Read an article yesterday about foreclosures. It was not a surprise that Bank of America, GMAC, Chase, Wells Fargo and Citi had a high number of foreclosures. It was a bit of a surprise that a high number of those foreclosures were vacant! The article claimed that 20% of foreclosures were vacant! Imagine how the market would be, inventory wise, if those vacant properties were available for sale?
Not so fast! According to the article, 29% of those vacant foreclosed homes are priced below $50,000. Don't know about you, but in my market, nothing is priced below $50,000 except a few rural vacant lots! The article went on to claim that 25% of foreclosures are between $50,000 to $100,000. Still not pricing attributable to my market. The next claim, that 12% of foreclosures are in the $1.000,000 plus range, according to Realty Trac is easier to digest.
Vacant foreclosures are always hard to digest. They should be on the market and ready for occupancy. The top 5 states with the highest percentage of vacant foreclosures was also surprising. The only obvious exception was Nevada with a 28% rating.
The states with some of the highest percentages of vacant foreclosures are:
Indiana 32%
Oregon 28%
Nevada 28%
Washington 27%
Georgia 27%
Would you have guessed it if asked? I would not have guessed more than 2 out of the five! Nevada would have been on my list. And, maybe Georgia! Some others would have been California, Arizona, Illinois and Florida to round out the top 5 with Nevada. Oregon, Indiana and Washington would not have made my list. Would they have made yours? It is interesting and for those in those in Indiana, Oregon and Washington contact your local banker and offer your services to increase your inventory and relieve the banker of another headache!
Every problem creates an opportunity and these numbers are a call for action in those states with a high number of vacant foreclosures. Seize the day and enjoy the opportunity!
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