Jun 5, 2009 4:45 pm US/Pacific
Bay Area Homes For Under $100K Attract Investors
Bank Owned Properties Fueling Higher Home Sales
OAKLAND (CBS 5) ―
The pool of homes going for under $100,000 is growing, mostly in areas hard hit by foreclosures. Some are in neighborhoods where comparable homes are currently valued twice as high. But it's not as simple as saying "'I'll take it."
Home buyer Robert Litwin is ready to buy a home. "I haven't seen anything this cheap in least 15-20 years.
Litwin said the banks are still holding back on lending money.
So, he is paying cash. He's an investor who assumes he'll recover his money and more. And lucky for Broker Paul Winders, there are a lot more people like him entering the market.
"We are seeing the same prices we were seeing 30 years ago, It's amazing," Winders said.
He said for several months, all of the elements of a buying storm have been brewing. More foreclosures are on the market. More investors are looking to recover stock market losses, and banks are desperate to unload.
"The banks aren't in the real estate business. The banks made loans they shouldn't have made. They need to get rid of the inventory," he said.
A house in Bay Point sold in 2004 for $287,000. It's priced now at $89,000. An Antioch 3 bedroom 1 bath once priced at $188,000 in 2008 just sold for $85,000.
Don't expect an open house with staged furniture. In fact, Winders often has to check for safety and squatters. But, he's willing to take his chances if it means buyers are back.
"The tools of the trade have changed," he said. "It used to be all you needed was your lockbox key and your pen to write a contract and your cell phone. Now my must trustworthy tool is my pepper spray because I'm in places I don't want to be."
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