Hampton Roads / Virginia Beach Foreclosures 50% off? No.

Have you ever seen the late-night infomercials on TV spouting all kinds of sound bites about foreclosures and buying real estate in general – “Homes for $100!” or “Homes for 50 cents on the dollar?” Since the housing bubble burst back in the mid-2,000′s, bank-owned property (“foreclosures”, “REOs”, etc..) have been very popular with all home-buyers looking to score a great deal. The reality of our Virginia Beach / Hampton Roads real estate market may be a bit different than what you may think, though. Below are some tips to remember when searching for a home to buy.

1: A popular misconception is that Hampton Roads and Virginia beach Foreclosures can be bought at a substantial discount – this is simply not true. When a bank forecloses on a home, they hire a local real estate agent to determine the proper value of the property. Eventually it will come onto the market, and be available for sale at or close to this value. More often than not, bank-owned homes are listed at an appropriate price based on their condition – which may mean significant work on your part in order to About Buying Virginia Beach and Hampton Roads Foreclosuresmake the property liveable. Frankly, some homes are trashed – missing heating systems, no kitchen appliances, broken windows, graffiti, etc – we’ve seen it all.

2: In our area, foreclosures are selling at about 97% of the current listed price. This means that a foreclosure in Virginia Beach that’s listed for $200,000 will, on average, close somewhere in the low $190ks. Could you offer lower than this? Of course. You can offer anything really, but if you’re serious about buying the property (which you should be if making an offer), it’s to your advantage to make your offer a realistic one. This is especially true when, as in our area, inventory levels for average priced foreclosures are hovering in the 2 month range, meaning quite a bit of competition among buyers for these properties. If you really want the home, make your offer a good one.

3: We advise our clients who are interested in Virginia Beach and Hampton Roads Foreclosures to consider ALL AVAILABLE LISTINGS, not just bank-owned properties. Often, when you look at the big picture (work involved, condition of the property, appraisal issues, etc…), regular listings offer a much better value for the average buyer, not to mention that with non-foreclosure (“regular”) listings, you’re actually dealing with a real seller who knows the property intimately…not someone sitting in an office a few states away who’s probably never seen the home.

As always, when buying a home, make sure you ask plenty of questions about ANY property in which you have some interest, and above all, make sure you understand the process (which can be significantly different when you make an offer on a foreclosure or a short sale) before you commit yourself in writing. As your Agent, we’re here to advise you throughout the process so that you can make an informed decision….but the decision in every instance is yours to make.

HAPPY HOME SEARCHING!

Use our Hampton Roads MLS / Virginia Beach Foreclosures Search Tool Here.

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