As short sales increase, many of us are tempted to be drawn to view such events as a cause of, or contribution to, the financial crisis, astounding foreclosure rates, and/or the general decline of the housing market. Even after hearing both perspectives, as presented in an unbiased view by some news reporters, media, or the internet, many still tend to focus on the negative attributes associated with a perceived dilemma. In this way we are only viewing the glass half empty.
What many fail to see are the various benefits that can come from seemingly negative developments. While short sales may present the opportunity for cash-paying investors to outbid would-be home buyers, what is often overlooked is that someone is buying these homes. Through taking a half-glass-full approach, the various beneficial aspects of many housing market events, short sales included, can be realized.
The increase in short sales in Nevada was discussed, in a recent report presented by Las Vegas Channel 8 News Now, as entitled in their print version, “Investors, Future Homeowners Battle for Keys.” As the title of the article suggests, yes, homebuyers are fighting for keys, in the sense that ‘cash-buyers’ are almost always certain to outbid those needing to finance their purchase. However, as this occurs, home values rise, the market improves, residents begin to inhabit once vacant homes, and communities begin to flourish again.
Another often overlooked consideration involves the actual capacity of short sale buyers, namely investors, to control the housing market in a given area. Sure, many are cash-paying investors, but many are homebuyers needing to finance their purchase, just like you. Investors can only purchase the homes they may potentially purchase if they can locate them. Mortgage-backed homebuyers, though, also have the ability to search for homes too. In some cases, these buyers may even have access to certain homes before a potential investor.
The point is to not get discouraged. So what if you were outbid on a particular home; it simply wasn’t meant to be. Move onto the next. Speak with your realtor about alternative search techniques. Talk with your loan officer about available loan options. The housing market in Nevada is improving—and by viewing the purchase of a home with a glass-half-full approach, you may find yourself not only in the home of your dreams, but also contributing to this overall improvement of the market.
If you have housing market or mortgage lending questions,
contact Casey Moseman at (702) 271-1274