With real estate prices coming down and homes becoming more affordable, buyers are starting to come out of the shadows and enter the real estate market.

However, as a buyers agent, I'm still finding it tough to show a lot of the foreclosures because a lot of them need a lot of work, and the majority of home buyers don't have the money for repairs after down payment and closing costs.  True, there are the down payment assistance programs, but the clock is ticking on the availability of this government aid.  Then there's the FHA 203(k) program that allows you to build the cost of repair into the mortgage loan.

The problem is the lower you go in price range, the more narrow the buyer's vision appears to be.  First time buyers have a hard time visualizing the finished product.  That's often why staged homes sell quicker and for more money than homes that need work, or vacant homes without a speck of furniture.  When first time buyers visualize repairs and cosmetic updates, they envision themselves going broke,

and not having time to make the changes, which equates to them not being able to enjoy the home they just spent thousands buying.

This past weekend I was showing foreclosures to a first-time buyer.  As a real estate agent, when I hear the word 'foreclosure' I immediately think of replacing everything...carpet, paint, appliances, fixtures, toilets, doors, etc.  One of the houses that we viewed had no refrigerator.  While it was obvious that the home was in need of serious repair, my buyer was really hung up on the fact that there was no refrigerator.  The other existing appliances were old, worn, and dated, but because there was no refrigerator, my buyer had a hard time seeing why this home was even on the market.

My buyer saw this house:

While the bank, and sometimes most sellers, see this:

Right now, there are just under 300 homes for sale in Alexandria City that are priced under $200,000.  There are over 1600 homes for sale in Prince William County listed under $200,000.

Three years ago, this would have been unheard of!

True, the falling prices are making it easier for some buyers to re-enter the market, the problem is, most first-time home buyers don't want shacks.  They have neither the patience nor the desire to take on anything more than a fresh coat of paint.

Hmmm...why can't stagers and banks just JOIN FORCES?!

---------------------------------------

This article is copyrighted and written by Tamara Inzunza.