Though perhaps at the expense of financial hardship for many, this market is a Buyer's dream. With the current government Buyer incentive, 1st time home buyers have their pick of the crop and are making AMAZING investments with instant equity.For those who already own a home, this is not the ideal time to move and upgrade for everyone. That being said, in the case where a home owner has plenty of equity, all projects are complete, the home shows well, and the location is decent... this is an AMAZING time to upgrade to a larger and/or more expensive home.
The deals out there are endless. I try to convey this phenomena to clients and friends everyday, but it's almost impossible to illustrate the extent of the percentage of listing price markdown as compared to 5-10 years ago. Daily, as I pull and tour listings city wide... I STILL can't believe some of the current prices. For example, I showed this listing to a Buyer almost a year ago:
This 4 bedroom, 2.5 bath, 3000 sq foot property is in the Brook Hill subdivision in Chesterfield (Parkway West school district)...
3- 5 years ago, listings in Brook Hill were comfortably selling above 850K. Homes in more ideal locations within the neighborhood and/or with higher end upgrades, sold for as much as a million within weeks.
This subdivision is extremely desirable among those in West County and is the home to numerous local sports players and community business leaders / executives. Homes in Brook Hill are currently listing between 630K and 850K, and selling between 530K and 800K.
Per the current MLS listing, this particular Seller is a corporate transferee for Anheuser-Busch. As part of the relocation package, AB apparently purchased the property from the Seller back in August of 2008 for $585,000 (after several standard relocation appraisals determining that was the current market value). The property's current county tax assessment stands at $565,300. With a WHOPPING 494 days on market, this home is currently LISTED for $499,000.
WOW.
Now granted, this property boasts inexpensive finishes, that are NOT neighborhood norm or standard. The stock oak cabinets, laminate counter tops, and other discount store finishes are possibly the reason why this home hasn't budged, even at the current discounted price. That being said, the Buyer EASILY has over 200K in equity once the market rebounds. PLENTY of equity to make updates and renovations and STILL turn a HUGE profit.
With the current amount of days on market, the future Buyer will likely negotiate a purchase price significantly below the current list price. Meaning, the property will more than likely sell for less than the bulk of the neighborhood paid to BUILD their home, over 12 years ago.
Unbelievable. More so as this home is one of thousands, city wide.
