Often I get the inspiration to write from conversations with my clients.  Currently I have listed this beautiful 2/1 on 2111 Forest Circle , and the owner Bob is apparently impressed enough with what I have done so far to share my name with a friend of his who is considering putting his home up for sale.  Thank you Bob!
Anyway, I haven't had an opportunity to speak with this friend of Bob's (which I would welcome), but it looks like he is going the "For Sale By Owner" (FSBO) route. I think this is a big mistake particularly in a buyer's market like we have now.

2111 Forest Circle Orlando 32803

I can think of only a couple of legitimate reasons why someone might choose to "go it alone"their to sell their house.  One would be  and would be if the property was being donated as charity and the other would be a transfer of a home from one member of a family to another who are on friendly terms with each other!  Other than that, I cannot for the life of me think of any other reason why someone would  choose not to use a full time real estate professional- particularly one who doesn't get paid a cent until the property is sold.  

Here are the top rationals  I have heard from FSBO sellers through the years, and my thoughts on each one.

The Living Room- Forest Circle.

•   "I can get more money for my home by selling without a Realtor involved". 

This is simply not so. The typical FSBO home sold for $153,000, the typical salesperson-assisted sold for $211,000 (NAR report, 2010). The difference on average will more than pay for commissions paid to agents used for the sale.  Enough said.

• "Really all I want to do is put a sign in my yard and throw a high number out there to see if I can get it"

 Well it is a whole new world out there.  In the old days, if a seller and buyer both agreed to a price on a property then the banks had a better track record of loan approval regardless of the cost of the home. (part of the reason we are in the mess we are in today).  Even if a FSBO convinces a buyer to put an offer in at a higher price than the house is worth, if the sale is contingent upon loan approval- the house will not appraise and chances are there will be no sale.  A knowledgeable  Realtor has a better chance than a seller of convincing an appraiser of the value of a home based on the "facts".  Also, if an appraisal comes in short, a Realtor will have a better chance of negotiating the shortfall between buyer and seller to try to make the sale move forward.
Besides, buyers are getting wiser.  They are not going to spend money out of their pockets on home inspections, loan applications etc. without knowing that the price of the home was well thought out.  A Realtor can demonstrate to a potential buyer or buyer's agent that the listing price was not pulled out of thin air.

•  "With "discount" fee based brokers I can get my home on the MLS....I don't need a full service real estate company."

 Well this may be true, but getting it on the MLS is no longer the "end all".  For one thing, there are a multitude of websites in which buyers are searching the internet on their own.... places that have nothing to do with the MLS such as Trulia.com, Realtor.com, Zillow.com etc.  Here in our Coldwell Banker office we have a list of hundreds of "web partners" in which a home that I list gets automatically uploaded to many of these sites.....many with "enhanced" listings which would cost an extra fee for a FSBO.   Will a For Sale By Owner spend their time and money to advertise prominently on these websites? Doubtful.  Thus, the pool of potential buyers for their property is greatly diminished. Many fee based brokers get paid up front.  If I list your home, nothing gets paid to my broker until the home sells.

•  "Are you kidding me!  My home is worth WAY MORE than you are telling me! You just want a quick sale."

•  "I don't need a buffer between the buyer and myself....the buyer would prefer to deal directly with me without having real estate agents involved on both sides."

Is it all about location?
Still worth saying "Location, Location, Location?"

As I see it, it is the number one rule in real estate.  If two homes are "created equal", and one is in an area closer to lakes, shopping, schools it would naturally be more desirable than the other yes?
Now if you feel there is still some concern about where the real estate market is headed, then the answer is definitely yes. It is Location, Location, Location.  Big time.

                                                    My listing at 1002 Delaney Park Drive 32806

Such a simple rule but so often overlooked.
You can buy the right home in the wrong location.  You can remodel it, you can change it, you can add to it....but you cannot pick it up and move it somewhere else.  I am basically restating the thoughts and sentiments expressed here but I see examples of this in Orlando everyday.

I guess what "Location, Location, Location" means might differ somewhat from person to person.  But for many of the clients I have worked with some of the most desirable location features include:

1.   Close Proximity to Oceans, Lakes and Parks

1002 Delaney Park Drive  just one block away from Lake Davis

When you think about it, there are only so many waterfront, water view,  or homes just a short walk to water.  Same goes for parks and recreation facilities.  Limited supply leads to increased demand.

2.   Highly Rated Schools

You might say that this is only important if you are looking for a home and you have school aged children.  But what about when you go to sell?  Your home will probably attract more potential buyers (those with children) if you are near highly regarded schools.

