Some foreclosures are declining across the country. According to Forbes.com reports that the number of homes in foreclosure dropped 3% in 2015 compared to the previous year. However, while foreclosures may be dropping in certain parts of the country, in some larger metropolitan cities, foreclosures account for a substantial amount of the market.
The reality is, that most people don't initially start out their home search sifting through foreclosures. Many home buyers don't know enough about them or maybe hold a stigma over them. The fact of the matter is, foreclosures are an absolute gold mine for investors or first-time buyers, especially.
Just under 1 million homes in the U.S. are foreclosures according to Experian. "Florida has a statewide home foreclosure rate of 0.72%, which doesn't seem too steep a figure given the Sunshine State's propensity to attract transient homeowners, who come and go seemingly on the fly, and for various financial reasons." Florida's housing market is very strong. In fact, thousands of people flock to move here year after year. However, like in any state, foreclosures happen. Some of the best deals are found in foreclosure in the Sunshine State and I urge all home shoppers to take a look.
For those of you who are unfamiliar with the foreclosure buying process, here is a breakdown of what it entails: Buyers (especially those looking for bargains) will make the initial offers on the homes. Many buyers shop multiple foreclosures at a time and make multiple bids in close proximity of time. Foreclosures usually go fairly quickly because of the lower price point. Thus, it is always a good idea to jump on them quickly. The best thing about foreclosures is that ultimately helps buyers buy a home in their ideal neighborhood that they otherwise may not have considered because of the more than ideal price point on the foreclosed home.
The best bet for finding the lowest price for a foreclosed home is at an auction. Sometimes buyers do not like auctions because you are unable to inspect the home before the purchase. However, that is why you want to hire a real estate agent who works closely with auctioned and foreclosed homes.
To avoid some unexpected fees such as unpaid taxes and liens on the home is to buy homes that are owned by a bank. These properties often referred to as REO (real estate owned) homes, are usually sold at well below value price in order to get rid of the property quickly. This could be a great buy for someone looking to get into a home quickly and without much hassle.
A foreclosed home can present a very intriguing investment opportunity or even an incredible home for you and your family to live in. Make sure to do your research on foreclosures and the neighborhood you're looking to buy in. Reach out to an agent who can assist you with buying foreclosures. Good luck!