Employment in McKinney has suffered some losses but not exceptionally high, and the job gains in nearby areas tend to override those job losses by bringing in buyers from other areas.
There is no concept in my estimation that covers a neighborhood in and of itself having a distressful problem - except some rare circumstances like Love Canal or Three Mile Island that affect an area in wholesale fashion. We don't know of any distressful situations like that anywhere around D/FW.
The stock market might be a good one to consider for comparison: people don't buy stocks when they're down, because they're down. And they don't buy stocks when they're up, because they're too expensive. So, when do you buy stocks? Remember "Buy Low, Sell High" and apply it to real estate as well. If you don't buy a house because the neighbors are in distress, then you surely won't buy when the neighbors are highly successful because the the houses will be too expensive.
A particular house might have issues with deferred maintenance due to the owner not having money to keep the house up. So, have the house inspected to find any repairs that are needed. In that sense 'caveat emptor' but take advantage of the lower prices to get a good deal. Ask your Realtor for advice on pricing.
You might want to see the graphic I posted on my website below for a comparison of the states for negative equity.
Linda gave a great answer. Buying a home all depends on your vision and objectives. If you plan on living in that home for the next 15+ years, those 3 foreclosures probably mean nothing to you. If you are buying as a short term purchase, that is a whole nother story.
You need to work with a licensed agent who is familiar with the market you are interested in and can discuss your objectives, your current situation, and what options you may have. There is very little "general advice" in real estate. All advice is VERY dependant on multiple factors that change with each neighborhood, each buyer, and each seller.
If you would like a personalized discussion, please feel free to call or email me.
Keller Williams Elite
Lynn911 Dallas Realtor & Consultant, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
You have seen some good advice below. The most important things to take away from them are:
1. Buyer Beware is something that you should always practice, regardless of the foreclosures.
2. As part of the Buyer Beware, you should have the home inspected by a licensed inspector that you choose (one that works for you, not the seller).
3. Foreclosures could bring values of other homes in the area down slightly, however it shouldn't be an indicator of future declines. (once we get through this tough economy the foreclosures should begin to diminish and home prices will rebound).
One other item of note: if you are not already working with a Realtor who represents YOU as a buyers agent, you are doing yourself a disservice. There should not be a cost to you as a buyer to have a Realtor represent you. The real estate agent that has the home listed is working for the seller (not you) so you will want to hire someone to keep your best interests at heart.
Good luck with your home shopping. If our team of agents can be of service to you, please let us know.
Coldwell Banker Jane Henry Realtors
North Texas Top Team, Realtors
Susie Kay, GRI, CHMS, SFR
United Real Estate
III Lincoln Centre, 5430 LBJ Freeway #280
Dallas, TX 78240
Servicing your real estate need is my priority!
A thorough home inspection will give you the overall condition of the property you are looking at.
Several foreclosures on a street can drop appraised property values until they are all off the market.
Systematic Home Inspections