3.   A Smaller Home In A Rich Neighborhood

Better to be a small fish in a big pond as far as resale is concerned in most cases. You really can't lose here.  A smaller home might be an opportunity for someone to gain entry into the neighborhood of their dreams.

4.  Walking Distance to Restaurants and Shopping

In this day and age more people want to feel self reliant.  The idea of being able to stroll to a neighborhood cafe after work would be appealing to many.  Cars do break down you know.

5.   A Safe, Secure, Stable Neighborhood

Well of course you would want to know that if you did decide to stroll to a neighborhood cafe you would feel safe doing so!  Not to mention the security of the home you just walked out of.    Also, is the area of the property consistent?  A home might be considered of greater value in an area of other similarly built homes, as opposed to a mixed usage community- homes near offices or industry.

Other "good" location features might be accessibility to hospitals, public transportation and job.  Take a look at the information on my listing pictured- 1002 Delaney Park Drive in the Lake Davis district, A couple of steps from the front yard and you can see the beautiful lake!

Back to the "two homes created equal" scenario.  Think of a home exactly like this one on Delaney Park Drive except located in an area of high crime, on a busy street, in a depressed area next to a paper mill!  I could go on and on but hopefully you see my point.

In my humble opinion, "Location, Location, Location!" will never change. It should and will continue to be the most important factor when choosing a home, and without a doubt a home in a great location is well worth a premium.

For more information on Location, Location, Location and this lovely home featured please do not hesitate to get in touch with me.

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The following information comes from the Neighborhood Watch Unit of the Orlando Police Department--

I would think that the idea of living on a beautiful Orlando lake close to restaurants, shopping, possibly work and everything else downtown would be appealing to many.  Imagine your home as your vacation home- and being able to live the dream all year long? Not bad!

However not all lake front homes are created equal. 
Not all Orlando lakes are created equal.
If you are in the market for a lake front home close to downtown Orlando Florida you may want to ask the following questions:

• Is the home truly "Lake Front"?  There are many homes that are advertised as lake front and many of them are not.  For example, a home that faces a lake is actually lake view if there is any sort of  road between the house and the lake. The house might have spectacular views, but it is not true lake front property and will not be valued as such.


1225 Bryn Mawr St 32804 we have currently listed on "private" ski lake-  Lake Silver


• What kind of lake is the home situated on?  Basically, you have recreational lakes which allow skiing, and the rest that do not.  From what I have seen  lake homes on recreational lakes-  which allow fishing, boating, skiing etc. can garner greater sales price cost per square foot than one equal in all ways (including location) but not situated on a recreational lakes.  Furthermore, when I asked Kelly Kellogg, State Certified Residential Appraiser she said there was no comparison because "a skiable lake is not comparable to a small lake which is not skiable".   

What kind of public access does the lake have?  If you look at the City of Orlando Lake Finder Map you can search each of the lakes downtown.  Click on one and you will see the different ways the public may or may not access the lake.  For example, if you click on Lake Silver you will see that there is no fishing, boating, and no public park access whatsoever.  This means, unless you are a resident surrounding Lake Silver, you will not be able to access its 70 acres of skiable lake.  Yet less than a mile away is Lake Fairview for which the city allows public access for fishing, boating and public parks. You might come to the conclusion that a home on a private lake would be considered more valuable than one equal in all ways to one that is "open to the public". 

My advice is to find out the answers to these questions if you are pursuing lake front property. If you have any questions, or would like to see our beautiful listing at 1225 Bryn Mawr in College Park please get in touch.

"Parade of Homes" winner- 1401 Green Cove Road Winter Park

Here is the raw data- it certainly is a mouthful!  If you have any questions or comments feel free to get in touch.

Market Pulse- Orlando Regional Realtors Association January 2011

It may sound nutty but the folks at walletpop have some pretty simple suggestions to keeping your home warm in affordable, uncoventional ways.  For example:

• baking 4 potatoes  in a conventional oven requires 75 minutes of 450 degree heat.
• Wearing gloves and hats indoors?  Hey, it is a concept.
• Simply using a $29 electric blanket can save you more than 15% of your monthly electric bill. Add an electric mattress pad?  You can save thousands a year.     

Something to think about tonight.   Burrrrrrrrrrrrrrrrr.

Don't let the rush and excitement of the holiday season make you careless in protecting your home from potential criminals. The holiday season is a time when busy people can become careless and vulnerable to theft and other holiday crime. The following tips from the Los Angeles Police Department Crime Prevention Section can help you be more careful, prepared and aware during the holiday season.

