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Yeah we initially tried to bid on a foreclosure. What a nightmare. Thankfully we didn't sink any money into the process before deciding it wasn't worth the trouble. I noticed the other day that someone has moved into the house so good for them for putting up with the bank's bs. They got a steal for the neighborhood it's in.
Last edited by evaofnc; 01-06-2012 at 07:53 AM..
Reason: a
I am definitely no expert but we have noticed, over the past 8 months of searching for a home in the triangle, a HUGE increase in "short sale" listings.
Our agent agrees that this has shot up dramatically in the past few months.
We, as a rule, don't bother even looking if it is a short sale. It's just not worth the headache.
I know they say its a great deal and all but how can that be if its not the price that it is listed for? Sounds more like false advertising.
I have no patience with "this is the price" "oh wait, no it's not" and all the time and emotional expenditure that comes with these ventures.
Personally, I think the greedy mortgage companies are only screwing themselves in the long run. Just TELL ME the REAL price and I won't waste anyone's time... I'm a big girl and I know my budget. It's a tease to think one can purchase something that inevitably is out of our price range. It would be faster and better for the market to have buyers searching what they might actually purchase.
They should just auction the property in one fell swoop with a set starting amount if they just want to wait for the highest bidder instead of having this glut on the market.
Ok, we as a society have done it to ourselves with our irresponsible lifestyles, granted, but still.
-wow, I kinda got lost on a tangent there
dilaurorn, I totally agree with you. It was the same issues we had when looking at short sales and foreclosures. Just way too much hidden crap. And of course you're usually buying "as is" which can turn into a nightmare. Friends of ours bought a foreclosure in Raleigh just before the FHB tax credit expired. They said they got a "great deal", especially with the credit, but they ended up having to sink $30k into the house just to make it livable! To give you an idea, they found out from their neighbors the people living there before them were burning cardboard and newspaper in their fireplace just for heat. You can kind of imagine what the rest of the place looked like when the people obviously had no money for upkeep. So once you take into consideration that, they actually ended up paying much more per sqft than comps in the neighborhood.
With each new drop in umemployment, we may see increase in foreclosures. People run out of unemployment--drop off the roles--lower the UE rate--increase foreclosure as they can no longer make the mortgage.
This is not correct - people who run out of benefits are still included in the unemployment rate.
I am definitely no expert but we have noticed, over the past 8 months of searching for a home in the triangle, a HUGE increase in "short sale" listings.
Our agent agrees that this has shot up dramatically in the past few months.
We, as a rule, don't bother even looking if it is a short sale. It's just not worth the headache.
I know they say its a great deal and all but how can that be if its not the price that it is listed for? Sounds more like false advertising.
I have no patience with "this is the price" "oh wait, no it's not" and all the time and emotional expenditure that comes with these ventures.
Personally, I think the greedy mortgage companies are only screwing themselves in the long run. Just TELL ME the REAL price and I won't waste anyone's time... I'm a big girl and I know my budget. It's a tease to think one can purchase something that inevitably is out of our price range. It would be faster and better for the market to have buyers searching what they might actually purchase.
They should just auction the property in one fell swoop with a set starting amount if they just want to wait for the highest bidder instead of having this glut on the market.
Ok, we as a society have done it to ourselves with our irresponsible lifestyles, granted, but still.
-wow, I kinda got lost on a tangent there
I am with you on the short sale BS! I have gone so far as to call our MLS folks and ask if it is even LEGAL for a listing agent to list a short sale home for $100,000 when they KNOW the bank won't accept less than $150,000! Seems like a bait and switch tatic to me too!
In this area, it seems that the short sales are taking about 3 months for the bank to get back to you after you submit an offer. It takes another 3 months to get most of them closed and some can take as long as 9 months to a year to close.
I don't even bother with them because most of my clients want a place to live NOW, not next year!
Foreclosures are another story, to me. I don't mind them, at all. Some have lots of problems but mostly you can see them when you view them. If the buyer doesn't have money to do the repairs and you can't get an FHA loan, with funds to do repairs, you don't make an offer!
With foreclosures, you are buying "as is" but you get a 10 day inspection period. If you decide after your inspections that you don't want the property, you can get your earnest funds back and walk away. You are only out the cost of the inspections.
However, even though you are buying the home "as is", many of the foreclosure companies WILL do certain repairs (termites, etc.). I just had a foreclosure company pay $8510.00 to do repairs on a home, including putting in a brand new HVAC system since the old system was 20 years old and having problems.
Good thread. I'm glad to hear that many people won't bother looking at short sales. The problem for me is a rental home I'm about to put on the market which has a competing, identically sized home 2 doors down listed for a ridiculously low price (well below market value) and needs a ton of repair. I've spent $10k refurbishing mine to be better than new, but my asking price is well above the short sale listing price, even though as many people said, that doesn't mean you can actually get the house for that much.
I hope we don't have people trying to lowball because of that stupid short sale 2 doors down!
I have noticed a lot of new or renewed building activity. I can't help but scratch my head and wonder what it is these developers are seeing that I am not.
I've noticed a lot of building activity in Bedford in North Raleigh. Several homes have been built in the past few month. To my surprise they each had a "Sold" sign in the yard before even being completed and most already have cars in the driveways and curtains on the windows. There is even a "Sold" sign in front of what use to be the welcome center model house at the entrance to the community.
I've noticed a lot of building activity in Bedford in North Raleigh. Several homes have been built in the past few month. To my surprise they each had a "Sold" sign in the yard before even being completed and most already have cars in the driveways and curtains on the windows. There is even a "Sold" sign in front of what use to be the welcome center model house at the entrance to the community.
Many of my clients prefer a brand new home. With the banks being tight and not giving builders too much cash, many builders can only build one or two spec homes. Therefore, finding a brand new home, finished and ready to move in to isn't as easy as it once was.
December and January are usually less busy times for Realtors and builders but I am seeing many Agents from my office, out showing homes and buyers ARE buying. Maybe it has to do with the interest rate being around 4% but people are buying homes.
Many of my clients prefer a brand new home. With the banks being tight and not giving builders too much cash, many builders can only build one or two spec homes. Therefore, finding a brand new home, finished and ready to move in to isn't as easy as it once was.
December and January are usually less busy times for Realtors and builders but I am seeing many Agents from my office, out showing homes and buyers ARE buying. Maybe it has to do with the interest rate being around 4% but people are buying homes.
Vicki
Vicki, how do your buyers react to "like new" homes such as in my case where everything inside is new (carpet, vinyl, all light fixtures, paint, etc)? It shows like new, with the exception of maybe the kitchen appliances not being right out of the box?
Good thread. I'm glad to hear that many people won't bother looking at short sales. The problem for me is a rental home I'm about to put on the market which has a competing, identically sized home 2 doors down listed for a ridiculously low price (well below market value) and needs a ton of repair. I've spent $10k refurbishing mine to be better than new, but my asking price is well above the short sale listing price, even though as many people said, that doesn't mean you can actually get the house for that much.
I hope we don't have people trying to lowball because of that stupid short sale 2 doors down!
Based on what I have seen in talking to neighbors, unfortunately you will have some people who think the short sale list price down the street is the starting point and try to offer below that $/sf for yours.
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Short sale BS
