Renting Is Now an Option
In a down market, buying a home is no longer a sure thing
Signs. That could change, however, as the home-buying market continues to cool. Rather than trying to sell into a glutted market, some condo builders are adding new inventory to the rental pool, instead. Frustrated home sellers, too, may take their houses off the for-sale market, "which could mean a lot more 'For Rent' signs popping up," notes author June Fletcher, who thinks rental prices could reverse course in areas where unsold home inventories are high.
Shanbron tested her landlord's resolve recently, asking him to go month to month when her one-year lease expires this month. "He was like falling all over himself to keep me here," she says.
She may have even more leverage with sellers. With unsold inventory up by more than 300 percent in Miami over the past year, "she can go out and really bargain them down," says Robert Bruss, author of The Small Investor's Guide to Real Estate.
One key to doing that is to look for homes whose sellers stand to come out ahead even if they have to sell at a reduced price. "Find out how much they paid, then negotiate up from there," says Bruss. "And if they paid what the place is worth today, then forget them because their threshold for pain is too low."
That strategy might well work with people like Buckley, who recently conceded the market's new reality to her friend for the first time. "She told me, 'If I take a hit, I'll still make money,'" Shanbron says of the last time she visited Buckley's apartment.
So is she ready to make Buckley an offer?
"No, not just yet."
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