Hot buttons in real estate right now
R.E.O. (real estate owned)
-also know as "Bank Owned" or "Foreclosure".
-Represents about 10% of the total homes for sale.
-The average time on the market is 35-days.
-They are getting multiple offers on them 90% of the time and are selling at more than asking price.
ShortSales
-The seller offers less than what is owed to the bank.
-No clear consensus of time frames, price the bank will take or if the seller can qualify.
-Ask 10 agents what they think and you will get 10 different answers.
-The biggest problem from my point of view is that the Listing agent, owner & negotiation company are the ones we deal with, but they cannot make any decision on price or terms. The bank makes the decision and we are not able to talk to them directly.
-The one point everyone seems to agree on is if you are a buyer you should make offers on 10+ shortsales if you are interested in them.
Is this a good time to buy?
-NO, If you are buying a investment to flip. I think you should wait and see what happens, but be readyfor summer 2009.
-Yes, if you do not own a home right now and can afford the payments. Your selection is incredible and interest rates are around 6%. Even if you think prices are going to come down another 10%, your selection, terms you can get and good interest rates clearly out-way waiting. (a bird in hand is better than 2 in a bush)
-Yes, if you are a investor or doing a 1031exchange and have a time horizon of 5+ years.
-Yes, if you want to upgrade your current home. Even though you will sell your home for less you are probably buying a home that is more expensive and will recoup any perceived loss on the up leg. You are able to lock in a much lower tax base on the new home and have a incredible selection right now. A smart man once said that "you buy real estate when the streets are filled with blood". Well, we are swimming in it right now!
Loan Modifications
-Very real and I have seen the banks do some amazing things to help owners keep their homes.
-My recommendation is to call your bank and say "Who do I talk to about modifying my loan".
Most banks will point you in the right direction and don't want to take the loss of foreclosing.
Most banks will point you in the right direction and don't want to take the loss of foreclosing.
Have a great weekend and remember I'm never to busy for your referrals,
Brent
