The media suggests that “home sellers are calling the shots” when it comes to negotiating real estate deals today, but is this true? Is today’s housing market really a sellers market?
According to a CNN Money survey, 85% of house hunters are willing to compromise on price, closing date and cash out of pocket. Thirty-three percent are now willing to compromise on locations or property types to facilitate the purchase of a house. Forty-two percent acknowledged that they have made offers in the last six months, yet only 11% have actually acquired a deal.
In some areas with sizzling markets, it may seem that a lot of sellers have the upper hand, which is great for investors selling homes. Current conditions suggest that we are in a sellers market.
However, this is certainly not the case in other areas with different deals. Reports of a sellers market are not applicable to many distressed properties, and there are obviously homes that have been sitting on the market for extended periods of time. The housing market may still favor buyers.
There is still plenty of inventory to pick from. In fact, analysts report that home sale statistics would be much better if it wasn’t for struggling owners being held back by underwater mortgages.
This is highly ironic of course, especially after the barrage of information that covers short sales and loan modifications.
In other words, there are still tens-of-thousands (maybe millions) of homes out there ripe for the taking at discounted prices. Investors need to get in, educate owners about their options, buy the notes and give homeowners a new partner to help work out a solution with.
They need to know that the tax advantages of short sales are running out, they need to act fast and there are plenty of options available.