Lakeland – Winter Haven Florida Worst City for Real Estate Investing – I beg to differ.
Just recently I read Ms. Levy’s Forbes blog about Lakeland-Winter Haven Florida being the worst city of real estate investing. This article did not sit well with me and I did read it more than once. While the national news is saturated with negative housing news, remember real estate is local and when it comes Lakeland-Winter Haven, FL (Polk County) I felt I needed to clarify a thing or two.
Below is the quote from her blog:
“I know something else about it, too. Glittering ponds or no, you should not buy a home in the Lakeland-Winter Haven Metropolitan Statistical Area if you’re interested in selling it at a profit any time soon, according to new data from Cary, N.C.-based Local Market Monitor (LMM), a real estate research firm”.
Ms. Levy failed to mention a timeline other than the generic timeline of “any time soon”. If she is referring about flipping a property within 6-12 months, I would have to agree.
I beg to differ otherwise. I think the Lakeland-Winter Haven (Polk County) area is a great place to invest in Real Estate and definitely a great place to live, prices are low and if you are wiling to hang on to a property – and that is the most determining factor and rent it out or do owner financing, it is definitely worth it. As a Realtor® I would never advise an investor to flip a property in today’s market and the experienced investor is well aware of the situation in the Lakeland-Winter Haven (Polk County) area.
From an investor’s standpoint of view, I want to point out that of all the Lakeland-Winter Haven, FL (Polk County) homeowners who are delinquent in their mortgage payment should give indication that the amount of renters coming into the rental market is increasing. Along with tightening lending requirements, many borrowers who were qualified earlier to buy a home, may not be qualified now. Adding to this mortgage mess, record unemployment rates, bankruptcy, and divorce – surely not everyone can move back to mom and dad.
This makes this a great scenario for an investor who is willing to buy cheap homes in Lakeland-Winter Haven (Polk County) area as there is a growing number of prospective tenants looking to rebuild their lives and their credit, all this while holding on to their investment.
This simple statement by Warren Buffett applies not only in the stock market; it also applies to real estate investing:
“Be fearful when others are greedy, and be greedy when others are fearful.”
In today’s Real Estate Market – bad news is good news; it lets you invest a slice of America’s dream at a much-discounted price.
Copyright © 2010 By Petra Norris *Lakeland – Winter Haven Florida Worst City for Real Estate Investing – I beg to differ
Lakeland Florida real estate – Easy Home Search with QR Codes
Lakeland Florida Short Sale and Foreclosure Market Report – July 2010
For the month of July, the Lakeland real estate market of short sales and bank-owned (REO) properties increased its market share from 54% the previous month to 60%. There were a total of 102 properties sold, compared to 117 in June and 71 distressed Lakeland homes sold the year prior, according to Mid-Florida Regional MLS.
Currently there are a total of 1,976 Lakeland FL Homes for Sale and 513 homes under contract (8/20/2010). By calculating total inventory, homes that are under contract which are included in my inventory share because these properties have not closed in which a buyer could walk away at any given time.
- Bank owned properties – Inventory share is 15.95%
- Short sale properties – Inventory share is 26.67%
The Graph below compares sold homes in all categories – Traditional Sales (None Distressed), Lakeland Foreclosures (REO) and Lakeland Short Sales.
- Average days to Closing for bank-owned properties are 99 days
- Average days to Closing for other distressed properties are 261 days.
25 Lakeland Short Sale properties sold – average sold price $123,776 – median sold price $120,000
77 Lakeland Foreclosures (REO) sold – average sold price $68,209 – median sold price $57,500.
Looking for a great deal on Lakeland Short Sales and Lakeland foreclosures, feel free to contact me at petra@petranorris.com or click the search button below.
Lakeland FL Overall Real Estate Market July 2010
Lakeland real estate Update – So far for this year overall Lakeland Home prices averaging around $117,000 and July’s average overall home price was $116,042. However, only 169 Lakeland Homes sold last month, producing the third lowest numbers of Lakeland Homes sold for this year. Average and median prices declined sharply from the previous year by double digits. Distressed properties continue to be a major contributor in determining market values for Lakeland FL homes with over 60% of the market share.
Lakeland Homes sold in July: 169 – previous month: 216 – previous year July 09: 189 sold
July – average sales price $116,042
Previous month: $118,182 (-1.81%) – previous year July 09: $148,233 (-21.72%)
July – median sales price $99,000
Previous month: $109,200 (-9.16%) – previous year July 09: $130,000 (-23.85%)
The graph below represents average and median home prices in Lakeland for various categories. When our media provides us with a real estate market reports, generally these reports outline only Single Family Homes and Condominiums. Lakeland Florida has a variety of homes, such as manufactured homes, townhomes, villas and duplex units.
What are the various average prices in each Lakeland zip code?
Take a look at my spreadsheet below. I’ve separated the report by zip code instead of school zones; it gives you a more accurate report in my opinion. The data and graphs for this report were obtained from the Mid-Florida Regional MLS, it is deemed reliable but not guaranteed. This report does not include “For Sale By Owner”. The numbers highlighted in pink represents the zip codes where average sold prices have exceeded.
