I checked the MLS yesterday to see what homes are available in McCracken County, KY for under $25,000. There was one for $3,900. It's a 1 bedroom, 1 bath, 800 sq ft and it's in pretty rough condition. It's owned by a nationwide lender.
The foreclosed homes have been selling pretty quickly to investors. They usually sell for the asking price and within 2 months. Investors are likely having a field day in this market. It may be bad times for some but for opportunistic people it's fantastic. Someone told me the other day that wealthy folks look at the long term. In terms of real estate that means buying properties in this down market, fixing them up and holding on to them so that when the market comes back you can reap your profit.
An example of a recent foreclosure was a home on Oaks Road. The asking price for this home was $23,000. It's a 2 bedroom, 1 bath, 963 sq ft. The offer was received 6 days after it went on the market. The offer was $23,000. The home apeared to have multiple offers and from listing date to closing date there were only 36 days. And, the home was sold by another agent known for listing foreclosures. I drive by this home frequently. The new owner has an RV parked in the driveway. They put a new roof on it last week and appear to be renovating the inside as well.
Another foreclosed home in this area I'm somewhat familar with was purchased by a gentleman for around $35,000. He's purchased a few homes in this neighborhood at foreclosure. He renovates them. I had the pleasure of walking through a project recently and found the home in very good shape. The asking price on it is $89,900.
Man,
You cannot even touch a lot around here for that price. I have heard of some mibiles at 25K, no lot only the place.
Bill - Louisville is a competitive market right now for investors. If a 'deal' hits the MLS, it is usually gone within the first week and often times has multiple bids. While we have gotten a fair share, my clients and I have lost out on 10-20 over the past 6 months.
We don't have prices like that in Surprise Arizona but I have seen the same thing happening here. We were hit hard by the investors 4 years ago and as a result have more than our share of short sales and foreclosures going on. The interesting thing to me is we are running close to a "normal" market indicator of a 6 month supply of homes even though we are far from normal. The investors are back and quietly scooping up the deals out there.