Wow, every Real Estate office that I pass has a banner, marquee, or sign claiming the above. Just stop on in and pick it up. Since I deal with a large number of foreclosures as a listing agent, I thought I'd share a couple of thoughts.
I get calls every day for foreclosed listings that sold two to four weeks ago. They're definitely not being found online. Are offices not updating these lists or are consumers picking them up and letting them sit for weeks before they act? Hard to say, maybe some of both.
If you are interested in foreclosures, here's a few other thoughts. First, properties under $80,000 go very, very fast. If they're financeable, that is in good enough shape, they're absorbed quickly. In general, a lot of homes under $50,000 cannot be financed because they need too much work. Unless you are getting a rehab loan or a construction loan, you'll need to buy cash.
Are you handy? If you are, the above example is OK. If you're not, what good is buying a $20,000 house if you have to hire out all of the work to make it habitable? You might as well spend more on a home that can be financed and perhaps needs only re-decorating. Will you live there yourself or rent it out? Maybe it's a home for an older child. All are OK, but know your strengths and plan accordingly.
Of course, I am biased as a Real Estate Professional, but unless you have done a lot of buying and selling on your own, I strongly recommend that you work with an agent of your choice. They will help you refine your plan, get you listings that are appropriate and guide you through the buying process.
Remember, you have to know what you can handle in terms of repairs and expenses. If you're looking at the low end of the price range, you have to be prepared to act quickly or lose out to another buyer. I am amazed at the number of people buying under $50,000 homes for cash. Your best bet for a successful purchse is to work with a real estate agent that knows bank owned property procedures.
Wednesday, October 21, 2009
Tuesday, October 13, 2009
Investing in Foreclosed Properties and Homebuying Seminar
Preview Properties is presenting this session at 6pm on Wednesday, October 21st at the office, 130 W. Grand River, Brighton 48116. For reservations or more information, please contact Lisa Bohlen at 810-220-1505 or at lbohlen@previewproperties.com
Friday, October 09, 2009
Thoughts On Livingston County Real Estate
1. It's getting harder to get deals closed. I've had three deals this year where the buyer's bank folded within 5 days of closing. That means they have to get approved by another lender which is usually not a problem. But two of these three were also using the Dept of Agriculture's Rural Development Program. It's a great option for buyers that qualify based on income. 100% financing, no PMI - what a deal! But it's so popular in my area that the backlog to process has grown.
Banks usually give you a 45 day window to close on a foreclosed property. I've had to get extensions because of Rural Development processing delays. Most of the time that means a $100/day charge to the buyers and one deal fell apart because of that extra cost (20 days x $100/day=$2,000 more).
If you're near to closing, you're likely at 30 days already. If your lender shuts its doors (or the precursor of not taking any more mortgage applications) and you have to switch, it's a real challenge. You find out who the good loan reps are when you get into this kind of situation.
2. Prices are still dropping. Let's face it. Buyers rule. It doesn't matter what the appraisal says a house is worth. You have to price a home well enough to get a lot of buyers through it. When it gets to the right price you get a good offer, or even multiple offers. Some buyers are unrealistic in their (lowball) assessment of value, but those that are tired of looking at homes that need a ton of work will pay a higher price for an updated, well-maintained home. It may still not be at the full appraised value, but it's usually not unrealistically low. A well-motivated seller will make it happen in most cases.
3. Sales numbers are still pretty robust although the average and median prices are dipping due to the high number of foreclosed homes on the market. I've sold quite a few properties under $80,000 this year. many were not in horrible shape and were bought by parents for their young adult children. The plan is usually that the child will rent the home. If they decide to buy on their own in the future, the can work with the parent to buy that home or go out in search of a larger place on their own. The parent still has the property to generate rental income.
Banks usually give you a 45 day window to close on a foreclosed property. I've had to get extensions because of Rural Development processing delays. Most of the time that means a $100/day charge to the buyers and one deal fell apart because of that extra cost (20 days x $100/day=$2,000 more).
If you're near to closing, you're likely at 30 days already. If your lender shuts its doors (or the precursor of not taking any more mortgage applications) and you have to switch, it's a real challenge. You find out who the good loan reps are when you get into this kind of situation.
2. Prices are still dropping. Let's face it. Buyers rule. It doesn't matter what the appraisal says a house is worth. You have to price a home well enough to get a lot of buyers through it. When it gets to the right price you get a good offer, or even multiple offers. Some buyers are unrealistic in their (lowball) assessment of value, but those that are tired of looking at homes that need a ton of work will pay a higher price for an updated, well-maintained home. It may still not be at the full appraised value, but it's usually not unrealistically low. A well-motivated seller will make it happen in most cases.
3. Sales numbers are still pretty robust although the average and median prices are dipping due to the high number of foreclosed homes on the market. I've sold quite a few properties under $80,000 this year. many were not in horrible shape and were bought by parents for their young adult children. The plan is usually that the child will rent the home. If they decide to buy on their own in the future, the can work with the parent to buy that home or go out in search of a larger place on their own. The parent still has the property to generate rental income.
The Holidays Are Closing In!
After a summer of spring-like weather, here we are starting to feel like Fall. And looking like it, too. I couldn't help but to compare the sky one day last week with the appearance of winter snow clouds.
Quite striking. And of course, the fire bushes are turning bright red, maples transitioning into their fall palette and flocks of birds flying towards the south. Even the squirrels seem to have picked up their activity level lately. I hope that's not a harbinger of a hard winter. As much as I like all four seasons, last winter was a harsh kick in the behind after many years of being mild.
The season also brings to mind the coming holidays. My office, Preview Properties, always supports the Livingston County Association of Realtors (LCAR) spring food drive, Fill The Gazebo, for Gleaners Community Food Bank. Recently the barrels appeared again in the office and it reminded me that this is a time of year when people on a tight budget have extra bills. Heating and more electicity needs are usually at the top of the list and sometimes they don't have money to buy enough food.
At the local grocery this week, I noticed canned goods on sale for $0.39 each. I bought a case each of corn and green beans, and a couple of other sale items to drop off in the Gleaners collection bin. I urge you, too, to think about those struggling families and make a similar effort. It won't cost much, and your donation will go far.
If you're local to my area, feel free to drop off donations at our office at 130 W. Grand River, Brighton 48116, or at the Gleaners Community Food Bank on Sterling Drive, off Dorr Rd just south of Grand River Ave.
Quite striking. And of course, the fire bushes are turning bright red, maples transitioning into their fall palette and flocks of birds flying towards the south. Even the squirrels seem to have picked up their activity level lately. I hope that's not a harbinger of a hard winter. As much as I like all four seasons, last winter was a harsh kick in the behind after many years of being mild.
The season also brings to mind the coming holidays. My office, Preview Properties, always supports the Livingston County Association of Realtors (LCAR) spring food drive, Fill The Gazebo, for Gleaners Community Food Bank. Recently the barrels appeared again in the office and it reminded me that this is a time of year when people on a tight budget have extra bills. Heating and more electicity needs are usually at the top of the list and sometimes they don't have money to buy enough food.
At the local grocery this week, I noticed canned goods on sale for $0.39 each. I bought a case each of corn and green beans, and a couple of other sale items to drop off in the Gleaners collection bin. I urge you, too, to think about those struggling families and make a similar effort. It won't cost much, and your donation will go far.
If you're local to my area, feel free to drop off donations at our office at 130 W. Grand River, Brighton 48116, or at the Gleaners Community Food Bank on Sterling Drive, off Dorr Rd just south of Grand River Ave.
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