Foreclosure Opportunities are Very Real

This real estate market offers great opportunities for buyers. Prices have fallen dramatically, mortgage interest is favorable, and there are plenty of homes to choose from. Many homes are “short sales” and many others are bank owned foreclosures. Foreclosures offer the best possibilities for buyers. Only about 10% of short sales wind up selling before they become foreclosed by the bank. Here are some pointers:

Buyers need to be pre-approved
Many banks want the buyer to finance through them
Expect competition and multiple offers
Banks won’t accept offers contingent on the sale of your home
Best deals are generally the homes that have been on the market the longest
Foreclosures typically sell 10-20% below asking price
Make sure to pay for an inspection
Banks don’t usually make repairs or corrections
Banks will make counter offers
Some banks want offers submitted by a REALTOR®
Generally, banks want to close in 2-6 weeks.

Here’s a video covering the above points: http://www.youtube.com/watch?v=R4SjURUCQDE

Summary Sales for Q1 2008

The average sale price during the first three months of 2008 was $604,508 which represented a decline of 11.6% compared to the same period in 2007. Total sales dropped 38.6% and the time on market rose10.4%. These are all solid indicators of the adjustment taking place in resale homes across O.C. The experts tout that we have been in a recession for the past 4 months and will likely continue for the balance of the year. I think it has less to do with the recession and more to do with lending and buyer confidence. About 20% of the homes seem to fall into the category of short sale or foreclosure, which really plays nicely into the buyers’ market. Overall, I say the market has great opportunities for buyers and investors alike. Real sellers will sell and real buyers will buy as they always have. For details on foreclosures and auctions call 714-264-5964, or email tom@tomlevitt.com .