Is it the right time to buy yet?
Lets look at the facts, interest rates are still amazingly low, there are some beautiful homes available at prices not seen in years, the economy is showing signs of gaining ground. Every indicator is showing that Real estate is on its way back. If you are a cash buyer, you are really missing the boat right now. There are tons of properties priced insanely low because they won't qualify for a FHA or VA loan. That takes a large majority of buyers right out of the picture.
There is a way to get around property condition issues such as a 203k FHA loan, but many buyers and sellers are hesitant mainly because they have no experience with them. The process can be much longer and more red tape, but you can get a home that needs some work, get the repairs financed into the mortgage and still walk away with a fantastic bargain. The part that is frustrating is that many Agents don't really understand what is available to buyers and even worse, the sellers (mostly lenders with foreclosed homes ) shy away from accepting such offers because of the extra time needed to close such a loan. The end result is they accept much less for a property after waiting longer for a cash buyer. Those sells in turn continue to drag down prices for the rest of the frustrated sellers market.
Short sales are everywhere, does your Agent really understand the process? We have completed dozens and the process does finally work. It only took two years for the lenders to understand that working to get them done was in their best interest! The process still takes at least 60 days and a seller that is willing to work very hard to provide needed information, including hardship letters and financial information to move the process along. It is all about true market value and has little to do with the original loan amount. I also hear things from sellers such as they would be worried about the lender asking them to hold an unsecured note, news flash is that if the home goes to foreclosure, they can still seek a judgment against you as well. Better to help with the process and minimize the loss!
Foreclosures will continue to be on the landscape for a while and there are great deals to be had. Not all of them need work but some have many hidden problems! The biggest surprise for some buyers is to find out that the foreclosed home might not be really your best deal. It takes some effort to sift through all the available homes and evaluate worth and resale potential which is where a real Buyers Agent will show their merit!
Please feel free to comment or call me directly if you have any questions!
Bryan Hammond
Weichert Realtors
843-276-9253
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