Cape Coral Home Buyers. 5 Top Reasons to Buy Now

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Are you interested in buying a home in Cape Coral, but not sure if now is the right time? A quick story: I had a friend who was interested in buying a Cape Coral Home early in mid 2010, when the prices were ranging between $75,000 to $85,000 for the type of Cape Coral home he wanted. He recently called me and said he was ready to buy now because he had fixed a couple of minor things on his credit that needed to be taken care of before he applied for a loan, which actually would have been fine with an FHA loan that he could have qualified for.

To his dismay the prices for the type of home he wanted were no longer in the price range noted above and now we were looking at Single family homes in the $115,000 price range for a 3 Bedroom 2 Bath home in Cape Coral with a pool. Still not a not bad deal by any standard for an almost brand new home. Unfortunately just like people who want to buy a stock that is now at $115 a share when it was at $75 a share, you can’t go back in time. Here are 5 things I hear over and over again that prevent people from buying real estate in this market:

1.) Prices can go down even more. Now that the real estate crash is in recovery mode and the smart money from overseas has been snapping up real estate all over Florida and prices are still at the most affordable levels in decades. Every investment has risk whether it’s real estate or investing in a business or the stock market. How do you reduce your risk? First, do your research. Ask me to give you the sales trends for the neighborhood you are looking to buy in. Check out all the homes on the market that have sold in the past year to assure yourself of what you are buying.

2.) My coworkers/parents/friends say that if I buy real estate now that I will lose all my money and go bankrupt! Oh really, are you taking advice from financially successful people or just people that are scared to own a home. Certainly buying a house in Cape Coral, Fort Myers or anywhere else requires that you know the market and study the prices relative to what you are planning on buying. Advice sometimes can be nasty when it comes from those closest to you, but knowledge is power. The best way to respond to the questions you may get from friends and family is to know why you are buying a home and then know the reasons why this is a good deal. Make sure your real estate agent supplies you with all the pricing and neighborhood information you need. Many times paying near list price instead of submitting a low ball offer will ensure that you get the house you want especially if you are competing against other buyers at the same time.

3.) It’s better to rent because the maintenance of owning a house is expensive. There will always be some minor maintenance that needs to be done on a house. The logic is that the landlord has to pay it, but in actuality they will make you pay it through increased rents each year. Another thing that happens many times especially with the amount of foreclosures going on is, you may not know when your landlord is taking your rent and not paying her/his mortgage and then suddenly the house you are living in is in foreclosure and you have to vacate and lose your security deposit.

4.) How do I know I am getting a good mortgage interest rate? Right now interest rates for a 30 year loan are below 4% for a 30 year home loan! The best thing is shop around and find out what loan programs are available and get some competitive bids. You can visit Bankrate for up to date interest rate information. Great question. Maybe even more importantly, how do you know when you aren’t getting the best loan? First and foremost, do your home work about loans.

5.) I don’t know which real estate agent is the best one for me. My answer is to give a potential real estate agent that you are thinking of using an assignment. The assignment can be to give them a detailed request as to what type of home you are looking for, in what price range and whatever other criteria that you would want when you buy a house and then see if the agent goes above and beyond your request. A good agent will spend the time and effort to find out everything that needs to be known about your situation to help you find the best home for your needs, help you with guiding you to professionals in the field of mortgage finance, home inspections and home warranties. They will give you their full attention in getting you all the information needed on neighborhood information, links to websites about the city and and overall full analysis of why these areas are good buys.

So if you are interested in buying a home in Cape Coral or Fort Myers I can help guide you along the way from initial home search through home closing to make sure everything runs smoothly and address any concerns you have on buying a home in Florida.

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