Over the past few months we have been getting lots of calls from people asking about foreclosures. Obviously they have been listening to the main stream media and the masses who say that now is the time to get a foreclosure because you can get a "good deal."
The problem with this is the definition of "good deal" and what really makes a "good deal."
One of the things a lot of these buyers do not seem to realize is that a number of the foreclosures will need some to a lot of work and TLC. Let me add that we are not saying that ALL or MOST of them will, just that some will. This we know is true due to the fact that we have shown some that fit that description.
Another thing a lot of buyers do not realize is the concept of "Rights of Recemption." Some foreclosures are still under a period called "Rights of Redemption." If they are still in this period, the owner can buy it back leaving you on the house hunt once again.
Something else we are also seeing is the idea that we can go in a "low ball" them to get a really good deal. In Alabama this isn't exactly the trend we are seeing. We have had several offers rejected that were "low ball" offers. We need to remember that a lot of these are already reduced just due to the fact that they are foreclosures.
Now, with all of this said, we want to spend some time on that last idea. Just saying it isn't enough. We need to look at the data.
As of today, February 25, 2008, for the month of February there have been 97 foreclosures sold in the Jefferson and Shelby County areas for the month of February according to the Birmingham MLS.
Now, what kind of "deal" did these buyers get? Did they low ball them and get tons off the asking price?
On average, for the Jefferson and Shelby County areas they got an average of a 4.5% reduction.
Well what about Trussville, Mountain Brook, Homewood, Vestavia, Hoover and Oak Mountain Area?
On average for the last six months, they have only seen a 6.7% reduction in price.
Keep in mind that these reductions were off the list price at the time and there may have other reductions prior and foreclosures are generally priced low anyway sometimes a good bit below what the neighborhood would normally sell for.
Now that you know all of this.... are you still interested? We believe that there are some "good deals" to be had and that when going that route you just need to know where you are going.
Foreclosures for sale: (as of February 25, 2008, according to the Birmingham MLS)
Trussville
Vestavia
Homewood
Mountain Brook
Hoover/North Shelby County
For updated information on foreclosures and any other homes for sale in the Greater Birmingham Area go to LivingInGreaterBirmingham.com and search all of the homes for sale.
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