How Foreclosure are Effecting the Market
by John Occhi, Hemet REALTOR
Hemet CA Real Estate
I have had the blessing recently of working with a couple of buyers looking for Hemet CA Real Estate. They both have two very similar characteristics - they want a lot of house for the money and they want to make certain they are getting the absolute best deal going. As I like to say, they are both willing to kiss a lot of frogs to find their prince of a deal.
In researching property for sale in Hemet CA I have noticed that there are several homes for sale that I consider to be a fish out of water, or very different from their counter parts. They are homes that are selling below their value. I don't mean just a few thousand dollars below what they could get. I don't mean selling at the low range of other homes, I mean they are selling in the range of houses the next level below theirs.
For example, in Hemet California, if you were looking for a 3 bedroom 2 bath home in an established family neighborhood you might easily expect to spend $300K - maybe up to $325 or even $350K for the right home in the right neighborhood..
Today you can find 4 bedroom/3 bath homes for sale in Hemet for under $300K. These are homes that should never be put on the market for no less than $350K and in several cases they should be close to the $400K mark
What these homes have in common is that they are REO, or "Real Estate Owned". These are properties that someone has already been foreclosed on and walked away from and now the bank owns them - and the bank is not in the real estate business, they are in the money business.
It is very unfortunate for the families that lost their homes and it is equally unfortunate for the families that now are trying to sell their home, because this is what they are competing with.
This phenomena is what will drive real estate prices down. As more and more REO properties enter the market, more and more existing homeowners will be effected.. You see real estate value is determined by the sale of similar properties and if a 4 Bedroom/3 bath home is being sold for less than $300K why would someone buy a similar home in the same neighborhood for $350K. If a buyer is qualified to buy Hemet CA Real Estate for $300K, why would they buy a 3 bedroom/2 bath home when they can move up to the 4 Bedroom/3 bath in the same neighborhood -here everything else is equal?
Unfortunately, these deals are becoming much to predominate in Hemet, CA and I am afraid may start driving the market.
Now Have a Blessed Day,
John Occhi, Hemet CA REALTOR
www.JohnOcchi.com
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