As the real estate market in the USA and the world in general feels the after effects of the global economic downturn the number of home that have been foreclosed on continues to impact the real estate markets. As the bank owned property comes on to the market the perceptions of the buyers is that these homes represent good value and that the banks are really wanting to get the inventory off their books.
The number of homes on the market and the perception of the banks willingness to deal with any offer has led to a number of lowball offers from buyers that have actually been accepted by the bank. This then effects the foreclosure market in a number of ways both direct and indirect. The downward pressure on the real estate market as a correction from the unusual and unrealistic mortgage qualifications is now being compounded by the number of foreclosures that are being sold at what looks like fantastic prices. The sale of these homes then has a impact on the neighborhood homes that are for sale by private sellers. As the comparable sales come in, the sellers have no choice but to reduce the list price of their homes to fall in line with the recent sales. The foreclosed homes seem to appeal to buyers more because they know they are dealing with an institution that has no emotional attachment to the property. The banks will make a quick decision as to wether to take a big or bigger loss and just get rid of the home and all the associated holding costs.
Now that the number of foreclosed homes has added to the downward pressure of the real estate market in the USA and here in Nashville the addition of the historically low interest rates has made buying a home a perfect storm for the first time home buyer that has no home to sell. In fact, even if you do have a home to sell, the way to approach the "loss" you are taking on the sale of your home as being compensated by the "gain" you make when you buy your next home! Conversely you could say that because you are buying in a down market you are actually being able to afford homes that a few years ago would have been totally out of your price range!
At the end of the day, if you are considering selling and buying a home...now is the time!!!!! If you are looking at Nashville foreclosures the use the link to seel all the homes that are listed as foreclosures in the Nashville area.
The Ashton Real Estate Group of RE/MAX Advantage
The #1 Real Estate Team in Tennessee and #4 RE/MAX team in the world!