Buyer Interest In Foreclosures Is Rising
June 3rd, 2009 categories: Buyer Resource, Foreclosures, Short Sales
Buyer interest in foreclosures is rising not only here in Sonoma County, but also nationally. And why not…there are many great reasons to consider a foreclosure as your next Real Estate purchase.
Santa Rosa Home 3/1, 1300+sq. ft.-$179,000
A recent survey revealed that 55% of home buyers would consider buying a foreclosure. This is up from 47% six months ago. As home prices continue to slide and as the mortgage rates continue to improve, we see this trend increasing…as long as supply remains in the Real Estate market.
Why are these buyers feeling more comfortable with foreclosures? There are actually several reasons…two are obvious, and one is not so obvious. Many who were polled felt that a reliable home inspection would alleviate fears of unknown problems and surprise repairs that come from buying a home where the seller (the bank or lender in this case) has no direct knowledge of the property. Many people also know people who have had to lose a home to the foreclosure process, and knowing that those people took care of their homes, they are willing to assume that other homes were cared for as well. Lastly, the would be buyers of Sonoma County Foreclosures understand that the current prices are reflective of a great Real Estate deal, and this is an opportunity, not something to be afraid of.
We have also noticed that there has been increased interest in Sonoma County Foreclosures as well. We cannot say this increases each month for sure since we do not formally track it, however we have seen an increase since the new year. People are still asking to see affordable homes, but now they specifically ask to see foreclosures. In the past, people did not differentiate between a tradtitionally sold home, short sale, or foreclosure. During our initial consultation we explain the differences, pros and cons of each, and help the buyers decide what is best for them. The buyers are usually impressed with the foreclosures, as many are priced well, many are in good areas that hold their value, and are also in great condition.
Foreclosures typically offer the best priced homes. With Mortgage Interest Rates at current levels, housing affordability is at an all time high. With that said, homes that are being sold by individual owners are also offering great prices. This is because the homeowners know that if they want to compete in this market, they have to be priced well relative to the competition…all the competition, including short sales and foreclosures.
Please visit us at WineCountryMoves.com to view Sonoma County Foreclosures.
