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Also something to consider, I looked at a few foreclosures and they were trashed inside. Needed around $30k in work themselves and that was on a $150k house.
This happens so often. Why do people feel the need to be destructive, when they are the ones that screwed up?
Quote:
Originally Posted by wheelsup
Homes that were bought for $250k+ were outside what the average population in and around the Triangle could afford.
I would have to disagree with this. Have you checked out the average household incomes in the Triangle? We are WELL below the average household income and can easily afford more than the $250k...........easily.
I would have to disagree with this. Have you checked out the average household incomes in the Triangle? We are WELL below the average household income and can easily afford more than the $250k...........easily.
After household income was around $75k when I looked last.
I showed the house in Crenshaw Hall to clients of mine last week. It was on the market for about 3 days and had 2 offers on it. It is currently listed as "contingent".
The house needed updating but it was a lot of square footage for the money. There is a house in Rolesville that was built by the same builder and is brand new, currently for about $360K so this house at $280K is a deal. We figured it needed about $20,000 to update it, new carpet, paint, etc. but a great deal at the listed price of $280K.
Appraisers are very knowledgeable and will see that this house was a foreclosure and will not use it as a comp.
As for the "foreclosure tour", I think it is a smart move on this Realtor's part to get leads and a possible sale from this. I have no idea what the bus may have cost her but perhaps one sale would take her out of the red and put her right into the black. She had 57 people show up to see these 5 houses, which seems a bit strange to me. Why wouldn't they just call a Realtor or the listing agent and see them by themselves?
Some of the Agents at my office got together a few weeks ago and had a "first time homebuyer's seminar" and got a few good leads from that. It is a win win situation. First time homebuyers who don't have an Agent get the information, they meet a few Agents and find one they want to work with and the Agent gets a potential buyer.
I showed the house in Crenshaw Hall to clients of mine last week. It was on the market for about 3 days and had 2 offers on it. It is currently listed as "contingent".
The house needed updating but it was a lot of square footage for the money. There is a house in Rolesville that was built by the same builder and is brand new, currently for about $360K so this house at $280K is a deal. We figured it needed about $20,000 to update it, new carpet, paint, etc. but a great deal at the listed price of $280K.
Appraisers are very knowledgeable and will see that this house was a foreclosure and will not use it as a comp.
As for the "foreclosure tour", I think it is a smart move on this Realtor's part to get leads and a possible sale from this. I have no idea what the bus may have cost her but perhaps one sale would take her out of the red and put her right into the black. She had 57 people show up to see these 5 houses, which seems a bit strange to me. Why wouldn't they just call a Realtor or the listing agent and see them by themselves?
Some of the Agents at my office got together a few weeks ago and had a "first time homebuyer's seminar" and got a few good leads from that. It is a win win situation. First time homebuyers who don't have an Agent get the information, they meet a few Agents and find one they want to work with and the Agent gets a potential buyer.
Vicki
The home in Crenshaw Hall was built in late 2002 - what kind of updating did it need? This seems more likely for an older home. The interior was featured on the WRAL piece, and I looked at the pictures on the FM website. I also remember touring this home when it was under new.. and it was pretty snappy inside... some custom features.. modern floorplan, etc.
Sure, maybe it didn't have stainless steel appliances.. maybe some designer paint.. but overall it looked to be in very good shape.
It seems possible the investor set the price LOW to dump it as soon as possible....
The home in Crenshaw Hall was built in late 2002 - what kind of updating did it need? This seems more likely for an older home. The interior was featured on the WRAL piece, and I looked at the pictures on the FM website. I also remember touring this home when it was under new.. and it was pretty snappy inside... some custom features.. modern floorplan, etc.
Sure, maybe it didn't have stainless steel appliances.. maybe some designer paint.. but overall it looked to be in very good shape.
It seems possible the investor set the price LOW to dump it as soon as possible....
Well...after someone lived in it for the last 6 years and then it sat vacant for 10 months, it needed updating AND cleaning.
The carpet was terribly STAINED...looked like they had slaughtered hogs in there! The walls looked like someone had thrown drinks against it...red kool aid, perhaps.
The lights were all brass (sorry but no one wants this anymore).
Appliances looked like they had never been cleaned and I can't even say if they worked since the electricity was off.
Was it priced at $280K because it needed all these updates. You betcha!
A great deal for someone, which explains the 2 offers in 2 days.
It is entirely possible that the housing market will not have recovered its previous highs five years from now. Bubbles tend not to be surpassed for decades. The NASDAQ is sitting at about 1440 after hitting 5000 in early 2000. The NIKKEI 225 (Japanese stock market index) is even worse: it is near 7500 after hitting almost 39000 in late 1989. That is an 80+% decline after two decades in one of the worlds strongest economies. Their real estate market followed suit: there was a brief price increase in 2007, but otherwise their real estate has gone downhill since 1990. Do you remember when people were afraid that Japan was going to buy up all of the commercial real estate in the US?
