Foreclosure properties worth a look

BARBARA BOXLEITNER/ FLORIDA WEEKLY A rear view of this foreclosure listing in Burnt Store Meadows shows the landscaping needs attention, but the lot is not as unkempt as some vacant properties. People wanting to buy homes in Charlotte County are looking in all the usual places — and then some.

Many of the county’s foreclosure properties on the Multiple Listing Service have become places where home seekers turn. There are certainly enough of them to see. As of Monday, Port Charlotte had 442 bank-owned properties, North Port 321 and Punta Gorda had 172, according to RealtyTrac.com.

The listings are not discriminatory: beautiful spreads at exclusive locations, higher-end homes in gated communities and middle- to lower-end places in single-family neighborhoods. No demographic has been unaffected.

“The foreclosure market has spawned a whole market of new buyers,” said Jim Thiel, a Realtor at Century 21 Sunbelt Realty in Punta Gorda. “It seems like I have a lot of customers interested in the foreclosure properties. A lot of them when they come in, they specifically indicate that is the type of property they want to buy. They know there is some obvious value.”

Though foreclosure listings typically leave the impression of being damaged goods owned by neglectful people, that’s not the case. Real estate agents report that many homes have issues — and many do not. Some are brand-new homes, never occupied. Others were built as investments, to keep for future retirement, for example.

“Foreclosures are setting the new price levels,” said Terry Yonker, broker associate for Thomas Ryan Associates in Punta Gorda. “We’re seeing now there’s nothing wrong with the house at all. It’s got nothing to do with the condition of the house.”

Mr. Yonker said many homeowners whose properties are in foreclosure became overextended. He used an example of a home purchased for $2 million with a $100,000 down payment. Because of the drop in real estate values, the home is worth $1 million and the mortgage is $1.9 million. “It’s not necessarily that they go broke,” he said as to the reason people lose the home.

Higher-end homes are scattered about, though the heavy concentration of foreclosures is in residences under $200,000, said Sharon Kerr, Realtor at Coldwell Banker Sunstar Realty in Port Charlotte. As far as particular areas within the county, she said of foreclosures, “They’re all over.”

Some of the homes are real finds. One listing is of a 2007 two-story home at River Club in Port Charlotte. With 4,067 square feet under air, the home has five bedrooms and four bathrooms. It has brick pavers on the driveway, a pool overlooking a lake and a three-car garage. The home, which has curbside appeal, is listed at $260,000. Other fairly maintained residences in nice neighborhoods are available, as well. Among the south Punta Gorda listings is a home in Burnt Store Meadows, west of U.S. 41. A 1996 pool home is listed at $159,900. The single-story residence is among seven homes on a cul-de-sac. The pool home next door, a 2002 construction, is on the market for $265,000, and the other single-family residences on the circle are occupied.

The plants and trees around the bankowned property need trimming, and weeds creeping up the driveway and through the landscape beds need to be removed. The pool needs cleaning.

Although the foreclosure property isn’t in shoddy shape, home seekers need to realize that some properties will require a lot of work. “Some of these properties have been pretty physically abused as the owners are making their exit,” Mr. Thiel said. “These are a real shock to the buyers. They think everything is going to be in pristine condition, and it’s not. Others know that some of these places will need real elbow grease.”

He said some people expect only minimal upgrades, such as painting and new carpeting. Not so. Some places have holes in walls and doors and missing appliances. It can be enough to chase away lookers. “They realize for what they have, or what they want to put in it, it isn’t worth it,” Mr. Thiel said.

Those that don’t have a yard gone to seed have issues inside, especially because the electricity has been off. Bugs, lizards, frogs — big, dead ones — are commonly found, Mr. Thiel said.

He has been showing a number of foreclosure listings, most of newer construction. He recently had clients, a younger married couple who were renting, purchase a foreclosure property in North Port. The 2006 home, which has three bedrooms and two bathrooms, had been lived in about a year, he said.

“For the most part, it was pretty good,” he said, mentioning minor repairs such as replacing the damaged carpeting in the living room. “The rest of them have been pretty good.”

First-time buyers are among those looking at these properties. Yet Mr. Thiel said he’s had middle-aged people come into town for five days from the North who expect to have a contract in hand when they leave.

“They’re on a mission,” he said.

These lookers cannot expect to get a steal, however. “The bank is looking for the true market value,” Ms. Kerr said. “I strongly suggest to them to put their best foot forward if they’re really serious about a home.”

Mr. Yonker agreed. “The deals are there for them,” he said. “Whoever comes with the money gets it.”

Prospective buyers should expect swift responses — seven to 14 days — from banks once an offer has been made, he said. “They’re ready to go,” he said. “They want to move it.”

Right now, the Realtors said, the foreclosure inventory is not as inundated as it once was. 

Foreclosure tips

>> Be realistic about the quality
>> Have a home inspection done
>> Ask your Realtor for comparables
>> Consult county records for a history
>> Make your best offer
>> Expect a fast transaction

— Sources: Sharon Kerr of Coldwell Banker Sunstar Realty in Port Charlotte; Jim Thiel of Century 21 Sunbelt Realty in Punta Gorda; and Terry Yonker of Thomas Ryan Associates in Punta Gorda