DISTRESSED PROPERTY MARKET

Distressed Property Market – As you are all aware, today’s real estate market differs a great deal from the traditional market.  Following is a simple comparison of these markets.

A Simple Comparison of Markets and Mindsets

 

Traditional Market

Distressed Property Market

Sellers

Seeking to maximize their sales price, taking full advantage of their home’s appreciation

Seeking whatever they can get, or more likely, seeking to get out from under an upside-down mortgage

Buyers

Seeking the right home at a reasonable price

Seeking the very best deal, or even a steal

Lenders

Generally open to making loans and into creating new products,  programs and policies to encourage borrowing

Lending criteria dramatically tightened and loans are hard to get.  Lenders have become sellers of distressed property, either before (short sale) or after (foreclosure / REO)

Agents

Eager to jump in and generally able to master transaction basics

Often not well informed about the unique transaction requirements of distressed properties and often unaware of how best to coach their clients / An informed agent is critical in this market

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2 Responses to “DISTRESSED PROPERTY MARKET”

  1. National Housing Numbers « Mel Kaye & Associates: the RESIDENTIAL INVESTMENT PROPERTY resource Says:

    […] existing-home price1 for all housing types was $159,600 in March, down 5.9 percent from March 2010. Distressed homes – typically sold at discounts in the vicinity of 20 percent – accounted for a 40 percent market […]

  2. Shak and Jill » Reality Still Escapes Sellers Says:

    […] a chart about the difference in a traditional real estate market versus a distressed market.  Go look it over. It is our reality today.  And may be that way for several more years. Technorati Tags: housing […]


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