South West Florida Real Estate News-North Port-Port Charlotte-Venice-Englewood-Punta Gorda

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WHAT DO BUYERS WANT?

In North Port, Florida the market so flooded with new homes that builders are cutting their own throats just to jump ship. All we can hope for right now is that the homes they are dumping at little or no profit will soon be sold so that the prices will normalize.  

It is going to make it difficult to get the appraisals for the homes bought last year with the new prices being considerably lower than 2005. The same home we sold last year for $258,000 is lucky to fetch $220,000. Investors a walking away from their commitments and leaving the builders with a lot of inventory.  

Last year, we were hard pressed to find any homes under $200,000. This year you can have your pick. Competition is fierce, and buyers are asking for more owner financing. Every house that is shown, the agent has the same feedback. "Well, you know there are a lot of choices out there, they are just going to keep looking for the most house for the least money."  

Upgrades don't impress the buyers as much as price. If they can get 200 or 300 more square feet for the same money, they don't care about paying for granite countertops. At least, that is our experience right now. With gas prices so high now, proximity to work had taken on major role. "How close is it to the interstate?" is often asked.  

Right now, the bells and whistles aren't selling here. They'd rather have an extra room.  

Comment balloon 6 commentsShannon Moore • August 13 2006 07:07PM

Comments

Alot of investors are walking away from their preconstruction homes which does amaze me. After all they can close, rent the unit out and wait a year or two. In many cases sure, they`ll be negative, but I do believe that in two years the market will come back, and the investor will rebound.

Too many Investors weren`t thinking they saw "Gold in dam darn hills" without realizing what an investment is. There are plenty investors now scooping up properties that are $40-$50K under appraised value.

Great time to be an "Investor"... 

Posted by Scott Daniels Florida Real Estate 2.0. Agents Earn 100% Commission. (Florida List For Less Realty, Inc. Broker/Owner. ) about 13 years ago
We have been in a strong buyers market for a while.  Buyers care about everything, but I think that condition is more important in our market than size.  Then they expect to seriously negotiate on price.
Posted by Maureen Francis & Dmitry Koublitsky, Coldwell Banker Weir Manuel (Coldwell Banker Weir Manuel) about 13 years ago

That's why some builders are offering lots of incentives rather than dropping their prices - it protects the previous buyers.

 As to rentals, there are so many on the market that rental prices are dropping daily - some of the flippers just can't afford to take money out of their pockets to wait for market stabilization.

Posted by Sharon Simms, St. Petersburg FL - CRS CIPS CLHMS RSPS (Coastal Properties Group International - Christie's International) about 13 years ago
Regardless, would you actually qualify them as true investors or speculators? Many of these so called investors were told that the market conditions change, keep money on the sidelines just to cover expenses for the first six months or so. Not ever home rents or sells fast, the investor should realize that.
Posted by Scott Daniels Florida Real Estate 2.0. Agents Earn 100% Commission. (Florida List For Less Realty, Inc. Broker/Owner. ) about 13 years ago

Investors in the past, had no idea about where the Real estate market was heading. They saw Dollar Bills and never realized that Real Estate is really a very conservative approach to investing. Now, faced with the fact that they can`t "Flip" a property, they panic.

Are some of the builders to blame for this insanity, the answer is "YES", I wouldn`t worry about how the builders deal with this over abundance of inventory, they`re creative, they do what it takes to sell off inventory. They have the original investors deposits which sometimes range from 10-20K.. They have plenty of room to play!

Posted by Omar Camejo (Florida List For Less Realty,Inc.) about 13 years ago

What i love about Real Estate and investing is

1- There is always a market for "buyers and sellers"

2- Investors will soon be out in force looking for major bargains, and believe me, they`ll find a few.

3- Florida Real Estate is in huge demand throughout the world!

Posted by William Seufert (Florida List For Less Realty, Inc.) about 13 years ago

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