It is amazing how our market continues to change. As the market began its correction it was no mans land. Then as prices started to tumble it became a buyers market. Once the buyers got out there and started buying as quickly as possible it became a false sellers market because of supply or lack thereof and demand. Now it feels as though it is changing one more time. Everyone is waiting with baited breath for the incoming long promised REO listings that are due to surface after the moratorium was lifted. In the meantime, pickins are slim out there! If something is priced right and it is in good condition, it usually sells within its first week on the market and with multiple bids and usually above asking. However, strategy wise, bidding higher and higher can come back to bite a buyer if the property doesn't appraise which in this declining market can happen more often than not. If you are dealing with a bank owned property, then there is a really good chance they will be realistic and reduce their price based on the appraisal. However, if it is privately held, they have a bottom line and if they cannot meet their bottom line by selling it at the appraised value they may choose to hold onto it and rent it or continue to live there. Lord knows that the banks are coming around finally and doing loan modifications these days to stop foreclosures from occuring. Take nothing for granted in this market and don't assume you have it all figured out because by tomorrow, it is going to change again.
Anonymous
As a person who has been involved intimately with the housing market for 11 years as a Master home inspector in the competitive southern California market. I have met many buyers that say they were in competition with over 50 other offers on the same property. The banks seem to be holding back on the amount of foreclosures released into the market place to help inflate prices through supply and demand. Low ball offers even cash offers are not going to be awarded the home. It's the offer that is within a good amount of far market value that are winning the bidding wars. Thanks for the post Wendy
David Salvato, Expert Author Enzine Articles
Founder of Homeinspectionservices.org
Owner of David Home Inspection
626 941-4567
Aug 26, 2009 03:53 AM
#1
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