The real estate market bubble burst in 2007 caused a downward spike in home prices and the recession that took place shortly resulted in a high unemployment and a number of homes being foreclosed in the Plano, TX area. Many homeowners lost their jobs and could no longer afford their mortgage payments, while others had their loans reset to higher interest rates making their payments unaffordable. With so many foreclosures, home prices plummeted further. So this brings us to the current state of the market. While the reduction in the number of foreclosures has decreased the inventory, there are still a number of homes that are in default.
According to RealtyTrac, there are 241 trustee sales in the Plano area and 219 REO (real estate owned) properties available. If you are looking for foreclosed home bargains, Plano is still a good place to find your treasure. With the costs to maintain a foreclosure home of approximately $1,300 a day, banks are looking to unload their remaining foreclosure inventory quickly. That is why so many investors have been flocking to Plano to find bargain homes.
Why Buy a Foreclosure Home?
The reasons why so many inventors/first time home buyers are asking Realtors in the Plano area for foreclosure homes is obvious. These serious buyers recognize the value in purchasing a property at or below market value. Quality homes are waiting for buyers like you to buy them. Now you can find a great home at an affordable price. Some home values went down as much as 50% during the past five years since the bubble burst. So you know when you buy a foreclosure homes, you are truly getting a great value.
Al you need is your cash or financing lined up and the time to find your property. Working with a local Plano Realtor will save you money and time. Realtors have access to the local MLS and banks list their REO properties with local Realtors. So it makes sense to seek out a Realtor who specializes in foreclosed homes into the Plano area to help you find your bargain. All offers on REO homes must be made through a Realtor. Buying a home at an auction, does not require that a Realtor represent you.
Realtors don’t usually represent clients at auctions because commissions are not ordinarily paid to Realtors. There are a few online auctions where Realtors may register their clients and receive commissions, but for the most part, auctions are for bidders only. If you have never bid at a foreclosure auction, here are some things you should be aware of:
- Homes are sold to the highest bidder at a public auction
- Homes are sold as is
- You will need to pay for the property in full at the end of the auction with a money order or cashier’s check. Financing is not available for auction properties.
- There are no warranties or representations regarding the condition of the home. It is up to the buyer to conduct their own inspections and investigations concerning title and liens
- No title insurance is available for purchase on auction properties
- You are responsible for evicting the former owner or any tenants still living at the property if your bid is accepted
- You are responsible for paying off any liens against the property as well
To ensure that you do get a great bargain, it is smart to investigate home prices in the area first. A local Realtor can conduct a comparative market analysis for you so you know how much to pay for your foreclosure home. You should take into account repairs because many foreclosure properties are eon poor or bad condition. It is important to conduct a home inspection to find out the property condition. Look for properties that just need cosmetic repairs and avoid properties that need major structural repair or home systems replaced because those costs can cut into your profit margin.
Although there are some risks involved in purchasing foreclosure auction properties, the benefits far exceed the risks. You are getting a property with a built in equity that you may not have been able to otherwise afford. When the market does rebound, you will be sitting on a pot of gold. So if you are thinking about investing in real estate, purchasing a distressed home in the Plano area is the right decision. No one knows for sure how long this opportunity will last. With home prices starting to stabilize in many neighborhoods, and the economy numbers showing signs of improvements, consumer confidence is higher than ever and foreclosures properties are being bought up. That is why many investors are finding themselves competing for these bargain homes. So act now so you too can find your bargain Plano foreclosed home.
Plano Home Market
Here is a synopsis of the Plano home market. According to recent data released by Trulia.com, the median sales price for homes in the Plano, TX area during the period June 12, 2012 and August 12, 2012 was $141,134 based on 21 home sales. The number of home sales decreased 12.5%. There are currently 1,176 resale non-foreclosure homes for sale as well as 432 homes in the some stage of foreclosure. The average listing price was $382,382 for the week ending September 26, 2012. Popular neighborhoods are Preston and Willow Bend, with average listing prices of $950,477 and $1,694,131, respectively.
So if you are lucky enough to find your bargain foreclosure home, you should grab it quickly before someone else comes along and buys the home. Once the real estate market rebounds, you will be able to either sell your home for a profit or let it keep appreciating. There is a high demand for good quality rental homes in the Plano, TX area so you may want to fix up the home and rent it out for awhile. Whatever you decide to do with your foreclosure property, you are getting an opportunity to build your investment portfolio and obtain a high rate of return on your investment. So don’t wait and lose this once in a lifetime opportunity, act now!