The "Foreclosure Fire Sale" is over!
The first half of 2009 was a time to buy a distressed foreclosure house. The house was in "poor repair". That is politically correct for saying the house was "trashed!"
Common knowledge at that time was, to get a bargain on a house; buy a foreclosure. Those houses were sold "As Is".
Today in the Eastvale area, there are a few foreclosures that do not show well. They are the exception. The new business model of the banks is different. Most foreclosed homes are now cleaned, repaired, painted, landscaped and generally they are "move in" ready. Some banks do not want the property to be advertised as being a foreclosure.
The banks now manage the foreclosures in a much different manner than they did just a year ago.
Here is the good news and bad news about the change. The bad news is that if you missed the "Fire Sale," you missed out. It is over. The good news is that the new banking business model is creating a stable market. Do not expect to see more panic sales in the near future.
Most of the homes on the market today are "Short Sales." The bank controls the sale price to assure the house sells for a fair market price. Short sales are not panic, price slashing sales. The bank takes a loss, but the house sells at a fair price.
The primary determining factor in today's market is affordability. Can the buyer afford the house. The buyer must realistically qualify to make the loan payments. That factor is an indication that we are in a standard housing market.
An additional factor is the appraisal of the home. Just because a buyer offers a given amount does not mean that the bank will loan on that price. This is just another indication of a stable market.