

Until next time when I plan to discuss the rising insurance rates & condo associations - Marc It Sold!

Let me begin by saying that I am a pet lover having had many over my lifetime & enjoying those of friends & family. Unfortunately, there are many people out there that are not pet lovers or at least not of many breeds.

Most of us would not think that this is a problem. But, there are many people that will not go into a home with pets that are 'on the loose.' Additionally, there are many people that will spend less time in a home that has pets that are not of their liking. Too many of us this is surprising and may even sound bizarre, but when you put it into perspective it is quite understandable.

So, therefore, we need to take many things into consideration when selling a home with a pet(s). Now, again as I've said, I love most pets. I will usually play with the pet & keep him/her occupied while my clients are viewing the home. This usually works for the pet as well as the prospective buyers. A lot of times, you will find buyers that have no issue with the pets. And, yes, we all know about those loveable, cute pets that just pull at your heartstrings just by looking at you. They can almost sell the home themselves.

But here are some things to possibly remember & some tips for all of us.

1. If it smells... That in itself is probably enough to be said. Sorry, but I've had cats & very rarely did my litter box smell. Guess what? I don't want to smell yours. Neither does anyone else. Clean that litter box & keep it clean or put it out of the way. But those are not the only smells. Most odors come from dander. You need to deodorize your home often & keep your pet bathed and groomed.

2. Stains. Clean them, there are many good products on the market for 'pet stains.' Clean that carpet before listing your home, or if it is that bad, then consider replacing them. Sorry, but smells, stains, etc. are not going to get you top dollar for your home, nevermind, the length of time on the market needed to sell a home in that condition especially when there are so many other available homes to purchase.

3. Keep Pets from Showings. If it is at all possible, take the pet for a walk while your home is being shown. It will make it a much more pleasant experience for the prospective buyer. Loud barking dogs are not always a pleasing sound & may actually scare potential buyers. This only limits your potential pool of buyers. As your realtor, we are constantly trying to increase this pool for you.

4. First Impressions. The old adage is so very true - First Impressions are Lasting Impressions. This not only includes smells & carpet stains, but also possible gnawed moldings, scratches doors & door jambs, holes in the backyard, poop in the backyard, etc. You obviously get the picture & so will the potential buyer that viewed a home like this. I don't care how pretty the home may be otherwise, it is the total picture that has to be taken into consideration. And, yes, first impressions do last & will most likely have the prospective buyer out of your house quickly if care is not taken to these details.

5. It's all about perception! If someone enters a home & it smells & there are stains on the flooring & scratched door jambs, etc. They should also wonder what else this home holds for them. I'm sorry if this seems harsh, but if I enter a home and see this, I do have to wonder what else hasn't been taken care of & kept up. This is only being realistic & I'm not being mean.

We love our pets & there is no reason that they should hinder a sale. Nor do they have to be responsible for lowering a realistic price on a home. It is our responsibility & this can be taken care of without a great deal of inconvenience to all.

Best Wishes & until next time... Marc It Sold!

Wanted to Blog, but wasn't sure what to write & then I spoke with a friend & she was under the impression that the "Market is Insane!" I won't deny that I was taken aback by this. But from what we talked about, it seems that quite a few people think this.

Now, I know from talking with quite a few realtors that the impression is that buyers are waiting for prices to come down. I won't deny that I still see homes that are priced for the type of market that we saw last year. But, in general, it seems that people realize that they have to price their homes well to sell. With an inventory of over 15K available homes for sale in just Orange & Seminole county, sellers better price their homes well & possibly offer incentives if they wish their homes to sell.

But, now let's look at the other side of the coin. We are still selling near the same level of homes as was being sold last year. Many do not realize this, but that was a phenomenal year. We sold more homes than in previous recorded history. In fact, in March of this year, ORRA (Orlando Regional Realtor Association) noted that 2878 homes were sold & this compares to 2529 homes in March 2005.

This reverts back to what I've been saying in that we have a very healthy market in the Greater Orlando area. In fact, we've sold more homes in the first five months of 2006 than we did in 2005.

So, homes are selling. Even with the increase in interest rates. Homes that show well & are priced well - will sell, as long as they are marketed properly. I've said this before & even have read it recently, but we are in what most of us consider a 'normal' housing market. Granted, the median price has risen to its highest level at $252,990 (May 2006) with an average sales price of $311,119.

