Nestled in the heart of the Sunshine State, Orlando is more than just a highly popular tourist destination – it’s also an excellent place to call home. If you are considering buying a house in Orlando, FL, you’ll be delightfully surprised by what lies before you in this city where cosmopolitan living and the Great Outdoors come together.
Interested in learning more? Let’s explore why buying a house in Orlando, FL, can be your best decision if you seek a lucrative real estate investment or a place where you can live, work, and play at the same time.
WELCOME TO THE CITY BEAUTIFUL
Family-sized fun and entertainment are usually synonymous with Orlando, FL, given its reputation as home to world-renowned theme parks. It also resonates among lovers of the outdoors with the many parks, lakes, and trails scattered throughout the city – gifts of nature that became partly responsible for the coining of its nickname, The City Beautiful.
All these attractions have been pulling in enormous visitor arrival stats, with VisitOrlando.com reporting as many as 74 million tourists in 2022 alone.
This booming metropolis has the tourism sector to thank for its remarkable contribution to its economy. This has fueled the rise of other affiliated industries and increased employment options for those planning on either starting or bumping up their careers in Orlando, as well as promising startups and investment opportunities for those with business acumen.
Brief history
Orlando’s history spans centuries marked by a wide range of cultural influences, starting with the Native American tribes who once dominated Florida’s vast wetlands, as well as settlers from Europe, Spain, and Britain.
In the mid-19th century, Orlando became a hub for cattle ranching and citrus cultivation. With the completion of the Orange Belt Railway that connected Sanford and Orlando in 1873, movement of people and goods became faster and more convenient. This also triggered the rapid pace of development that eventually led to Orlando’s incorporation as a city in 1875.
Over time, Orlando’s economy grew to include industries like tourism and aviation. The opening of the Walt Disney World Resort in 1971 was a transformative moment in the city’s history, propelling Orlando to the global stage as a premier tourism destination.
Today, Orlando is a thriving metropolis fueled by its diverse economic landscape, rich cultural tapestry, and ever-increasing population.
The Orlando, FL real estate market
Bucking dire predictions of an economic slowdown and a ballooning inflation rate, the Orlando, housing market remains strong and highly competitive, as it has been in the past three years. October 2023 figures are testaments to this, with homes in the city getting sold at a median of $380,000 from $370,000 the previous month and $365,000 the previous year. The inventory is still scarce in comparison to the huge demand, so heavy bidding and multiple offers for homes on the market are to be expected.
With tourism being the prime mover behind Orlando’s robust economy, it’s not surprising that renters outweigh homeowners in the city. 62.1% of the real estate here is used for rentals while 37.9% are lived in by actual residents. Meanwhile, a relatively large number of homes here (16.4%) are vacant, suggesting that these residences may be owned by seasonal occupants. These figures prove that investing in real estate here is a smart and profitable decision as you can easily tap into the pool of tourists and families looking for a vacation home in Orlando. You can check with a local Realtor to learn about these investment opportunities and help you find the perfect homes to buy in Orlando, Florida.
Real estate options
There is a home for any budget or lifestyle in Orlando, from cost-effective and cozy mobile homes to stately mansions and grand estates. Among the various property types found here, single-family homes take the biggest chunk, followed by condominiums, townhomes, and multi-family residences.
Some of the most popular architectural designs you can find in Orlando include:
- Craftsman Bungalow
- Art Deco
- Mediterranean
- Pueblo
- Contemporary
Orlando, FL neighborhoods
Below are some of the most popular neighborhoods in Orlando:
- Park Lake/Highlands. This neighborhood is popular among young professionals due to the awesome selection of restaurants, bars, coffee shops, and parks found here.
- Thornton Park. Near Downtown Orlando, this neighborhood exudes a trendy and vibrant atmosphere and is known for its cobblestone streets and charming bungalow-style homes.
- Lake Nona. This neighborhood southeast of Downtown Orlando is known for its business-friendly culture, innovation, and modern amenities.
- Audobon Park. This laid-back neighborhood is a notable historic district so expect a lot of charm and Old-World vibes as you explore the area. Antique stores here are a must-visit!
- Downtown Orlando. Find everything you need or want to visit within walking distance. Bustling as any downtown area should be, it is your portal to great shopping, dining, cultural, and even outdoor experiences.
- Lake Eola Heights. Located east of Downtown, this affluent neighborhood is known for its beautiful high-end properties and historic homes.
BUYING A HOUSE IN ORLANDO, FL
After learning about the many wonderful things about The City Beautiful, you may want to take the next step. Below is a comprehensive guide to buy a house in the city.
