Each month I discuss how the market fared in the past three years in areas I specialize in. I try to let people know the trends that are happening in the areas and how prices have been affected by the economic situation.
Crestdale Crossing in Matthews North Carolina has seen a trend shifting in the opposite direction for the past three years in volume of sales. Ironically though people are staying in the community. There is fewer homes on the makrket now than ever before in this 110 home subdivision in Matthews.
Three years ago homes in here were sellign at a rapid pace. From June of 2007 to June of 2008 there were 16 home sales at an average price of $129475. Homes were on the market for an average of 77 days then.
Two years ago there were only 6 home sales. The average price of those homes was $129650. They lasted on the makrket for 26 days on average.
last year there were 4 home sales. The average price of the homes was $126,000. They were on the market for an average of 93 days.
The trends this month for year to date numbers seems to be tracking well with the numbers for May. Home sales have stabilized in the neighborhood. People are staying here and not moving as much.
Currently there are 4 homes on the amrket which based on last years numbers is a 12 month supply of homes for sale.
Dave dicecco
Realtor/Broker
www.davedicecco.com
Thursday, June 10, 2010
Monday, June 7, 2010
Foreclosure? A Great Deal...
Lately I have noticed an influx of buyers asking em the same question. "I want to look at a foreclosure because I can get it signifcantly less than other homes in the same area". Well that may not be as true as it once was.
Banks have been taking a huge financial hit to their bottom lines on foreclosed homes. The cost involved to get the home foreclosed and market it is proving to be economically unsound. And in addition, if the home is not priced significantly below market value people are not looking at them. I have noticed a trend in two different avenues right now.
First, I noticed more and more banks are accepting applications for a short sale. They are letting the homeowner know they are going to work with them to help get the house sold before it goes to foreclosure. It is a win win situation for everyone. A short sale alleviates the bank form the unnecessary costs involved in foreclosing on the home and maintaining it while they sit and wait for an offer to come in. For the homeowner they get to stay there until it is sold and the impact on their credit is not as severe as a foreclosure would be.
Second, banks are beginning to repair and fix homes before selling them. In the past when a bank took over a home through a foreclosure it simply used one of their Realtors and had them put a sign in the ayrd and put it on the world wide web for X amount fo dollars. gradually they lower the price until someone bought the house. The home was sold in "as is " condition and the bank did nothing to help the resale of the home.
Well the times seem to be changing in the Charlotte area at least. I had the home next door to me go to foreclosure. Fannie Mea ended up with the home. Structurally the home was in great shape. Cosmetically it needed some work. nothing though that a new stove, some paint and new carpet could not fix. Well, Fannie Mea did all of that to the home. Now the home shows like it is a model home. Thus they are asking and received an offer for fair market value for the home in the neighborhood.
So, looking for a foreclosure and thinking you are goign to get a great deal. You are. the wquestios is that is the deal goign to be in the repairs done to the home for you or in the price fo the home.
Dave diCecco
Realtor/Broker
www.davedicecco.com
Banks have been taking a huge financial hit to their bottom lines on foreclosed homes. The cost involved to get the home foreclosed and market it is proving to be economically unsound. And in addition, if the home is not priced significantly below market value people are not looking at them. I have noticed a trend in two different avenues right now.
First, I noticed more and more banks are accepting applications for a short sale. They are letting the homeowner know they are going to work with them to help get the house sold before it goes to foreclosure. It is a win win situation for everyone. A short sale alleviates the bank form the unnecessary costs involved in foreclosing on the home and maintaining it while they sit and wait for an offer to come in. For the homeowner they get to stay there until it is sold and the impact on their credit is not as severe as a foreclosure would be.
Second, banks are beginning to repair and fix homes before selling them. In the past when a bank took over a home through a foreclosure it simply used one of their Realtors and had them put a sign in the ayrd and put it on the world wide web for X amount fo dollars. gradually they lower the price until someone bought the house. The home was sold in "as is " condition and the bank did nothing to help the resale of the home.
Well the times seem to be changing in the Charlotte area at least. I had the home next door to me go to foreclosure. Fannie Mea ended up with the home. Structurally the home was in great shape. Cosmetically it needed some work. nothing though that a new stove, some paint and new carpet could not fix. Well, Fannie Mea did all of that to the home. Now the home shows like it is a model home. Thus they are asking and received an offer for fair market value for the home in the neighborhood.
