Selling Poinciana One Property at a Time.: August 2010

SoliVita. The place for active adults to enjoy all that Florida has to offer. Amenities include 2 par 72 golf courses at Stonegate Golf Club. The Riviera Spa and Fitness Center with full gym, indoor track, indoor aquatic center, 2 out door spas, heated pool, dance studio and much more.

Also enjoy the Village Center with its restaurants, 17,000 sq ft Starlight Ballroom, pool hall, ceramic and art studios and waterways for canoeing, boating and fishing. And as if that's not enough there are 11 heated pools through out the community.

And the new Palms Amenity Complex with it's state of the art fitness studio and 4,000 sg ft pool. Professional staff on site. Oops! I forgot to mention the tennis courts, pickle ball courts, horse shoe pits, dog park, softball fields and nature preserves. You really just need to come have a look. Houses from the low 100s to mid $500s.

Want to find out more? 407-873-2747
www.RealEstateSolivita.com

www.YouTube.com/SoliVitaRealEstate

***I am NOT an Attorney nor do I play one on TV. Click the button below for my Bio.

Copyright © 2010 http://www.brokerbryant.com/ | All Rights Reserved

Owner Financing Available on this Country Estate Home

$250,000

Hi folks. What happens when lending guidelines tighten even further? What do folks do that have just gone through a Short Sale or foreclosure? How are Buyers going to be able to purchase a home now that their credit is shot? How are you going to be able to sell your home?

Well how about offer financing?

Let's look at the numbers. You own a home worth $100,000. If you had no mortgage on it and sold it the numbers would look like this.

Purchase price                $ 100,000

Real Estate Com            (      6,000)

Tax Stamps                   (         700)

Title Insurance               (      1,000)

Misc.                             (         100)

                                  -------------

NET                               $   92,200

                                  ==========

Now what if you held financing for 5 years instead. First you'd be able to get a little more for the property since more Buyers would qualify. In fact it's very possible to get 10% to 20% more. but for the purpose of this illustration let's use 10%. Let's also use a 25% down payment with the balance being amortized over 30 years at 8.25% with a balloon payment in 5 years. OK here goes....

Purchase price of           $  110,000

Real Estate Com            (     6,600)

Tax Stamps                   (        770)

Title Insurance               (     1,050)

Misc.                             (        100)

Held Mortgage               (    82,500)

                                  --------------

NET                            $     18,980 at closing

60 Payments of $620         37,200

Balloon Payment                 78,700

                                 -------------

5 Year NET                $   134,880

                                  =========

The difference is $42,680 or 46.3% for waiting 5 years. That's a pretty big deal. These numbers also work if you are considering renting the property out. The Seller financing is usually a better deal.

***Of course you should discuss this with your Attorney and CPA before making a decision.

Are you facing foreclosure in Florida?

Hi folks. Let's talk about this Strategic Short Sale thing a little. I know there are many people that just can't understand why anybody would do a Short Sale if they can afford their mortgage payment and they do not have a hardship. In fact, there are those that would call this immoral. Well OK then.

My job is not to judge. My job is to inform people so they can make a decision based on facts, their needs and what's best for them. And as much as it sucks a Strategic Short Sale MAY be the best option. Just because someone can afford their mortgage payment does not mean continuing to make it is the best way to go. 

This post will give you some hard cold financial data. Do with it what you may.

First, you have to remember that in my area property values are down 75% and in some communities as much as 85%!!!! Folks that purchased from 2003-2007 with 20% down are still way up side down. Just to put our decline into perspective.....the average house in Poinciana, in the year 2000, sold for $81,000 and $56 per sq ft. Today, 2010, they are selling for $72,500 and $41 per sq ft. Unfortunately our MLS data only goes back 10 years so I can't see how far back values have gone. But we do know houses are worth less today than they were 10 years ago!!

If you purchased a house in Poinciana Florida in 2006 at $220,500 (average 2006 selling price) and put 20% down ($44,100) today, that house is worth $72,750! Your PITI (principle, interest, taxes, insurance) payment, if you have an interest rate of 6.75%, would be roughly $1,450 per month. You would still owe $168,000. This is 232% of what the house is now worth (LTV). So just to be EVEN on your mortgage, values would have to increase by 132%!! Of course this doesn't include the $44,100 you put down.

So.....should you continue paying? Only you know the answer to that question. Just remember that until values increase by 132% you will STILL be upside down on your mortgage.

