Being six months behind the market is a tough position for buyers. We're seeing an increase in individuals looking for the 2 bedroom $50,000 condo in a nice neighborhood. One could have found that property 6 months ago, but now they are getting VERY rare in Ft. Lauderdale. They still exist, but are typically on the market less than a week and usually have something wrong with them. (location, high maintenance fees, structural problems, etc.)
So what is the best buy today? "Short sale" properties seem to be priced the cheapest because realtors are avoiding them. Most buyers are too impatient to stick with the closing process and break the contract before approvals. HOWEVER, the bank expects the property to go for market value, so offers need to be reasonable. Appraisals are the biggest issue in successfully closing the deal.
Foreclosures at the $50K level have turned into price wars. So if you are a buyer looking at a $50K-type property, expect that the property will go for 10% or more higher than asking price. The smart buyer will consider all types of properties on the market, because deals are only deals if they exceed your buying expections.
