According to Trulia, the average price per square ft. for a Mobile, Alabama home is $72, and the median sales price during the period July 11, 2011 through September 11, 2011 was $130,000. There are currently 765 homes that have received a foreclosure notice and are in some stage of pre-foreclosure or foreclosure. During the week of October 19, 2011, the average list price for a Mobile home was $194,010. Popular neighborhoods include Georgia Avenue and Carlen, with average listing prices of $180,375 and $170,273, respectively. Other hot neighborhoods include Skyland Park, with an average list price of $151,689, Overlook, with an average list price of $111,321, Berkleigh with an average list price of $150,844.There are approximately 15 auction properties available in Mobile currently. Foreclosure homes have been selling at an average price of $73,058 accordingly to RealtyTrac data, which is much less than the median sales price. So you can see why so many buyers and investors have been taking advantage of purchasing Mobile, AL foreclosure homes at auctions and from bank’s REO inventory because these homes are sold for way below the current market value.
You should educate yourself about the Mobile market prices before you bid on a home so you know what to offer. Just because the home is being offered at a foreclosure sale, does not always mean it is a good bargain until you verify the price and the condition of the property. While most foreclosure auction homes are sold at bargain prices, it is important to conduct your due diligence, and check home prices in the area. A local Realtor can give you the information so you can decide if the home is really a good deal or not. Many homes are in poor condition and require extensive repairs. All foreclosure properties are sold as is so it is up to the buyer to conduct an inspection. While bank repossessions sold at auctions offer deeper discounts that REO bank owned property, REO’s are also good buys and are sold below market value as well. REO’s offer buyers less risk because the buyer does not have to worry about paying off liens. The bank has already done that, and the buyer does not have to evict former owners or tenants, because the bank has taken care of this as well. When you purchase an auction property, you are responsible for paying off liens and evicting any owners or tenants still living at the property. While you are unable to obtain title insurance on an auction property, you can obtain it on a REO. Also, you don’t need cash to purchase a REO, but cash is required for most auction homes.
Finding Foreclosure Deals
Foreclosure auction properties are generally advertised in the local newspaper, and there is a notice placed on the property and/or at the local courthouse with information about the sale date, time and place. The auctions are also advertised online at various websites. Realtors do not generally represent buyers at auctions because there are no commissions paid to them. If you have never bid on an auction, you may want to check the Mobile foreclosure laws or talk to a real estate foreclosure attorney so you understand the laws and the bidding process.
Banks list homes that do not sell at auctions as REO properties with local Realtors who advertise them in the local Mobile Multiple Listing Service (MLS) so that other Realtors can find and show them to their buyers. They also advertise them in the local newspaper and on the Internet to attract buyers in the Mobile area and outside the area. It is recommended that you work with a Realtor when you are looking for REO’s to help you narrow your criteria and neighborhood search. The Realtor can assist you with the negotiations and present the offer to the bank.
Purchasing foreclosed properties is quite popular among first time buyers and investors right now so you may find quite a bit of competition at a foreclosure auction. REO’s and auction foreclosure properties give you an opportunity purchase a home in one of Mobile’s popular neighborhoods that you may not otherwise be able to afford. Buyers and investor should take advantage now of these terrific foreclosure bargain opportunities.