Month: November 2019

Several years ago, Florida’s flourishing real estate market was struck with the unfortunate blend of risky mortgage loans and overenthusiastic speculations by real estate analysts and developers. This turned the state into the poster child for distressed homes.

The housing crisis haunted investors, buyers, and real estate agents for years, halting a variety of development and investment properties. Foreclosure filings across the state increased at an alarming pace. To this day, investors and homeowners are still dealing with the repercussions of those risky loans and overzealous market predictions.

Why Central Florida?

Central Florida is still known as the industry of distressed homes. In 2006, around 75,000 Central Florida properties were facing foreclosure filings. That number rose to an alarming 517,000 in 2009. This marked a 600% increase in distressed homes in just 3 short years.

After an entire decade has passed, the Sunny State of Florida now enjoys a flourishing and thriving real estate industry. Because of that, the number of foreclosures, albeit reduced, remains higher than other prosperous states across the country. Statistics show that in 2017, the total number of annual foreclosure filings was more than 65,000. That remained constant throughout 2018.

However, despite its declining foreclosure filings, Florida still tops the list in terms of total properties facing foreclosure. In 2018, a survey conducted by ATTOM revealed that Florida emerged as the state with the 6th highest foreclosure rate in the U.S. For every 140 households in Florida, one is facing foreclosure.

The forecast issued by the Florida Chamber of Commerce reveals that employment opportunities and population across the state are growing. And, in 2019 we saw a reduced risk of economic recession. In the past decade, Florida has become the top choice amongst retirees, not just from the U.S., but from across the world.

The state has also become famous amongst millennial investors. The distressed properties scattered across the state provide these investors a prime opportunity to own a house of their own. Given the stressors prompting homeowners and financial lenders to arrange a quick sale, it presents thrifty and budget-conscious investors a prime opportunity to invest in an affordable investment package.

Selling Your Distressed Home

If you want to sell your distressed or difficult-to-sell home, Central Florida is one of the best places to do so. Investors look for distressed homes in centrally located areas in some of the best metropolitan locations and neighborhoods. It is one of the best U.S. locations to buy foreclosure properties, and it has maintained this position since 2013.

Distressed homes typically experience a longer period of time on the market. And, as the number of foreclosed homes on the market grows, the total sales of foreclosed homes continue to rise. Needless to say, Central and South Florida are some of the hottest markets to sell distressed property. So, if you need to sell your home fast, you’ll do well in neighborhoods and developments in Central Florida.

Homebuyers, investors, and retirees too have a lot they can browse through in a market of distressed properties throughout Central Florida. From scenic waterfront neighborhoods, multi-family homes, and homes that need TLC, there’s a house that will be perfect for anyone. Florida’s distressed home market is dynamic and offers sellers the opportunity to get out of a difficult situation fast. Plus, investors have the opportunity to settle in the sunny state without the burden of heavy mortgages and financial rituals.

Why is it so Difficult to Sell a Distressed Home?

An alarming number of Florida homeowners are crippled with the burdens of a mortgage, and in order to avoid the deductions that come from foreclosure on their credit reports, they may try to put their house on the market to cover their losses. Homeowners who are already facing foreclosure tend to be even more anxious to sell out, and such sellers tend to feel like they can pose few demands in hopes of receiving a fair settlement.

A majority of Florida’s distressed homes spend months on the market, and as the market grows saturated, their demand and listing prices continue to decrease. It’s important to note that some of these houses may be unkempt, vacant or stuck in legal issues, and homebuyers will likely have to spend a sizable amount of repairing, refurbishing, and renovating the properties. These problems scare off a lot of potential buyers, but not Meli. We specialize in purchasing homes with these very issues. Get in touch with us if you’d like to learn more and request a free quote!

If you’re looking to sell a centrally-located distressed home in a vibrant community, located near Disney World or other leading attractions in Central Florida, Windermere, Clermont, Dr. Phillips, Gotha, Orlando, Winter Garden, or anywhere in Florida, please reach out to us at Meli. We’d love the opportunity to speak with you regarding your situation.

