Buyers did you know that about 50% of the homes on the market in , Nevada are either bank owned foreclosures (REOs) or short sales (pre-foreclosures)? Probably not, but as of today, September 26, 2008 here is what the landscape looks like for buyers in . Out of 728 stick built homes - 140 are bank owned, 7 are subject to court approval before purchase, 4 are relocation company properties, 213 are short sales and 364 are traditional sellers.
What does that mean to you as a buyer in this market? You may have to rethink your strategies.
Bank Owned - If you are looking at bank owned properties, be prepared to be in a competitive situation if the property has just come on the market and is priced at or below market value for the neighborhood. You will most likely get into a multiple offer situation and may end up having to offer over asking price. If the property has been on the market for an extended period of time you might be able to negotiate a better price than what is being asked for. Be sure to discuss each individual property's situation with your buyer's agent. Important Tip: If you are considering purchasing a bank owned property BE SURE TO HAVE YOUR OWN AGENT. You want to make sure that you are equally represented in these sales.
Short Sales - Are you a patient person? If not, you may not want to attempt to purchase a short sale in this market. In a short sale the seller has to secure approval from their lender to accept less than is owed on the property. Due to the large number of homeowners attempting to due short sales the banks are simply overwhelmed. They cannot process the requests in a timely manner. What does this mean to you the buyer"? You had better be ready to wait months for an answer, not days or weeks. Short sales are very tricky. Make sure you are working with and experienced buyer's agent to help you navigate this type of purchase.
With so many short sales and bank owned properties on the market you would think that every agent you might consider working with is qualified to represent you in one of these transactions - maybe not. Be sure to ask your agent if they have represented buyers in REO and short sale purchases.