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Posing a Question About Foreclosures

This is a question that interests me, and I wanted to see if I could get some responses. Lately, it seems that I have been inspecting one foreclosure after another. Half are for new investors, the other half seem to be for buyers looking for deals. This past week I was reminded of this question when I spoke with the Realtor after I had finished my inspection (of a home that was not in foreclosure). He mentioned that he saw foreclosures selling fast in his area, and that he had two moving towards closing soon, but he had more people looking into investing asking him about these properties. Looking back at my inspections, I am finding that around 75% of the homes that I investigated since the end of summer have been foreclosures, which is a dramatic increase. I have specialized in working with investors, so I have always had a fair number of these homes, but the buyer focus seems to be geared to them at the moment.

So, I wish to see what you are finding. Are the buyers in the market looking closely at foreclosures for deals? Are they considering other homes? Do you find an increase in new investors? Please post your thoughts for this unofficial survey.

Posted by Frank Schulte-Ladbeck on 12/01/2007 05:15 AM

Comments (8)

foreclosures, survey

8 Comments on Posing a Question About Foreclosures

I have not done any forclosures in my area in a long time. (Nashville, TN area) Most of what I have been doing is new construction and existing properties.

12/01/2007 05:19 AM

by Michael Thornton - Nashville, TN area Home Inspector (Complete Home Inspections, Inc.)

In my are people are looking at forclosures then buying homes that are the best value. A lot of the time that is owner occupied homes that do not need repairs.

12/01/2007 05:40 AM

by James Gordon REALTOR® PBD SRS (Sibcy Cline Realtors®)

Thanks for your comments. Maybe it is just because people know me for helping investors out that I have been getting so many. Personally, I think someone would want a home with less repairs built in. I know that I would.

12/01/2007 05:49 AM

by Frank Schulte-Ladbeck (Frank Schulte-Ladbeck Professional Real Estate Inspections)

We are not seeing as many people looking with interest at foreclosures as we once did. Now the buzz is around "short sale".

In this market (Salt Lake City) over the past few years, Banks were getting more for foreclosed homes than from the original mortgages.

In the 120 + days, the property would appreciate 6 to 8 % or more. Probably why they are having difficulty mastering how to do a "short sale".

12/01/2007 05:52 AM

by Chris Sloan Tooele Real Estate (Group 1 Real Estate)

I have seen more short sales than actual foreclosures. Many buyers seem to be looking for a deal whether it's a foreclosure, short sale or just a "re-sale". People are looking at ALL the competition and then deciding which is the best deal.

12/01/2007 06:38 AM

by Laura Karambelas-Chicagoland Real Estate (Baird & Warner)

I have seen a lot of buyers looking for "The Deal" yet I have a couple of investors looking also. I don't care who you are everybody wants to save as much money as possible on any deal.

12/01/2007 06:45 AM

by Vincent McKamy Realtor Fredericksburg Virginia (Coldwell Banker Elite)

They are focused on foreclosures and more specifically the auction properties. Can't wait to see what they will go for. 1000's are focused on 600 REO properties when there are another 1600 that aren't in auction and then another 24000 that aren't REO or short sale. Whenever I just find a good deal I email it out to my investors/bargain buyers. Also, new construction is a bigger bargain than REO. They don't seem to get that even though I counsel them!!!

12/01/2007 11:20 AM

by Renee Burrows - Las Vegas NV Real Estate (Nevada Realty Solutions)

Thank all of you for your comments. I have not inspected a short sale, that I am aware of. I guess saving some money up front is important to some, even though they may have to spend it later on a repair.

12/02/2007 08:19 AM

by Frank Schulte-Ladbeck (Frank Schulte-Ladbeck Professional Real Estate Inspections)

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