Spotting Great Deals in This Buyer’s Marketby Tim Manni
We’ve made a lot of noise recently that things are going a lot better for homebuyers than for sellers. Opportunities abound in today’s housing market for buyers — from cheap real estate prices, to historically-low mortgage rates, to Federal tax credits (click here to read the latest on its possible extension) — assuming that you can qualify for financing.
Barbara Corcoran, real estate consultant for NBC’s Today Show, visited the morning show’s set this week for a short segment called “Buying at the Bottom.” Corcoran shared strategies which potential buyers can utilize in order to find the best deals in this tough, but bottoming, market.
Here are some “pockets of homes” that are likely to offer great deals:
Properties With a “Clear Ending”: Whether the property is on the market because of a divorce, foreclosure, or an estate sale, these are borrowers who clearly have to sell, says Corcoran.
Scorned Homeowners: If a homeowner is desperate to sell because their last potential buyer walked away, they will be more willing to negotiate a cheaper price.
Shopworn Listings: These are homes that have been on the market for six months or more, and have experienced repeated price reductions. These homes “will continue to reduce; that’s not an exception,” said Corcoran.
What signs suggest that sellers will be more willing to accept a lower bid? Corcoran says there are several:
Check the Closets: Check the closets? Yes. Corcoran says closets can be a good indication if the homeowner has begun to move out or if they are recently divorced — which may indicate that they are anxious to sell.
Look for Giveaway Words: Read over the property’s advertisement (if there is one) to get a sense of the seller’s urgency.
Click here to learn more tips on finding “pockets of homes” and “signs the seller will accept a low bid.”
(hat tip: Ben Barber @ Get Mortage Wise)