GSIG LLC
Homebuyers now in the driver seat, as foreclosed property inventory increases.For months we have been talking about and waiting for a “flood” of bank owned properties that are waiting to hit the marketplace. Many of us thought that with this flood, the selection of properties would increase and homebuyers would snatch up these homes quick.
What this flood of bank owned properties has created are issues both foreseeable and not so easily thought of beforehand. With the massive influx of bank owned properties (REO)a few things have happened, for one inventory has increased – and as we all learned in school, when supply is high price is low.
Due to the influx of these homes buyers in Florida have been able to purchase homes for an average of 10% lower than the last listing price according to Zillow.com. Additionally, homes have been left on the market for an extra week longer compared to one month prior. Home prices have fell also for these bank owned properties (REO), 28% of the homes listed in Florida have had some sort of price reduction since the beginning of September 2009.
A few weeks ago, I discussed why banks do not want to release a surge of these properties at once and here is why. As noticed with the recent influx of bank owned properties (REO), two things have happened. For one, with a surge in supply overall prices have reduced not only for (REO), properties but for regular homeowners who have noticed a substantial loss in value of their homes.
With so many (REO), foreclosed properties on the market for sale at a much cheaper price valuations have determined that those homes not bank owned have also lost a big chunk in value. Secondly, as more and more vacant properties come into our neighborhood they invite vandalism and squatters which have a direct correlation with home values depreciating.
Home buyers can now take advantage of this influx, although there are negative effects due to these bank owned (REO), properties, homebuyers can use it to their advantage and negotiate purchase prices and can dictate to an extent what they are willing to pay.
For more news on bank owned (REO) , properties and local real estate news check back with us again next week or visit our website at http://www.gsigllc.com/
