According to the U.S. Treasury Department, another round of foreclosures is on the way in 2010. For over the past 2 years, we have all been hearing about foreclosures and people loosing their homes and it appears we will be hearing it for another year or two. Foreclosures are a huge market way to big to ignore these days.
Just look at the statistics. In some states like CA, NV and AZ, foreclosed properties account for about 65% of current sales. While some agents I know have decided to avoid foreclosures because they are too hard to work or not worth their time, I see them as a challenging opportunity to find great deals.
I am not speaking from theory but my own experience. In January 2005, I purchased my first home in the Austin area and it was a REO (real estate owned) property owned by a bank. The home was close to one of the largest high tech companies in the area and where a new toll road was about to open. The home was located in an older established neighborhood on the up swing with may owners improving their properties and as a result my home's appraised value increased 33% in the first 3 years. I have always believed you make money on something when you buy it not when you sell it. If you have the chance to buy low, hold onto the property while riding the market and sell high that is the way to make money in real estate.
I look at foreclosures as another avenue in the property search. As a buyer, you have a chance to get a great deal on a home that many people would over look or not even consider. Also on the flip side you are helping an owner by taking the property off their hands while reducing their stress and financial burden. Again, buying a foreclosed home should not be stereotyped as a negative thing but as an exciting opportunity.
For a free list of foreclosed homes in the Austin area, please email me your contact information and I will be glad to assist you.
Are you looking to buy or sell a home in Austin, TX? If so, contact me I would love to work for you. Email me for a free comparative market analysis for your home! Call Amy 512-507-5053 or email me at amy@dowerrealestate.com Oh by the way, I am never too busy for your referrals!
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