Luxury Foreclosures for Sale in Sarasota
Thinking of buying a $500,000 foreclosure in Sarasota, FL? Read on...
Until recently, foreclosures were pretty much found only in solidly middle-class communities and new housing developments where homeowners and speculators benefited briefly from easy financing. Increasingly, however, attractive high-end foreclosures can be found in wealthier neighborhoods and communities, including some very choice neighborhoods in Sarasota.
With estates and mansions falling into foreclosure, foreclosures can now be found in the seven-figure range inside some of Sarasota's wealthiest communities. There's currently a glut of foreclosures for sale in the $500,000 to $1 million range, according to an analysis by RealtyTrac.com. High-end foreclosures are often "second" homes that were used by owners for collateral and equity.
When buying a foreclosure, a key factor to consider is the home's condition. Foreclosure and short-sale properties, particularly on the lower end of the scale, can sometimes end up in worse condition than other homes, especially if the house has been abandoned. Neglect can cause problems for a home's plumbing, electrical, and other systems, and the risks can be tough to assess if the water, sewer, electricity and gas have been shut off. Still, such a home might not necessarily be a bad buy if the buyer understands the risks. If you like a property, have the house and all of its systems thoroughly inspected. If the necessary repairs are minor and can be made easily, the house might be a bargain. Simply make sure that you understand that the true cost of a foreclosure includes the cost of these potential repairs.
Another key factor when buying a foreclosure is location. You might hesitate to buy in a neighborhood beleaguered by foreclosures and short sales. But real-estate investors look precisely for those neighborhoods and communities that have been hit hard but might now be well-positioned for a turnaround. A neighborhood with a few foreclosures but also with other redeeming features is a neighborhood that might bounce back quickly. Those redeeming features might include attractive shopping and dining venues, parks and libraries, access to public transportation, quality schools, and other variables. Great values can sometimes be found in neighborhoods offering these benefits.
The foreclosure crisis isn't over yet, and that has important implications for anyone thinking of buying a home in 2012. As of January, about 3 million U.S. homes were in foreclosure, heading that way, or already owned by banks, according to a current report from CoreLogic, a California-based analytics and business-services company.
Half or more of those 3 million homes are in the so-called "shadow" inventory, the group of foreclosed properties not yet listed for sale. A substantial shadow inventory can loom like a dark cloud over a housing market, keeping prices down and slowing new construction activity. But with low prices, and with the Federal Reserve guaranteeing low interest rates through at least 2014, buyers are in a position to take advantage of the market and snap up some choice properties.
If you're looking at high-end homes for sale in the Sarasota area, and interested in luxury foreclosures, consider True Sarasota Real Estate. We have earned the SFR real estate designation: Short Sales and Foreclosures Resource, and we're experts in Sarasota real estate. Most importantly, we are Exclusive Buyer Agents dedicated to finding the home for sale or real estate investment that precisely fits your needs and desires.