It’s still possible to buy a foreclosure and make it the home of your dreams. It’s just harder these days.
Investors, both individuals and national corporations, are rushing into the market with the intent of turning foreclosed properties into cash-generating rental units.
Lenders are only slowly listing homes for sale at a time when the general appetite for home purchases is increasing. Demand for properties is leading to bidding wars and higher prices that aren’t necessarily justified by appraisals, putting deals at risk.
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All that being said, there are still plenty of foreclosed properties out there. In the 12 months ended in February, more than 20,000 foreclosures were completed in the Chicago area, according to housing analytics firm CoreLogic. Most will become bank-owned and eventually put up for resale.
Homebuyers just have to find the right property. While they have to demonstrate patience in their search, they need to move fast and effectively once they find it.
“The consumer gets burned on a house they really like once or twice,” said Michael Goodwin, an agent at Exit Real Estate Partners. “After that happens, they get war-hardened. The next time they are ready to pounce. Not very often does it wind up being the first house. It takes them getting slapped in the face.”
There was competition for properties a year ago too, but real estate agents say this year’s foreclosure market is different.
Across the board, agents find that foreclosures are being listed at far less than what they will likely sell for, a smart marketing strategy that is having the intended effect of generating interest and multiple bids.
read more at: http://www.chicagotribune.com/classified/realestate/foreclosure/ct-mre-0407-podmolik-homefront-20130405,0,407735.column
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