Foreclose Houses Make Up 60 Percent of Sales in Florida
Real estate experts in Cape Coral, Florida said that majority of homebuyers in the area want to deal with foreclose houses than with short sales.
They explained that with foreclosures, the time timeframe is about one month to one-and-a-half month while short sales timeframe is estimated to be three months to four months, making them difficult to buy.
They said that foreclose houses are bank owned and the banking institutions’ selling process for foreclosures is more defined. They added that foreclosures are quick and easy to dispose over short sale properties.
Data showed that 60 percent of home sales in Cape Coral are foreclose houses. Short sales take up only a small portion of the total home sales in the area. This is because banks do not have procedures on short sales, they do not own the properties and they are not as motivated, experts said.
Meanwhile, experts said that when buying foreclosed homes, potential buyers should have more knowledge about the properties they are planning to buy, especially when it comes to the condition. Most foreclosure properties are sold on as-is basis so it would be wise for potential buyers to hire a home inspector.
Most foreclosure properties on the market are priced below the replacement cost. Experts noted that home prices during the housing boom of 2004 and 2005 were irrationally high. Today, home values were irrationally low encouraging investors and second-home buyers.
They said that many homebuyers are cash buyers and often, individual homeowners find themselves competing with buyers who have cash, who do not need to prequalify for a loan and can close a sale in just two weeks. This trend has made it hard for buyers looking for a primary home and they may find the buying process both challenging and frustrating.
Experts suggest that buyers prepare their financing before making an offer for a property. Some banks may require a full loan approval while others will prefer handling the prequalification.
They said that buyers will have a better chance of purchasing houses to live in if they return on the market. There is a possibility that previous deals did not work out and banks are looking again for buyers.
Experts said that for good deals, buyers should watch out for foreclose houses that re-entered the market or where prices have been reduced.
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