Lipstick, pigs, and foreclosures

Distressed properties (foreclosures and short sales) make up only 7% of our market, but the label creates an expectation.  It feels like every buyer who is in the market is just waiting to pounce as soon as  a distressed proprerty pops up.  It’s like a flashing sign in the yard, BARGAIN! BARGAIN!  If the property is decent, the bank will have multiple offers in the first week.  In September a client of mine saw a foreclosure on day 3 of the listing and made an offer on day 4.   A week later we were told that multiple offers were on the table, so my client went $500 over the asking price — and still lost to someone else who, presumably, was willing to pay even more.

Nobody gets a bargain out of a feeding frenzy.  Plus, a lot of foreclosures are never going to be great houses, no matter how much money is spent on them. Bad location, awkward floor plan ..  Lipstick, pigs.

Better to focus on value than labels.  There really are great deals to be had, and most of them just quietly come onto the market without fuss or fanfare.  Yes, you want to buy low.  But if you don’t buy value, then whatever price you pay is too high.