Well, maybe. If you’re searching for a “deal” on a bank owned or foreclosed home, you may find yourself back in a 2004 bidding war.
Bank owned homes have a specific MO for getting the maximum amount of money for a property. They price it low and take in multiple offers creating a frenzy for that particular home. When buyers fall in love with a property and become emotionally involved, they will pay top dollar for it to beat out the competition and pay above the asking price. This puts the bank in a position of power and gives them as the seller the upper hand in a buyer’s market.
In homes priced under $200,000 you can actually see an appreciating market, meaning homes are rising in value. The reason is that the greatest pool of buyers is in this lower price range. When that “perfect” property comes on the market, these buyers are savvy…they’ve seen what’s out there and this home is THE ONE! The buyer is not going to let it go…they will pay above list price because they know, they aren’t necessarily paying above market value. AND, if you read this post, you know a property must appraise if being financed.
Physiologically though, some buyers can’t get past the thought of paying over list price because of their sincere need for “getting a deal.” The truth though, is if the home is priced below all the other homes you’ve seen, it’s OK to pay closer to the real value, even if it’s over the asking price…because…lean in…lean closer…give me your ear… YOU ARE GETTING A DEAL!
Most of the homes on the market today are a better deal this month compared to three months ago, last year and five years ago. Check it out...you can get a ski lake home for under $1 million. Or an updated pool home in a very desirable area with A+ schools for $250,000.
The real estate market is filled with homes that are priced really well. So well, that two years ago you couldn’t qualify for a particular home because it was out of your price range. Now, it’s well within your price range.
All the conditions are right for purchasing a home now. If you’re a first time buyer, you qualify for an $8,000 tax credit. If you’re a move up buyer, you could qualify for a $6,500 tax credit. And rates are at 30-year lows! You could get a rate below 5%. So not only is the home you love priced where you can afford, it’s even more affordable with the low interest rate and tax credit.
If you’re looking for a deal, chances are you’re already getting one. If you’re having a hard time finding a deal, contact me today and I’ll get you squared away on a great home you can afford.