We now have 2 1/2 million foreclosures in the pipeline. We have 7 million foreclosures coming in the next 1-3 years. When those hit you should find prices dropping. Remember, we have big unemployment, we have poor loan availability. FHA is finding bottom line problems, low reserves, high defaults= less loans in the not to distant future. I bet if you wait intil 2011, maybe 2012 you will find much better prices. PLUS by then you should have even more saved for the purpose.
Be patient, be smart, wait, watch, and prepare. Save a great downpayment, live like the poorest person you know. Save all the money you can. Try shopping at goodwill. Eat much cheaper foods, and cut out any unnecessary expenses like coffe you do nor brew at home. Then in awhile you will be sitting pretty.
And foreclosures are being snapped up by all cash buyers.
It is also not unusual to run into multiple-offer situations. The most I've run into was 98 offers! Just because a property is being sold as a foreclosure doesn't mean it's going to be easy or even cheap. REOs are always AS IS --- so you'd have to have additional cash to bring it back to habitable condiion.
That's the reality. Knowing what to expect, you won't get too disappointed.
I'm sorry there is no habitable home at that price range in San Francisco. I've been looking too!
Despite reports of the demise of real estate in San Francisco there are many who are searching for bargains. Being America's Favorite City - there is typically always a large pool of buyers looking for 'BARGAINS' in San Francisco at any given time - even now - with CASH!!!
At $125,000 which I'm sure you worked hard to save you couldn't even purchase a Mayor's Office of Housing Program 'BMR' unit for that price. You could however leverage that savings into a larger property and that kind of cash would be a great down payment for $600,000 home. I'd rather tell you the truth than tell you the fantasy of finding a leprechaun at the end of a rainbow or tell you that if your rub a magic unicorn you'll find that SF 3 Bedroom 2 Bath home with 2 car side by side parking for $125,000 in foreclosure... It just doesn't exist Subu.
Nevertheless to amuse you and introduce you to REO (Bank Owned Property) and Short Sales - which is typically the next question clients have... I ran across this YOUTUBE Video about how to buy a Bank Owned Home - aka (REO)... You may find informative and amusing. I find it an incredibly accurate amalgamation to experiences I've lived through with my clients.
The SF REO/Short Sale agents my clients have encountered are typically out of this world - let alone out of the 415 area code! You will probably find it more amusing than your search for a habitable property in San Francisco below your $125,000 limit.
Wishing you all my best and in good spirits! }:-)
Zephyr Real Estate
NOW IF YOU WANT A BARGAIN!
SOMA Luxe for $400 sq ft -
Open Sunday 10/25 2-4 or by appointment - call 415-695-2715 (not a short sale nor a REO!)
You could have a realtor set up a search for you so that if a property comes up in that price range you'll know, but I wouldn't hold my breath. Most likely if anything does come up it's going to be some kind of BMR unit which has income restrictions, a fractional ownership deal on a luxury property, an incredibly run down property where in a dangerous part of town, or a vacant lot such as the one Jed identified.
If that's the top of your price range you can buy, but you'll have to go outside of San Francisco. Also keep in mind that many properties that have been foreclosed have not been well cared for and you will need additional funds for repairs and/or upgrades.
Lance King/Managing Broker