Homes are presently taking 74 days on the market & this will lengthen with time. Historically, we've seen worse & not all that long ago.

It just proves to me that people need to be educated to the facts. As with anything else, this does put things into their proper perspective.

I, myself, have always believed in education. That is why I've gone on and received my GRI (Graduate Realtor Institute) & still continue to read & try to improve myself. I also believe at the same time, that it is my job to educate you, the consumer. I believe that if I did not do so, I would be doing you a disservice. I am the Real Estate Professional. This is why you ask me for advice & hire me for my services. And, I wish to thank everyone for that!

Until next time - Marc It Sold!

What a coincidence!  After writing the previous post, I came across an article in the Orlando Sentinel by Lynn Thomasson, entitled, "Where Orlando Ranks."

Orlando is ranked #2 behind Las Vegas as a summer destination according to Expedia.  But, it seems that we are 1st, according to the American Society of Travel Agents, as a domestic travel destination.

According the Milken Institute, Orlando is 6th in job creation & sustainability.

This all bodes well for the Greater Orlando area and proves out some of the things that I have written in regard to Orlando & real estate.  

So, until next time, let's just Marc It Sold!

Housing costs have risen substantially within the last couple of years.  Have wages increased as much?  We know the answer there.  Now, I'm not going to get on my soapbox.  But, we continually each day lock more and more people out of the housing market.  Condos are costing in the 100K's; a nice relatively reasonable 3/2 single-family home will run approximately the mid 200's.  Enough of that, but it is something that we do have to keep in mind.  We should never forget, because that only leads to possibly losing the lesson.  

Real Estate has returned to what it was normally.  The market is very healthy.  We are very lucky in the Greater Orlando area, because we are a destination city.  We are also the #2 city in the nation for Conventions, even knocking Chicago out of that position.  But, there is a lot of competition out there.  There are over 21,000 MLS listings available.  

This is going to be a difficult time for For Sale By Owners, unless they are willing to wait, what I would think would be, quite a while.  I've even noticed what seems to be more homes going into pre-foreclosure.  The summer of '05 is no longer.  I'm not saying this for doom & gloom.  But this is reality.  

In regard to pre-foreclosures, people should speak to their lenders before it is way too late.  And by too late, I mean, when they are already starting the papers.  It takes several months before a homeowner is served with a pre-foreclosure notice.  If you are late, there are some lenders that will allow you to tack on those payments to the end of your loan period.  Granted, this will definitely cost you, but what will losing your home cost you?  There are also other ways, but you must speak with your lender.  You have to understand that the lender does not really wish to own your property.  They are not making money on it.  They make money from the payments that you send in each month.

Anyway, enough for now.  Call me & I'll be more than happy to discuss this and any other topics with you.  

Until next time....Marc It Sold!

Really wanted to discuss the previous post a little more, but felt that the tone of this blog might be taken the wrong way.  There is so much information that I wish to impart upon you.  Yet, at the same time, wish to make this a not only useful, but some lighthearted blog in nature.  So, with that known, I am changing the direction a little today to tell you about several cheap ways in which you can update your home & also increase it's curb appeal.  

Whether you're getting ready to sell your home or want to spiff it up, inexpensively, for your own enjoyment, here are 10 things for you to consider.

1.  Make your kitchen really cook! - The kitchen is still considered the heart of the home.  Many buyers make a beeline to the kitchen when they view a home.  For a few hundred dollars, you can replace the kitchen faucet, add new cabinet door handles & update old lighting fixtures.

2.  Give appliances a facelift.  If your appliances don't match, order new doors or panels for them.  Hint:  many dishwasher panels are white on one side and black on the other.

3.  Buff up the bath.  Even simple things like a new toilet seat and a pedestal sink are pretty easy for someone to install & they make a big difference in the look of the bathroom.  Consider replacing old, discolored bathroom flooring.  If the tub or shower are looking dingy, consider re-grouting the tile.

4.  Step up your storage.  If you have cramped storage areas, adding do-it-yourself wire and laminate closet systems to bedrooms, pantries and entry closets.  Your closets will be more functional while you're living there & it will make your home look more customized to potential buyers.

5.  Add a room.  Yes, this can be expensive, but consider this, you have a 3 bedroom house with a den.  If you add a closet to that room, you've now got a 4 bedroom home and that adds a lot of value.  You can possibly add a custom closet system and drywall it in for less than 1500.  

