A Great Time to Buy

As the fundamentals for buying or selling real estate in Fredericksburg, TX continue to evolve and the economy as a whole begins to slow, the following are 10 reasons why now (and the next 6-9 months) is a great time to buy real estate!

1. Selection, selection, selection. There are about 1,200 properties on the market in the Gillespie County MLS at the time of this posting. Regardless of the price range a buyer desires, there are plenty of real estate options from which to choose. Just a couple of years ago the resale inventory dropped below 900 units. A buyer was forced to make compromises if they were going to locate the property of their dreams. Today there is a great selection of homes, acreage home sites, city lots and large and small ranches. There are plenty of options in this market.
2. No Bidding Wars. In 2005/2006 clients were often faced with making offers on more than one home. They often lost the first one to the 'feeding frenzy' that existed. Other buyers bid the properties up to substantially narrow the gap between the asking price and the eventual selling price. There is little or no competitive bidding in this buyer's market.
3. You can make an offer. A few years ago when you made an offer, the only question was how close to the list price could the buyer reach in hopes of being the best offer on the table. Today the list price vs. sold price ratio is dropping steadily in most property classes. Today, a seller will not be insulted if you 'make them an offer they can't refuse'.
4. Patience is tolerated. In the hot seller's market that existed everything was rushed. Find a house before other buyers did. Hurry up and make the offer.  Today a buyer can take their time. Look at several properties and think about their decision for a few days.
5. Due diligence is welcomed. In this market a buyer is encouraged to obtain a home inspection, termite inspection, and appraisal.
6. There are plenty of specs and newer re-sales. In the not too distant past buyers had to 'play games' if they wanted a new home or lot. There were lotteries and waiting lists in order to obtain prime properties. Today, builders and other sellers have dozens of properties ready for immediate occupancy.
7. Repair requests are welcomed. After a buyer completes a home inspection, they are allowed to submit a repair request to the seller. In the past a seller might insist the home was sold 'as is'. Many times, there were back-up buyers waiting for a primary buyer to upset the seller whose home was increasing in value almost daily.
8. Few, if any investors. It is estimated that twenty five percent of all sales in 2005/2006 were to investors. These non-owner occupied buyer caused the market to inflate and affordability to decline. Mortgage fraud became commonplace on the national scene. It's a great time to buy without having to compete with hundreds of prospective landlords.
9. Location, location, location. Today's buyers can find homes closer to work. In the past buyers looked to Stonewall, Harper, Mason or Llano in order to find affordable homes. In this market, reasonably priced homes are within biking or walking distance to schools, shopping, and relatives.
10. Real Financing is available. The 'wink, wink' zero down, no doc, adjustable, sub-prime loans are gone. Fixed rates are back. FHA financing, first time homeowner bond programs, special loans for teachers, and police officers are back in business. It's a great time to buy real estate!