Caroline at Home: Property - The beauty contest has started!

Property Trends
There has now been a definite shift in the market in my area! The latest homes that has come to market are really stunning compared to stock on the market three months ago, check my links at the end of this post. The agents, the few that are left, have now also come out of hibernation and are very active again. Three months ago the MLS open hours were attended by 3 to 6 agents, this past week we had an average of 9 agents per viewing and in some cases 20 agents attending. This means the buyers are now serious and the agents' phones have started ringing again.

If you have been thinking of investing in a second property or upgrading - now is the time!

Some tips when buying in a buyers' market

The timing in and out of the market is crucial for the investor. The homeowner who lives in the home for about 7 years will benefit from his/her patience but a buyers' market creates a golden opportunity to upgrade . If you are down-scaling you have to try and sell at the peak of a sellers' market.
The best homes are withdrawn in a buyers' market and re-appear when the market starts picking up again, I believe we are now entering this phase.
Location drives value. Buying a rundown property in the best location means that you will benefit from the surrounding area. It is a known fact that suburbs can demand a premium. A good example of is this over capitalised house in the list below, in a better area this house could fetch R890,000. The best example of this in my stock is this Florida home.
The market is ruled by what we term "imperfect communication". Buyers and sellers only see asking prices which are extensively marketed, but seldom see what is really negotiated. Ask your agent to show a CMA (Comparative Market Analysis) for the property you are interested in buying. This will give you a good feel for the "real prices" in the area.