Foreclosures, Foreclosures is all I hear from buyers?!


For several months I have received calls from buyers who ask about purchasing foreclosure homes.  Since all that is in the media is the “Wave of Foreclosures “ but in fact the total amount of  homes that are current on their mortgages in the United States represents  98.7% of the total.   98.7%!  We have to keep in mind that since the media was hoodwinked into thinking that the Tech Bubble of the late 1990’s would last forever they have to make up for it and continuously blast the population with the current bad news every day of our lives! 

Anyway, I digress,  so with this foreclosure frenzy everyone is looking for these deals of buying a home for “$35,000″ or $1,600” which is what the so called “foreclosure peddlers” would like the public to think.  Images of Chicken Little must come to mind of anyone who thinks that they can buy a home for the price of a home owners assn. lien!  Now don’t get me wrong, buying foreclosed properties can be a very astute and profitable venture-  but first of all most bank owned properties are totally thrashed with significant repairs required and the buyer has no idea of mold, water or structural damage and second most banks require that the repairs be done or satisfaction of other unfavorable conditions prior to close of escrow.  Foreclosure auctions attract many buyers to the advertised starting bids but the gavel price is often more than could be negotiated directly with the bank and the buyer usually has to pay the auctioneer’s fee on top of it!

 So for most real estate buyers, bank owned properties can be very problematic and even catastrophic!  I have been telling my clients and buyers that with the large price reductions and incentives towards upgrades, interest rate buy-downs and closing costs that New Construction homes may be the way to go.  Some builders have discounted homes by over $100,000 and with a $30,000-$50,000 (and even more in some cases) incentive added in new homes are great bargains in many popular areas of the Las Vegas Valley.  Remember that with a new home there is a customer service rep to fix anything that needs repair and the financing should be easier as well since a new home is better security than a old beat up home in an old neighborhood! 

I put my money where my mouth is and I recently bought a new home in Summerlin!  Remember this famous quote by John D. Rockefeller “The way to make money is to buy when blood is running in the streets!”   So if you want more information about new homes or would like to shoot me a comment please do and make sure you visit my website:


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