Foreclosures in Osceola County Florida still lead the way in the home sales market. November had 356 home sales. 257 were distress properties, Foreclosures and Pre-Foreclosures. There were 78 Short Sales sold, and 179 Bank Owned Properties. Osceola County is Kissimmee and Saint Cloud, Florida.
The interesting trend is the relationship of list price to the sold price. In August I ran the numbers and 92% of Bank Owned Properties sold at or above list price with 181 homes sold. The amount of homes sold is about the same, but last month 86% sold at list price or above. (About 95% of those were above list price.)
This can be contributed to a decrease in buyers bidding on these homes, or possibly Banks wanting to move more homes. The majority of the homes that sold for less than list price were only discounted less than $10,000.
Distressed properties are listed below appraised value. So even if a buyer is paying over list price in most cases are still getting a great deal. Most buyers when buying distressed properties understand that they are really not negotiating with the selling bank on the price. So trying to beat them on the price is futile. Buyers are competing with other buyers to purchase these properties. The homes that are selling below list price are home that are not getting much action because the bank miss priced the home, or the home has more damage than the bank thought when it was appraised. These issues come to light after a home inspector uncovers issues. So the bank will reduce the sale price if they agree with a home inspectors findings.
So always, always have a distressed home inspected so all repairs are documented and you know what your purchasing. This is your way out of a contract if problems were not visible when your offer was made.
The majority of buyers are first time home buyers taking advantage of the $8,000 extended tax credit. They are about 60%. There are also a large amount of foreign and domestic investors. This is a great time to buy a home.
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