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Stick to your market that you know. This entire neighborhood is approx a 4 year old community. That's just how they build houses out our way, within arm length of each other. Chuck knows. He lives in one too like me. I have a nice big landscaped yard oasis though.
here is another one. This home is another big-un. It is 4148 sq/ft and also has 5 beds and 4.5 baths. This one is still in diapers at just over one year old. It was bought in Feb 2007 for $660k and it's already gone back to the bank. It's currently listed for $385k. Now don't get too excited the previous owners did take a few of the kitchen cabinets. Doesn't look that bad though, probably $5k to replace the missing cabinets.
Well, I would think one of the things buyers are also looking at is months of inventory (MOI). With the mass amounts of foreclosures in the market, MOI has slowly creeped up even with a growth in sales.
Likewise, median prices have dropped up to 50-60+% in some areas because of these sales. But, what exactly constitutes this mass surge of inventory may surprise a lot of you. Foreclosures might be deeply discounted... but most aren't nearly in shape to be considered a "dream" home. A house that looks good on paper... might end up looking like:
In the end, blocks of these rundown, unlivable, dilapidated lots might just end up bulldozed or refurbished by cities for affordable housing. When that happens, we'll see how inventory numbers and median prices go.
-chuck22b
I know top buyers are HOPING these house are bulldozed down to reduce inventory, but it just shows the lack of imagination. That home makes a good meth lab, adult entertainment parlor, slum rental, etc. Townships, as they get increasingly desperate for tax revenue, may loosen some of the regulations associated with homeownership. House borderline condemned? No problem! Better some property tax money than none.
That's what I said up above. The only damage was some missing cabinets. What? 3-5k to replace? My point is a 1 year old home over 4000 sq ft for the price some people have recently paid for a condo in the Preserve. And both communities are within a couple miles of each other. WOW!
I know top buyers are HOPING these house are bulldozed down to reduce inventory, but it just shows the lack of imagination. That home makes a good meth lab, adult entertainment parlor, slum rental, etc. Townships, as they get increasingly desperate for tax revenue, may loosen some of the regulations associated with homeownership. House borderline condemned? No problem! Better some property tax money than none.
"For cities with shrinking populations, like Cleveland and Detroit, officials are also demolishing run-down homes, turning the land into small parks, side yards, and refurbished homes. Boston not only fixes up the foreclosed homes it buys at a bargain, but also beefs up street cleaning and police patrols in the targeted neighborhoods. Michigan is land-banking thousands of properties, gradually selling them to developers or finding other uses for the land."
And most of this has happened pre-housing bill. Once the cities and munis receive the millions from the housing fund, there will be more cases of cities refurbishing/demolishing foreclosed homes. Especially the foreclosures/properties that no body wants to buy even at steep discounts.
That's what I said up above. The only damage was some missing cabinets. What? 3-5k to replace? My point is a 1 year old home over 4000 sq ft for the price some people have recently paid for a condo in the Preserve. And both communities are within a couple miles of each other. WOW!
That's just the kitchen... and only what can be seen in that picture... if the previous owner did that to just the kitchen, I can't imagine what happened to the rest of the house.
The foreclosures we saw had holes in the wall, fixtures ripped out, mirrors busted, nails shot throughout (i guess they had fun with a nail gun), water damage, and basically felt like a scene from a serial killers house in silent of the lambs kind of thing. Not to mention... the smell.
Not to say the least, my sister and I booked the h@ll out of all of the homes we saw in that shape. We felt dirty... and had the chills. It's creepy and sad what happened in those homes.
"For cities with shrinking populations, like Cleveland and Detroit, officials are also demolishing run-down homes, turning the land into small parks, side yards, and refurbished homes. Boston not only fixes up the foreclosed homes it buys at a bargain, but also beefs up street cleaning and police patrols in the targeted neighborhoods. Michigan is land-banking thousands of properties, gradually selling them to developers or finding other uses for the land."
And most of this has happened pre-housing bill. Once the cities and munis receive the millions from the housing fund, there will be more cases of cities refurbishing/demolishing foreclosed homes. Especially the foreclosures/properties that no body wants to buy even at steep discounts.
Basically, this family reduced their cost from 3,400 to 1,200 by simply walking away then renting and got a bigger house out of the deal. Guess the tax benefit and the "warm fuzzies" of homeownership don't really compute well on this transaction . I'm sure the neighbors aren't far behind him.
So, basically, a market will likely begin with investors buying these REO foreclosures and renting them either to their former "owners", or to other people who are foreclosed on. No one is going to be homeless.
These houses won't be bulldozed for the most part. It costs money to do so (which the city will be short of in the coming months/years), and to remove the debris. It's much more profitable (less loss really) to sell the house for 10 cents on the dollar on the existing mortgage.
'That's just the kitchen... and only what can be seen in that picture... if the previous owner did that to just the kitchen, I can't imagine what happened to the rest of the house.'
I checked that one out myself during lunch because even I a 'doom and gloomer' sees the opportunity. that was the only damage. I think the stereotype of the gutted out foreclosure is just that, a stereotype. Not all that walked away are bad people Chuck.
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. I'm sure the neighbors aren't far behind him.
