Sizzling Foreclosure Markets
For investors and homebuyers willing to brave the red tape involved in short sales and foreclosures, real estate deals abound. While many real estate markets in the U.S. are seeing relatively good property deals, some are simply so hot, investors can’t afford to pass up these moneymaking opportunities. In fact, statistics show that homes in foreclosure typically sell for an average of 39-percent below current market value, with short sales just behind at an average 23-percent.
The best markets for foreclosures, include:
- Cleveland, Ohio – Foreclosures have consistently soared by 141-percent year-after-year in this mega metropolis. The average foreclosure sells for $57,782, which is 56-percent less than non-foreclosure properties.
- Dayton, Ohio – With foreclosures jumping 121-percent during fourth quarter of 2012 alone, the average foreclosure here sells for 57-percent below market value, averaging $50,579.
- Other popular foreclosure markets include Columbus, Ohio, Charlotte, North Carolina and Palm Bay, Florida.
If investors and homeowners are brave enough to wait, buying directly from banks can offer money-saving opportunities. However, foreclosure transactions are not lacking in risk. When homeowners default on properties, homes can lack basic upkeep and maintenance, including heating, electricity, plumbing, roof disrepair, wall and ceiling damage, as well as the frustrations involved in former owners damaging the home prior to vacating the premises. If foreclosed homes remain vacant for an extended period of time, this may invite additional disrepairs and vandalism. This may lead to a foreclosed home not qualifying for conventional financing. In cases such as these, My Hard Money Lenders offers a direct lender experience, offering bridge loans and fast loan funding.
For some buyers, short sales offer a more secure route for home purchases, as owners usually live in the homes while negotiating with the bank to forgive the difference between their debts and homes’ current market values. If owners remain in the home, this may lead to the home being in better condition when compared to bank-owned foreclosures.
Short sales are becoming a very popular alternative in hard-hit real estate areas, such as California. In fact, Santa Barbara’s short sales numbers have continued to double each year, with median sales prices less than $284,000. This value is 38-percent less, on average, compared to what sellers owe the banks. Additional areas popular for short sales include Grand Rapids, Michigan and Vallejo, Visalia and Fresno, California.