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Replies (7)
- Sharon Lewis, "Sharon Lewis"
- Contributions:3923
I dont think all foreclosures are below market value, many I see are at market price.
- Colorado Expert Jeff Hansen, Realtor, "jeffhansencolorado"
- Contributions:105
Like any investment, there are good ones and bad ones. I see it this way, if I am working with an investor buyer, I certainly do not leave the foreclosures out of the home search, but I don't specifically target them either. I look for the great buy in any of the property type searches.
- Todd Neal, "Todd M Neal"
- Contributions:20
I think Rachel makes a really good point, overall Banks seem to be more discriminating about when they invest in a property to achive maximum return and when they let it go as is and priced for a quick sell by an opened-eyed investor.
In my market, the Chapel Hill/Durham/Raleigh/Hilsborough NC area, I find the best foreclosure deals are those properties that are unique and hard for the local agent to comp and price via BPO with confidence. When in doubt I think they skew prices downward.
To Sharon's point, when the foreclosed property is similar to surrounding properties, such as townhomes and cookie cutter homes, they tend to be priced at or near market.
In my market, the Chapel Hill/Durham/Raleigh/Hilsborough NC area, I find the best foreclosure deals are those properties that are unique and hard for the local agent to comp and price via BPO with confidence. When in doubt I think they skew prices downward.
To Sharon's point, when the foreclosed property is similar to surrounding properties, such as townhomes and cookie cutter homes, they tend to be priced at or near market.
- Natasha Kennedy, "Natasha Kennedy"
- Contributions:487
I don't see any great deals on foreclosures anymore as it was 2 years ago, even a year ago you still can find a bargain.
- saii
- Contributions:6
I heard that bank has so many flore closures. But they are relasing in the market. Why is that?
- S. Chris Webb, "PHX AZ RE BROKER"
- Contributions:411
Yes the banks are doing small improvements in some cases. However, at least in AZ, foreclosures aren't appearing on the market as REO's very frequently any more, fixed up or not. Many of them are being sold at courthouse steps for more than the bank would take them back, and some for more than market value. Finding a good investment in a foreclosure is not nearly as easy right now as it was a year ago. In fact it's downright difficult to get a great deal. Not impossible, it just takes a lot of perseverence, and expect a lot of full price (or more) offers to not be accepted.
- Colorado Expert Jeff Hansen, Realtor, "jeffhansencolorado"
- Contributions:105
I agree, there is not very much negotiating going on once a listing price is set. And for that reason, homes listed by individuals can, at times, be better deals. Doing your homework and looking for the best fit is the best bet, now more than ever.
The New Foreclosure
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- 5.0/5.0
- (1 review)
Contributions:17However, if you are an investor, looking to do a flip yourself, this new strategy is creating a shortage of opportunities. Often properties that are not renovated by the bank have structural issues or more expensive repairs than the bank is willing to spend so that leaves a larger bill for the investor too.
Foreclosures are still priced below market value and less than the average person is selling their house for, so they are still a good bet for homeowners. Just be sure to have a good inspection so the new paint and carpet don't cover any unseen problems.
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