Buyers Expect to Pay 30% Less For Foreclosure

Results of a recent survey conducted online by Harris Interactive on behalf of Trulia and RealtyTrac showed that 67% of U. S. adults would expect to pay at least 30% less for a foreclosed home than a similar home that is not in foreclosure.  And, 35% of U. S. adults would expect to pay at least 50% less for a foreclosed home.

Often this expectation is realistic!  Because many foreclosed homes have been vacant for a long time and the utilities are not on, brokers and appraisers often price properties on the assumption that the furnace is bad and there may be water leaks or worse.  Often the properties have been vandalized and have latent defect issues.  Not only that, but buyers are buying "as is" and need to be compensated for the risk of the unknown.

If you have the stomach for it (and it's not that bad), a foreclosed home can be a really great deal . . . no surprise that approximately one-third of all the properties sold locally are foreclosures.

5 Reasons Homeownership Trumps Renting

The seemingly endless run of bad housing news is discouraging some potential home buyers from considering a purchase. But the truth is that the advantages of homeownership have very little to do with investment gains. The best things about owning a home have a lot more to do with personal comfort and satisfaction. Here are five of them:

  • Be your own landlord. The bank can only kick you out if you don't pay; a landlord can be much less dependable--deciding to sell the property or choosing to live there themselves.
  • Paying the principal is forced savings. Yes, it's possible that home prices will fall further. It's also possible that your 401(k) will lose value. But over the long haul, both are likely to enjoy modest gains in value.
  • Fixed-rate mortgages never rise--and eventually you pay them off. With mortgage rates at record lows, people who buy now are locking-in real bargains.

Selling at Holiday Time Can Be Good!

It can be a hassle to have your home on the market over the holidays for a variety of reasons . . . with that said, there are some real advantages that may outweigh the negatives.  

Although there will be more buyers out and active after the first of the year, the ones who are out in the wet and the cold right now tend to be really motivated to buy. Holiday house hunters usually either need a place to live, fast, or they need to close escrow on their new home by year's end for tax reasons.  Having your home on the market over the holidays is one way to try to capitalize on the urgency this season's motivated buyers face due to their circumstances.

Americans Believe In Home Ownership

According to the 2010 National Housing Pulse Survey, an annual report released by the National Association of Realtors, nearly eight out of 10 respondents believe buying a home is a good financial decision, despite ongoing challenges with the economy and housing market. The survey found job security concerns to be the highest in eight years of sampling, with 70% of Americans saying that job layoffs and unemployment are a big problem in their area; eight in 10 cite these issues as a barrier to homeownership. 

Home ownership is at the core of the American Dream, and the majority of Americans believe it is one of the best long-term investments in a family's future.

Northeast Ohio August Sales

 According to the sales statistics published by NEOHREX MLS system, on August the number of units sold in Northeast Ohio decreased by 11.4%, to 2,565 units, down from 2,894 in August of 2009.  However, the average sales price in August increased 4.1%.  August 2010 showed an average sales price of $136,304, up from $130,889 in August 2009.