If you are interested in buying a bank owned or government owned property
in today's real estate market (August 2013), be prepared to make a good offer.
There are a multitude of buyers for these properties and with home prices still very attractive, although rising steadily, you are likely to be bidding against other buyers.
To help you to navigate the market conditions, I've provided a few graphs and statistics gathered from the FMLS, of recently sold foreclosure, bank owned, corporate owned, and HUD owned single family properties in Gwinnett County
and Walton County.
Below is a summary analysis of the 380 recent foreclosure or bank owned home sales (as of May 2013) in Gwinnett County and Walton County.
The chart below has three graphs.
The first graph of blue bars shows the percentage (on the left) of the orignal list price that properties eventually sold for, and how long they stayed on the market (across the bottom).
The second graph of brown bars shows the percentage of the final listing price that the properties sold for and how many days they stayed on the market.
The last graph shows the comparison of the original listing, final listing, and sold prices for the properties in different price categories.
At the bottom is a numerical comparison with high, low, average and median prices for the sold, original list and final list prices.
Notice in the first graph how the properties sold for a lower percentage of the original listing price, the longer they were on the market, with 2 exceptions- in the 331-360 day, and the 390-420 day categories. In those 2 categories according to the data of the first graph, properties sold for more than the original listing price. In the second graph, however, in those same two categories they sold closer to the final list price. This data tells us that at least one property had a price increase before selling. Keep in mind that this data is provided to the multiple list service by humans and where there are humans there is human error. It is very likely that a real estate agent or employee mistakenly entered the original list price too low, and although it may have been corrected immediately, it would have affected the data.
Another unexpected result is in the bottom graph, in the $600,000+ category showing the difference between the original list price and the final list price and sold price. This could be the result of one or more high priced properties that never sold at all (or another case of human error in any of the three pricing categories (original and final listing, and sold, prices) for one or more high priced property. Alternatively, since these reports are less than 90 days old, the property could be relisted and yet to sell.
The last contradiction to the current market is the sale or sales in the $0 to $32,000 category of the final graph. There was obviously a very low priced foreclosure sale, probably only one, affecting that chart.
Regardless of those unusual instances, these charts and graphs prove one definite fact about foreclosoure sales in recent months. The vast majority are selling for above the listing price. And they are probably receiving multiple offers.
This is good information to know if you are interested in buying a foreclosure for your next home or for your investment portfolio.
And be sure to contact me (Barbara) for more information about buying a foreclosure