In Arch Cape Oregon our market has of course felt the downturn based upon what is/has happened locally and the Real Estate Market in general. Interestingly enough, we were the one of the last areas in the Country to feel the effects of the market downturn. I think there are two reasons for this. 1. Our market is largely a second home community being located in Clatsop County right by the beautiful North Oregon Coast. 2. We are basically built out. The first thing I learned in Real Estate was the concept of supply and demand. That was over 35 years ago and the rule hasn't changed. More supply with less demand makes it a Buyers market. More demand with less supply makes it a sellers market. So, how do you get the best deal in today's market at the Coast?
1. This is obvious and the news has been full of this information adnausium ,but a Foreclosure or Short Sale or Bank property owned is sometimes a great place to start. I have recently put offers in on 2 short sales and both of them had multiple offers. Reminds me of the height of the market when we used the old trick of going in $1,000 over the asking price of the highest bid (which worked, by the way) If you don't want to get into a bidding war, there are other ways to get a great deal. Here are some other ways:
2. Ask your agent how long a property has been on the Market. This has been a great way to find a good deal as the longer it stays on the market, typically the more motivated a seller is for an offer, any offer looks good when they haven't had any activity. I have noticed this is where you can get some of the best deals, as each seller has a unique reason for selling and this is where the best deals can be found in our market in my opinion. I also like that you are in complete control because you are typically not in a bidding war.
3. Find out from the Selling Agent prior to making an offer whether or not any offers have been made on the property you want to make an offer on.
4. Don't ignore obvious signs like a vacant home. These folks are making at least two payments monthly as they are living somewhere else, and this gets old fast...
5. Ask your agent what the Assessed Market Value is on the house. As a general rule, homes in our area that are selling are going for almost exactly this amount. This has only happened in the past 6 months or so, and is a rule of thumb but I have noticed this consistencyy.
6. Try and keep yourself as un emotionally involved in the process as possible. I know sometimes this is difficult, but this way you can find more than one home and take a couple of stabs at getting the best deal for yourself.
There are some great deals to be had here at the coast. It is a great time to buy your retirement home, or second home or to just come and live. Two things you will want to remember though, is that we are basically built out, and everyone loves to come to the Beach! (Good reasons to be parking your money in the area) The supply and demand thing we were talking about.
Do yourself a favor and don't just limit yourself to foreclosure and Short Sales or Bank owned for the best deals. This is what separates the good agents from the best agents. Find an agent who is a buyers agent who will look out for yor needs. Thier knowledge of the local area will help you get the best deal He or She can, based upon what they know about the market.