Attention, Buyers: Take Advantage of Current Housing Market

Now that it’s official - and we’re living in a friendly buyer’s market - individuals seeking a Florida home loan should take notice. How does one take advantage of such an environment?

Reports state there are 33 percent more used homes on the market right now than there were a year ago. This means sellers must adapt, bring down prices, make Florida home loans affordable to potential buyers or else nothing will be sold.

Those wondering why the market is in its current shape can take a look at Florida home loan rates. The average 30-year fixed rate is up more than a point in the last year to around 6.7 percent.

“People are going to have to come to the reality that if they want to sell their house they’re going to have to lower the price,” said Ivy Zelman, a real estate analyst.

With a record inventory of unsold new homes for buyers to choose from, 75 percent of builders are now offering extravagant incentives to close a deal: everything from free swimming pools to first-class tickets to Hawaii are being offered.

So now that the you’re aware of the situation - now that you know the WHY behind the state of the Florida housing market - the question is WHAT to do about it. Here is some advice:

Take your time. Shop around. There’s no rush now to find financing on that Florida home loan. With more homes on the market you can afford to take your time. Shopping around gives you a feel for fair prices in different neighborhoods and ensures you can actually afford a house.

Hire a buyer’s agent. Make sure you hire a buyer’s agent who only represents you, one with no connection or obligation to the seller.

A builder cannot force its lender on you. If you’re buying a brand-new house, keep in mind, the builder cannot force you to go with its preferred lender. Get quotes from outside lenders, too. YOU are in charge of this home purchase.

“Free” incentives may cost you. If the builder is offering lots of free incentives, scrutinize the deal, because those expenses may be tucked in somewhere else, like in your closing costs.

Overall, don’t lose track of the leverage you now have. If you can only afford a certain amount on a Florida home loan, still make an offer. The financial ball is in your court, buyers.