Roman Pavlik

We’ve all heard the experts talk about how now is the best time to buy real estate. With newspaper headlines saying price of Miami Beach condos has dropped over thirty percent in the last three years. It’s also common to hear real estate pundits talking about how Brickell condos are now more affordable than ever. But how does the average homebuyer know they are getting a good deal on their real estate purchase? There are a couple things to measure when evaluating a property for cost efficiency. Here are the basic qualities a real estate investor should be focusing on:

The leverage a buyer has in a real estate deal allows them to buy a property for significantly less. Property that has been on the market for a while and has been priced very low to meet the demand is usually a safe bet. Other forms of leverage a buyer can have over a seller is: when the seller is making a quick sale, a bank owns the property or the property has slight maintenance issues. If a property has major maintenance issues, unless it’s being priced below dead costs, it’s probably not worth it.

The next thing a buyer should be thinking of is appreciation. Purchasing real estate should always be an investment. If a property shows a history of not appreciating in value over a long period of time properties that cost slightly more but have appreciated in value should be considered first. For instance, if a buyer is looking to purchase Miami area real estate and finds a good deal on a Miami Beach condo. But that condo has a history of not appreciating in value the wiser investment is to pay slightly more for the condo that will appreciate. In the long run the extra money will be a worthy investment.

As homeowners, we all try to maintain the places we come home to every day in the best possible shape and free of defects. Sometimes these repairs require too much money out of pocket, necessitating the need to put them off until time and money allow. When it comes to actually selling these homes in cities like Aventura however, these necessary fixes play a major role.

Research shows that over thirty percent of existing homes in the Miami real estate market have a serious defect of some kind. While most of these errors are more or less an afterthought during a time when prices for Miami Beach condos and Miami homes are unusually low, some of these defects can come at a considerable cost to buyers so they’re important to watch out for.

Among the common defects home inspectors come across are faulty roofing, accumulated moisture in the basement, and even insect infestations ranging from termites to ants. Air condition systems with faulty parts are also known to be a common problem even in high end property. Again these are all problems that can be remedied by taking the do-it-yourself approach or hiring a professional but the accompanying price tags can be considerable.

Take for example that aforementioned basement moisture. It may not seem like much in terms of getting it fixed but repairing a basement that’s all wet can cost over $4,000 to repair. And just the compressor component alone for a faulty air conditioning unit will require shelling out more than a thousand dollars.

Part of the buying process involves the optional home inspection report which means you’ll know about these defects before signing any contractually obligating paperwork so be sure to take these things into account if you’re seriously considering buying a home or condo with such problems.

While the country continues to conjure solutions towards resolving what some believe is an impending recession and a housing market that continues to get worse, others are convinced the country is already in a recession. True, the real estate market is still toughing it out and both Fannie Mae and Freddie Mac have been bailed out by the government but is the situation necessarily as bad as some are making it out to be?

Let’s take a look at the Gross Domestic Product (GDP) which actually yielded a considerably higher 3.3 percentile than the original 1.4 that was originally projected. A higher GDP spurs more economic activity and restores faith in consumers that the economy is in better shape, thus encouraging hesitant buyers that investing in a Miami Beach condo is a slightly safer, albeit still risky bet.

Although pending home sales in July didn’t post gains, statistics show certain parts of Florida (one of the hardest hit markets in the country) have shown notable home sales increases. On top of that, mortgage loans have dropped modestly and may perhaps drop further if the Fannie Mae and Freddie Mac bailout yields positive results.

Finally, it seems that what some of the more optimistic market enthusiasts predicted and encouraged appears to be coming true. Remote areas with record low home prices that went largely ignored during the real estate market heyday are gaining in popularity.

This isn’t to say that everything is perfect and Miami real estate is going to become the in demand market it once was overnight nor does it mean that there won’t be additional bumps in the road as the country recovers from the housing and mortgage fallout but it does lend more credibility that while the situation is certainly tough and could potentially get worse, it’s not quite the recession disaster some have predicted.