Written by Rick Wesselhoff
Published: November 29th, -0001
I'd guess that there are less than a dozen or so Sedona homes that are on the market due to a recent foreclosure- and dozens more that are in danger of going into foreclosure if they don't sell soon. I spoke with an agent that handles the listings for banks and other institutions that hold title on these properties... and they're tired. They're worn out because they've been receiving up to 8 offers on homes that have been foreclosed upon. It's important for buyers to be aware that when properties come back on market as a foreclosure they're priced under the market value. So, if a property appraises at 500k and it forecloses and comes on the market for 285k... you won't be able to write an offer for 175k and get this home. You'll need to be much closer to the list price of a foreclosed home to get the deal. There are lots of other investor/buyers out there and they're all looking for a deal, but it will help you if you stay closer to the price on these homes. On the other hand, when a home is in pre-foreclosure or a potential short sale, then you might have more leeway on offering a lower $ amount. This is because banks and other institutions dont want to own houses... they want the interest on the loan. And, on average, they lose 80-90k when a home goes into foreclosure, so they'll (generally) accept an amount less than what's owed. For example, if a homeowner owes 400k on a house, you might be able to pick it up for 325-350 depending on the lender. Each home is taken case by case, so this may not apply to every home in this situation, but it's what I'm currently seeing in the Sedona Real Estate marketplace.