THE WAY TO MAKE MONEY ON A HOME IS TO BUY IT RIGHT.
Of course, finding a good deal involves using a number of indicators of value, understanding seller motivation, the condition of the home, the realtors ability to negotiate and much more.
I always find it disappointing to get a call from a nice family asking us to list their home if they are in trouble before they even start. We know before we even walk the home that the seller is going to lose money. If you fell in love with a shinny new home and over paid for it, you are not going to be happy when you sell it. A number of factors go into determining if a home is a good deal. I plan to post a series of tips on how to buy a home right.
One useful metric to study is "Months Of Inventory" for each community. A balanced market where both buyer and seller have equal leverage over the other is felt to be 6 months of inventory. Under 6 months of inventory is a seller's market and above six months of inventory is a buyer's market. To see what markets are buyer's markets study this chart. Beach communities seem to be better targets right now for deals. These communities are more sensitive to the economy since they typically are second homes or investor owned homes in the rental pool. Kiawah and Island Of Palms were hit hard by the banking melt down and have taken a while to come back.
Check back for additional insights into how to find a great deal.
Owner, Broker Associate
Prestige Real Estate Group