Although Gainesville’s home sales are higher than last year, sellers are not benefiting from the increase. Many purchasers are snatching up foreclosed properties, resulting in lower average home sale prices. In other words, realtors are selling more homes in the current market, but profits are lower compared to comparable houses sold last January. The sales increase appears to be driven by investors as opposed to new home purchasers.
Realtors believe that potential homeowners are having trouble purchasing homes because of more stringent credit requirements. Despite reduced interest rates and lower purchase prices, it is difficult for first-time home buyers to pass financing requirements. Additionally, investors who can pay cash are more attractive to sellers even if they must reduce the purchase price. A cash deal is more likely to result in a sale because financing is unnecessary.
On the bright side, investors are likely to renovate homes in the hopes of making profits later. Improving the condition of foreclosed homes may make them appealing to renters while increasing the value of the home. Eventually, this may lead to a sale. As the homes are renovated and attract more attention, business is likely to grow.
If you are moving to the Gainesville area and plan to start a new business, the Law Office of Knellinger, Jacobson & Associates can help you achieve your goals. Our legal professionals have years of experience assisting clients with business start-ups. We can help you to decide the best structure for your business, prepare any necessary contracts, and advise you regarding other issues that may contribute to the success of your new venture.