Buyers Can Afford the Renovated House -Not the Renovations
At recent holiday gatherings, people not involved in the real estate business always want to know how is the real estate market? I tell them I have been busy. Buyers are out looking to buy.
The next comment is usually something along the lines of there are a lot of homes for sale in Canton!
They are surprised when I tell them that the inventory is lacking. The problem is that many of the homes on the market are in need of some serious updating (and I don't just mean painting the walls). Some need more than updating. There are very few well-priced, move-in ready homes for sale. The ones that come on the market move quickly.
Sellers do not seem to understand that. They either do not understand that their house is very outdated or think they have made a price adjustment for those renovations. And maybe they have.
However, while that is an option for some, it is not an option for many. Buyers can afford the renovated home but not the renovations.
For example, buyers looking in the $400,000 - $450,000 range (around the median price for single family homes in Canton MA) may have a decent downpayment saved up. Let's say 10%. They may still have enough cushion in savings to make them a great candidate for a mortgage in that price range. They may also have excellent jobs, great credit scores and more! They are solid candidates. The problem is that many of the $400,000 - $450,000 houses would be $500,000+ homes if their condition were different. And the same could be said for the $350,000+ homes.
You see, these buyers, who can afford the $400,000 mortgage, cannot afford the renovations necessary to make the necessary improvements. They do not have an extra $50,000 - $100,000 in savings to renovate, nor do they want to borrow above their means, even if they could get approved to do so.
So I have buyers looking to buy and in spite of the numbers of homes on the market, there is no appropriate inventory for them. Here's hoping that this Spring's home sellers are busy getting their homes move-in ready now! We willl be waiting for you - assuming the price is right.
Buyers who are getting ready to buy a home in 2012 or who are ready to buy a home now in Canton MA, Milton MA or elsewhere in Norfolk County should contact their Canton MA Buyer Broker for a free consultation so they will be ready to buy when the right home hits the market.
We do business in accordance with the Federal and Massachusetts Fair Housing Laws.
The content provided on this blog is presented or compiled for your convenience and is provided for informational purposes only. The information provided on this website should not be construed as offering legal, financial or other advice to be relied on by the reader to make or refrain from making any decision or to take any action.
Christine Smith is an Attorney and Exclusive Buyer Agent with over 25 years of experience in the real estate field.
(c) Copyright 2010-2015 Christine M. Smith, Attorney and Buyer Agent. All rights reserved.