The largest percentages of real estate transaction occurring right now in the Palm Springs area are deals at $100,000 or less. For this type of money a buyer can purchase a small home or condo in a nice pool and tennis community. It’s an ever more crowded panacea of buyers trying to squeeze into the near bottom of the market today.
I say the near bottom, because sometimes I’ll come across home at $50,000 or less. But these are usually very beat up: windows broken, bathrooms stinking, holes in walls, kind of places that require lots and lots of rehab. But for nearer to $100k a prospective owner can have a pretty nice place that needs little or no refurbishing.
There are two factors worth being aware of when proceeding with these transactions:
* Some buyers think there are miles and miles to negotiate on rock bottom pricing. It’s kind of like bringing a friend to the dollar store and then having them negotiate with the checker, “Will you take 60 cents?” When in reality the prices on these properties have little or no room for negotiation. The banks have both already foreclosed on them and researched their price or the seller knows they are competing with foreclosures and short sales and have set their price down at the bottom. Otherwise, if it wasn’t so low, the buyer wouldn’t have looked at it in the first place.
* There are more and more people entering the real estate market from an investment or second home stand point all the time.
When these two factors are combined it makes for a very rapidly changing market and the best deals go quickly, often with several offers against them and more often than not, over the asking price. Now I imagine a few groans out there in readership land. You’re probably saying to yourself, “But everything I hear on the news tells me that the market is still dropping!”
To that I say, ‘On a national level, this is true,’ and I’m not saying more homes aren’t coming on the market. They are. What I am saying is you are probably not the only person left in the country with money left in their bank account and the good deals go fast. Everyone wants a deal, right? And most people who still have cash were pretty smart in however they were able to hold onto it, right? So it goes to reason that all these people are looking for the very best deals when they’re finally ready to part with some of it, right?
So the best deals go fast. And to get them you have to go faster and make strong offers. Don’t be wishy washy when you see something you like. Offer them what they are asking. It’s already at the bottom of the market. Do you want to miss out on something that is probably half or 40% of what it sold for a few years ago simply because you feel you should never pay asking price in real estate? That might feed your ego, but while you’re trying to negotiate somebody else is moving into your golf course view and firing up a barbecue in their new condo. And five or ten years from now when this market has turned around, they’ll be the ones saying, “I can’t believe the deal I made on this place back when the market was down.”