For real estate buyers two of the biggest “buzz words” on the market today are: short sale and foreclosure. Buyers across the country are touting the benefits of buying short sales and foreclosures because, they claim that these properties can almost always be bought for far less than other properties on the market today but the reality is that in the Orange County area, nine times out of 10, lenders want a property to get what it’s worth because, Orange County has a lower inventory of properties than other parts of the country and a high demand from buyers who are searching for properties in the area.
How Do Banks Know What A Property Is Worth?
Banks know where they stand when it comes to a property’s value thanks to the BPO or Broker Price Opinion. Banks utilize the services of brokers to help them find the value of a property even in the current market.
How do BPO’s work? Brokers will typically compare the values of three other similar properties in the area that have recently been on the market and were sold, they will then adjust the value for the property that they are doing the BPO on for any differences before coming up with their final opinion of the homes market value. BPO’s typically cost a lot less than regular appraisals and save the lender a lot of time and money.
Great Deals Are Still Out There
Some properties sit on the market for long periods of time because, they are fixer upper properties that require a lot of work to get them move in ready. The banks know this and they will typically sell these properties for less than properties that are move in ready. Any buyer who is interested in purchasing a fixer upper property should hire a qualified real estate company like Fred Sed & Associates who will insure that they don’t pay more for the property than what it’s worth.
Get Your Piece of Orange County Now
Thanks to recent studies by DataQuick we know that home buying is on the rise in Orange County and has jumped by as much as 10% compared to the same time in 2011. The median selling price for a home in the OC area this year is $395,000 dollars and 2,444 more homes have closed compared to this time last year alone.
Of the 83 zip codes in the Orange County area, 14 of those zip codes have seen more sales and rising prices too. Sales of brand new homes have also risen this year as well and as of January, 80 properties were sold in the Orange County area.
More Home Buyers From Around the World
Recent studies have also shown that Orange County is luring more buyers from around the world from places like Asia, Europe and the Middle East who want to add a Southern California home to their investment portfolios or enjoy the benefit of having a second home in Southern California if they frequently do business in Orange County or the West Coast.