I get frustrated when I hear investors say that sellers are not willing to discount their properties or sell at a loss. The best I can do to convince them they are wrong is to share experiences of other investors that are having great success finding such deals. That is until now because I have some research proof done by zillow.com proving that many houses sell at a loss by homeowners that are under water.
According to Zillow.com, over the past year a staggering 30% of homes sold were sold at a loss. That is good news for investors that are looking for deals. This is not to say homeowners are offering their homes at a loss or want to sell their homes at a loss but do if the right offer is presented.
(This is a subtle hint that you need to be in the market looking for these deals and most importantly need to be placing offers).
Report: One-Third of Homes Sold Under Water
Nearly one-third of homes that sold in the last year went for less than what was owed on them, according to a report released Wednesday by Zillow.com.
The real estate website calculated that homes values fell 9.7 percent compared to a year ago in 163 metropolitan areas. Compared to the market peak in 2006, home values have fallen 12.8 percent. Home prices have declined for seven straight quarters, according to the report.
Over the past year, 30.2 percent of homes sold were sold for a loss. In 17 markets – 14 of them in California – more than half of homes sold in the past year were sold for a loss, the report said.
Source: Zillow.com (11/12/08)
Posted by Carter Brown
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