Home Buying in 33417>Question Details

Helen, Home Buyer in New York, NY

when you say the condo market is collapsing in Fl - not being all that knowledgeable about these things what?

Asked by Helen, New York, NY Sun Sep 14, 2008

exactly does that mean. if I buy a unit at a good price and do not need a mortgage does put me in a better position. What would you consider the worse case scenario - I agree that a real estate agents spin would be just that. I need a bit of an education - what advice do you have for me.

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Part of an agent's value is providing comparable sales. Cash offers are great but my customer just won over 11 other buyers and was financing 75%. An offer contains terms & conditions, not just the $. I love sales, but you may want to consider renting where you're looking first...I think most agents, the majority build a business based on referrals. If you have an agent in NY that's reputable, the can refer you to a reputable agent in Florida.
Karen Lindholm
Red Reef Realty, Inc.
Palm Beach, Flagler, Martin & Broward County
AIM:redipad
1 vote Thank Flag Link Sun Sep 14, 2008
Helen,

We've begun to see somewhat of a turn around down here for the better. Most of us that survived the thick of it are very busy at the moment - and Buyers seem to be out again with an increase in Pending sales on the best of the good buys that are available.

We don't have any reason to "spin" anything but I would think that since our lives are the Real Estate market and we've been through the ups and downs, we'd have more experience to speak from than a casual investor. I would say that if anyone 'spins', it would be the media in this market...

If you'd like to set up a somewhat anonymous property notification search on my website, please feel free:

http://jolielindholm1.point2agent.com

Good luck!

Jolie Lindholm
Red Reef Realty Inc.
http://www.redreefrealty.com
http://jolielindholm1.point2agent.com
561.756.2363 (cell)
AIM: Redipad2
SKYPE: Jolie.Lindholm

Good luck!
1 vote Thank Flag Link Sun Sep 14, 2008
Of course, buying without a mortgage is the only smart thing to do given that Wall Street itself is collapsing now that 3 of their top 5 financial firms will be gone by this week (i.e. Lehman and Merrill joining the vaporization of Bear Stearns). However, the worst case scenario for any condo is living in a ghost town. Given enough foreclosures in the building or simply owners who can't pay the maintenance fees, you could lose building services like the use of the elevator, hall lights, security & other staff, landscape irrigation, pool maintenance, etc. And in that situation you're stuck in a scary situation because only deal seekers with an eye toward a market turn around several years down the road will want to buy you out. So research the building's other units and local economy very well, especially in Florida.

QUOTE:
"...more than half of all the deposits for Miami condos were put down by people planning to flip them for a profit without living in them..."
"A high rate of units contested in court makes buyers nervous about closing and moving into a half-empty complex..."
http://online.wsj.com/article/SB122091760356512479.html?mod=…
0 votes Thank Flag Link Sun Sep 14, 2008
The condo market is NOT collapsing......

What is happening,is the entire real estate market is going through a correction. Unfortunately, for the condo market, there exists an excessively large inventory of units currently on the market.

The law of "supply and demand" enters into play.....when supply is excessive price goes down.

Our advice is to not let this process scare you away from purchasing a condo because any time is a good time to buy as long as you are buying the perfect home, in the best location, being offered at a price you can't walk away from.

Hoope this is helpful.
The "Eckler team"
0 votes Thank Flag Link Sun Sep 14, 2008
I would say that "collapsing" is too strong of a word to describe the Florida market. Florida is a large state and there are all sorts of housing types. During the past few years, prices increased dramatically- the result is stabilization; not collapse!

If you were to buy today at the right price- it is safe to say that your investment is secure. Should you not need a mortgage- even better. The worst case scenario is that you buy something that is not marketable, in the event that you want or need to sell quickly.

Know the area in which you paln on buying, have an agent that you trust provide statistical data, buy something that you would enjoy living in!

Aventura • Bal Harbour • Sunny Isles Beach
http://www.WaterwayRealty.com
0 votes Thank Flag Link Sun Sep 14, 2008
Helen,

I just posted a very long, very funny, very extensive blog with a total market update on real estate in south Florida.

http://www.trulia.com/blog/barry_dunn/2008/09/beneath_the_nu…

If you do not need a mortgage then you obviously have less to worry about than most buyers. Since you live in NY, the question needs to be asked, are you relocating? Is this going to be a "second home" where you spend the winters? What are your reasons for wanting to buy a condo in south Florida? Will you be here enough to justify paying a full years worth of maintenance dues and taxes, or if you are only going to be here a short time each year, then you might be better off to just rent for the time that you come down each year.

I will be glad to answer any specific questions that you have. Feel free to contact me via email or on my cell phone, 954-298-1650. Have a great day!

Barry Dunn
Keller Williams Realty Professionals
cell 954-2198-1650
email: RealtorBarryDunn@aol.com
0 votes Thank Flag Link Sun Sep 14, 2008
First of all, Helen, don't believe that all real estate agents put "spin" on their presentations. If I thought my realtor was giving me "spin" I would run as fast as I could. The condo market isn't "collapsing". What is happening is that most places have an overabundance of condos that were built when there was a shortage, so the prices were high when purchased. Prices have dropped due to the overabundance--we are driven by the basic laws of supply and demand. If you work with a good, honest realtor, we can help you navigate the market.
Web Reference: http://www.MykeTriebold.com
0 votes Thank Flag Link Sun Sep 14, 2008
If you are a cash buyer you are in the drivers seat. First decide on an area you would like to be, then decide on a specific complex or community. Your best bet is always to get a buyer agent who can represent you and guide you through the process. it shouldnt cost you anything more if you negotiate to have them paid through the cobroke fee listed in MLS. you are paying cash, any agent would love to work with you, so find one who meets your expectations and do not settle. Then check to see what comparable units have sold for, this will give you what it is worth in todays market. make your offer less than that and if you get it a great price, even if the market goes down a little more before it starts to edge up next year, you will still be ahead. good luck helen
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Sun Sep 14, 2008
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