Real estate market conditions . . . Cash is King!
Southwest Florida real estate market is rebounding as the inventory declines!
The real estate market inventory in Southwest Florida has more sellers with significant 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 being offered for sale. The original identifying odors of these homes has diminished, but the health risk remain. The majority of Toxic Chinese Drywall homes have not been renovated. Nor has renovation proven to be effective remediation. See my page on Chinese drywall for more information.
The current real estate market reflects appreciating property values with higher prices and currently a large inventory of resale homes and condominiums in the mid level price ranges of 200 to 500 thousand. (Beware Chinese Drywall). Many builder are now competing for homebuyers, offering incentives which we do not usually see in the winter season.
Entry level properties (under 250 thousand) continue to be very competitive. Buyers should be completely pre-approved when real estate shopping. Cash buyers continue to dominate this price range of real estate transactions in many areas of Southwest Florida.
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, their is a wealth of variety of activities for you and your family to enjoy in Southwest Florida.
It is never to soon to start planning your real estate purchase in beautiful Southwest Florida. Call me now. I am friendly and easy to talk to. Let’s make your real estate dreams come true now.
Beverly Howe, Owner/Broker, ABR, GRI, TRC, CIPS, MCNE, SRES, ACCRS
1031 Exchange Specialist – Graduate Institute of Luxury Home Marketing – ILHM
Phone calls are the best way to contact me.
Please leave a message if I do not answer. I will return your call ASAP.
Toll Free: 1-800-283-7393 US & Canada
Best Local Direct: 1-239-601-2013
Beverly Howe 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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