Buyer’s Market With A Seller’s Twist: An Interesting Real Estate Concoction

Happy New Year!  Now what?

Is one of your resolutions to be a homeowner?  Whether you are a first timer, down-sizer, moving upper or empty nester…you get the idea… it’s time to get moving!  As a buyer, this may be the perfect time.

What is a Buyer’s Market with a Seller’s Twist?

Home prices are at an unbelievable low and with inventory high, this can be a great opportunity for a buyer.  This makes for a great Buyer’s Market.

Currently, of the homes that are sold, about 60% are foreclosures.  This means that the seller is most likely a bank, and has probably hired a company to represent them such as a property asset management company.

There is good news and bad news with buying a home that is bank owned.  The good news is you could possibly get a great deal with listing prices many times lower than market value.

Here’s the Seller’s Twist:  The bad news is that you MAY have competition and most likely, there will be a Seller’s Addendum that will be added to the contract and you the buyer will have to accept in order for the seller to accept your offer.  And, believe me, if you as the buyer won’t accept the Seller’s Addendum, there is probably a buyer behind you that will.  The most important thing is to know what the terms are, have your Realtor guide you through the process and minimize your risk as much as possible.

I believe that there are two main reasons the banks are pricing these properties so well.  One, banks are not in the business to hold property.  Due to this reason, they need to get these types of assets off of their books so they can loan funds.  Two, a home that is priced well should get more attention.  This most likely means multiple offers and what seller WOULDN’T like to choose the best, most qualified buyer at the best price for their property.

Currently, the most aggressive price point are homes under $200,000.  As the home price increases, there may be competition, but usually not as much.  So see, this is great news…but be ready to jump when you find a home that meets your needs.  Why?  You don’t want to deal with multiple offers, if you can help it.  You want to have the ball in your court as much as possible.  Of course, it’s like playing poker.  You don’t want the seller to see your hand.  Make sure your Realtor plays your hand to your advantage.

Three strategies to buying in today’s market:

1.  Find a great Realtor, one who is available, answers the phone, has great communication, proficient negotiator, knowledgeable, motivated, honest, integrity, hard-working, reliable and most importantly knows they work for YOU!

2.  Have your Realtor do an in-depth profile on what YOU are looking for and create an automatic search where you receive automatic emails.  When a home comes on the  market that meets your needs or a new price reduction has been made to your price comfortability level, you will be the first to know.

3.  Be ready to move!  Follow your Realtor’s advice on being prepared.  If you are looking at homes, you should have your finances  ready…whether that’s talking to a loan officer and getting prequalified or if you are paying cash, having proof of the funds and verifying the availability.

And remember, statistically, when spring rolls around, that time is considered the best time for a seller.  Although currently, it is still considered a buyer’s market, there most likely will be more competition as we move toward spring….ESPECIALLY with the April 30th deadline for the First Time Home Buyer Tax Credit (not just limited to First Time Home Buyers).

If you haven’t found the perfect Realtor for you, contact me!  Customer service is my #1 goal!

Testimonials can be provided upon request.

Jamie Sistek – “That Tickled Pink Girl”
REALTOR

Website: www.tickledpinkhomes.com

Jamie@TickledPinkHomes.com
480-451-1400 – Direct
480-734-1971 – Cell

“Tickled Pink Is What You’ll be;
My Customer Service Is The Key”