In Foreclosure Climate Sales of Condos are Picking Up

May 26th, 2009

Despite the continuation of the bad weather and the foreclosure climate, sales of condos are slowly but surely picking up.

Steve Economou bought a furnished two bed roomed condo at Boca Teeca for $157,000. Economou is an investor from Boston and has quickly responded to the falling prices to purchase this second home in Florida. He thinks it is the greatest feeling in the world.

Many like Economou who are hunting for bargains are helping to speed up sales in the real estate market. Median prices in regions like Palm Beach County and Broward County have fallen to less then $100,000 – something the state has not seen since 2003.

However it is still proving to be difficult to get mortgages to buy condos. The new conditions attached to lending have reduced the number of qualified buyers. Their choice is also limited to the buildings that have remained unscarred by the foreclosure crisis.

This has left some condo owners no other option but to make cash payments upon purchases of properties. They are conducting detailed evaluations on the latest developments and avoiding those places that are riddled with empty foreclosed units.
Lisa McKeon deals with sales as well as renting at The Whitney in Palm Beach downtown region. She said, “There are some fabulous buys out there, but you have to assess the building you’re buying into. That’s just as important as the price you pay for the unit.”

Before clinching the deal Economou had his agent Frank Thomas look into the financial conditions of Boca Teeca. The local MLS listings were scanned and note was made that less than one tenth of the 420 units in the site were ready to be sold. The financial documents f the development was thoroughly scrutinized by Frank and he also had detailed discussions with some of the members of the board. Finally Economou together with Frank made a detailed tour of the property searching for telltale signs of cracks in the sidewalks or peeling paint and half-paved roads. After being satisfied that the unit was in shipshape condition they decided to finalize the deal.

Two school teachers Lorraine and Peter Snarberg sold their four bed roomed house in Wellington and purchased a two bed roomed unit in Cresthaven development near West Palm Beach. The elderly duo nearing retirement paid $70,000 for the condo after taking out a traditional mortgage of $50,000.

Although their credit history was excellent, the lenders – Sun Trust conducted a combing review of the finances of the complex before granting the loan.