Sales Up, But Prices Down as Foreclosures Continue To Flood The Market

You have probably seen a headline or two recently about increased sales activity, and I can personally attest to this as we Realtors are starting to see multiple offers more frequently. In certain price ranges, there are properties that end up receiving 10 offers or more, because the listed price is just too good to pass on for many buyers. In addition to that, I think many buyers are realizing that we are pretty close-if not already at the "bottom". Furthermore, by the time we realize we have hit bottom, we will already be on the way back up! This fact, coupled with low interest rates means that many who can afford to buy are seizing the moment and taking advantage of the opportunities that are out there.

The fact that "short sales" haven't gotten any easier to deal with means that most buyers (and agents) would rather deal with a Bank-Owned foreclosure compared to a short sale any day. It's true that there are some differences between normal transactions and Bank-Owned deals, but overall the process is much closer to a normal sale. Having to wait 4-6 weeks just to get a response to an offer is no fun, and with a Bank-Owned property you can expect a response within a week or so...that's a big difference!

Also, buyers are realizing that just because a property is a foreclosure, it doesn't necessarily mean there is anything wrong with it. It's true that it isn't as common to have pre-sale inspections for Bank Owned foreclosures, but that by itself is by no means a reason to be scared away from buying one. Afterall, the inspection contingency is still working in your favor as a buyer, although the time periods allowed for inspections are typically shorter than in normal transactions.

Date: Thursday, August, 21st 2008 @ 03:54:12 PM
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