Very good, with the tax credit and FHA/VA rates where they are you should see a steady demand. The biggest issue will be the property condition. FHA/VA loans wil be the rule rather than the exception so things like wiring, roof condition and mechanicals will be subject to evaluation by the appraiser and will need to meet certain criteria. Discuss this with your agent prior to listing so you have a good handle on what may need to be addressed. Sellers should not be surprised to see offers with closing costs included in the purchase price. This is simply a way for the buyer to "finance" the closing costs to minimize out of pocket expense. Simply have your agent figure your net proceeds on the transaction with those costs expensed out to decide how to address the final price/agreement. Buyers should also be aware that this area is not experiencing the issues that are present in larger markets. As this price point represents the entry level of pricing for homes in this market unless there are mitigating circumstances don't expect sellers to be chasing you for any offer. If you see a home of value don't miss it over $500-$1000 in price! With interest rates on 30 year conventional mortgages below 5% the difference is miniscule and the potential for upside in value in the next 5 years far outweighs the $8 a month you may save IF you get the house. Good luck!

There are plenty of opportunities. REOs especially