The Time Is Now

Dated: 10/17/2017

Views: 1183

I have recently been working with a buyer who was not sure if their family was ready to purchase. The reason: working on credit score and small bump in savings account to prepare for down payment.  At first, I let the reasoning go as acceptable.  However, after talking to a mortgage professional I have worked with before, I realize that the time is actually now.  Yes, raising a credit score in 15 – 20 days and saving an extra $10K in 30 days are huge obstacles.  What if that bar – credit score and down payment – was lower and completely reachable?  Why miss out on an opportunity to invest in yourself?

The South Florida market is still a place where your investment can have a return in less than a year.  With smart choices and a knowledgeable team backing you, purchasing a primary home can be a benefit and not a money pit.

Over the past year, I have helped my clients make money on their investment without them feeling like an investor.   For example, I have helped a family purchase their first home in Lake Worth. With persistence, we were under contract in 4 days and closed at $360K.  Over the next 11 months, the market has increased 7%. With moderate updated, the property easily can make $25K by the end of the year.

The market in all three counties has increased since last year.  However, the inventory has decreased which is driving the market prices to continually rise.  This would translate to a positive return on investment when you purchase.

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*Source: Broward Council Market Focus October 2, 2017

In addition, the timeframe for homes staying on the market has decreased.  Homes are selling 10.3% faster than last year.  Combined with a lower amount of homes coming on the market and homes going under agreement faster, the market is competitive for a buyer. 

The chart above references the 1 year difference (August 2016 compared to August 2017) in Broward County for single family homes.  The average price since last year has increased 15.8%.  Even if we take a lower percentage (conservative) return of half of that figure, if you purchased a home in 2016 for $300,000, it is worth $324,000 within 12 months. 

These figures have put away the fear of a burst housing bubble. This market increase is not substantial and sharp as to not sustain a healthy real estate market.  The price values have slowly upticked to control any erratic roller coaster values. This makes our current conditions prime for long term sustainability (low risk of housing crash). 

The opportunity is now for buyers to create a sensible investment.  With the opportunity there, those financing hurdles are still in the way.  This is not the case.  Mortgage lenders have been able to get a variety of options for consumers.  Why wait for financing? You might be surprised at the results of talking to a mortgage professional.  There are plenty of loan programs that only a mortgage lender can assist with. There is no one cookie-cutter approach; you are closer to capitalizing this real estate market now. There are a variety of mortgage products that a catered for individual’s financial background and wants.  We have access to professionals offering 100% financing, lower minimum credit score, variety of down payments (even gifted down payments), VA benefit packages and more. The time is now; do not miss out on investing in yourself.

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Angelo F. Terrizzi Jr.

I am a New England native, born and raised in the Boston area. Growing up, I was always involved with extra-curricular activities through school and church. I spent 30+ years in Business and later in ....

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