The media is still calling this a Buyer's market, and in some cases it is. However, if you're trying to buy a bank owned property, it's a seller's market. Banks are pricing their listings at rock bottom, which is bringing in multiple offers. A client called and wanted to look at a home that was just listed for an incredible price in Elk Grove, I checked with the agent and it had 17 offers. SEVENTEEN! Sellers of "normal sales" of homes are begging for just one offer, but those homes are overpriced.
So if you're a buyer and making offers on bank owned homes, don't lowball...the bank won't even acknowledge you. Also, be patient, your home is out there and when it's supposed to be yours, that's the house you'll get.
Showing posts with label buyer's market. Show all posts
Showing posts with label buyer's market. Show all posts
Friday, June 20, 2008
Saturday, March 1, 2008
Selling Your Home in a Buyer's Market
With all the negative press geared toward home sellers in the Sacramento Region, it's amazing anyone who doesn't have to absolutely sell would even think of putting their home up for sale. However, if you have some equity and are looking to move up into a bigger home, better neighborhood, etc., then it's an excellent time to sell. Yes, you will likely take it in the shorts when you sell your home; however, chances are you will more than make up for it in your new home.
One stumbling block home sellers have is whatever the highest price they could have ever received for their home at one time (probably over two years ago). This price is stuck in their mind that they have lost that much money on their home. If you bought your home 5 years ago, you probably have not lost money. Say in 2003, you paid $200K for your house and in the fall of 2005 your neighbors sold their home for $380K. Now your home is worth $280K. You have actual equity of $80K, not a loss of $180K. Those buyers who actually bought at the height of the market around the fall of 2005, have lost real dollars. My husband and I happen to be one of those buyers, we are $160K in the red; however, we plan to be in our home for many more years since our home represents our quality of life in a neighborhood we enjoy and not a day trader stock.
It's a great time to buy. Home prices are so affordable -- for many people. Home buyers are buying homes they thought they could never afford. So, if you want that move up home or better school district, go for it and put your home up for sale at a great price. You might be surprised.
One stumbling block home sellers have is whatever the highest price they could have ever received for their home at one time (probably over two years ago). This price is stuck in their mind that they have lost that much money on their home. If you bought your home 5 years ago, you probably have not lost money. Say in 2003, you paid $200K for your house and in the fall of 2005 your neighbors sold their home for $380K. Now your home is worth $280K. You have actual equity of $80K, not a loss of $180K. Those buyers who actually bought at the height of the market around the fall of 2005, have lost real dollars. My husband and I happen to be one of those buyers, we are $160K in the red; however, we plan to be in our home for many more years since our home represents our quality of life in a neighborhood we enjoy and not a day trader stock.
It's a great time to buy. Home prices are so affordable -- for many people. Home buyers are buying homes they thought they could never afford. So, if you want that move up home or better school district, go for it and put your home up for sale at a great price. You might be surprised.
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