Recently our real estate market has been significantly affected by bank owned foreclosed properties. I have spent significant time familiarizing myself with these properties and found them to be in surprisingly good condition. No longer does “foreclosure” mean that the interior has to be gutted and redone. The majority of these properties are basically in “move-in” condition with extremely favorable price tags.
The biggest benefit to purchasing these bank owned properties however, comes when escrow is opened and buyers actually have the right to a preliminary title search to detect any clouds on the title. If the title search reveals any irregularities, the Seller (bank) will normally clear these issues up prior to close of escrow. If not, buyer has every right to back out of the purchase. Another protection offered to a buyer is the fact that they, in most cases, have the right to perform inspections of the property. Banks most often do not do repairs and offer these properties “As Is” but at least the buyer has knowledge of what he is getting into and, if there are significant repairs noted, can rescind his offer to purchase or negotiate with the bank to come to a compromise.
Protecting yourself as a buyer should be your main concern when purchasing property. Bank owned properties offer great pricing and buyers can feel confident about their purchase knowing all of the necessary precautions have been taken.
For more information on foreclosed, bank owned properties, please visit my website at www.renoforeclosureexperts.com or give me a call at 775-843-8187.
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Bank owned foreclosures prove to be best deals for buyers and investors in most areas of town, however, they are forcing resale home listings to be competitively priced. The reality for sellers in our current market is that foreclosures are creating comparable sales that appraisers cannot exclude.
My comparative market analysis was based on sold properties from the Multiple Listing Service since April 1, 2008. The following is a breakdown of average sold price per square foot in each area:
- South Meadows (Double Diamond, Damonte Ranch): Foreclosures $142/sf. Resales $164/sf
- Northwest Reno: Foreclosures $149/sf. Resales $157/sf
- Spanish Springs West: Foreclosures $134/sf. Resales $144/sf
- Spanish Springs East: Foreclosures $128/sf. Resales $142/sf
- Stead: Foreclosures $110/sf. Resales $113/sf
- Cold Springs: Foreclosures $105.00/sf. Resales $124.00/sf
For example in Double Diamond, a bank owned 2000 square foot home would be priced at $284,000 and the same resale listing would be $324,000. Although foreclosures may be a great deal as far as price, one thing to remember is that, in most cases, they are sold “as is” with no repairs.
I run the original “Foreclosure Home Tour” which is an afternoon bus tour of pre-screened foreclosed homes. To join the next tour or view the upcoming schedule of tours or for the latest information regarding foreclosures, please visit my website at www.renoforeclosureexperts.com.
Popularity: 11% [?]
So the media tells us that foreclosures in the Reno market are up 139% from March 2007. That sounds like such a astronomical number, but what does that really mean? Is it 500, 1,000, 2,000 homes…NO, for the same month in March of 2008 it means 55 homes. If we just see the percentage number of foreclosed homes, it’s scary. However, if the percentage number actually translates to 55 homes in the Reno market, then is not that scary. Is it? Buyers are looking for the foreclosure “deal”, but there is only a limited number of foreclosed homes, only 55. Deals are there. Deals are ready to be made. Whether it is 1 of 55 of foreclosures or if it’s the dream home you wanted two years ago, but couldn’t afford. It’s time to wheel and deal, not only with the banks but with the homeowners themselves. Actually in this market, you might be able to strike a “better” deal with someone that isn’t in financial distress. If a homeowner wants to sell their home during these market conditions, then they’re ready to sell and move on. Most sellers will look at all reasonable offers very closely and decide if it is something that they might be willing to accept or not. So, it doesn’t hurt to make any offer…you never know what you’ll get.
Additionally, I would personally look at homes that aren’t in financial distress because typically the people that live in the home are still taking care of the home. And, more importantly willing to address problems discovered during home inspections. This is truly a buyer’s market and the potential to make the “deal” is greater than it was a year ago.
Popularity: 4% [?]
Wednesday, August 6, 2008 By: Mona Tatro
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