There's been a lot of talk about foreclosures lately.  Undoubtedly, this is fueled by the sub-prime mortgage meltdown. 

Foreclosures have increased in the Greater Binghamton market as well.  Most of the foreclosures that I see in this market tend to be entry level homes (i.e. under $100K).  Largely, this has been a result of lenders granting mortgages to people who should not have been approved.  The local economy is not spectacular, but is doing well.

I would say that the foreclosure market in Greater Binghamton is not as extensive as in other highly- sought-after areas of the country.  This is largely due to the fact that our home prices have grown steadily, in stead of the rapidly inflated prices that we have seen in other parts of the country.  This means that there was less of a need for "creative financing" in order to buy a home.

People are looking at foreclosures more and more these days as a means to find a bargain. Here are some general observations about foreclosures:

1. With any foreclosure, whether it is a bank owned property or a HUD home (i.e. a foreclosure with more rules), the seller wants to move it quickly.   Why?  Because there are expenses to the bank in the resale process.  Insurance on vacant homes is astronomical.  Taxes need to be current.  Legal fees and realtors fees add to the expense. 

2. Because of the bank's desire to move the property quickly, they are looking for cash offers with no contingencies.  If, you must finance a home, foreclosures are generally not for you.  However, there are times when the bank, as the seller, will offer to finance the home.  If you must finance a home, this would be the best way for you to take advantage of the foreclosure market. 

3. Foreclosed homes almost always need repairs, not just updates or cosmetic finishing.  Think about it.  If you were a homeowner with a choice between making the mortgage payment or repairing the home, which would you choose?  Sometimes, foreclosed owners get so angry that they purposely neglect or even vandalize the property. 

4. If you have the ability or means to make repairs, foreclosures are a good option.  If you don't, they're not.  Sometimes, the bank, as the seller, will offer to finance the repairs through the FHA 203K program.  If the amount required to repair the home plus the purchase price fits into your budget, this can be a good way to buy a foreclosed home.  You must occupy the home with the 203K.

Your question and comments are invited.

Ray Bartholomew

We will be at the EXiT Realty Tent at the Speidi Fest this Saturday and Sunday.  Come on down and sign up for a chance to win a new gas grill or a gas card!

The Greater Binghamton, NY Real Estate Market continues to buck the national trend of falling prices brought on by the sub-prime lending crisis.  In fact, according to The National Association of Realtors (NAR), our local market experienced an average selling price increase of 11% over the last year, one of the highest percentages in the country!  One reason for that is that inventory is moderately low.  Houses that are appropriately priced are selling.  Of course, Greater Binghamton continues to be one of the most reasonable markets in the country for housing prices.

What does this mean for you?

If you want to sell, buyers are available.  You can still get a reasonable return on your investment for most residential properties in the area.  You need not worry aboutyour property just sitting on the market.  However, it must be priced appropriately.  Overpriced properties will sit on the market.

If you want to buy, bargains are going to be harder to come by.  Remember what you learned in school about the law of supply and demand?  When the supply of available houses is lower, the price goes up.  Buyers should work with reputable real estate agents and lenders in order to find a house they like and can afford.

Multi family properties continue to draw the interest of out of town investors.  Among real estate investors, our area is well known for reasonable prices, good value and excellent return-on-investment (ROI).  If you are trying to sell a multi-family property, internet marketing is a must!    If you are trying to buy a multi-family property, be prepared to move quickly!

Of course, this is just a brief overview of the Greater Binghamton Market and discusses trends.  Your particular situation may vary.

We welcome your questions and comments.