Selling a house without a real estate agent can be an overwhelming journey filled with hurdles. If you’re adamant about saving on agent commission and closing costs, it’s important to do your market research and learn about tried and true selling strategies. In this article, we will walk you through the tricks and tips of industry insiders that will help prepare you for the arduous task ahead.

Here’s everything you need to know:

Prepping the Property

It’s important to prepare your house to make a smooth landing on the market. Before you allow potential buyers to tour your property, there are a number of measures you need to take. First and foremost, you must declutter and depersonalize the space to remove all elements and belongings that will remind the buyer of you and your family.

Invest in a storage unit where you can place all unwanted items that you have stuffed inside your closets, garage, attic, and basement, and remove all photographs and personal items that make the house your home. Experts generally believe that removing one-third of all the fixtures and furnishings is ideal to make the space look breezy and de-cluttered.

Get rid of your memorabilia and create an ambience that allows potential buyers to imagine themselves owning your house without any unnecessary distractions. Be sure to clean the house from top to bottom – scrub all the appliances, wash the curtains and deep clean the tiles. Be sure to light some scented candles and open up the curtains to fill the space with warmth and sunlight.

As you are preparing your property, take some time to boost your home’s curb appeal. The exterior of your house is the first thing potential buyers will notice. Mow the lawn, add some flower pots to the entryway, and clear up all trash and clutter. If you can afford it, a fresh coat of paint would certainly do wonders at giving your house a cleaner, fresher look. If you’re on good terms with your neighbors, it may be a good idea to ask them to clean up their yard – or offer to do it yourself. Potential buyers will not want to live next to a house with poor curb appeal!

Choosing a Listing Price

Sellers often make the mistake of pricing their house much higher than the market value in a bid to make profitable gains, but this strategy typically causes the property to languish on the market until sellers are forced to reduce the price, and thereby the appeal of their listing. Instead of being hasty about choosing a listing price, take your time when conducting research. Be sure to examine the prices of similar properties in your neighborhood, and find a competitive price that will make your property more desirable.

Multiple Listing Service (MLS)

The Multiple Listing Service (MLS) is the ultimate savior of homeowners who decide to sell by-owner. It’s the most trusted listing service across the US, and it allows buyers and sellers to come together in an online market. If your house is listed on MLS, it will be connected to other popular real estate platforms, such as Zillow. Keep in mind that this listing is likely going to cost you a flat fee.

Market your Listing

Realtors prove extremely helpful in marketing your home, but there’s no reason to say that you can’t do it yourself. Aside from listing your property on the MLS or other real estate listing portals, be sure to advertise it online on social media, and deploy the assistance of “For Sale by Owner” signs and brochures. You can set out yard signs and brochures, and rest assured that these advertising costs won’t exceed the amount you would have to pay to a realtor.

Staging an Open House

Open houses are a great strategy to attract the attention of scores of potential buyers, and you can easily arrange one for your property. All you have to do is advertise your open house event across your neighborhood, in your local community center and online, using social media marketing tools.

The event itself has to be sophisticated, and you can always provide some light snacks and some brochures to inform the potential buyers about the various features of your house. Here’s an industry insider tip: Put some vanilla essence and brown sugar into the oven and let it preheat for a while, until your home is filled with the warm smell of freshly baked cookies. Light up some scented candles, open your blinds or curtains, and allow sunlight to fill each room.

Negotiations

Negotiating with the buyer is the final stage that most sellers find overwhelming, and since this stage involves contracts, legal jargon and financial matters, it’s important to do your research. The seller can accept the proposed contract or request changes. After an appraiser comes to your house, there may be signs of damage that were not readily apparent, and the buyer is very likely to request that you make repairs or they will renegotiate a lower price to compensate for the anticipated repairs. It is important to know your desired selling price and make active efforts to negotiate and sway the buyer to come to your terms. You will need the assistance of an attorney while devising or revising the contract.

