Tips for Buyers as Market Prices Rise
The market in Florida, although still swamped with foreclosures and short sales, is seeing a steady increase in listing prices for traditional sales. What has been a buyer’s market for many years now is slowly shifting in favor of the seller once again. As the prices rise here’s my advice for those still looking to buy:
Cash Offers Win
Banks are still willing to negotiate lower for foreclosures and short sales for buyers who don’t require financing. If you are looking to buy a vacation property in Florida, can you use the equity line on our primary residence to finance it? If you yourself, do not have the available finances, can you arrange a private loan that seller never has to see?
If You Love It, Don’t Lowball Your Offer and Act Fast!
Previous foreclosures and short sales are slowly coming back on the market thanks to private investors, but move-in ready homes are still hard to come by. A friend of mine flipped three houses in eighteen months and every one of his listings went under contract within the first two weeks. And yes, each of the offers he accepted were near or at the asking price. If you love it, you’ll need to move on it.
Consider a Fixer-Upper
If you can’t pay cash or afford financing on move-in ready house, no worries! Maybe your “dream home” is waiting for you at a lower price; it just needs a little “sweat equity” before the reality matches your dream. Carpet is easily replaced, walls are easily painted, and long-neglected lawns can easily be re-landscaped. As a former loan officer, I’d be happy to crunch numbers to help you see what you can still afford to do on the house after closing. Also, if you consider your home as an investment, your sweat equity combined with climbing real estate prices will put you in a position of greater buying power in only two only two or three years. Then maybe you dream bigger when you re-enter the market.