Lake Mary Homes are for sale, but buyers, especially first time home buyers cannot buy them. Why? Because investors are back in the market. The chosen method of payment for Lake Mary investors is Cash and in this market cash is KING. Many first time home buyers find themselves scrambling to take advantage of the $8000 first time home buyer tax credit, only to be meet with little inventory and heavy competition on those homes, generally beat out by an investor willing to pay cash for the home. Lowering the risk for most bank owned properties.
First Time Home Buyers are frustrated and with the scrabble comes the necessity to make multiple bids on different properties before one sticks. One client of mine had to submit 8 offers before we finally got her the house she wanted and won the deal. Unfortunately I think this created frenzy in the market is a very bad thing. There are many foreclosed homes not in our inventory that were held back because of the moratoriums and to "Not Flood the market" as most experts put it. However what they did was again create a false sense of supply and demand. As we come upon the Holiday season the unspoken moratoriums will be in place lowering our inventory even more.
If you are looking to purchase one of those lake mary homes there are some rules to keep in mind.
- Dont submit low ball offers on homes that just come on the market, Go with your highest and best off the bat, you normally only get the one shot
- You will need to make you deal look as good to the bank as possible,
- Dont ask for closing costs and if you must up your asking price even if it means going over asking, but becareful a too high of an offer and the bank will worry if the home will even appraise an even bigger issue in our market.
- Keep your time for inspections very low and dont ask for home warranties or other extras
Heather Joubran, GRI, NRBA, CLHMS, CDPE
RE/MAX Central Realty
www.HeatherTheRealtor.com (407) 810-6304
Specializing in First Time Home Buyers, Short Sales, Bank Owned Real Estate, REO & Foreclosure Properties
Servicing Real Estate Needs in: Lake Mary, Longwood, Winter Springs, Sanford, Altamonte Springs, Oviedo, Orlando, Downtown Orlando, Thornton Park, College Park, Winter Park, Maitland, Windermere, UCF, Lake Nona, Baldwin Park, Apopka, Ocoee & Winter Garden
Good words. Low ball offers seemed to be common because everyone thinks all sellers are desperate which is not true.
I listed a REO condo in Notting Hill in Lake Mary earlier this month. It got 13 offers within 3 days. Listed for $52,900 and sold for $65,000. All 13 offers were from cash buyers. There are a lot of people with cash out there.
Heather - cash is king today, I have seen lower cash offers trump higher offers but with financing contingencies.
This exact phenomenon you mention in orlando is happend down in Broward. I submitted 9 offers for an FHA client. What did they get? Yes, that's right, nada-zero. And that includes asking for no closing costs on about the last 4 or 5. You are right what this market needs is a balance between buyers and sellers. I guess the only way that will happen is for more foreclosures to come on the market or for sellers to raise asking prices. However the banks love listing low and collecting 15 offers. What to do??
Heather
Your insight is right on the money, great post.
Good luck and success.
Lou Ludwig
Great post! Lots of wisdom in your words. :)
It seems that in Lake Mary, Bank Owned Homes are a sellers market