Selling your home by-owner is something of an undertaking. Realtors exist for this reason. It’s not impossible to sell your home yourself, but it takes much more time and effort than it takes to list your home through traditional channels. If you’re looking to sell your home but don’t want to deal with the hassle of listing by-owner or through a realtor, contact Meli and we can discuss your situation.

You’ve received an offer on your home and you’re anticipating the closing process. But, before that, all sellers must experience the necessary and nerve-wracking ordeal of a house appraisal. 

Industry experts believe that appraisals are one of the most common reasons why buyers back out of a deal. Even if the seller doesn’t back out, a home appraisal can have a significant impact on the final closing price.

A survey conducted by the National Association of Realtors revealed that house appraisal issues account for 25% of the contract delays. An appraisal can be overwhelming. But, if your property is well-kept and you’ve taken measures to upgrade the house and add more value, you have nothing to worry about.

Here’s everything you need to know about what to expect during a home appraisal:

Give the Appraiser Unrestricted Access to the Property

The home appraiser will need unrestricted access to examine and inspect every nook and cranny of your property. The primary responsibility of the appraiser is to examine the property for defects and signs of damage. They’ll examine the construction of the house and how the property has been maintained. 

From the attic to the garage, prepare yourself to get comfortable with the idea of an appraiser running around your house. They examine each corner and inspect the drainage system, amongst other aspects.

Appraiser Undercover

In order to examine the true market value for your property, the appraiser will go undercover and conduct research on aspects you’re likely unaware of. The appraiser has to do a lot of research behind the scenes and comb through various sources. 

The appraiser will examine private data vendors and county courthouse records. They’ll also use the Multiple Listing Service and neighborhood trends to examine the current listing and sales prices across your neighborhood to compare the prices with the value of your property. A field inspection will also be done. This typically involves an overview of the external features of properties that compare with your house in terms of size, features, and price.

Prepare the House for a Photo Shoot

It‘s important to keep in mind that the appraiser will take photographs of the exterior and interior of your house. Therefore, it‘s important to make sure that all rooms and spaces across the property are squeaky clean, de-cluttered, and well-arranged. Be sure to organize the house and spruce it up with natural sunlight and plants before the appraiser arrives.

The home appraiser is required to take photographs. The moneylender will be interested in examining them to see the condition of your property. If your house appears to be cluttered and unkempt, the lenders are likely to assume that your property is ill-maintained. To avoid this, start cleaning and maintaining it as soon as you decide to sell it. This helps avoid the last-minute stress of going on a massive cleaning spree and the awful disappointment of rejection from lenders.

Sizing Estimates

The appraiser is also going to undertake a thorough estimate of the square footage of the entire property. This includes the exterior and interior of the house and all living spaces. However, the square footage measurements in the appraiser’s calculations doesn’t include non-living spaces, such as the garage or patio. This tracks any changes or expansions you’ve made to your house that may not be reflected on the record.

Overview of the Property

The appraiser’s report usually includes an overview of the entire property. This includes the layout, condition of appliances, and any upgrades you may have added to your home. The appraiser will record the number and sizes of rooms or spaces in the house alongside the floor plan and a number of other aspects that help them determine the overall condition of your property. 

It’s important to note that an appraiser doesn’t perform the same services as a home inspector. However, be prepared for them to record all apparent signs of damage and defects in your property. In order to ensure you receive the best appraisal, be sure to perform thorough repairs and clean up your property. This includes the interior and exterior of your home to ensure it’s lively and well-maintained.

Instead of fearing the house appraisal, focus on sprucing up and adding value! Doing so would appeal to potential buyers and lenders. If your house is well-maintained and you’ve made upgrades to boost the market value, you have nothing to worry about!

