Distressed Homes in South Florida - Boca Raton Real Estate
Posted by Caesar Parisi on Friday, March 9th, 2012 at 5:14am.
The housing market is again beginning to pick up in South Florida. Historically low interest rates and low housing prices are driving the surge in sales. It is still possible to purchase foreclosure homes and short sale homes at drastically reduced prices, but the supply is dwindling. If anyone is interested in buying a home at bargain basement prices, the time is now.
According to the “Bloomberg Report,” homes in or nearing foreclosure accounted for 24% of housing sales nationwide in the last three months of 2011. People are always looking for a bargain, particularly for such a costly purchase as a new home. Also, there has been a delay in banks disposing of foreclosed properties because of federal and state investigations into flawed bank foreclosure documentation. The banks have since resolved most of these situations. For these two reasons, foreclosure-related sales are expected to increase in 2012.
For those interested in purchasing a foreclosure property, a systematic approach is best. First and foremost, a prospective buyer should obtain preapproval from a lending institution. Attractively priced properties in good condition can sell extremely quickly. If a purchaser waits until after he has found his dream home, it may take too long to obtain financing and he may miss out on the sale. It’s also important to find a real estate agent who works directly with the banks that own foreclosed properties. Such realtors usually have a relationship with the banks and this may help facilitate a sale. In addition, such a realtor may have knowledge of possible foreclosures that haven’t even been listed yet.
Before going out to look at properties, it’s helpful to visit an Internet site that details foreclosed homes in the area of your interest. Such sites provide a great deal of information about the home as well as pictures and virtual tours. This helps to narrow down your search. It also provides a frame of reference in terms of what comparably priced homes in a certain area are selling for. Such sites also disclose how long a home has been on the market. No matter what the bank is asking for a home, if it has been on the market for a long period of time there is some wiggle room in terms of price.
Once you have completed all of this “due diligence” and found a home you like, make sure the house is structurally sound. Cosmetic fixes are not expensive; structural fixes can be exorbitant. As most foreclosed homes are sold “as is,” it’s very important to assess the condition of a home before making a purchase offer. There remains a large inventory of homes at discounted prices, so it’s still possible to find the home of your dreams.
NOTICE: Champagne & Parisi is no longer affiliated with Lang Realty. Any references to Lang Realty or LangRealty.com in blog posts reflect historical fact as of the date of the blog posting and should not be construed to suggest a current affiliation.