Earlier today, a young couple called to ask me if now is a good time to buy a home in Boca Raton.
I told them that if they are really ready to purchase a Boca home, now is a very good time. However, I also said that if they find a home they like, they will have to act immediately and decisively. Otherwise it is likely to be gone by the following day.
Not all houses are perfect, but remedies are often simple.
I gave them an example that occurred earlier this week. A client and I were looking at Boca Raton homes in the $300-400,000 range on Saturday.
After we looked at 4 homes, he came to a decision about the second one of the morning. He decided he liked it and would like to purchase it. However, he wanted his wife to see it.
The house was in excellent condition. Although it was not perfectly suited for what they had in mind, I suggested simple, low cost remedies that would allow for minimal remodeling and give them what they wanted.
Use a video for an absent spouse. Use the inspection period.
I also suggested that we send a video of the home immediately. That way, his wife could get a feel for the house, even though she could not set foot in it.
He said he’d like her to view it in person, but she would not be able to get here until a week from Wednesday. I suggested a compromise: put the house under contract, exercise the 15 day inspection period, so that his wife could get here to see the home and we would not lose it to another buyer.
Put it under contract. Or lose it.
He suggested this to his wife, but she was hesitant. They did not make the offer. No surprise: the house was gone by Monday. The conclusion he came to is that it is useless to look without both spouses present. Homes in Boca Raton are moving too fast for hesitation. Either put it under contract or lose it.
Home prices are rising. Inventory is falling. Homes are hard to find.
With home prices in Boca Raton, Delray Beach, and Boynton Beach up almost 28%, and inventory down more than 40% from last year, finding that home to buy is a struggle.
If you’re looking for a Boca home under $300,000 and you don’t have a pile of cash, it is going to be very difficult to compete in today’s volatile home marketplace.
Cash buyers and investors are devouring these available homes with the enthusiasm of locusts in a wheat field.
And as these seemingly insatiable buyers continue to grab any available inventory, prices keep moving up, making it harder for first time buyers with limited budgets to find homes.
Investors can rent anything with a roof.
For investors, this is a great time to buy a home. You’ll find renters lined up, ready to sign a lease so their families have somewhere to live. Large numbers of these renters are first time buyers who gave up in despair.
After the renters move in and make this their home, it is very likely that your future buyers are now in place. The trick is to create a long term financing idea that’s good for both of you.
So, yes, it’s very good time to buy a Boca home if a) you are able to one you like and b) you already have the cash or the necessary financing to makes a purchase possible.
This seller’s market applies to every price range. Move fast.
This seller’s market encompasses all price ranges: While luxury homes over $1 million may not be increasing in cost, they are firmly holding on to their price. The days of 20% discounts on Boca Raton luxury homes and Boca Raton waterfront homes have disappeared. In today’s hot market, seller concessions on homes over $1 million are typically averaging 10% or less.
When it comes to lower priced homes, Boca Raton buyers are paying full price or even above it, usually in cash.
Most important in today’s tough market, don’t hesitate with your offer. Appealing properties are selling within a week or less because demand has dwarfed supply.
Marc Jablon, The Jablon Team
RE/MAX Complete Solutions