The Great Recession between 2007-2009 resulted in a number of hard economic and financial hits, including thousands of lay offs and a record amount of foreclosures; 2.8 million to be exact. Real estate values plummeted, leaving countless real estate agents to seek work elsewhere.
However, not all is lost. Nearly six years later, American consumers are making a strong post-recession comeback. While real estate market trends continue on the up and up, some areas of the United States are thriving. The foreclosure housing market is a great opportunity for many potential home buyers. In fact, those otherwise may not be able to afford a home — such as millennials — can buy a house in foreclusure for an affordable rate. Also, experienced house hunters, such as retirees, who chose to buy a house in foreclusure can find bargains in family-orientated neighborhoods and communities.
Getting more bang for your buck
Compared to years past, buying in this housing market is a piece of cake. Those who choose to buy in house in foreclosure typically get more house for their money. This is due to the fact that foreclosures are usually priced well below market value. Banks and other financial institutions that over over foreclosures are eager to sell the properties as quickly as possible, and often price properties low in hopes that a larger number of potential buyers will make offers.
Affordable down payments
Foreclosed homes are an excellent opportunity for property virgins and first time home buyers. For many house hunters, the down payment towards a home presents a serious financial hurdle, especially those who are recovering the recession or have student loan debt. The majority of conventional mortgage lenders require buyers make a down payment that is between 10 to 20 perfect of the home’s purchase price. However, because foreclosed homes have lower price tags, buyers find that coming up with the a smaller down payment is much more feasible.
Property is an investment. Foreclosed homes allow buyers to build wealth in that the value of the home is likely to steadily increase over time, allowing homeowners to make a substantial profit it comes time to sell the home. This can be used towards the purchase of a new home — with a higher asking-price — or for other ventures.
Buying a house in foreclusure allows buyers to purchase the home of their dreams for the right price.