With foreclosures continuing to soar as a result of slow sales, ballooning payments and increasing inventory, sellers(institutional and consumrer) need to be as creative as possible to identify ways to get there properties sold. Foreclosure are in many area of Miami Dade double and triple of what they were this time last year. Predictions are those percentages will continue to rise as unsold inventories of condo's increase, interest rates of these properties continue to readjust(upward) and lenders tighten credit lending standards for buyers entering the market.
Given, the many challenges that property owners are now facing to sell condo's, auctions are standing out more and more as a highly effective method to sell there units in a timely manner for the highest price the market will bear. Of course the biggest challenge for owners of many of these units is being able to accept a price anywhere close to what they paid, especially if their unit was purchased during the previous 4 years. Institutional clients may be able to absorb significant losses, but the individual investor may have to face making a very difficult decision when deciding how to sell there unit in this environment. For most, it means sitting on the market for endless periods of time, lowerining prices again and again, renting them out at considerable losses or in many cases, just walking away altogether.
While auctions may not bring the dollar amount that a seller is looking for. In todays market, if one has the financial ability to sell at the current market price(via auction), it can provide a solution for moving the property and moving forward with your life
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