Of course the majority of the questions we get now are whether today is a good time to start buying real estate. There are a couple of factors that play into this. First is gauging the employment market. Analysts have predicted that the New Jersey unemployment rate will rise slightly in 2009 leading to additional homes coming on the market. But what are lenders thinking right now? Well, if you are looking at a home in the suburbs for instance where the majority of the short sales and bank owned property are listed, you will find lenders being a bit more negotiable, more than you may think.
Banks look at the same data that we do. They also need to get debt off their books immediately or risk being completely cash strapped. They need to recover as much money as possible from a loss that they are already going to take from the original purchase. That said, they realize that additional foreclosure filings in 2009 may increase the likelihood that home prices will drop a bit more due to adding inventory. This will place a sense of urgency with them. Do they want to bail out now at a steep discount or carry this property that is costing them thousands per month in interest and legal fees while assuming that they can get a higher offer in the future. The answer to that is simple. They will want to bail out NOW for a steeper discount, giving the buyer a competetive advantage in the negotiations. Their goal is to wash their hands of as much negative equity as possible so they can begin their recovery process.
The inventory mark in New Jersey real estate is currently at 11.5 months, more than double the level normally required to encourage builders to begin building again. So for the most part, the additional market inventory will be added by sellers who are losing / lost their jobs or find themselves in a substantial equity deficit.
So I ask again, is today the right time to buy? The advantage New Jersey Real Estate Guys has over most realtors is our knowledge on how to negotiate these prices with the bank. Bottom line is that the banks asset management affiliates have weekly meetings on how to play hardball with the house. Rest assured we know how to play hard ball right back. With past experience with a bank and discount negotiations, Scott Allan will take all of the negotiations head on and get the deal that you are looking for in the house that you truly want.
If we feel that we cannot get the right price, we have other properties that are obviously available. Today, real estate has turned into a game that is nicknamed The eBay Affect. Banks are trying to create bidding wars on their REO (foreclosures) portfolio and shortsales. Many buyers agents and buyers themselves get frustrated with this system and normally walk away from the deal. That deal they walked away from could have been executed with the proper knowledge on how this game is played.
Get in touch with New Jersey Real Estate Guys for real estate. Buyers, Sellers, Renters, and Investors are our specialty.
iAutoblog the premier autoblogger software
沒有留言:
張貼留言