Foreclosure? A Great Deal...

Lately I have noticed an influx of buyers asking em the same question. "I want to look at a foreclosure because I can get it signifcantly less than other homes in the same area". Well that may not be as true as it once was.

Banks have been taking a huge financial hit to their bottom lines on foreclosed homes. The cost involved to get the home foreclosed and market it is proving to be economically unsound. And in addition, if the home is not priced significantly below market value people are not looking at them. I have noticed a trend in two different avenues right now.

First, I noticed more and more banks are accepting applications for a short sale. They are letting the homeowner know they are going to work with them to help get the house sold before it goes to foreclosure. It is a win win situation for everyone. A short sale alleviates the bank form the unnecessary costs involved in foreclosing on the home and maintaining it while they sit and wait for an offer to come in. For the homeowner they get to stay there until it is sold and the impact on their credit is not as severe as a foreclosure would be.

Second, banks are beginning to repair and fix homes before selling them. In the past when a bank took over a home through a foreclosure it simply used one of their Realtors and had them put a sign in the ayrd and put it on the world wide web for X amount fo dollars. gradually they lower the price until someone bought the house. The home was sold in "as is " condition and the bank did nothing to help the resale of the home.

Well the times seem to be changing in the Charlotte area at least. I had the home next door to me go to foreclosure. Fannie Mea ended up with the home. Structurally the home was in great shape. Cosmetically it needed some work. nothing though that a new stove, some paint and new carpet could not fix. Well, Fannie Mea did all of that to the home. Now the home shows like it is a model home. Thus they are asking and received an offer for fair market value for the home in the neighborhood.

So, looking for a foreclosure and thinking you are goign to get a great deal. You are. the wquestios is that is the deal goign to be in the repairs done to the home for you or in the price fo the home.

Dave diCecco

Realtor/Broker

www.davedicecco.com