PRLog (Press Release) –
Dec 29, 2007 – By now everyone in the country has heard about the real estate market "crashing" and most people are afraid to look into new housing or into upgrading their current house, but this recent rise in foreclosures actually makes it a good time to invest in real estate.
First let's take a look at what is causing this real estate market "crash". In the most basic sense, the real estate industries most fundamental problem is the excess of unsold inventory lingering in many of the country's local markets. The supply of homes for sale hit its highest level in 22 years in October of 2007. Overbuilding has hurt many markets, as well as investors who are unloading multiple units bought during the boom. Adding to the already elevated inventories is a large influx of foreclosure properties currently hitting the market. According to the MBA, 1.69% of first-lien mortgages were in the foreclosure process in the third quarter of 2007. The percentage was the highest in the survey's history, and the group expects high numbers of foreclosures to continue into next year.
If you’ve been watching the late-night real estate infomercials and think you’re ready to buy a foreclosure and make a ton of money, you need to slow down and do your research and get yourself prepared. If you work from the beginning and approach the home buying process intelligently and with confidence, you are more likely to end up with a house you'll be proud to call home and buy it at the right price to increase your equity.
Before house hunting, make a list of things you want in the new place. Then make a list of the things you don't want. You can use this list as a guide to rate each property that you see. When house hunting, be sure to keep in mind the difference between style and substance. The substance consists of things that cannot be changed such as the location, view, size of lot, noise in the area, school district, and floor plan. The style represents easily changed surface finishes like carpet, wallpaper, color, and window coverings. Buy the house with good substance, because the style can always be changed to match your tastes. I always recommend that you imagine each house as if it were vacant. Consider each house on its underlying merits, not the seller's decorating skills.
As buyers' agents we are recommending buying homes that are bank owned foreclosures known as REO's. A REO (Real Estate Owned) is a property that goes back to the mortgage company after an unsuccessful foreclosure auction. You see, most foreclosure auctions do not even result in bids. After all, if there was enough equity in the property to satisfy the loan, the owner would have probably sold the property and paid off the bank. That is why the property ends up at a foreclosure or trustee sale. Since what is owed to the bank is almost always more than what the property is worth, very few foreclosure auctions result in a successful sale. Then the property "reverts" to the bank. It becomes an REO, or "real estate owned" property. The bank now owns the property and the mortgage loan no longer exists.
There are currently over 100 REO's in the metro Richmond, Virginia area including Church Hill, Highland Park, Chesterfield, Hopewell, Midlothian, Petersburg, South Richmond, Henrico County, Hanover, Mechanicsville and the North Side of Richmond, Virginia. . Some of these homes are priced tens of thousands of dollars below market value or tax assessment, others have highly motivated sellers. The average buyer of our homes pays 26% below market value when buying a foreclosed property.
Our mission is to find the right property for you whether you are looking for a new home to live in, or for an investment property to hold and rent or fix and flip. For more information on investing in REO properties in Richmond, Virginia please visit
http://www.reoheadquarter.com or call 804-402-2700.
Now remember as home prices drop a number of people to put home buying decisions on hold. In some of the most sluggish markets, sellers who don't absolutely need to sell aren't attempting to do so; those who do are offering price cuts and concessions to make the deal. Currently a lot of buyers and investors are sitting on the sidelines. A lot of potential investors are unsure what is happening in the marketplace, many think that it's impossible for anyone to get a mortgage nowadays. Most buyers in the marketplace today are fearful that if they buy a home that they will only to watch it decrease in value. My advice for bargain hunters is simple, don't wait too long to take advantage of the current market.
