[ORLANDO, FL]

By: Jake Johnson

With inventory skyrocketing and prices dropping in Central Florida, many sellers are faced with a very tough question. Do I sell my property now at a loss or should I hold onto the property in hopes of a recovering market? For some, it is worthwhile to get rid of the property, even if that means owing money at closing because they sold the property for less than they owed. Others feel like they are priced fairly and will ride out the market in hopes of a quick recovery.

Many investors have opted to put tenants in their properties for 7-12 months (7 months is the Orange County minimum lease term for properties not zoned for short-term rental) to offset their payments. The cavern between their total payments and their rental amount is increasing though. This is caused by the steady rise of housing prices throughout Orlando from 2004 through 2006 and the leveling off of rental amount during that same period. Investors have paid more for the same properties, while rental rates have remained steady.

Some investors are losing over $1000 per month on luxury properties. Does this mean they should slash their asking price even if it means selling for less than what they paid? Adding in Realtor fees and closing costs, some could owe $20,000 or more at closing. Most are choosing to take the $12,000 loss for the year in rent, write off the loss on their taxes, and hope for a reduction in inventory with subsequent increase in prices in 2008.

The average time on the market for a condo or home in the Orlando area is currently just over 100 days. Many of these properties are unoccupied, and will sit vacant until the right buyer comes along. This leaves the owner with over 3 months of mortgage payments, taxes, insurance and maintenance. The 100 day market time has been steadily rising for the past 7 months and will get longer over the next 6 months as short sale and foreclosure properties become more prevalent. This is compounded by the fact that many would-be buyers are shying away from purchasing in favor of renting a place until they see what happens with the market. Some buyers have even chosen to walk away from large deposits after second thoughts get the best of them.

With all of these factors working against sellers in the Central Florida real estate market, why are so many owners still choosing to sell? The fact remains that an aggressively priced house or condo in a nice neighborhood or condo building will still sell quickly if marketed properly and in good condition. Many of today's sellers simply don't realize the importance of the tiny details when competition is at all time highs. Keeping a condo uncluttered and sparkling clean, or a home's yard immaculately landscaped can be the difference between an offer near full asking price in 30 days and a low ball offer after 90 days that you may have to accept.

To conclude, if you are looking to sell your property, follow these steps:

1. Seek professional real estate services from a reputable company
2. Price your home 1-3% below the current market comparables
3. Be flexible in negotiations with any written offers to make them work
4. Continually keep the property in spotless condition and furnished if possible
5. Aggressively market the property through every possible outlet and be sure you
6. have quality and quantity when it comes to property photos

Good luck to all of those selling in a strong buyer's market. Be sure to continually monitor the prices of your comparables and stay competitive.

Orlando Condos For Sale