If you’re selling a house that needs repairs in Orlando, Tampa, Kissimmee, or the surrounding areas, Meli can help. Give us a call at (407) 338-4183 to schedule your walk-through and receive an offer. 

What you need to know about Orlando investment properties:

The house-flipping industry in Orlando, FL is currently booming, but becoming increasingly competitive according to the Orlando Sentinel. The Orlando Sentinel published an article in 2019, compiling multiple interviews from house flippers, several real estate experts, and senior economists on the latest house flipping situation in Central Florida.

Orlando ranks as one of the top markets to flip houses in the United States, and investor participation in this industry has blown up since the economy has recovered from the 2008 recession. The rise of Orlando’s investment properties has been correlated to the strength of its economy. Orlando has an incredibly low unemployment rate, an increase in construction, a high number of people moving to the area, and home value continuously going up.

The great rise in investment properties has posed a problem to investors. More people have gotten into house-flipping, which has to lead to decreased inventory and lower profitability. Several homes face distressing situations that include issues with titles, code violations, unpaid homeowner association fees, and various other problems. Sometimes, people inherited a house and want to sell it. Many times, a homeowner wants to get out of their distressed home. These issues stand in the way of investors purchasing their property. 

The distressed property situation has been looming over homeowner and investor heads, but Evan Shelley at Meli Homes has targeted this niche market and found the resolution to this difficult situation. Evan purchases these distressed homes and then finds investors to flip these properties. It’s a win-win-win for homeowners, Meli, and investors.

Although this is a lucrative business, it is warned that those new to house-flipping ease their way in by renting out flipped properties. This will allow beginners to appreciate the real estate business and gain experience to eventually become expert real estate investors.

The Meli Experience

Meli Homes is a small business located in Orlando, Florida that was created by Evan Shelley. It’s Meli’s pleasure to serve Florida homeowners struggling to sell their homes for one reason or another. There was a need in the community and created our business to help Floridians who weren’t able to handle the difficulties that come with selling homes that are distressed.

Meli works closely with partner attorneys, realtors, and investors to purchase homes from our neighbors in these situations. Our goal is to help them find the best solution, even if it isn’t with us. We truly want to help people who are struggling – those who inherited a house and want to sell it, or whose titles are trapped by probate, code violation liens, and more. At Meli, we believe that you deserve to live without the stress these issues can cause. That’s the Meli way.

If you‘re in a difficult-to-sell home and are interested in selling it quickly, contact us!

Did you just inherit a house or commercial property? Inheriting property without having to make any mortgage payments or grueling property tax payments is nothing short of winning the lottery. But before you get overly excited, it’s important to prepare yourself for a wide range of mind-boggling legal and financial conundrums. 

In this article, we will walk you through some of the aspects that most probate property owners and inheritors tend to be unaware of, alongside mapping out your prospects about the sale and profitability of the property.

Here’s everything you need to know:

What are your options?

You’re likely overwhelmed with emotions and memories when you’re the inheritor of a loved one’s property, but keep in mind that the property might come with pending bills and existing debt payments. Eventually, you will have to make the tough decisions when exploring your options of selling, renting, or moving into your inherited home. 

If you are currently renting, moving into the inherited home may be the best idea. The situation can get complicated if the house is not vacant and is occupied by other relatives, however. If you share the inheritance with two or three other people, it can be extremely challenging to decide what to do with the property, and moving in also becomes complicated. 

If you intend to make money off of the inherited property, you have two simple options: sell the property or rent it out. Given the extensive potential for opening up a passive income stream and the increasing potential of Airbnb rentals, it is highly advisable to rent out the entire property, or even offer various parts of the house to different tenants. 

However, if you have more than one partner sharing the inheritance, selling it out and sharing the profits may be your best option. If the property is in debt or requires you to make outstanding payments, selling is usually the best option.

