Nothing illustrates the devastation of America’s housing bust more vividly than the abandoned properties now blighting the nation’s communities. In the third quarter alone, foreclosure filings were reported on more than 750,000 properties in the United States, a 71 percent increase from the same period last year, according to RealtyTrac. But for real estate investors, one person’s tragedy can be another’s good fortune. With so many foreclosures on the market, “this is a once-in-a-generation opportunity for many people,” says Steve Dexter, a foreclosure expert and author of the forthcoming book Buy and Hold Forever-Building Real Estate Wealth Far Into the 21st Century.

Still, the purchase of foreclosed property—an often complex and involved process—presents would-be buyers with plenty of opportunities to make costly mistakes. In an effort to help consumers avoid such pitfalls, U.S. News spoke with a handful of experts to create a list of six common blunders that individuals make when attempting to buy foreclosed properties.

1. Flying solo. While enterprising do-it-yourselfers can certainly get away with going through the traditional home buying process without an agent, foreclosed real estate is another matter. Such complex transactions require the expertise of not just any real estate agent but one with a background in buying and selling foreclosed homes. “In today’s uncertain times it’s important to be working with someone who has been through market cycles before,” says Patrick McGilvray, president of TheHomeBuyingCenter.com, which links homeowners and owners of foreclosure real estate with potential house buyers. So unless you are truly a real estate expert, do some research and find an agent with foreclosure experience in your market.

2. Being unfamiliar with the law. It’s important to remember that real estate agents aren’t lawyers, and foreclosure laws can change significantly from state to state. “A lot of people don’t realize [that] foreclosures are heavily regulated and every state has its own set of laws,” says Alexis McGee, the president of Foreclosures.com. “If you don’t have the language proper in your contract, or if you have even the font size wrong, it’s criminal and civil damages-don’t count on every Realtor knowing this.” As such, McGee advises against relying on a real estate agent for legal advice. Instead, consumers should review the foreclosure laws in their state and then get qualified legal advice from a local real estate attorney.

3. Thinking short term. Since many foreclosed homes may decline further in value in the coming months, it’s important that buyers approach the transaction from a long-term perspective.” If you are not looking at a piece of foreclosed property from a 10-year time horizon-as an investor or as an owner occupant-then you will likely suffer,” McGilvray says. So if you are just trying to cash in on a quick flip, don’t buy a foreclosure. Only investors with the resources and patience for a long-term real estate investment and homeowners who can afford a fully amortized fixed-rate mortgage should consider buying foreclosed property, McGilvray says.

4. Seeing only the sticker. While the price you negotiate for a foreclosed home may be significantly less than its value just a few years back, many such homes may require substantial repairs. McGilvray says that anyone buying a foreclosed property should make sure to set aside an additional 10 percent of its price tag for repairs. “Make sure you have 10 percent, especially if the home is a few years old,” he says. “It is amazing how quickly houses can deteriorate.” Prospective buyers should keep these additional repair costs in mind when they are negotiating the home’s price.

5. Searching too broadly. With so much inventory coming onto the market these days, it’s easy for buyers to become overwhelmed. To that end, Dexter recommends that anyone in the market for a foreclosure target a specific neighborhood and contact an agent with experience there. Make sure to specify the type of property you are looking for in order to avoid being inundated with listings. Tell the agent, “I want all these kinds of houses in this neighborhood that are bank listings [and] I want to know about them all as they come on the market,” Dexter says. The agent will then be able to shoot you all the listings that meet your requirements as they become available. “If [the buyer is] patient enough and they get plugged in to the flow of new bank listings coming in, they can pick up some awfully good deals.”

6. Taking no prisoners. While buyers can certainly get good deals on foreclosed homes, it’s a mistake to assume that banks will accept any and all offers. (Unless, of course, the listing specifically says so.) Banks aren’t set up to sell houses, so they typically outsource their foreclosed properties to real estate agents, McGee says. In such cases, agents can receive listings in bulk, perhaps 50 at a time. While these agents want to get the properties sold off quickly, they also want to get a good price for the seller so that the bank will give them additional business in the future. “Saving face is important for them,” McGee says. “A lot of people just assume that because this property is bank-owned they will just take half off. Well, that’s just not true.” As such, insultingly low offers have the potential to tank the negotiations over foreclosed homes, McGee says. So make sure you present your wholesale offer case well both in writing and verbally with the listing agent.

Orlando Vacation Homes See Slight Increase In Sales 

The latest sales figures from the local Orlando Realtors Board show that sales of existing homes and vacation homes are showing a second month of sales increase over last year. While this is positive news for home sellers upon further review of the statistics we see that the majority of the sales were foreclosure properties or short sales. 

So what does this mean for Buyers looking for Vacation Homes in Central Florida? Well this tells us that the housing market is starting to improve. This will be a very slow improvement but the signs are positive that we might be at the bottom of the market. Only a solid quarter or two of increased sales will prove that we have reached bottom and that the housing market for the Orlando area is beginning to improve. 

