Austin Home Buyers – So You Want a Deal?
I have had a lot of buyers in the car this summer and have emailed and talked on the phone with many more. Most utter the same words – “I’m looking for a great deal.”
Don’t get me wrong, there is nothing bad about wanting a great deal, but are great deals really available in the Austin market? Some are thinking short sale, some foreclosure and some are thinking about distressed properties. Let’s break these down a bit more.
But first, let’s look at why people think they can get great deals on Austin homes. When you listen to, watch on TV or read news about real estate, what is it that is being reported? In general, nothing but bad news. Sure, home sales in California or Vegas may be picking up a lot, but prices are unbelievably low in many cases. This is good news?
Because of what the national media is reporting on home sales, many people think that real estate is in bad shape everywhere. This just isn’t true in many parts of Texas, including Austin. Sure, sales are down compared to 2006 and even 2008, but we’re not suffering line many other cities. Austin home prices are only off slightly from those in 2006.
Let’s look at short sales as possible great deals. An Austin short sale is probably the second best opportunity these days. Having said that, if a short sale hits the market and it looks like a really great deal, it is usually gone in no time. Also, it often takes a very long time to hear back from a lender about short sale approval. Many buyers are not willing to wait 60+ days for a response.
Many home buyers think foreclosures can get them great deals. Keep in mind that many foreclosures involve homes that people bought fairly recently with little or no money down. This means that banks owning these foreclosed homes have little room to come down in price without taking a big loss. Many are not willing to do this. Also, the condition of many foreclosures can be very poor.
How about distressed properties? If a property owner is in financial distress, he may not have the money to take to the closing table to sell below market value. In this situation, many homes will move to short sales or foreclosures.
So you still want a deal? Read the next post.
