Good news for the housing market!
I like the sound of this article that I read today from the Associated Press: “June New Homes Sales Rise 11 %”
Are we finally out of the slump? I was joking with some friends in my office this morning that we should list a house and write that the seller’s name is “The Banks” or “Mr. and Mrs. Short Sale”. It seems as though you mention the words REO or Short Sale on the MLS and there are multiple offers right away, even if it isn’t a great deal.
There is a media-fueled perception right now that these sales are always the best deal. Not always the case. Some banks list the home too high based on what is owed to them and others have listing agents that consult the bank and suggest a high listing price. Whatever the case may be, there are better deals- not to mention disclosures from sellers, and typically a more reasonable split of closing costs between buyer and seller- that are on the market right now. Don’t get emotionally swept away by the words REO, BANK or SHORT SALE.
With the bank, they usually shorten the 17 day inspection period that is boiler plate in the RPA-CA contract, they don’t sign the mediation/arbitration clause, seller picks the escrow company (usually no closer than 300 miles away for nobody’s convenience) and often the listing agent “specializing” in these types of deals has never even laid eyes on the house!
Now more than ever, buyer beware!
The bottom line is the market feels like it is coming around. Multiple offers and buyers coming out of the woodwork is a welcome site after many years of sluggishness. Bring it on!
Have a great and prosperous week.
