Foreclosures in a red hot market?

Hello all,

I live in the north virginia/DC metro area where the market is just nuts. Bidding wars of 50K over the offer price are pretty standard.

I would like to buy a house, and am looking into foreclosures as an option, but I was wondering:

Does it even make sense to look for foreclosures in a market such as this?

Thanks in advance for your input!

Howdy Marc:

Sounds like a really tight market. You may not find many foreclosures. There are still things like divorce and death and taxes where folks are forced to sell and even foreclosures. It just takes one good deal to earn a years salary at a regular job. There are a lot of foreclosures here in Austin but the prices remain high on most. I still look every day and make offers etc.

With a lot of looking you will get lucky and find a good deal and maybe you will have buyers bidding $50,000 over your asking price.

Hello Ted,

Thanks for the encouragement. I will definitely be on the lookout. My problem is that I don’t have too much time since I’m now paying rent, and want to get out of that situation asap. But i’m also very iffy about entering a bidding war, and winning at an ‘above retail’ price. I do a lot of buying and selling on ebay, and I rarely pay retail anymore … so it’s just difficult for me to stomach.
On the flip side, the way rates are over here…if it takes me a month to find a place, prices might have gone up a good 10k by then!

I’ll keep you posted!

Thanks again,

Hello Marc,

Sounds like you need to relocate to a better area. I just happen to live in the bankruptcy capital. I spoke to a realtor recently who said foreclosures make up about 65% of the properties they have listed for sale. This is Crye Leike’s best year to date. The last time I searched REOs there were over 1100 listed.

I live in Md and I know your pain.

What are you talking about man I live in silver spring MD and it doesnt get too much hotter than that. I get the foreclosure lists every week for MC and PG Co. and there are tons. I dont know where you plan on moving to but if its in MD you can just go to the court house and get the listings to lots of foreclosures. If you want more info or help email me.