It’s a Buyers Market. Or is it?

With over 6 months of inventory (the number of homes on the market divided by the number of homes selling each month) we are in a buyers market.  But if you are out there buying you may think otherwise. 

We currently have 3 housing markets.  

The Short Sale market: made up of people looking to sell their home and have the bank take the loss; The short sale market is slow (months & months)  check out my other posts on Short Sales for the scoop.  The purchase will be "As Is" meaning you can inspect, but the seller will do no repairs.  The bank can only accept an offer, not counter.  So don’t expect to go back and forth.

The Foreclosure market, made up of bank owned properties already thru the foreclosure cycle. The foreclosure market is a bit quicker.  You will most likely get a response back in a week.  You are still purchasing "As Is" and many times, since these properties are put on the market at rock bottom there will be several offers going in from different buyers.  This means, if you love it, put in your best offer at the start.  You will most likely get a request for "highest and best" and that is their version of a counter offer. 

The last group;the Resale Home market, you know, the section of the market made up of people who didn’t over extend themselves, have owned the property long enough to have equity, and have pride of ownership.   Wow, I miss the regular resale transaction. 

With multiple offers, banks taking their time to approve sales, and no option for repairs and many of the properties needing LOTS of work.  It feels like a sellers market. 

Understand the differences, know what you are looking for in the purchase, are you ok doing repairs, do you have the cash to get the repairs completed or is sweat equity enough to get the job done. 

Or are you looking for a home that has been maintained where the sellers are cooperative, and you move in and enjoy…