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- Selection, selection, selection. Regardless of the price range a buyer
desires, there are plenty of houses from which to choose.
Just a few years ago, a buyer was forced to make compromises if they
were going to locate the home of their dreams. There is a
great selection of attached homes, condos, and townhouses.
You can find large lots, small lots, and a lot that will
accommodate your boat or RV. There are lots of options in
this market.
- There are Still Bidding Wars. In 2005 we had one
client that made an offer on ten homes. They lost the first
nine to the 'feeding frenzy' that existed. Other buyers bid
the properties up substantially from the original listing
price. There were escalation clauses where buyers authorized
their agents to outbid other offers by thousands of dollars.
While last year this situation did not often exist, we are
seeing multiple offers of properties that are priced right.
- You can make an offer. 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 list vs. price ration is
about 96%. A seller will not be insulted if you 'make them
an offer they can't refuse'.
- Patience is tolerated. In the hot seller's market
that existed 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 your decision for a few hours. Be careful,
however not to wait too long if you find the home of your
dreams at a great price. Others are looking to take
advantage of the market, too!
- Due diligence is welcomed. 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 gain an advantage with multiple
offers.
- There are plenty of specs. In the not too distant
past buyer 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. R.L. Brown estimates that
builders have thousands of specs ready for immediate
occupancy.
- Repair requests are welcomed. After a buyer
completes a home inspection, they are allowed to submit a
repair request to the seller. In the past a seller might
insist 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.
Foreclosure, however, are still "AS IS", so buyers need to
be aware.
- Few, if any investors. It is estimated that one
third of all sales in 2005 were to investors. These
non-owner occupied buyer caused the market to inflate and
affordability to decline. Mortgage fraud became commonplace.
It's a great time to buy without having to compete with
hundreds of prospective landlords.
- Location, location, location. Today's buyers can
find homes closer to work.
In this market, reasonably priced homes are within biking or
walking distance to schools and
relatives.
- Real Financing is available. The 'wink, wink'
zero down, no doc, adjustable, sub-prime loans are gone.
Fixed rates are back. FHA financing, first time homeowner
bond programs, special loans for teachers, and police
officers are back in business. It's a great time to buy real
estate!
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