2007 RE/MAX Housing Study: Interest in Foreclosed Homes on the Rise Throughout Metro Detroit

RISMEDIA, May 3, 2007-Fifty-four percent of metro Detroit homeowners would consider purchasing a foreclosed property for their future home. This finding is according to the 2007 RE/MAX Housing Study, which surveys Oakland, Wayne, Macomb and Monroe county residents.

Metro Detroit homeowners cite price and overall value as two key reasons why they would consider purchasing a foreclosed home. Those who would not consider cite the potential condition of the home and need for too much work as reasons not to purchase.

"With metro Detroit posting one of the highest rates of real estate foreclosures, it's no surprise that more buyers are beginning to consider foreclosed properties," said Jeanette Schneider, vice president and regional director of RE/MAX of Southeastern Michigan. "Foreclosed homes can be a good value for the right person who is willing to consider all available options."

RE/MAX cautions that purchasing a foreclosed home is not always easy and is hardly without risk. Before moving forward with the purchase of a foreclosed home, home buyers should consider all options in the market.

Metro Detroit homes have become more affordable with double the inventory from normal levels, according to the Detroit Association of Realtors.

"Foreclosed homes are generally sold 'as is,'" cautions Schneider. "For the buyer that means allowing enough room in your budget to fix and repair the property as may be necessary after moving in. Check to see that the money you save on a foreclosed property meets or exceeds the amount you will spend on any needed repairs."

RE/MAX recommends whenever possible to have a professional inspection done on a foreclosed property before purchase to make sure there are no surprises or repairs that fall outside of the potential home buyer's budget. RE/MAX also advocates working with a Realtor who specializes in foreclosed properties to avoid or more easily overcome any unforeseen circumstances that may arise during the home buying process.

"Without question, now is a great time to buy a home," continued Schneider. "Buyers have all the numbers on their side right now, from dropping prices to continued low interest rates and an expanding selection of homes to choose from, both foreclosed properties and traditional listings."

The May issue of Money Magazine lists the current average interest rate at 6.29%, nearly 2.5 percentage points below the 10-year high of 8.71% in May 2000. These rates are still much lower than interest rates in the 1980s and 1990s of upwards of 15%. RE/MAX agents continue to see a strong demand for homes in the first-time home buyer's market, which typically range in price from $100,000 to $150,000.

For more information, visit http://www.remax.com.

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