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I'm thinking of buying house in West Cary 27519 area in a nicer community. However, I don't have very high budget (Max $300k).
What do you think of foreclosures in this area?
How much less can I expect to spend from the current market value?
Can you recommend any real estate agent that specializes in Foreclosed properties?
I'm thinking of buying house in West Cary 27519 area in a nicer community. However, I don't have very high budget (Max $300k).
What do you think of foreclosures in this area?
How much depreciation I can expect?
Can you recommend any real estate agent that specializes in Foreclosed properties?
Is it still a good time to buy?
Thank you!
Warm regards,
HitsOfMisses
There are several nice neighborhoods, of course.
Foreclosures are an interesting proposition. You will most likely need some cash to deal with issues.
People who are facing foreclosure typically do not maintain the property well, and that neglect lets problems worsen.
Then the property tends to deteriorate further during vacancy.
You might get a deal.
You might get a money pit.
But regardless of the area, you look at foreclosures one by one and judge them on their individual merits.
And don't just focus on foreclosures.
There are new construction and nearly new homes available in your price range.
A max. budget of $300K is actually a pretty good budget!
I agree with Mike...don't look at only foreclosures...sometimes they are not the "deal" that people think. Even if the foreclosure needs cosmetic work, like carpet and paint, you then must have the money out of your own pocket to get the work done. Whereas a home that has been taken well care of may not need anything done and therefore, your costs would be typical closing costs, unless you got the seller to pay some of those for you.
If you have not owned a home in the last 3 years, you may ask your lender if you qualify for the $8,000 tax credit.
Thanks for your responses but I'm quite surprised. I've been looking for quite some time (browsing remax.com etc.). My experience have been that the price has not gone down as much.
The houses are still listed at around 25-40% premium over the last 3-4 yrs. price. In general, the price/Sq. ft. in 27519 area is aorund $130, which I believe is quite high.
Whereas, I've heard some of the foreclosed home end up selling 40% below the asking price ($1.1M sold at around $700k).
Besides, I'm low on cash too. I think I can manage around 5% down. .
I'm considering Highcroft, Cary Park, Amberly, Harmony Pointe, etc. Is there any other community with good amenities & w/o having to deal with 540 nuisance in that price point?
There are some homes in Brookstone for sale that are in your price range. However, if a home is listed for $275,000 and you want a discount of 40%...that would put that home at $165,000 and that I have NOT seen in this area.
You have to realize that our annual appreication has been between 4% to 6% PER YEAR, so for a house to depreciate 40% would be unusual.
The least expensive foreclosure that I saw recently was listed at $280,000. It could have sold for about $375,000 if it were in better shape and NOT a foreclosure. Even at $375,000...40% off would be $225,000. Check me, guys. I don't do math.
Listed at $280,000, they got 2 offers in 2 days.
Other neighborhoods in the Morrisville area that are under the $300K are Cary Park, Park Village, Preston, StoneWater.
See, I was right. Read the stats from recent N&O article:
Single-family houses sold in Wake County
January '07 - 1,345
January '08 - 920 (Drop of 31.6%)
January '09 - 370 (Drop of 59.8% since the prior year)
However, the median sales price of the 370 homes that sold was down only 2.3% from the median tax value of those properties on Jan. 1, 2008, the date of the most recent countywide reassessment.
Here's the complete article: Wake home sales in steep decline - Local & State - News & Observer (http://www.newsobserver.com/news/story/1426176.html - broken link)
Renting definitely doesn't make sense. However:
On a $300k house with $285k mortgage (5% down), one will end up paying $1495/month (@ 4.8%) + $250 for property tax (@1.09%).
A 2-3 bed apartment in similar area can be rented for $900-1000.
That means, you'll be paying around $1140/month on interest & will take more than 7 yrs to break even to reduce it to $1000/month. Plus the property tax which I've heard is balanced out with the tax benefit you get if you're a first time home buyer.
You're comparing renting a 2-3 bedroom apartment with buying a $300K single family house? I don't see how that's apples to apples. I pay $1200 a month for a house with 3 bedrooms, an office and 2.5 baths. I know for sure I couldn't rent a house for the same amount, especially one that would allow three large dogs.
There are some homes in Brookstone for sale that are in your price range. However, if a home is listed for $275,000 and you want a discount of 40%...that would put that home at $165,000 and that I have NOT seen in this area.
You have to realize that our annual appreication has been between 4% to 6% PER YEAR, so for a house to depreciate 40% would be unusual.
The least expensive foreclosure that I saw recently was listed at $280,000. It could have sold for about $375,000 if it were in better shape and NOT a foreclosure. Even at $375,000...40% off would be $225,000. Check me, guys. I don't do math.
Listed at $280,000, they got 2 offers in 2 days.
Other neighborhoods in the Morrisville area that are under the $300K are Cary Park, Park Village, Preston, StoneWater.
Vicki
I don't expect all the house to reduce by 40%. That was just an example. But the article from N&O substantiates my claim. The prices are still high!
Where was this 280k foreclosed house listed? Was it in bad shape?
Houses in Park Village are about 10-15 yrs old. Are they still a good buy?
Driving around Park Village, I found the community to be quite gloomy/dead (no offense intended, please). I mean, the community does not seem all that active, old houses, dried out lawn, etc. Whereas, driving around other, newer neighborhoods, I found the people looked happy & welcoming.
These are just my observations and I could be wrong. Would appreciate some inputs from the people living there.
Thank you!
Last edited by HitsOfMisses; 03-03-2009 at 12:54 PM..
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Thanks...
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