However, if you are searching for a home in a non-equity community that will be similar to the style and quality of this home, you should prepare to spend at least 3 times the price of this home or more.
In the current market in our area, homes below $400,000 are being purchased for cash almost 1/3 of the time. That means two thirds of buyers are still working with mortgages. So you'll have an advantage in the marketplace.
The more difficult aspect of today's market is that sellers are now holding on to asking prices very hard. The concessions are typically in the 2-3% range, if there are any concessions at all.
Homes in country clubs are dropping in value because most people in today's economy either do not want to pay or cannot afford to pay the upfront equity and the continuing country club fees. But, if you are financially prepared for those fees, this is a great time to purchase in just about any country club in the area.
Marc Jablon, The Jablon Team
Re/Max Complete Solutions