Real Estate: A Good Time To Buy?

YES! It's a great time to buy. This is probably the best, pure "Buyer's Market" since WW ll. If you are a buyer in this current "market correction," the sun and stars and planets have aligned themselves... just for you! How so? Read on...

• You have choices. Lots and lots of inventory, from which to choose. In Flagler County, building lots shot up to the $80-90,000 range and are now available in the $30-40,000 range. Salt water canal lots peaked in the $400-500,000 range and are now in the $200-300,000 range. An "average" 3BR-2BA house was in the $250-300,000 range, but now is more like $150-200,000.
• No competition. Remember the craziness of 2000-2005? You will likely be the only one on the seller's schedule today.
• An "offer" is OK. Before, it was often multiple offers and the real question was "how high above the asking price will work?" Not today. Probing the seller with a low offer won't get you thrown out.
• Time lines are more relaxed. Look at a few homes and talk about your needs and wants. Proceed at a normal pace and leave the Valium at home.
• Due diligence is again part of the process. Get your inspections done. Get an appraisal (even if you are a cash buyer). At one point, these contingencies were sometimes ignored to get a leg up on the other bidders.
• Builders have lots of specs... and are competing. The builders are actually the re-seller's nightmare right now. They have deeper pockets and can weather the storm longer than Joe and Mary Seller. The builder's house at $195,000 today was what the speculator bought in 2006 for $249,000... and tried (unsuccessfully) to flip for $295,000.
• Sellers will fix stuff. Many purchasers in the crazy years would be forced to forgo repairs, in order to beat out a competitor. Even the bank-owned sales today have wiggle room. They will tell you it's an "As Is" sale, but when your inspection reveals repair issues, the bank will often come off the price a bit.
• Few investors to compete against. And no speculators at all. Lots of mortgage fraud there. They'd sign the bank's document to say it would be "owner occupied" (to get the better interest rate)... but then it would be put on the rental market.
• Financing is "real" again. I love what one agent, Paul Pastore from RE/MAX Achievers in Phoenix, AZ, said: "The wink, wink, zero down, no doc, adjustable, 3.5%, sub-prime, no payments first six months, hybrid" loans are gone. Fixed rates are back, as are VA/FHA and regional loans for military, police, fire, nurses, teachers, etc. Good stuff.
• Location-Location-Location is doable again. No more living in Georgia and working in Florida. Homes are once again more affordable... where you need them to be.
• Yeah... it's a great time to buy real estate:-)
• (Thank you to Paul Pastore, see above reference, for his original article on this same subject)