Melbourne Florida Homes for Sale

Located in the Villages of Viera East, Auburn Lakes is a 249 home community that is surrounded by lakes and natural preserve. The community features a swimming pool and is within walking distance of the Viera East Community Park which features a large pavilion, tennis courts, basketball courts, volleyball net, playground and facilities. There is also a walking trail through the preserve which connects with Heron’s Landing, another one of the communities in Viera East. The community is also within walking distance of Ralph M. Williams Elementary which is very convenient for school aged children.

Holiday Builders built the homes in the community in 2003-2004. At the time, they were the 25th builder in the United States and had a very strong local reputation since their corporate office was located in Melbourne, Florida. The homes range from about 1,500 sqft to almost 2,100 sqft and offer 3 to 4 bedrooms. As of February 2011, there are only three homes on the market in Auburn Lakes ranging in price from $150,000 to $199,000.

Auburn Lakes is located off of Clubhouse Drive in Viera and is close to numerous shops, restaurants and activities. Banks, grocery stores, pharmacies, medical facilities and many more conveniences are all within minutes. Just across I-95 one can find Space Coast Stadium home of the Washington Nationals and the Brevard Manatees. The Avenues, a pedestrian shopping mall, is home to Rave Motion Pictures and their 16 screens of viewing pleasure. The Brevard Zoo is very close to the community and offers annual passes at a discount. The community is also very close to I-95 and US 1 for those that need to commute in the morning.

There are plenty of people out there that need to relocate for a new job. Some find that renting their primary home is the best option for them while they are three states away in a new job. That is not always a workable solution for everyone. But some homeowners who are not motivated to sell due to market conditions or can avoid a short sale because they can maintain the primary property and another home through the downturn decide to make the property an income source. That is fine and dandy but there are certainly things that the homeowner will need to consider while they rent their property.

1. Check the Mortgage – Some lenders have written interesting clauses into mortgages intended to protect their asset that backs the loan. Some lenders have included clauses that insist that the property be owner-occupied. Check the language in your mortgage papers to see if that is the case before you rent. It would be terrible to start renting the place to only have the entire loan called by the lender completely defeating the purpose of renting it out in the first place.

2. Change Your Insurance – It would definitely be a good idea to consult your insurance company that handles your homeowner policy. They are probably going to require changes since you are changing your residence into an income property versus your primary owner-occupied residence.

3. Prepare for Tax Season – Here it would be well advised that you consult a tax professional as to the implications of renting your primary residence. You should be able to keep normal deductions for repairs and such, but you may have to report the rent as income or on the downside be able to claim lost rent as a business loss. Either way, your situation should be taken up with a tax professional for professional advice specific to your situation.

4. Homestead Exemption - In Florida, if a homeowner claims their property as their primary residence there are tax benefits that home owners receive that reduce their property taxes. Local tax collectors and assesors have been much more aggressive with keeping up with the accuracy of homestead exemptions because there is potentially lost revenue from filings that are not a primary residence. Be sure to consult your local tax assesor or even seek legal advice to check on the implications of not filing information correctly where homestead exemption is concerned.

5. Check Local Laws – Some municipalities require a homeowner to file a business permit. Some municipalities have requirements that make the homeowner file the property as a rental property. Whatever the situation may be, you should check your local municipalities and make sure there are no requirements you would have to satisfy. Fines from the city or county are not fun to deal with when you are three states away.

So these are just some things to consider if you decide to rent your primary residence if you have to move away for whatever reason. There are also things to consider like setting aside reserves for repairs and dealing with deposits. It may be wise to consult a local property manager to assist in the renting and managing of the property in your absence as well.

This year has started off quickly. I cannot believe that I am already doing a monthly set of statistics for 2011. There is a buzz in the air and an energy this buying season. There are definitely a lot of agents that seem more optimistic this year than last and it will be interesting to see if the results match those sentiments.

First off, a piece of good news for inventory is that new listings for January 2011 are down more than 12% from January 2010. Homes that sold for January 2011 versus January 2010 are up more than 16% and the amazing increase was seen in condos. Condos are up more than 40% from a year ago. For those that have been shopping condos in the last couple of years, they are aware that there were much stricter guidelines for loans on condos which is why we have seen a surge this month and possibly will see that all year long. Although the number of transactions are up from 2010, the total dollar volume has declined. The average sales price is down more than 20% but that probably has to do with the number of condos that were sold this month which were down more than 30% in average price from the previous year. Watch the condo market this year, it could mean that there are going to be a lot of good bargains.