For all those U.K. Buyers and local Buyers, you may want to seriously start your home buying process soon. No one knows for sure when the market will shift upward but the signs are showing that the bottom of the market is here. You don’t want to be that buyer who waited too long trying to save a few dollars when the foreclosure deals are out there now. You also want to keep in minds that as the amount of foreclosures decrease so will the quality of these homes. The best properties are out there now; as they get sold we will see the selection of these homes become less appealing. 

Bottom line; don’t sit on the fence too long or you will find that you missed your chance at a great foreclosure deal. Contact your local Realtor to get a list of available foreclosures and start shopping.

Foreign National Cash Buyers Need To Be Cautious.

For home buyers and sellers, a cash transaction has and will always be the best deal for both parties. Seller’s love a cash transaction because they know that there won’t be and difficulty in obtaining financing on a home. Buyers love a cash transaction because they usually get better terms from the seller and the closing costs are much cheaper. With all this good news what could possibly go wrong??? Plenty…..

Buyers need to be aware that just because they have a bank account with available funds to close on a property that there could be a big problem transferring those funds. With our current Banking crisis, many banks are finding it difficult if not impossible to meet their depositors withdrawal needs. Major Banks as well as local banks have found themselves struggling to keep up with the huge run on funds. Some banks have frozen assets in order to stabilize their accounts while others simply can’t meet the needs of their current depositors.

Here in the U.S. the federal government insures depositors on all bank accounts up to $100,000 and just recently increased this amount to $250,000. Foreign Banks may not have similar protections and when depositors go to withdraw funds they may find themselves unable to do so.

I recently had such a situation where the Bank was unable to transfer funds for a closing on a property here in Orlando because the bank did not have the funds to transfer. The closing had to be delayed a week until the funds could be secured. The Buyer could not have predicted this and was quite surprised and upset that they could not get their money.

Until this financial crisis settles down and banks get back on their feet, I would suggest that Buyers do a little more digging into their bank accounts before they make any major purchase.  Check with your bank to see if there are any limitations on withdrawals or the amount that can be withdrawn. Buyers may also want to see if their funds are insured and for how much. It might also be necessary to transfer fund early and place them in escrow for safety. Whatever action is taken, Buyers will want to communicate with their bank in advance to assure that your funds are safe and that you have available access to them. Cash will always be a great way to purchase properties; buyers just need to make sure that they have full access to their money.

October Sales Figures are in for Central Florida Housing Sales

For the month of October 2008 we are seeing a second straight month of increase sales over the same period in 2007. This is very good news as it shows that we are starting to see a positive sign that the Real Estate market is starting to rebound. The figures also show us that the amount of properties listed are dropping from a high of 4958 in October 2007 to 4289 in October 2008.

Lower inventory and a higher sales volume is a sign that the housing market in Central Florida is starting to move. We would like to see a strong 2 quarters of sales data to show a significant trend in the market. Below are the latest sales and listing data for the October 2008.

U.K. Buyers Put Second Home Purchases On Hold

It’s no surprise that the current market conditions have affected everyone around the globe but what impact has it had on the U.K. Buyers here in the Orlando real estate market? The latest trends show that the slower global economies and devaluation of the British pound given a one –two punch to U.K. home buyers looking for real estate outside the U.K.

While the news looks grim, there is a bright spot for everyone looking to purchase homes here in Orlando. Home buyers must first come to grips with the fact that the housing market here in Central Florida is at or near bottom. Home prices for foreclosures and short sale homes are priced at unbelievable sale prices. The Central Florida economy is strong and vibrant and future growth is very positive. And possibly the best reason to purchase real estate here in Orlando is that owning real property is and will continue to be one of the safest investments to own.

The smart investor is out purchasing in the current market.  We may never see home prices at this level again and the current activity shows this. September and October sales for 2008 have show both a 77% and 47% increase in sales over 2007 for Orlando area real estate. These are encouraging numbers that show Realtors that investors are out in the market and that they are purchasing homes.

So before you decide to put your vacation home purchase on hold, make sure the decision is a financial decision and not one of emotion. You might just find that by delaying your home purchase, you missed out of a wonderful opportunity to get in the real estate market at the best possible time.

With the end of 2008 winding down and the normal sales season coming to a crawl, home buyers need to keep their eyes open hot Real Estate deals. There are plenty of foreclosures currently listed that are priced to sell but let’s not forget about the normal seller who has the ability to price their home to sell just as fast.

These Sellers often get worried during the slow winter months that their home is not getting any activity and often drop price in efforts to attract buyers. These price drops often do not correlate with the current market conditions. Sellers view the slow season as a time where no one is showing their home so they feel that price is the main reason for slow activity. This slow activity often results in the seller dropping their sale price to boost showings and to attract a possible buyer. What the seller often forgets is that this is a normal market cycle and by lowering their sale price, they tend to drop below normal market prices.

Now this is not to say that every seller will drop their home price or become irrational with discounting the sale price but there are sellers who will be more aggressive during this time of year in order to get out. Home buyers should be on the lookout for deals in areas that they are shopping. As seller is more likely to take an aggressive offer this time of year than at any other time just because they feel pressured by the slow season.

