One of the first things home buyers do is look for a lake front foreclosure in Oakland County. After aren't lake foreclosures the way to get the best deal if you are buying a waterfront home? That is the common belief if you ask any home buyer. Everybody believes a foreclosure is the way to buy a home cheap. So it would be the same way with lakefront homes right?
When you buy a home whether it is an Oakland County lakefront foreclosure or a regular home you do not make a decision based on a word. You have to look at whether the lakefront home is really a deal. First of all do you know how banks and lenders decide on a price for a lakefront foreclosed home? Banks that own the properties pay an appraiser or a real estate agent to tell them what the property is worth before the home is listed. They are hiring a professional to tell them what the market value of the lake home is. Sometimes they hire several local real agents or appraisers to give them the fair market value. The banks usually want to know what price it should be to sell the home in about 30 days or less.
Most foreclosures have not been taken care of because the owners knew they were giving it back to the bank. Every once in a while the foreclosure is in decent shape. It is more likely that the home needs normal maintenance like paint, and new carpet, and simple repairs like broken door knobs, and out door maintenance.
So that is the first of the myth busters. Banks are listing the waterfront foreclosures at fair market value in order to sell them in under 30 days. They are no deal! The banks are pricing according to the condition of the homes and to the type of market we are in. If it is a buyers market you are more likely to get a deal. Why? Because the bank wants to sell the home quickly. So they are more likely to sell a foreclosure for less in a buyer's market. In a seller's market the home is going to sell. They hopefully have price it according to the condition of the home. Like many homes in a seller's market they probably will sell under 30 days even if they are a foreclosure or not. So the bank is not giving away foreclosures. The asset manager in charge of the lakefront foreclosure would lose their job. Their objective is to get the home sold for the most money that the bank can get in 30 days or less if possible. So the second myth busted is... the banks are not giving the property away.
So how do you get a good deal on a waterfront foreclosure in Oakland County Michigan? Like any other home that you are looking at you have the make a decision on the home just like any other home. Forget about the word foreclosure. Just because it is a foreclosed lake property does not mean it is a deal. You have to look at the condition of the home. Many times you can find a regular home that is not foreclosed that may be a better deal. Yes banks do over price Oakland County lakefront foreclosures sometimes. You may have to figure out how much you would have to put into the foreclosed home to make it the same condition of another home. If you have to put $25,000 into a $180,000 Oakland County Lake foreclosure and you can buy a similar home for $195,000. It may be smarter to buy the other home for $195,000.
Our goal is to look at the recent sold home and the sold prices. Then you have to compare the sold homes and home prices to the foreclosed home you are looking at. That is where you sometimes have to rely on me your realtor to explain how the house compares to the foreclosure. Many home buyers automatically low ball the price of a home even when they look at the comparable sold homes. I honestly do not know why that happens. I do not know why, but there is a definite lean on a home buyer to think the home is worth less. That could be a major mistake if you really want the home.
I hope this explains some of the myths of waterfront foreclosures and how to get the best deal on an Oakland County lake home.
I've lived in Metro Detroit for over 50 years. I love this area and all it has to offer, and I enjoy sharing what I know about my home and our local communities. As a REALTOR®, I also love to share my expertise in this area as well. If you need any real estate or community information when relocating to Wayne, Washtenaw, Livingston, Oakland County Michigan...please give me a call.