It's a buyer's market, right? Then why are buyers so frustrated?
I will tell you why...reports on the news tell us it is the time to buy. We hear all about prices falling by 30%+ in the Florida market, tax credits, low rates, and tons of inventory but even qualified buyers cannot close a deal.
Buyers' patience is running thin these days as the short sale and foreclosure market is king. If you have not noticed the new trend for short sale listings, get with it. Listing agents are now throwing a LOW listing price in order to elevate interest, create multiple offers (creating a bidding frenzy), draw in buyer leads for future business, and of course, force the bank to begin to work the numbers for a bank approved price. Listing price now means NOTHING in many cases. These same listing agents are then keeping their listing active even after the seller has executed the offer (a complete violation which should be reported), they charge buyers for mitigation, and then the buyers are forced to wait for weeks for an answer only to find out they have been beat out by another offer.
All of these issues have caused many buyers to just throw in the the towel. I get it..agents are frustrated as well.
Here are a few points to help you in the buying process of distressed property.
Find an agent with short sale experience.
Before you view a home listed as a short sale or foreclosure, ask your agent to call the listing agent to obtain detailed information on the short sale status. Details are invaluable.
Ask your agent to research the property on their own by viewing comps, amount seller paid, amount seller owes, current offers on the table and date of the lis pendens served.
If you are paying cash, add an appraisal contigency to the contract.
Ask if there is a seller's disclosure available for the property.
You may want to obtain the appraisal BEFORE you perform inspections. Appraisers are being very conservative and you do not want to get stuck paying for inspections if the property will not appraise
Be wary if the price seems too good to be true. Understand that the listing agent may have a ulterior motive for the listing price.
Understand that the agents are at the mercy of the lender and we cannot control time for acceptance.
Be diligent and patient. Short sales and foreclosure purchases are not easy. Go into the transaction knowing that there will be issues.
If you are a buyer looking for property in Central Florida, give me a call at (407) 908-2890 or email me to schedule a meeting. It is very important that you understand the buying process and I understand your needs. If your agent is not willing to put in the effort to provide you with the above information, consider changing agents.
This is a great time to buy..if you start out the RIGHT way from the beginning.