May 30, 2013 – The Numbers Don’t Lie

The Numbers Don’t Lie

The Current Market of Single Family Houses for Sale in Broward County

The Numbers Don’t Lie

The most common question we are asked is “Where are your deals coming from?” This will be explained later on in this article, but for starters let’s look at some numbers regarding Broward County Florida.

There are a total of 377,767 single family houses in Broward County. This number does not include townhouses, condominiums or mobile houses. Out of all these houses only 1.5% (5,335 homes) are currently listed for sale. Let’s break down the 5,335 houses for sale into three categories, Not in Distress (these are houses listed with a realtor where the homeowner is not in pre-foreclosure), Pre-foreclosure and Foreclosed.

Not in Distress

There are a total of 327,058 houses in Broward County that are not in pre-foreclosure or have not been foreclosed. Just to present some numbers, since there is no way to tell if these homeowners are truly motivated, there are 3,815 or 1.2% of the non distressed homes currently for sale. Deals can be found through homes listed on the MLS that are not in trouble, but there will be lots of work going into getting these deals. There will also tons of competition with other buyers.

Foreclosed Homes

There are currently 12,063 foreclosed homes in Broward County. Out of the 12,063 foreclosed homes, only 449 are currently listed on the MLS for sale. Only 3.8% of all foreclosed houses are on the market. Being that you can only make offers on listed bank owned properties (REO’s); the competition to get one of these 449 homes is stiff. And now you know why most Realtors and brokers are selling their properties at or above list price.  Can you find deals on foreclosed properties that are listed on the MLS? Yes, but a lot of work, follow up and competition will be involved to possibly get one or two deals a year with small profits.

Pre-Foreclosure Homes

There are a total of 38,646 houses in pre-foreclosure in Broward County, but only 1,071 are currently for sale on the MLS. This is only 2.8% of all pre-foreclosure homes! So needless to say, unless the homeowner catches up on payments, or does a loan modification, there are 37,575 homes yet to come on the market. Once again competition will be tough trying to get a short sale property that is listed on the MLS.

With listed properties, deals can be found in all three categories. But remember, when a property is listed, you are competing against all investors, rehabbers, landlords, and end buyers. Everyone has access to these properties through the Internet and Realtors, thus increasing the number of offers on each listed property.

So where are the deals coming from? Through motivated sellers! Don’t worry; keep reading to find out where to locate the deals. Peak at the Pre-Foreclosure paragraph again. Only 1,071 out of 38,646 are currently for sale, leaving 37,575 houses with potential motivated sellers. If these owners don’t get a loan modification or catch up on their payments, they will be foreclosed by the lenders. Some of these houses could have equity, but chances are they will be going through the short sale process sooner or later. If anyone needs help with processing a short sale or has a question regarding a short sale, email our short sale specialists at shortsale@wjl.net or give us a call 954-424-3008. One of our short sale specialists will be more than happy to help.

Probates are a great source of potential deals because the person inheriting the property typically doesn’t want it, a motivated seller.  But the lead source for our most deals are unlisted short sales. Our short sale specialists will process the short sale. Most leads for these sellers come from mailing campaigns, door knocking, bandit signs and door hangers.  You must be willing to pound the pavement to create a steady stream of leads which results in getting deals done!

Happy Investing

Robert Donahue III

 

Statistics researched and obtained through Reifax.com