There seems to be a widespread belief that the real estate market will start to recover this year. That is certainly possible, but nobody really knows. It is also possible that real estate will decline or stay flat for decades. Look up the phrase "zombie companies". Japan created them in the early 90s because it feared letting large banks and companies fail; we are creating them now.
"But traditional Keynesian remedies do not work in Japan either - the substantial public spending packages rolled out by Tokyo throughout the 1990s have left the country saddled with the highest debts of any major economy. Worried that the government will not be able to afford to pay for their future pensions, Japan's ageing population prefers to save rather than spend."
Great post. I agree.
I don't really think most home "appreciate". Just a way to sell you something. I never understood this long ago when I first heard the term, but then I understood the location/land value appreciation, but after thinking about it more it seems that prices for homes/goods/precious metals increase with inflation, but don't technically "appreciate". Now that we are in deflation, prices are coming back down to reallity. Homes have been overpriced for some time and you get less and less land with them. Things are only worth what someone is willing to pay too. Think anyones's home in Detroit has appreciated in the last 10 years?
I've seen some homes out in bumf*&&k California that were more like medium sized shacks selling in the $500k range. Thats just insane. You would have to have been a fool to pay that. Same can be said for many other places.
Trying to prop up home values is a really bad idea IMO. More would sell if they let the prices fall to the market price and then inventories would normalize and level out or increase eventually. This bailout is all about the banks, not the homeowners.
Gold was $20 an oz. in the early 1900s and still buys the same amount of goods it did then in todays dollars.
After household income was around $75k when I looked last.
$75k x 3 = $225k house/loan max
Edited for 2008 it was $75k
That looks like it is just for Raleigh, which is only one town/city of many that make up the Triangle. You have to look at more than one area and you also have to factor in that a lot of people make a lot of money and a lot of people don't. It's not like everyone is the same. In my section of Cary the median household income is somewhere around $118,000, whereas the overall Cary median household income is much lower. There are a lot of people that can afford a lot of home. It's so different from where I moved from where pretty much everyone could afford somewhere near the same thing............which is not much.
Here is the link for Cary and according to this, the median household income for all of Cary is $104,858.
Well...after someone lived in it for the last 6 years and then it sat vacant for 10 months, it needed updating AND cleaning.
The carpet was terribly STAINED...looked like they had slaughtered hogs in there! The walls looked like someone had thrown drinks against it...red kool aid, perhaps.
The lights were all brass (sorry but no one wants this anymore).
Appliances looked like they had never been cleaned and I can't even say if they worked since the electricity was off.
Was it priced at $280K because it needed all these updates. You betcha!
A great deal for someone, which explains the 2 offers in 2 days.
Vicki
I looked up the house today and my daughter and I stopped by for a peak on our way to the Y this afternoon.
I could only see the first floor... luckily the blinds were open.. but it looked a lot better than I expected. Much better. Very nice lot backing up to Crenshaw Manor.
There was a medium sized stain in the carpet in the family room, but the first floor hardwoods were in surprisingly good shape. I did notice brushed nickel light fixtures (but why brass on the hinges and doorknobs)? The interior needed painted but it looked more like normal wear and tear . I guess some of the terrible paint stains are upstairs? Two story foyer (something that I really hate). Black appliances with the upgraded St. Lawrence gourmet kitchen (a little small for such a large home)It didn't have granite.. but rather the granite knockoff that was so popular a few years ago. Outside needed painted, but it does have a brick front. Some rotted wood out back.
Again, I didn't see the upstairs.. but from what I could see the house was NOT in terrible shape. I was expecting holes in the carpets... torn up hardwoods.. fixtures MISSING, holes in the walls and carpet, cabinets hanging by their hinges, garbage all over the place.. etc. etc... meaning really trashed !!! Again, I didn't see the upstairs of this home.. but I did see dustbunnies galore.. can somebody say DUSTPAN??
I have a hard time thinking an old fashioned cleaning falls under the category of needing updates ! Give me 20 minutes with a Swiffer and those hardwoods would have looked practically brand new..
I think it was priced at $280,000 so it would sell very quickly. Get it off the investor's books as more F/C homes come on the market. Yes, a great deal for someone !!! I wish I could buy it !!! I hope the new owners are able to petition Wake County for a tax reduction.. as they will be paying taxes based on a $400,000+ tax value !!!!
Vicki, I value your opinion.. I just can't get it out of my head that this home was considered in dire need of updates & this justified an asking price that is close to $100,000 less than it sold for several years ago. Maybe I'm not reading wake.gov correctly... or maybe the issue is with the neighborhood.. I don't know..
What will happen when the next F/C home comes along? How low can we go??
Last edited by weluvwakeforest; 02-22-2009 at 08:51 PM..
I looked up the house today and my daughter and I stopped by for a peak on our way to the Y this afternoon.
I could only see the first floor... luckily the blinds were open.. but it looked a lot better than I expected. Much better. Very nice lot backing up to Crenshaw Manor.
