RISMEDIA, April 7, 2011—The economy is improving overall and, as a result, some bright spots are showing up in the real-estate market. However, the foreclosure spike, which began around the same time the recession did, isn’t a distant memory just yet. In many areas, foreclosures are still happening; in some areas, those numbers have increased. Surprisingly, foreclosures have even encroached into some key cities that were formerly thought to be unshakable real-estate markets — like San Francisco, where foreclosures actually rose in 2010 (including in luxury neighborhoods like Pacific Heights, where a condo that sold in 2007 for $2.3 million recently sold for $1.44 million as a foreclosure).
This “second wave” of foreclosures – combined with the fact that many people’s 401(k)s have bounced back with the stock market, and most economists agree that the bottom of the recession has hit – means that competition for these foreclosed homes is, in many cases, fierce. There’s a renewed, final dash to get in on what some perceive as the best real-estate deals they’ll get in awhile. But how do you know which foreclosure is a good buy, and which to walk by? Here are some tips to help guide your clients:
Get it checked out by a pro. Perhaps the most essential point: Never go by looks alone as an indicator of whether a foreclosure is a good buy.
Wow, what great advice from Dan Steward. This is very sound advice.
In Albuquerque, there are many foreclosures, but not as many as other metropolises – Thank goodness. Dan makes a good point when he says, don’t always assume the foreclosure is a product of the original owner finding themselves in a financial predicament. Many times, foreclosures are a product of poor location, condition, bad curb appeal, or some characteristic that made it impossible for the homeowner to sell the home. If this is the case, the banks may price the home so aggressively it seems like a steal, but why would anyone want to adopt those issues? If it seems too good to be true, it might just be.
The best advice I can give is to hire a trustworthy Real Estate Broker who is going to have your best interest in mind – not their wallet. An honest Broker will share with you their honest thoughts about the home and help you through the decision making process.
If you’re looking for an Albuquerque Foreclosure, please call me and I’ll help you weed through them.
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