Friday, June 15, 2007

Cuyahoga County Bank Owned Property Sales: Some are Now Upgraded by the Banks

The National news is abuzz with the 2006 figures for foreclosures which are out now. This is not news to us in NE Ohio since our figures have been public and discussed for some time. I wrote about it several times, for example, here.

The end result is that I wind up showing many more bank owned homes to buyers than ever before. With so many homes in almost every market in Northeast Ohio for sale, there is a lot to pick from. Yes, it's a buyer's market. As it turns out, banks are realizing they have to be competitive in the same way private owners who put their homes for sale are being competitive. This means it's now possible to find bank owned homes that have been upgraded.

An example: I have a client with a contract on a home in Cleveland. We had looked at about six homes, and one of them was owned by Fannie Mae (which means the foreclosure occurred on a government loan. After Fannie Mae took it over, they made significant improvements to the home: upgraded the kitchen with new everything including appliances. Stuccoed the garage; replaced the roof on both the home and the garage. They also upgraded the bathroom. This is not your stereotypical bank owned behavior. I guess some banks are realizing there are so many foreclosed properties for sale and in order to get theirs sold they are going to have to put money into it. This is a savvy move on their part. And it also means, if you are looking to buy a home you might not want to pass over the bank owned properties because they may be in better shape than you expect. So ask your Realtor® to add them to your search for a home. The benefit to you is easily seen. The benefit to the community is they sell. Win-win? Peace Out - 3C

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