With all of the positive press out there regarding Real Estate you would think everyone would be enjoying this "Market Frenzy". On LinkedIn alone this week (and its only Tuesday) there are seven articles referencing everything from the turn of the market to another fall in 30 yr interest rates. Everything is sounding so exciting for first time home buyers, sellers, and real estate agents. However, the overall consensus of this market activity is pure frustration.
The lack of inventory is stemming from two main sources. The banks holding back property and underwater home owners. The amount of people entering into foreclosure every month has been rapidly decreasing. That leaves two ways a property can enter the market; through the bank as a foreclosure / short sale, or the homeowner voluntarily. The problem we're facing is although less people are entering foreclosure they are still underwater with their mortgage. That simply means they owe more on the home than its worth and do not have enough money to cover the difference that someone is willing to pay. For example, Jim Smith owes 100,000 on his home and the market shows that this home will only sell for 65,000. Jim Smith would be required to come up with the balance in order to satisfy his mortgage. This has created a situation where sellers would like to sell their homes but are unable to come to market. Bank of America is offering a great new principal reduction program that they are beta testing to 200,000 underwater homeowners. The link is below.
Buyers Beware
Everyone has heard the story or knows a friend who knows someone who bought that half a million dollar foreclosure for $200,000! The truth is right now every good home in a good neighborhood is being looked at by a swarm of people and selling in under 30 days. That means accepting an offer within the first week! Inventories are at all time lows and the foreclosure faucet has yet to be turned on with the alleged "shadow inventory". I've worked with multiple buyers that are now upset, tired, and are becoming discouraged of this fast paced market. They are becoming involved in multiple offer situations and can possibly lose the first 5-6 homes they bid on before being accepted. This problem is a huge frustration for the buyer and their agent.
My advice to all buyers is to ask your real estate agent to set up an alert system for your parameters and when a home pops on to the market, see it within 24 hours. If you like the home make a strong offer within 72 hours. Buyers - go in with the right expectations and a hungry realtor on your team. Realtors - Be patient, increase your communication with your buyer and give an easy to understand explanation of the market.
If you or anyone you know needs Real Estate Advice, help on short sales, foreclosures, or buying and selling their home please let me know.
Follow me on Twitter @SouthFLRealEst8
You can contact me anytime at
954-614-6517 or whitney.dutton@hotmail.com
Follow me on Twitter @SouthFLRealEst8
You can contact me anytime at
954-614-6517 or whitney.dutton@hotmail.com
Whitney J. Dutton
South Florida Residential and Commercial Real Estate
Buyers and Sellers Agent
954-614-6517
