San Jose, CA has numerous foreclosure opportunities. There are 1,783 properties in default, 2,766 trustee foreclosure sales, and 1,876 bank owned REO properties according to RealtyTrac’s data. With so many homes in foreclosure or about to go to foreclosure, you should be able to find a property in just about any neighborhood and price range. California was one of the hardest hit areas in the country and millions of homeowner have lost their homes resulting in a large inventory of affordable homes to invest in right now.
According to Trulia.com, the average price per square foot for a San Jose home is $3,865, that is an increase of 999.9% compared to the same period last year. The median sales price for homes in San Jose CA for the period January 11, 2011 to March 11,2011 was $381,500, a decrease of 4.6% compared to the same time last year. Home sales were up 2.1%. The average listing price for San Jose homes was $511,458 for the week ending April 27, 2011, which represents an increase of 0.3% compared to the prior week. Hot neighborhoods include Edenvale and Evergreen, with average listing prices of $383,493 and $690,149, respectively.
Finding Cheap Homes
The easiest way to find bargains is working with a local San Jose Realtor who has access to the local MLS and has established relationships with other brokers in the area. The Realtor can help you find your San Jose bargain home faster. The Realtor can keep you informed of new properties as they come on the market and assist you with making an offer. REO’s are in high demand as well as short sales right now. If you have time to wait, a short sale offers you a good opportunity to purchase a home below market value.
Foreclosure auctions offer good homes at cheap prices as well. Finding a foreclosure auction property in a San Jose neighborhood of your choice is not that difficult because there are so many homes in foreclosure right now. Do your due diligence first to make sure you know how much comparable homes are selling and you have an inspection to find out the condition of the property. You are responsible for paying off any liens on auction properties and evicting any former owners or tenants that may still reside at the property.
FSBO’s (For Sale by Owner)
For sale by owner signs are everywhere in San Jose. Many sellers are upside down on their mortgages and may be candidates for short sales. If you find a short sale, make sure the owner contacts their lender to see if the property qualifies before you waste your time. You can also check the local newspaper and the Internet for sale by owner properties.
Purchasing San Jose foreclosure properties give you the opportunity to obtain a good quality home at bargain cheap prices. You are buying a property with built in equity. When home values start rising, you know you sell the property at a profit if you desire. If you are thinking about rehabbing and then leasing it out, there is a high demand for good affordable properties in San Jose. Right now is the best time to purchase a bargain priced San Jose, CA home to live in or for investment purposes. Prices are affordable and interest rates are low. You should be able to find a home that meets your criteria in a neighborhood and price range of your choice.