There has never been a more opportune time to take full advantage of current real estate market conditions than now in The Wildwoods. In a normal buyers market opportunities to purchase properties for less than market value are plentiful. However what we are living through today for anyone who has a dream of owning a home at the Jersey shore (in the Wildwoods) it’s the equivalent of the “perfect storm”! An extremely rare occurrence that most never experience and few have the courage, insight or “right Timing” to take advantage of.

The clock has been reset on property values across the board, particularly at the shore (in the Wildwoods). Homes and condominiums at the shore are widely available today at prices similar to what you would have paid in the late 1990’s. There are a number of factors that contribute to this situation. The focus here will be on one of the primary factors; the influence of “distressed sales” on the market place.

A distressed sale is generally considered to be a sale offering of a property whose owner is unable to continue to pay the mortgage and other related expenses pertaining to the property commonly known as a “Pre-foreclosure” or “Short Sale”. In addition it may also be a property offered for sale by the bank or entity that owns the mortgage in most cases post foreclosure. The later typically known as an “REO” meaning Real Estate Owned, by the bank or Lender.

There are many factors that contribute to the creation of a short sale situation. The primary factor is that the property no longer brings a price in the present day market place that will equal or exceed what is owed to the lender. Hence a “short sale” situation is created. In order to sell the property “short” the Lender must agree to allow the property to sell for less than is owed to them. Therefore the sale is contingent on the lender and or third party’s approval (in some cases there may be a second mortgage and or additional creditors that must be considered in the short sale process).

It is this situation where sellers are “under-water” that makes it hard to sell their property, in turn forcing price reductions resulting in downward pressure on property values in the market place creating “the prefect storm buyers market”! It is important to note that Short Sales differ from foreclosures in that the lender forces a foreclosure, where a short sale is a consensual situation between both borrower and lender. In addition the short sale process can take months to complete depending on how complicated the situation is and which bank or lender the loan is with. The larger lenders tend to move slower due to their particular procedures and the sheer volume of sales they have pending.

In most cases properties offered as “REO” or bank owned can be sold in less time than a short sale because the lender has taken possession of the property through the foreclosure process. Therefore as the seller it’s primary focus is to negotiate the highest price possible in order to reduce it’s loses. However if the property is priced right it may get a heightened level of attention resulting in multiple offers, which could drive the price up.

In general the properties that are currently offered as Short Sales in the beach communities of Cape May County are newer condominiums and town homes many in locations that offer direct ocean, beach and or Bay views! The majority of these properties have been built with many upgrades included; such as granite counter tops in the kitchens together with cabinet and high-end name brand full appliance packages. Additional values may include lighting and plumbing fixture upgrades as well as custom tile bathrooms and hardwood or tile flooring. These amenities and upgrades where justified by much higher purchase prices. Today upgrades such as these can be cost prohibited for a builder/developer and would be offered as extras.

Considering that current Wildwood Real Estate market conditions offer up to 50% discounts (in some cases more) from previous values in the Wildwoods; together with mortgage interest rates lower than we have seen in decades, add to this sellers who are “under-water” and must reduce debt obligations the result is the “perfect storm buyers market”! For those who dream of owning a place at the shore all that is needed today is the will to get in the game, the patience to stay the course and the bargains are yours for the taking!