The Top Ten Reasons It's a Great Time To Buy Real Estate!

The Top Ten Reasons It's a Great Time To Buy Real Estate!

by Paul Pastore

1. Selection, selection, selection. There are about 57,000 resale homes on the market in Maricopa county(Phoenix). Regardless of the price range a buyer desires, there are plenty of houses from which to choose. Just a few years ago the resale inventory dropped below 5,000 units. A buyer was forced to make compromises if they were going to locate the home of their dreams. There is a great selection of attached homes, condos, and townhouses. You can find large lots, small lots, and a lot that will accommodate your boat or RV. There are lots of options in this market.
   
2. No Bidding Wars. In 2005 we had one client that made an offer on ten homes. They lost the first nine to the 'feeding frenzy' that existed. Other buyers bid the properties up substantially from the original listing price. There were escalation clauses where buyers authorized their agents to outbid other offers by thousands of dollars. There is no competitive bidding in this buyer's market.
   
3. You can make an offer. A few years ago when you made an offer, the only question was how high above the list price could the buyer reach in hopes of being the best offer on the table. Today the sell price list vs. price ration is about 96%. A seller will not be insulted if you 'make them an offer they can't refuse'.
   
4. Patience is tolerated. In the hot seller's market that existed everything was rushed. Find a house before other buyers did. Hurry up and make the offer. Today a buyer can take their time. Look at several homes and think about your decision for a few hours.
   
5. Due diligence is welcomed. In this market a buyer is encouraged to obtain a home inspection, termite inspection, and appraisal. In 2005 many buyers waived these contingencies in order gain an advantage with multiple offers.
   
6. There are plenty of specs. In the not too distant past buyer had to 'play games' if they wanted a new home. There were lotteries and waiting lists in order to obtain new construction. Some buyers slept in their cars in order to get to the head of the lines. R.L. Brown estimates that builders have thousands of specs ready for immediate occupancy.
   
7. Repair requests are welcomed. After a buyer completes a home inspection, they are allowed to submit a repair request to the seller. In the past a seller might insist the home was sold 'as is'. Many times, there were back-up buyers waiting for a primary buyer to upset the seller whose home was increasing in value almost daily.
   
8. Few, if any investors. It is estimated that one third of all sales in 2005 were to investors. These non-owner occupied buyer caused the market to inflate and affordability to decline. Mortgage fraud became commonplace. It's a great time to buy without having to compete with hundreds of prospective landlords.
   
9. Location, location, location. Today's buyers can find homes closer to work. In the past buyers flocked to Maricopa and Queen Creek in order to find affordable homes. In this market, reasonably priced homes are within biking or walking distance to schools, rapid transit lines, and relatives.
   
10. Real Financing is available. The 'wink, wink' zero down, no doc, adjustable, sub-prime loans are gone. Fixed rates are back. FHA financing, first time homeowner bond programs, special loans for teachers, and police officers are back in business. It's a great time to buy real estate!

From: Hasner, Adam
Date: 10/3/2007 7:23:16 PM
To: karen@redreefrealty.com
Subject: RE: From 'Write Your Representative' Website

Dear Karen Lindholm:

Thank you for taking the time to contact me to share your views on this
critical issue. As you are aware, we are returning to Tallahassee this
week in order to balance the state budget as is required by our state
constitution. Due to less economic activity, revenues from sales tax
and documentary stamps are much lower than previously projected and it
will now require us to reduce state spending from the original budget of
$72 billion by approximately $1 billion for this fiscal year. During
this upcoming special session it will be important for us to remember
that state government, like local government, must live within its means
and not spend more money than Floridians can afford.

I certainly understand the impact that Florida's slowing real estate
market has had on our state's economy, and I fully agree that any step
toward economic recovery will require comprehensive solutions to fix our
state's unsustainable property tax system and help make Florida
affordable once again.

As you recall, the Republicans in the Florida House of Representatives
led the way earlier this year by passing a bold and comprehensive plan
that rolled back property taxes for all property owners - homesteaders,
non-homesteaders and commercial - to 2000-2001 levels and capped future
increases. Additionally, we passed legislation that would have provided
voters with the opportunity to eliminate their property taxes on their
primary residences. Unfortunately, the Florida Senate did not support
these measures. The tax relief plan we ultimately passed provided $16
billion of property tax relief in phase one and proposed a new Super
Homestead Exemption that could have potentially provided an additional
$16 billion in tax relief. While I recognize and agree that these
measures did not go far enough, I believe they were a good first step.
Now, the recent ruling by a state judge has jeopardized the possibility
of a vote on January 29th.

Floridians need to know that there will be tax relief sooner rather than
later, and I believe it is critical for the Florida Legislature to
ensure that there is a vote on January 29th that can help provide the
relief that people deserve. Once we have addressed the issue of
balancing the state budget, I am looking forward to returning to
Tallahassee before the end of October to propose additional measures so
that voters will have an opportunity to vote on January 29th on much
needed and deserved property tax relief.

Throughout Florida, Realtors such as you have been the strongest vocal
advocates for meaningful property tax relief and I thank you for your
support. In the coming weeks the opponents of tax relief will continue
to attempt to thwart our efforts so I urge you to remain vigilant and
together we will fight to help get Florida's economy back on the move
again.

Again, thanks for your note and for your continued advocacy on this
issue critical to Florida's future.

All my best,

Adam


Adam Hasner

Majority Leader

Florida House of Representatives

District 87



Written communications to or from state officials regarding state
business are public records available to the public and media upon
request. Your e-mail communications may be subject to public
disclosure.