Hi folks. Secret (RE) Agent here again with more juicy real estate bites for you.
SO, where do you find the best deals around the slope? Anyone?
Hint 1: Econ 101.
Hint #2: Supply and Demand.
Any
guesses? Anyone? Bueller? Saaaaay CONDO! Good! (I've watched way too
much Dora). Everyone has seen all those new condo buildings sprouting
like weeds around the Slope. And beyond. And now there's too much
inventory.
POOR UNFORTUNATE SOULS
Let's just say Joe
Developer started this whole venture when the sky was the limit and
prices were going nowhere but up. But in steps RISK. You see, there's a
lag between the time Joe decides to build from acquisition of land to
having plans created, then approved, then built, then approved again,
etc., to the time the building has been sold out. Two years would be a
good timeline. People used to buy off of floorplans. No more. Needless
to say, things have changed a *wee* bit since Joe decided to become a
condo mogul when he grew up. Poor Joe. Bad for him. Good for you. Why?
Cause you have options now, baby!
WALLFLOWERS
The worst thing
that can happen to any of us foolish enough to be in this business is
stagnation. No activity. It's no fun to sit there in a party dress with
a bowlful of punch and scads of ChexMix waiting for guests to arrive at
your party. You wait. And you wait. People might think about joining
the party. They may walk up to the door. But if the house ain't
rockin', they won't bother knockin'.
Nobody wants to be a
wallflower. And that includes developers (who wants to picture a 60
year old man in a party dress?!?). They're ready to party and they're
negotiating more than ever. Some are pressured by banks to hurry and
sell or be forced to (gasp!) turn rental. The days of buyers paying
transfer taxes are all but gone. Don't forget that tight FANNIE (Mae,
that is), who has increased lending restrictions on new condos to a
minimum of 70% sold. The buzzword of the day is rent-to-own (ok, that's
3 words). Many devs are not only considering, but promoting this. So,
friends, negotiate your little heart out and get yourself a new home!
It's win/win for everyone. Here's a little future trip for you:
Developer sells. –> You get a home at a fair price. –>Economy
stimulated. –> Country climbs out of recession. –> Obama
re-elected. –> Your property value increases etc., etc.
And the circle of life continues (Hey! Who invited the Lion King?).
'Til next week,
I remain your humble {secret} agent