Distressed Properties Selling At Large Discount
North Central Florida Homes For Sale
North Central Florida Idx
Many people who are looking to buy a home in North Central Florida are looking at distressed properties due to the perceived discount that they will receive. While the discount is often due to the condition of the property, there are still some great opportunities when looking at foreclosures, bank owned properties (REO), and short sales in the Tallahassee MLS (which covers the North Central Florida region).
When viewing the sales of homes from May 2010 through April 2011, we find that roughly 32% of the homes sold in the North Central Florida region were sold under a situation of distress, and that number is currently rising. But not all counties are seeing the same percentage, with Franklin county recording 70% of its sales as distressed, and Madison County "only" showing 18%.
Arms Length Home Sales In North Central Florida
When we look at the valuation between arms length home sales, the discount is vividly clear when we graph the values of arms length home sales next to the values of distressed home sales in North Central Florida. The following graph shows how each County is currently disposing of its distressed homes, and that the overall difference in value of distressed homes versus arms length homes is currently about 41%.
North Central Florida Home Sales
There is more going on than meets the eye when we are looking to compare the value discount between distressed properties and properties sold at arms length. Previously, we have mentioned property condition, where most homes that are short sales, foreclosures, REO properties and pre-foreclosure sales are selling without the seller providing top property conditions.
Contrarily, homes sold at arms length are most often in peak condition, because these sellers understand how competitive the real estate market in North Central Florida is right now, where roughly 60% of the properties for sale in the Tallahassee MLS failing to sell last year.
If you are interested in distressed properties or any listing in North Central Florida, simply drop me a note and we'll be in touch right away.
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