Looking to get out of your existing home and buy a new one but feel like you cant?
The Orlando real estate market is making a comeback! I have spoken to many homeowners recently, who would love to sell their existing home in order to buy a new one but feel like they can't. Many bought their homes during the height of the boom and feel they are still underwater. Again, with the comeback the market has seen over the past several months, coupled with historically low mortgage rates the climate could not be better to consider making the move. All you need is the the help of a knowledgeable REALTOR Â®.
First and foremost, you don't have to sell your existing home to buy a new one. You may be asking, "How is that possible, because I cannot afford to make two mortgage payments?". Over the past several months, I have worked with clients to help turn this dream into a reality. The solution is simple. As I mentioned, the real estate market in Orlando is making a comeback. Along with that we are not seeing a decline in rental rates. Inventory as a whole is at a low for both homes listed for sale as well as rental properties. If you procure a tenant for your existing home, as long as you have an executed lease for a period of 12 months (or more) and can prove that the security deposit from your tenant has cleared your account, many mortgage lenders have programs that will allow you to use this income to offset your existing mortgage payment, thus affording you the ability to qualify for a new mortgage.Â
I know, many of you who are reading this may still be skeptical, having thoughts such as "How do I find a qualified tenant?". That's where your knowledgeable REALTOR Â® comes in. They can assist you with listing your home for rent, finding a qualified tenant (therefore: performing background and credit checks, verifying employment, preparing the lease, etc...) basically taking the guesswork out of being a landlord. The fees for this service are reasonable. Most brokers will charge between 70% and 100% of the first months rent plus a nominal fee for lease preparation. If you would like to be completely removed from your landlord responsibilities full property management services are also available for for a nominal monthly fee (usually 8-10% of the monthly rental amount).Â
To give you an example of the aforementioned scenario. I was approached by a client (last week) to assist with tenant placement services. She recently had a new baby and needed to find a larger home for her growing family. She was very concerned because she bought her home in August of 2007 (the last peak before prices began to fall) and was reserved about our ability to find a tenant at a rental rate that would cover her monthly obligations related to the home. I listed the property on our local MLS, as well as Trulia and other rental location sites. I procured a tenant in less than 3 days at a rental rate that will enable her to make a profit on a monthly basis (after management fees and costs). She still owns the home and will be able to take advantage of all of the tax benefits that come along with such while being able to move up into the larger home she needs for her family.Â
If you feel like renting your home just isn't for you, don't prejudge the value of your home. Many of my clients have no idea what their home is actually worth. Buyers are chomping at the bit to find a great home and with inventory at an all time low the competition just simply isn't there. Values in certain neighborhoods throughout Orlando have seen an uptick of 30% or more since the beginning of the year. Many with marketing times less than 30 days, closing with 60 days. Your REALTOR Â® can provide you with a no cost, no obligation comparative market analysis report that will help you determine what your home is worth. Also, if you plan to use the same REALTOR Â® for both the sale of your existing home and the purchase of your new home, the commissions can be negotiated down to help you maximize your profits on the sale. For example, all of the clients I work with where I sell their existing home and help them find a new one, I don't charge a commission to list the property therefore saving them an average of 3% should the home be sold through a co-broker relationship. In the event that I procure the buyer I only charge 1.5% therefore saving them 4.5% on the sale of their home. To put that in monetary terms: on a $350,000 sale I could save my clients up to $15,750.00.Â
Like I always say...where there is a will there is a way! If you are considering an upgrade I hope that you find this information to be helpful! If you are in the Central Florida area and would like to speak with me further to discuss the specifics of your scenario, I would be more than honored to meet with you to help you find the solution that will help turn your dreams into a reality!!
Bryan Knight - REALTOR Â®, SFR Â®, AHWD Â® / Mortgage Loan Consultant
The Brenparc Team
Greater Orlando Realty USA, Inc.
NMLS # 859840
407-756-5517 - Direct
407-951-5129 - Fax