These banks dont want to deal with more foreclosures and I am seeing properties go for nice deals.
Think its media that is telling people that they should look into them. Then when people see that these foreclosures need work they wonder why. I always tell them this "if someone cant pay their mortgage, dont you think they will stop renovating and keeping up the property before the final straw of just not paying the mortagage?"
I believe that people generally believe that these properties are a steal because lenders price them below market to generate interest, When people find out they could hang for over 60 days for an answer and find out is not the answer they were waiting for that educates them.
I recently had a client that lost out on a 90% LTV Stated Program that got discontinued while they waited for this lender to give them an answer the answer never came.
It all about media hype.....People have during the past 2 years heard "short sale & foreclosure" over and over until they believe they're the best thing going.
The real truth about the "best values" opportunities needs to be passed along so that buyers are truly able to explore all of their options.
The "Eckler Team"
I think homeowners just have not realized they have to price it lower than they wanted. That is the only reason why your non short sales arent selling. A home could be worth $400,000 and the seller still thinks its worth $435,000. They dont understand that a) its not worth that and b) what will happen come appraisal time even if you got a $435,000 offer. No mortgage = no sale.
It takes times for the market to come back and it takes time for people to get beyond the mentality they had when the market was hot.
Maybe to many normal sales start to high so buyers give up and forget they exist as they are always to high?
Remember, a lot of buyers now are those who wanted to (and ended up waiting) buy before. They have been trained by YOU, the realtors. You taught them that "normal sale" houses are to expensive. Since they know this they do not bother to look at them anymore. It is a learned behavior from past pricing blunders that are impacting present buying patterns.
I learned 20 years ago never to trust taiwan or china made tools. I broke to many of them. Now, even if they say snap-on I would not trust them. I learned the lesson well.
Many house buyers today may have learned a similar lesson over the past few years. You told them houses were out of their price range. They believed you and think only a foreclosure will be affordable now.
Can you educate them differently? Maybe you could get NAR to come up with a campaign other than buy now, interest rates are low and prices are going up. (sighs) good luck on that effort.
In my market, all of the most competitivly priced homes were short sales or REOs. It was that simple. Owner Occupieds simply had not realized that "this is what homes are going for now". We literally couldn't get away from them. Of those that were not labeled 'bank owned' or such in the MLS, if it was priced attractively it invariably turned out to be a REO.
There were so many nicely priced, move in ready REOs that we didn't even really need to deal with the long drawn-out short sale process. So we really didn't look at them.
Shopping REOs in SoCal isn't any different then shopping owner occupieds, as most are not trashed and are in fact only paint and flooring away from 'move in'. Offering/buying them, of course is very different.
In the past, those were considered rare, in the current market, they are all around, and the buyers are looking for the "best deal" with the "better condition" and vice-verse. Buyer's market=pickier buyers.
But you are right, there are some buyers that assume that they will get a better deal if it is a "short sale"/foreclosure property and that is not necessarily right. It might happen more frequently when the current or previous owners had bought the subject property under a HIGH SELLER'S MARKET, but when the seller or current owner has being on the property long enough to build strong equity they are able to list their properties in a very competitive price even in this LOW BUYER'S MARKET.
Great Question to educate buyers. Thanks for sharing!
In Chinese Feng Suei, those properties must have some problem, so that the owner who eventually got their energy level "drained" by the property before their life screwup and give up the home.
So, when one buy a house, one should ask where is the owner going to do? Is current moving up to buy bigger home because got promoted making more money? or Is the owner make great money on oil stock and building a new mension? Chances, if you buy houses like that, you will repeat the luck. Other wise, you will have the same badluck.
My friend has a property that every of his tenant, once moved in, lost job within 6 months, and it has been always like that for past 20 years. So, if you are investor, may be go ahead to buy badluck properties.
Ideally, builders or flippers should buy them, and renovated, say to adjust the Feng Suei of such badluck properties before resell in the market ...
However, buyers asking for foreclosures, short sales, and handyman specials may not know that much about the issues involved, or the availability of suitable, immaculate, and ready to occupy homes. So we need to have that discussion when they ask that question.
Everyone loves a great deal, but when everyone else is looking, anything that's still sitting around can't be that good a deal, can it? You won't find "door buster" deals at the mall at 5pm.