Realestate Buyers need to Hold the line (Alexandria, Lynchburg: short sale, real estate)

[CarolVa1977]

I am holding till the end of the year. Just found out it is going to cost me almost 4k to break the lease.

[Gottasay]

Property tax records are very helpful in that respect as you can find out what comps actually sold for from the comfort of your own home. Then again, when I go to sell my house, I'll wish they were never made so accessible, lol.

[smagid]

Originally Posted by jillabean

I am house shopping too. I've found communities I like. The only thing that scares me is the lack of inventory in the places I like--I am pretty much waiting for stuff to come on the market. I am hoping things will pick up in the Spring. I am in no hurry either since I really rather time things so I move after the school year is over.

I am a bit wary of short sales though (I won't consider them). I heard you can wait months and months and still not get the house while you wait on the occupants and the banks. If anyone's had a different experience, let me know. I'd consider a foreclosed house, but it has to be in decent shape (I don't mind some fixer-upping, but I have a limit unless the house is dirt cheap).

We have successfully closed many short sales on both the listing and buying side. With that said, each one is different. A short sale can be approved anywhere from 10 days if its part of the HAFA program or months down the road or in some cases not close at all. The majority of them on average get an approval within 60-90 days from contract. When working on these sales we always ask alot of questions to learn about the particular situation. Most short sales are sold as-is without any repairs although we've had a few lately where the seller is able to do some repairs that have come up during inspections/appraisals.

[hilsmom]

Originally Posted by CarolVa1977

where are you people planning to buy. I can only afford in PW County

I had a thread going on my requirements...IF we are still in the area AND my husband agrees to stay for 5+more years. We're trying to stay below $400K with $450K likely our max. We have a TH to sell in North Point Reston area and are hoping to walk away with a decent profit since we bought in 2003 and the prices still remain a decent amount higher than what we owe.

[LynchburgLover]

Congratulations to the buyers holding the line.

Guess what? The sellers are also holding the line and they actually live in a house, get mortgage deductions and are not throwing money away on rent.

So . . . we have a stand-off . . . and until BOTH sides give a little, the housing market will never recover. The only way the economy is going to turn around is if money starts changing hands.

[Middlin]

For instance one neighborhood I have been watching has had several homes sell over the winter. Nothing over $410K and most around or under $400K. Today's fresh listing of a similar home is priced at $475K.

Well, good luck to that seller b/c since the buyer will have to cough up the difference since the bank will not loan if the comps come back a lot lower.

[hilsmom]

I think some sellers are unrealistic...as are some buyers.

But I am going to optimistically predict a WONDERFUL spring and summer season in the DC area, based on rumblings I have heard amongst friends, neighbors, etc. Lots of pent-up demand out there.

[jillabean]

Originally Posted by LynchburgLover

Congratulations to the buyers holding the line.

Guess what? The sellers are also holding the line and they actually live in a house, get mortgage deductions and are not throwing money away on rent.

So . . . we have a stand-off . . . and until BOTH sides give a little, the housing market will never recover. The only way the economy is going to turn around is if money starts changing hands.

This is true... you can't expect people to go too low or else they won't sell (unless they have to... in which case the homes probably wont' be in the best of shape anyway).

In my case, there just isn't anything in the neighborhoods I am looking at that fit my needs, in any price range! And there are houses that I like in these neighborhoods... they just aren't for sale (which is why I am hoping for Spring).

[jillabean]

Originally Posted by smagid

We have successfully closed many short sales on both the listing and buying side. With that said, each one is different. A short sale can be approved anywhere from 10 days if its part of the HAFA program or months down the road or in some cases not close at all. The majority of them on average get an approval within 60-90 days from contract. When working on these sales we always ask alot of questions to learn about the particular situation. Most short sales are sold as-is without any repairs although we've had a few lately where the seller is able to do some repairs that have come up during inspections/appraisals.

Thanks! Maybe I will look into short sales then, at least it gives me more to look at. But I am still a bit wary of them.

[tigger37708]

Originally Posted by LynchburgLover

Congratulations to the buyers holding the line.

Guess what? The sellers are also holding the line and they actually live in a house, get mortgage deductions and are not throwing money away on rent.

So . . . we have a stand-off . . . and until BOTH sides give a little, the housing market will never recover. The only way the economy is going to turn around is if money starts changing hands.

I will agree we currently have a sort of standoff because prices have been somewhat stable for the last month or two and not falling.

But make no mistake, its the buyers who are in control.

Sellers are being foreclosed on and are walking away from their homes with strategic defaults.
This imbalance in the market swings the power to the Buyers.

We know the Banks are sitting on a huge shadow inventory of homes that are in default, That they delay the actual foreclosure so they don't have to show the bad loans on their books.

We know that there are profound tax advantages to a Seller who Sells short before the end of 2012. So there are many more Strategic defaults coming.

We as buyers need to protect ourselves by not paying too much for a home now.
We know that there is more pain in the real estate market ahead.
We can tolerate a slight dip if we are planning on staying in our home for a long time.

In my case its merely my desire to get settled that has me looking to buy right now.

And I can say this without fear of successful contradiction.
The real estate market won't recover until the shadow inventory of foreclosures has been absorbed by the market.
I would say that cant begin to happen until at least 2013.