Not to minimize the impact a foreclosure can have on a homeowner, but in many ways foreclosed properties are exactly what the Phoenix real estate market needs.
Reality is tough to swallow. Many sellers still suffer from “but my house is better” syndrome when pricing their homes for sale. These same folks are looking at the bank-owned homes in their neighborhood and ignoring the signs under the guise of “but the bank’s desperate to sell.”
If you’re not desperate to sell, or at least fairly motivated, you shouldn’t be trying to sell. It’s about this simple. Testing the market at above-current market prices is a waste of time – primarily yours, as you keep your house showing ready for buyers who never are going to materialize.
Short sale listings can be disregarded because the list prices are imaginary. But REOs? That is where the market is heading. Face the reality, price accordingly and condition may carry the day toward a sale over a bank-owned home.
Foreclosures are good for this market because they are attracting buyers. Where willing buyers and motivated sellers meet, the market bounces off the bottom. Price recoveries will lag but anything that brings buyers off the fence they’ve sat on for two years and into the market only can help in the long run.[tags]bank owned homes, Phoenix real estate[/tags]