Buying; What Do you need to Spend?
Your Home Budget has to Match Your Wants
Orlandos Market for homes is complex.
I received a call yesterday from a very nice buyer wanting to relocate to Orlando. Sounds good, who does not want to live in Orlando.
Orlando is truly reinventing itself and its a great place to live!
The buyer politely gave me a very long list of “wants” for her home purchase. She told me that she is prequalified with no debt, has high salary, and excellent credit. Because she wants to pay off this home within 5 years she wants to keep the purchase price under $130,000.
This price range put her in a condo, where financing can be nearly impossible, and availability is limited. Since she had to have a pool and a one story, a condo would not work anyway. She was not interested in single family heavy fixer upper either.
Despite her strong qualifications, unfortunately I could not help her.
Orlandos Market has rebounded
Orlandos market for real estate was the first to crash during the real estate bust, but it was also the first to rebound. Home prices have increased 76% since 2011.
In addition, short sales and bank foreclosures are now only a very small percentage of our market. Traditional Sales and New Construction are dominating Central Florida. Orlandos market is in high demand.
What do buyers really need to spend?
I read an article today in the Orlando Sentinel about Orlandos home buyer competition. It reported the median price of a home is $205,000. This covers a large geographical areas with different price levels and not a true representation of the real cost of a quality home.
I found that to get into an entry level quality home regardless of area or home expectations a buyers needs to add $50,000 to the median price. So, home buyers looking to buy a single home now should be looking at $250,000 or higher.
Home Buyer Competition is Real
Orlandos market condition has an extremely low supply of quality homes which pushes up the price. Home buyers all gravitate to quality homes, and multiple offers are common. Smart home buyers will prepare themselves on how to win a bidding war.
Buyers Broker of Florida specializes in only home buying and can represent buyers throughout the tranasaction 407-539-1053. Sign up to receive properties by email: Email Update Signup