Why are these USA houses so cheap?

silaslang

I was curious about the average house price in florida the other day and came across the site below on google.

Why are these houses so cheap? Im assuming there repossessions but can anyone explain why so cheap still please?

http://www.trulia.com/for_sale/Orlando,FL/price;a_sort/15_p/

hearts

The US is massive. Land is cheap in these areas and building costs low. Add into it the effects of bad lending and repossessions and you have your answer.

sdooley

I think they also frequently sell by auction. So those are probably only guide prices!

BlouseyBrown_2

and they are in Orlando.....which is really rough and booooring

SouthCoast

And some more properties in Florida:


http://listings.ebay.com/_W0QQsocmdZListingItemList?sofocus=pf&sbrftog=1&dfsp=32&socmd=ListingItemList&catref=C3&from=R2&satitle=&sacat=12605%26catref%3DC6&a9=1044&a10=-24&a20=-24&a15=-24&a16=-24&alist=a9%2Ca10%2Ca20%2Ca15%2Ca16%2Ca3801&pfmode=1&reqtype=2&gcs=9&pfid=10&pf_query=&sargn=-1%26saslc%3D2&sadis=200&fpos=BN17+5DU&sabfmts=1&saobfmts=insif&ftrt=1&ftrv=1&saprclo=&saprchi=&fsop=32%26fsoo%3D2&fgtp=

withabix

Thos are pre-foreclosure and foreclosure properties.

That isn't the price of the property, it is the outstanding mortgage.

Basically what is being sold is the debt.

You then have to negotiate with the owner/borrower to buy the equity and hence own the property.

Either that or you have the option to become the lender by buying the debt. The owner/borrower then pays their mortgage payments to you - in theory - but as they are about to be foreclosed, that isn't likely!!

They could be million dollar houses (and some of them clearly are).

brightonman123

are most made of wood? hardly strong enough to withstand a bad cough, let alone a tornado..

budicca

yes, I've a hunch that a high proportion of U.S. homes in certain areas are wood built/MDF type panels. they look conventionally sturdy, but only in a kinda film set way.

I noticed it was a big plus to say, on Place In The Sun/Fly To Buy type TV, that the house was 'brick built'. I thought at first it was just a stylistic description but I wonder...!

withabix

Modern houses in USA and Canada are almost all timber framed and timber clad. In Canada particularly, the use of bricks in housebuilding is very rare.

SIP and other factory-based construction systems are often used.

Often one wall (the front) may be built in brick to show off how rich the owner is.

Insulation levels in USA and Canadian houses are often much higher as is the standard of construction.

Renovation and extension is also a lot easier. Take a bit off, put a bit on.

Many new British houses are timber framed. The outside brick skin on timber framed houses in the UK is purely cosmetic. The structural part of the house is the timber frame.

The same is true for brick and block cavity wall construction. The outer skin of brickwork is not structural and is held in place with brick ties to the inner skin. The outer skin is purely there to look nice and to stop your doors and windows from falling off!

Pobby

Many years ago I worked for a fairly large company in the Southern States.The presidents bungalow was huge.We discussed priced and found out it was valued the same as my tiny little 2 bedder bungalow here in England.

BobProperty

BlouseyBrown wrote: »

and they are in Orlando.....which is really rough and booooring

Plus you can bet that the cheap stuff isn't zoned for short term rental. Translated into English, it doesn't have planning permission for holiday letting.