Will April flowers bring May showers for Florida real estate sales? While some U.S. economists are still singing doom and gloom when it comes to the real estate market, TODAY show contributor and real estate mogul Barbara Corcoran sees some positive signs for prospective buyers and sellers, South Florida Law Blog shares this optimistic outlook.
During a recent appearance on the Today Show, Corcoran talked about her optimism, and why she thinks the spring season could be a great time to buy that dream home.
She sternly disagrees with some economists opinions that real estate prices will fall another 15 to 20 percent. Well, the jury is still out on that one, but let’s look at her glass half full.
“I think they’re dead wrong,” she told host Matt Lauer, “If you actually look at all the major markets in the U.S., more than half have already come off the bottom and prices are rising.”
For buyers who are thinking of playing the waiting game hoping for lower home prices, Corcoran says don’t. While interest rates are below 5% now, she feels with the anticipated demise of Fannie Mae and Freddie Mac, they won’t stay that low for long.
The reality is, prices will likely not increase for years considering about nine months of shadow inventory that the banks must still unload! In fact, if the banks did not manage the inventory prices would indeed still be dropping.
Tips for buying and selling in today’s competitive spring market
- Buyers have tremendous negotiating power right now, so rather than stay on the side lines strike while the iron is hot.
- If you’ve got the stones for it, you should bid low and play hardball during negotiations
- Buyers can also ask for, and often get, lots of extras included with their homes
- Sellers should price ahead of the market to get the best chance of completing that sale.
- If prices are still falling in your area, price your house 5% lower than what the last similar house in your neighborhood sold for.
- And if you are fortunate enough to be in a market where prices are going up, price it in the other direction
- The best person to be right now is the seller trying to upgrade to a better neighborhood or school district. What you lose on the sale will more than be recouped on your next home purchase, she said.
“You might take 10% less on your house and resent it, but you’re going to get a 10% discount on the next house and you’re going to be ahead of the game,” says Corcoran.
Lastly, a better indicator of how the real estate market is doing is the amount of open houses taking place, Corcoran said. While these homes won’t show up as sales for several months, the amount of homes garnering interest from buyers will give you great insight into the local market.
If you’re ready to take her advice and trade up to that better home, we are here to help you. Since 1994 Weston Title has been helping Florida homebuyers with real estate closings, title and escrow services.