Is interest in buying a foreclosure waning
In the Charleston real estate market, I would say not at all.
But a recent poll from Harris Interactive says otherwise.
The poll shows the percentage of buyers "somewhat likely" to consider buying a foreclosed property fell from 55% in May to 43% in November. Buyer expectations when considering the purchase of a foreclosed property obviously includes getting a lot of house for the money. Nearly two thirds (65%) expect a discount of 30% or more when buying a foreclosed property.
But there is a major difference between 30% off list price or comparable properties that are not foreclosures and the condition matters more than anything else when either setting the price or making an offer.
In the Charleston real estate market, several lender owned properties go on the market just about every day. And just about every day, a contract is accepted for a foreclosed home. Sometimes they are quickly snapped up, in other cases, they sit unsold for a while, the price is reduced once, twice or more and they finally go under contract and eventually sell.
Some buyers want to buy a foreclosed home in pretty good (if not pristine condition) while others would prefer it to be not just a handy man special but a real renovation project.
But just a few words about pricing and buyer expectations.
When a foreclosed home comes on the market, the bank won't consider any offers for the first five days. They are hoping that several people will have the time to view the home and make an offer. And very likely will any offer be accepted for less than list price in the first five days. Over the course of the next several weeks, you may be able to get an offer accepted for somewhat less than list price and generally, every 30 days the home sits unsold on the market, there will be a price reduction.
I'm seeing some foreclosed homes come on the market priced as if they were being sold by an everyday home owner (and in many cases, that is way too high) but sometimes, the condition warrants that pricing. In other cases, the price is set so low that you know the property is severely distressed.
Back to buyer expectation of buying a foreclosure for sale at thirty percent off.
You should not expect to just automatically take 30% off the list price but you should be able to buy a foreclosed home for 30% less than market prices and if you can't, there are better choices available if you want to buy a bargain or get a good deal.
FREE listings of available foreclosed homes for sale in the Charleston area
Or just contact me for assistance buying a lender owned home in Charleston.