Christina Rordam: What is a "Great Deal" in today's market?

“I’m in the market for a new home, but only if it’s a great deal!” If I had a penny for every time I’ve heard this I’d be a millionaire a few times over! Of course we all want a really great deal. But what exactly does that look like in today’s real estate market in Central Florida?

First things first: it’s currently a sellers’ market. What that means in simplistic terms is this: there is more demand and more buyers than there are sellers and supply. Sellers have the upper hand. Whether the home is move-in ready, clean and remodeled or a fixer-upper with long-term potential via repair or renovation, homes are selling in Orlando and Central Florida and at a healthy clip. Gone are the days of four-bed two-bath pool homes in perfect shape for under $100,000. I get calls weekly asking me for that exact property. As an old mentor of mine once said, if I knew where that was I’d buy it myself!

All jokes aside, Orlando, Winter Park, Baldwin Park and Seminole County are attractive places to live and we aren’t the only ones to have figured that out. Multiple offer situations on desirable properties are not uncommon and the amount of time a home spends on the market is getting shorter. So how exactly do buyers get the infamous “Great Deal” with those types of market conditions? How does one achieve Great Deal Status?

I think we can become fixated as consumers on getting the upper hand and overly concerned with the price of a home, sometimes to the point of obsessing over a few thousand dollars in what is likely a purchase totaling several hundred thousand dollars. That isn’t to say price isn’t important, it is! It’s key to achieving the Great Deal. But try not to fixate on, say, not paying list price. What if the list price is fair and the area is increasing in value? If you can see yourself in a growing equity position then that is definitely a great deal. It’s crucial not to overpay so just look at neighborhood values then make a decision and move on. Many of my listings go under contract almost immediately after hitting the market. Don’t lose out on the right home for your family because you didn’t get that extra $1,000 off the price; you would barely even notice it in your monthly payment.

Is the location what you want and an area you’d feel comfortable investing and/or living in? You know the drill: location. If it’s a hot area with a history of popularity, or a suburb with great schools chances of medaling in the Great Deal Olympics are strong. The force is with you here! You can change your cabinets but not your lot, so keep that in mind when searching. Paying a fair price in a super hot neighborhood equates to a great deal in today’s climate, especially when there are likely other buyers eyeing the prize.

What are the terms and conditions? Do they fit your desired timeline and goals for the purchase? If you need to move immediately and there are tenants in place for the next six months then maybe this really isn’t a great deal for you. You’d have to find temporary housing potentially and move your stuff twice. Even if you get a fab price you’d have to weigh pros and cons. Saving on the price may not be worth it if you have many more times the relocation costs to contend with, not to mention the value of yours and your family’s time! How do the terms of the deal fit into the puzzle pieces of your life and situation? If your lease isn’t up for two months and the seller will allow a 60 close, or if you really want the home but don’t want to pay all your closing costs and the seller is willing to do it then it probably is a great deal for you.

Look, everyone wants to get a home under market value. Does it happen? Yes! But that isn’t the only component in finding your Great Deal. With the market continuing its steady recovery think big picture and long term. It’s almost always better to pay your own mortgage than someone else’s. To all those fence sitters: grab a piece of the real estate pie now; you can always upgrade later and build equity while you wait for the next Great Deal.

Christina Rordam is a licensed Realtor and Central Florida native with 10 years of experience helping Orlando-area buyers and sellers achieve their real estate dreams. She is a member of the Orlando Regional Realtor Association’s Top Producer Club and holds the CDPE, CNE and CSP designations. Contact Christina at 407-928-8294 or [email protected] and view homes online at ChristinaSellsOrlando.com