Many customers contact me asking for a great deal. They begin by asking "what do you have on foreclosures (aka bank owned and REO's) and short sales?". They are looking for properties which are priced 30% to 50% below a couple of years ago. Their questions are driven by all the articles they have read and conversations regarding the high levels of distressed properties being sold.
My answer begins with helping them understand the differences between foreclosures and short sales. Next I always stress the importance of hiring a good real estate attorney to protect their interests in a real estate transaction. Then I help them understand what's happening in this market so that they can better understand how we can identify a property priced at a very good value. This often includes foreclosures, short sales and properties which are not listed as distressed. Many very good values are frequently found in the non-distressed segment in this market.
To give you a better understanding of our market conditions on Marco Island, here are some key points based upon information from the Marco Island Multi Listing Service. During May 2009 there were 1,380 active residential listings for sale. Of these listings 92% are typical sales, meaning they are not identified as potential short sales or bank owned foreclosures. So as you can see the vast majority of active residential listings on Marco Island are not distressed properties.
Now if we examine the time period from January 1 through May 28, 2009 for single family homes using the Marco Island Multi Listing Service data, we can get a picture of how distressed properties have impacted closed sales in this market. There were 109 closed home sales during this period, of which 77%(84) were non-distressed sales. Foreclosures represented 14%(15) of these sales and the balance of 9%(10) were short sales. You should note this breakout is different than what is often communicated for national trends. This really illustrates the point that real estate is truely a local business.
The main point I'd like to share is that many buyers are finding terrific value in non-distressed properties. As a serious buyer one should give consideration to that important segment of the market as well. Particularily if you are interested in Marco Island.Labels: foreclosures, great deals, Marco Island, real estate, short sales
