Navigating the New Landscape of Orlando’s Resort Real Estate: The Rise of Short Sales

For years, the Disney World resort area has been the crown jewel of international real estate investment. From the sun-drenched pool homes of Kissimmee to the luxury condos of Davenport, the “Orlando Dream” felt invincible. However, the market is signaling a shift. For the first time in over a decade, Central Florida is seeing a notable re-entry of short sales and bank-owned (REO) properties into the vacation home sector.

A Perfect Storm: Why the Market is Shifting

The current correction is the result of a “triple squeeze” on property owners. First, inventory has grown significantly. After years of historic lows, the number of active listings in the Orlando resort area has rebounded, giving buyers more options and reducing the “bidding war” frenzy of previous years.

Second, operating expenses have surged. Owners of short-term rentals (STRs) are facing a dramatic spike in non-discretionary costs. Florida’s property insurance rates have risen by double—and in some cases triple—digits. Combined with rising HOA dues and increased property taxes, the “carry cost” of a vacation home has outpaced many owners’ expectations.

Finally, demand and rents have moderated. While Orlando remains a top global destination, the post-pandemic travel surge has leveled off. Increased competition from new inventory means that occupancy rates and average daily rents have seen a reduction. For many owners—especially those who purchased at the market’s peak with high-interest debt—the math no longer adds up, resulting in the start of short sales and bank-owned properties.

The Opportunity: Why Now is the Time for Buyers

While this shift creates challenges for some sellers, it has opened a rare “value window” for buyers who have been sitting on the fence. For the first time in years, the power dynamic has shifted in favor of the buyer:

• Better Value & Pricing: Short sales often allow buyers to secure a property at a significant discount compared to traditional retail listings, providing “instant equity” from day one.
• Reduced Competition: Many casual buyers are intimidated by the short sale process, leaving the door open for savvy investors to negotiate without the stress of multiple-offer bidding wars.
• Negotiation Leverage: With inventory growing and homes spending more time on the market, buyers finally have the leverage to negotiate favorable terms and closing concessions.

Expert Guidance: The James Donovan Advantage

Navigating this complicated terrain requires more than just a standard real estate agent; it requires a specialist who understands the unique DNA of the Orlando resort market. James Donovan, Broker and Owner of Team Donovan, has become the go-to resource for owners and buyers navigating this transition.

With over two decades of experience and more than 2,500 successful sales in the Disney area, James brings an international perspective that is essential for Central Florida’s diverse owner base. Originally from the UK, James specializes in making the process simple and easy for both US-based and international property owners—many of whom live thousands of miles away and need a trusted partner on the ground.

A Simple, Transparent Process

Team Donovan’s approach is designed to remove the “fear of the unknown” that often accompanies distressed sales. Whether you are an owner looking for a graceful exit or a buyer looking for a high-value investment, James and his team handle the heavy lifting:

• Coordinated Logistics: James acts as the central hub, coordinating directly with property managers, accountants (to handle FIRPTA and tax implications), and lenders.
• Clear Communication: For absentee owners, James provides a transparent, “hand-holding” experience, ensuring clients are updated at every milestone without having to chase for information.
• Expert Negotiation: With a deep understanding of bank requirements, James manages the complex back-and-forth with lenders to secure the best possible outcome.

In a changing market, the right move isn’t to wait—it’s to act with the right information. For those looking to navigate the Orlando resort area’s changing tide, James Donovan and his team offer the expertise needed to turn a complex process into a simple, successful result.

For more information on navigating the short sale process or to view current resort-area listings, visit www.tdflorida.com.