“Problems are only opportunities with thorns on them”, said author Hugh Miller. And the economic crisis that has inflated over the past several weeks has, for many, revealed opportunities amidst a global financial downturn. In Southern California, much of these opportunities are coming in the form of Bank-Owned Properties.
Bank owned properties offer a low-cost solution to investors and first-time home buyers. According to data released from real estate research firm, MDA DataQuick, the median home sale price in Southern California was $308,500 in September, down 7% from August, and 33% from a year ago. And prices are sure to continue to drop, creating great deals for those who are looking in the right places. Christopher Thornberg, principal of Beacon Economics, a Los Angeles consulting firm is predicting that home prices will bottom late next year, with the Southern California median sale price falling to $250,000.
When home owners default on their mortgage payments, banks will take ownership of the property and as a result of this widespread housing downturn, bank’s are taking ownership of more properties than they can handle. Banks are seeking to sell these houses as quickly as possible to recoup the money from the mortgage, and this in turn, creates an opportunity for great deals on home purchases.
“There are bank-owned homes of all shapes and sizes out there, and there are indeed great deals to be had,” says Carlos Aguilar of Team Aguilar Real Estate Group in San Diego who specializes in bank owned properties, “but there is also a lot of competition for these homes, and it is important to work with someone who has experience in dealing with Bank Owned properties.” Carlos has more than thirty years of experience in Real Estate and Loan Brokerage, and though he’s never seen a decline in home prices quite like this in his lifetime, he’s been through enough real estate cycles to know the value of buying at a time like this. “Two years ago, many people couldn’t have afforded a home that they can now buy in this market. And with lower sale prices, buyers can have more money to put down up front or buy new furniture.”First time buyers may also qualify for a first time buyer tax credit for up to $7500.
To Learn more about bank-owned properties, first-time buyer tax credit, or to set up an appointment, contact Carlos Aguilar and his team of professionals at 619-209-5538 or email him at Carlos [at] TeamAguilar.com.