6.  Check the 'innards.'  It is well worth it to spend a few dollars & have a plumber & electrician look over your services to make sure that they are in good repair and running properly.  When a home inspection is performed, these details will show the potential buyer that the home has been well cared for & can also influence the sales/purchase price.

7.  Look Underfoot.  Flooring is another detail that can quickly update a home and make it look cleaner.  A professional carpet cleaning is an inexpensive investment, especially if your carpets are in good shape.  Don't replace them unless they are really hideous.

8.  Look Up.  Consider replacing the lighting and/or ceiling fans.  These can be done fairly reasonably with a wide array of inexpensive lighting fixtures and ceiling fans that are found at the local do-it-yourself stores.

9.  Curb Appeal.  What buyers see when they first drive by your home is very important.  A nicely mowed lawn, fresh much, some nice (& possibly flowering plants) & a clean walkway make a great first impression.  

10.  The Front Door.  A clean front door & possibly freshly painted makes a great impression as does new hardware.  This is the first thing that potential buyers will see before entering your home.

It's amazing!  You go on vacation and even though you may prepare for such work wise - you inevitably come back to more work than you thought.  Do not get me wrong, I am not complaining.  It's just almost laughable to me and unfortunately because of such I have not been able to post here.  

So, let's talk about the Real Estate Market as it is today.  And that right there is the point - today!  The market has changed and is always evolving, sometimes more quickly than others.  Yet, we have to be prepared for this, especially myself as a realtor.  But so do you, so that you can understand the market and how it affects you - the consumer.  

To say the least, we are in a buyers market and anyone who thinks differently is just deluding themselves.  There are more listings available in Orange & Seminole counties (which makes up probably the majority of the Greater Orlando area) than has been in a very long time.  As of right now, there are 9527 single family homes listed on the local MLS for sale as well as 3223 condominiums, townhomes & villas for sale.  That is a lot of homes and approximately 6 months worth of inventory.  I've been tracking the available homes for sale for many months and have found that except for one week, there has been an additional 250+ more homes available for sale than the previous week.  This takes into consideration homes that have gone under contract and so forth.  A little over a month ago, there was just 10K homes for sale, now we are at over 12K.  So what is happening and how does this affect you?

Because there is so much involved, I will not be able to answer this question in just one post, but let's get started.  Firstly, I must mention that I am not a doomsayer, and many of you who know me, know that I consider myself a Realistic Optimist.  So with that said...

The market is in what some call a correction right now.  We've been very lucky for the past couple of years with the increases that we have seen in what for some of us is our most valuable asset.  That's been great for most of us.  The reality of it is that through most years we will only see about a 6% or so increase in the value of our homes.  This year I expect us to be basically flat.  That is not a problem, but there are many factors that lead to this.  Right now we are seeing interest rates creep up.  The fed is, or at least should be, concerned about inflation.  And it will be interesting in how they handle their next meeting.  Will the rates go up?  They have increased them for the past 16 consecutive meetings.  They have to be concerned about increasing it again and possibly fueling inflation.  Even with this occurring, it has only been recently that the mortgage rates have been consistently creeping up themselves.  

Lenders, of course, have become more conservative & rightly so.  The creative financing that has been going on has been incredible and personally somewhat ridiculous.  Interest only loans with a balloon payment - oh lordy?  Here you are hedging a bet in that the value of your home will go up to create equity, because you are surely not creating any by only paying the interest and still have the full principal left to pay.  Unfortunately for many, as the interest rates increase so do their payments & they may not be able to afford this additional expense.  And more unfortunately, what we are going to see in the future (& not too distant at that) are foreclosures on a lot of these loans.  

Then we also have investors, or I should really say and forgive me for saying this, but wannabe investors.  These people saw the increases that were happening in the market and decided that if others can do it so can they.  Unfortunately, many got into the market too late and now are finding themselves with a house payment for a home that is most likely vacant & they can't move it because they are not only competing against the builder/developer but also other investors & homeowners.  I read an article recently that mentioned already starting to see these loans going into foreclosure.

I could keep on writing forever about this & will expound on this topic more so in the near future.  

As always, please don't forget that your comments and questions are quite welcome.  Till next time - Marc It Sold!