Saturday, November 10, 2012
UPDATE ON FORECLOSURES
Zillow analysts state that foreclosure home buyers in Palm Beach, Broward and Miami Dade counties could only expect a 2.9% savings in September compared to available homes NOT sold at a distressed price. Discounts are shrinking on distressed properties.
Zillow further states that same time last year the discount was 6.8%, and in August 2008, the peak foreclosure month in South Florida: 22.7%. If investors can’t purchase a property they can fix up and sell at a profit, they have no incentive to buy. For buyers who want to buy, rent the property out and sell later at a profit, it is harder and harder to find a property that meets the profit criteria.
Home buyers getting a mortgage may find the distressed properties don’t appraise to the list price.