I was just talking to a few people (friends and people at work) and one of them recently took advantage of the situation in Florida with interest rates and foreclosures.
I haven't had a chance to speak to this person in detail yet, but other friends are also looking. One buddy is heading down in two weeks to take a vacation with his family as well as look at properties at the same time, and the same with another friend. He'll be heading down soon as well.

What are some of the prices that these places are going for? I'd prefer on or near the beach and the Keys would be my ultimate pick but I'm sure this is way out of my league, so any location is fine. I just want to get an idea before seriously looking into this.

I want to see what some of you have to say. I figured you'd have some valuable input for this thread Thumper.

 

the realestate market in Florida is horrible. I lived there 14 years and my whole family lives there. My mothers town house value dropped from $225k down to $175k just in the past year. My dads house in Miami has also gone down but not as much as elsewhere in the state. I have a friend that is a realtor in Orlando and he had to look for another job about a year ago because you cant give a house away down there.

And if your thinking keys here is an example for you. A beat up trailer on a small piece of land in the keys goes for about $500k.

 

The foreclosures are going real cheap. Most of the banks are working with us to get these things sold and off the market to reduce inventory. It's definitely a good time to buy. Just plan on waiting 2-3 months on a pre foreclosure. The MLS here just screwed us, too. Now instead of a us being active and allowing us to submit all the offers to the bank which only helps the situation here and the banks, they only allow one offer to be submitted to the bank and the house has to go pending. Well, that's great, it helps out the buyer. What sucks is that it'll be off the market for 2-3 months and than we'll find out that the bank won't take it. These people only have so long before their house is going to be foreclosed on so. As far as beach area. I'm sure the prices have came down but it's not going to be anything like the mainland. The beach stuff is always going to be worth a lot of money. As far as pricing, that's going to be a long shot for me to tell you. I mean I have no idea what area you'd be in, what size house, property, etc ... All I can tell you is that you'd be getting a deal.

 

Yes, there are some deals out there, but you must also consider the increased insurance and ad valorem taxes that will add to the expense of the mortgage (unless you are paying cash.) Some insurers have increased their Florida homeowners policy rates as much as 100%, with taxes increasing as much as 400% (especially in FEMA flood prone areas.) Add to that, the lenders are very reluctant to lend money right now, especially for second homes in Florida. I have seen prices falling steadily since mid '05, and prices are still falling. All the market research that my company gets says that the bottom has yet to come. Sure, you can save thousands of dollars buying a foreclosure, but you still have the potential to be upside down in your mortgage in as little as a year. Still too risky in my opinion.
I am an appraiser.

 

Cool, thanks.
I was speaking to someone since I posted this thread and they're looking at a place to hang their hat for maybe 2 weeks a year and he's looking at trailer parks in central Fla. They're giving those places away for 10-20 grand for furnished turn key places. That isn't what I had in mind, but another friend was mentioning 60 grand for some properties just north of Tampa. Again, I haven't talked to him in detail either.

My ideal place would be something in the 1200-1500 square foot area (vacation home, no lease, own property) within walking distance or right on the beach. I have no idea what to expect for prices and what the prime locations are.

 

Next to the beach your looking at at least $350k for that size place and that would be in a crappy neighborhood.

Your looking at $600- Mil for anything nice near the beach.

 

A couple of the problems with buying a foreclosure are that there may be property taxes owed going back for a couple of years. They are sometimes held by people who buy the tax liens and some of the interest can be as high as 18% depending on the bid for at the lein sale. So you have to be very careful. Number 2 is insurance. You are going to pay through the nose for it if you can get it. There is insurance that you can get through Citizens (the state of Florida) but it is not cheap if you want beach front Then also if it inn aflood zone you have to get flood insurance. That takes about 3 months to get. So it gets very expensive for that. Then there are property taxes. Depending on where you want to be, you might have to give up an arm, a leg and part of a hand for that. You must be very careful of what you are getting into. I have seen some foreclosures in my area and they are falling apart because noone took care of them. Lots of luck. You need it.

 

I'm thinking he's talking about buying a preforeclosure, even though he said foreclosure. Right now there is no reason to buy a foreclosure when there plenty of preforeclosures on the market. The bank and the owner want to get away and wipe their hands clean. It's a win-win situation for the bank, seller, and most importantly the buyer.

 

Even so. But all of these things have to be taken into consideration at the same time because unless you do a lot of investigation you will get bitten hard. I had purchased some tax leins in my county 2 years ago. Now I am forcing those properties to be sold even if it means foreclosure because I have to be paid the back taxes that I paid on the property plus all of the interest.

 

If you're not current on your mortgages and the bank has put you on their "list". I'd get those houses on the market, if you haven't already, and tell the realtor to just keep reducing the price until they see showings and offers. Than you can submit those offers to the bank and see what they'll do ... It's a lot better than having a foreclosure on your credit.

 

Thump, What is the best way to search for pre-foreclosures. A good internet website or do I need to go thru a Realtor. I'm going to be buying my first place in 6 to 8 months so I just want to browse and find out general prices of different areas. I will also be using a realtor when I do buy. If you know of a good realtor in the gainesville area that I could use in a few months would be great.

 

Since it's your first home, I'd go through a realtor. I personally do not know anyone up there but let me ask around and I'll get back to you.