Distressed Properties and What They Mean to You
October 26th, 2011
Since affordable pricing tops the list of motivation and criteria for buying, it is no surprise that many first-time home buyers purchase distressed properties, which can be up to 30% below market value. Cost-conscious buyers are the most interested in distressed properties, but it is important for them to take into consideration the additional costs and expenses related to damage or neglect that occurred during the foreclosure process. On average, distressed property prices for first-time home buyers are $185,971 with a median of $153,000.
Another consideration for buyers is the transaction time. Short sales and foreclosures typically take considerably longer to close because buyers deal with institutions rather than individual sellers. Yet buyers who are patient can benefit by paying less. As a seller, it is important to understand the current real estate market, and a real estate agent is there to guide sellers every step of the way. Agents can help sellers understand what the level of distressed sales and competition look like in their area. This way, they will be able to price their home right and will more than likely be able to attract attention from potential home buyers.
Source: Keller Williams Realty, Inc., “This Month in Real Estate,” released October 2011.
Posted By: Keller Williams Realty of Northern Colorado – Loveland Real Estate Agents,
Linda Hansen, Broker Associate with Keller Williams Realty-Loveland, has donated 100 teddy bears to the Loveland-Berthoud Association of Realtors® (LBAR) Easter Project. The annual project benefits Project Self-Sufficiency and Alternatives to Violence by providing Easter baskets for families in need. LBAR is collecting candy, crayons, coloring books, small children’s books and small toys for the baskets. This is the third year in a row that Linda has donated 100 bears for the project.
