Home Buying in 33154>Question Details

Lumet, Home Buyer in 33154

HI, After a couple of months searching for a house in a neighborhood that we like, we finally accepted the fact that there are nothing out there.

Asked by Lumet, 33154 Mon Jul 5, 2010

Most of the low range houses are asking for much more than they are worth (especially in this economy) or when appropriately priced are immediately taken over by cash loaded investors who still can afford the "flip-mania" dream. So what is left are lots of renovated, all remodeled houses, bought at a ridiculously high price during the boom that the owners cannot let go at a fair price because they poured all those money in the renovations. A friend of ours (broker)) and just watching the news on economy convinced us that we should wait 6 more months ( at least) before house hunting again, as more foreclosures/hardships in housing thus more inventories might come again on the market.
What do you think.
Thanks

Help the community by answering this question:

Answers

22
all those projections don't matter....people get so hung up in a dollar here and a dollar there.....when you add back the missed opportunity of the first time buyer tax credit or the trade up credit, and the tax write off on the interest fr a mortgage (if you were financing), perhaps, the differential in the price vs your perceived should be price wasn't that great...especially when you also factor in the comfort factor, i.e. that by now, you could have settled in to a new home, and stopped looking.

If you're going to own a home for a long time....the appreciation will eventually catch up after these down curves. Guess I've been around too long...I still remember when interest rates were 22% and everybody was going crazy.
1 vote Thank Flag Link Wed Jul 7, 2010
so far Mack, in my humble thoughts, has it boiled down to the simple truth. Lumet, if you can't find and reach a deal, then you are ;

looking to what you think the future market Might be (this does not help you in the present).

Not very often will someone in the current market will sell you at a future market value of your creation.

As an Economist, I feel very unsure of "knowing the future" - sure I have my warm and fuzzy feelings.

Maybe its as Catherine says: "I don't think prices will get that much lower"
AND THEN AGAIN we might go 50% lower
1 vote Thank Flag Link Tue Jul 6, 2010
I have never been successful at timing the real estate market or the stock market. If you need housing and you plan to keep it for a long time, say 10 years plus, than you should buy what you can afford at the current market.

In the long run, markets tend to correct any short term abnormalities. In short, anyone that says they know what will happen in the next six months should have made a lot of money in the last real estate market correction!!!
1 vote Thank Flag Link Mon Jul 5, 2010
I think that buyers and sellers determine market value, and if you think that all other buyers are overpaying, then perhaps you're not a buyer in the present market.
1 vote Thank Flag Link Mon Jul 5, 2010
Lumet,

Timing the market is a hard game.

In the field of Economics it is said there are two types of economist that predict the future:

One, are those who know they don't know how the future forms,

and Two, those that don't know they don't know.

I don't know what you might solve by not continue to look??? Why not just set down your requirements and then cause you too examine them for being un-realistic. It could be the communtiy you look as many not have the price you require, so maybe you need another community, or another price.



John
1 vote Thank Flag Link Mon Jul 5, 2010
I see this was posted in 2010. Did you buy? Prices are significantly higher now.
0 votes Thank Flag Link Thu Mar 27, 2014
Good Idea!!

I hope you have found your dream home!
0 votes Thank Flag Link Thu Mar 27, 2014
What size and price range?
I do have some listings.
Sheryl@belofbeach.com
0 votes Thank Flag Link Thu Sep 19, 2013
Hi Lumet, What exactly are you looking for? 33154 is a luxury zip code encompassing Bal Harbour and Bay Harbour Islands....Have you tried looking in Surfside or just over the bridge? Please shoot us an email to debra@golanteam.com and let us see if we can find your dream house for you. We also have a free foreclosure website you can sign up to at http://www.southfloridaluxuryforeclosures.com
Web Reference: http://www.golanteam.com
0 votes Thank Flag Link Wed Jul 14, 2010
Team1, $1,400 HOA fee quarterly. ($5,600 a year) $4,154 taxes (2 years ago) add up to $9,754. Once insurance is added just how can anyone afford to buy that place?

Am I wrong in thinking insurance could be $3,000 or more? It sounds like those costs alone would cost about as much as the mortgage would.

I could maybe afford to buy that place, the other costs make it completely unaffordable.
0 votes Thank Flag Link Sat Jul 10, 2010
Exactly Dan, the 8k bribe (your word and I love it) only moved November buyers in to April, and now that we have moved future buyers into the Past - NOW WHAT!

A moment ago - Delete this answer
0 votes Thank Flag Link Wed Jul 7, 2010
John, I would agree that trying to figure out what those in power in D.C. will do over the next couple of years would drive a crazy person insane.

The PIIGS actually changed the whole financing equation here. People ran from them and placed money here. That dropped interest rates for mortgages. I did not expect that to happen, then again, I did not pay attention to international finance issues.

We can say that nothing done now is making things better really. A slowdown in house prices caused by the $8k bribe followed by more declines when it stopped.
0 votes Thank Flag Link Wed Jul 7, 2010
Dan, Your thoughts and data on the situation finds favor with me, and not! Truth be known, I have no clear picture of the future. Does DC remain stuck on Stupid? Or do they wise up and stop repeating the errors of the late 1920’s and 1930’s? I for one, do not know!
So many things can change the situation, on the negative we have PIIGS, the Euro, Iran, North Korea, the %*$#@###@! Hole!!!, storm season ahead, a good sized group of people wanting to bring the world back to the 1400 century, women draped in cloth, walking behind the men, no medical care, no driving- hummmm something very wrong with all that,
But some things are going well: http://www.trulia.com/blog/davidwhite/2010/07/international_…

So in the end, we have hope do we not?
0 votes Thank Flag Link Wed Jul 7, 2010
John, I can see house prices dropping at least another 1/4. We now have high unemployment levels. Some say it is really around 17% when everyone is counted not just 10% or 9 1/2% as reported. That means increased wages of any real amount are highly unlikely to happen. When interest rates go from 5% to 7% buying power drops by 23.9%. Just a slight increase in interest rates which should happen in the next couple of years will drop prices by about 1/4 as a monthly payment will buy that much less house.