So for all those buyers sitting on the fence, here is another reason to get out there now to make a home purchase for 2008. Great deals are out there and let’s be honest, the slow economy and Real Estate market will eventually rebound. Now is the time to buy and say to everyone down the road that you were the one who bought a home at one of the best possible times.

Recent trends and housing reports show that the Orlando area home market is still showing pressure for price reductions. The latest housing report shows home prices across the nation dropped 16% from August 2007 to August 2008. While the drop appears to be dramatic, there are some positive signs in the Central Orlando real estate market that are promising.

September 2008 sales over September 2007 sales showed a 76% increase for most of Central Florida. October sales figures also appear strong as well. Most of the home sales closing are bank owned or distressed properties.  Still the numbers are promising.

While the credit market is still tight, home buyers are seeing the value in the local housing market. Some analysts are predicting a further price reduction for the local Orlando market for 2009 but the percentage drop should be much less than 2008. We will continue to see a strong amount of new foreclosures hit the area market but with a strong local economy and an expanding international base we can expect the Orlando real estate market to show continued improvements.

 Without a doubt the current financial crisis is having far reaching effects on everyone here in the U.S. and across the globe. We are all looking for answers but finding few positive results to those answers. The government and the financial markets have been feverishly trying to find solutions to prevent further meltdown of the banking system. When will this all end? What solution will fix all of this? When will the housing markets rebound? Whomever has this answer should become President of the World because no one knows this answer.

Speculation is everywhere and when you ask 100 people who work in the financial industry you will get 100 different answers. What I can tell you or anyone who asks is that markets go up and go down. While our current market conditions are “real bad” and let’s be honest with how bad it is, there is a HUGE potential for Buyers who are in the market looking.

Everyday someone will ask me is now the time to buy or should I wait until the market levels off. I tell them that this is possible one of the best housing markets ever to buy in. Sellers are in a panic and dumping homes at wholesale prices just to get rid of them, A 30 year fixed mortgage today is with good credit is 5.375%, Home selection’s and inventory are absolutely fantastic, And Central Florida’s economy is still very strong.

We hear everyone talk about basic fundamentals and wonder what does it mean. On a National level we might hear recession but on regional level such as Central Florida Real Estate our economy is much stronger because we are an international destination for travel as well as investment in Real Estate.

Orlando Real Estate fundamentals are solid and will rebound much faster than most communities across the country.So when I hear what do I think about the current financial crisis I say “if you are buying real estate, buy now because you don’t want to be the guy who says I should have bought a home in 2008-2009 when they were practically giving them away”. 

With the financial markets in major turmoil and the uncertainty of the global economy the question of the day is “What Is Your Plan B”? Do you have a backup plan in the event your plan A fails?  What do you do when the one thing you were counting on falls apart? Do you have your plan B? Amazingly most people do not have a backup plan when life throws them a curve ball.  

As a Realtor, I know that every transaction has the potential for problems. Even the best Realtors can run into problems with the best planning in place. It is the top Realtor who has their plan B ready as a back up just in case problems arise.

What is your back up? When you run into a financial bind, do you have a little extra money tucked away to handle the crisis? What about when life throws you a personal problem. Do you have your faith to fall back on or the strength of family and friends? During times of crisis we often forget the there are solutions out there for us but we are blinded by the simplicity of the solution.

When you find that your plan A did not work, reach out to those around you for strength and solutions. You plan B might even be better than your plan A. No one said life would be easy so put you plan B in place, you never know when you will need it.  

If you are looking for a wonderful Vacation Home community in the Central Florida area, look no further. Emerald Island Resort is located within 10 minutes of Walt Disney World Resorts. Emerald Island was established in 2002 with a resort atmosphere in mind. The builder of this community, Park Square Homes has been building vacation homes in the Disney area to meet the needs of vacation Home buyers around the globe.

Emerald Island is located on the west side of Kissimmee in the Vacation Corridor. Covenant to Restaurants, Shopping, Entertainment and Orlando International Airport, Emerald Island is an ideal place to own a vacation home.

Emerald Island is a unique blend of Townhomes and Single Family homes set in a Resort  style to meet every owners requirement of vacation living.  This gated community offers each owner a host of community features. Whether it is spending a relaxing day at the pool , playing a game of tennis , or having a rigorous workout at the community fitness center, Emerald Island has what you need to match your lifestyle.

The townhomes at Emerald Island range in size from smaller 3 bedroom 2 ½ bath to larger 4 bedroom 3 bath units. Most come fully furnished but there are a few units that may be empty. Single Family homes in this community range in style as well as size.  Smaller homes range in the 3 bedroom 2 bath size and can go as large as 7 bedroom 5 ½ bath.

Currently there are plenty of properties available for purchase in Emerald Island to meet every vacation home buyers needs.  Are you ready to take the next step and see why the owners of Emerald Island love this community? Make sure you put Emerald Island on your list of communities to visit on your next trip to Central Florida.