I get asked about Menifee foreclosures homes quite a bit lately, so I thought I would take the time to address them from a buyer's perspective. One of the most common things that happen in a down market is foreclosures and short sales. I say down market rather than buyer's market because there are many ways to create a buyer's market - short supply of homes, interest rates, etc but few ways to create a foreclosure market.
To create a Menifee foreclosure market there needs to be an approximate loss of 10-25% of home values across the board which we have seen. It is this significant drop that creates a charged foreclosure situation. In southern California that kind of drop is pretty rare and usually offers a great buying opportunity. And that can result in a buyer foreclosure frenzy.
This frenzy gets a lot of people searching and asking about me Menifee foreclosures. They assume that if they can buy one it will, it will automatically be a fantastic deal. This is not always the case and people need to make sure they take off the blinders and really learn about foreclosures. When dealing with foreclosures in Menifee there are three things to be done to insure you get a good deal:
- Pros and Cons of specific property
- Have your financials ready
- Good and knowledgeable representation
First, examine the pros and cons of the individual property closely and their added value. Pros to consider: Does it have a better than average lot? Is the neighborhood superior? Are the schools top-notch? Is the property in good shape or have other benefits such as RV parking, 3-car garage, view, home theater, etc.?
Some cons to consider would be - does the foreclosure property need work? Is the Menifee house situated on a small lot or tract location? Are the neighbors and surrounding homes rough? Do you hear dogs barking? And has the house been vandalized, had any insurance issues, etc?
The reason to examine these first off is to stop a buyer from seeing a foreclosure at a good price and look for a home that would be appealing to someone in the future. Buyer's often see a Menifee home that is 50K under the last couple sales in tract and think they are getting a great deal. But if it needs work, has a sub-standard lot or location in the tract with people looking in the back, it is not good. To sell a home costs money and I wouldn't consider such a house a good deal unless it was about 75k+ under the market.
However, if the foreclosed home is the popular single story model in the tract, has a torn up yard but with an enviable view, and shows only so-so on the inside, then I am interested. But are some high quality schools within walking distance or is the home on a cul-de-sac? If so, then I might be even more interested. With the Menifee market the way it is, I can convince the bank to work on price and realize the home will be worth a lot more with just a little invested. That is a good deal and one I would recommend to my clients.
That takes care of pros and cons but are we ready to make a deal? The good deals, especially a great deal on a Menifee foreclosure, go FAST. So you need to be ready. And ready means getting your money in-line, your loan person on board, and being ready to act when an opportunity presents itself. You should know the payments on the loan and be comfortable with them. Otherwise, you may find a deal first and lose it the same day when someone who is ready to move enters the pictures.
Lastly, you need good representation in the form of a knowledgeable Menifee real estate agent or broker. In fact, this should perhaps be your first step since they can help you with finding foreclosure homes. They will have the resources to check out all details and also ride shotgun on the lending side to make sure everything is in alignment. When you are buying a home their service is completely free, so take advantage of it. Just make sure they have foreclosure and short sale experience.
So when I get asked, "Are foreclosure homes in Menifee a good deal?", I answer, "the RIGHT Menifee foreclosure can be a GREAT deal!"
This market cycle we are in is just as rare as the one that preceded it. In fact, many of the big investors are salivating over the trifecta of low home prices, desperate banks, and low interest rates. They have been waiting for this cycle for years. If you want to find a great deal they are out there. Just make sure you don't lose your head over excitement and instead keep your focus on doing the deal right!