Bank-owned foreclosure listings (REOs) and short sale listings both present a great opportunity for value among buyers. Prices can be as much as 30% below the traditional resale market in some areas, and in other areas distressed properties are the market. Either way, experts agree there's value for a buyer who wants to own 5 years or more. Rental rates are advancing too, which is great news for investors who want to buy and hold for rental income.
Buying distressed properties can open up great opportunities, but in order for an investment to be successful, consideration of numerous factors is essential.
Purchase Location
Suburban (69%)
Within Same City (50%)
Urban (18%)
Rural (13%)
What Buyers Want
Attractive Price (43%)
Low Mortgage Rates (36%)
Able to Afford (28%)
Tired of Paying Rent (21%)
Types of Homes Purchased
Single-Family Detached (82%)
Condominium (9%)
Town House (7%)
Duplex (1%)
Importance of House Condition
69% short sales & 55% foreclosures are in good/excellent condition
50% of first-time buyers buy in good condition
78% of investors intending to flip the property typically buy homes in fair, poor, or very poor condition
50% of move-up buyers buy in excellent condition
Source: KW Market Navigator: Vision and Opportunities 2011 via TMIR February 2011
To find the value of your home, visit: http://www.davidjedwards.com/free-home-evaluation.asp
To search the MLS database of other homes for sale, visit: http://www.davidjedwards.com/search-for-homes.asp
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