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Crisis in Foreclosure Homes Creates Buyers' Market in Fort Wayne



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By : John Cutts    99 or more times read
With the crisis in foreclosure homes continuing to shape the housing market of Fort Wayne, Indiana, market analysts are advising home sellers to price their properties right to avoid having to go lower than what is reasonable for the homes they are selling. They also stated that currently, home buyers have more edge in negotiations.

According to housing market analysts, Fort Wayne foreclosures, along with short sales, have depressed the values of properties. They revealed that most small houses have maintained their values, but the medium and upper level home types have been hit hard by the housing industry crisis.

Housing statistics also showed that values of regular residential properties and foreclosures in Indiana have decreased in value from 4% to 12% compared with four years earlier. Average prices of houses for sale peaked during July to about $118,000 which is considerably lower than the average peak price of $124,000 during 2005-2007.

For sellers, analysts have stated that they should get the pricing right since the crisis in foreclosure homes will make it difficult for them to get something out of their sales if they failed to come up with the right listing price. They reported that in 2010, home sellers have gotten around 94.2% of their original listing prices.

Sellers are also reminded that they are competing with a considerable number of low-priced bank foreclosures in the selling market, so home sellers should use the figures of homes sold in the past two or three months to come up with a listing price. Several analysts have suggested that a listing price that is 3% higher than similar properties should be the limit.

The ideal asking price though, is between 1% and 2% higher than the price that the seller really wants to get for his home. In addition, sellers should consider potential concessions that buyers would ask for after the offer has been received. These concessions may include paying buyers' agents some incentive or taking care of buyers' closing costs.

Analysts stated that the down payment required from buyers have gone higher due to existing regulations and because of the crisis in foreclosure homes. They reported that closing costs are taking a lot out of buyers' pockets, so most of them are looking for closing cost concessions.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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