i put in a offer for 175,000 on a place in florida that was excepted location is broward county zip 33322?

Question

i put in a offer for 175,000 on a place in florida that was excepted location is broward county zip 33322 this same place sold for ablout 215,000 to 220,000 in the prime market in 2005 , its a 2 bedroom 2 bath townhouse , that is in good shape , updated , do you think this is a fair price or should i wait to see what happen with the market , is it possiable that this townhouse could decline to 100,000 in 2 years time ,i hope i am making the right move , i am putting 20%down and i just feel even if it does go down over the next few year it beats renting and im sure in 10 years time it will climb in price again ,thank you

website like this get me real nervous , when it comes to buying

http://southfloridarealestatebubble.blogspot.com/

Answer 1

Ok. You have no question. You just wanted to vent?

Answer 2

You need to decide what it's worth to you and pay that amount, but not more.

Real estate is tricky because it's hard to make comparisons; each piece of property is unique. Also, the market is highly segmented, which means that each buyer and seller is unique. It's not like watching the stock market, where each share in a company is just like every other share in that company.

It's tempting to try to buy at the "bottom", but quite difficult. You need to to try and keep pride and ego out of it. The seller doesn't have to keep lowering his price. He can take it off the market; he can leave the price where it is and wait; he might get an offer near his asking price and then the property is gone. If you wait, you keep paying rent and there is no guarantee that you will get a better price later.

Real life story: A guy wanted $8000 per acre for some farm land with development potential. A would be developer was trying to talk him into selling for $7000. I offered $8000 and nailed down the deal. Now, this area is a hot real estate market and buildable land nearby is selling for $45000 and acre. Who cares about $1000 and acre more or less now? Think about it. How will you feel if the place is worth $600000 ten years from now and you didn't buy it?

Answer 3

It is a risk you take. Are you working with a Realtor? They should tell you what else has sold in the area so that you know what kind of market the house is in.

The market in alot of places today are in rough shape and the buyers are all out there looking for the deal of a lifetime. What they don't realize is that by offering $40,000 or more less they effectively have reduced the value of the property they are buying. So consider that when you purhcase.

Answer 4

I think your in the ball park on your offer. . . You seem to understand that you will have to wait years to see a return on your investment and as long as you are willing to wait you should be o.k. We have investment property (rentals) in Miami Dade . . . and have seen an across the board 20 to 30% drop in value over the last two years . . . like you, we have no immediate use for the equity so we feel o.k. about waiting five or six years. However, I do not see any risk in waiting . . . prices are much more likely to drop than rise . . . mort. resets start again in October (at their largest numbers) and we should have a pretty good idea of how many of the mort.'s will foreclose by the following Spring . . . My husband and I will resume buying in late spring . . . Good luck.

Answer 5

What city is it in? That sounds like a fair price to me. I'm from Florida and it's hard to find affordable homes in south florida so I think you got a great deal if it's not in a high-crime area. There are some really bad neighborhoods in the area too. Even if it is a high crime area it's a good deal you just may not get the good appreciation.

Answer 6

condos don't usually see the increases in value that homes do. That's not to say your condo will only decrease in value, it's just that the increases will probably be slower.
If you have good credit and are financially responsible, you can't go wrong by owning a home. If you're looking to stay in the condo for 10 years, of course it will have increased in value by then. Even if it doesn't, you're still not throwing away money in rent! Go for it!

Answer 7

I think that in the long view, you have made an excellent buy. The prediction is for the housing market to start to climb back in 2009. If you hang in, your property will surprise you.