Andrew Miller, Sales Representative

RE/MAX Hallmark Realty Group‎, Brokerage

613-447-7669  |  Email Andrew

Is a distressed property the right deal for you?

The data is in!

According to the National Association of REALTORS® existing-home sales rose again – increasing 7.6 percent to a seasonally adjusted annual rate of 5.77 million units in April–due to buyers motivated by the tax credit, improving consumer confidence, and favorable affordability conditions.

That’s great news for real estate and the economy, but one question still remains: what happens beyond the homebuyer tax credit?

Answer: distressed properties. The market for distressed properties – including foreclosures, short sales and REOs – remains high and many buyers stand to save considerable money on the purchase of one of these homes.

For many buyers, the term foreclosure brings up images of run-down homes with no heat and rotting wood. While this is still the case for some homes, it’s no longer the standard. In fact, first time buyers are snatching up distressed deals in decent condition for great prices.

According to a November 2009 Keller Williams Research Buying Distressed Properties Survey, 40 percent of all buyers for bank-owned foreclosures (REOs) were first-time buyers in 2009. 50 percent of all short sale buyers were first-time buyers.

By definition, a distressed property is one that was purchased with a loan and the homeowner is no longer able to make their mortgage payment resulting in foreclosure – or if they’re lucky a short sale – meaning they owe more on the home than it’s currently worth. With a 20 percent increase in foreclosures from 2009, distressed properties still remain a large portion of home sales and are going to continue well into 2010 as homeowners continue to feel the effects of an economy on the mend.

If you’re in the market for a home and are prepared for a unique transaction, a distressed property can be a great option.

Here’s why:

Prices are low – Buying a foreclosed property is an excellent way to get a home for less. Research shows you can save 10-40 percent over the price of similar properties in a traditional sale.

Mortgage costs are low – With rates hovering near historic lows, financing costs to are favorable. Keep in mind, rates are always changing. It’s important to begin the pre-approval process so that you know how much you can realistically afford.

You have options – The number of homes in some stage of the foreclosure process still remains high. RealtyTrac, a site dedicated to tracking foreclosures across the country, estimates that there are approximately 2.1 million homes in some stage of foreclosure in the United States.

Sellers and lenders are motivated – According to data from RealtyTrac, in April, one in every 387 households in the country has received a foreclosure filing. The bottom line is that many sellers are still feeling the pain of a down economy and are anxious to out get from under a home that is putting stress on their current financial frustrations. While it is still an emotional transaction, these sellers are willing to come down on price or even consider concessions such as helping out on closing costs. Banks holding on to large portfolios of Real Estate Owned (REO) properties want to unload quickly – and price these home to sell.

Your best ally when purchasing a distressed property is an expert. Always have a professional REALTOR® by your side to help you make informative decisions.

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Meet Your Next Realtor, Andrew Miller

Born and raised in the Ottawa area, with years of experience in the Real Estate industry, I have the tools needed to get you started on your next move. Be it buying or selling, I am confident that from your first home, to your dream home, I can help make your dreams become a Reality................ Read More

Working with Andrew Miller was great. He truly made purchasing a home an all round fun experience, Knowledgeable and friendly, I would recommend Andrew Miller to any of my friends or family, I'm so happy that we had decided to go with Andrew Miller to help us find our dreamhome. He knew all the neighborhoods we were searching in very well, and provided us with lots of information on past home sales to make sure that we got a good price on the home. Couldn't have did it without you! Thanks!

Darlene and James