Home Buyers Readily Embrace Foreclosed Homes

Home Buyers Readily Embrace Foreclosed Homes

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The spring home buying/selling season is offering a mixed bag of news as home prices continue to fall and as buyers carefully weigh their options before jumping into the market. In some communities, home prices have retreated 50-60% from their all time highs while other markets have reported slight decreases over the past few years.

Interest In Foreclosed Property Rises

foreclosureA recent survey by Harris Interactive has revealed that one trend is on the way up: home buyers are showing an increased interest in purchasing foreclosed property,  with more than 50 percent of U.S. adults willing to consider buying a foreclosed home, and 40 percent seeing foreclosed properties as a bargain opportunity.

The Harris survey was conducted on behalf of RealtyTrac, which tracks foreclosure data across the U.S., and Trulia.com, a real estate search site.

What About Hidden Costs?

Although home buyers have expressed interest in foreclosed homes, many are concerned that these types of properties could come with some hidden costs, including unexpected repairs. Some of those surveyed wonder if the home’s value will also decrease given that it was in foreclosure.

“As interest in purchasing foreclosed homes increases, competition is heating up with traditional sellers competing with bank-owned prices. Across the U.S., 24 percent of existing homes for sale on the market have seen at least one price reduction in order to stay competitive, creating a tremendous opportunity for consumers to buy homes at significantly lower prices,” said Pete Flint, co-founder and CEO of Trulia. “Competition amongst sellers, along with the newly created economic incentives, has created the most significant discounts that we’ve seen in decades, presenting opportunities for first-time home buyers and families looking to trade up to a bigger home.”

“Although consumers are aware that there may be some challenges involved in purchasing a foreclosed home, they are very interested in the bargain opportunities available in the foreclosure market. People want the best deals they can find and they are willing to go outside of their comfort zones if it means they can buy more home for less money,” said Rick Sharga, senior vice president of RealtyTrac. “Consumers who educate themselves on the opportunities available will likely be rewarded.”

Give Them Your Best Offer

Of course, even when a home is in foreclosure, offering your best offer up front can increase the chances that you’ll come away with the foreclosed home of your dreams especially if other bidders are preparing their offers. Always have foreclosed property expected and hire an attorney experienced in foreclosure purchase to ensure that your rights are always protected.

Adv. — If you are shopping for a foreclosed home, you may need to hire a contractor to help you whip the property back into shape once you take possession of your house.  Shop around for financing too as mortgage rates have never been lower; speak to a home loan expert today!

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Categories: Home Buying

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