Miami foreclosed homes offer some of the greatest discounts on real estate available anywhere, but you won't find them through real estate agents. Discover how to find and buy these properties for bargain prices.
Miami has always been one of the most in-demand locations for real estate. With a thriving business community, a unique cosmopolitan culture and an incredible tropical climate, it's the kind of place that everyone wants to live. As a result, those looking to buy real estate in Miami often come across the one thing that ends up holding them back: an expensive price tag. But a unique combination of factors in the market over the past five years have led to the emergence of one of the best opportunities ever for buying great real estate in this seaside paradise, and that's the current market for Miami foreclosed homes.
Miami foreclosed homes have always been around. However, they haven't always been available in great numbers, and since they're not marketed by the agents and brokers trying to squeeze buyers for every possible penny, most homebuyers never even find out about them. But the recent fallout in the general real estate market changed all that.
Due to the rampant development that occurred in the city over the past decade, Miami was primed for a fall. Home prices were inflated to record highs, and investors were snatching up any property they could with the hope of selling it for higher. But when the market collapsed and home values plummeted, homeowners were stuck with mortgages worth more than the properties themselves. Eventually, these investors defaulted on their mortgages and foreclosures in Miami surged to record highs.
Unfortunately, the national focus on the negative aspects of a slumping housing market and rising foreclosure rates completely overlooked the fact that this created one of the most buyer-friendly foreclosure markets in Miami in decades. Since Miami has seen so much recent development, many of the foreclosures currently on the market are almost brand new. And, now that prices have come back to earth in the area, many foreclosed homes are now selling for half of what they were worth only a few years ago. There are all kinds of extremely high quality properties out there in some of the city's best locations, from apartments in Miami Beach to single-family homes in Miami's best residential neighborhoods like Kendall and Hialeah.
This is what makes Miami foreclosed homes unique. Few other locations offer the balance between quality, price and potential future value on foreclosure purchases than Miami. Many foreclosures currently sell for anywhere between 20% and 50% below their actual value, and with the sheer volume of new foreclosure properties in Miami coming into the marketplace in recent years, many sales have even exceeded those discounts. But the potential for making your money back is enormous. Miami still attracts more new residents each year than most other cities, and has one of the most thriving markets for vacation rentals anywhere in the country. In terms of investment value, Miami offers more promise than almost any other city in the nation.
Buying foreclosure property in Miami is not like buying a home on the open market. Most properties are sold through a foreclosure auction, which is a public sale that anyone can attend and participate in by placing a bid on a property. One of the most attractive aspects of this process for many buyers is that they can cut out the agent entirely from their home search.
But there are other opportunities as well. If auctions aren't your thing, there's the option to buy Miami bank foreclosures from local banks that have taken control of properties and arranged to sell them themselves. You can even find HUD homes and VA foreclosures in Miami available from government sources. These kinds of Miami foreclosure sales can be easier to handle for beginners, as they often provide a larger time frame in which to evaluate properties and place bids. It's important to find the method that you're most comfortable with so that you'll be in the best position to get the best deal, so research is of the utmost importance.
For those looking to get started quickly, browsing Miami foreclosure listings on a multiple listings service is a great route to introduce yourself to what's available. The below-market prices you'll find on Miami foreclosed homes offer a direct path to investment value right off the bat, and that kind of opportunity smart buyers must look to take advantage of.
