So the media tells us that foreclosures in the Reno market are up 139% from March 2007. That sounds like such a astronomical number, but what does that really mean? Is it 500, 1,000, 2,000 homes…NO, for the same month in March of 2008 it means 55 homes. If we just see the percentage number of foreclosed homes, it’s scary. However, if the percentage number actually translates to 55 homes in the Reno market, then is not that scary. Is it? Buyers are looking for the foreclosure “deal”, but there is only a limited number of foreclosed homes, only 55. Deals are there. Deals are ready to be made. Whether it is 1 of 55 of foreclosures or if it’s the dream home you wanted two years ago, but couldn’t afford. It’s time to wheel and deal, not only with the banks but with the homeowners themselves. Actually in this market, you might be able to strike a “better” deal with someone that isn’t in financial distress. If a homeowner wants to sell their home during these market conditions, then they’re ready to sell and move on. Most sellers will look at all reasonable offers very closely and decide if it is something that they might be willing to accept or not. So, it doesn’t hurt to make any offer…you never know what you’ll get.
Additionally, I would personally look at homes that aren’t in financial distress because typically the people that live in the home are still taking care of the home. And, more importantly willing to address problems discovered during home inspections. This is truly a buyer’s market and the potential to make the “deal” is greater than it was a year ago.