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Regional Multiple Listing Service.
Ten Reasons to Buy Real Estate
- Selection - There are over 75,000 homes for sale in the greater Central Florida area. No matter the price range, there are plenty of houses from which to choose. Just a couple years ago the inventory was so low that buyers were forced to make compromises if they were going to buy their "dream home." There are great inventories of single family homes, condos, and townhomes. Buyers can find large lots, small lots, and a lot that will accommodate toys such as boats or RV's. This market has yielded lots of options.
- On average, the value of a home nearly doubles every 10 years - That's a return most investments can't match. During the past three decades, home values have increased an average of 6.6% per year. And because most buyers invest on a small part of their home's total value in a down payment, their return on that initial investment is much greater, thanks to the power of leverage.
- The average homeowner today has 36 times the wealth of the average renter - Homeownership is key to climbing up the economic ladder. When you own a home, you're essentially paying yourself and building up equity. Not to mention the tax deductions only owners can claim, such as property taxes and mortgage interest.
- No More Bidding Wars - In 2005 buyers were routinely making offers on several homes at once in hopes that one of them would be accepted. Other buyers would bid properties up substantially from the original listing price. Homes were on the market only for days sometimes hours before full price offers came in. There is no competitive bidding in this buyer's market.
- Due diligence is welcomed - In this market a buyer is encouraged to obtain a home inspection, termite inspection, and appraisal. Many buyers in 2005 waived these contingencies in order gain an advantage with multiple offers.
- There are plenty of specs. - In the not too distant past buyer had to 'play games' if they wanted a new home. There were lotteries and waiting lists in order to obtain new construction. Some buyers slept in their cars in order to get to the head of the lines. R.L. Brown estimates that builders have thousands of specs ready for immediate occupancy.
- Repair requests are welcomed - After a buyer completes a home inspection, they are allowed to submit a repair request to the seller. In the past a seller might insist the home was sold 'as is'. Many times, there were back-up buyers waiting for a primary buyer to upset the seller whose home was increasing in value almost daily.
- Few, if any investors - It is estimated that one third of all sales in 2005 were to investors. These non-owner occupied buyers caused the market to inflate, price to soar, and affordability to decline. Mortgage fraud became commonplace. It's a great time to buy without having to compete with hundreds of prospective landlords.
- Location - With the monster supply, buyers today can find homes closer to work or in locations that were off limits a couple years ago In this market, reasonably priced homes are within biking or walking distance to schools, rapid transit lines, and relatives.
- Real Financing is available - Many of the shady practices of the subprimers are gone. More traditional options such as fixed rates, FHA financing, first time homeowner bond programs, special loans for teachers, and police officers are back in business. It's a great time to buy real estate!