Saturday, November 10, 2012


Zillow analysts state that foreclosure home buyers in Palm Beach, Broward and Miami Dade counties could only expect a 2.9% savings in September compared to available homes NOT sold at a distressed price.  Discounts are shrinking on distressed properties.

Zillow further states that same time last year the discount was 6.8%, and in August 2008, the peak foreclosure month in South Florida: 22.7%.  If investors can’t purchase a property they can fix up and sell at a profit, they have no incentive to buy.  For buyers who want to buy, rent the property out and sell later at a profit, it is harder and harder to find a property that meets the profit criteria.

Home buyers getting a mortgage may find the distressed properties don’t appraise to the list price.

No comments: