Why South Florida is the Place to Look for Property Bargains, But Where to Look?

South Florida Property Deals, Where are they?

Do you think South Florida property deals are currently hard to find? They aren’t. One of the biggest investments an individual or couple will ever make is purchasing a home. Getting the right home for your money may seem challenging, but there is hope for those on a tight budget. Florida has a large number of reasonably-priced homes to choose from. You may be wondering why South Florida seems to be the place to go with a large inventory of properties. There are a couple of factors that contribute to the abundant real estate market in the state.

Why There Are South Florida Property Deals

When the real estate market took a turn for the worse, one of the hardest hit was Florida. Those unable to pay for their mortgages where quickly forced from the properties leaving hundreds of thousands of properties in foreclosure to be sold by the bank and others distressed from having sat idle and empty. This translated into a boom of inexpensive real estate in the area. While the inventory seemed to have peaked in 2010 with approximately 120,000 short sales and over 40,000 foreclosures, there are still a decent number of properties available.

Another reason that there are many properties available in South Florida at bargain prices is the recent storms that have roughed up the properties that are aged and ready for remodeling. These properties are ripe for the picking and ready for a new owner to give them a fresh start. These properties are made available for those looking for a bargain and are often an excellent option for first time buyers that want to make something their own by adding upgrades along the way.

Options for Buying South Florida Property Deals

Now if you are wondering where to find all of these ripe for the picking bargain properties, there are a few things to consider. Perhaps the best place to look is the foreclosure auctions, tax deed sales, HUD sales and FSBO (for sale by owner) opportunities. These each have a large number of available single-family properties to choose from at affordable prices. Here is a little about these types of purchase vehicles:

  • Foreclosure Auctions – The foreclosure auction is how the bank will recoup the funds they have lost when making the loan to the owner of the property. This can be a larger number than you expect but is typically well below market value because they are only trying to recoup what is left on the loan. This type of purchase might be a bit costlier than that of a tax auction because they are trying to get back the loan that was defaulted on.
  • Tax Deed Sale/Auctions – This type of an auction is held by the county when they take a property from an owner for unpaid taxes. This means that the county is only going to try to recoup what is owed in taxes. This number is often significantly less than the amount of money that the property is worth making it an excellent way to get the property that you really want for a bargain price. It is very probable that these properties can be taken over for hundreds or thousands of dollars only.
  • HUD – A property that is obtained by HUD (Dept of Housing and Urban Development) through a foreclosure on an FHA (Federal Housing Administration) loan is then sold at a reasonable price. In many cases, these properties need some work and are all sold “AS-IS”. That said, those who are careful about what they purchase can get a great deal on a property through this process. These properties have already been appraised and are typically able to get to closing much faster than any other type of purchase.
  • FSBO – For Sale By Owner properties provides a fair number of affordable properties. Since these properties are sold by the owners the price is negotiated by the owners. This means that you can work with the owners to come to an agreement on a fair price. These properties can also be closed on quickly because there are no brokers and you make all the rules with the owner. Not using a broker allows the seller to save on commissions and allows them to be more reasonable with the pricing.

Deciding Which Method is Best for You

The South Florida real estate market is full of bargains that will easily bring you the right property for your needs. This is excellent, but can also be overwhelming. It is a good idea to set some guidelines before you get started on your search. If there are some things that you know about what you want, it is wise to outline your search criteria first.

Decide what you can and cannot live without. Keep in mind that the South Florida property deals may require some work. Remember that if you are going to purchase the property at a very low price, there might be some room left in your budget to make those improvements that you need or want. Start with a basic outline of what you need in the end for a property so that you can see clearly what each property has to offer. These types of discounted properties are typically as-is purchases. Some are not especially accessible for inspections such as auction property. These can be challenging to make an accurate bid on without knowing what is inside.

Know Your Budget Before You Shop

Perhaps one of the most important facts you need to know is your budget. Before you set out to find that low priced property with promise, make sure you understand your budget restrictions, both what you can afford to spend and what you can afford to invest in improvements. Know your bottom line number. In most of the scenarios for purchasing bargain property there is a requirement that you have the funds. You will have to register to bid and likely provide a credit card or some kind of funds to hold. Full funds will be required within a short time of the winning of an auction. Make sure that you understand the costs related to each type of purchase such as fees, closing costs, title insurance and so on. This will help you to decide what you can afford to bid.

Prepare a General List of Vital Requirements for the Home

Beyond your budget you will want to take some time to decide what you need in the property. The number of rooms you need, how many bathrooms you want, whether you want a garage or carport, and what type of heating are all important. While these can all be altered and changed later, they will all incur an expense to change out. The size of the land around the property is also an important factor as well as your annual property taxes. Make a list of all of these items so that you have a general idea of what you want. Remember to look beyond the curb appeal for these properties. Distressed and foreclosed properties may have been empty for some time and this can take a toll on the appearance of the property. Purchasing a foreclosure property or a distressed property means putting equity in your pocket nearly immediately. This means you are likely to enjoy a solid profit on the property if you one day decide to sell the property.

Searching with the Help of a Large Database of Properties

While all of these options provide you with a great way to get the property you are looking for, there are several ways to look. One of the easiest means of finding the right property is with the help of the huge database of properties that PropertyOnion.com provides. This will allow you to access all of these home sale platforms and quickly sort through the options.

The South Florida real estate market is a country leader in bargain properties and this trend, while having slowed down a bit since 2010, doesn’t seem to be stopping. The increase in the job market in the area due to new development and construction has also improved the housing market in the area. Finding the diamond in the rough of the real estate market in Florida can seem challenging. Narrowing down the options begins with working with a search tool such as that of PropertyOnion.com. From there you can choose the best options for your needs and get started.

The Numbers Say It All

According to the FDIC, 1 out of every 200 homes is foreclosed upon and every three months more than 250,000 homes are foreclosed upon for failure to pay mortgages. This number translates into a huge number of low price homes available to those looking for a bargain in paradise. Understanding the options and knowing what you want or need is the key to getting started in taking advantage of South Florida’s low-price homes. You have a good chance at getting a quality home well within your budget if you do your homework and use a database that provides you with the inventory.

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