• Be extra cautious about locking doors and windows when you leave the house, even for a few minutes.
• When leaving home for an extended time, have a neighbor or family member watch your house and pick up your newspapers and mail.
• Indoor and outdoor lights should be on an automatic timer.
• Leave a radio or television on so the house looks and sounds occupied.
• Large displays of holiday gifts should not be visible through the windows and doors of your home.
• When setting up a Christmas tree or other holiday display, make sure doors and passageways are clear inside your home.
• Be sure your Christmas tree (Or Hanukkah bush) is mounted on a sturdy base so children, elderly persons or family pets cannot pull it over on themselves.
• If you use lights on your tree ensure the wiring is not damaged or frayed. Frayed or damaged wiring can cause a fire.
• Place your Christmas tree in water or wet sand to keep it green.
• Never place wrapping paper in your fireplace.

Happy holidays and be safe!

Someone lives in their house many years and decides it is time to sell.  But before they do they feel the need to add granite to the kitchen, or add a pool, or some other big ticket remodel item.  Why?

Well according to this article from CNN Money,  this expense is most likely not the way to go because it will rarely return any kind of investment for a seller.  A Realtor worth anything would not advise you to take this kind of project on because in many cases you are trying to "predict" what a potential buyer may want. And in many cases, you would be wrong.

Just to be clear, I am not suggesting that you do not do minor cosmetic surgery to get your home "show ready".  Before putting a home on the market for a client, I go through a house and put together a comprehensive list of things that need to be done so that the home will be shown in the best possible light.  But I am referring to painting, de-cluttering, and smaller repairs- not the big renovation.   Pictured is the kitchen from a house I have listed at 1790 Greenwich Ave in Winter Park.  This is a one story house that is one block away from Winter Park Hospital in a very desirable neighborhood with Winter Park Schools.  It is competitively priced at $239,000 and might be perfect for an empty-nester, or a younger family looking for an entry into the area.  All the major "bones" of the house are strong- newer roof, air conditioning etc.  And the kitchen looks great! In this case, I determined with my sellers that a very attractive price point would be most important to potential buyers.


Now take the example of a high ticket granite kitchen update.   First off, a seller may be making a bunch of incorrect assumptions.  Granite isn't the "only game in town" as far as counter surfaces are concerned.  Is everyone a chef? Maybe a potential buyer has no interest in a high end kitchen and does not want to feel like he is paying a premium for one that has recently been installed.  There are all kind of buyers out there- some who want "turn key" homes, others who want to feel they are getting a good deal and enjoy "fixer-uppers".

Oh, and by the way, what are the chances that the seller is going to pick the granite color the buyer has his/her heart set on.....?

Wouldn't a credit be a smarter way to go if a granite kitchen became a negotiating issue with a buyer?  This way, the buyer can get exactly what they want.....and the seller doesn't have to go through the remodeling hassle playing "interior designer" or predict what a buyer wants.

Bottomw line- if a Realtor suggests a big remodel project before listing your home....get a second opinion from another Realtor.
If your Realtor suggests "don't spend your money on a remodel project to prepare your home for sale" -listen up and be happy!

He probably just saved you a lot of money.

But while Zillow's track record is bad, it isn't the worst.

Why are these websites so inaccurate?  The MSN article explains some of this well- but an automated valuation site usually doesn't take "location", into account.  And what about upgrades?  Do you think an automated site will know that you just put granite counter tops in your kitchen?  The answer is no...and an upgrade like this would certainly raise the value of your property.

So you may be asking yourself....do I need to spend $350 (the basic rate for an appraisal) prior to listing my home?  My answer is probably not.  First off, there are hundreds of appraisers out there in the Orlando area and predicting what is in the mind of a particular appraiser that may be assigned to evaluate your home after executed contract is next to impossible. What you need is a Realtor who has a track record of pricing his homes competitively, accurately....and aggressively.  If you are listing, you should definitely ask your Realtor how he/she is determining the value of  your home.....a good Realtor will use a number of different methods.  Most importantly, you should ask your Realtor what he/she does when and if a buyer puts a contract in on your home, and it comes up short on appraisal.  How does he/she present the "case" to the appraiser?  Many Realtors simply do not do this at all unfortunately.


