Solid As Jello- Real Estate in 2007

 The Real Estate Market is as solid as Jello these days. The foundation of housing prices is far from Rock solid, nor has the market hit rock bottom.  Lenders are wobbling and loan commitments are a bit shaky as well. 

Offers in this market, are equally unsturdy.  Many come in as verbals testing the water so to speak. Others, lack proper documentation, and letters from lenders.

Sellers in need of liquidity or relief from their tax bills, mortgage payments, and escalating interest rates seeking solid ground on which to price their homes..find little comfort in the "Reality of Realty."

While pricing plays an important factor, even bare bone pricing are attracting unrealistic expectations from buyers. Many feel they have room to "wiggle" in the price even when there is none there.  A Seller who has reduced the price repeatedly, has likely exhausted the equity they once had. 

In Osceola County, there are some amazing buying opportunities available.  If the price has attracted you, the chances are the seller has already reduced the "fat" for you.  So delight in knowing you can indulge "guilt free", at the full asking price. This means they are already at rock bottom.

When the market began to go "soft" there was still some "wiggle" room.  Eight months later, this may not be the case. As more properties fall into foreclosure, or are upside down, the likelihood the lenders will take a whole lot less is not probable. Furthermore, they may take three months or longer to decline an offer. In that time, the market value has  likely dipped again. Making those properties unattractively priced nor competitively priced.

Adjusting to the Market-  Experienced Realtors follow the market very closely. A property with multiple reductions is likely to be sold achieving a 97-100% of asking price.  Typically in the past, we saw much more wiggle room than we see today. There are three components to pricing and considering offers. 

1. How much the seller must repay the bank.
2. How much title work and closing fees will cost. 
3. And lastly, the commission to be paid to Realtors.

Educated buyers aware of these components and pricing factors should adjust their though process. Doing so, can mean the different of an acceptable offer, versus an exercise in futility. The local MLS tracks the percentage of asking prices vs sold prices. Using this valuable tool can help to demonstrate why making an offer far below the asking price may not make the deal.

• You want an offer to be solid. That means:
• Having a Pre-Approval Lender letter.
• Money to put down
•  A realistic price  
• A buyer with a good credit score.

Otherwise it is like leaving a bowl of jello unrefrigerated overnight..only to discover in the morning it has dissolved.