The financial crisis in the US, no matter where the blame falls, has caused an over-abundance of foreclosures on the market, in many areas of the United States. The national buzz is that homes are being bought for 50 cents on the dollar... Unfortunately, or fortunately, depending on your perspective, that simply is not true in San Antonio. So let's talk about it:
Through misfortune or fraud, an owner loses their home to the lender through the foreclosure process. Depending on the bank, they are now trying to sell an asset to offset the loss of the foreclosure itself. The process of foreclosure is expensive. They have to hire an appraiser, a local asset manager, an inspector, pay for some repairs (sometimes), and then maintain the home while it is being sold. So the lender not only lost money through the defaulted loan, they are losing money daily through the process of selling the home. They usually hire an asset manager and a Realtor, and sometimes that is the same company. The process is somewhat burdensome, and costly. So, do you really think they will just price it 30% below market and dump it? Think about it... that really makes no sense.
What the lenders are doing when hiring the Realtors and asset managers is positioning themselves to sell the home for the very most money they can, just like any other seller. The difference is that they are not obligated to disclose anything about the house, and they are not liable for defects after closing. So, the market analysis and appraisals are done, and the home is placed on the market at fair market value, or slightly less. Typically, the lender has standard procedures to market at one price, and reduce the price should they not sell it at that price - usually there is a 30 day analysis, and price adjustment if deemed necessary. This goes on until it is sold. Through the research I have done, there really is no rhyme or reason as to why one home sells for market value or for substantially under market value. Sometimes it is the neighborhood, sometimes its their marketing strategy - or lack thereof. In any case, my point is that you cannot say all foreclosures are a good deal... so you need to be very, very careful.
So, here is the push of this whole commentary: if you are looking to buy a home, include foreclosures in your search. It is every bit equally possible that someone may price their home below market because they need to sell, and that may be the best deal for you... better than any foreclosure. The foreclosure home is completely "as is", while you may have some recourse if you discover a defect when buying from an individual owner. There is no rule in real estate. Everything is numbers until it is you writing the check. Bottom line is that you need an expert to work through all the data and options to be sure that you are making a solid investment.
Therefore - if you are looking in San Antonio, or around San Antonio, you can call me. I have been selling homes and investment properties locally for over 14 years. I will give you my honest opinion. I can give you testimonials from my clients, who have said they are very, very happy they chose to work with me. Give me a call. 210-979-0111
