When in the Course of human events, it becomes necessary for one people to buy and sell real estate...
Did you know that over the last few months, bank-owned (lender-owned) properties, also known as REO (Real Estate Owned) constitute approximately 1/2 of the listings in the metro Phoenix area? Short Sale listings (a home priced for less than what is owed on it) make up another 1/4, leaving "regular listings" as the balance-another 1/4! Has there ever been a time in history when this has happened? I think not!
This is a "Qualified Buyers' Market" for sure.
With that said, there are some interesting ways in which business is being conducted here in the Valley. Usually priced under market value, short sale listings are generating so much interest that the Sellers are creating their own "mini-auction" - bidding wars abound, buyers with offers on multiple properties anticipating which one gets bank approval first. Buyers may feel like they are spinning their wheels, but for the persistent ones, they may very well end up with a great deal in their pursuit of Happiness.
Working with bank-owned properties requires much diligence on the Buyers' side. The banks have their own addendums to add to the transaction, often redundant and seemingly meant to cover their butts. It is typical for the Buyers to receive an answer from the bank (who is the Seller), within days to a week so there isn't the long waiting game like Short Sales. Keep in mind, those "mini-auctions" exist with bank-owned as well.
A "regular" listing has its advantages whether you are on the Buyer side or on the Seller side. Assuming the Seller prices their home to sell in today's market,(and guess what? The comps (comparables) used to price the home include those recent Short Sale and Bank-owned property sales!),they do draw attention as they are the exception to the others now! Buyers love it as they don't have the lengthy waiting period that you do with Short Sales or all that lender-owned property paperwork to deal with. For the Seller, it makes putting your home on the market now as a "regular" listing not such a bad idea when you have equity. The additional $$ they feel they won't make from the sale of their home now could be made up for by taking advantage of those "deals" offered to them as Buyers.
I use this analogy: Buying real estate right now is like a trip to Vegas-You can do some window shopping-get to see some great shows, pick and choose your listings like you're at a buffet and place a bet knowing that you could win or lose...however, the odds are that it is a pretty safe time to gamble right now!
Enjoy your Life, your Liberty and your pursuit of Happiness!