A total of 2492 Lakeland homes are for sale and under contract resulting in a 12 months supply, noticing that our inventory increased suggesting that supply continues to be greater than the demand
Let’s break it down for you to see the supply and demand for traditional homes for sale versus the distressed market in the Lakeland real estate market.
Traditional homes only – Inventory active and pending 1427 homes resulting in 24 month of supply.
Distressed properties – Inventory active and pending 1065 homes resulting in a 11 month of supply.
Distressed properties in Lakeland, Florida
For the month of July, Lakeland’s real estate market of distressed homes had a market share of 60%. There were a total of 102 homes sold in July, according to Mid-Florida Regional MLS.
Check back soon for July’s detailed Lakeland Florida real estate report that highlights bank-owned properties (REOs) and Lakeland Short Sales.
If you are interested in a specific area or neighborhood, feel free to contact me at petra@petranorris.com or click the search button below.
- Market value
- Assessed value
- Taxable value
If you don’t agree with the market value, you have the right to appeal your tax assessment by filing a petition to the Value Adjustment Board.
An informal meeting is encouraged to have your estimation of the market value from the assessor’s property appraisal reviewed by going to the Polk County Property Appraiser’s office and discuss the matter. You must file a “petition” in order to appeal before the Value Adjustment Board can hear your case. Completed petitions must be filed with the Value Adjustment Board. The non-refundable filing fee is $15 related to a single parcel, plus $5 for reach contiguous parcel. The petition filing for single parcel in Polk County may also be filed online.
Petitions related to valuation issues may be filed at any time during the taxable year on or before the 25th day following the mailing of the TRIM notices of proposed property taxes. The Value Adjustment Board must receive the petition by the 25th day.
255 N. Wilson Ave Phone: 863-534-4777
Bartow, FL 33830 Fax: 863-534-4753
Hours: 8:30am-5:00pm (M-F)
Lakeland Office
912 E. Parker St. Phone: 863-413-2549
Lakeland, FL 33801 Fax: 863-413-2550
Hours: 8:30am-5:00pm (M-F)
Winter Haven Office
3425 Lake Alfred Rd. Phone: 863-401-2424
3 Gill Jones Plaza Fax: 863-401-2428
Winter Haven, FL 33881 Hours: 8:00am-5:00pm (M-F)
The phone rings a desperate voice asking me what should I do? Should I make my mortgage payment or should I stop making my mortgage payment?This is one of the most toughest question a client or a consumer can ask me and this question comes up every time when talking on the phone, emails or at a listing presentation.
There are quite a few myths floating around with regards to making mortgage payments when considering doing a short sale. One of them is that you do not need to be in default with your lender in order to do a short sale.
While I am not a lawyer and can’t give you legal advice, I am well versed in Short Sales and this question when asked should be answered by a real estate attorney who specializes in foreclosures and short sales.
Reasons to take into account on whether or not to continue making mortgage payments should you consider a short sale
You may not have a choice because of your financial hardship where you have to put the monthly mortgage payment towards food and utilities.
You may save the monthly mortgage payment for moving expenses.
While it is not required to be behind on the mortgage, lenders may act upon to approve a short sale quicker than if you are current on your mortgage payment.
You may stand a better chance in getting the deficiency waived by your lender due to financial hardship. Why would a lender spend their resources chasing an empty wallet?
Your credit score will definitely have a major impact whether or not you do a short sale or your home will be foreclosed on. While a foreclosure has generally the most detrimental impact on your credit score usually 200-300 points a short sale on the other hand drops generally 100-200 points depending on your credit history.
You will not be able to receive a Fannie Mae backed loan for two years now to purchase another home while doing a short sale.
Making your monthly mortgage payment during a short sale
Afford to continue with your mortgage payment during a short sale will able you to protect your credit to some extent while doing a short sale and therefore allowing you to get FHA loan if you were not late on any of your mortgage payments. Less negative impact on your credit is the most important reason to continue making your mortgage payments.
Lender guidelines constantly changing and getting approved for a new mortgage is much easier when no mortgage late payments on your credit report were reported.
Since short sales require lender approval and there is never a guarantee, your credit is not affected should your lender rejects the short sale or you decide to cancel the short sale because your situation has improved. No foreclosure if your home does not sell because you stayed current on your mortgage.
Short Sale an emotional roller coaster. Whether you decide to continue with your mortgage payments or not, make no mistake, the whole short sale process is an emotional roller coaster, your option may be far better than letting the home go into foreclosure.
For a more detailed understanding of the process when buying or selling please visit Lakeland Short Sale.
Do you need to sell your home as a short sale in Lakeland, Auburndale, Bartow, Winter Haven, Polk City, Highland City, Mulberry or Bartow? Call or email me for a personal and confidential consultation.
Are you thinking about walking away because the math don’t add up anymore – Contemplating Strategic Default vs. Strategic Short Sale in Lakeland, Florida?
