Actually there are not any super good deals now, since the banks are
getting smarter, and also for short sale and foreclosure, the bank
would order a BPO, it is a third party appraisal for the property,
then they would kind of know the price range. I would say in this
neighborhood, if you get around 5% off the regular sale price, it is
already a super good deal. Since the short sale has a long and painful
waiting time and foreclosure you have to pay up to 6 months additional
assessment according to Illinois law.
The interest rate has already gone up compare to Nov last year, there
is some statistic showing that for a $100,000 loan, 30 year fixed,
total cost of interest in April 2011 compare to November 2010 is
around $14,000. That is a big difference. So I would say and all the
experts all predict that this is the good time to purchase real
estate, you can read wall street journal, or any other magazines, but
nobody would say it is a real bottom as nobody knows. This is the same
as to purchase stock, can you get at the real bottom? Since real
estate is a longer term investment, it is a good time to buy now and
all the regular sale price you see now, would not be in that rank
anymore in the future.
Another reason you would not be able to get half price deal is there
are so many people watching on the market, especially this
neighborhood, if there is something more than 10% off the regular
price, I promise you it would get contract within a couple of weeks.
For example, the one bedroom at the 8 E Randolph listed for $209,000 which is 87% of the regular one bedroom unit. I called the listing agent the second day after the price deduction, then only heard that there was already a contract, right now this unit is still pending, I could post the close price when they come out. The contract date was in April.
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