Many people wonder how the market is. Well, in the Washington DC and Northern Virginia area it can sometimes be really hot! While I have had 4-5 offers and escalation clauses on listings of my own, nothing comes close to the answer I got from an agent when inquiring on the status of a foreclosure in Herndon.
A repeat investor client of mine showed interest in a town home in Herndon. It is a 4 bedroom/3.5 bath foreclosure at Dunbarton Square listed at $164,500. It has been listed for 7 days and said that offers would be submitted in another weeks time (lenders sometimes collect offers for a week or two and then review.)
Now, the home is not a polished jewel – it does need work. However, similar homes have sold in the $189,900-238,000 range in that subdivision. The last home sold in April 2011 (a short sale) for $238,000. The last foreclosure sold at $195,000 almost a year ago.
Based on the low list price I wasn’t too surprised when the listing agent told me they had 18 offers in hand of which 11 were really good CASH offers with no contingencies…
Lesson to be learned? Unless there is a protection period for owner occupants, cash is king when purchasing foreclosures. You can sometimes get a deal but competition is fierce and prices go up really quickly when you have multiple offers.
If you are looking to buy a foreclosure or short-sale, contact us. We can help you find a great home to live in or for an investment.
Here is the listing – would suggest a cash offer if you are interested – and hurry!
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