What are the negative aspects in peoples’ mind towards purchasing a foreclosed home?
US Real Estate market experts are expressing their opinion, under various market conditions and developments, arising out of the foreclosure crisis. But what actually counts are the sentiments prevailing in the minds of people buying and selling foreclosed homes, to cause a flutter in the housing markets. The recent survey conducted by Realtytrac and Trulia.com tries to find out the answer for this.
This new online survey was conducted by Harris Interactive between 10th to 12th May shows, among other things; the negative sentiment in buying a foreclosed home has decreased. Out of the total number of peoples answered the questions of the survey – 78 percent have expressed views that there are downsides in buying a foreclosed home – as against 85 percent of people had similar views in 2009.
The survey has categorically listed the top concerns in the minds of people, in buying a foreclosure property as a comparative chart between May 2009 and May 2010 as follows:
Negative Sentiment May 2009 May 2010
Hidden Costs 71 % 68%
Process is risky 46% 49%
Home will loose value 31% 35%
There are other interesting results culled out the above survey, in relation to the foreclosure home purchases. As regards buying a bank-owned repo home, 18 percent of US adults from the survey expect the banks to offer a realistic discount in sale price – less than 25 percent off the value of a non-foreclosed similar home. This is not the case with all consumers – 36 percent of them say they expect a discount of 50 percent or more while purchasing a bank-repo property. 95 percent of the people surveyed expect to pay less for a foreclosure property, compared to a similar one which is not in foreclosure.
It is common knowledge that foreclosure properties would need repairs and renovations. On this aspect, the majority of surveyed US adults – 92 percent of them – would be willing to spend on improvements like renovations and remodeling in the event of buying a foreclosed home. Of them 65 percent are ready to invest 20 percent or less of the purchase price to make it ready for their own occupation.
About This Post
