FORECLOSURES CAN BE A GOOD BUY. THE BENEFITS CAN BE PRICE, QUICK OCCUPANCY, LOCATION.
However, the foreclosure sale still has to compete with other homes for sale in the area. Look closely at foreclosures. Many home buyers believe that, "if it's a foreclosure, it's a good buy". Not necessarily so. We sell foreclosures, especially bank foreclosures, but an experienced Buyer's Agent will analyze the value of the particular property and can determine whether or not a particular foreclosure is a good buy. Make your buying decisions based on facts, not assumptions.
PRICE FOR FORECLOSURES. Most foreclosure owners, banks, mortgage companies, HUD, VA, price their properties based on an appraisal. Some banks will obtain more than one appraisal to assist with determining the price for the property. Also, since the foreclosures are listed with local real estate brokers, the agents for the property will also provide the owner with a Comparitive Market Analysis based on recent comparable sales in the community or nearby area.
WHO PRICES THE PROPERTIES FOR SALE? In a word, THE OWNER. That means the bank, mortgage company, HUD, VA that owns the home. The owner has rarely seen the property, the neighborhood, the general area and may be located in an area hundreds or thousands away. Once the owner (bank) gets the pricing recommendations from the listing agent, the pricing decision is often made based on considerations that have little to nothing with what price it will take to sell the home. THEY ARE OFTEN VERY WRONG!!
EXAMPLE: We previewed a foreclosure in Woodbridge this week and found it so overpriced that we wondered if the owner, financial institution, had the benefit of any local comparable information. For instance, there is a new home builder also selling homes in the community and the new homes are priced approximately the same as the foreclosure. Not only that, the new home builder has homes in inventory ready for immediate occupancy.
Foreclosure priced at $549,900 New Home priced at $615,000 with incentives
THE FORECLOSURE - Priced $549,900
The foreclosure was not clean.
The flooring in the kitchen and sun room were vinyl.
The kitchen was standard with Formica counter tops.
The landscaping was not well maintained.
The carpets were in serious need of cleaning.
No warranty offered.
THE NEW CONSTRUCTION - $615,000 with $10,000 closing help.
The new construction was spotless.
The flooring in the kitchen and sun room were hardwood.
The kitchen has stainless steel appliances with Granite counter tops.
The landscaping was trimmed and healthy.
The carpets were new.
Fully finished basement.
Large deck overlooking yard backing to woods.
New home warranty.
Kitchen in Foreclosed home in Woodbridge Kitchen in New Home in Woodbridge
FORECLOSURES SOLD IN WOODBRIDGE July 1, 2007 through October 27, 2007.
SOLD - 36 Foreclosed Homes, Single Family Detached
Minimum Price SOLD - Listed for $189,900 - Closed Price, $189,900.
Maximum Price SOLD - Listed for $674,900 - Closed Price, $635,000.
Average Price SOLD - $317,796
SEARCH LISTING Prince William County, Virginia