Akron, OH’s large inventory of foreclosure homes has buyers/investors flocking to the area. There are many places to find foreclosed Akron homes such as property auctions, government foreclosures, foreclosure real estate listings on the MLS, Internet websites and newspapers as well as driving around neighborhoods looking for signs. According to Trulia.com, the median sales price for the period January 10, 2010 through March 10, 2010 was $62,000, which was based upon the sale of 633 homes. This was an increase of 19.2% over last year the same time. For the week ending April 14, 2010, there were 1,482 homes in either pre-foreclosure, auction or REO stages. The average listing price for the week was $132,918, which is a decrease of 0.1% compared to the week before. Hot neighborhoods include Firestone Park and Northwest. Average listing prices for these neighborhoods are $82,667 and $211,630, respectively.
What You Should Know About Foreclosed Homes
While purchasing bank owned homes is lucrative, there are a few things that you should know about foreclosed homes. All are sold in an “as is” condition. This means what you see is what you get. That is why it is important to do your due diligence and conduct an inspection on the home. Foreclosed houses are sold at or below market value. Investors and first time home buyers have been competing for distressed properties. Before you make an offer, check the prices of similar homes sold recently in the area.
Foreclosure Auctions vs. Bank REO’s (real estate owned) Properties
Foreclosure auctions are published in the newspapers, or you can also find the information on various websites on the Internet. Here are some things to consider when purchasing a foreclosed home at foreclosure auctions:
- Foreclosure auctions require at least a 10% bid down payment.
- The home is awarded to the highest bidder.
- Homes purchased at auctions are generally purchased for cash at the close of the auction. You have to check the auction rules to see if they allow you to get financing.
- You cannot purchase title insurance on homes purchased at foreclosure auctions.
- You may not be able to inspect the foreclosed home at foreclosure auctions.
- You are responsible for evicting former owners or tenants on the property.
Bank Owned (REO’s) Properties
REO’s properties are properties that did not sell at foreclosure auctions and are purchased back by the bank. Therefore, you are making an offer to purchase the property directly with the bank. Advantages of purchasing an REO over foreclosed homes at foreclosure auctions:
- You can inspect the home.
- You can obtain title insurance.
- All liens have been paid or will be paid at or before closing.
- You can obtain your own financing.
Right now there are many opportunities to purchase bank owned properties in the best neighborhoods of Akron, OH. There is an abundant inventory of luxury properties as well.
Investors are also taking advantage of investment opportunities to purchase Akron short sale pre-foreclosure properties. The advantage is that pre-foreclosures can be purchased at or below market value as well. Short sales take longer, and there is no guarantee that your offer will be accepted. It is hoped with the government’s new guidelines that are part of the HAFA program that lenders will take advantage of the incentives offered by the government and start approving short sales within the 10 day period. Bank of America is one such lender that has expressed interest in the program. Hopefully the rest will follow. The one problem with short sales has been the 3-6 month or longer waiting period for the lender to respond to the offer. If you do buy a short sale, you can have the home inspected, obtain your own financing, obtain title insurance and the seller’ lender will pay off all the liens before closing.
Akron, Ohio’s has thousands of foreclosure and pre-foreclosure inventory. HUD alone owns over 1,400 homes in the area. With so much available inventory and low interest rates, there is no excuse not to invest here now.