why are Myrtle Beach Foreclosure Listings selling fast?
Most people talk about how slow the market is and buyers looking at foreclosures seem to be skeptical when their offer gets out bidded. Its no secrete there is a lot of Real Estate for sale in Myrtle Beach.
The problem isn’t the amount of inventory it is the price of about 75% of it. If you bought an ocean front condo in 2005 chances are you could be 50 to 75% upside down. Which if you are not able to short sale, you probably can’t afford to sell.
But the foreclosures the banks are putting on the market are being priced low. This way the banks are not keeping a lot of inventory on the market. Many banks are pricing properties to create a buyer frenzy and sell within 30 to 60 days.
Many banks are also offering financing incentives and Fannie Mae offers Home Path approved properties that make it difficult to find financing terms as good conventionally.
The majority of foreclosures are being sold within a few thousand dollars of asking price. Most of them are multiple offer situations and the banks are doing a “highest and best” strategy, where all initial offers get an opportunity to put in there best offer. This is the buyers last chance to make a final and best offer.
We are seeing foreclosures often times being sold in just a few days from being listed on the market.
Dont buy a Myrtle Beach Foreclosure
Everyone keeps talking about buying foreclosures in Myrtle Beach and what a great deal you can get on one of these bank owned properties.
But there is a problems with this, of course the banks can afford to sell much cheaper than a lot of the traditional sellers. What problems do you give in to by buying this discounted property?
The Horry County court systems have been backed up tremendously. In some cases foreclosures are taking over 12 months to complete. During this time many of these properties have been left vacant the entire time.
The electricity has been turned off and the humidity in the area is often high, this could potentially lead to mold and mildew problems.
Buying Myrtle Beach foreclosures are often times not the best deals on the market. Then on top of it you have to compete with other buyers over them.
To make sure you get the best deal on Myrtle Beach Real Estate contact us
Coral Beach Foreclosures
Coral Beach Resort Foreclosures
Condos in Coral Beach are always a popular for people coming on vacation to Myrtle Beach. The reason is because of all of the amenities the property has. The have a bowling alley, arcade, restaurant, indoor and outdoor pools, cabana bar, on-site gym and a lot more.
The problem with Coral Beach Resort is the same problem a lot of resort is having. The property was converted to condos at the peak of the Myrtle Beach condo boom. Back in 2005-2006 Coral Beach condos were sold for well into the mid – $200s.
While rental incomes for Coral Beach condos are high compared to similar age and size resort the rental incomes were not enough to support the prices the units originally sold for. As of this blog post these condos are available for about 35 cents on the dollar (of what they originally sold for).
The resort has several different layouts as far as furniture goes. Some of the “shot gun” one bedrooms have 2 double beds and others have a king sized bed. if you are planning to rent your condo out through the on-site rental management office you will need to keep the designated configuration. To my knowledge there are only 3 different floor plans. All of the direct ocean front condos are considered 1 bedroom units. The end units are a little larger and are real traditional 1 bedroom condos and have 2 balconies. The angled condos are all studio units.
Coral Beach is a Condotel by any definition you can find. For more information on Coral Beach Contact us
Myrtle Beach Condotels
The term “condotels” is always a big topic when working with buyers in Myrtle Beach. The reason is because of the difficulty in financing condotels. In today’s financial times financing a primary residence for a buyer who has a perfect credit score, a downpayment and a good job can be difficult, but a condotel is even a little more difficult.
First of all “what is a condotel? Chances are if you are looking at an ocean front condo in Myrtle Beach, it is probably a condotel. The easiest description is a condo building that operates like a hotel. They normally have a check in/out desk, a maid service etc; just like a hotel. The entire oceanfront in Myrtle Beach is Condotels.
The reason why financing difficult is because condotels are normally bought as investment properties and second homes and have recently had a very high rate of default.
If you are looking at a condotel that is under 500 sq ft and does not have a full kitchen there are very few financing avenues in todays market.
Larger condotels we have saw many buyers having to put down larger down payments – sometimes as much as 40% and also having to have strong personal financials.
There are a lot of great oppurtunities right now to purchase a Fannie Mae Foreclosure or a Home Path Approved Condotel. These properties have special financing incentives, that are not being offered through traditional financing.
This is one of the many reasons to use an experienced Myrtle Beach real estate agent when buying property. Fore more information on buying a condotel in Myrtle Beach contact us.