Anna Snyder

OB: Tell us about your background, and how you got started in the real estate business.

Anna: I was in the Human Resources field for the 5 years before I moved to Central Florida with my family. At the time, we were buying our first home and I did not have a job, so I was searching the market and learning a lot about the area. I joined the Citizens’ Academy program offered by Seminole County and it was phenomenal! As I was learning about the developments in the area and the statistics on the number of people moving to Central Florida, I decided to make a career change and here I am. I really think that the market today is much more balanced and offers greater opportunities than during the past couple of years. If you are a buyer, you have a lot of choices and the advantage of historically low interest rates. If you are a seller and offer your house for sale at market value – well, see what happens in my story below about 7 offers in 7 days!

OB: Central Florida was a hot housing market for several years. What’s the current market for housing in the Central Florida area?

Anna: While the market is oversaturated with inventory, I do not believe it is as bad as portrayed by the media. All the properties offered for sale now just balance out the values that doubled over the past few years while the purchasing power of consumers didn’t! Still, over and over again I am seeing homeowners who financed their purchases with no money down and adjustable rate mortgages, all the while never counting on paying the payments at an increased rate. It seemed back then that re-financing would be a no brainer when the loan rates were due to go up. When the bubble burst and values dropped, many have now found themselves upside down on their houses. There are many solutions though for any situation. The most important thing, when you decide to buy or sell, is to honestly admit to yourself whether you have just a “want” or a “need."

OB: Are you working a lot with foreclosures right now? Can you explain how that works?

Anna: When a homeowner is no longer able to make monthly mortgage payments, the bank has the right to take over the property. The homeowner has to quickly make the choice to either have the title to the house given to the bank through foreclosure or to try and sell the property for market value, with the agreement of the mortgage holder. The second option shows on the homeowners’ credit history as a settlement/ charge off, and is much easier to restore than a foreclosure record. Most houses purchased in the 2004-2006 timeframe cannot be sold for what the homeowners owe to the lenders. It's called a short sale situation when banks settle for less than is owed on the house. At the time of the sale, the seller still owns the property, but the transaction is subject to the seller’s mortgage holder approval. The bank pays all closing costs for the seller including real estate commissions, real estate tax, title fees, etc. The sellers have a way out and the buyers have the property purchased from a motivated seller, which always reflects in the price. There’s been a lot of advertising, especially lately, selling systems on how to buy foreclosure/bank owned properties. The reality of it is that these transactions are just like any other transaction. You have to know how to work with the banks and be very patient, and as a Realtor, you always feel grateful for the opportunity to help sellers out of a difficult situation.

OB: You mentioned that you had one house with seven people bidding on it? How did that come about in such a difficult market?

Anna: That particular property was bank-owned. The Bank priced it about 25% below the market value to create a bidding war, which was exactly what happened. With as many as 75% of all properties on the market overpriced, an aggressive pricing strategy will surely generate huge interest. Remember, there are buyers in the market for a home and interest rates are still historically low. Buyers who qualify for a loan under current guidelines are savvy consumers who generally have savings and good credit history. They know the values and spot a well-priced home right away. The most interesting thing though is that in a multiple offers situation, the same savvy consumer ends up paying the actual market value, or very close to it, and as a bonus has the feeling of winning a lottery!

OB: What kinds of strategies do you recommend for owners to increase the market potential of their homes?

Anna: Keeping your home updated definitely increases its marketability. Key areas that buyers want to be perfect are the kitchen, bathrooms and the master bedroom. One thing to keep in mind though is not to over-improve. If you splurge on high-end kitchen renovation, for example, and houses selling in your subdivision have just standard kitchens - your house will not sell for more money, but it will definitely sell faster. If priced right from the start, your house will generate some action as in the story above. Because you never recover 100% of the cost of upgrades at sale, my recommendation is to do them when you still live in the house – might as well enjoy them! De-clutter the space, specify room purpose with rightly positioned furniture and draw attention to the selling features of your home. Fresh paint and flooring always help to create that crisp atmosphere that buyers are sure to appreciate. Before you put your house on the market, it might be a good idea to consult with a staging professional. Some real estate agents provide these supplemental services as a bonus to their customers.

OB: For buyers on the market, what are the key things to look for to spot a real deal?

Anna: If I had a dollar every time buyers ask me this question..oh wait a second..I do

To spot a good deal you need to know market values in the area. Look for houses in need of repairs. The best deal is when the condition appears to be much worse than it actually is. Whether you make a good deal depends on how much time and money you invest in repairs. Safe math to apply is to double the estimated repairs cost and add holding costs such as mortgage payments, insurance, HOA, etc. multiplied by the number of months it will take you to complete the work. Watch out for new home builders’ inventory homes that they are getting rid of. These deals are usually gone in minutes and yes, even in this market. Some builders offer several months of no interest payments for your new home. Not every inventory home is a deal, nor is every bank-owned or foreclosure property. When you know the market values in the area, you will recognize a catchy marketing campaign from the real deal!

OB: Looking longer term in the Central Florida area, what’s your feeling about the housing market?

Anna: People do not realize that this spell of “bad” market (opportunity time for many) is common, and historically, the market always bounces back up. In my opinion, May 2009 is when we will again start seeing increase in value. 922 sales closed in February 2008 as reported by the Orlando Regional Realtor Association. This is a 13.4 percent increase over January 2008’s 813 sales. Agents in my office say they have noticeably more showings and inquiries on the properties as compared to December 2007 and January 2008. Slowly but surely we are on our way up to a balanced supply and demand in the realty world. I would look out for the opportunities “here and now!"

For more information, click here to contact Anna.

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 [Anna Snyder - Central Florida Real Estate Agent Shares Her Insights into the Current Housing Market]

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