Henri Frank Group Remax Preferred | Fort Lauderdale Miami Realtors
Real Estate Buyers Warning: Sellers Market in 2013?
written by: Frank Vigliotti, Realtor, CDPE, Blogger, PA
The Henri Frank Group brokered by RE/MAX Preferred in Fort Lauderdale, Wilton Manors, Plantation and Hillsboro Beach serves buyers, sellers, renters and investors throughout the South Florida region of the USA. Clearly the real estate market is showing signs of recovery all across the nation. Here in South Florida, including Broward County, Palm Beach County and Miami-Dade County, the real estate market was one of the first to be effected by the mortgage crisis.
We believe our market here in South Florida began to see a strain from the market high of 2004-2005 once the hurricane Wilma hit the region in late 2005. Homes in Fort Lauderdale, condominiums in Wilton Manors and in Plantation began to stabilize and in some cases a 3%-5% decrease in values. Some would say it was a market correction that was needed in Florida. The 300%-400% increases couldn’t continue to sustain in the area. Unfortunately, shortly after the market correction came the mortgage meltdown. The time between the start of the market correction and the mortgage meltdown, because buyers weren’t seeing net gains that they enjoyed for three to four years, began to slow down on purchasing. It became harder for the buyers to assign preconstruction contracts which yielded high gains quickly with small cash investments.
Realtors, mortgage brokers and other professionals in the real estate business began to be effected by this downward trend while the northeast and northwest continued to see gains in the values of their real estate. By the time October 2007 came and then, President Bush declared an official mortgage crisis and economic recession in the USA, Florida had been experiencing the symptoms for more than a year prior.
Henri Vezie and Frank Vigliotti, founders and principals of the Henri Frank Group were in the real estate market and recall there first client who qualified for a short sale was in late 2006. From that time until 2009 was month over month declines in the market. Starting in late 2010 the Group began to see more movement of inventory and slight gains in values. By 2011, appraisers began to change the market condition question on each appraisal from a declining market to a stable market. Remembering when the Fannie Mae Appraisal was at a increasing market to stable market, when it was downgraded to declining. It was clear the market had started to hit bottom and this bottom would be long, deep and dramatic declines in value would exist.
The good news heading into 2013, the market continues to recover. Here in South Florida, USA, the values are climbing consistently month after month. The amount of inventory, remembering back when in 2009 there was 29-months of homes to sell, is now less than 6-months and declining. And with these market conditions, comes some news for the buyers.
Prospective home buyers across here in Fort Lauderdale, Miami Beach, Boca Raton and all across the United States have begun to experience an element they haven’t witnessed in the housing market for quite some time, opposition from contending buyers. With homes more affordable now than they’ve been in some time and record-low mortgage rates, potential home buyers are ready to make that investment. These eager buyers have realized that there are many more buyers searching for bargain properties.
This influx in the amount of buyers has caused bidding wars to become a more casual occurrence, especially since the inventory of homes for sale on the market has tightened nationwide. Jimmy Cunningham, a real estate agent of the Henri Frank Group at RE/MAX Preferred believes that buyers have to shift their perceptions regarding market conditions. He also went on to state that many potential buyers believe that they can still get away with making low offers and seeking financial assistance with closing costs as well. With such a competitive market, buyers must be ready to make a practical offer and be capable of covering their own closing costs.
First-time buyers and inexperienced buyers in search of properties in this competitive market can get assistance from real estate professionals in order to prepare themselves. Buyers are now being required to undergo a mortgage-approval process and acquire financing prior to searching for the ideal home. This will essentially put the buyers in a better position than other potential buyers who may be interested in the same property as other buyers.
Lynn Whitefall, Mortgage Originator and Branch Manager at GoldStar Financial relayed how significant it is for buyers to locate reliable financing and the ability for her to supply the buyers with an approval letter prior to them locating the home they have intentions of buying. The updated approval letter should embody the street address of the home and the precise amount of the offer in order to seal the deal. Lynn Whitefall also indicated that it’s extremely important that buyers have their finances in order to cover the down payment and deposit on the spot if needed. Some buyers have a tendency of relying on funds tied into stocks or checking accounts that may take some time to withdraw. Lenders recommend that buyers have the appropriate funds readily available in one account in order to speed up the closing process.
Dedicated and proactive buyers may have the opportunity to get a home inspection completed prior to making an offer which may eliminate the home inspection process after offer. Some real estate agents have begun to correlate the cutthroat housing market to the act of dating. Standing out from the crowd in this competitive housing market takes charm and thoroughness.
“You need to win on both looks and personality,” says Robin Passman, a Realtor with the Henri Frank Group at RE/MAX Preferred in Fort Lauderdale, Fl. “The personality part is the fundamental issue of financing and down payment, but the looks part doesn’t cost you anything. It can be as simple as making sure there are no mistakes in your contract. If there are mistakes or missing items in your offer, you don’t look like a serious buyer.”
Buyers need an aggressive, knowledgeable, full time Realtor to represent them. The Realtors of the Henri Frank Group all have these skills and have been successful in closing nearly 100-transactions in the past 12-months. Be sure if you want to succeed at purchasing a home in Fort Lauderdale, condominium in Miami or townhome in Wilton Manors, select a Realtor who can represent you and get you the property you want to buy. It’s 2013 and your Buyers Agent must understand the “new” Real Estate Market and how to accomplish the goal, “purchasing a home or condominium.”
Contact the HENRI FRANK GROUP at REMAX Preferred if you are interested in buying a home in South Florida. We service all of the area with specialties in Single Family Homes, Multi-family Homes and Condominiums in Wilton Manors, Single Family Homes in Oakland Park, Townhomes in Fort Lauderdale and Villas in the area. We are also located in Hillsboro Shores and Plantation, Florida to best serve our buyers of homes and sellers of their properties.
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