The real estate market is stronger than most people think it is due to low interest rates, competitive prices, buyer tax credits and an ample inventory. The real estate industry has had to embrace constantly advancing technology in order to be able to assist buyers and sellers with complex transactions. The real estate market is also an investment channel, and investors are expected to make a profit. Indeed, now that the real estate market is recovering, investors can benefit while there is still a considerable lack of transparency in the market. In this article I will talk a little about foreclosure and protecting your home s value in the face of increasing foreclosure rates.
While home foreclosures are on the rise, there is another side of this economic dilemma. Many investors are targeting foreclosures as profitable investments; unfortunately, this is not good news for most homeowners. Foreclosures are causing property values to decrease therefore reducing the value of homes that are not facing foreclosure. While market analyists like to point out the good things about foreclosure, the key to preventing this from happening across the United States is obviously to avoid foreclosure in the first place.
A vibrant and profitable real estate market is one that is surrounded by a family friendly environment, good schools, excellent healthcare and unlimited recreational amenities.
Foreclosed homes on the other hand invite vandals and the odd squatter looking for a place to go that is out of the weather. This spells disaster for a neighborhood that has a high rate of foreclosures. Vacant properties will invite trouble and therefore drive property values down.
When lenders try to unload foreclosure properties as quickly as the can, in many cases this means that lenders sell will the properties at up to 40 50 of the market value. Even with properties selling this low, some foreclosures can remain vacant for an extended period. And just because the home is sold does not mean that there
is someone moving in.
Here are a couple things that you can do to help protect the value of your home:
*Keep your eyes open. Keeping watch of the properties in the area that have been foreclosed and are not vacant will help to keep your neighborhood free of vandals and squatters. Foreclosures are on the rise and thousands of homes a month are going into foreclosure. Keeping watch of the homes in your area will help keep the vandals from stealing appliances, damaging the property and forcing lenders to board up properties. Boarded up properties, are invitations to more trouble for property values. Lenders will sell homes that have been boarded up for even less, just to move the property.
*Do not panic and sell. Home ownership is a long term investment, and while foreclosures are on the rise they will level out and the market will recover at some point. Remain calm and do not panic. Now is probably not the time to sell your home especially if you are trying to make a little money. Home values are being driven down; buyers are looking to buy them cheaply and below market value right now. In some cases you can still sell your home for a profit as originally planned but do not try to sell just because the local markets are flooded with foreclosures. You bought it as a long term investment to begin with, and this is a short term problem. The houses market will recover at some point
and your property value will likely rise once again.
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