Landon Huffer- Texarkana Real Estate Broker

Where are all the deals? | June 24, 2011

I get asked every day where are all the deals?  Buyers are looking for deals and are not finding them.  There are so many buyers that are ready to buy and feel with the market in the condition it is in they should be able to find deals left a right and they are just baffled that it is not happening for them.

When I get a call from a buyer, more times than not they are asking to view foreclosures.  Everyone knows that you can get a deal on a foreclosure, right?  Well, not necessarily anymore.   Everyone remembers the times a couple/few years ago where you could pick a foreclosure up for a deal, but it appears that does not hold true in every situation any more.

My thought on that is the fact that there are a large amount of foreclosures available that banks cannot afford to let the homes go for what we are used to seeing.  The more houses they have the less of a loss they can afford to take.

Banks are holding properties longer in order to get more for the home.  Banks are even fixing homes up to make them look better so that they can get more money for the houses.

Then you have the large amounts of sellers on the market.  Surely they realize this and are willing to sell their property for less, right?  Not necessarily.  In my view many home owners are not in a situation that they have to sell.  Maybe they are retiring, moving up, or moving down and do not have to sell.  This seems to be the case in a lot of situation.

So, where are they deals?  I have seen buyer’s getting “deals” in two types of transactions:  underwater sellers and relocation owned homes.

Buyer’s are being more and more patient everyday.  They are waiting for a deal and unless they can find one they are not buying.  Buyers seem to be buying a good deal or a unique property that has something they cannot find anywhere else.

So, you need to be looking at sellers that are in distress or homes owned by relocation companies.

Homes owned by distressed sellers may even qualify for a short sale.  In this situation the bank will take a loss on the property prior to going into foreclosure.  This helps the bank minimize their losses, the seller avoid foreclosure, and the buyer to get a pretty good deal.

Then you have relocation companies.  These are companies that actually buy out the home owner when they transfer to another location with their job.  They now own the house and have no intentions of keeping the home.  Unlike your regular seller they do not have any emotional ties to the property and are able to deal just based on the numbers.  Their goal is to sell the property as fast as possible, which in some cases means reducing the price drastically.

So, if you are in the market for a new home be sure to ask your agent about distressed homes and homes owned by relocation companies.

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About author

I am a young, eager, and aggressive Real Estate Broker with Schimming Company Commercial Real Estate.

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