real estate questions -- because I'm curious (Albuquerque: for sale, foreclosures)

[wscottling]

As some of you know, I've recently relocated to Albuquerque, and a lot has happened in the four months since I've moved here. The biggest thing is I met someone and moved in with him. Now he's looking to buy a house and he's looking at property in the foothills, above Tramway. Now, I checked out Zillow and there are quite a few houses for sale up there -- esp in the area he's looking at, near I40... Zillow calls it Supper Rock? And some of them have been on the market for a while according to Zillow... some over a year (that's a long time, right?).

I, myself, am not buying anything because I have a part-time job and my credit is crap, but I don't want my guy to buy a money pit or get stuck in a bad situation. I'm also here to say that I know next to nuthin' about real estate and he knows about as much as I do, but the situation I see on Zillow gives me pause. Why are there so many houses for sale up there? Why aren't they selling? They appear to be nice houses and this looks like a nice neighborhood, if a bit removed from everything, but appearances can be deceiving.

As I said, I don't know much about these things, so I'm asking anyone who knows anything about these things to ease my mind. Am I reading too much into it? What gives?

[Poncho_NM]

Originally Posted by wscottling

esp in the area he's looking at, near I40... Zillow calls it Supper Rock? And some of them have been on the market for a while according to Zillow... some over a year (that's a long time, right?).

Why are there so many houses for sale up there? Why aren't they selling? They appear to be nice houses and this looks like a nice neighborhood, if a bit removed from everything, but appearances can be deceiving.

Brief discussion on Supper Rock

Their neighborhood association: http://www.supperrock.neighborhoodassociation.nm.org/

I've seen some houses for sale for two years... There are some good deals out there and probably some bad deals. Lot of foreclosed houses.


Rich

[egolise]

Read up on the national trends in real estate right now. The sales market is tough, while prices are down and interest rates are low people aren't buying houses like they were just a few years ago. Jobs can be less secure, the stock market is up and down, unemployment...

If you have stable income and are looking to stay put for awhile, it's probably a good time to buy a place and get a good deal. Just because houses aren't moving doesn't mean it is neccessarily a money pit or a bad house. Could be priced wrong or the market just isn't moving that area. Again, if you are looking to stay there for some time it could be a good opportunity. Just don't expect to be able to get out without losing $$ in the next few years, you'll have to see where to market goes.

[wscottling]

We're looking to settle down in the area. He's not looking to sell any house he buys in a long time, so there's that. He's looking to buy anywhere in the Northeast Heights, and that area just seemed to have a few houses that we liked. I guess it just puzzled me that there were so many houses for sale up there. But like I said, I don't know much about these things.

[egolise]

Pretty sure this is the case in places all over the country. It's definitely a buyer's market, lots of housing stock out there and as you search you will probably notice that houses seem to drop in price pretty frequently as people are trying to sell.

[CoreLysium]

This all depends on if the banks, as part of the bailout, are being forced to keep the majority of the foreclosures off the market. I don't really know, but if they are to keep trickling them back onto the market the current state will continue. Or if they're dumped for some reason, it'll hit hard.

That said, maybe not there. And maybe it won't turn out, like many foreclosure areas, into a renter area.

[BTreehouse]

heres what I would do. this is only an opinion, thats all

1) It sounds like the only problem or at least uncertainty is being caused by the market.
2) This is not our fault, but the over all management by reality in areas and economic implications including home owner liquidation (selling) trends influenced by ideas which are put into motion in order to protect an expected or hopeful net worth. So its a bit of a greedy game.

3) In truth, everything has a price tag and in real estate a sign is put on the lawn with a formal listing.
In truth as well, regardless of the sign and little activity there is in fact a fair exact value each day.
4) Your job is to play the same game, when in Rome, fight as a Roman.
5) If there was no sign and no listing, then what would the buyer do? The buyer would drive through an area, pick out a home, knock on the door and try to make a deal. I'm not suggesting this, I'm trying to make a point. So the real problem in honesty is the reality third party participation "magnifies" the market whether in a slow, or high sale climate...thats pretty obvious. The only time certainty is possible is when the market is relatively stable. If its hot....the owner sets the price and its sold quickly

..............Therefore

Logically if the market is slow, the buyer sets the price. Don't play the game with the agency and the home owner...simply find something you like and follow these steps.(opinion

a) Check out the history of sales, asking, selling price, how long listed and so on , in the neighborhood
b) Just as an example...asking 135,000.....the last few comparable homes sold for roughly 122.000

Put in an offer of 70,000. The reason is that value is un-known. The only way value can be determined is with stability in sales.... not remote or rare sales. This is important. The buyer calls all the shots. Send a message, continue with offers until you get a deal. Its only a matter of time. Never allow an agent to play you. If a purchase goes through the entire neighbor hood will depreciate further toward your sale price....but that sale price is true value and it will encourage more sales in the area. ( initiating stability

My thinking is that reality as mediator plus greedy home owner(portfolio) etc...is the problem. They want to make money where there is simply no room for the added luxury of representation and the whole market becomes confused. Theres no confusion when you bring your offer forward with 35-50% less then asking. Plus, the buyer should not be un-easy, no way...the buyer is the boss. ( this is opinion but money is money, and quite a bit of this reality issue is caused by panic-greed portfolio incentives...( retirees ...lets sell and buy funds.....don't let them pull the wool over the nations eyes....theyve been doing it for 40 yrs and look at the mess....anybody see pro-rated pensions in difficult times...nope. Its a game with the Alaskan cruise crowd. 50% less to start with a 24 hour limit on acceptence or...no go. Then...try another. ( agents must present all offers....ignore his baloney and say ...thats the deal pal.The buyer is the one sitting back. This is just opinion , thats all. Nothing more.