Are you looking for a deal on a new home. The prevailing formula that home buyers and investors are looking for have a common characteristic. Is the home I am going to buy a good deal?Motivated sellers are what driving the market. And yes, banks who have REO property are considered motivated sellers. These are people that are willing to deal to sell the home, not those who are listing to see what happens or still expect 2006 prices.

Lets face it, all these government programs sound great on the evening news, but realistic home prices sell homes.

I learned a great lesson in college by a professor of marketing. When you go into McDonald’s, you will not buy a $10 dollar hamburger. It is just not going to happen. Yet if you are in a fancy restaurant, you would be confused by a $2.49 quarter pound burger.

Perspective is everything. If you think you are being overcharged you pull back and if you feel you are getting something inferior you will also postpone the buying decision.

That is why capitalism works so well. If the markets had their way, we would have been out of this mess a while ago. Prices would have fallen drastically as the bubble burst and then buyers would have raced in to get the deals. It would have been a painful and quick experience.

Instead we are in a period of slow decline as buyers wait for the next big government program, price drop, or indicator that we have a bottom.

It is the death of a thousand cuts.

So what markets where motivated sellers are dominant. They will drive prices to the point that buyers will know they are getting a fair deal and have the potential to make a profit.

Top 10 Smart Markets To Purchase A home In For 2009

Las Vegas
Sacramento, Calif.
San Diego, Calif.
Los Angeles
Detroit
Phoenix
San Francisco
Washington, D.C.
San Jose
Atlanta

via Forbes