During the housing boom the lender thought it was a great business decision to provide you with a loan based on your financial situation and the value assessment of the lender’s appraiser so you could purchase your Lakeland FL home. In return you put up your house as your collateral and signed a promissory note – promising that you pay back the mortgage. More and more borrowers come to the same conclusion that it is their business decision to either strategically default or doing a strategic short sale.
While this decision is totally up to you, I’m not here to criticize or judge your action. I’m here to explain your options and hopefully convince you to look at Strategic Short Sale first. The lender is only looking at their bottom line and is less concerned with the hardship.
What is a Strategic Default?
A Strategic Default is basically walking away from your obligation to pay your mortgage because your home is underwater; hence the mortgage is more than the current market value of your home. This may work in Arizona, Alaska and other states because the lender cannot come after the borrowers other assets, since it is a non-recourse state. The State of Florida on the other hand, is a recourse state and the lender has the right to go after the deficiency judgment. Before you decide to walk away thinking you may be eligible for another loan through Fannie Mae in five years, think again! Fannie Mae recently announced a new waiting period of 7 years and start to crack down on borrowers who elect to strategically default.
Fannie Mae’s filing for a deficiency judgment is the next step it will take. The news release on June 23, 2010 said, “Fannie Mae will also take legal action to recoup the outstanding mortgage debt from borrowers who strategically default on their loans in jurisdictions that allow for deficiency judgments. In an announcement next month, the company will be instructing its servicers to monitor delinquent loans facing foreclosure and put forth recommendations for cases that warrant the pursuit of deficiency judgments”. Click here to read the whole news release! Not a good option in Florida
What is a Strategic Short Sale?
If you’d asked me a few months ago about a Strategic Short Sale, I would not have taken a short sale listing if there was not a hardship that could not have been supported by documents. The difference between a short sale and a strategic short sale is the borrower may financially be able to pay for the mortgage but is essentially making a business decision to unload the house.
The process of a strategic short sale is essentially the same as a short sale with a verifiable hardship. The amount of the balance you owe may be negotiated to a smaller amount on which the lenders ask you to sign a promissory note. Again, if it makes financial sense for the lender that their bottom line generates more money in a short sale than a foreclosure they will more likely approve the short sale.
I’m not an attorney or a tax advisor and therefore highly recommend anyone reading this article, contemplating Strategic Default and Strategic Short Sale to discuss options and ramifications with a real estate attorney and a Certified Public Accountant.
Foreclosure can be avoided through Short Sale! If you need to sell your home in Lakeland Florida as a short sale, hiring an experienced real estate agent who is knowledgeable on both sides of the transaction is basis for a successful closing.
Update for the Lakeland real estate market! Newly listed homes for the period of July 01 through July 15th, 2010. A total of 168 Lakeland FL Homes for Sale were recently listed with area Realtors®. The average sales price of Lakeland homes for sale increased to $149,739 from my previous report. The total inventory of Lakeland Florida real estate is 2035 as of 07/29/2010.
The types of homes and average prices for sale in Lakeland, Florida according to the Multiple Listing Services (MLS) are as follows:
3 duplex listed with an average sales price of $64,300
6 condos listed with an average sales price of $81,700
17 mobile homes listed with an average sales price of $74,953
5 townhomes/villas listed with an average sales price of $156,640
137 single family homes with an average sales price of $163,618
Lakeland’s newest homes listed! The priciest home listed for this time period is a 2004 custom built pool home that features 6 bedrooms 5 21/2 baths with almost 7,500 square feet of living space. The home is situated on over 1/2 acre near Scott Lake and is offered at $1,350,000. On the contrary, the cheapest Lakeland home listed for this time period is a 3 bedroom 1 bath bank owned home in the Westgate subdivision. It is offered at $17,900, just over $20.00 per square foot.
All data for this report was obtained from the Mid-Florida Regional MLS, it is deemed reliable but not guaranteed. This report does not include “For Sale By Owner”.
Take a look at the breakdown by zip code:
33801 – 26 with an average sales price of $79,387
33803 – 23 with an average sales price of $204,387
33805 – 07 with an average sales price of $154,086
33809 – 29 with an average sales price of $160,576
33810 – 34 with an average sales price of $114,682
33811 – 16 with an average sales price of $154,531
33812 – 08 with an average sales price of $191,163
33813 – 21 with an average sales price of $219,219
33815 – 04 with an average sales price of $37,825
Update on distressed homes in Lakeland
A total of 696 Lakeland homes are currently actively being marketed that are facing foreclosure. There were 76 Lakeland homes newly listed in the distressed category as Bank Owned and Short Sale with an average price of $116,059 or $66.85 per square foot.
July Update on “Sold & Pending” for Lakeland Real Estate
81 Lakeland homes so far sold in July with an average sales price of $76,970. There are currently 369 Lakeland homes in “pending” status awaiting to close according to the Multiple Listing. Check back soon for my detailed market report for Lakeland homes sold in July.
Looking for your next Lakeland FL home, it is all right here with the click of your mouse – just click away!
Lakeland Florida Homes for Sale
