In the years after the crash of the Real Estate market in 2008 Foreclosures were a big part of the Real Estate Market in Southwest Florida and till today, a lot of people hope to make a deal with buying one of then.
But the high numbers (about 7,700 Foreclosure Sales in 2011) reduced over time and currently, only about 20 of these foreclosed properties remain available in Collier and Lee County.
Such properties are often (but not always) offered below market value which makes them very attractive to many buyers.
When buying a bank-owned property, you should consider the following aspects:
The properties are often in poor condition. Banks are indifferent to the state of the house and do not want to allocate funds to make improvements.
Most of the time, however, these are minor issues (stains on the carpet and on the walls, a poorly maintained pool, lawn that has not been mowed etc.).
Banks typically mandate that the sale is handled through their legal department and with the purchase of title insurance. Given that this type of sales agreement differs from a conventional one, it is advisable to have a lawyer review these contracts.
Houses are typically sold “as is,” meaning that the banks do not entertain requests for repairs from the buyer. As a result, the buyer must weigh their options and decide whether to bear the costs personally or to forego the purchase of the property, even if they have already incurred costs, such as paying for a home inspection.
Banks often lack knowledge about the local real estate market. As a result, the listing prices are higher than those offered by private sellers in regular listings.
It is important to weigh the additional costs and efforts against the potential savings when considering this type of purchase.
