The Best Deals In Real Estate

best beal in real estate, Foreclosures, hernando, move in cost, resells, short sell

The 6/02/09 pending home sales index shows a considerable increase, up 6.7% for April 09. However looking more closely at the numbers, the jump is contributed to the initial impact on the first time home buyers tax credit. And the foreclosures and short sells remains the overwhelmingly majority of the sales. Are the foreclosures and short sells the best deal for a new home?

While there are many foreclosed spec homes from the investor surge of 2005-2006 and many repo homes. These homes have had very little if any maintenance and may have experienced vandalism as well as burglary. This applies to most vacant homes. For those who are willing to pour in sweat equity in to a foreclosed home, it will offer a the lowest cost per square foot. However it may not be the best deal. Since most of these homes will need work before you move in and may not be exactly what you want.

Given the current housing market there are many well kept, occupied homes on the market. Most of these homes are not at risk of foreclosure but, the home owner needs to sell. Many are moving to another area and can not afford two mortgages to wait out the current crisis or the need to downsize. They realize their home is competing with the mass foreclosures and will need to have a very attractive price and condition to sell the property. Most of these home will be turn key or very little work involved after closing. You may find, with the current home value declines, you can (while staying within you means) afford an upgraded turn key home.

When comparing a foreclosure to an owner occupied home, you must consider the overall move in cost and value of your preferences. For example if you buy a foreclosure for $50 per square foot, but need to remodel just to move in or replace the AC unit and a few windows or lawn, it may actually push the cost to $65-$70 per square foot. Where you might find a resell home with the upgrades you want for about $65 per square foot. As a bonus, you will not have to deal with the hurdles and risks involved with buying a foreclosure. Also one important note, the longer the house market remains depressed and inventory remains high, the vacant home conditions with continue to decline driving the overall cost higher.

Foreclosures, by design will try to draw all of your attention. Do not overlook the resell market, you might actually find a better deal with less headaches and in the process help out a family who needs to move.

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