The US Dollar has been running on empty for the past two years. At one point interest rates must go up to stabilize the dollar. Before that happens we will need to watch the inflationary signs. Real Estate is till the best bet to hedge against inflation. Presently as a buyer you have an amazing opportunity. As I suggested earlier with the combination of cash and a low interest rate on a small mortgage you have accomplished the best solution if you act now. The money that you do not sink into the property will provide you a higher return when rates go up. So in fact the scenario I given you will benefit you immediately. The bottom line is to secure a house where the debt is low and affordable. When the house meets the purpose in every detail stop over analyzing or you will loose an opportunity that may never come again. Your realtor may have a different prospective that is why you need to challenge yourself and ask if you are ready buy now or pass.?
My dad use to say never run after a bus for an other one will come in a few minutes.
Exclusive Buyer's Agent
Given the complete uncertainity in this SoFL market, all the comments are helpful. I am currently working with an agent, and many of the listings we are looking at are foreclosures.
Is there any hedging involved in the offering price these days (i.e., since all reports on the real estate housing front are all negative and that the market pricing will continue to go down -- esp when the buyer incentives disappear).
Be interested to hear any additional thoughts on that! Thanks!
Cash buyers usually under bid and they usually loose by a few thousand dollars.
When you are using OP money at a low interest rate you can afford to gamble and over bid. You have placed yourself in safety with some cash left over.
Foreclosures are usually heavily discounted. The real value is realized if the purpose is served.
Exclusively Buyer's Agent
Happy Herald Realty
I know you have a few answers but I want to make sure you understand the real estate market in South Florida. Cash buyers are king. Thatâ€™s the good news. The bad news is that you arenâ€™t the only one. In determining the price you want to ask there is one question you have to ask yourself. What kind of deal is it? Many brokers are deliberately pricing their foreclosures WAYYYYY below market. This causes multiple offers (the most Iâ€™ve seen on one property is 24). You might be one of 5 or 6 cash offers. Youâ€™re not going to get anything offering below the asking price. Donâ€™t get me wrong, not all foreclosures sell above list price but many do. Thatâ€™s why you need a realtor that can help you determine what offer is appropriate. Another thing to consider, Iâ€™m not sure how much cash you have but if youâ€™re in the under $100,000 market that market is loaded with cash buyers so you can expect a lot of competition. Good luck with your search. If I can be of help please call or email.
All that matter is what you can buy the home for, what is the Market value. Which is why you need someone that is in the market place every day, someone that can tell you what the value is. This is done by a BPO or CMA - about the same thing, what similar homes in the area sold for.
It depends on the market and the comps.Some banks list the home low and get multiple offers. Some leave room for negotiation. Your agent can help you. or if you are buying directly, do your home work.
Abosolutely find out what recent sales prices have been for similar units, and figure in the cost of repairs. You can always offer less, but keep in mind that the banks have usually made up their mind what their minimum will be.
Make an offer you're comfortable with and see if it flies. You might just get the deal you want. Keep in your mind the maximum you are willing to pay, and if there is a counteroffer from the bank you have a decision to make. If you feel the counteroffer is too high, have your agent increase the price incrementally and have them say that this is your "highest and best offer". You may offer $100 or $1,000 or more than the original offer and find that the bank acceps your offer. If the bank is unwilling to budge, move on to another property.
Good luck. If I can be of further service please let me know.
Realty Hub, Inc.
All depends on market. What Richard said is true. You have to know what the market price is.
Find you a local Realtor to help you - tons of good ones in your area, and they cost you nothing as they are paid by the sellers agent.
Nicole Mason, Realtor
I buy foreclosures... and while theire are a lot of factors involved in making a decision on an offer price. I general rule of thumb that does not seem too offensive is about 10%- 15% off the Gross Sales Price.
This is just a ballpark figure I use after reviewing the "comps."
Please check with a REALTOR in your area...