BUYING ~ WHEN PRICES ARE FALLING ~ Five Simple Steps

DECLINING MARKETS PROVIDE GREAT BUYING OPPORTUNITIES FOR SMART INVESTORS. Right now, buyers are picking up condos in Myrtle Beach at discount prices.

FIRST QUARTER MLS STATS confirm the condo market decline – high inventories (9000 units listed) and slow sales (down 41% yr over yr) are resulting in lower prices. The market is out of balance – there are 10 times as many sellers as there are buyers.

Don’t get me wrong, it’s not a “fire sale” by any means – but prices do continue to drift lower. And occasionally, a motivated seller unloads a unit they’ve held for a year or two at, or close to, its preconstruction price.

Analysts agree that it will take a while for the market to right itself. How long? No one knows – probably a year or so. Most likely the market will stabilize around the preconstruction prices of a few years ago. Most owners would rather hold onto their units than take big losses.

HOW TO FIND GREAT BUYS IN A FALLING MARKET ~ Five Simple Steps

1. Know your PURPOSE – What you are looking for? What are your criteria? If you don’t know what you’re looking for, you won’t recognize it when you see it. Here are some things to think about:

• Personal Use vs. Investment – If you want to use it yourself, then location, furnishings, amenities, etc. make a difference. You want a resort / building that suits your tastes… that you and your family will enjoy. If you’re looking strictly for an investment, then it’s all about the numbers… price, rental income, fees, etc.

• Oceanfront vs. Golf / Other – The Grand Strand offers a wide variety of condo choices. If you expect to use it yourself, it gets down to your preferred lifestyle – are you a beach or golf person? As an investment, where do you think there’s more appreciation potential – oceanfront / golf / other condos?

• Price Range – How much money do you want to invest in Myrtle Beach condos? What’s your price range? Your price range will determine the location, size, and number of condos available for consideration.

2. Line up your FINANCES – How are you going to pay for it? Cash is “king” in this market and will give you considerable bargaining power. The change in lending requirements for “condotels” and the shake-up in the sub-prime lending market has had ripple effects in Myrtle Beach… lenders are more cautious.

If you want to finance your purchase, select a lender in advance and get pre-approved for the maximum amount you want to pay. It will strengthen your offer. If you don’t already have a lender, I can help you find one. Sellers are more willing to make concessions if they know that the contract will actually close.

3. Find out what’s AVAILABLE – Which units fit your criteria? With 9000 units on the market, you will most likely have a lot of choices. As your buyer agent, I can do a comparative market analysis for you to help you narrow your search.

Look for the very best units fitting your criteria. You’re looking for “best buys”, taking into consideration price, location, condition and rental value / cash flow. With patience, you should find several that suit your needs.

4. Determine sellers’ MOTIVATION – Only work with sellers who really want to sell. In today’s market, as your buyer agent, I can often find out that information for you.

Many sellers have the attitude, “If I can get my price, I’ll sell; if not, I won’t.” It’s often a waste of the buyer’s and agent’s time to work with them… unless the asking price is reasonable to begin with.

5. Make an OFFER - There’s no way to know what a seller will consider without making a written offer. The comparative market analysis (using actual sales figures) will help you determine the current market value.

The seller’s actual purchase price will very likely give you his / her bottom line. I can get that information for you from public records. There will be more negotiating room if they’re sitting on a capital gain.

Make reasonable offers and keep them simple… minimize contingencies.

PATIENCE AND PERSISTENCE PAY OFF

Finding great buys in a falling condo market is simple enough, but it takes patience and persistence. New listings are coming on the market all the time. I can alert you as soon as one fitting your criteria appears. Great buys don’t last all that long even in this slow market.

If you don’t see what you want right away, look again. If your offer is not accepted by one seller, try again with another. As your buyer agent, I can help you determine reasonable offer prices and help you negotiate the deal.

If you don’t already have a buyer agent, I’d be happy to help you find a great buy on a condo here in Myrtle Beach. Right now, it’s a buyer’s market… but it won’t last forever.

CALL ME, OR EMAIL ME

BARBARA CHARTIER, Century 21 Coastal Lifestyles
Cell: 843-902-0204 Toll Free: 800-568-9253
Email: Barbara.chartier@century21.com
Fax: 843-390-4008