*New Listings are down from January 2010 – (12.26%)

*Sold Listings are up from January 2010 – +16.38%

*Volume Sold is down from January 2010 – (7.63%)

*Average Sale Price is down from January 2010 – (20.63%)

Here is what is selling in Brevard County, Florida in average sales price:

$0-$49,999 – 135 units sold (23.4%)

$50K-$79,999 – 118 units sold (20.4%)

$80K-$99,999 – 52 units sold (9.0%)

$100K-$159,999 – 127 units sold (22.0%)

$160K-$199,999 – 55 units sold (9.5%)

$200K-$249,999 – 24 units sold (4.2%)

$250K-$299,999 – 26 units sold (4.5%)

$300K-$399,999 – 23 units sold (4.0%)

$400K-$499,999 – 6 units sold (1.0%)

$500K+ – 12 units sold (2.1%)

52.8% of all homes sold in Brevard County were priced between $0 and $99,999. 31.5% of homes were priced between $100,000-$199,999. The average median sales price in Brevard County for January 2011 was $126,922. 59.5% of all homes sold in January 2011 were paid for with cash.

Current inventory on the market is broken down like this:

Residential Homes 4,367 on the market – 1,169 are short sales – 656 are bank owned

Condos 1,155 on the market – 180 are short sales – 139 are bank owned

Townhomes 342 on the market – 67 are short sales – 67 are bank owned

Total 5,864 homes on the market – 1,416 are short sales – 862 are bank owned

That is how Brevard County, Florida looks in January 2011. We are working towards a better year in 2011 and the start is pretty even ground.

As much as these have been the topic of conversation for the last couple years, some home buyers are still not sure what the terminology means and what determines if it falls into these categories. Well, here is a summary of these property types.

Short Sales – Although some would love to believe that a short sale is a short process – it is typically far from that. A house that is being “sold short” or as a “short sale” is a home that is being sold for less than the mortgage the bank holds on the property. Here is an example: Joe and Mary bought a house in 2006 for $250,000 and took out a loan for that amount. Joe and Mary decide for whatever reason in 2010 that they need to sell their house. Since values have shifted downward and similar houses are selling for $150,000, that is the price that Joe and Mary try and sell the house for. In this example, when they sell their home, the couple has to come up with the remaining cash at closing to pay off the mortgage note on the house or they have to get their lender to agree to sell the house for $150,000 and figure out what to do with the $100,000 in deficiency.

This is the part that is problematic for sellers and what takes so long. The bank is a third party that is not subject to the purchase agreement but has to approve the purchase. The bank will do its due diligence to determine what the value of the property should be and if Joe and Mary have a significant enough hardship that the only alternative would be the bank foreclosing on the house if a short sale is not approved. The bank orders a BPO, or broker price opinion, to determine the value of the home and they hire or assign a negotiator to work through the deal. It can take a bank anywhere from 30-180 days to determine value and if they will accept a short sale offer on the table. If you think you should sell your home in this fashion, you should consult a Realtor that is SFR certified which means they have had training in short sale and foreclosure sale procedures and know the process. Sellers will also want to consult a lawyer for legal ramifications and a tax attorney to understand any tax implications that could result from the sale of the home.

Foreclosures - Ok, so if the bank owns the property then the house is being sold as a foreclosure, right? Not exactly. A foreclosed home is one that has completed the legal process of foreclosure based on state laws and is going to be offered in a court property sale to satisfy the mortgage holders deficency. A foreclosed property must be researched by buyers because there could be back taxes, liens or other encumberances on the property that the buyer is not aware of. When the home is purchased this way, the buyer is issued a certificate of title from the court and the rest is history.

But I keep hearing that everyone is buying a foreclosed home these days, so what are those?? That leads to . . .

REO Bank Owned Properties – REO stands for Real Estate Owned Property (which I know doesnt make sense but that is what it means). This is where the court tried to sell the house for the deficiency of the previous owner and they were not successful and now the bank has taken ownership of the property. This is what most people are referring to as foreclosed properties but they are really REO bank owned properties. When a buyer buys one of these homes, the buyer is provided clean title if a proper title search is completed and the bank is required to satisfy back taxes, liens and encumberences depending on the purchase agreement and addendums written for the purchase. Again, a Realtor should be able to help a buyer through a contract and if there are legal questions then the buyer should consult a lawyer.

So that is the difference between a short sale, foreclosure property and a Bank Owned REO property. If you are still unsure, dont hesitate to ask questions. I am SFR certified by the National Association of Realtors and I can answer your questions based on Florida practices. Good luck on buying your home.