The Truth About Miami's Buyers Market

The Real Estate in Miami is experiencing a total "Buyers" market right now. A famous online encyclopedia describes a "Buyers Market" as "market relations between prospective sellers and buyers of a good. The supply and demand model determines price and quantity sold in the market."

Now that we have our fundamentals refreshed, let's evaluate the correct opportunities in the Miami marketplace.

In the residential end the current amazing deals lie in the "defaults". The most profitable type of default is when buyers are unable to follow-through with their previous commitments to close on a ready-to-occupy unit. This commonly happens in brand new buildings. The big advantage for the new buyer is that since there is an excess inventory of properties in the market, the developer is selling these properties at 2004-2005 prices minus the 15% deposit that comes from the previous buyers abandoned down payment!

The next set of opportunities is in the "Owner Motivated" arena. These types of properties were priced right BEFORE the market correction, and they had continued to be available in the market mostly due to the resilience of their owners to lower their prices to today standards. It has come to a point that many of these property owners have experienced either financial difficulty, market panic or they just want to benefit from the "Buyer's Market" as well and trade up to a larger, more expensive property. Whichever the case is, the new "priced to sell" inventories present themselves like a great opportunity to acquire prime Miami real estate in great locations at corrected prices. Motivated sellers are coming with great buyer's incentives, such as boats or cars included with the property and sometimes even with a positive rental income that pays for the expenses!

Is it better to buy or to wait a little longer?

Sometimes speculation leads to a better profit margin. But, speculation is also a risky business. A lot of investors could be speculating at the same time about the right moment to buy real estate in Miami. When the market turns around the buyer's frenzy will boom again. The buyer's incentives, most of the defaults, the "Motivated Owner", the "By Owner" financing at prime rates, etc. will be long gone. Most important, real estate is all about location and right now you can select the right location and the best property with ease. Unless of course, you are a pro and are willing to wait a little longer and fight with the pack of wolves for your dream property in Miami in the near future.

Comments? Gustavo Farfan is a Miami real estate specialist with Marka-Tech Associates.

He can be reach via e-mail gfarfan1@aol.com or via cell at 786-200-8700

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