Urban Legend "It's a Buyer's Market"

By:  Jamie Thompson

Posted:  December 7, 2009

Lately every real estate conversation centers around one simple fact, “It is a Buyer’s Market.”   Ask any buyer and you will hear about that smoking good deal made during the purchase of their home.  Ask a seller, and you will hear how their home is selling for $1000’s less than in previous year.  Ask a realtor, and you will hear about how homes are being given away for pennies on the dollar.

Considering that interest rates for real estate purchases are at historic lows, that the U.S. Government is giving up to $8000 for the purchase of a primary residence, and that tons of bank owned properties are selling at discounts,  buyers enjoy many benefits of today’s real estate market.   However, as our parents used to say, there is no free lunch.

Eager buyers ready to take advantage of the Real Estate Market get to deal with a number of challenges.  First, navigating through tons of short-sale real estate listings and bank-owned properties, a buyer must decide whether to patiently wait on that short-sale to close or to roll up their sleeves and do some work on a beat up bank-owned property. 

If the choice is to wait on the short-sale property where the seller is short or owes more on the property than the home will sell for, the wait could easily last 3-4 months.  And at the end of the months of waiting, the deal could still fall apart if the bank and seller are unable to come to an agreement, meaning that buyer starts the whole process over.  If the bank and the seller do come to terms, the buyer likely must close the purchase by paying some extra fees normally paid by the seller. 

If the choice is to purchase that bank-owned property, navigating an “As-Is” purchase contract, estimating repair costs, and having the vision and the know-how to fix up a home are a few challenges sure to consume a few weekends of spare time.

At the end of the day there is no doubt that today is a great time to buy a home, if you are able to navigate the challenges and hassles of the real estate market.

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