The bottom line- These online sites do have a purpose.  When I list a property, I want to know what these valuation sites say about the home.....because this is what many prospective buyers look at when they are evaluating a home purchase.  Hey when I am putting an offer in for a buyer I will use these sites to try to negotiate the best possible price for my buyer. But as a sellers agent, a good Realtor should be able to make a "case" for his listed property for future discussions with possibly buyers and appraisers who might look at some of these sites.

I do not dismiss online home evaluation sites because buyers (in many cases) are using them to their advantage to negotiate a lower price for homes I have listed.  Instead, I am very aware of how these sites have my listed homes valued.....because I believe it is better to "know thy enemy".

I dissuade my sellers from having me present verbal offers to them. On our Coldwell Banker listing agreements a seller must "check" to have these offers presented.  I say "don't check" even though a seller may find it tempting to do so.
First off, a verbal offer is not binding in any way shape or form.  So why have it presented?  Second, usually a verbal offer is basically a "drive by" who barks out a price with absolutely no conditions attached.  A verbal offer can look one way, but it can turn out to something different with many details omitted.   Examples- will there be a home inspection? Is this a cash deal? Closing date?
Third, writing up an offer takes time and effort. If someone from the buyer's side doesn't want to take the time to put together an offer for an important investment like a home purchase...how serious are they? When I am representing a buyer I will always write up my offer on behalf of my client because I want the seller to know that we mean business....even if the offer price is way off the list price.
Finally, a verbal offer is way too murky. It can result in a game of "he said/she said" that will lead to frustration and end up going no where.

So listen to the "King" (Elvis that is)..... because......talk is cheap.   :)



 

Well for the most part,  as with the other areas of Orlando we have reviewed recently, Colonialtown and the rest of zip code 32803 are showing positive signs that real estate trends are moving in the right direction. Sold properties are up 47% from last year, and homes pending are up 89% over the same period.  With June being the final month to close on properties utilizing the $8,000 tax credit, as well as the continuation of lower interest rates, buyers who may have been sitting on the fence seem to making their move.

Any questions, or if I can be of any assistance in buying or selling real estate please do not hesitate to get in touch with me.

Looks like a promising trend in the College Park area as homes for sale are at the lowest level since we started keeping these trending reports back in April of 2009.  At the same time both homes sold and pended are up compared to a month ago, a year ago and 15 months ago.   Below you will see that although the "for sale" prices for single family homes in College Park are staying consistent, the "Sold at" prices are creeping up (+15% a year ago).  As I have said in previous posts, the home buyers credit has something to do with this...but consistent lower interest rates are also a big factor- thus a window of opportunity perhaps for those who are thinking about listing in zip 32804.



Make sense?  Questions?  As always, if I can be of assistance to you do not hesitate to contact me at michael@michaelgonick.com.

This article from ABC News which points out that a one point decline of interest rate can represent a $200 savings on a mortgage payment for a $400,000 home.  This is equally good news for sellers if you think about it- there will be greater demand for homes as buyers try to take advantage of these low rates.  Questions?  Give a call or drop a line.

I was going to write about this but the Orlando Sentinel took the words right out of my mouth.  Read the full article here and get in touch with questions... I can explain why I have units in downtown Orlando buildings going under contract for clients now, and why things are picking up in our condo market.

• Properties SOLD is 91% above 15 months ago, and 15% above a year ago. Comparatively to last month, sales are down 25% (which most likely due to the tax credit deadline).
• What looks promising is the PENDING sales data ...which continues an up trend (up 26%) compared to last month despite the expiration of the buyer's tax credit.

Below is a link to an article from the Orlando Business  Journal.  Home sales rose 28% in June.  Not a surprise to me.

As I have been saying for a couple of months now, certain zip codes (32801, 32806) and neighborhoods (Lake Davis/Greenwood, Delaney Park, Thornton Park, ) remain very tight as far as inventory is concerned.  Areas downtown are bouncing back quicker than other areas- for example Winter Park. Yet many downtown Realtors are not doing their homework and continue to price homes BELOW market value...and they are selling fast. Maybe too fast for some sellers.  This really isn't very good for property values. Of course this has been a tremendous opportunity for the buyers I am working with.  But buyers beware, it is supply and demand.  As the inventory tightens in hot areas, your choices may become limited particularly with the low interest rates we have at the moment.
I have set u charts on the side of my blog that pin points specific neighborhoods so you can see the relationship between inventory and list price in your own backyard.  These charts update automatically.  If you are considering selling your home...make sure you know the value in today's market.  Make sure there is strategy to market it properly. Use a Realtor who is a specialist in your neighborhood and has a proven track record of buying and selling in your area. Do not sell yourself short!  Call me if you have questions or if you want to know the true value of your home....today.

