Everyone knows REO properties can be purchased at discounted rates and that they are great investments. What not many know is that high end homes are even better bargains and in most cases can be purchased at even bigger discounts than your typical REO property. It is not uncommon, in our market, to purchase a property valued at $2million for $1 million. Here are some of the reasons why that market offers great deals:1. Fewer buyers in this market.2. Misconception jumbo financing is not readily available.3. Most buyers focus on properties which can be purchased with conforming loans.4. Misconceptions there is no REO inventory in the high end market.We just found out there is a major financial institution offering jumbo loans for buyers with 720+ FICO scores with 20% down and excellent interest rates. Furthermore, as more foreing investors enter the US distressed markets the high end inventory will probably be their primary investment choice. This would be a great time to invest in a second home, move up or simply invest an excellent tangible asset.
You're absolutely right. I do more BPO's and REO in the upper end of our market here in Charleston SC. This down turn is affecting all segments and price ranges. Moving up in a down market is a great stratergy. Even if the seller's present home has devalued 25% , the high end property has more then likely devalued 25% or more and represents a great bargain. When the market does return (and it will) the high end home will appreciate and have a higher ROI then the present property.
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You're absolutely right. I do more BPO's and REO in the upper end of our market here in Charleston SC. This down turn is affecting all segments and price ranges. Moving up in a down market is a great stratergy. Even if the seller's present home has devalued 25% , the high end property has more then likely devalued 25% or more and represents a great bargain. When the market does return (and it will) the high end home will appreciate and have a higher ROI then the present property.