Foreclosure in Las Vegas>Question Details

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Do you think foreclosures are a good deal? Why or Why Not?

Asked by Voices Member, Fri Aug 31, 2007

Las Vegas become a hot spot for foreclosures. As a Las Vegas Real Estate Agent, I personally educate my buyers on exactly what it takes to get into a foreclosure. It often seems, that once the bank pads the fees that the required lender & title company charge, the savings are not that much. In addition, you have now purchased an as is home with no protection. However, I have had clients be able to purchase a home simply because it was a foreclosure and the sales price was more affordable. I feel foreclosures, bank owned, are much more realistic to get a buyer into than a short sale. I personally avoid the short sales like the plague! How about you?

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6
Short sales....Plague..... How fitting.

Foreclosures are the lesser of the two evils.

Some are a good deal, some are not such a good deal, some will eventually be a good deal.

Short sales on the other hand are like my wife's cooking, you`re taking your chances.
1 vote Thank Flag Link Fri Aug 31, 2007
Mr.P, Other/Just Looking in Arizona
MVP'08
I'm pretty much in line with you. Closing short sales with me is a real shot in the dark. At least with a foreclosure price is typically not a moving target. AS far as are they a good deal or not...it depends on the client. How fast do they need to move....can they afford delays.....how handy are they....what is their risk tolerance.....how connected in the community are they. I'd guess 90% of my clients cannot buy a foreclosure due to the additional headaches. For example if they have to stay in a hotel and eat meals out for 5-10 days while the bank gets their act together to close then that can quickly start to eat into any savings gained. I think most of my clients think when they tell me they want to buy a foreclosure that they can get it at 50% off and it will be in nice condition. When I show I usually take a backup plan. More often than not I'll take them in the first home and when they see a room that has had an unleashed dog in it for a month that wasn't walked and see the toilets and light fixtures missing, then they're ready to get realistic.
1 vote Thank Flag Link Fri Aug 31, 2007
Bruce Lynn, Real Estate Pro in Coppell, TX
MVP'08
Contact
Foreclosures represent the bottom of the local areas real estate market and therefore are potentially great deals.

Today's buyers seem to be focusing on foreclosures and bank approved short sales as the place they feel safest in today's uncertain times.
0 votes Thank Flag Link Fri Jan 30, 2009
From a recent post on my blog http://www.activerain.com/blogsview/524066/Should-Buyers-Look-at
You may find these stats interesting comparing bank owned, short sales and NON bank owned/short sale

Southwest Las Vegas Area priced under $300k since 1/1/08

430 Bank owned property sales
Median sale price per square foot $119.86
Average sale price per square foot $120.84
Median list price to sale price = 100%


89 Short Sales (only 89 closed!!!)
Median sale price per square foot $129.70
Average sale price per square foot $128.64
Median list price to sale price = 99%


512 NON short sale or foreclosure sales
Median sale price per square foot $131.55
Average sale price per square foot $135.19
Median list price to sale price = 98%
0 votes Thank Flag Link Fri May 30, 2008
Foreclosures can be a good deal when they are being sold by HUD or VA or FDIC or a bank and when they are actually being financed "as is" by that institution.

In the late 80's we had a period when houses lost about 50% of their value, most of the houses went back to the banks, and then they banks went broke so they went to HUD or FDIC etc.

You could buy a house "as is" for $100 down. A house that went for $130K brand new in 1985 could be purchased in 1988 for $55K and only $100 down to move in.

It will take a little while before we get to that point. But when and if we do, they are a good deal.
Web Reference: http://www.valleymarket.com
0 votes Thank Flag Link Fri Aug 31, 2007
Foreclosures are risky business. Most of the homes being sold have been "vacant" for quite a long time. Damage occurs that cannot be seen with the naked eye. Often home inspections miss the big stuff, because the problems is "out of site". Even though it's said "banks aren't in the business to own homes, they take a long time to make decisions and more often that not the final price isn't "such a good deal".
My advice.. buy a home less than 7 years old. All the kinks are worked out,decks are on, basements have been finished. landscaping done. They're turn key.
0 votes Thank Flag Link Fri Aug 31, 2007
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