Selling Poinciana One Property at a Time.

I'm dedicating this post to swimming pools. That's right...swimming pools. We have swimming pools everywhere in Florida. Here is a picture of our pool.

This is what they are supposed to look like, sparkling, refreshing and very inviting. It makes you want to jump in doesn't it? 

Now contrast our swimming pool with these.

This is what pools look like when the property is a REO (bank owned) or a short sale. Not all the time but certainly most of the time. 

Needless to say these can be a HUGE problem. There are probably 1,000s of pools, that look like these, throughout Florida. The first thing that comes to mind is "Mosquito Hell"!!! Not to mention snakes and a myriad of other creatures that we have not been able to identify. Here's an article from The Orlando Sentinel about this issue. 

Another problem we have is the theft of pool equipment and heaters. I met Andrew Cox of Cox Inspections and a fellow ActiveRain member at one of my pending REO properties this morning. Andy beat me there but called minutes after his arrival to ask me where the pool pump, filter and heater were. Beats me. I swear they were there 5 weeks ago when my buyer and I negotiated the deal. Good thing we have the right to inspect and CANCEL!!!

So folks, foreclosures are affecting the market in many ways. Can you imagine living next to one of these pools? 

Oh well....that's all I got for you today. I'm going swimming!!! Want to join me?

Hi there. In this post I'm going to explore the history of a couple of recent foreclosures (REOs) that have just been placed under contract (pending). I figure this little exercise will give you some incite on the cyclical nature of real estate and property values. 

Both of these properties were sold by me, prior to opening up Tutas Towne Realty, 10 years ago. 

The first one is a 3 bedroom 2 bath pool home with 1670 sq ft of living area built in 1991 and sits on a ½ acre lot. 

I met the original owner of this house back in 1995. He lived in England and this house was used as a vacation home. He built the house in 1991 and paid $95,000. It has since had 5 owners including Countrywide Mortgage who now owns the property. Let's check out the sales history. 

 Wow! Isn't that interesting? In 17 years this property has increased in value by 62%. That's pretty darn good. 

Now let's check out another one. This house was built in 1991 and is a 3 bedroom 3 bath with 1644 sq ft and a pool on a standard size lot. 

The original owner of this property was also from England and I met her in 1996. She paid $87,900 for this property when she had it built. 

It's had 4 owners including Bear Stearns who owns it now and is also currently under contract. Here's the sales history. 

This one didn't fare as well as the first one. It only increased by 31% over 17 years. But look at what happened between 1997 and 2006. Holy crap!!! A 180% increase!!! That's incredible. 

These charts show you that during the 90s values barely increased if at all. This was a down cycle. Then, from about 2000 to 2006, values sky rocketed. Now we are back in a down market. 

The big question is...will it last 10 years like the last one? Maybe. If that's the case then we are looking at 2016 before we hit the next big upswing in values. OR was 2001-2006 just an anomaly? 

What do you think? 

NOTE: Real Estate markets are very local. This report is based on data specific to Poinciana FL. Also, the 2008 sales data is based on a pending price not a sales price, so the percentages will vary slightly.

OK it's time for me to repost an "oldie but goldie". I was sitting down to write a post today, based on conversations I had this morning, with two potential Sellers. As I started writing, it was sounding very familiar. Then I remembered I had written about this same scenario almost 2 years ago!!!! Funny how things remain the same. This particular post also happens to be the one that has had the most "clicks" out of the 469 posts I have written. As of today, 12,319 people have clicked on this post. That's "clicks" not "views"! What does that tell you about the state of the market? Anyway....I hope you enjoy it. 

THE SHARKS HAVE HAD THEIR FILL.......
First posted 9 September 2006

I just got off the phone with Mr. Ive B. Screwed. Seems like a nice young man from South Florida, I could hear babies crying in the background. Mr. Ive B. Screwed bought a house in Poinciana, January of this year. He's never been to Poinciana but based on advice, he received from one of his neighbors, he decided Poinciana would be a great place to purchase a new home, then turn around and sell it for a small profit. Well, unfortunately for Mr. Ive B. Screwed, he was connected with a builder, WeRipOff, Inc. who just happened to be building homes in Pionciana. Not only would they build you a house but they would finance it as well, with only $5,000 down and pay all the closing costs. What a deal!! And to sweeten the pot even more, they work hand in hand with a Real Estate Company named GetRichToday, LLC.

This Company, Realtors by the way, promise that when your $225,000 house is complete they will sell it at $265,000, before the first payment is due, and you get to keep the $40,000 profit minus selling expenses! Man what a deal! How come I didn't buy me some of these gems. Let's see, for $50,000, I could have bought 10 houses and made $400,000 before expenses. Wow! I could almost retire or pay cash for my dream home.

