The extension of the homebuyer’s tax credit, as well as the expansion to include upgrade homebuyers, has a lot of people looking for their dream home. Many are looking for that dream home in the listings for Brooklyn foreclosures. Why?
The Law of Supply and Demand
Quick marketing lesson: every market is dependent on the law of supply and demand. When the demand for a product is higher than the supply, prices go up. When there’s more product than demand, prices go down.
This is what’s happening now, especially with Brooklyn foreclosures. Around the U.S., the supply of homes has doubled in the past two years, reaching as high as a ten-month supply. While Brooklyn homebuyers have been reluctant to buy a foreclosure in the past, people are starting to rethink the situation because:
- Foreclosures are usually less expensive than traditional homes for sale. In fact, some buyers have found their dream home and bought it for pennies on the dollar.
- Foreclosed properties are generally in better condition that they used to be. In the past, foreclosed homes had a higher than average amount of repairs needed compared to other homes for sale. This is no longer necessarily true. Many foreclosured homes have been lovingly taken care of by their previous owners.
- Potential buyers of foreclosures have a wider variety from which to choose. They aren’t stuck with just one type of house in one Brooklyn neighborhood. For the careful new homebuyer, the possibilities really are almost endless.
Most foreclosed homes aren’t money pits. To protect yourself, make sure your real estate agent includes in the contract that you want to have the home inspected, and that if the home inspection finds major problems, you then have the right to walk away from the deal.
If you’re looking for a great home at a great price, I can help. Call me at Charles D’Alessandro of Fillmore Real Estate at (718)253-9600 ext 206 or email me at [email protected] for more information.