More Foreclosures?

I've tried to duck under tables, hide behind closed doors, and cower in dark corners. No matter where I've tried to hide myself, the foreclosures and short sales have found me. I've done my best to conquer the demon and have gone to classes, and studied under agents who specialize in these kinds of transactions so I can represent my clients to the best of my ability. That doesn't mean I like them. I don't. These transactions are difficult, and often take a toll on the sellers (in short sales) and buyers. It takes a bank months to do what a good real estate agent can do in a week.

One of my clients, a first time home buyer, is looking for a foreclosure. He needs to keep his monthly payments down and doesn't mind doing some work on the house. He commented to me "It seems there are more houses coming on the market now." My response was "Yes, the suits are back from their holiday hiatus and are now ready to go to work to unload the inventory they've gathered up over the holidays."

An article this morning in inman news is predicting even more foreclosures to hit the market (again, remember this is a national newsletter and may not reflect what's happening in the twin cities metro). Even though my clients are not economists, nor do they have crystal balls, they are noticing the trend here in the Twin Cities.

I met a first time home buyer over the weekend who was looking in Minneapolis for a foreclosure. He was shocked to find out there were offers on two of the homes we looked at. If you're going to be in the market for a foreclosure this spring put on your running shoes. You're going to need an agent who watches the market very closely for you, prepares you for the ups and downs of dealing with these difficult transactions, and you HAVE to be ready to write the offer as soon as you see the house.

If Inman News' prediction is correct, the foreclosures we'll see come on the market will be listed at fire sale prices. There will be buyers who will think they can get the house at clearance prices, and a few will. The majority will sell at fair market value, because they'll end up with multiple offers that will drive up the price.

The buyers who will win in this market have a great agent, are pre-approved with a NON-fha loan, have reasonable expections for how long the negotiation process will take, and aim to get the house at a fair market price.

Source: Minneapolis Longfellow and Nokomis Real Estate Guide