The Crystal Coast and surrounding counties saw a lot of foreclosures and short sale activity this past month. Mixed in was the stunningly high rate of cash sales. But do the two necessarily go hand in hand? And are foreclosures and short sales really worth the added hassles?
Crystal Coast Distressed Sales
Approximately 7 percent of all homes listed in the Crystal Coast and surrounding counties were some type of distressed property. This can be deceptive to the public because most of the time there is no sign in the yard designating the property as foreclosed.
23 percent of all homes sold last month were a distress sale. 40 percent of all sales were cash. The median sales price for a Crystal Coast home continues to skew downward. Last month the median price was $159K. The bulk of the homes sold (44 percent) were homes priced $150K and under.
Foreclosures and Short Sales
Here are some important facts to keep in mind about buying a distressed property. Foreclosures and short sales are more difficult to buy, not easier than a conventional sale. One reason why is that for a bank to foreclose on and take possession of a home is a process that takes about 2 years on average. The bank just went through a bad experience so they are going to make sure it doesn’t happen again.
Credit requirements are greater and more stringent for the buyer wishing to buy foreclosures and short sales. Cash offers must be able to prove they have cash on hand and able to put 10 percent earnest monies down.
The due diligence period is much shorter, usually only between 5 to 10 days. This is all the time given the buyer to perform the necessary inspections and secure all funding. The foreclosures and short sales are sold, “as is’ with no negotiations. The buyer plays by the rules of the bank with a bank owned property.
The key to buying foreclosures and short sales is to have time and money. Have access to funds so financing is not an issue. Have the patience to wait for an opportunity and move quickly when it comes available.
Margaret Hitchcock is a Realtor and owner/operator of Hitchcock Realty in Morehead City along the Crystal Coast of North Carolina. Whether it is a home or condo, on the beach or mainland be sure to contact Margaret today. Visit her online at www.HitchcockRealty.net or call (252) 269-2893.