Are Bank Foreclosures In Florida Now A Great Opportunity?
Author: Realty Advisors of Southwest Florida, Inc.
Category: Real Estate
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Recent statistics indicate an upward trend in bank foreclosures across the state of Florida. Market prices on condos and homes are near the bottom. Buying bank foreclosures is one of the most effective ways to secure a profit in Florida real estate. The current market conditions are very favorable for investing in foreclosures.
Naples and Marco Island Foreclosures Offer Attractive Opportunities
If you have ever had an interest in purchasing real estate in Naples or Marco Island, you should probably take another look. There is a limited supply of properties close to the pristine Gulf of Mexico beaches. A high number of foreclosures in Naples and Marco Island have created the perfect opportunity to get a great deal on a home or condo in these sought after resort communities. Foreclosed waterfront and beachfront properties are selling at the lowest prices in years and an investment in these areas is very desirable. The good properties are selling quickly.
Buying Bank Foreclosure Properties
The most important step in buying a foreclosure is to become familiar with current market values in the area you would like to invest in. You should also have a thorough inspection done to determine the repairs that might be needed. Your offer should be reduced by the amount of the repairs needed and allow for a profit for doing the work. You should consider the cost of building a home today. Impact fees for water and sewer are very high in Collier County. If you can purchase a home for less than it would cost to build then you probably have a home worthy of consideration.
Bank Owned Homes and First Time Home Buyer $7500 Tax Credit Is A Winning Combination
The increased number of foreclosures has created a great opportunity to purchase a bank owned home at a substantial discount. The first time home buyer tax credit is offered as an economic stimulus to help make homes easier to afford. The $7500 Tax Credit can be used to assist the first time buyer purchase bank owned homes at reduced prices. A first time buyer should realize that a home is a long term investment. Some banks are offering up to 90% financing on properties after taking substantial price reductions. These new loans are highly favored by the banks because of their favorable loan to value ratios. You should offer a deal that they find hard to refuse. If the bank can justify taking your price and get a new performing loan they will be more likely to give your offer careful consideration.
Bottom Line:
If executed properly, purchasing a bank foreclosure can be a very profitable investment. The greatest advantage is the discounts that one can get buying the right property. You should try to purchase at a discount of at least 20-30% of the market value. Focus on quality properties in prime locations that need minor repairs. Don't be afraid to make some offers, Get pre-qualified by your bank and get a letter from your bank to show you are able to buy the property you want. This will help separate your offer from those buyers who are not prepared. The banks will be much more receptive if they know they have a real buyer.
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Keywords: Florida Bank owned Homes, Naples Homes, Naples Condominiums, Waterfront Foreclosures, Beachfront Foreclosures, Pelican Bay, Pelican Bay Condominiums
View Count: 32
Date Submitted: 8/26/2008
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