Many think its a buyer's market....and it is. But there are exceptions. If you are a seller trying to sell your home in this market, and you have enough equity in your home to do so at current market values, you're well aware of the foreclosures and short sale's you'll have to compete with. These homes are vacant and easy to show, though not staged. But a buyer's perception of the word "foreclosure" means to them that they're getting a deal. So while your home may be priced the same as a foreclosure, the foreclosure usually gets the most attention. The buyer's agent knows that the bank that owns the property has no emotional ties to that home. If a buyer comes in with a lower offer, its all about the math for the bank. The bank does not care that new hardwood floors were installed just a year ago or the kitchen has been updated and how can they sell without recouping that cost.....not even a thought to the bank. Right now banks are losing $$ on most foreclosures and short sales.
But here's the latest thing....foreclosure/short sale homes priced below $130,000 are going under contract so fast it will give you whiplash! There are so many buyers that can qualify for homes in that price range and there definitely is not a surplus of homes in good condition in that price range. Many buyers unaware of this trend start out thinking it'll be a piece of cake to find a great deal in their price range, that the 4 bedroom basement home that was reduced to $110,000 on Monday morning will still be available Monday night. Not always the case, and buyers learn the hard way. And it's definitely frustrating. It is definitely a "seller's" market in this price range, but in this case, the sellers are not benefiting. The bank is losing on a foreclosure and a homeowner selling by short sale gains $0 from the sale. So buyers must be prepared! Here are a few tips to help you get the best deal under contract:
- Know what you need: You must know exactly what you need/want in a home when you are dealing with this price range BEFORE you go shopping. You will not have time to think about it or compare;
- Act quickly: You must be prepared to act quickly once you find it. All decision making parties should be present at all showings. There will not be enough time for one buyer to see the home and then the co-buyer take a look at a later time to make a decision the next day....the home will be under contract by the time you get around to deciding;
- Be prepared for rehab work: The best deals come from homes that may need some work. If you are in a position to, or can do some of the work yourself, focus on homes that needs a little TLC. The homes in move-in condition in this price range WILL have a LOT of competition;
- Search for new listings only: The key here is to have your agent search their MLS system. Many real estate web sites get their info from the local realtor MLS system which sometimes will update their info 24 hours after data is entered in the the local MLS system. Therefore you may see a listing as active, which may be under contract;
- Be patient: Know that the listing agents cannot update the listing status fast enough. Even when your agent has a property that is showing available, it may sometimes be under contract because the listing agent has not had a chance to update the status. Let your agent do his/her work by contacting the listing agent to find the true status of the listing.
Hopefully this information will be helpful to you when purchasing your home. Also, don't forget about HUD foreclosures which are great deals. HUD is even offering buyers an opportunity to buy a home with just $100 down. Visit our site at http://www.100downforeclosure.com/ to find out the details about this program and to view HUD listings.
