Foreclosure for Sale! Sure they are out there but are people really buying them?

Posted on March 6, 2009 by hankbailey

For months now all we hear is how many foreclosures are happening “all around us.” RealtyTrac.com for example has made a huge amount of money focusing on nothing but foreclosures. Six out of their last nine press releases have dealt with foreclosure activity in and around the United States. You hit the “Why Join?” tab and it takes you to a 7-day free trial where it is indicated that you would be provided with unsurpassed foreclosure data including access to make an offer directly to the lender.

My question has been, while foreclosures are prevalent, are we buying them? I mean all the property “virgin” shows on HGTV lately have shown young first-time home buyers offering “full price or better” on foreclosures in order to get a deal on that home being sold “as-is.” We Americans must be buying these homes in mass, right?

According to the NAR’s Profile of Buyers and Sellers for 2008, no we’re not. According to the study it showed that only 6% of homebuyers bought a property in foreclosure in 2008. Of first-time homebuyers it was a tad higher at 7%, but on the whole the study showed that 56% of homebuyers did not even consider a foreclosure in their home buying plans.

Of the 38% that did consider buying a foreclosure, 21% could not find the right home, 12% each found the process too difficult or the home was in poor condition. Poor financing options accounting for another reason that the foreclosure sale did not happen or the home was in an undesirable neighborhood.

What I really find humorous was that 5% of buyers found the “price was too high” on the foreclosed property for resale! You would think that in buying a foreclosure you are getting a “deal,” but not always. I had a situation like this in our area where a buyer client wanted to consider a foreclosure, but there were two offers on the table and the bank was treating it as basically an auction where Realtors were asked to fax offers to a central number where they bank would take the best offer. The price needless to say got bid up so high my client found a beautiful home he ended up buying from a seller who had this home on the market for over a year, was in great shape, and he even got a home warranty out of it.

In the end, you hear conflicting information from the national media. I just don’t think the numbers stack up in their favor. I still find that a buyer would rather deal with a seller who is not a cold, “only care about the numbers,” bank.

If you are looking to purchase a home in the Greater Athens area, please feel free to use this link to Search the Athens MLS! While on the Georgia MLS you can search for homes, create a User account to save favorite property searches, email property searches to friends and family, or request more information!

The link to my Featured Properties can take you to any number of properties that I am Marketing currently for Sale.

Taking the Long Out of the Short

For many sellers the “short” sale process is anything but; it can be much more tedious than the phrase implies. Realtors® say the extensive delay in the short sale process has caused many buyers to go elsewhere, forcing many sellers into foreclosure.

Now the U.S. government is stepping in to help homeowners facing foreclosure by streamlining the process for short sales and deeds-in-lieu of foreclosure. The U.S. Treasury recently announced new incentives under the Making Home Affordable Program to encourage the quick private sale or voluntary transfer of property, which will save homeowners money and help many of them protect their financial futures.

Best Laid Plans

From my own experience, and from talking to other Realtors® to get their insights into short sales in today’s real estate market, it seems that we all have the same client experiences. The short sale process and outcomes regarding these transactions, for both buyers and sellers are still as tiresome as ever.

It still takes time, and time is what most buyers don’t feel they have to provide due to the fact that there is still roughly 10 months of inventory for sale. Especially this time of year, buyers are trying to get situated before school starts back. The desire is for a quick purchase and to move to settle in before the fall of the year. Short sales delay this process for weeks whereas a bank owned foreclosure resale can be something negotiated with the bank after the foreclosure and be handled in a relatively short period of time.

Statistics - Foreclosure Resales in Athens; Y-T-D 2009 (66 listings)
	Low	High	Average	Median	Total
List Price	$11,900	$395,000	$120,163	$107,450	$7,930,750
Selling Price	$9,200	$330,000	$112,506	$105,501	$7,425,374
List/Sold(%)	74.07%	122.18%	94.82%	95.21%	--
Price/SqFt ($)	$0.00	$194.15	$46.16	$47.50	--
Days on Market	22	682	152	92.5	--

If you are a buyer in our market, these are probably the best buying conditions in 30 years! If you would like to search the Athens MLS with MapTracks please take a look at listings in our “Classic City” today! On this web MLS search solution you can search every listing on the Georgia MLS for the Greater Athens area or in your Georgia town!

“Pending Home Sales” Show an Increase; Housing Affordability Improves

Posted on June 2, 2009 by hankbailey

The Pending Home Sales Index, an index based upone properties under contract for sale in April rose almost seven percent to 90.3 from March says the NAR.

NAR chief economist Lawrence Yun said, “Buyers are responding to very favorable market conditions. Housing affordability conditions have been at historic highs, but now the $8,000 first-time buyer tax credit is beginning to impact the market,” he said. “Since first-time buyers must finalize their purchase by November 30 to get the credit, we expect greater activity in the months ahead, and that should spark more sales by repeat buyers.”

NAR President Charles McMillan said that there are numerous buyer assistance programs at this time to interested home buyers and especially to first time home buyers. “Some states are offering bridge loans that allow first-time buyers to use the tax credit for down payment and closing costs, but there are many other local government and nonprofit programs available to buyers, depending on location,” he said.

“Just last week, HUD announced that qualifying buyers can use the tax credit for closing costs on FHA loans, to buy down the interest rate or make a larger down payment. Buyers who are wondering about their options should contact a REALTOR, who can advise consumers on the housing assistance programs and resources available in a given area,” according to Yun.

NAR’s Housing Affordability Index is still in record territory. According to the NAR, “The affordability index rose to 174.8 in April from an upwardly revised 171.9 in March, which makes it the second-highest monthly reading on record after peaking at 176.9 in January of this year. The HAI is a broad measure of housing affordability using consistent values and assumptions over time, which examines the relationship between home prices, mortgage interest rates and family income.

A median-income family, earning $60,900, could afford a home costing $296,800 in April with a 20 percent down payment, assuming 25 percent of gross income is devoted to mortgage principal and interest. Affordability conditions for first-time buyers with the same income and small down payments are roughly 80 percent of that amount. The affordable price was well above the median existing single-family home price in April, which was $169,800.”

If you are a buyer in our market, these are probably the best buying conditions in 30 years! If you would like to search the Athens MLS with MapTracks please take a look at listings in our “Classic City” today! On this web MLS search solution you can search every listing on the Georgia MLS for the Greater Athens area or in your Georgia town!