Preparing to buy your home
Before looking at homes, understand your financial situation and determine your budget. When deciding on your budget, be sure to cover these essential steps.
- Gather your financial documents in a file. In doing so, you’ll have a good idea of your budget. This will also help to systematize your financial documentation as you pursue financing. This file should contain:
- Bank account information
- Investment portfolio
- Credit card account information
- Loan information
- Tax returns
- Pay stubs and employment financial records
- Review your credit score. A major requirement in applying for financing in home-buying transactions, your credit score should ideally be between 580 and 680, depending on the loan you’re applying for and the type of home you can purchase. Review your current rating before visiting your preferred financial institution.
- Get pre-approved for a mortgage. Once you have your finances in order and have a clear picture of your credit rating and budget, find a mortgage lender and get pre-approved for a home loan.
This pre-approval will help determine how much house you can afford. Having this on hand during offers puts you at an advantage over others as sellers will perceive you as someone with money to pay.
With your pre-approval secured, you only need to get an appraisal and property survey to complete the loan process.
Choosing your Orlando, FL Realtor
Of the many real estate agents in the Sunshine State, how do you choose the one who can best help you in achieving your property goals in Orlando? Keep these in mind.
- Local experience. Since one of the biggest benefits to hiring a real estate professional is their local expertise, be sure to hire one whose milieu is Orlando. They have the information you will need about the city, from upcoming developments to neighborhoods and homes that will best fit your preferences.
- Ask questions. Here are some important questions to ask and things to consider when choosing your real estate agent.
- How much time can your agent devote to you?
- What are your agent’s credentials and education?
- Does your agent have experience completing similar transactions?
- Ask for a list of homes sold and/or references.
- Communication skills. A good agent should be able to explain technical real estate market terms to you in layman’s terms and answer your questions. They should keep communication lines open and keep you up to date with developments regarding your home-buying transaction, as well. Most of all, it’s easy to work with an agent who can be a sharp negotiator, a reliable bearer of useful information, and an excellent listener.
Looking for your dream home
With your finances in hand and your real estate agent by your side, it’s time to house hunt. Guided by a wish list you shared with your Realtor, they can help you find ideal neighborhoods and homes that are worth exploring.
When house hunting, be sure to:
- Drive around the neighborhood. If you’re near Orlando, doing this in a neighborhood of your choice will help you to get a feel for the area – from the layout and overall vibe to the amenities and even the noise levels.
- Search and choose listings. Once you have a feel for the neighborhoods you are interested in, choose homes you are interested in and want to view in person then share these with your agent.
- Visit your options in person. From your selected home listings, your agent will set up viewing appointments and tours. Viewing properties in person ensures that what you saw in the listing is what you’ll get. During these visits, be sure to ask all your questions and share your opinions with your agent.
Escrows, inspections, and appraisals
Once you complete your search and find a house you like, it’s time to make your bid. One of the most tedious parts of the home-buying process, this is where your real estate agent’s contribution and expertise are critical.
- Submit your offer and secure contract. Your Realtor can help you write a compelling offer that will help you secure the contract. Talk to your agent to work out all contingencies and concessions so you can present a strong offer.
Part of it may include an earnest money deposit of up to 1-2% of the home price. This deposit encourages sellers to take the home off the market. This is just one example of what your agent may recommend, depending on your chosen home.
- Inspections and repairs. Once your offer is accepted, you need to complete the home inspection. It’s common to find problems during this step. Your agent will help you navigate the process and negotiate repairs. If needed, you may need to do a re-inspection after repairs and a walkthrough before closing the escrow process.
In Florida, home sellers must disclose anything that may impact a property’s value. Your agent can help you get trusted local licensed inspectors and may recommend additional inspections such as radon testing and termite and pest inspection, as these are common in the area and not always part of standard inspections.
- Clearing the appraisal. The final appraisal will determine the value of the property. If you are using a mortgage to buy your new home, your lender will require an appraisal to ensure the property is worth the money it is loaning you and that their investment is covered.
- Final loan approval. Once the appraisal is done, the final loan approval could take anywhere from one to three business days. Once the loan is approved, you will be given a Clear to Close – which brings us to the final step.
Closing on your home
After all the inspections and appraisals, these are the last steps you must take.
- Final walkthrough. Together with your real estate agent, explore the home one last time before the official closing to ensure it is still in the expected condition. Check to see if all the repairs were completed and make sure no damage was caused to the property when the seller moved out.
