Talk of Tallahassee

Sick of the Horrible Market Forecast?

The National Association of Realtors (NAR) has predicted that home prices are expected to recover and new home-sales will rise early next year, (2008).

The overall inventory of homes will level as profit margins have come under pressure. Locally, I am seeing that most homeowners who have listed their homes with REALTORS® have adjusted prices with the help and advice of their real estate professionals. Homebuilders are limiting new construction, slowing down new inventory starts as well and concentrating on selling off existing inventory. The market in Tallahassee and the surrounding counties is adjusting, and I am seeing sales increase and buyers are shopping.

NAR predicts existing home sales and new home sales to increase in 2008! With the recent drop in the interest rates, it is a GREAT time for first time home-owners to jump into home ownership! Don’t take the risk of going at this alone… call a REALTOR to advise you, to research property prices. Call Me today! Debbie Kirkland 850-2121-0440.

New Home contractors and real estate agents are getting creative to reduce inventory supplies and to attract new home buyers. Some of these efforts include slashing prices and providing creative financing options to include rate buy-downs, and closing cost assistance.

As your REALTOR®, I have a certain responsibility to provide you with as many options to get you into a new home as possible. I constantly update my knowledge and consideration of market conditions, checking existing inventory status and home builder motivations for working with buyers every day. Networking with builders, new home sales representatives and lenders keeps me informed to alternative financial options when writing a contract for a new home.

New home builders throughout our community have struggled to adjust to fewer buyers than expected this year. Although somewhat protected from the National fall in prices and in buyer numbers, Tallahassee has a unique problem, lack of affordable, buildable lots and high property taxes, and not unlike the remainder of the State, rising insurance rates. While interest rates are still very affordable, these factors have resulted in higher payments and insurance hurdles that the average home-buyer is not able to overcome. Lowering sales prices,.. buying-down interest rates, offering no-payments for a period of time, etc. are just some of the ways REALTORS® are working with builders to off-set this increase in high monthly payments.

Many new home builders try to avoid lowering sales prices which result in angry prior home-buyers whose home values will be lowered, reducing equity and developer confidence. Instead, combinations of price reductions, paying for allowable closing costs, and interest rate buy-down reductions are more commonly used to keep more money in a buyer’s pocket not only at closing, but in their monthly budget.

Some new home builders dangle lavish incentives such as free Rolex watches.. new cars, and other valuable merchandise. Realtors in re-sale are offering each other bonuses and higher commission splits, truthfully, I don’t see these working very well either. In reality,..the monthly payment still seems to drive buyer interest, as well as the most amenities in comparison to the many other homes from which they have to choose.

It is a GREAT time to purchase a new home, a PERFECT time to work with a REALTOR® who knows how to negotiate with your new home builder. There is more inventory than ever before, and I have the knowledge to work incentives into a transaction and save you money!

If you or someone you know is considering a new home or even a re-sale, but are worried about finding down-payment or closing cost money, let me work through those details for you.

If you are planning to visit new home developments have a REALTOR® represent you, builder’s representatives work for the builder – this should be clearly pointed out to you at your visit. If you want someone on your side,.. call me at 850-212-0440. I will meet with you at these sites, and work with the salespersons to negotiate terms best suited to your needs!