Monday, March 10, 2008

Bank-owned Listings are like the Clearance Rack

Do you ever go the mall and look at the clearance racks – they're usually in the very back of the stores? You'll see signs like "75% Off", or "nothing over $10", which is enough to draw my attention – heck, I'd love to pick up a $60 pair of shorts for $15!


The trouble is, the deal only works if I can find a pair of short in the right size, style, and color – which doesn't happen very often! I see lots of really small and really large shorts, and lots of off-beat colors and styles. But I rarely see a typical pair of khaki shorts in a size 32. That's because these shorts are more popular, and sell at the retail prices, so they don't need to be deeply discounted.

We're finding the same to be true with the bank-owned houses for sale.

If homes in a particular neighborhood are selling for around $250k - $300k, you might find a bank-owned home (or even a couple/few) listed for $200k. It's showing as a tremendous value, and the buyer is going to get a great deal on his/her home. But it doesn't mean the "regular" sellers are going to match this price. Most, if not all, of the regular sellers are going to say, "at $200k we'd rather just stay put – it's no longer worth it for us to move."

If the bank-owned property fits you, and you like the style & color – now's a great time to buy a home off the discount rack. There's a larger selection for sale than ever before, too!

But don't expect the rest of the homes out there to match the bank-owned prices. Much like the shorts on the clearance rack – when they're gone, they're gone. And once sellers don't have to compete with the banks in every neighborhood, prices are likely to firm up quickly.

Your shopping for discounts Realtor,

Chris Butterworth

[tags] bank-owned property [/tags]