Let's look at some facts SPECIFIC TO THE CHATTANOOGA MARKET:
* The sales volume of homes sold in 2008 was down 18% BUT the median price of the homes sold were down LESS THEN 1%. Not bad when surrounded by a national market that did much worse.
* The prices of homes over the past 5 years in this market are UP 10% (see below for details).
* The median price of a home in Chattanooga in 2004 was $144,196. In 2008 that price was $159,995. So why "Bad Time To Buy" in Chicago was paying rent, the folks in Chattanooga gained almost $16,000 in equity in the value of their home.
* The ONLY year we saw any decline was between 2007 & 2008 and current sales records show we bottomed out in November of 2008 and are now edging back up.
You might want to check out this web site which clearly spells out the advantages of buying versing renting:http://righttimerightmarket.com/index.php?/rentown.
Conclusion: I don't know the Chicago market. Maybe it is best to rent there, but if you are planning to live in the Chattanooga area, it is clearly best to buy.
All the answers are good. So much depends on your plans, wants and needs. There is no "magic" number.
Foreclosures are already priced low, the price drops are triggered more by the calendar than by offers. When offering to buy a foreclosure you are working with someone behind a desk that has no objective interest or understanding of the market.
Work with a professional agent to construct an offer that will meet your budget and allow you to achieve your objectives.
I trust this helps,
-- Jeff & Patrice Wishmyer
wireless: 423-503-6953, 423-424-8749
If you have any questions about foreclosures, investment properties, or just about the market please feel free to call (423.505.8775) or email. (MarshallCasselman@remax.net)
I know at least in our area that the banks' new strategy is to price the home in a range that will garner multiple offers, some over list price. They are no longer sticking to their guns as much by trying to price high and go down as necessary. For example a home they think is worth $200,000,even in today's market, may start off listed at $150,000.
As a result, I've got a lot of disappointed buyers who are losing out on bid after bid because they expect the banks to just give homes away. The thing is, is that some banks are offering homes at "give away" prices already and they just want to price them to move fast
Since real estate is highly localized, your best bet is to align yourself with a buyers agent who specializes in your local market, and make use of their expertise to help you get the home you want at a fair price. Maybe you have to bid full price maybe you dont. Best of luck!
Half of the bank owned are going for more than the asking price. They set it low and expect several offers within a few days. Don't expect that they will take a low offer as the agent from Plano said have an agent help you decide on a price.
I have recieved offers that the agent stated that the buyer was willing to go as high as their best offer "up to such and such a price. Also we had to prove that there was an offer that high. This way you can make a low ball offer but let them know you are willing to go higher if their are other offers.
Phone: (423) 443-4638
If a property has been on the market for more than a couple of months, and you aren't emotionally attached to the purchase, it usually won't hurt to offer 10-15% less than the asking price. Very few sellers of foreclosures will accept an offer more than 5-10% below the asking price if the property has just come on the market. They are willing to hold off for at least a few weeks to see if they get a better offer.
HUD will almost never accept an offer more than 10% less than the current asking price.