Nov
18

Discounts on Foreclosed Homes are Decreasing

November 18, 2012

chicago real estate foreclosuresForeclosed homes may no longer be a bargain. In September, the average discount on a foreclosed home was only 8 percent below market value, according to Zillow. The average discount in 2009 was 24 percent below markdown, making this change yet another sign that the Chicago real estate market is recovering.

One of the causes for the decreased discounts is that there are fewer foreclosed homes for sale. Now that the economy is beginning to improve, there are also fewer homeowners who are defaulting on their mortgages. Banks have changed many of their policies regarding loan modifications and short sales in order to prevent foreclosures.

Currently, there are more eager buyers than there are foreclosures, and many homeowners report having multiple offers on their foreclosed homes. As foreclosure inventories and prices remain low, competition remains high.

As of September, Chicago currently has the 11th highest foreclosure rate of large metro areas. However, according to RealtyTrac, foreclosure filings have decreased since August. The Chicago foreclosure process is also lengthier than normal, with an average time span of two years. Lengthy foreclosure processes affect the housing market as a whole by delaying overall patterns of recovery.

Would you ever consider purchasing a foreclosed piece of Chicago real estate?

About The Author

Read All Stories By Mitch Levinson

Mitch Levinson is the author of “Internet Marketing: The Key to Increased New Home Sales” published by BuilderBooks. He is an Internet marketing expert with expertise in search engine optimization, website development, email marketing, social media and CRM consulting services. He is known for creating effective programs that can be tracked through analytics to prove effectiveness and ROI. Mitch is founder and president of MLC New Home Marketing and MLC FlatFee Realty, as well as managing partner of mRELEVANCE, LLC, a Marketing, Communication, Interactive agency with offices in Chicago and Atlanta. He currently leads the Chicago team. A Multi-Million Dollar Sales Producer who earned an MBA in Computer Information Systems and eCommerce, he brings a unique perspective and experience to the field of real estate communications. Mitch combines the two interests in order to help home builders and developers gain a competitive advantage through the Internet and technology. When he isn’t behind a computer, he enjoys participating in sports and coaching his kids’ teams. Mitch resides in Arlington Heights, Ill., a northwest suburb of Chicago, with his family, which includes two rambunctious labs. Visit my Google+ profile.

1 Comments

1

I have experienced this 1st hand, banks are rejecting low ball offers and are holding on for near asking price. Sometimes this strategy does not work but it seems to be the norm these days. They are pricing them competitively and standing by their price.

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