Real Estate Market Conditions
Cash is King!
Southwest Florida real estate market is rebounding as inventory declines in entry level price ranges.
The real estate market inventory in Southwest Florida is declining. It is difficult to find the same pricing and property inventory available as 6 months ago. There are more sellers with equity on the market, so foreclosures and short sales have become scarce.
With the lack of inventory more homes built in the toxic Chinese drywall years are coming on to the market. The original identifying odors of these homes has diminished, but the health risk remain. See my page on Chinese drywall for more information.
The current real estate market reflects appreciating property values with higher prices and declining inventory of resale homes and condominiums, especially in the entry level price ranges, so it is no longer a buyer’s market in most areas.
There are many cash buyers in Florida. This has made it difficult for buyers who finance to compete in negotiations. Cash buyers are overpaying for properties, which drives the prices up.
There are always many overpriced homes on the real estate market in Southwest Florida in all price ranges. This becomes a problem for buyers who are seeking financing who need the property to appraise to the purchase price. If the buyer does not have the additional money to put down when the property does not appraise properly for their loan terms, they will loose the opportunity to purchase the home unless they can convince the seller to drop the price to the appraised value. Florida Buyer Broker will provide comparable sale properties to help the buyer determine whether a property in overpriced prior to making an offer to purchase.
Because there are so many cash buyers in Southwest Florida, overpriced sellers are not usually motivated to lower their prices to reflect current real estate market values based upon the banks appraisal.
Real estate taxes in Florida are based on property values. As the price of property values go up, so do the real estate taxes. The State has passed legislation to make being a second home owner or investor more attractive by creating a 10% annual cap on the assessed value of the property. A primary home owner receives the Homestead Exemption of $50,000 and a 3% annual cap on real estate taxes.
Todays’ conventional financing rates are still very low. Rates have been historically low, in the 4+% range for 30 year fixed loans and even lower for 15 year or adjustable rate mortgages. It is still a great time to finance a property.
As your buyer broker I can provide you with up to date sales data from the REALTOR MLS in Lee and Collier County, including any specific building, neighborhood, development or vacant land you might have an interest in purchasing.
Smart buyers have been taking advantage the lower prices for several years by working with Florida Buyer Broker to find the best property at the lowest price and best terms. These buyers have been getting more “bang” for their buck in all price ranges in Southwest Florida!
When you are serious about buying. I am the buyer broker who is serious about giving you “rock solid facts.” I have over 30 years of experience working in the Southwest Florida real estate market. As your buyer broker, I must take care of your best interest throughout your real estate transaction. Your real estate transaction will be as smooth and worry free as possible. You will be confident that you have made the best buying decision possible for you and your family.
If you enjoy wonderful warm winters, sunshine, swimming, walking on the beach, boating, fishing, golfing, strolling through galleries and boutiques, the variety of activities for you and your family goes on and on . . . you belong in beautiful Southwest Florida.
Please feel free to call me, Beverly Howe, Exclusive Buyer Broker/Owner
ABR, GRI, TRC, CIPS, CNE, SRES, ACCRS
1031 Exchange Specialist
Toll Free at 1-800-283-7393 or 1-239-601-2013 anytime for additional information.
The Original
Florida Buyer Broker
Licensed to sell real estate in Southwest Florida since 1981
There is a reason why real estate is called real estate and why financial planners use the word “estate” planning. Like diamonds and gold you can touch it! It’s a real asset.
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