There was a medium sized stain in the carpet in the family room, but the first floor hardwoods were in surprisingly good shape. I did notice brushed nickel light fixtures (but why brass on the hinges and doorknobs)? The interior needed painted but it looked more like normal wear and tear . I guess some of the terrible paint stains are upstairs? Two story foyer (something that I really hate). Black appliances with the upgraded St. Lawrence gourmet kitchen (a little small for such a large home)It didn't have granite.. but rather the granite knockoff that was so popular a few years ago. Outside needed painted, but it does have a brick front. Some rotted wood out back.
Again, I didn't see the upstairs.. but from what I could see the house was NOT in terrible shape. I was expecting holes in the carpets... torn up hardwoods.. fixtures MISSING, holes in the walls and carpet, cabinets hanging by their hinges, garbage all over the place.. etc. etc... meaning really trashed !!! Again, I didn't see the upstairs of this home.. but I did see dustbunnies galore.. can somebody say DUSTPAN??
I have a hard time thinking an old fashioned cleaning falls under the category of needing updates ! Give me 20 minutes with a Swiffer and those hardwoods would have looked practically brand new..
I think it was priced at $280,000 so it would sell very quickly. Get it off the investor's books as more F/C homes come on the market. Yes, a great deal for someone !!! I wish I could buy it !!! I hope the new owners are able to petition Wake County for a tax reduction.. as they will be paying taxes based on a $400,000+ tax value !!!!
Vicki, I value your opinion.. I just can't get it out of my head that this home was considered in dire need of updates & this justified an asking price that is close to $100,000 less than it sold for several years ago. Maybe I'm not reading wake.gov correctly... or maybe the issue is with the neighborhood.. I don't know..
What will happen when the next F/C home comes along? How low can we go??
I guess I'd suggest you not take my statements so personally and I'm a bit confused as to why you did. I don't mean this to sound like I'm against you, in any way.
First of all, there is no way on earth that I nor anyone that I know would live with this carpet. You may have only seen one stain but the only carpet downstairs IS in the family room. The upstairs carpet, along with the carpet in the family room is NASTY. Perhaps my version of nasty is different from yours but I have 4 kids, 2 cats, 1 dog and 1 husband and I've NEVER had carpet that looked like that. NEVER.
The lot IS great. The n'hood IS great. The house, in better shape, would sell for at least $365 or more in Crenshaw Hall. I sold the house two doors' down so I know what the pricing in the n'hood should be.
The hardwoods are in pretty good shape.
The stove appeared to have never been cleaned. And my buyers ARE picky and would change the appliances in ANY home that they buy if they are not stainless. They will add granite. THAT is what I mean by updating. To get this house back in shape, as it should be, compared to NEW, was what MY CLIENTS wanted.
I'm NOT saying the low list price was JUSTIFIED. It was outrageously LOW. The listing agent (I spoke with him) got the bank to list it low, hoping to have a bidding war, which they may have had. When I spoke with him on the 2nd day, he had 1 offer and was waiting for another.
Again, I'm not sure why you are taking this so personally. Did you know the folks that lived in the house? Did you feel that I was attacking them? I wasn't. I know them. The house was vacant for 10 months. There was enough dust in there to stuff a pillow but again, I'm not sure I understand your point.
I guess I'd suggest you not take my statements so personally and I'm a bit confused as to why you did. I don't mean this to sound like I'm against you, in any way.
First of all, there is no way on earth that I nor anyone that I know would live with this carpet. You may have only seen one stain but the only carpet downstairs IS in the family room. The upstairs carpet, along with the carpet in the family room is NASTY. Perhaps my version of nasty is different from yours but I have 4 kids, 2 cats, 1 dog and 1 husband and I've NEVER had carpet that looked like that. NEVER.
The lot IS great. The n'hood IS great. The house, in better shape, would sell for at least $365 or more in Crenshaw Hall. I sold the house two doors' down so I know what the pricing in the n'hood should be.
The hardwoods are in pretty good shape.
The stove appeared to have never been cleaned. And my buyers ARE picky and would change the appliances in ANY home that they buy if they are not stainless. They will add granite. THAT is what I mean by updating. To get this house back in shape, as it should be, compared to NEW, was what MY CLIENTS wanted.
I'm NOT saying the low list price was JUSTIFIED. It was outrageously LOW. The listing agent (I spoke with him) got the bank to list it low, hoping to have a bidding war, which they may have had. When I spoke with him on the 2nd day, he had 1 offer and was waiting for another.
Again, I'm not sure why you are taking this so personally. Did you know the folks that lived in the house? Did you feel that I was attacking them? I wasn't. I know them. The house was vacant for 10 months. There was enough dust in there to stuff a pillow but again, I'm not sure I understand your point.
Vicki
Vicki,
I don't know the previous owners.
No, I don't feel you are attacking the previous owners or me !
I'm just very nervous about the economy, the Raleigh housing market , falling home prices, etc.
Thanks for sharing your thoughts !
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