My radio show, Everything Real Estate aired last week in Florida. The show discussed the topic, The Reality of Buying Real Estate in Today’s Market. With guest, Florida Real Estate Broker Linda Donalson of Remax, Fine Living, we were able to give our viewers 2 different views from Real Estate professionals, 2 different views of real estate perspectives in 2 different markets, Florida and Texas.
Being in such a unique market, real estate varies from region to region. Houston, being a much stronger economy and demonstrating stability in the home market is completely different from Tampa, being quite the opposite. The show gave the listener many things to think about when and where they buy. Buying in Tampa is much different from buying a home in Houston. We looked at the various elements of buying in any market, but focused mainly on the 2 different coastal regions of the US.
From the Realtor Biz magazine in Tampa:
“The long-running seller’s market of the last decade created a whole generation of real estate agents who lack solid closing skills. When there are too many buyers and not enough listings, no closing skills are needed. As the listing agent in a seller’s market, all you have to do is issue your counter offers, make sure the buyers are qualified, and then take the best offer. Buyers are so desperate to purchase that their agents have little need to close as well. Today’s buyer’s market is a completely different story. Experienced agents who cut their teeth on past markets where solid closing skills were required are the ones who are doing well today. Those lacking these skills are falling by the wayside.”
This is so true and I have mentioned this over and over on my show and now I am seeing it in print over and over. I stress this because today’s market isn’t like anything we have ever seen. It is not about accepting or rejecting offers. It’s about using techniques in helping the buyer and seller understand where the market is and why it is important to not let offers come and go. A good negotiator knows how to work the deal through.
Some of the other elements we discussed on the show:
1. Buying in Today’s Market: A purchase is made available at the discretion of the buyer. The buyer determines “where” referring to which state and city. Identify the purpose of the purchase. Is it for a portfolio, residential use, investment or rental income.
2. Length of Time You Plan to Own: Since we are not in a short-term, flip market, the buyer needs to think ahead of time how long they plan to own the property. Thinking about whether you can keep the property more than a few years is important in a purchase. Also, think ahead of time if you can keep the property as a rental or investment if you plan to move in a few years after the purchase. This will affect the type of property you purchase and where you purchase.
When I purchased my condo a couple of years ago, the intent was to live in it temporarily but hold it long-term. I never want to sell my unit because it will always make a great rental or a place for me to keep in Houston if I were to move and have to travel back for business.
3. How To Identify a Favorable Purchase: Depending on where you are located regionally, there are lots of different elements to think about.
Look at parts of town that have had a correction, have high inventory levels but are still considered highly demanded areas. Concentrate on areas where there is not an overabundance of new construction or areas where new construction may not be a concern in the next few years. Established neighborhoods with high inventory levels are attractive for the short and long-term, as opposed to transitional neighborhoods, where you need to wait for a wave of new development.
Linda Donalson’s view is that areas of town that were at one time most desired, most expensive and centrally located to businesses, shops and lifestyles are areas to consider buying in today’s market. With Tampa seeing a 50% or more decline in values and majority of listings being a short sale or foreclosure, there is a lot of inventory to choose from, however more difficult in getting a deal to close. It is still important in determining where you decide to purchase because you want to select areas that will rebound in value.
For more of this show go to http://www.blogtalkradio.com/everythingrealestate
Michele Marano can be reached at michele@michelemarano.com
or 713-899-8420
Michele Marano is with John Daugherty, Realtors.