If you have ever visited my Hilton Head Island Real Estate website, you might have noticed the “foreclosure” tab on the top bar.  I have been fortunate enough to have a relationship with several banks and handle their foreclosure properties.  People are always asking me if I have any foreclosures. 

As a rule of thumb, foreclosures are better buys simply because you have a more motivated seller and the seller is not emotionally attached to the property.

Homeowner Pricing vs. Bank Pricing of Real Estate Properties

So many times when we go out to list a property, the seller will try to sell us on the value of the property, tell us what a great home they have, how great the neighbors are, and how they raised their four children in this house.  They attach a value to all those memories.

However, when a bank forecloses on a property, there are no memories – the only memories they have are bad memories.  They got stuck with the property, it was over appraised and the people didn’t pay their dues and now they are stuck with the loss.  In 99% of foreclosures, the people that lost the property owed more than the property was worth forcing the bank to take a loss on the property.

A bank realizes that the longer they hold the property, the more they lose.  They also realize that the house usually sells for the most as soon as it hits the market.  The longer it stays on the market, the less it sells for, so they usually list these properties at attractive prices.

Are foreclosures always the best buy?  Not always, but usually they are a much better value because of the seller’s motivation. 

If you have any questions concerning foreclosures please feel free to give me a call or visit my listing of Hilton Head Island and Bluffton foreclosures.