Have We Reached The Bottom?

By
Real Estate Broker/Owner with Sellstate Advantage Realty

This is the most asked question in the southwest Florida real estate community! The million dollar question and I am amazed at all of the responses that I hear to the same question! After 28 months of sitting and waiting, prices have rolled back to 2001 levels! Buyers are all over town and transactions are once again closing on a daily basis! Where is the bottom? What is the botom? An old real estate investor who I have known for some time now recently said this, "You never know you were at the bottom, until you missed it!" Wow!

How long are you willing to wait before you decide to buy? At what price is it a good deal? I asked a potential buyer the other day, if they know anybody who wishes they had sold their property 3 years ago at the peak of the market? Of course they did, so I asked them why they did not sell? They responded that they were waiting until it went up just a little more!! I explained to them that if they continue to wait, they to will be in a similiar situation!

We recently went under contract for a 1500 sq. ft., 3 bedroom, 2 bath, 2 car garage, built in 2005 for $103,000. This home can not be built for that price today! There was a buyer who was very interested in that property and had submitted an offer starting at $85,000. There were numerous counter offers and their final offer was $100,000. That afternoon we went under contract with another buyer for $103,000. The original buyer was very upset and then wanted to increase his offer to $105,000! Sorry, but it was too late!

At what price is it a good deal? Are we at the bottom? When will we be at the bottom? How much lower will they go? If anyone has the answers to these questions please let me know! But the one thing I know for sure, it is up to the individual home buyer to answer that question for themselves! Remember what the old real estate investor told me,"You never know you are at the bottom, until you have missed it!"

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Rainer
59,556
Diane Lombardino
Keller Williams Realty of Jupiter - Palm Beach Gardens, FL
Great Post!  You have answered the most FAQ of the day!   Good luck.
Apr 26, 2008 02:09 AM #1
Rainmaker
482,637
Steve Glose
Keller Williams Classic Group - Orlando, FL
TRC, CIPS, 407-616-7286, Orlando Real Estate, Orla
I hear it everytime I talk with a Buyer. Im sure you will get 100 different answers if you talk to 100 Realtors.
Apr 26, 2008 02:09 AM #2
Rainer
164,544
Gary McAdams
GMAC Schwartz Property Sales - Key West, FL
That seems to be the question of the hour everywhere.  If you ask 100 different people you will get 100 different answers.  I've given up on trying to answer.
Apr 26, 2008 02:10 AM #3
Rainer
135,795
Michael Shankman
Award Realty - Las Vegas, NV
Selling Las Vegas 702-498-3383
hi- I enjoyed your blog and you were right on target. This is the same in Las Vegas- now is the time to buy. Buyers should jump in now.  good luck with your business....Michael
Apr 26, 2008 02:10 AM #4
Rainer
13,698
Gabriele Campbell
D F Campbell Ventures Group Inc. - Saint Albert, AB
ASP, CID

Hi Mike,

I have to tell you that in Canada we are hearing a lot of radio and TV advertising about investing in Florida - not just any state, Florida specifically. I was there in March and,I have to be honest, after meeting a Realtor and talking about the market in Orlando, I spent the next 3 days after returning home trolling around on the internet seriously considering the investment.

The question you pose is an important one, especially when the recovery of the situation rests with the buyers. Good post and good food for thought.

Apr 26, 2008 02:11 AM #5
Ambassador
825,289
Kat DeLong
LakeView Realty Enterprises, Inc - Lake Arrowhead, CA
Realtor DRE#01235311, Lake Arrowhead Real Estate (
Mike: NICE POST.    I feel this is one of the best times to buy...INTEREST rates are awesome and NO ONE knows if home prices are going to continue to drop. No crystal ball here.
Apr 26, 2008 02:13 AM #6
Rainer
86,590
Ron Parise
LocateHomes.com - Cape Coral, FL

Are we at the bottom? or is it just a dead cat bounce? 

 

As you point out, we wont know untill its too late.  but my  money is on the dead cat

       

Apr 26, 2008 02:30 AM #7
Rainmaker
571,868
Bill Gillhespy
16 Sunview Blvd - Fort Myers Beach, FL
Fort Myers Beach Realtor, Fort Myers Beach Agent - Homes & Condos
Mike,   Lots of early signs that the market is trying to come back to normal.  If you are looking for the bottom  -  look in your rear view mirror !
Apr 26, 2008 02:40 AM #8
Rainer
101,891
Kay Perry
Kay Perry, Broker - College Station, TX
Mike, Hopefully things are improving but we really don't know if we are at the bottom yet or not.  I think the market will get better in certains until one by one, they get strong again.  We are fortunate in College Station, Texas, to have a strong, stable market.
Apr 26, 2008 02:46 AM #9
Rainmaker
189,705
Clint Miller
Real Estate Pipeline, Inc. - Missoula, MT
Glad to hear that things are turning around for you guys! I have a broker buddy in Orlando that was down 75% from years past.  He called me yesterday asking about getting referrals again.
Apr 26, 2008 02:49 AM #10
Rainmaker
568,004
Pam Joffe
Solaris Realty - Tampa, FL
Good morning Mike- It feels like things are starting to pick up. buyers are still looking for great deals though.
Apr 26, 2008 03:02 AM #11
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Mike Kelly

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