Buying to Hold Southfield Foreclosure Homes

By: philip smith

Don't overlook Southfield foreclosure homes as an excellent way to get you where you want to be, lovingly restoring your own home rather than paying the landlord. What will your money buy as prices slump but financing gets tougher?

In recent years, home buyers have turned to adjustable rate and interest only mortgages as a means to increase the price they could pay for the family home. As lenders now go back to the basics seeking to limit risk, some insisting on larger deposits and holding to more stringent qualifying criteria, some buyers will be shut out of traditional markets, or at very least unable to consider the standard of location, size, and amenities they desire in a home.

Buying a first home or family home following relocation into a pricier location has always meant trade-offs for most. An informed view of what is happening in real estate in the community of choice or necessity helps to make a sensible decision that can be lived with long term.

In Southfield, family housing prices are moving down, except for the larger 4 bedroom units. One bedroom home prices have dropped considerably this year. Southfield, along with Pontiac and Hazel Park, are Detroit communities with the highest foreclosure numbers. A good to excellent level of discount off market price has been recorded in this year's foreclosure sales in Southfield, 30% the average, and above not uncommon. Median priced to starter homes just got more affordable. Buyers seeking to stretch their pre-qualified status will find the best of trade-off options to consider by including foreclosure homes, both in pre foreclosure and REO status, in their sights. Include a realtor experienced in selling foreclosures in your team of advisors and you will be guided expertly through the pros and cons of each stage of foreclosure as well as having help in dealing with the competition for those great opportunities that will raise their heads!

Some would be home buyers will hold off believing that the price paid now may seem too high in two months time. Buying your home is an investment for the long term, one that can be made now when the choice is wide, and competition light. Home buyers at or near the bottom of the down cycle will ride out the slump knowing that every cent spent on improving their foreclosure purchase adds value, even the cheaper, more easily achieved repairs and improvements, making it easier to sell once prices move up again.

Foreclosures
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