After showing, selling, evaluating, and previewing hundreds of properties (either in person or online) I’ve witnessed FL condos take a HUGE loss in value over the past few years. That spells good news AND bad news depending on who you are. If you own a FL condo and bought it prior to 2009 then it’s probably bad news, but if you are looking to pick these properties up for a significant discount then this is definitely good news. There’s a few things that both sellers/condo owners, and buyers need to keep in mind…
To all the homeowners/sellers who currently own a condo in FL, specifically S. FL, you may have seen your property values plummet and feel a sense of hopelessness or discontent. I understand your pain and you are surely NOT alone. I have seen a rise in condo sales lately, albeit short sales and foreclosures, and this has helped keep prices stable in the Broward county area, and also in some parts of Miami-Dade and Palm Beach counties as well. Also the time it takes to sell these units has been reduced from months to weeks or even days. This is good news since we may be seeing the bottom of the market in our area for these properties.
Also keep in mind that if you are experiencing a financial hardship of some kind, and can no longer afford your home banks are currently very ready to work with you to either reduce payments, or sell the property for less than you owe them and take the loss. This does require you to understand the pros and cons of doing such (contact me with questions), but I’ve helped many people work things out with their lenders and get out form under a payment they could never afford AND for NO cost to the homeowners! The 2 options being mentioned are loan modifications and short sales and are designed to help hurting homeowners who owe more than their home is worth and can no longer afford the payments. If that sounds like your situation then find out the facts and see which may be an option for you.
For the FL condo Buyers out there, this is the time to either purchase a FL condo for personal or investment use at a fraction of what they used to cost and save a TON of money. You have to be smart though and in most cases (at least in South FL) you may need to have cash, or private financing since banks are wary of loaning on condos in FL these days. Many of these condos do NOT meet FHA loan requirements due to financial instability of the condo associations themselves, and conventional loans have similar guidelines that make them almost impossible to finance. With that said, condos in the area that used to sell for $210K you can now pick up in the $50-60K range. These are mostly short sales or foreclosures (REOs) and can be a great way to buy a 2nd home OR a rental property that actually cash flows every month!
FL condo Buyers need to realize that the market is teeming with investors paying cash, and some even offering above list price for these properties so it may take many swings to hit a home run. You need to be ready, know what you’re looking for, and know what you’re willing to pay BEFORE you waste a lot of time. The market (as of this writing) is like 2005, with bidding wars and multiple offers, but with dirt cheap prices! That should say it all.
The FL condo market taking such a HUGE hit like this has caused many people a loss of their homes and finances, but has also opened up an opportunity for those who are looking at buying these units for really low prices. FL condos are generally desirable and with the right property at the right price and in the right area, can be a great 2nd home or investment.
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