A Bargain Market For Home Buyers

Guest post by Gary Busker, a Realtor with Murney Associates in Springfield, MO

Some call it a buyer’s market; I call it a bargain market. With the large inventory of short sales and foreclosures available, affecting property values and low interest rates, it is an amazing time to buy a home. Even with economic fears it should be noted that there is no documented case in US history of the Real Estate Market staying down over five years.

Buying a home today is a great way to invest in the future. The terms Foreclosure and Short Sale have flooded the media lately yet the understanding of them is vague. Though they can be great bargains there are a few things a buyer needs to know before shopping and purchasing one.

• Foreclosures and Short Sales, often referred to as distressed properties, involve more documentation to complete a sale, this equates to longer closing times.

• Distressed properties are homes that often need some form of repair. This requires special consideration when it comes to financing. Having a skilled Realtor and Lender familiar with these considerations can make all the difference in completing a smooth and pleasurable transaction.
• Savings on these properties can often be as great as purchasing them for 40-60 cents on the dollar, however this again requires a very skilled Realtor familiar with the process and how their pricing works.
• Distressed properties are almost always sold as is where is. Many people including some Realtors believe this to mean no matter what you are buying. This is incorrect. As is where is simply means that the seller will NOT be making ANY repairs to the property to complete the sale. You as the buyer still have full rights to inspection and protection against hidden defects. Again this is where a skilled Realtor is vital.
• Short Sales though they can be a great deal can take sometimes up to 6 months to get closed whereas foreclosures are much quicker from 30 to 60 days and some as quickly as 10. Be prepared to hurry up and wait to get your bargain.

If you are a home owner looking to upgrade it is still a great time to sell. Keeping in mind that equity is made when you buy not when you sell. This means the same loss you may take selling, the other seller will be taking on the larger house so you get the better bargain.

If you take a 4% loss on $100,000 home ($4,000) and upgrade to a $200,000 home their loss is $8,000 based on the market before you begin to negotiate. That is a $4,000 bonus to your position.

If you are a first time home buyer the benefits are huge as the home you buy today if kept in good maintenance should only appreciate in good stride over the years to come.

In conclusion with speculation of rising interest rates in the first quarter of 2011, it is a great time to get out and buy or upgrade. For more information on Investment properties, Foreclosures, and Short Sales feel free to contact Gary Busker at 417.353.9189 and he will be glad to assist you in your bargain hunting.

Are you looking to purchase a home in the Springfield, MO area? Gary Busker is a licensed Realtor with Murney Associates in Springfield, MO.  He specializes in residential real estate, first time home buyers, investment properties, foreclosures and short sales. Give Gary a call today @ (417) 353-9189 for all your real estate needs. You can also visit Gary online @ http://pulseoftheozarks.com.