McKinney TX Real Estate

Foreclosures and Short Sales in the Dallas/Fort Worth and McKinney areas are no strange or foreign sighting. They're everywhere. Maybe there is one (or a few) on your street or neighborhood.

If you're in the market for a new house then you might even be thinking about purchasing a foreclosure for yourself. After all, your brother's girlfriend's mom's sister who is friends with this guy who knows this girl got an AWESOME DEAL ON A FORECLOSURE! They got a $480,000 house for only $104,000! "There are great deals like this everywhere", you think.

Think I'm kidding?

If so, do this simple test. When I say the word "Foreclosure" what word or words instantly pop into your head? For many buyers it's: Steal, Good deal, Bargain, Fire Sale, Deal of the Century, MUST GO! And so on...

Well, in some cases this is true. It's different for EVERY market though! I can't emphasize this enough. Some markets are experiencing massive price declines. Others, like DFW and McKinney (Collin County) are holding steady. Not increasing, but remaining relatively flat.

If you're thinking of making an offer on a Foreclosure, and you have the idea in your head to low-ball your offer, you may want to consider these statistics when coming up with your negotiating strategy:

-226 Foreclosed homes have sold in McKinney since Jan.1, 2009 (as of 7/7/2009 according to NTREIS MLS).

-The average days on market for these 226 homes was 94 days.

-Prices ranged from $15,000 for an old tear-down up to $799,900 for a beautiful estate.

-The list price to sales price percentage was between 75% all the way up to 110%. Yes, 110%. OVER ASKING PRICE.

-However, on average the list price to sales price ratio was 98%. NINETY EIGHT PERCENT! What does this tell you? The banks are recieving 98% of what they are asking for on average.

Some other words of advice:

-Many times the Foreclosed home is already priced attractively below the market value. This reflects the sometimes poor condition of these homes.

-Most times these homes are sold AS-IS, WHERE-IS. No repairs will be made. Keep this in mind as you may need to budget for new appliances, flooring or more serious issues.

-When deciding if this is a "good deal" or not, consult with your REALTOR (R)!! Oh, not working with one? GET ONE! Let them research the comparable properties in the neighborhood to see how good your "deal" really is. When you factor in the time and cost it will take to bring the neglected home up to market condition, you might be finding out that your deal was really a money pit. Let them help you navigate the special bank forms they require that you use. Do you understand all the legal jargon you are signing? Get the help of a professional. You don't pay the Buyer's Agent fee - the bank does - so you've got nothing to lose!

What ever you do, don't waste your time lowballing a lot of offers (unless you are an investor with a lot of time on your hands). It will only increase your frustration and waste precious time that you could be moving your family into your new home. By offering a fair price, after consulting with and according to current MLS data, make an offer that YOU feel comfortable with. Many attractively priced foreclosures will go quickly, often in bidding wars where the listing agent will call for everyone's "Highest and Best" offer. So give them your best from the beginning to stand out!

If you're interested in looking at Foreclosures in McKinney or Allen, Plano, Frisco or surrounding Collin and Dallas county, then give me a call, send me a text, shoot me an email, fax me, tweet me or message me on Facebook. Not enough ways to get in touch? You can always drive down to the Historic Square in McKinney and say Hello in person!