Larry LaGrotta
Larry LaGrotta
Broker-Associate
Buyer's Information

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Buying a Home, Condominium, or Vacant Lot in Ormond Beach, Daytona Beach and Surrounding Areas

Welcome to the Buyer’s Information section.  This section contains valuable information for buyers looking to purchase homes, condominiums, and vacant lots in Flagler Beach and the Greater Daytona Beach Area which includes the cities of Ormond Beach, Ormond-by-the-Sea, Daytona Beach, Daytona Beach Shores, Wilbur-by-the-Sea, Ponce Inlet, Holly Hill, South Daytona, and Port Orange. 

WARNING.....WARNING.....CONTENT IS BASED IN REALTY AND MAY BE SHOCKING TO THOSE LIVING IN WONDERLAND.....WARNING.....WARNING

Just the facts...

The fact of the matter is that now is the time to buy.  While there may still be some uncertainty in the housing market around the country, I think Florida, specifically the Daytona Beach Area, is heading in a positive direction.  The inventory of distressed properties has been significantly reduced and property values have been on the increase.  Inventory of resale homes is under pressure as buyers attempt to clean up the last of the good deals and take advantage of the LOW interest rates.  We have never really been good at predicting the direction of the market (real estate or stock market), but history tells us that we often learn after the fact... missing the boat...again!   

What we do know for fact is that mortgage interest rates are at their lowest, inventory is improving, and demand is steady.  Over supply and low demand has always benefited buyers (Buyers Market).  With that said and if you are mortgage worthy (i.e. ability to repay and good credit score), you can get a mortgage despite what you hear on the news.  The only difference in the mortgage industry now is that you have to actually qualify for a mortgage.  If you are qualified to buy a home, get a pre-approval from your lender then call me.  I will assist you in locating your next castle and negotiate the very best terms on your behalf.  If you are currently searching for a home and haven't been pre-approved by your lender, do everyone (i.e. you, the seller, and the Realtor) a favor get pre-approved in advance.  Nothing is more disappointing than finding out that you cannot qualify to purchase after you found the perfect home.  Most agree that mortgage rates are poised to go higher in 2015.  So, any gains waiting for prices to go lower could be offset by interest rates heading higher.  Inventory is on the decline and will continue in this direction depending on the economy and a decrease in the number of distressed homeowners.  When the supply-demand equations shifts in the other direction prices will follow.   

If you are not credit worthy due to your credit history and/or recent economic events, but still dream of owning a home, all is not lost.  Some sellers may offer owner financing with a down payment.  If owner financing is not available, you can take steps to repair your credit worthiness and credit score and return to the market when you are qualifed.  After all that has happened during the recent real estate meltdown, I do not understand why some people continue to feel that they are ENTITLED to own a home.  I believe that everyone should be given the OPPORTUNITY to own a home.  That is, you cannot be denied this OPPORTUNITY based upon race, color, sex, religion, handicap, familial status, or national origin.  Having the means to pay for the dream of home ownership is based upon individual effort, hard work, and the desire to achieve the dream.         

Short sales are NOT as easy as you may have heard.  A short sale is a situation where the seller is attempting to sell their property for less than is owed on the mortgage.  Many times a property is being offered as a short sale and the lender has no knowledge until they are presented an offer.  In those cases, the price being offered has not been agreed to by the lender and the seller has not been approved for a short sale by the lender.  If the lender has not pre-approved the short sale, it will start the short sale process where the seller has to qualify for the short sale.  In many cases, the seller has the means OR assets to satisfy the mortgage and will be denied a short sale by the lender.  In some cases, there are multiple lenders (i.e. first mortgage holder, second mortgage holder, lines of credit, etc.).  All of the lenders have to agree to the short sale.  That in itself is where most short sales fall apart.  All of the lenders will demand a minimum payoff and if they do not get it, they will not cooperate.  When that happens the first mortgage holder will foreclose on the property which in most cases, wipes out the claims of the other lenders.  Short sales can takes several months to complete and in some cases, they never take place.  I am personally aware of some taking over 8 months.  Try planning a move under those conditions.  While the lenders fight it out, you can miss other opportunities, and be left with nothing when the short sale ultimately falls apart. 

