Is a distressed property the right deal for you?


With the first-time homebuyer tax credit deadline having come and gone, you may be asking yourself, “What now?” Fortunately, the door is now open to a new wave of savings: distressed properties.

For many buyers, the term foreclosure brings up images of run-down homes with no heat and rotting wood. While this is still the case for some homes, it’s no longer the standard. In fact, first time buyers are snatching up distressed deals in decent condition for great prices on www.HomesForSaleKalamazoo.com.

According to a November 2009 Keller Williams Research Buying Distressed Properties Survey, 40 percent of all buyers for bank-owned foreclosures (REOs) were first-time buyers in 2009. 50 percent of all short sale buyers were first-time buyers.

By definition, a distressed property is one that was purchased with a loan and the homeowner is no longer able to make their mortgage payment resulting in foreclosure – or if they’re lucky a short sale – meaning they owe more on the home than it’s currently worth. With a 20 percent increase in foreclosures from 2009, distressed properties still remain a large portion of home sales and are going to continue well into 2010 as homeowners continue to feel the effects of an economy on the mend.

If you’re in the market for a home and are prepared for a unique transaction, a distressed property can be a great option. Here’s why:

Prices are low – Buying a foreclosed property is an excellent way to get a home for less. Research shows you can save 10-40 percent over the price of similar properties in a traditional sale.

Mortgage costs are low – With rates hovering near historic lows, financing costs to are favorable. Keep in mind, rates are always changing. It’s important to begin the pre-approval process so that you know how much you can realistically afford.

You have options – The number of homes in some stage of the foreclosure process still remains high. RealtyTrac, a site dedicated to tracking foreclosures across the country, estimates that there are approximately 2.1 million homes in some stage of foreclosure in the United States.

Sellers and lenders are motivated – According to data from RealtyTrac, in April, one in every 387 households in the country has received a foreclosure filing. The bottom line is that many sellers are still feeling the pain of a down economy and are anxious to out get from under a home that is putting stress on their current financial frustrations. While it is still an emotional transaction, these sellers are willing to come down on price or even consider concessions such as helping out on closing costs. Banks holding on to large portfolios of Real Estate Owned (REO) properties want to unload quickly – and price these home to sell.

www.HomesForSaleKalamazoo.com for all bank owned, reo, foreclosures, government owned homes and short sales in Kalamazoo and Portage

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About Buying Kalamazoo
Matt Mulder is an award-winning real estate professional in South West Michigan as well as leader and CEO of the #1 Real Estate Team in the area. The Matt Mulder Home Selling Team consistently helps over 300 families a year with their real estate needs, and would love to help you buy and sell as well! Matt launched his career in 2006 at the age of 23 being one of the youngest professionals in the area, after graduating from Western Michigan University with a degree in Business Management. Through hard work, persistence and devotion to great client care, Matt has grown to be in the top 1% of real estate professionals in the world. His determination to treat each client with the same care and respect, no matter what, has catapulted him to the top of his game. Using tried and true methods, as well as a proven systematic approach, Matt and his team are committed to making sure each and every person is 100% satisfied with their buying or selling experience.

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