I’m working on a deal in Bonita Springs for a property worth $2.8 million in 2007 that is now $800,000. I’ve seen others worth more than $1 million in 2006 fall to roughly $250,000 now.
Most homeowners have seen values drop, but these prices are so low because the homes are owned by a bank. And the bank wants to get rid of them.
The Naples area and Florida are among the hardest-hit by foreclosures in the country.
Just like the rest of the population, many luxury buyers took out adjustable-rate mortgages. Many of them have come due recently. That, combined with job loss and sinking home prices, led to an uptick in foreclosures of luxury homes.
That means hundreds of high-end homes sit abandoned. But that could be good news for those ready to buy. Homes and condos along the beaches and downtown condos are among the most popular luxury foreclosures.
Potential buyers of luxury foreclosures also don’t have to worry about trashed homes as much as buyers of lower-end houses. That’s because banks usually take better care of them.