If you are currently looking to buy Bradley Beach NJ real estate, you probably have a good idea of the general range you can expect to spend on a home. So you might be surprised when a great-looking home shows up on the MLS with what seems like a shockingly low price tag attached. The extra-low price seems too good to be true and – most of the time – it is.
In many cases, the price you are seeing does not represent the actual asking price of the property. Rather, it is likely a property that is in “pre-foreclosure” and the amount listed actually represents the balance of the defaulted loan, or the amount the current owner is in arrears. Below is an excerpt from an article I found at Inman News that does a great job explaining how these properties end up on MLS search engines, and what you can do to spot them:
Brad Geisen, founder and CEO of Foreclosures.com, singled out Yahoo Real Estate and Trulia — which have partnerships with Foreclosure.com’s rival, RealtyTrac — as sites that are presenting pre-foreclosure data to consumers in a potentially confusing way.
Property searches conducted by Inman News show both sites provide information that could help consumers understand that the pre-foreclosure properties are not “listings,” and that the dollar figures displayed with each are not asking prices. But there does appear to be potential for confusion.
Checking “foreclosures” under “listing type” and entering a maximum value of $100,000 in the “price” field, a Yahoo Real Estate search for properties in Hermosa Beach, Calif., turned up seven properties, accompanied by dollar figures ranging from $4,712 to $100,000. According to Yahoo, the median asking price for 34 homes on the market in Hermosa Beach is $1.29 million.
But click on any of the properties for more details, and you are given a “property description” that reveals — for the first time — that the dollar figures associated with each property in the search results is not the asking price. Although “price” was specified in the query, the numbers may represent “estimated loan balance” or another figure related to the borrower’s indebtedness.