There are several different ways to purchase Athens, GA foreclosed homes. Foreclosure auctions, REO properties that are owned by banks and listed with local Athens Realtors and pre-foreclosure short sales negotiated with sellers and their lenders. Foreclosure and pre-foreclosure short sale homes give buyers an opportunity to purchase a home under market value. That is why so many investors and first time home buyers have been purchasing foreclosure homes in the Athens area. They recognize the value of owning a home that has built in equity.
Auction vs. REO vs. Short Sale
Auction properties may offer the best prices, but have more risk because the new buyer must pay off any existing liens and pay for the costs to evict a former owner or tenant still remaining at the property. There is no title insurance that can be purchased with a foreclosure auction property. Foreclosure auction properties require the buyer to pay cash for the property. The buyer may or may not be able to inspect the property.
With a REO bank owned property, the lender has already paid the liens off, and the buyer can conduct an inspection and purchase title insurance. The buyer may be able to obtain their own financing on a REO property. Both homes offer the potential for a high rate of return on the investment. A short sale also allows the borrower to inspect the property and obtain title insurance. Some short sales require all cash, and others may allow the borrower to obtain financing. It depends on each lender’s policies. All foreclosures and short sales are sold as is. Many foreclosures are in bad condition and need major repairs. Short sales may be in better condition because generally the former owner or tenant is residing there and taking care of the property where foreclosures remain vacant for as long as a couple years before they go to auction and sometimes longer if they do not sell and become REO’s. If you are handy, you can do some repairs yourself and save a bundle of money.
To get an idea of how affordable homes are in Athens, according to Trulia the average price per square foot for a home was $76.00. The median sales price for the period September 11, 2011 to Nov 11, 2011 was $100,108, a decrease of 23.6% compared to a year ago. However, Trulia reported that home sales increased by 13.5%. There are 339 homes facing foreclosure. The average list price for a home was $198,230 for the week ending Nov 30, 2011, and the median sales price was $100,108. Popular zip codes and list prices are as follows:
If you are in the market for a property in the Athens area, you should consider buying a foreclosure or pre-foreclosure property now while interest rates are low and inventory is high.