Tuesday, October 16, 2007

Top 10 Reasons to Buy In Buyers Market

It is a buyers market in Orlando and Central Florida. While the media write about many negative aspects such as stricter mortgage requirements (affecting smaller percent of borrowers) & sellers unable to sell there properties, but their are numerous reasons to consider making a purchase now.

  1. Selection, Selection, Selection. Central Florida has 26,000 homes to choose from. When it was a sellers market, buyers had few choices, and had to settle on something less than their dream home. Orlando area has an array of single family homes, condos, townhome, and vacation homes at different pricing levels.
  2. No Bidding Wars. During 2005 it was a "feed frenzy" among buyers, that had to bid against many other buyers & offer over the asking price to get the property.
  3. You can make an Offer. Offers are below asking price, and sellers are not insulted and welcome any offers. Depending on area & condition of the home price ratio is about 90-98% of asking price.
  4. Patience is Tolerated. In the previous years in sellers market, buyers were rushed into decision to make an offer or loose the property. In most cases today, buyers can take time to think about the various property before selecting home of their choice.
  5. Due Diligence is Welcomed. Buyers are encouraged to have home inspections done.
  6. There are plenty of specs. New construction builders were have waiting lists, lotteries to get a home. Today there are inventory homes ready to purchase and move no wait time. And best of all pricing for new construction is better than homes on resale market. Traditionally, new construction is higher priced than resales.
  7. Repairs requests are welcome. Seller are more willing to fix repairs than in the past as buyers often waived this option to secure a home.
  8. Few, if any investors. It is estimated that 1/3 of all sales in 2005 were investors, less competition with competing landlords.
  9. Location, location, location. Today because of price reductions and motivated sellers are able to find homes closer to work, without long commutes.
  10. Real Financing is Available. Zero down, no doc, adjustable, sub-prime loans are gone. Fixed rate, FHA financing, & first time home buyer programs and special programs for teachers and police are back.