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January 14th, 2010 8:39 AM by David W. Welch
Last year started with a lot of activity. If I recall, I wrote 14 offers in January. The only problem with that is that I only got two of those deals to contract. Virtually all the activity centered around investors looking to pick up inexpensive condos. I think last year there was more uncertainty, even among the investors. They were jumping into the market, but many were writing offers below the bank's asking prices. As investors lost deal after deal in multiple offer situations they began to come in with stronger offers and greater success in contracting for these properties. For some people the learning curve was longer than others. My observation is that investors are pricing in about an eight percent return on their investment.
Today, there is still a lot of activity. The big difference is that the investors I am working with are jumping on new listings faster, and making their best offer up front on the good deals that are out there. I think part of that change is experience, and part is a greater confidence in the values and returns on properties they have already purchased. The other big change in my activity is that I am working with a lot more first and second home buyers than investors now. This year's activity is turning into a lot more executed contracts and should lead to closed sales. I will take six contracts over 14 offers any day. Two more offers look like they may be accepted, that brings the count to eight and it is only January 14th. Happy birthday Mom! Two are closed, inspections are done on two and three more are expected to close this month. If any body doubts that 2010 is going to be better, I don't want to hear it. My 2010 is going to be great.
Orlando Real Estate, David Welch Real Estate Optimist, As Seen on HGTV's House Hunters