If you did decide to do a Strategic Short Sale today and rent a similar house you would save approximately $700 per month. If you invested $400 of that savings at 5% you would have almost $28,000 at the end of 5 years. If you kept your mortgage instead you would still owe $150,500. What would your house be worth in 5 years? I have no clue. But I can only guess that it would not have appreciated 100%. That means if you needed to sale in 5 years you would SILL have to do a Short Sale. Do you take the hit now or take it later?

The numbers are staggering. What say you?

Are you facing foreclosure in Florida?

Folks are you looking for a Florida vacation home? This could be the one. This Kissimmee Florida holiday home is less than 3 miles from the main gate to Disney World Orlando. Located in the highly sought after Windsor Palms Community. This Disney World holiday home is being offered fully furnished and equiped for short term nightly rentals. A very rare attached townhome with it's own private in ground swimming pool.

Windsor Palms is a gated and guarded community that features a 7,500 sq ft club house with community pool, sun deck and spa. There's also a 58 seat movie theatre, video arcade, state of the art fitness center, volley ball, basketball, tennis courts and much much more. This is a must see property.

    All for only...$169,000

2312 Windsor Palm Dr
Kissimmee FL 34747

***I am NOT an Attorney nor do I play one on TV. Click the button below for my Bio.

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OK, so today, I want to analyze a post I wrote back in July of 2006. According to my reserach June of 2006 was the exact peak of the market in my area, Poinciana FL. In July 2006 property values started declining. Since then single family homes in Poinciana Florida have gone from a high value of $235,000 in June 2006 to $73,000 in August of 2010. That's a decline of 69%. That's actually good news since at one time we were down to $65,000. So values are on the upswing in Poinciana Florida.

Here's my post from July 2006. My new comments are in red.

No Money? No Problem!

I Negotiated a deal on one of my listings yesterday. The Buyer is purchasing using 100% financing with Seller paying closing costs. My market is affordable housing with the majority of homes priced from $190s to $250s (How times have changed!) and it seems like most of the Buyers lately have been purchasing with no money down. Now don't get me wrong I am in favor of home ownership for everyone but I fear a lot of the Buyers are going to have financial difficulties in the near future. (That was easy to call)

With high insurance costs, property taxes and mortgage payments I am seeing payments of close to $2,000 per month for a starter home. That's a pretty big nut to crack every month in my area where most families are regular working class people and don't have any reserve funds if they should encounter a financial setback. (Property values MUST be in line with the income of the folks in the area. We got away from this because folks were purchasing property as speculators NOT homeowners.)

Also, a good number of these purchases are being made with ARMs with the Buyers basing their ability to pay on future raises at work or a part time job that they may or may not be getting (But it was stated income! What difference did it make?).

In my opinion, Mortgage Brokers and REALTOS(R) are being overly aggressive in selling folks on the advantages of home ownership without really taking the time to counsel the Buyers on the true costs involved (Did you do this?). And since they don't have to come up with any money at closing they are sitting ducks for Mortgage Brokers who are charging them sometimes outrageous fees for doing these types of loans.

So my challenge to REALTORS(R) who are dealing with first time Home Buyers with a little or no money down is to really take the time to explain the pros and cons of purchasing a home. If the Buyers are fully informed and are wanting to move forward then help them to negotiate fees or guide them to the myriad of programs available that can help them with financial assistance.

Placing a Buyer in a home he can't afford can damage them for years (This statement is ALWAYS true!). It can cause bankruptcies, divorces and even illnesses. So let's "Protect the public" it's what REALTORS(R) are supposed to do. Isn't it?

Are you facing foreclosure in Florida?

Folks...if you want room to roam this could be the one for you. Beautifully maintained 5 bedroom home that sits on almost a 1 acre lot in an exclusive gated community. Circular driveway, covered front porch, landscaped lot, in ground solar heated pool... . Homes features formal living and dining rooms, huge eat in kitchen, a bonus room off the kitchen, family room, downstairs master suite, 4 additional bedrooms and 2 baths upstairs, detached RV garage, attached 2 car garage, solar heated in ground pool and the list goes on and on. You really just need to come see this one.

***Owner will finance with 40% down @ 8.5% amortized over 30 years with a 5 year balloon.

***I am NOT an Attorney nor do I play one on TV. Click the button below for my Bio.

Copyright © 2010 http://www.brokerbryant.com/ | All Rights Reserved