More importantly, what doesn't it mean? Yes, we are officially in a buyer's market. Typically, when the inventory rises above a six month supply it is a buyer's market. There is currently an eight or nine month supply in the San Fernando Valley. What that DOES mean is that there are lots of homes for buyers to choose from and it does give buyers some advantage in negotiating a good price. What it DOES NOT mean is that the buyer holds all the cards and can walk all over the seller with unrealistic demands. No matter the market the home belongs to the seller and ultimately the seller has the last word.
This can be a real shock to buyers particularily those trying to take advantage of the huge supply of foreclosures. Buying from a bank has its own set of rules and if you are someone that likes to control situations then this is not for you. It is a game of "hurry-up and wait". Lately, I have had buyers write offers on short pays and foreclosures and then call me everyday yelling because the bank has not responded even though I have said over and over again that the bank moves at its own speed and has no attachment to the property. It can take a month or more for a bank to decide whether or not to accept a short pay offer and 80% don't get accepted. There is no one to call and push along, the person that answers the phone at the bank doesn't care if the property sells or not and the listing agent has no control over the speed at which the bank responds.
So, if you decide to take advantage of this market, and it really is the time to buy, understand that not every house on the market is going to be a great deal, that not all sellers are in trouble and HAVE to sell, and that the banks are not easy to deal with. The most common answer you will get from a bank whether you are writing a short pay offer or in escrow and asking for something to be repaired is "NO".
If you would like to learn more about buying foreclosed properties e-mail me now. To view Bank Owned Properties Click here.
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