- Prices on holiday homes are also down
- Developers have inventories to unload
- The normal precautions still apply.
The wave of foreclosures that is sweeping back and forth across America is bad news for those that were unfortunate enough to be knocked off their feet by it. For others, however, it represents an ideal opportunity to obtain their perfect piece of real estate at a price that may not be on offer again for a long time. One such opportunity is to buy a second holiday home on a lake or a wooden cabin in a secluded forest, or perhaps even a sturdy stone house in the mountains.
Property prices across the length and breadth of the States are generally down, and that applies to holiday homes too. There are two reasons for this. In the first instance, lower employment figures mean less discretionary income available. In the second forced and short sales have increased supply and driven prices down. Many foreclosures are the direct result of borrowers falling behind on mortgage payments that they can no longer afford. Other sources of cheaper property are developer inventories that are not selling well under current circumstances. The net result is a large number of desirable holiday homes of all kinds in prime areas for sale at seductive prices.
There are, however also disadvantages attached to buying unwanted real estate. Buyers should expect to find broken windows and even some trashing by disgruntled previous occupants. For these reasons, inspections are essential, even if just to check that the house is standing empty. Where the damage appears serious, a prudent buyer without technical skills may be wise to ask a contractor to assist with cost estimates for repairs.
The cheapest and easiest way to find foreclosed or otherwise surplus property is through a website like ForeclosureDataBank.com. Unlike a realtor who will only discuss real estate over which they hold a mandate, a firm like that aims to list everything available, which provides you with the widest possible choice.
Americans contemplating purchasing a second property should still proceed with caution regardless of the current state of the property market. They need to do a reality check on their availability to sustain payments over time, and have a plan in place for what to do if their income unexpectedly contracts. These days lenders take a far more sanguine approach too. They will check your bank account track record, credit profile and income stream. A useful tip is to get pre-approval for a loan before you go out shopping – that way you will know what you can afford, and will also be able to move quickly when an opportunity appears.
You’ll find more useful tips about finding foreclosure real estate at www.foreclosuredatabank.com.
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Written by Alex Rolim.
