10 Best Places to Get Foreclosure Deals (Really?)
I stumbled upon another intriguing piece of news on the Realtor wire today.
Apparently the March 19 edition of Forbes magazine contains an analysis of the country’s 100 largest metro areas, and has a “top 10 list” of the best places to pick up a foreclosure deal right now.
Their aim was to determine where banks and sellers were offering the largest discounts on foreclosed properties.
Here’s what they came up with…
- Charlotte, N.C.
- Raleigh, N.C.
- Nashville, Tenn.
- Oklahoma City, Okla.
- San Antonio, Texas
- Albuquerque, N.M.
- Knoxville, Tenn.
- Seattle, Wash.
- Indianapolis, Ind.
- Washington, DC-Arlington-Alexandria, Va.
Apparently they’ve differentiated among foreclosure markets where houses can be snagged on the cheap, and those that are actually considered “undervalued”.
For instance, there are plenty of homes going for practically nothing in Detroit, but the chances of recouping your investment are made more difficult because of the city’s economic challenges. On the other hand in a city like Raleigh, N.C., where the local economy is booming, searching for and buying a discounted foreclosed property could be a very good deal.
So Forbes identified what they see as the healthiest economies, then looked at the spread between median prices and foreclosure prices (according to RealtyTrac data).
What do you think? Anyone investing/flipping/living in these markets want to chime in and share your optinion about whether or not Forbes is on or off track?
Chime in with your comments below…
Technorati: foreclosure deals, Forbes, foreclosure investing, foreclosure news
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March 24th, 2008 at 7:48 pm
Coming from the New Orleans area, after surviving Katrina, but not corporate offshoring, I diligently searched the real estate market for the right place to land an IT job that would enable me to pursue REI. Knoxville was the winner, as I had an IT offer in another city at the same time.
Knoxville has not disappointed me, in that I still see opportunity galore. I see others making buys and sales. But I still see that the business has changed in the 17 months that I have been here.
From what I see there has been no bottom fall out on the side of town that I deal in. The bottom is still in place, maybe even a little higher.
March 25th, 2008 at 7:27 am
Hi JP,
Did they just say that Detroit is not a good place to pick up a foreclosure because of city’s economic challenges?
They must be crazy…
The fact that the Kwame Kilpatrick, the mayor of City of Detroit and Christine Beatty has just been charged with a total of 12 charges including perjury…obstruction of justice…and misconduct in office couldn’t be it.
The fact that Daimler Chrysler has just eliminated a shift in Sterling Heights forcing over 1000 workers out of their job couldn’t be it either.
What could it be then? Hmmm…
Well, glad to get that out of my system
All in all, I think it all boils down to this. Its how you look at it. Even in Detroit, there are deals and money to be made. I don’t think the local economy has bottomed out yet but sooner or later, it will. They it will start to pick up.
I have to say this, living in Detroit suburbs, it’s sad to see how people are being affected by these events.
Peter
March 25th, 2008 at 8:19 am
Been buying and selling foreclosures for about a year now in Durham,NC, Raleigh’s sister city. Home to the Duke Blue Devils and next door to the UNC tar heels. The spread is not that great, not much money at all in most of the foreclosures. House that are good rental candidates get bid up close to market value by landlords. Others may have 30-40k in them. We have not seen the dramatic drop in prices like the rest of the country, prices seem to have held up well with little or no decrease. It did slow down a bit, I have had good luck with mine. Most under contract in less than 60 days, one in less than 14. Can’t complain about that.
March 25th, 2008 at 12:46 pm
Anytime a publication puts out a list like this, as an investor I have to ask myself…what is their motivation?
I enjoy looking at their methodologies and cross-reference with other such lists.
However, I view these types of list more as marketing than news. Don’t get me wrong…I am not discrediting the information, but I see so many investors/ flock to markets that turn up on these lists when they could be as successful if not more so in their local market.
March 25th, 2008 at 9:57 pm
I can’t believe Las Vegas wasn’t on the list. Granted there are a high number of foreclosures, but there are still a high number of people moving here per month and the construction industry is still going crazy. Construction on the strip will ongoing into 2012 at least…and that’s just the stuff being built now.