- Closing. On closing day, you’ll meet with the title company for all the important paperwork, including loan application, deed transfer, and disclosures. Your agent can help you make sure everything is in order before you sign and complete the paperwork.
Once all documents are signed, you have to pay for closing costs. Typically, a buyer’s closing costs may be separated into four categories:
- Prepaid costs. These are the ongoing home ownership costs, including property taxes and homeowners insurance.
- Title and escrow charges. This is payment for the title company’s services such as title searches and insurance.
- Lender fees. These fees charged by your mortgage company to underwrite your loan may include expenses like appraisal fees or mortgage points.
- Miscellaneous. These may include additional inspection fees, natural disaster certifications, and other variable costs.
In Florida, buyers typically pay from 3% to 5% of their home purchase price in closing costs. Having a trusted Realtor can help ensure that you keep your closing costs reasonable and factor them into your budget.
Once you’re handed the keys, you are ready to move into your new Orlando home.
WHY YOU SHOULD WORK WITH A REAL ESTATE AGENT WHEN BUYING A HOME IN ORLANDO
In your online search for houses to buy in Orlando, Florida, you may have encountered the acronym, FSBO. This stands for, “for sale by owner,” and quite literally means that the homeowner is going DIY on their home-selling journey. While the seller is more likely to feel the stronger impact of going FSBO, the buyer may also need to read up more on proceeding with the nuances of the process to avoid any mistakes resulting from possible inexperience or lack of needed information on the seller’s side. This information could easily be at their disposal had a real estate agent been hired to provide guidance, knowledge, and support to the seller.
This is just one situation where an agent’s help becomes valuable in a real estate transaction. As a buyer set on buying real estate in Florida, having a Realtor around to help with your purchase is vital due to the following.
Better access to homes
Expert Realtors have unparalleled knowledge of the local market. Because of this, they have access to all the best listings available – even some that sellers may want to keep private. A real estate agent is your best bet if you want access to all the best available properties through their network.
In-depth understanding of the neighborhood and community
Do you want a home that’s near schools, parks, or the business district? If you plan to make a real estate investment, you’ll also have to know the city’s zoning ordinances.
And this isn’t only for potential businesses. If you are planning extensive home repairs or upgrades, you may also face zoning requirements for expansions or renovations, which your agent can help you navigate.
Expert negotiation
Negotiating the best deal for you is one of the most important benefits of working with an experienced Realtor. No matter how level-headed and business-savvy you are, buying a home can become an emotional and often overwhelming process. A good agent will ensure that your best interests are met during negotiations.
Filing paperwork
The home-buying process involves so much paperwork which can be quite taxing to put together. Some essential documents for this transaction include the deed, bill of sale, affidavits, tax declaration, offer, and much more. When you work with a real estate agent, you can be assured that all your paperwork is completed, signed, and filed accordingly.
Expertise in pricing
A good Realtor won’t just know where the best listings are but also the best-valued homes for your budget. They can determine if a property is overpriced or underpriced through years of making sales transactions in the area.
Inspections and repairs
Inspecting your chosen property is one of the most delicate steps in the home-buying process. You may fall in love with a house but ensuring it’s in good shape is crucial before closing. A real estate agent can help you look, identify problems you may not notice, and recommend a trusted home inspector to give you a fair and thorough assessment and detailed outline of any potential issues. They can also hook you up with trusted resources for any repairs that may need to be done.
Making the final touches
When your offer has been accepted and the sale is nearing closing, many things can fall through in the final hours. An excellent real estate agent can help you avoid eleventh-hour pitfalls such as title problems or lending issues.
Realtors are used to dealing with all these types of challenges and have fail-safe measures to ensure that closing on a house is smooth and hassle-free.
Support and guidance
Buying a house in Orlando, FL, can be fun and exciting but it can also be overwhelming. One of the most significant benefits of working with reputable Realtors is the invaluable guidance and support they can provide through each step of the home-buying process. This results in an effortless transaction minus the hassle.
FIND YOUR DREAM HOME IN ORLANDO, FL WITH A TRUSTED EXPERT’S HELP
Interested in buying a house in Orlando, FL? Let Robert Slack LLC help you navigate and explore Orlando’s dynamic real estate market.
Our team is renowned for its impeccable, personalized service and willingness to go the extra mile. We have been serving clients in Florida and Texas since 2014, with more than 24,000 transactions and a sales volume of over $8 billion under our belt.
With our industry expertise and strong values, we are committed to making your home-buying experience smooth and enjoyable.
Get started on your journey of buying a house in Orlando, FL with Robert Slack LLC. You can get in touch with our team today via phone, email, or on our website.