How many times have you heard "I want to buy a foreclosure so I can get a deal" and "I was told I could buy foreclosures for 20% less than asking price"?
I hear these things every day. It's frustrating when you try to explain the "market" to potential buyers and they don't listen to you. I'm sure they figure that all we are really doing is trying to sell them. Well they are right. We do want to sell them a house. BUT...we also want to make sure they get the house they want and are able to buy a house.
In my market, Kissimmee Florida, the well priced foreclosures are flying off the shelves. It is imperative that buyers understand the market or they'll end up without a property at all.
So....hopefully this article will help you to understand the market in my area. As you can see, there were only 21 REO (foreclosures) properties that sold in Poinciana Florida between 1 October and 14 November 2009 that fall within these parameters:
- Built in 2000 or later.
- At least 1500 sq ft living area.
- Priced less than $65,000.
Of the 21 sales only FOUR sold for less than the asking price. The average was 110% of asking price. That means a house priced at $60,000, on average, sold for $66,000. This means if you are looking for this style of property offer at least asking price and be prepared to go higher.
Knowing what a property is worth will make it easier to prepare an offer that will be accepted. That's where we come in. Does this help?
Here a list of the properties used for this report with their asking prices and selling prices. Check it out.
Do NOT be foreclosed on! Avoid foreclosure. Short Sales DO close.
Want to find out more? www.CentralFloridaShortSales.com
Bryant Tutas
Broker/Owner
Tutas Towne Realty, Inc
Licensed Florida Real Estate Broker
http://CentralFloridaShortSales.com
http://ShortSaleSuperStars.com
Are you a Florida REALTOR(R) looking for a change? Check it out.
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This is both good stuff and a good "notice" to consumers. I'm pretty sure every area of the country has "super-low-ballers" try to steal a property.
Good information on a big market segment. Too many buyers watching late night TV and being told that they can buy foreclosures for 20 bucks! Thanks for the informative post!
I hear Vegas is experiencing the same thing-- Multiple offers minutes after hitting the market.
Wow, and even the few that went for under asking price didn't go for that much under. I have definitely had my share of buyers like that. One told me the other day to find him a $150,000 house move-in ready for $100k. Everyone wants a deal.
BB - I hope your choir is listening now after preaching and preaching. Where can you get a house with this criteria for less than $40.00 per sq.ft. - only in your market area :)
This is good news overall, for the real estate market. But some real estate buyers are not going to be very happy. I just hope that even they realize the importance of seeing improvements in general real estate!
Even if it is over asking, the price per square foot screams that it is a deal, even considering the condition might be "typical foreclosure".
Bryant so true, we deal with this many times every day. Often a conventional sale can be better than some foreclosures. It's all about value.
Bryant,
Heck with foreclosures (LOL). I wanted to congratulate you with hitting (and passing) a 600,000 point mark. Not many people have done it. Actually, just few.
Thanks Jon. I hadn't noticed. Knew I was getting close but hadn't checked in a while. 600,000!!! I really need to get a life.
To all. When buyers say they want a foreclsoure all they are really saying is they want a deal. At $38 a sq ft ALL properties in my market are a deal. 4 years ago lots were selling for $70k. Now you can buy a great house for in the $60s. It's all relative.