There are some great deals in Charleston real estate
... and surprisingly, some not so great deals.
I've been looking at foreclosures with several clients recently and there are some great deals to be had in the Charleston real estate market right now. The very best deals seem to be bank owned homes that will not qualify for FHA financing because of poor condition. A lot of buyers are using FHA financing because you only need a 3.5% down payment and that leaves a lot of people unable to be able to buy some distressed properties which is good news for those paying cash or able to obtain conventional financing.
Now I'm not saying that all lender owned homes are in terrible condition, I don't think you would refer to any as being in pristine condition but some are pretty good and are well priced.
But, surprisingly, some bank owned homes that are in fair to pretty good shape are being priced similarly to homes for sale by homeowners. And most people today want a bargain and they especially want a good deal when looking at and buying foreclosures.
An example comes to mind from a few days ago and I'll use nice round numbers to make my point. I saw a bank owned home in a neighborhood and when I ran the comps, other homes that were offered for sale and similar homes that sold recently were all selling at the same $100 per square foot as the bank owned home. Now, thinking back on the quality of the bank owned home and what might have been needed to bring it up to par with other homes, there is no way that home should be offered for sale at the same price.
Now maybe it shouldn't be listed at a 15%, 20% or 25% or more discount to other homes in the neighborhood but under no circumstances should it be offered at the same price. And maybe that's why it has been on the market a while when other bank owned homes have been going under contract quite briskly.
So some banks know how to sell real estate and it seems that other banks are a little greedy when it comes to how they are valuing REO property. And you know what happens to homeowners who think their home is worth more than their neighbors home just because it's their home - it doesn't sell.
You can view Charleston MLS listings of foreclosures and for help buying bank owned homes for sale in the Charleston real estate market, contact me.