The signals are out there: home sales are picking up and prices are slowly ascending. However, recovery isn't obvious everywhere yet. Most markets are still seeing the cheapest homes selling fastest, while mid-range homes are taking longer, and upper-end properties are languishing.
Whether buying or selling, your best strategy in this dynamic marketplace depends on which tier your property sits. I will begin by offering advice for that bottom tier of the most affordable homes. My next blog will discuss the mid-range market, and then finally we'll get around to those most expensive properties at the top.
Most of the two million recent foreclosures have made up the bulk of the least expensive homes on the market. Bargain prices and a federal tax credit have lured investors and first-time buyers into the fray, increasing sales of $100-$250K homes by 9% over the last year. Buyers should act quickly and submit their offer with due haste. If your offer isn't accepted, keep checking back, because deals commonly fall through.
While it's hard to compete against foreclosures in the pricing category, they’re often in dire need of repairs. Sellers can increase their odds of success by offering their home in "model condition" at a fair price. Whether you’re a buyer or a seller, watch this space for more advice on making your sale or purchase work.