There is not a problem with obtaining great available financing as long as the borrowers are qualified. Every day, John Kemper Broker EPro Realty has pre-approved buyers hold off on making a competitive offer for several reasons; the house needs upgrading, the color is wrong, it’s too far from their job or children’s school, or it just doesn’t feel right. After they have seen several properties and my Realtor partners are ready to give up, Kemper likes to sit down with them and give them the “present real estate facts of life” speech.
1. Every day you wait to pull the trigger, prices are going up on all property, significantly. In most of our markets, a 10 – 20% increase over the last year alone.
2. Interest rates have gone up over the last month. Therefore, whatever they buy will cost them more money the longer they wait for the same property.
3. Every day they hold off on making an offer, property inventory gets slimmer, giving them less to choose from.
4. Most of the time, you only get one chance to make an aggressive offer. If you take too long, someone else will buy. Usually, there are multiple offers that the sellers are choosing from.
5. Buying real estate is now considered a great investment again. Prices in almost 90% of all markets nationwide grew at least 10% over the last year. The biggest gain since 2005. The idea of “house as nest egg” is making a comeback.
6. Houses, and all real estate, have the potential to generate cash flow. The value of a property is derived from cash flow, which is based on a variety of factors, from location to property type and tenant profile.
7. Thanks to leverage (still record low rates), a person who buys a house and rents it out will come out ahead of someone who invests the same amount of money in the stock market-especially at the point when the incoming rent covers maintenance outlays and helps pay off the mortgage. Going by historical data, by the time the owner retires, the house should be worth more than what equities would have returned. Plus, you’d already own your cash-flowing fixed income assets with which to retire.
Make an offer, buy the house. Make it your own perfect house. Waiting for “Mr. Right” to come along, does not work in today’s competitive real estate market. Now is the time to buy. Every day wasted is going to cost buyers money says Kemper.
John A Kemper Broker / Owner
Residential Property Manager
“Over 25 Years Selling S. Florida Real Estate”
954-558-4488 | Direct
EPro Realty & Management
7491 NW 4th St., Plantation, FL 33317
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954-306-2829 | Office