Finally Spring seems to have Sprung in the Pensacola area. Bright sunny days near or in the 70′s, buyers are beginning their search for bargains that may await them. With interest rates still at their lowest in years, prices varying, I finally hear my Pensacola customers talking about the news media’s negative gloom and doom which had been keeping them away from the housing market. Now they are making the decision to see what homes are available that they can truly afford as they are tired of renting – paying for someone’s mortgage rather than their own.

Pensacola foreclosures and short sales are abundant at this early March writing. Are they a good deal? Follow the infamous statement; location, location, location. Purchasing a foreclosed home that needs to be remodeled from the studs out is fine if you can do the work yourself (sweat equity). The rule of thumb is “don’t over improve for the area”. If the average sales price in the Pensacola neighborhood is $140,000 putting in granite counter tops, travertine floors, a California Shower would be too much. This type of remodel will suit a $200,000 – 300,000K area.

Pensacola foreclosures and short sales are being purchased “AS IS”. No one will do any repairs even if the roof is sagging. A buyer has a 10 day time frame once the clock starts to tick to have the home inspected in order to decide to go forward with buying or ask for their earnest money to be returned as the results of the inspection were terrible, beyond the buyer’s ability to fix the problems. Always have a licensed, bonded, insured Pensacola Inspector not a relative or friend. Monies for inspections are not refundable whether the buyer chooses to go forward or not. Be absolutely as sure as possible that a foreclosure is what you want rather than another home where the seller currently resides. With 2009 being the year of “Loan Modifications” for primary residences the foreclosure rate may slow.

I myself am dealing with different Pensacola banks on Short Sales. For the first time since August of 2008 I am finally getting cooperation from the banks. The faster these get resolved foreclosures will not happen. The seller must sign a buyers contract to purchase before the bank will consider an offer. Until the lender decides to accept an offer, others may be submitted as well. The banks look at their bottom line. Be sure to have a pre-approval letter when looking at homes with your Pensacola Realtor. Armed and ready are the new rules of the road.