Bank Owned vs. Private Party
I have to wonder where the belief began that the only great deal in Real Estate is a bank owned property. Granted, the bank does not want homes sitting on their books endlessly, however, they are not so desperate that they are going to sell it for pennies on the dollar. I often find that typically one of the first questions a new buyer will ask me is: "do you have any bank owned properties?" Do you know how I answer? "Why is that important to you?"
Interestingly, as I drive around previewing homes and showing clients I am seeing much better pricing in the private sector. I realize that the media purports the numerous people who are upside-down in their homes, many of which are handing their homes over to the bank. However, there are just as many people who simply want to move. They have lived in their homes for several years, have equity and have priced their homes to compete well on the market. As I see it, these are much better deals than arguing with a bank who is trying to minimize their losses. The other interesting point in this is that the sellers of homes with equity tend to be much more realistic with negotiations and show more willingness to make repairs if necessary.
The way I see it, with a high inventory of homes there are plenty of ready, willing and able sellers available that are much more negotiable than banks!