In some instances, foreclosures may be dropping in certain parts of the country. However, in many larger metropolitan cities, foreclosures account for a substantial amount of the market.
How many home-seekers do you know that start their search sifting through local foreclosures? The reality, is, probably not many. It’s common for home buyers to leave foreclosures as a last resort of skip them all together. I’m here to tell you that foreclosures are in fact a remarkable investment and can make for an ideal find for you and your family.
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." Like any state, foreclosures happen. The great thing about this beautiful state is that not only area good deals in abundance, but you’re getting a good deal in paradise. What’s better than that?
Many Americans are unfamiliar with the foreclosure process, and that’s okay! That’s where we come in. How exactly does it breakdown? For starters, those looking to buy will make the initial offer on the property. Many buyers shop multiple foreclosures at a time and make multiple bids in close proximity of time. Keep in mind that foreclosures tend to sell fairly quickly because of the lower price. So, make sure to act fast. The best thing about a foreclosure is that most other homes in the neighborhood with similar specs are priced higher. Therefore, the value of this home is more than likely much more than the asking price.
Where does one look for a foreclosed home? For starters, auctions are an incredible way to go. Usually you’ll be getting an incredible bang for your buck. Keep in mind, since you can’t inspect the inside of the home before purchase, it’s always best practice to hire a real estate agent to work with you in the auction process. Another option is to hire a real estate agent to search for local foreclosures with you without having to go to the physical auction.
Just like any buying process, there are certain things to keep in mind, which your real estate agent will make you aware of. 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. Usually this is a quick process with few hurdles.
Remember, a foreclosed home is a slightly different process than orthodox homes. However, the rewards are there. The pros can outweigh the cons. At the end of the day, a foreclosed home can be a phenomenal investment and living opportunity for you and your family!