Even with the increasing demand for existing homes in Florida, purchasing a foreclosure can still be a fantastic deal! You must remember, the days of offering 30-50% off the asking prices, are over. Most banks are no longer even counter offering on these offers. When you compare today’s prices to the prices in 2005-2006, these homes are all absolute steals!
Daytona Beach Real Estate Foreclosures
Palm Coast Real Estate Foreclosure
In many cases, you can still offer 10-15% under the asking price and get a counter offer or sometimes even an acceptance. It totally depends on the condition of property, location and age. In some instances, you can still get homes for far less. Usually these properties generally require extensive repairs, are of an older age and many cannot be financed for these reasons. This puts most buyers out of this market, so the banks will negotiate even more on these ‘super’ distressed properties.
St Augustine Real Estate Foreclosure
The demand for these discount homes has gotten quite heated. Many times, on a highly desirable property, a bidding war will break out. There can be multiple offers and the bank will come back with; ‘give me your highest and best offer’.
What do you do when this happens? It is up to you. You must remember if you are financing that the property must appraise in order to obtain financing. You cannot spend $10K more for a house and expect the bank to finance it. Those days are over.
Even with this demand, the deals are still out there. Houses in the higher price ranges are now starting to come available, so if you are looking for a property in the $500K-$2 mil range, currently there’s an exceptionally nice inventory available. If that is your price range, do not hesitate because these homes are selling at an extremely rapid pace, sometimes in just a few days!
Sometimes you have to make a decision and stick with it. This is not for the faint of heart or the wishy washy. We can help you make an informed decision.
Here are just a few benefits of purchasing a foreclosed property:
1. A foreclosed property can be an excellent way to own that house you have always wanted that now fits into your budget.
2. The foreclosed properties that belong, to the government or the banks, there is virtually no risk in buying such a property, since you will receive a free and clear title with title insurance.
3. The returns on a foreclosure property can be assumed to be higher once the economic crisis is over. If you decide to sell later, you should realize a greater return on your investment.
4. Sometimes a profit can be gained from buying a foreclosure property at a low price and then selling it at a higher value in the open market. This is sometimes called, ‘flipping’ and you usually have to buy a property that needs some renovation and have the necessary skills to accomplish this. Again, if you do not have the skills to do this, do not try this.
Even though the term foreclosure has a negative connotation to many, there can be many benefits to reap from purchasing a foreclosed property. Please contact one of our Real Estate Professionals today and we will be happy to assist you through the process of acquiring that ‘perfect’ home.
A foreclosure is a legal term that means that the bank or lending company that holds the lien on the house or property has taken possession of the property in order to recover part or the full amount of money owed on the property. In more straightforward terms, it means that if someone has taken a mortgage to buy a house, they have to pay the mortgage as agreed. In the absence of timely payments, the lender, who holds the security interest or lien, on the property, will take possession of the real estate in order to recover monies owed. Once a property is foreclosed on the home is put on for sale at a public auction with the highest bidder getting the house. Most times these properties are listed with a local realtor.