Ten Reasons Its a Great Time to Buy Real Estate!
1. SELECTION, SELECTION, SELECTION There are about 8,000 resale homes on the market in East Volusia County and Flagler County combined. Regardless of the price range a buyer desires, there are plenty of houses from which to choose. Just a few years ago the resale inventory dropped below 2,000 units. A buyer was forced to make compromises if they were going to locate the home of their dreams. There are a lot of options in this market.
2. NO BIDDING WARS In 2005, when the minute a home was listed the "feeding frenzy" began and often the sellers were bombarded with multiple offers to choose from and were able to "pick and choose" which higher than asking price offer they were going to take. The only competitive bidding in this market remains when a foreclosure, deed in lieu of foreclosure, pre-foreclosure or short sale property is listed below market value, so it is still important to be a buyer who has already been PRE-APPROVED by a reputable mortgage lender or have proof, in writing, from your banker or investment broker, that you have CASH to close.
3. YOU CAN NEGOTIATE OFFERS A few years ago when you made an offer, the only question was how high above the list price could the buyer reach in hopes of being the best offer on the table. Today, the sell price vs. price ratio usually ranges from about 91% to 97% and, if the property is competitively priced we are still seeing full price offers.
4. PATIENCE IS TOLERATED In the hot seller¿s market, everything was rushed. Find a house before other buyers did. Hurry up and make the offer. Today a buyer can take their time. Look at several homes and think about the decision for a few hours or overnight. However, if a buyer absolutely finds the nearly perfect house, it is advisable not to think too long, because, often times, that nearly perfect house is also one that other buyers like too and it may not be on the market long. Even in a market with many properties to choose from, often times, there is only one really right property for certain buyers.
5. DUE DILIGENCE IS WELCOME In this market a buyer is encouraged to obtain a home inspection, termite inspection and appraisal. In 2005 many buyers waived these contingencies in order to gain an advantage with multiple offers.
6. NEW BUILDER HOMES ARE A GREAT DEAL In the not too distant past, buyers had to "play games" if they wanted a new home. There were lotteries and waiting lists in order to obtain new construction. Some buyers slept in their cars in order to get to the head of the lines. Even builders, who might be building homes after they sign up the buyer, are often taking on 4 to 5 months to construct homes to order and the buyers can choose their own flooring, cabinetry, color schemes, etc. Not only that, builders are often paying all closing costs, offering incentive packages and awesome upgrades to entice buyers to sign contracts.
7. REPAIR REQUESTS ARE WELCOME After a buyer completes the home inspection, they may be allowed to submit a repair request to the seller. In the past a seller might insist that the home was sold "As-Is" Many times, there were back-up buyers waiting for a primary buyer to upset the seller whose home was increasing in value almost daily and the sellers were looking for excuses to take back-up offers that carried a higher sales price than the contract that they had honored. Sellers are also willing to sometimes help the buyers with closing cost assistance to cover the cost of necessary repairs in lieu of doing the repair work.
8. VERY LITTLE INVESTOR COMPETITION It is estimated that one third of all sales in 2005 were to investors. These non-owner occupied buyers caused the market to inflate and affordability declined. Mortgage fraud became commonplace. It's a great time to buy without having to compete with hundreds of prospective landlords. Unfortunately, many of these investors are now financially challenged and are being forced into pre-foreclosure, short sales, deeds in lieu of foreclosure and foreclosures, creating awesome buying opportunities. Ironically, you will still be competing with investors for the very lowest, below market priced properties. There is still a small, but thriving investor market of savvy investors out there.
9. LOCATION, LOCATION, LOCATION Today's buyers can find homes closer to work and in the best school districts. In the past buyers flocked to outlying communities where the prices were more affordable in 2005. Now homes are affordable in the most desirable locations and best school districts.
10. REAL FINANCING IS AVAILABLE AND THE RATES ARE STILL AT HISTORICAL LOWS Fixed rate loans are still a great deal. FHA and VA loans are great for buyers with lower credit scores and very little money down and offer low rates. No down payment, no closing cost programs are still possible. Sub-prime lenders, that is those who survived the storm, have tightened up on their lending criteria, which is actually a good thing to protect buyers from getting into debt over their head and ending up in bankruptcy and losing their home.
