Home prices are stabilizing in some markets. In some markets and in some neighborhoods, prices are still falling a bit, and in some a definite rise has begun. Foreclosures are still occurring and increasing in some markets. They have slowed in some markets as banks are trying other methods to stop the hemorrhaging.
Lauren Holloway, a realtor and blogger for the Patch Network, covering Danville & Alamo, California, addressed falling home prices and property values related to foreclosures.
When No One Else Will Buy
Lauren commented, “If an investor buys your neighbors house at the foreclosure auction, then you got lucky: They will fix it up, stage it, and sell it for top dollar.”
I agree that the best outcome is often for an investor to buy the house, either at the Short Sale stage, at the foreclosure auction or as an REO direct from the bank. If the distressed owner is lucky, he will make contact with an investor who can help with the owner’s problems.
An “investor” may be able to buy a house when no else can or wants to. And they may be able to offer creative alternatives to solve the problem. If such a Good Samaritan arrives in time, it may be possible to forestall the foreclosure, or even stop one in progress.
Then the homeowner won’t have to lose their credit rating with a foreclosure hit. If you have any equity in your home, there may be a way to save it. If the mortgage is upside down, options are fewer, and a Short Sale may be necessary, but time may not allow that. There may be another way the traditional system does not provide.
Investors are the primary force improving neighborhoods and helping first-time buyers or credit-challenged buyers get into a like-new home, while the banks make it harder and harder to borrow money. And actually, savvy rehab and resale investors will price their homes at below the market to sell the house more quickly, and give the new owner even more equity value in the best house on the street!
As investors improve homes and neighborhoods, and raise home values, overall market prices improve while houses still sell at an affordable, comparably low price level.
And more houses sell faster through their multi-channel aggressive marketing. You don’t usually sell a house very fast by just listing it on the MLS and waiting, hoping someone will call on it. Average time to sell a home varies but in some areas it is 9-12 months. Working through safe non-traditional channels, closing can come in weeks or even days.
Comments originally written on The Danville Patch, the Patch Network
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