Ok, flash forward to my conversation with Mr. Ive B. Screwed today. According to him, WeRipOff, Inc is now out of business. GetRichToday, LLC, even though apologetic, have told him they can't sell his house and have decided to withdraw the listing. Mr. Ive B. Screwed is now desperate. His mortgage payment is $1,800 per month and he has been borrowing money against the equity or his primary residence to make the payments. So he decided to call Broker Bryant to see what I can do for him. Being the good little Realtor that I am, I tell him to give me an hour and I will do a little research on his house to see what his options are and what I feel I can sell the house for in 60 days or less.

This is what I find out:

• His house is worth $219,000, maybe, if we get lucky.
• It was probably worth $199,000 when he bought it.
• There are 200 homes, just like his, for sale, in the same neighborhood.
• If I can sell it, he will have to bring at least $20,000 to closing. On top of the $20,000 he has already dished out. Remember, this money has been borrowed against the equity in his homestead.

Needless to say, Mr. Ive B. Screwed is not a happy camper. Then I asked him if he had a prepayment penalty. After checking, he does. Ok, another $8,000 to $9,000 out of his pocket. So maybe, if I get lucky, he can cut his losses for about $50,000. You do remember this is money coming from the equity of his homestead? Did I tell you about the crying babies in the background? Folks, I have to tell you, I feel like crying too. And I'm sure Mr. Ive B. Screwed feels the same way.

So the way I see it, here are his options:

• Rent the house for about $800.00 a month and hold it for a few years to see if things change.
• Sell it and take the loss.
• Let the bank foreclose on it.
• Pray.

Except for the name changes, this is an absolutely true story. And there are hundreds, just like it, in my market right now. This transaction reeks of loan fraud. This young man's life and family have been damaged and it may take years to recoup his losses. And I'm sure, WeRipOff, Inc is now called OutToSrewU, Inc and is in another area doing the same thing again. And the Realtors? Well, shame on you. I hope you spend a lot of nights thinking about the lives you have ruined.

The sharks have had their fill and moved on to better feeding grounds! 

Hi folks. Here's an update on the foreclosure situation in Florida. I read an article earlier today on our Florida Association of Realtors website stating that Florida has 77,000 homeowners in foreclosure!!! This is second only to California.  

I also spoke to a loss mitigation negotiator at Countrywide yesterday who mentioned Countrywide, or I guess Bank of America now, has 76% of the Nation's foreclosures and that they are expecting this number to increase in August when ARMs (adjustable rate mortgages) are set to adjust again. EDIT:< Is this figure accurate? I don't know but it does line up with what I am seeing in my particular market, Poinciana FL.>

Then there was a report recently on channel 9 in Lakeland that mentioned one in every seven homes (15%) in Poinciana FL. was in some stage of foreclosure.  

My last Poinciana market report, for the first half of 2008, showed that 70% of the homes that have sold this year were either REOs (banked owned) or Short Sales (pre-foreclosures). It also showed that values in Poinciana are down 48% since late 2006. 

So folks, it is evident that we are in this mess for quite a while. BUT.....there is some help available if you are struggling with keeping your home. 10,000 Attorneys, throughout the State of Florida, have now partnered with Florida Legal Services to provide free legal services as part of an effort to keep Florida homeowners in their homes. Here's what I read today: 

• "Florida Legal Services and the Florida Bar Association have partnered in establishing a toll-free hotline - (866) 607-2187 - that consumers can call. They'll be asked a few initial questions about their situation to ensure accurate placement, and then be sent to a free attorney. The attorney will then negotiate with the lender on behalf of the client to keep the home from being foreclosed." 

I have not called them yet but will early next week to see what additional information I can get. I will be posting it here on my blog so.......ya'll come back now, ya here!!!! How cool is that?

MORE INFO FROM BROKER BRYANT... THE SOURCE FOR POINCIANA REAL ESTATE

Copyright © 2008 http://www.brokerbryant.com/ | All Rights Reserved 

Hi folks. Here's a sampling of a few of the short sale listings that are being offered "for sale" by Tutas Towne Realty in Poinciana FL. If you looking for an affordable place to call home one of these could be the home for you. CLICK ADDRESSES FOR MORE INFO

521 Eagle Ct Poinciana FL 34759 $99,000

Folks this is a great opportunity to own a 4 bedroom home in Poinciana for a reasonable price. The house is in very good condition. Ceiling fans in all rooms. Tile flooring through out. Bedroom 3 and 4 having a connecting bath and would make a great suite or master/office setup. Listing price may not be sufficient to cover all encumbrances, closing costs, or other seller charges and sale of Property at full listing price may be conditioned upon approval of third parties. This is a short sale and will require minimum 60 days to close. Seller will contribute towards your closing cost if the price is right. 

