Do too many "For sale" signs in one neighborhood scare you away? (foreclosure, agent)
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Location: Georgia, on the Florida line, right above Tallahassee
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"They don't hang out signs because they want to be discreet," says Robert Lei, who holds a master's degree in semiconductor device physics but now works as a specialist in foreclosure sales. "They don't want so many people to see so many 'for sale' signs and get scared away, like there's something wrong here."
It's funny how this rings a bell. I mentioned it to my wife when we went looky-looing on a Sunday drive. It's kind of neat when you think about it. Buyers want prices to go down. Foreclosures and short sales cause that to happen. Sellers see a foreclosure as tainting their property values. The more foreclosures in the neighborhood, the lower the price goes....and the more a buyer should want it, per the above logic.
There seems to be a tipping point, though, where the number of "For sale" signs can give you the heebie-jeebies. I know we went through some neighborhoods, and on one street in particluar - say with about 10 houses on each side - I saw 3 for sale. And 2 more on the next street, and 3 more, etc. etc.
I have to admit, I'd hate to be selling a home in that neighborhood.
I also have to admit; That many houses for sale would make me BRAWK!! BRAWK!!! run like a chicken.
Incidently, I didn't know indoor horticulture specialists made 12K a month.
144K a year to take care of houseplants.
I was looking at condos about two and a half years ago and there was one six unit building in a location that I desired so I kept my eye on it to see if anything went up for sale. I saw an ad online for a one bedroom at that address and called to schedule a viewing for a week later.
I drove past the building a few days after making the appointment and saw three For Sale signs on the balconies of three separate units: the one I was looking at, the one immediately next door to that one, and the one above the unit I was looking at. All three were with different real estate agencies.
I got a bad feeling about it and called the agent to express my concern. She said something like "Yeah, I know it looks bad but the building is fine." Still, I couldn't shake the feeling that there was some major issue there, perhaps an problematic owner or something so I cancelled the appointment and kept my eye on the property. I didn't want to fall in love with the unit and become blinded to a potential big problem if there was one lurking somewhere.
After a couple of months, two of the signs came down but were put up again a few weeks later with different real estate agencies yet again.
Not sure whatever happened there but one of the units is still for sale today.
Another thing that wasn't brought up is how about having a lot of "for rent" signs up in the neighborhood..pretty good indicator that FMV has depreciated in that neighborhood where people resort to renting their home to ride it out..also rentals are notorious for not keeping up the homes and yards, tainting that neighborhood even more.
Maybe in the land of Once Upon a Time it would have caused me to hesitate, but in the real estate world of today I don't give it a second thought. Now, the For Rent signs bother me. If I am buying a home I want it to be surrounded by other homeowners who (hopefully) will care about and care for their property.
During the housing boom, multiple "For Sale" signs would keep me away. But it's a sign of the times, now!
I have a house across the street from me that's been on the market for 2 years! Also, there are some newly built "Fedders Homes", originally intended for buying, that aren't even renting!
Not far from where I live, a neighborhood recently had something like every other house in the foreclosure process or in a short sale listing. That looks bad, as if exotic loan borrowers and ill-timed flippers descended upon the neighborhood. That's a red flag for declining property values, non-maintained properties and a bunch of renters.
Too many "for sale" signs compared to neighboring streets/areas make me think:
1. Is there something everyone on this block is trying to move away from?
2. Prices here aren't stable. I'll wait.
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