Lowell Deeds

These days I’m often asked if it’s time to start buying property. Like most questions related to real estate, it’s tough to give a yes or no answer to that one. One observation I am comfortable sharing, however, is that properties that have already undergone the foreclosure process and are now owned by lenders are the best bargains around. A variety of statistics show that homes that have a foreclosure in their recent history sell for an average of 25% less than the price realized at the previous sale. Homes that have sold in non-distressed transactions have seen far less price depreciation (which is one of the reasons I’m hesitant to say overall prices have reached bottom). Today’s Globe has a front page story exploring the bargains that can be had in purchasing recently foreclosed properties. As the story suggests, getting new owners into these troubled houses is the first essential step to stemming the decline and stabilizing neighborhood prices.