Here is the article from the Orlando Business Journal

I ran into one of my favorite "client couples" yesterday evening as I took a stroll around Lake Davis.  These two are extremely savvy and have made great real estate decisions in my humble opinion as long as I have known them and worked with them. From time to time they will find a property and ask my opinion and whether or not it is the right time to buy and/or sell their existing home. I believe that if I am doing my job correctly, and want to be their "Realtor for Life",  I have the responsibility to be 100% honest in all cases....even if my thoughts are not something they want to hear  :).  I try to be "objective" and lay out the facts as best as I can for each circumstance.  This particular couple I ran into last night takes the time to weigh pros and cons, really listens to feedback from myself as well as their lender.  I am fortunate to say that in our history of buying and  selling transactions I do not think they have had a "dud" yet. 

So it got me thinking, how can I help you decide whether or not it is the right time to buy or sell real estate in Central Florida right now?  Of course, every situation is different and needs to be handled individually.  But some general thoughts have come to my mind.

First off, let's think back to a couple of years ago...and the initial emotional reaction that many had when the real estate market took it's mighty tumble.  Here is my analogy:

Have you ever seen a baby right after a huge chewing gum bubble pops on his face? A multitude in every single place, eyes wide, mouth in an "O" - fairly reminiscent of the real estate industry when its personal bubble popped. Homeowners panicked and rushed in a frenzied attempt to sell their Orlando homes.  Why?  Well in many cases there just wasn't what I considered to be a compelling reason other than "OMG I made a bad decision and I have to sell!".  But did you make a bad decision?

All of a sudden a "dream home"  became an unwanted "step child" of homeownership, the real estate market grew to become glutted, leading to lower sales prices. Two years later, some owners are still trying to sell their Orlando homes, still panicking, and still fearful about what the future will bring.


Stop.

Take a deep breath.

Stop worrying for a second and ask yourself… Why am I selling?

Of course, there are good reasons to sell:

• If you are able to sell your home and get a decent price, you instantly have the opportunity to be a buyer in a buyer's market....and reap the benefits which can be substantial.

• Certain zip codes (For example here in Orlando 32801 and 32806 as well as others) are "hot" right now and you might be able to do very well by selling.

• A house has become hard to afford.

• Some are getting older and have to move someplace that doesn't take as much maintenance.

• You have to relocate for a job.

However there are a lot of not-so-good reasons to sell:

• You've read a lot about people who have been unable to sell their homes that you turned alarmed and put yours available on the market "just in case" you wish to sell it later.

• You're simply uninterested in your home. If that's the case, maybe all you actually need to do is replace or redecorate your home to make it sparkle again.

• You want to throw your house on the market just to see what you can get for it (as unrealistic as it might be).

It may appear strange for a real estate agent to appear to be speaking in opposition to selling Orlando homes.... I really am not.  There is a right time to list a home- and it may be the right time for you now. Many of my collegues are inundated with listings they cannot sell and I am not at this point- simply because my first motivation is always doing what's best for my clients, together with giving them the best advice I can.
So, I ask you to think about both the pros and cons of selling right now.

I will remind  you that even if your home has lost some value, there are many ways that your home continues to be very "valuable":

• Building credit - Home ownership is still a good way to construct credit. With good credit you can borrow for different major bills, such as a new car.

• Building equity - The typical home equity for the U.S. is approximately $38,000. When you contemplate how a lot your home costs, that won't appear to be much. Nevertheless, when you are ready to sell, that equity will be there to put toward your next home purchase or your retirement savings.

• Saving cash on taxes - Owning a home offers a number of tax benefits. For most Americans, the biggest benefit is deducting the annual interest paid on a mortgage- and here in Florida we have our homestead exemption of course.

• Living well - There's a reason why home ownership is still referred to as the American Dream. It simply feels good to reside in a home you love.  You have the control andcan decorate any way you want. It is a home that is your very own.

I hope this article helps you in some way, and maybe gets you thinking or brings you peace of mind.   If you have any questions or would like to discuss the possibilities of selling your home, or just want to know what the value is and what I think I could sell it for, please get in touch.  As always, I am there for you!

Hey if you think it's a "Dogs Life" for dogs in the "City Beautiful" then you are barking up the wrong tree.  According to this list courtesy of dogfriendly.com, in 2010 Orlando ranks #7 for vacationing pooches.  San Diego was #1 by the way.  So hats off Orlando....we prevailed although there was definitely "ruff" competition.  :)