There have never been more luxury foreclosed homes on the market in the United States. According to a recent study, the number of foreclosures for sale with values exceeding $1 million has increased by 90% since 2007. Nothing in the current housing market environment or data suggests we will see anything but a continuation of this trend in the near term. Luxury home buyers are sitting pretty right now with a glut of high-end foreclosures on the market in some of the country’s most desirable communities. In the first quarter of 2011 foreclosed homes sold for an average of 27 percent less than non-distressed properties.
Tips for Buying High-End Foreclosures
Transactions involving luxury foreclosures, bank-owned properties and short sale homes tend to be more complicated than standard home purchases, and they generally take a lot more time to complete. That having been said, here are some tips for getting the deal done on your luxury foreclosure:
Get Professional Help - You want to make sure you have the best real estate agent in town on your side. He or she will have access to all of the other professionals you will need to have on your team to close a short sale or foreclosure transaction. In a short sale transaction, for example, an attorney experienced in negotiating with the banks can be an invaluable resource. A good real estate agent will already have a team in place to make these types of transactions on distressed properties a seamless process.
Research the Market - Your real estate agent can provide you with a mountain of information on the local market, but you’ll want to take the initiative to do some homework on your own. Do some research on the available properties in the area you want to make a purchase and look at the prices similar properties have commanded in the past. Consumer oriented websites for online real estate research abound, but a good real estate agent can get you set up with a Listingbook account allowing you to search the Multiple Listing Service (MLS) just like a real estate agent does.