Yes, interest rates could conceivably go even higher than 7%. That would just make it worse.
0 votes Thank Flag Link Tue Jul 6, 2010
Everything is relative, depending on from whose perspective you're looking at the deal; and in this market, you have some tough competition fr cash-rich investors/foreigners.

Finding the right deal is like finding a needle in the hay stack...they are out there, but I believe, you also have to calculate in your functional use and the reduction of stress fr not looking anymore, as well. And, if this is your first home, one cannot expect everything in one house/condo. List your priorities, then search according to those priorities.

Sometimes, it's better to search a really motivated seller than to search short sales/REO's because then, you won't have as much competition. Also, minor renovations might be a pain but might eventually be your future re-sale profit.

There is always a big gap btw buyer's and seller's perceptions...only time can wear both down until one can find the happy medium. However, if you keep getting properties taken fr you, then, perhaps, you need to reassess the realities of this particular market. I don't think prices will get that much lower. As long as interest rates are still reasonable, even the adjustible rates' fall outs that everyone is waiting for, will be able to sell and there will always be buyers in this particular market.

It's good to work w a patient realtor, who really knows this market, and can gage the negotiability/comps, etc. for you. Also, I would make sure that you have proof of funds to negotiate fr a position of strength.
0 votes Thank Flag Link Tue Jul 6, 2010
I believe your broker is on the right track. There are massive amounts of foreclosures coming to Florida through 2012. Those foreclosures should drive down prices.

If you want to buy now you could always make a very low offer. What you think it is worth NOT the current market value. Someone just may accept your offer. If so you get a house, if not you lost nothing in the attempt.

Consider what the site below suggests could be coming.
http://www.housingpredictor.com/florida.html

In Miami, one of the nation's harshest hit markets, auction companies are selling condos at some of the lowest prices on record. More than two dozen condo projects have been stopped, victims of the financial crisis as developers lost financing commitments from bankers and hedge funds ran out of money to fund their projects.

The market still has an over supply of condominiums and single family homes, which are projected to take years to sell off. The recovery process will be a long affair in Miami, which is forecast to deflate average housing values 11.9% in 2010.
0 votes Thank Flag Link Mon Jul 5, 2010
Dear Lumet,

You may have better luck with bidding on a fixer upper and competing with the CASH buyers with an FHA 203K Simplified fixer upper mortgage.

I attribute my last closing to my buyer's preapproval for a 203K Simplified mortgage on a bank owned property. Asset managers do not want to take the risk (or hassle) of going with a non-cash buyer unless they have assurances that if the roof needs replacing it can be done "after" closing.

So ask your lender for a 203K Simplified fixer upper mortgage and see how it works for you. Also you need to make your offer the FIRST DAY a bank-owned comes on the market because some Asset Managers do not even require one week on the market before accepting an offer!

Good luck!
Alma
0 votes Thank Flag Link Mon Jul 5, 2010
It may take more looking and searching...

There are lots of properties, waiting for a qualified buyer.

I have a feeling that there will be even more inventory in the coming months. Just keep your eyes open and have your agent send you an automatic update when new inventory comes on the market.
0 votes Thank Flag Link Mon Jul 5, 2010
Buy when you need to buy and are ready to buy--keep in mind that at this time interest rates are still very good and who knows where they will be tomorrow.
0 votes Thank Flag Link Mon Jul 5, 2010
Lumet,

YES there are great purchase in neighborhood 33154 !

Why don't you ask your friend /broker to look at : 9601 w Broadview drive and 1350 96 street in bay Harbor Islands ?

great houses and sellers motivated ! these are 2 of my lisitngs in this zip code ; of course all depends on your definition of 'appropriately priced " and "fair price' ,
also, top ranked locations still keep their value.

100% agree with John Bennett , below, keep looking ..... !
Awaiting for your showing appt.

Regards,

Anne de Lacour P.A
Broker / Owner
Alpha Realty
954 647 0781
0 votes Thank Flag Link Mon Jul 5, 2010
Lumet,

There are deals now if you want to make a deal. No offense, but I hear this from people all the time that get frustrated and become professional lookers.

Your money is a s good as any flippers. Quite frankly you can not build any house for what they are currently selling for which makes all of them deals and the flippers know this, thats why they are buying them, fixing them up and reselling them at a profit. You need to get aggressive, place multiple offers and get a deal.

If you want a house thats been redone for the price of one NOT redone, then your wasting your time and your agrument has no validity. 4.8% OR LOWER intererst and some rehab money is far better than rent AND A GOOD SOLID INVESTMENT NOW.

Play the game and play to win, or your left to cry about what could have been while everyones else is making out quite nicely that is doing something.

Get a good agent and do something. Call me if you want Greater Fort Myers and are not working with one. 239-246-6639

Good Luck

Kevin Cloutier, Realtor
Souther Premier Realty
0 votes Thank Flag Link Mon Jul 5, 2010
It depends on the market, if jobs are going to be created, how people feel and the supply and demand features of your area.

Stick with your agent and let them guide you!
Web Reference: http://fglick.com
0 votes Thank Flag Link Mon Jul 5, 2010
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2015 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer