According to a new survey, fewer potential homebuyers are willing to purchase Miami houses for sale
that have been foreclosed upon. Numbers are down by 12%.
The biggest reason keeping buyers from Miami houses for sale
in Florida is that foreclosures and hidden costs resulted in concern that the process is risky and fears that the home will continue to lose value.
In a news release, Rick Sharga, senior vice president of RealtyTrac said, “It is somewhat surprising that consumers cite hidden costs as the biggest negative aspect to buying a foreclosed home because most bank-owned foreclosure sales include the same title protections and other safeguards that are in place for non-foreclosure sales.”
However, the survey also found that there is strong interest by certain segments, including Miami real estate
investors, current homeowners looking to trade up to a larger property.
According to the survey, a quarter of U.S. adults were at least somewhat likely to purchase a second home or investment property and, of those, nearly 92% said they were at least somewhat likely to buy a Floida foreclosure property.
When it comes to trading up, 24% of homeowners said they were at least somewhat likely to purchase Miami houses for sale and of those, 88% were at least somewhat likely to consider a Florida foreclosure
57% of renters said they would be somewhat likely to purchase a distressed property.
Of those people willing to take a chance on a foreclosure, most said they were looking for a good deal.
Nearly two-thirds said they expected a discount of 30% or more.
Homebuyers also seem more willing to invest in fixer-uppers, with 95% saying they would make renovations. More than half of the respondents said they would be willing to spend 20% or more of the purchase price to make improvements.
Those looking to purchase a Florida foreclosure have ample opportunity. RealtyTrac reported last week that Florida had the nation’s highest foreclosure rate in November, taking California’s spot, which dropped to third.