It's a buyers market in Southwest Florida!
What creates the Value on a home? Supply and Demand, Right. What happens when the Demand is high? Prices go up (a Sellers Market). What happens when Demand goes down, way way down? Prices go down and in our case way way down (a Buyers market).
For several years, the demand for South West Florida homes have been high and prices have skyrocketed. Now demand is low and prices have retreated. What will bring demand back? That process of bringing back demand in today's Real Estate Market is now underway. Now that may sound like Good News and it kind of is, but it will be a very painful recovery for all of us and that recovery may take a year or two before our market even stabilizes. Stabilizing means prices no longer going down and not going up. Its the turning point. After the turning point, then prices start going up and with our inventory of homes, probably going up very slowly at first.
And what is the process mentioned above that will start bringing us back and is now underway? That process, is called, A Short Sale or Preforclosure along with Foreclosures. We all know what a foreclosure is (nobody wants to go there, not even Banks). But what is a short sale? Short sales are competitively priced homes to sell in today's market whereby the Seller owes more on the home than what it is worth. And that difference quite often is substantial. The whole transaction is subject to the Owners Bank Approval. The Bank negotiates with the Seller under what circumstances that the bank will approve the sale. The Bank may forgive a certain portion of the debt, it may require the Seller to take back a promissory note, it may negotiate liens on the owners other properties or assets. Its all over the board as to what a bank may or may not do. In other words, short sales have been setting the value of our homes until the market absorbs most of the short sales and we can approach that "Turning Point".
We in the industry are are currently seeing the trend of short sales going to forclosures in the fall of 2008. This is actually creating a flood of forclosures for buyers at amazing prices. The only "problem" with that is if the house shows well and it's a good list price, we have been seeing bidding wars and the highest & best deal is what the bank accepts..
In the meantime, if you need to sell for whatever reason (move back north to be with the kids or grandkids) please give me a call. And if you need to sell and need to know more about short sales, be sure to call me today.
If you want to search the MLS like a pro, please let me know and I will set up a portal on my MLS
so you can search your own anytime!
I take the buying process as seriously as my buyers do, therefore I offer nothing but the highest quality of service to my clients. When you decide to purchase your home, make sure you hire someone whom you can trust and someone who wants to earn your business. Buying your home is one of the most important purchases you will make, so make sure you have the right agent who can provide you with the experience and the service you deserve.
When you understand current market conditions, you are better able to position yourself as a Seller. It helps to know if you are in a Seller's, Buyer's or Balanced market when setting your asking price. In a Buyer's market there is a lot more competition and Buyers have plenty of choices and room to negotiate, forcing you to be very competitive when setting your price.
Here are some of the steps I will take to find your perfect home:
Determine Your Wants and Needs
This is the single most important step. By asking you a series of questions I will establish what you are looking for. My goal is to not waste your time by looking at properties that are not in your price range or homes that don't meet your needs. Throughout the buying process I will maintain your confidentiality and represent your best interests.
Help You Get Pre-Qualified
This step will show you how much you can afford. This is accomplished by speaking with your financial institution and establishing what monthly payments you will be comfortable with.
I will use every available method to locate a property that matches your search parameters. This will include properties listed with our office, offered through other real estate companies, as well as unlisted properties. I will disclose all known facts about the property that are likely to affect your decision. When we find the home that meets your criteria, I will assist you in writing an offer and act as a liaison between you and the seller.