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The Cape Coral Real Estate Price Pendellum Has Swung Too Far

By
Real Estate Broker/Owner with Villa Realty Group, Inc.

Cape Coral Real Estate - Tops In Foreclosures

We all know real estate goes in cycles.  When markets heat up, they need a cooling off period.  As prices get out of balance, they should come back to earth and find that middle ground. It is amazing to me that what is occurring in many markets is not only have prices retreated, but they have gone so far that in many cases you can now buy a home for less money than the cost of building a new home, even if the dirt were FREE.  There is probably no better place in the country to take advantage of this opportunity than with Cape Coral real estate.  Cape Coral foreclosures and Cape Coral short sale properties are abundant with single family homes starting in the $70's. 

What is more surprising is that many buyers still do not recognize this.  Wall Street corporate raiders made fortunes buy buying companies below their replacement cost.  It was only a few short years ago that buyers lined up early in the morning, got into bidding wars to buy property, and now when shown a home that can be bought for 10%, 20% and as much as 30% below the cost of building it new (with the home site thrown in for free) they are unsure if they are getting a good deal.

The Cape Coral real estate market that is experiencing this anomaly.  Because of the large number of institutional sellers (banks), whether it be a foreclosure or short sale have chosen to reduce the selling price so substantially to get these properties off their books that anyone looking to build a new home in the sub $400,000 price range would find it next to impossible not to take advantage of one of these amazing values.

As you move up the price scale this becomes much less common with Cape Coral homes for two reasons. First, there are less bank-controlled properties in the $1 million price range and secondly the land values are holding steady.

BRC (Below Replacement Cost) Properties won't last forever.  When they are gone, they are gone and then everyone will want one.  Isn't that always the case?  We all want what we can't have.  A couple of years ago everyone wanted one.  Today you can have it!  Take advantage of it.  When this market cycles back around you will be very glad you did.

For A FREE REPORT "HOW TO SUCCESSFULLY BUY FORECLOSURES AND SHORTS SALES" & "THE TEN BIGGEST MISTAKES BUYERS MAKE" click this link.  This is a valuable guide to buying BRC properties and getting your offers accepted by the banks.

 

Comments(10)

Dwayne West
Atlanta Real Estate - Canton, GA
Canton Georgia Real Estate

Welcome to the Active Rain community. You have chosen a great site with tons of information you can learn from.

Aug 22, 2008 02:11 AM
Lori Isaacson
Credit Restoration Consultants - Plantation, FL

Hi Chris,

On behalf of Credit Restoration Consultants and the 105,400 plus members of ActiveRain, I wish to welcome you to the network.  Should you ever have a question as it relates to bad credit, credit repair, credit restoration, or identity theft, please do not hesitate to contact me at (954) 581-5050 or at my direct dial number of (954) 449-9987.

 Best wishes,

Lori Isaacson

Aug 22, 2008 02:30 AM
Anonymous
Jean Groesbeck

Welcome to Active Rain.  You will find that you lear a lot from the site!

Aug 22, 2008 02:56 AM
#3
Greg Steffens
Mountain Country Realty - Lake Arrowhead, CA

Chris - Welcome to Active Rain and congrats on your first post.  Be sure to spend some time looking around at what and how others are blogging here.  It is a great education and lots of fun.  Looks like you're off to a great start...keep it up!

Aug 22, 2008 03:47 AM
Lori Franks
Real Estate Consultant - Brookings, OR
Brookings, Oregon

Hello Chris and welcome to ActiveRain. Congrats on your first post. I think we will be seeing foreclosures for a while yet so any information we can share with our customers-clients the better. Keep up the good work and happy blogging!

Aug 22, 2008 05:01 AM
Keith Elliott Jr
KEIRE Realty Group - Manassas, VA
Principal Broker/Owner

Hello Chris,

Welcome to Active Rain and congrats on your first post! The opportunities to learn and network are incredible here. Best of luck to ya!

-Keith

Aug 22, 2008 06:48 AM
Susan McQuaide
Keller Williams - Simpsonville, SC

Welcome to Active Rain! I hope you find this site as informational and entertaining as I have!

Aug 22, 2008 12:18 PM
Ron Brown NMLS #270845
NMLS ID: 40831 - Federal Way, WA

Chris,

Welcome to Active Rain! Congratulations on your first blog.  You'll find this is a great site for sharing ideas, networking, and growing your business.  If you ever have a question about VA loans, or FHA loans I'd be happy to help!

Ron Brown

VA Loan & FHA Loan Specialist

First Mortgage Company of Washington

Puyallup, WA

Aug 22, 2008 01:29 PM
Brooke English
Credit Restoration Consultants - Lake Placid, FL

With 105,710 plus members and counting, welcome to the Active Rain network.  I hope you enjoy your stay!  Should you ever have any questions as they relate to bad credit, credit repair, identity theft, or credit restoration, please do not hesitate to contact me at (954) 581-5050. 

Aug 23, 2008 11:50 PM