Lake Wylie Foreclosures

In 2009 to date, about 20% of waterfront sales have been foreclosures, bank owned, or short sale properties. The average sales price of these foreclosed waterfront homes to date in 2009 is just over $570,000, representing a 51% discount over the original sales price.


Wow! A half price home! What a bargain!


Perhaps, or perhaps not. In some cases, the homes were not completely finished, and the buyers had to assume repair or finishing costs. In most cases, the original sales price was way too high, even for the robust sales market of 2007. Or, the price was simply higher than the market could support. In 2006-07, when sales were booming, builders began constructing homes that were more and more expensive. The market got to a point where there were simply more luxury priced homes that there were buyers in that segment.


As the real estate markets around the country started to crumble, fewer buyers were able to relocate to our market. Their homes wouldn't sell, and they were stuck where they were. This had a significant impact in our area, considering that most of the higher priced homes in our market were being purchased by relocated buyers.

Most of the Lake Wylie waterfront foreclosures to date have been new, or at least recent, construction homes. Most of the deep discounts have been homes that were originally priced for well over $1 million, selling for $600-$800k.


I've received a record number of calls this year from bargain hunters. My hands have been full trying to balance expectations with the reality of the market. Many people call wanting a waterfront lot with a great view, deep water, no power lines in sight anywhere, level building site, excellent school district, all for under $200,000. Those lots just aren't out there.


I receive a lot of calls from people who want a 3000 sq ft home, recently built, on the water with a great view, public water and sewer, move-in ready for $400,000. Those homes just aren't out there.


Now, there have been some extreme bargains this year. I sold one waterfront home, brand new with all the bells and whistles, for just over $600k. It immediately appraised for over $850k and the buyers were estatic. But if they put it on the market today and tried to sell it for that amount, it would take awhile.


Are there good values for buyers right now? Absolutely. But real estate, like many investments, should be considered a long term investment. Consider not just how much money you can make in the deal, but how much life enjoyment you will receive. A misty morning sunrise over the lake, the face of a kid getting up for the first time on waterskis, the smell of barbecue from that family reunion lakeside, the sight of a duck and her ducklings waddling across your back yard . . . absolutely priceless!


For more information on Lake Wylie real estate available right now, Lake Wylie foreclosures, and living on this beautiful lake, please visit my website, The Lake Wylie Man. David Coone is a waterfront specialist, a licensed realtor in NC and SC.