Tax Evasions & Payments

Most inherited property owners are unfortunately unaware of the massive tax breaks they can enjoy when selling their property. If you sell the inherited property, you will not be required to pay a capital gains tax, regardless of any appreciation of the property since it was purchased. This will allow you to receive a tax-free profit, and the tax payments sellers typically owe will be yours to spend or save, at your discretion. 

However, keep in mind that you might be required to pay some other significant tax payments. Estate taxes are a tax payments that can be incurred if the property consists of more than $5.43 million in assets. This tax payment tends to vary on the basis of the state where you have inherited the property.

The estate taxes in Oregon and Massachusetts are incurred on estates valued at over $1 million, while estate taxes in New Jersey are levied upon estates worth more than $675,000. New Jersey residents are also subjected to an inheritance tax.

How “free” is the Inherited Property?

Even though your inherited property has come to you for free, it still likely has its own expenses. For instance, if the house has a mortgage, the estate can be used to clear the debt. However, owning a home is always expensive, even if you don’t have to worry about clearing debts. 

Prepare yourself to pay homeowner’s insurance, liability insurance, and property taxes, alongside the expenses of general maintenance and upkeep, heating, electricity and other day-to-day costs.

Inherited Properties come with Baggage

Inherited properties come with a wide range of financial and emotional challenges, starting with the arduous task of dealing with the physical belongings of the deceased, which include the furniture, fixtures, appliances, household belongings, clothing and more. If the property has been inherited from your parents, you and your siblings will have to deal with the emotions of divvying up items that hold sentimental value. Dividing such items can create challenging situations amongst family members. 

If you are preparing the house for sale or rent, you will have to undergo the emotional ordeal of moving all the personal belongings and items of your loved ones. If you have recently handled the passing of your parents, selling or renting the inherited property can quickly become a difficult ordeal, and often, many people with inherited houses tend to avoid clearing out to sell the property. 

It is important to prepare yourself to handle the emotional difficulties and stress to avoid the long-term consequences of inaction. If you are not selling off the property and not living in it, the insurance and maintenance costs will only increase in the long run, which will only add to your emotional stress by increasing your financial obligations.

Closing costs are sometimes an unknown for first time homesellers. “What are closing costs for the seller?” and “How much are closing costs?” are common questions we hear.

What are closing costs?

Closing costs for the seller are fees they must pay when they sell their home to a buyer. The closing fees will be used to pay the title/escrow company that facilitates the transaction. The closing costs ensure a smooth transition between the buyer and seller. These closing costs will include the transfer of a clear title, check for liens on the property, title insurance, and other requirements that vary from state to state, such as:

• Title and Lien Search: Ensures the title for the property is correct and has no outstanding liens or judgments.
• Title Insurance: Protects the homebuyer from any issues with the title that were overlooked in the Title Search.
• Recording Fees: Your title company or attorney will file the signed deed with the county office to show new ownership.
• Settlement Fee: Paid to your title company for handling the closing.

How much are closing costs?

The average closing costs for the seller usually range between 1-3% of the home’s selling price. The seller should expect this amount to be taken from their proceeds of the sale. For example, if you sell the property for $100,000 you will pay between $1,000 – $3,000 in closing costs.

What closing costs do not include?

These closing costs do not reflect the fees you will pay your realtor, usually ranging from 5-6% of the sales price. The closing costs are not including seller concessions to the buyer. For example, if during the home inspection the buyer finds something they do not like they might ask you to cover more of the closing costs to make up for it.

What should you expect to pay in total?

You can expect to pay somewhere between 6-9% of sales for the entire transaction that includes the closing costs and realtor fees.

What are your alternatives?

When getting an offer from Meli, we pay all closing costs. You don’t have to worry about additional fees when selling your house, like paying closing costs or realtor commission. We will buy your property as-is with no concessions. The amount that we offer is the amount you will receive.

This article is meant for informational purposes only and is not intended to be construed as financial, tax, legal, real estate, insurance, or investment advice. Meli encourages you to reach out to an advisor regarding your own situation.