Should I Try to Buy a Foreclosure Home for Sale in Landfall?
Because of this blog and other online landing pages I have that are full of useful and pro-consumer Landfall real estate information, I counsel and represent buyers often in the neighborhood. Here and there I get the buyer interested in a “deal” and they want to buy a foreclosure in Landfall, “For the right price I can pull the trigger quick, Jay.”. Yes people talk to me that way. It never gets boring when you work with so many colorful personalities. I’m still wondering why and how I came to be an engineer magnet (that is to say so many of my buyers are engineers in their backgrounds and psyche).
So let’s go over the numbers real quick. Do you have a chance of getting a great deal on a Landfall foreclosure for a primary residence? Short answer is, “No.” Here’s why.
How Many Foreclosures Happen in Landfall Each Year?
So you can see in the past year there were 200+ homes for sale in Landfall Wilmington and that included expireds, active listings and solds. Then you check out the number of foreclosed homes that hit the market the past year in the neighborhood:
In that same time there were only 8 foreclosures spread from $375,000-935,000. And the square footage involved ranged from 3000-5211 square feet. Also in that time 6 short sales occurred:
They ranged in price from $340,000 – $1,200,000 with square footage of 2100-5072. So if you do the math, the foreclosed homes make up 3.5% of the homes for sale. In “regular” Wilmington NC the foreclosed homes make up about 5.3% of the listings for sale.
If you’re price range is in the $500s then last year out of 222 homes for sale you had 3 foreclosures in your price range….Not the greatest odds for finding a home that fits you for a primary residence. Of those listings 47 were in that 475-615,000 price range so that makes a 6% chance of viewing a foreclosed home in your price range of 500s in Landfall.
So the take away here is don’t look for a “deal” in Landfall. Look for the home that fits you well for a legit price and your interests will be well served versus hamstrung over unrealistic expectations. Keep in mind a deal in real estate tends to be buying a home 1-3% below market value. It’s rare to buy homes lower than that. Most Sellers will let go of their homes below market value though to get the sale over and rid themselves of people coming to view their home each week.
The big question is how much of a savings do the Landfall foreclosures proffer when you take into account sold price verus square footage. A general rule is that foreclosures sell 2-5% below market value and that short sales go for 3-6% below market value. So we’ll save that question and analysis for another blog post as it’s 12:03AM at the New Hanover County Hospital where little Gabe (8 years old) is getting his 2nd blood transfusion this week 🙁