845 San Jose Ct Kissimmee FL 34758 $89,000

Well maintained 2 bedroom an a large back flag lot. Very private location. Open floor plan with split bedrooms. Almost a 1/4 acre lot. Easy show. Folks if you are looking for a well maintained 2 bedroom home with over 1100 sq ft living area then this may be the one. Sits on a very private back flag lot. New tile flooring in the dining area. Inside utility room. You won't find a better home for the price. So act today! 

510 Parsley Ct Poinciana FL 34759 $79,000 

Great price on a 3/2 townhouse at Lake Marion Creek. Screened rear patio, down stairs master suite. Can be used for short term rentals. Tile flooring in living room and kitchen. This is a short sale and will require 3rd party approval. Listing price may not be sufficient to cover all encumbrances, closing costs, or other seller charges and sale of property at full price may be conditioned upon approval of third parties. Call for details

MORE INFO FROM BROKER BRYANT... THE SOURCE FOR POINCIANA REAL ESTATE

Copyright © 2008 http://www.brokerbryant.com/ | All Rights Reserved 

OK it's time to rumble!!! I didn't do a Poinciana market report for May, so instead of going backwards, this month, I decided to do a report for the first 6 months of 2008 compared to the same period last year. First let's start with a little chart then I'll add my commentary. 

This data was pulled from the Mid-Florida Regional Multiple Listing Service and is deemed to be reliable. I'm using the data for zip codes 34758 and 34759, Poinciana Neighborhoods. It does not include Solivita, Cypress Woods, Crescent Lakes or Lake Marion. Jan 1-June 30. 

So what does this all mean? Well, the first thing, that stuck out like a sore thumb, is that 70% of the sales this year were either REOs(bank owned) or short sale (SSs) properties. Compared with only 7% for last year. Now the 7% figure may be a little low since our MLS did not have a field to reflect short sales last year. So lets just double it for the sake of this post. The fact remains that the REOs and SSs are WAY up and are now making up the bulk of the real estate market in Poinciana Fl. 

Now according to this chart prices are only down 34% BUT let's adjust that one too. In January of 2007 the average sales price was $221,968. In June of this year it was $123,720. That means that in the last 18 months values have plummeted 45%!! That sounds about right. 

At the peak of the market, late 2006, properties were selling on average for $130 per sq ft. Now they are at $67 for a decline of 48%. I was a little surprised by this as I actually thought we were down about 55%. But hey, in this case, I'm glad I was wrong. 

Inventory has been about the same all year. There were 50 sales in May and 49 in June so sales are up about 20% for the last couple of months. 

Here's the lowest recent sale. A 2078 sq ft home with a pool built in 1983 sold on May 16^th for........$83,800. It was a REO.

Here's a 2818 sq ft home built in 2006 that sold May 23^rd for $136,500. This was also a REO and was purchased new in 2006 for $256,400.

How about a 3008 sq ft home built in 2005 that just sold May 23^rd for $150,000? That's $48 per sq ft if you are counting.

My opinion, for the future, is that we still have a ways to go until things start leveling out a little. Price per sq ft is going to have to hit $55, maybe even $50. Out of the last 100 sales, 17 were at less than $55 per sq ft. YIKES!! 

So there you have it, Broker Bryant's Poinciana Market Report. Any questions? 

MORE INFO FROM BROKER BRYANT... THE SOURCE FOR POINCIANA REAL ESTATE

Copyright © 2008 http://www.brokerbryant.com/ | All Rights Reserved

Folks, this could be the one! Over 1500 sq ft living area and good as new. Only.....$115,000!

Folks this is a great opportunity to own a 4 bedroom home in Poinciana for a reasonable price. The house is in very good condition. This is a short sale and will require minimum 60 days to close. Seller will contribute towards your closing cost if the price is right. Ceiling fans in all rooms. Tile flooring through out. *****Listing price may not be sufficient to cover all encumbrances, closing costs, or other seller charges and sale of Property at full listing price may be conditioned upon approval of third parties.  

MORE INFO FROM BROKER BRYANT... THE SOURCE FOR POINCIANA REAL ESTATE

Copyright © 2008 http://www.brokerbryant.com/ | All Rights Reserved