Investors and buyers are finding some great budget prices on foreclosure and pre-foreclosure short sales in Dayton, Ohio right now. According to Realtytrac, there were 1,529 households that receive some type of foreclosure notice during the month of September 2011. There are currently 58 properties scheduled to be sold at sheriff auctions, 89 REO real estate owned properties for sale and 10 government foreclosed homes available. The average price per square foot for a Dayton home is $61. The median sales price between June 11, 2011 and August 11, 2011 was $83,000 according to Trulia. This was an increase of 3.8% compared to the same period a year ago. The average listing price is $104,422.
Popular neighborhoods include Belmont and Old North Dayton, with an average listing price of $69,906 and $33,429, respectively. Other popular neighborhoods include Forest Ridge Quail Hollow, with an average list price of $166,801, Linden Heights, with an average list price of $60,879, Eastern Hills, with an average list price of $52,837, Twin Towers, with an average list price of $34,355, University Park, with an average list price of $120,289, Fairview, with an average list price of $19,584, and Roosevelt with an average list price of $27,189.
Buying Foreclosure Properties?
There are a couple ways to purchase Dayton foreclosure properties. One way is at a foreclosure auction sale either online or in person. Auctions are popular these days, and there is a lot of competition. If the home does not sell at the auction, the bank that foreclosed on it buys it back and it becomes real estate owned or a REO. When you make an offer on a REO property, you must do it through a local Realtor. You can use your own buyer’s agent or the listing agent. The advantage of auction properties are they are sold at very discounted prices because they have no warranties and are sold in an “as is” condition. A bank owned REO is less risky because there are no liens to pay off, former owners or tenants to evict and you can obtain title insurance. The properties are sold at discounted prices as well. You can obtain financing for a REO property, but you need cash for an auction property. If you are new investor, you might want to stick with purchasing a REO. A local Realtor can give you a free comparative market analysis so you know how much to offer for your foreclosure property.
Short Sales
Short sales can also be bought at discounted prices. They are still owned by the current owner, who is upside on the mortgage, is experiencing a financial hardship and must sell their property for less than they owe the bank because the property’s value declined. The seller must get their lender’s approval before they can close the transaction. The lender is under no obligation to approve the short sale. There is a good chance that they will approve it though if the seller qualifies and does not own other assets that they could use to pay off their loan balance and they receive an offer close to the market value price of the property. Dayton short sales can be found by working with a local Realtor, checking the newspaper, driving around the neighborhood you are interested in looking for a short sale sign and on the Internet. Short sales take about 90 days or sometimes longer depending on the bank and how many other distressed properties they have to deal with.
Also, be sure to negotiate an out clause since short sales take so long so if you find another property, you can get out of the contract to purchase the other property. The contract contingencies start running after the lender gives their approval so you don’t have to spend any money on inspections until you know the bank has approved the sales price and terms. If the property needs too many repairs, you can cancel as long as you negotiated an inspection contingency clause into the contract. Many times banks will pay the buyer’s closing costs on a REO or short sale property up to 6% of the purchase price so it does not hurt to ask for it in the purchase contract. The worse thing that can happen is the bank counters it out or agrees to pay a portion of the costs. Also, the bank will pay the real estate commissions.
Distressed properties are offering Dayton investors and buyers the opportunity to purchase a property with a built in equity so when the market does turn around, they will be able to get a good return on their investment when they decide to sell the property. With low interest rates and affordable Dayton housing, it is a great time to invest in Dayton foreclosed homes.
