Real estate market varies in different contexts. In Florida, for example, there are other real estate tactics that work and do not work. Now, we learn the two important aspects that realtors should know about the real estate industry in Florida.
First is the negative effect of short sales. There was a time when real estate selling in Florida is flourishing in the area of short sales. A short sale is also known as the falling short of the proceeds from a sale of a property. This happens when the lien acquired a property through an unpaid debt by the property owner. The owner could not pay the lien the full amount, but the lien still gives up the right to the property at a price lower than what should be paid. To close a short sale, a bank must approve the buyer’s request. The processing will take a longer time if there are more banks involved.
This high rate in short sales of properties dragged down the market prices of properties in Florida before. Some homes that do not close because no buyer is interested or buyers changed their minds affect the prices of other properties. It is a good thing that recently, short sales of real estates have gone down for almost half. As of January 2014, only 29 properties are open for short sales. Soon enough, these properties will be sold and the real estate spiral could start making its way up faster.
Another aspect of real estate in Florida that realtors should know is the translation of the income from real estate into a passive or monthly income. Realtors earn passive income in the properties they deal through the monthly rental which can go from short to long-term. A company called JWB Real Estate Capital has a feature on its website that provides beginner and pro realtors trainings for passive income in real estate. They provide training sessions to teach realtors to maximize their passive income earnings and study the investment industry in Florida.