Buying Foreclosed Houses as the Market Is Rebounding

Buying repossessed houses as the market is rebounding needs quick and sound decision making on your part. Consider also price and sales trends as the market shows signs of starting its recovery.

Currently, there are at least four major trends characterizing the market: foreclosures are still increasing, foreclosures are still driving down home prices to affordable levels, investors and homebuyers are snapping up lower-priced homes, and the inventory of unsold higher-priced homes is still growing.

According to real estate analysts, majority of the approximately 1.9 million homes foreclosed since the start of the housing meltdown have been among the lowest-priced homes in the country.

Nationwide, sales of houses priced between $100,000 and $250,000 increased by 9 percent from last year. Because of the rising demand, supply is now declining and buyers in many areas are now competing against multiple offers.

Even in foreclosure-battered areas, according to real estate professionals, buyers are now gravitating towards the housing market largely because of the increasingly affordable foreclosure properties and the rush to beat the federal tax credit deadline.

So when buying foreclosed houses, according to experienced realtors, see them on the first day they are listed, and submit your purchase offer immediately if you find one that you want and that you have checked out.

Realtors advise that you do not make a low-ball offer if you have lots of competition. They said that the prices of lower-end houses are now stabilizing and that sellers are now reluctant to give deep discounts.

To compete with investors who are offering cash, make a down payment of at least 20 percent. If your offer is not accepted, monitor the sale of your targeted house with the seller’s agent. Oftentimes, accepted offers and purchase agreements fall through.

If your subsequent offers are not accepted, do not be discouraged. Housing analysts expect more foreclosures to enter the market in the coming months because of various reasons such as the adjustment of adjustable mortgage loans, rising unemployment levels and the redefault of modified mortgages.

For potential move-up buyers, sell your current house first before embarking on another loan. For middle-tier houses, an offer which is ten percent below the asking price is realistic because of the lukewarm market.

At the higher end of the market, jumbo loans are much harder to obtain so get loan pre-approval first before viewing and buying foreclosed houses in high-cost communities.

Related Posts:

• Find Foreclosed Home for Sale with Some Sleuthing Work
• Investing in Government Foreclosures
• Foreclosure Basics: Three Keys to Negotiation Success
• Surge in Sales of Bay Area Foreclosed Homes
• Real Estate Experts to First Time Buyers: Stay Away from Foreclosures!