The first-time homebuyer tax credit deadline came and went. What's next? Distressed properties and they are NOT the cliched, run-down ruins without heat.

 In fact, in November 09 a KW survey documented that 40% of Bank-owned properties (REOs) were first-time home buyers in 2009 and 50% of all short sale buyers were first-timers.  

 By definition, a distressed property is one that was purchased with a loan and the homeowner is no longer able to make their mortgage payment resulting in foreclosure - or if they're lucky a short sale - meaning they owe more on the home than it's currently worth. With a 20% increase in foreclosures from 2009, distressed properties still remain a large portion of home sales and are going to continue well into 2010 as homeowners continue to feel the effects of an economy on the mend.

Here's why a distressed property can be a great option.

  • Low  prices- Buying a foreclosed property is an excellent way to get a home for less. Research shows you can save 10-40 percent over the price of similar properties in a traditional sale.
  • Low  mortgage costs- With rates hovering near historic lows, financing costs are favorable. Since rates are always changing, it's important to begin the pre-approval process so that you know how much you can realistically afford.
  • Options - The number of homes in some stage of the foreclosure process still remains high. RealtyTrac, a site dedicated to tracking foreclosures across the country, estimates that there are approximately 2.1 million homes in some stage of foreclosure in the United States.
  • Motivated  sellers and lenders  - According to data from RealtyTrac, in April, one in every 387 households in the country has received a foreclosure filing. The bottom line is that many sellers are still feeling the pain of a down economy and are anxious to out get from under a home that is putting stress on their current financial frustrations. While it is still an emotional transaction, these sellers are willing to come down on price or even consider concessions such as helping out on closing costs. Banks holding on to large portfolios of Real Estate Owned (REO) properties want to unload quickly - and price these home to sell.

Your best ally when purchasing a distressed property is an expert. To help you make informative decisions, call me for a personal consultation. 610-764-3062  jroosevelt@kw.com

 

 
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11 Comments on The new wave in real estate... Janice Roosevelt, Keller Williams, PA & DE jroosevelt@kw.com

JUN
01
2010
1,907,436 Points 383 Featured Posts Localism Sponsor Outside Blog Attended Rain Camp Called Shot Master

Janice, nice post!  And you raise some great points.  There are good houses out there even without the tax credit.
8:37pm • #1
1,323,868 Points 35 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Janice

Thanks for sharing the information.

Good luck and success.

Lou Ludwig
11:45pm • #2
JUN
02
2010
466,662 Points 2 Featured Posts

Pat, more and more I find buyers want THE right one!
4:10pm • #3
466,662 Points 2 Featured Posts

Lou,

thanks for taking the time to comment,

Janice
4:10pm • #4
JUN
06
2010
699,194 Points 39 Featured Posts Outside Blog Called Shot Master

I think one of the unfortunate advantages is that todays buyers can actually start out in a better neighborhood because of the prices and the lower rates.  The 2nd home is often an affordable 1st.  Foreclosure for some, advantages for others.
1:23pm • #5
627,100 Points 8 Featured Posts Localism Sponsor Outside Blog Hit Router Attended Rain Camp Called Shot Master

Explaining to potential buyers that all the great priced homes sell first, no matter whether they are foreclosures or short sales.  Informed sellers are also pricing their homes aggresively.
8:39pm • #6
305,993 Points 4 Featured Posts Outside Blog Attended Rain Camp

Janice - You are right about deals being out there.  There is always the other side to the coin.
10:50pm • #7
JUN
07
2010
982,319 Points 106 Featured Posts Localism Sponsor Outside Blog

Distressed properties, whether foreclosures or short sales, have been dominating the marketplace in Sacramento for the past 4 years. There's no light at the end of the tunnel here. But you know what they say, it starts on the West Coast and travels to the East Coast.
10:38am • #8
466,662 Points 2 Featured Posts

Lyn, excellent point.
11:18am • #9
466,662 Points 2 Featured Posts

Educating sellers and buyers is SO important in this market, Kay.

Susan, and I think they will keep coming as sidelined sellers start to see the upswing
11:19am • #10
466,662 Points 2 Featured Posts

Elizabeth, I'm afraid you're right. Did you see that 2013 is now a target year for the turnaround?
11:20am • #11

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Janice Roosevelt, OICP ABR, ePRO,Ecobroker

Chadds Ford, PA

More about me…

Susan Manners Team, Prudential Fox & Roach Realtors

Address: P.O. Box 577, 1598 Baltimore Pike, Chadds Ford, PA, 19317

Office Phone: (610) 388-3028

Cell Phone: (610) 764-3062

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