Opportunities Knocking For Savvy Buyers in the Memphis Real

Opportunities Knocking For Savvy Buyers in the Memphis Real
Estate Market

As we all know the housing market is really hurting in many
parts of the country. Even smaller market areas like
Memphis, Tennessee are experiencing falling home values and
a rise in foreclosures. Despite the problems there are some
positive things happening in markets like Memphis,
especially if you are an investor or someone looking for a
bargain price on a home. I took some time last week to speak
with Claire Bergman a local foreclosure and home buying
specialist in Memphis to gain more insight to that
particular market.

I found that investors, first-time homebuyers and move-up
buyers can find the Memphis market full of opportunity and
affordability. Claire pointed out to me that CNN Money
Magazine reported that Memphis is one of the most affordable
cities for retirees. With a 2008 median home price of
$128,000, the Memphis area is an affordable market for
homebuyers from all walks of life. Those thinking of buying
properties as investments will appreciate that roughly 42%
of Memphis area residents rent rather than own their own
homes and it is an area where investors have little trouble
keeping their properties rented. Positive cash flow, instant
equity, and tax benefits are all strong motivators for
Memphis investors.

As I mentioned before home values are falling in Memphis and
the fall in homes prices may cause a problem for some local
home sellers, however is creating an opportunity for
opportunistic home buyers. Besides being good for investors
this is also good for first-time homebuyers, who have the
most flexibility in moving while taking advantage of lower
home prices. Memphis move-up buyers will however might be
the biggest beneficiaries, these buyers will purchase their
next home, likely a more expensive one, with greater savings
than any loss on their past home. When a buyer moves up in
price, the time to do that is in a buyers market, because
that buyer will save even more on the next purchase.

Another thing worth mentioning is that Memphis is the 13th
largest foreclosure market in the country. The inventory of
real estate owned (REO) homes is growing daily in Memphis.
These are properties in a lender portfolio that have been
assumed by a lender after a foreclosure. There are always
some great deals in REO properties and finding them in this
type of market is usually not to hard. While they typically
will go "as is" and some can need a bit of repair, getting
these homes as much as 40% under value in some cases is well
worth covering the cost of repairs yourself.

It is good to know that there is still affordable housing
around the United States and great home buying opportunities
are out there in certain places. Memphis is indeed one of
those places. If you are thinking about relocating to an
area with affordability in the housing market or looking for
a good investment opportunity, Memphis, Tennessee just might
be the place for you!

Mitchell Calvo works for HomesByLender.com specializing in
educating investors and bargain hunters in real estate
investing, especially foreclosure purchasing. To view
Memphis, Tn foreclosures visit the Memphis area
HomesByLender.com site. For foreclosures nationwide be sure
to visit HomesByLender.com and navigate the map to the
market of your choice.

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