Real Estate Pro Articles

Foreclosed Homes Sell For Low Prices

[Valid RSS feed]  Category Rss Feed -
By : Karim El Sheikh    99 or more times read
Foreclosed homes these days seem to be a dime a dozen – both in price and in occurrence. Even in the richest neighborhoods in the country, it’s not surprising to see four or five foreclosure signs out front, advertising the building’s vacancy and the misfortune of its previous owners. Virtually anywhere in the country foreclosed homes can be found – and this is to the great benefit of buyers.

Foreclosed homes often sell for less than half the normal market rate. A lot of this is due to the fact that buyers who are looking to sell their home on the regular market for a profit determine the normal market rate. In the case of foreclosed homes, however, it’s more along the lines of the bank or lending institution in charge of the foreclosed home trying to get rid of the property as fast as possible. And in order to sell something quick, the natural response is to cut the price. Thus, the desperation of banks and lending institutions to get these properties off their hands can result in big savings for the average buyer.

The crashing of the housing market was bad news for the majority of homeowners, but since homebuyers are playing an entirely different game, the fact that there are so many foreclosures and the overall value of property has dropped, this is the perfect time to buy. There is an expected peak in foreclosed homes occurring in 2011, so be sure to seize this chance while it still exists.

Foreclosed homes can also be purchased at local sheriff’s auctions or foreclosure auctions. Both kinds of auctions refer to the same thing, the auctioning of houses that have been foreclosed upon. The major difference is that some states require the sheriff to be present when selling property, and hence it is called a sheriff’s auction. The houses that get sold at these auctions are the ones that the bank or lending institution for whatever reason couldn’t get off their hands, and in order to avoid getting hit with property taxes or having to pay a realtor are getting put up on auction for quick sale.

What this means for a buyer is that there are incredible deals to be had at these auctions. It’s not unusual for a foreclosed home to go for less than a fourth of its market price at these sales. The bad part is that buyers often aren’t allowed to do home inspections before buying the property. There are no laws against simply showing up and looking at the house from the outside, of course, but there’s an element of buyer beware involved with an auction and you could end up with a property that requires some work done on it. The good news is that even with these repairs, the houses at auction go for so cheap that it’s still likely you’ll come out on top after the repairs are done.

To learn about housing auctions where you can buy foreclosed houses for cheap, be sure to look on the Internet and check out your local city hall. You might be surprised with how many foreclosed houses are up for sale these days at auction!
The Agent University offers the real estate training you need to be a leader in your community. Become a Certified Foreclosure Agent or a Certified Short Sale Agent and be the go-to expert for homebuyers.

Related Articles

Print This Article
Add To Favorites




© All rights reserved to Real Estate Pro Articles