How Buyers Should View Distressed Property Opportunities
The buzz about all the distressed property for sale in Tallahassee makes it seem like we're in the busy months of Spring instead of the dead of Winter.
Yesterday's blog about the new trend in the Tallahassee MLS raised a few questions from our readers about buying now versus waiting for next year.
Will The Distressed Property Deals Be Around Much Longer?
Much as I would love to tell you "Now is the time to buy!," the fact is there will be plenty of great deals on distressed property for quite some time in Tallahassee.
Home values will continue to fall, but that does not necessarily mean a foreclosure tomorrow will be cheaper than a foreclosure today. It just means that overall housing market values (including arms length homes) are declining.
My calculations show that we have enough distressed properties to last at least three more years, so to answer the question of buying now versus waiting is easy ...
Cash Buyers Need Not Hurry To Buy Distressed Property Right Now
If you are buying a home and paying cash, you have the luxury to sit back and be very, very picky.
But if you plan on financing your distressed property purchase, you are likely looking at rising interest rates in the near future. And rising rates will increase your cost of ownership far more significantly than another few percentage points of depreciation in the market.
So the prudent distressed property buyer should figure out one's personal financial situation before deciding whether or not to jump into the market right away.
A great solution for people who plan on financing their distressed property purchase is to come in and meet with us during the holidays, but not to look at the houses for sale, but instead to put together an acquisition strategy and timeline. We are even helping people who have plans that range beyond 12 months!
So don't just sit around watching bad football games, drop us a note and schedule a time to target your very own distressed property purchase.