If you are buying in a buyers market, that is as good as it gets.
The key is to know what the stats are, and why are you buying? Investment? Primary residence? What is the cash flow analysis? You don't make money when you sell, you make it when you buy.
The area you are looking at comes into play here as real estate is local. We need more specific information before anyone can give you any advice. Where are you considering to purchase? What mtg are you considering? Is it investment or primary residence? Exactly WHERE have you narrowed down your search? Florida is a big State, and there are good and bad area's all over the map. Questions to consider are if this is a primary residence, will you live there for 2,3 or 5 or more years? If it is an investment, what are the rents in the area? Will you have a positive cash flow?
Give more specifics and we can help you more.
One has to be more specific than say "nothing is of value to buy". It wasn't to long ago many of my neighbours drowned after Katrina in an average of 3 ' of water. So do not drown in commentary...get the facts...get some of that information in the age we live in and empower yourself to a proifitable investment
The best method to know what will happen is to study an area's history - what are the market trends in the past year? How do low sales and foreclosures in that area compare to regular sales? A Realtor proficient in their area should be able to give you a good idea without having a crystal ball.
I received a very interesting video today.
I will attach the link. it runs about 6 minutes. It says a lot.
Land they ain't making any more of it.
I disagree with your friend and Jim Cramer.
This cycle has 6 more months then back to the old 3% gain.
Every weekend I see more people coming out to looking for deals.
That`s what I see for Arizona.
So first Weekend in May.
You will wonder what the video has to do with Real Estate. My answer is that this market, with all of our technology, will change on a dime.
As fast as they say the sky is falling....
When there is blood on the street, it is always a good time to buy.
For instance, I have a project in Biloxi. $5000 to reserve and the developer will apply for you for $73,000 in forgivable loans from the Miss Small Rental Assistance for a $265,000 duplex.
If you get approved, you sign a contract, if not you get your deposit back.
The property is cash flow positive, is 12 minutes to an area of Biloxi that is resurgent. There are 27 casinos in the works in that area. In 10 years this area could be like mini Las Vegas.
Is this a good opportunity? Yes, $73k in cash from the govt, $35k in depreciation from go zone incentives, positive cash flow and zero money out of pocket. I think so.
You see, you could wait six months and prices WILL be lower in the condo market. No one needs a crystal ball for that, just a simple lesson in economics--we have a 5-6 year or more inventory of condos (and growing) in some areas. If you are investing, I would suggest you wait. If it is for you to live in, you have two considerations--are you staying in it for a while, like more than 3-5 years? Then buy now, and take advantage of low interest rates. We don't know where they will be in six months.
The money you save over the years of your loan will certainly be better than what you'll save in a price reduction.
Foreclosures are not necessarily ALL good deals. Each bank prices them differently. Get with a Realtor who knows the neighborhood and work closely with them on market conditions.