What's the market like after the tax credit?
There is no doubt that the first time home buyer tax credit influenced many to buy a house in this uncertain market. The $8,000's and interest rates hovering around 5% were enough to get them off of the fence and out of rental properties.
So...who is today's buyer?
Over the last 6 months, my clients have been young first time home buyers. All of them have bought and today's clients are investors and sellers in distressed properties. There are still a lot of distressed properties around and investors are taking advantage of these.
Bank owned properties are the focus for most investors. Some of these houses are drastically reducing their list price and this is attracting a lot of buyer attention. Here is the problem...the houses have not been properly maintained for some time and the houses now need a lot of repair work. In order for the buyer to purchase these houses they must have enough money to put 20% down and must have enough money to complete all of the necessary repairs. There are a lot of buyers for houses that are priced under market value but what if the repairs total over $100,000? There aren't as many buyers that can and/or want to jump into this type of house.
Was listed for $500,000 in Oct. 2009 and is now listed for $319,920
This house is receiving a lot of attention. I have shown this house multiple times this week. There are a few offers in on this property but as of now...the bank has not agreed to work with any of them. This is an amazing house for the money but it does need a buyer that is willing to do some repair work.
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