It's hard to say. The right locations and right prices are going to sell regardless of economics and market woes. The higher-end homes are taking longer to sell. There is just less demand for $1M+ properties, and 3 to 4 months ion the market even in prime locations seems to be a fair expectation.

It's not unusual to see a slow in the rental market and real estate market around tax day, graduation season, back-to-school season, and then the holidays. Basically every three months then you'll see a wax and wane regardless of the economy.

In lower-priced markets I've seen fewer new listings this month. Some feel there will be a new wave in June of short sales and REOs. It makes sense that there may be peaks every 90 days based on the foreclosure process.

Some buyers have a misconception that in a buyer's market, low-ball offers are the way to negotiate a sale.

Ultimately, a house will sell for the market value. Therefore, looking at a listing price and automatically deciding to knock 20% off, thinking the seller is desperate to sell, is not a sure-fire way to write a successful offer.

Feeling out the reason behind the sale is key. If it's an REO, obviously the bank is selling the house to offset a loss. A short sale isn't a far cry from that. A traditional sale is the most flexible. Any number of reasons can be involved, so have your agent inquire about the seller's circumstances and motivation level.

If I can't get a loan from a bank, what are my options to purchase a foreclosure or for sale by owner?

Without a bank loan, you have very few options. A foreclosure/by owner really isn't one of them.

Your options are: owner financing, private financing, or rent with an option to buy. In slow or depressed markets you may be able to find some owner-financing options, but overall they are few and far between. Some owner-financed homes may be offered that way as they are not in a condition to qualify for a standard loan.

Private loans are quite difficult to come by due to the economic pressure, and they come with high price tags–8 to 12% interest rates.

I'd recommend working on getting your credit and cash situation to a point where you can get a loan from a bank.

This is short-sale speak for a market analysis. A Broker Price Opinion is ordered by a bank that is considering the acceptance of a short sale offer. A broker or independent agent will evaluate the home (in person) and check comps in the area to provide feedback to the bank on their opinion of the current market value. This is done before a bank will approve the short sale and respond to prospective buyer.

It's quite common for an REO to have requirements when it comes to who generates the preapp letter. They may require the letter be from a direct lender/bank or even from a particular agent of particular bank. Usually they require this letter to be submitted with the offer, though ultimately you can use whatever lender you wish to work with for the loan.

Beware - If you are shopping the REO market and qualify through five different banks (are there that many left?) to make offers on different properties, each qual process will hit your credit score. If you start with a 720 score, it may reduce your score in the end to below premium rates! So choose your REOs with caution and don't shop lenders/brokers too freely.