Foreclosures in 2009 - A Buyer's Market

The Associated Press reported only a few days ago that total foreclosures in 2009 were at a 21 percent increase over 2008 and a 120 percent increase over 2007. This is according to a foreclosure sales site - Realty Trac - posted in their year-end report for 2009.

Fourth quarter foreclosures decreased 7 percent from the third quarter but were still up 18 percent compared to 2008. December 2009 foreclosures were up 14 percent over December 2008.

For those I serve as a licensed Realtor in TN and GA, Georgia was listed as one of the top 10 states in foreclosures. But I've seen personally in TN many foreclosures, some competing with homes I've listed.

Many delinquent loans continue to hang a dark cloud over the housing market. Of these, a fair number will end up as foreclosures in 2010 an as these homes work through the lenders' backlog.

What does this mean for you? Well...it can mean a lot of things.

If you are listing a home, it will be competing with distressed homes. If those homes are not in foreclosure yet, many sellers are still desperate to sell their homes and avoid foreclosure. They will price accordingly. Your home must compete with these.

You can take advantage of low-cost updates (some listed on this blog - such as painting) and you can price your home at a reasonable rate based on comparables which I will be happy to provide.

Not all news is bad. Remember that when you purchase your next home, you will be selecting from a market where others have to compete with distressed buyers and foreclosures, so you may benefit when you are on the buying end of a transaction.

If you do have a home to sell, I will be happy to help you navigate the pricing of your home and to offer suggestions on pricing that will assist you in gaining a sale. Less than 50 percent of homes on MLS are selling, so you must price the home correctly using appropriate comparables. If you have no offers in the first two-to-three months, the market may be tellling you that your home is overpriced. I will also be honest with you about ways you can make your home more attractive in the market, whether it is improving curb appeal, cleaning out clutter, providing inexpensive updates or being realistic about price.

Call me, Pat Branham, Affiliate at Exit Upward Realty in Hixson, TN. Our office is located at 6726 Hixson Pike and my office number is 423-847-8001.