I have to say I think the BEST deals were last year. I was working with an investor. He approached me in Feb and explained his goals, which included paying cash. But, he had to free up the cash before we could start house hunting. So, we put together a plan which included him getting the cash available and then also doing neighborhood drivebys, watching the market via automated searches and updates I set up for him & I both. While he was getting the cash free, we were able to both compare notes and really study the segment of the market he planned to purchase within. As soon as he had cash available, there was a shift in the market - the prices crashed. Like magic, we zoomed in and gobbled up 3 investment townhomes on the same street - amazing deals. Because we were both "ready", it didn't take us more than a second to recognize those deals. And, then, before you knew it, prices had rebounded. They dropped for only about 4 weeks like that - and since he was writing cash deals, he got his houses at lower prices than any of the comps. We both still watch those automated searches, as he'd probably buy again if the timing was right... but we haven't seen anything that even touches those investments in over a year.
That being said, positive cash flow is not always the goal of the buyer - in fact, I think most of my sales in the past year or so have been to first time home buyers; so positive cash flow is not even a factor. They are getting great deals, too.... but they are not assessing those deals solely by the numbers, they are assessing the deals based on the true VALUE the new home will bring to their daily living. So, it is just not an apples to apples comparison. For the first time home buyer, getting a home they love, for a price they can afford is wonderful. Adding to that the tax incentives for being a home owner - and even more this year for being a first time home buyer - as well as the historically amazing interest rates, the entire concept of buying right now presents an amazing financial opportunity.
The time is right!
How are you? I have tons of great success stories (as every transaction has it's own set of difficulties & each is a success). The last few transactions I have done have all been short-sales or forclosures. My last client purchased a great bank owned property in Md. The purchase price was at $300,000 and the tax assesment is over $500,000. We were one of 8 offes that made it through to the bank.
That was just the begining, as these were first-time homebuyers using an FHA renovation laon. The process is much more difficult. There were more documents to be processed, more inspections & different timelines than the regular loan process. The buyers were very nervous, but in the end it all worked out. They are currnetly working on their home and every week they have me stop by to see their progress. I am currently working with her parents now.
Please, let me know If you have any questions about the homebuying process. There are many great deals out there, but the market has definately begun to stabilize. Feel free to contact me anytime.