Condition of the Weston Real Estate Market

Market Conditions . . . They've definately changed, so what should you do?

Whether you’re selling or buying, by this point the bad news about the housing market seems never ending. Nationwide, foreclosures have more than doubled over the past year, lenders have tightened their borrowing standards and jumbo loan rates have shot through the roof. Ready for some good? Remember that all real estate is local, and the market Weston, Florida is still relatively strong compared to the rest of South Florida and the nation. Sure, gone are the days of selling your home in a matter of hours, but hundreds of thousands of people are expected to flock to our region in the next several years, keeping the market strong.

However, (for the near term) in a down market, how should you respond?

Home Seller: Take these steps to ensure the swiftest possible sale at the best possible price:
1) Make it look like a bargain. Your best shot at a sale is when you first put your home on the market. If the initial listing price is too high, buyers leave and may not come back, even if you subsequently cut the price. In this market they’ve got plenty of other choices.
2) Offer carrots. To clinch a deal, consider buying down the mortgage rate for your buyer. Your picking up an origination fee of 1 percent at closing could reduce your buyer’s interest rate by about .25% depending on the type of mortgage they are getting.

Owners: Sit Tight

1) Fix that Rate! If you have an adjustable rate mortgage (ARM) that has less than 3 years remaining before it adjusts, seriously consider fixing that rate now to either a 30yr fixed, 15yr fixed or another Fixed Rate ARM (7yr or 10yr). Rates are still relatively low and may not remain that way. 2) Downsize your expectations. Just as stock investors in the late 1990s came to regard 20 percent-plus annual returns as normal, so did homeowners over the past few years (planning for double-digit annual price gains into their financial plans). Don’t bet the house on it. Literally. Your home isn’t a replacement for saving in a 401(k) or 529 plan and shouldn’t be used as a piggy bank.

Buyers: Hunt for Bargains

1)Think longer term. If you expect to stay in a home for less than three years, don’t buy, Rent! You could easily end up getting less than you paid if you have to sell within a few years, especially once you figure in closing costs. Flipping may have worked in 2002 but not anymore. 2) Make your deal. Remember, prices may continue to fall for another year or two, so once you have a handle on the market, bid low. If the seller won’t budge, walk away. There’s no shortage of homes for sale. 3) Push for more. Don’t be afraid to press for non-cash concessions as well, Sellers may be willing to pay a portion of your closing costs or provide a home warranty covering repairs for the first year. If you’re buying a new home, your builder may give you a cash rebate, plus free upgrades such as granite counter tops, a Sub-Zero refrigerator, hardwood flooring or a big-screen TV.

Keep all of this in mind and remember, we live in one of the most resiliant real estate markets in the country, people don't work 40 yrs in the North East to retire to Iowa, and their not building anymore land in South Florida. For more information or to contact me directly send yoru emails to Joe Sloboda at jsloboda@hgmortgage.net