So, looking for a foreclosure and thinking you are goign to get a great deal. You are. the wquestios is that is the deal goign to be in the repairs done to the home for you or in the price fo the home.
Dave diCecco
Realtor/Broker
www.davedicecco.com
Friday, June 4, 2010
Considering A Short Sale? Check The Price....
I just got done negotiating on a short sale listing. The listing agent offered the home for 35% LESS than the average home had sold for in that neighborhood in the past 90 days. It was over 40% LESS than the asking prices of the comparable homes in the area. So, the next questions is how much work did it need? NONE.
In today's market short sale and bank owned homes have become more prevalent than ever before in this country. So, what as agents are we doing to separate our homes form the competition? I have noticed a trend since the tax credit expired at the end of April. Less people are out looking at homes than before. This means we have fewer people competing for the same number of homes right now.
Banks can decide how much they want to sell a home for and lower their prices accordingly. When you look at a home listed for sale that si bank owned you can rest assured if you offer them that price and you are the only person with an offer at that time you will get an acceptance on your offer.
On the other hand, when you negotiate on a short sale the game is completely different. The sale price si decided upon by the listing agent and the seller. In most cases the asking price is fair market value for the home based on the condition of the home. However; what if there are no offers on the home? What if the seller is in danger of losing the home to foreclosure?
Then the listing agent will generally lower the price down significant enough to drive traffic to the home and get an offer on the home. But will the bank accept the offer? Depends on the price and the fair market value of the home. Each bank has their guidelines they use to determine what is an acceptable price to accept on a particular home.
Today, i have noticed many homes that are now priced as much as 40% BELOW market value. Knowing that the bank will probably not accept that number; the buyer still wants to put an offer in on the home. Then wait three weeks or longer (depending on the bank) to receive an answer back as to whewther they will accept the offer or not.
You could wait a month or longer to find out the bank wants substantially more than you originally offered for the home and are back to square one. Today, unfortunately it is becoming more the norm for homes to be priced low to attract an offer rather than get the home sold.
My advice is have your agent check the comparable in the neighborhood. See what they are asking for the home in comparison to what has sold. If it is too good to be true then chances are it is.... You now have lost a month or so from the market and your dream home may have come and gone in that time frame.
Dave diCecco
Realtor/Broker
www.davedicecco.com
In today's market short sale and bank owned homes have become more prevalent than ever before in this country. So, what as agents are we doing to separate our homes form the competition? I have noticed a trend since the tax credit expired at the end of April. Less people are out looking at homes than before. This means we have fewer people competing for the same number of homes right now.
Banks can decide how much they want to sell a home for and lower their prices accordingly. When you look at a home listed for sale that si bank owned you can rest assured if you offer them that price and you are the only person with an offer at that time you will get an acceptance on your offer.
On the other hand, when you negotiate on a short sale the game is completely different. The sale price si decided upon by the listing agent and the seller. In most cases the asking price is fair market value for the home based on the condition of the home. However; what if there are no offers on the home? What if the seller is in danger of losing the home to foreclosure?
Then the listing agent will generally lower the price down significant enough to drive traffic to the home and get an offer on the home. But will the bank accept the offer? Depends on the price and the fair market value of the home. Each bank has their guidelines they use to determine what is an acceptable price to accept on a particular home.
Today, i have noticed many homes that are now priced as much as 40% BELOW market value. Knowing that the bank will probably not accept that number; the buyer still wants to put an offer in on the home. Then wait three weeks or longer (depending on the bank) to receive an answer back as to whewther they will accept the offer or not.
You could wait a month or longer to find out the bank wants substantially more than you originally offered for the home and are back to square one. Today, unfortunately it is becoming more the norm for homes to be priced low to attract an offer rather than get the home sold.
My advice is have your agent check the comparable in the neighborhood. See what they are asking for the home in comparison to what has sold. If it is too good to be true then chances are it is.... You now have lost a month or so from the market and your dream home may have come and gone in that time frame.
Dave diCecco
Realtor/Broker
www.davedicecco.com
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