4. Sellers are Motivated
Buyers have the Upper-Hand today. There are moments during housing market transitions when the Buyer and Seller are on an equal playing field, but give it enough time and one will have more leverage. Today, the Buyer has that advantage.
| What does this mean for you?
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| For you as a buyer, this means lots of choices, lots of negotiating power and that smart sellers are fiercely competing for your business, both in terms of the price and the condition of their homes. |
An effect on these numbers are the influx of distressed properties that arise from the foreclosure environment. Banks are eager to sell the property they own (referred as REO, Bank-Owned or Foreclosure) and they are also willing to settle with homeowners in trouble through Short Sales. Another market place are homes with government loans that have been foreclosed; instead of a bank owning these homes, the government owns them and wants to sell quick. These are referred to as HUD Homes. They are available at a very wide range in pricing. Generally they are about 20% below market value and at times much lower than that.
These distressed properties are now common in the mainstream of real estate transactions. According to the National Association of REALTORS® (NAR), 32% of homes sold sense the beginning of 2010 are either Short Sale or Foreclosure.
NOW is the time for smart buyers who are looking for a deal to Seize the Opportunity!
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