As it stands right now, competition in the sales market is tough and your biggest competitor is the bank. REO or bank owned homes fill the MLS listings and consequently the prices in our area are as low as we have seen in the past years. Short sales are many, unfortunately, the trend is for potential buyers to wait until the home is foreclosured before marking an offer. Banks are more willing to negotiate on the price when they own the home outright.
With so many REO's, the lending community has become increasingly tight with money. Buyers, who would have been well qualified 1 year ago, are finding it hard to get a loan or the loan they are approved for requires more money down than they are comfortable parrting with.
Warren Buffett stated "When others are greedy, be cautious. When others are cautious, be greedy." Opportunites during times of ecomonic turmoil, we all need to do our best to capitalize on every opportunity we get, and make good informed decisions.
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