Given the choice between a short sale and a foreclosure, I would recommend foreclosures.  On foreclosures, there is a lot more certainty that the sale will actually take place because the first mortgage holder now owns the property, have agreed to a selling price, and are prepared to move quickly in order to remove the property from their inventory.  Banks are not in the business to own foreclosed properties because it erodes their final proceeds the longer they own it.  Banks would much rather lend money, hold your savings and pay you little interest, charge fees for using their services, and get bailed out by the Government, using our money of course! 

Non-distressed properties present opportunities.  Let me be clear!  I do not believe distress properties and non-distressed properties have the same value.  I do believe non-distressed property values have been negatively affected and opportunities exist.  Now is the time to take advantage of buying the home your REALLY want.  Yes, a short sale or foreclosure might be cheaper in the short run, but if you are settling on a home based upon price alone, that is being short-sighted.  If the distressed property’s condition, location, style, etc. you are considering does not resemble your dream home, you will find yourself in the market again in a market that my not be as favorable.  Don't settle for less than you deserve.  Spending the money up front will save you money in the long run. 

Now that everything is on the table, let's find your castle!

WARNING.....WARNING.....CONTENT IS BASED IN REALTY AND MAY BE SHOCKING TO THOSE LIVING IN WONDERLAND.....WARNING.....WARNING

The first step in the home buying process is to know how much home you can afford.  If you have not ALREADY talked to your bank, contact them and ask to be PRE-APPROVED to purchase your next castle.  Yes, they will want lots of paperwork... bank account statements, employment pay stubs, tax returns, etc., but knowing upfront that you can ACTUALLY get a mortgage is the MOST important step.  Even borrowers with good credit scores are having difficulty nowadays, so don't search for and find that perfect home only to be denied by the bank.

I have included a mortgage calculator to help you determine a mortgage's principal and interest (P & I) payment based upon a purchase amount and a given interest rate.  Remember, the calculator only gives you the P & I payment.  Most lenders will require escrow accounts be established for payment of property taxes and insurance.  So, remember to estimate your property taxes and insurance, divide them by 12 (12 monthly payments), and add that amount to your P & I payment.  That will give you your principal, interest, taxes, and insurance payment... commonly referred to as PITI.

Go ahead, give it a try....

Now that you have an idea as to how much castle you can afford, please select from one of the home buyer’s sections below:

  • Why You Should Select Me as Your Realtor

    Buying a property is one of the largest purchases you'll ever make. You need and deserve an FULL-TIME, experienced, and professional Realtor to help you through the process. Click on this link and learn why I am that Realtor.

  • Home Buyer's Information

    Click here to receive free information about buying a home, condominium, or vacant lot in Ormond Beach, Ormond-by-the-Sea, Daytona Beach, Daytona Beach Shores, Wilbur-by-the-Sea, Ponce Inlet, Holly Hill, South Daytona, Port Orange, and Flagler Beach.

  • Dream Home Finder

    Do you have an idea as to what your perfect home might be? Click here to describe your ideal home.

  • Mortgage Information

    Click here to make contact with an experienced mortgage lender.

  • Home Inspections

    Buying a home is a big deal! Knowing the condition of the property you are about to purchase is very important. That is why I recommend all buyers get a home inspection when purchasing. Click here to locate an experienced inspector.

  • Do I Need Legal Representation?

    Click here to learn more about legal representation.

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Venture Development Realty, Inc. - Team Castle
100 Plantation Bay Drive • Ormond Beach, FL 32174
Larry LaGrotta • Broker-Associate
CELL: (386) 212-1202
OFFICE: (386) 236-4212
FAX: (386) 437-0100