Why Are Foreclosed Condominiums Priced Affordably?

Condominiums can depreciate fairly quickly after only a few months of use. Banks may not always get the true value of the loan that the property was attached to and they may even incur losses from the cost of maintaining the property.

As banks are generally not focused on the real estate business, it’s usually in their best interest to sell off foreclosed properties as soon as possible. Compared to real estate businesses, banks are more interested in cutting their losses rather than turning a profit. This usually means that foreclosed properties are often sold at below fair market value.

Another important reason that foreclosed properties are so affordable is that banks need to maintain a high level of transparency, which discourages high prices. There may be issues with transparency when dealing with individual property sellers and some property developers.

This doesn’t always mean that foreclosed condos are necessarily worth less than new condos in the same building. In most cases, they offer the same or even better “real value” compared to their new counterparts. Most properties available are also on an as-is-where-is basis, which allows keen buyers an opportunity to get unbelievable deals on some foreclosed condominium units.

Bank Foreclosed Condominiums

https://www.robinsonsbank.com.ph/acquired-assets/real-estate/condominiums/#:~:text=Foreclosed%20condos%20tend%20to%20be,move%20to%20a%20different%20area.