The collapse of the real estate market in Tampa Bay has convinced almost all home buyers that they can find great deals. They are certain it’s a “Buyers Market” and in some ways and in some places it truly is. Prices are low, interest rates are extremely low, there are foreclosures available, and if you don’t mind waiting 4 to 6 months to get an approval on a short sale, you can get a pretty good deal.
But what if you want to live in a specific neighborhood or have certain criteria for the house you want to purchase? What if you don’t want to make an offer on a short sale and wait months and sometimes years to get a response from the bank? What if you don’t want to purchase a foreclosure because of the repairs needed to bring the house back to livable condition? What if there are few or no short sales or foreclosures in the neighborhoods you like?
For these buyers, the options can become very limited and they find out very quickly that it’s NOT a buyers market for them.
Don’t get me wrong, the prices in these neighborhoods have fallen just like the rest of the country. The problem is that even if the owner has the home priced at current market value, the buyer still feels that they should negotiate. Imagine their shock when seller after seller shoots down there low offer. It surprises them that not all home owners are desperate to sell and if they happen to own a home in a desired neighborhood where home inventory is limited, there’s no reason to take less than what the current market value is.
This is happening more and more often in the Tampa real estate market and the buyers are getting frustrated. The media reports of record foreclosures and desperate sellers has them thinking that every home seller is going to agree to take a really low offer so that they, the buyer, can get a fantastic deal.
A quick analysis of a few popular areas around Tampa Bay paints a very clear picture that buyers need to see:
There are 43 homes for sale in Carrollwood Village, 2 of which are foreclosures.
There are 85 homes for sale in Tampa Palms-number that are foreclosures, 3.
There are 183 waterfront homes for sale in South St. Petersburg. 2 of those are foreclosures.
Do you see the picture?
My advice to home buyers is to analyze the inventory of homes that are available in the neighborhoods they want to live in. Check what has sold recently. If you can’t steal a home in those neighborhoods and that is your goal, then adjust your criteria.
But if you have to have that certain home in that specific neighborhood, you may have to adjust your thinking. There are a lot of foreclosures and short sales in Tampa and surrounding communities, but there may be very few in the area you want to live.