MLS Update December 25

In the past 72 hours there has been a minimum of activity in Hidden Meadows, but the terrific home at 28950 Royal Rim – already a terrific bargain at $699,000 – has been reduced to $629,500, which is outrageously low! Also a home on Pinion Trail has been reduced from $630,000 to a variable from $560,000 to $620,000.

 

A home at 10842 Meadow Glen Way East went into Pending – it was a great buy at $399,000 and should have sold weeks ago.

 

A Meadows Condo closed Escrow at $110,000. Only bargain hunters are buying, but there are a lot more showings.

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The Week in Review

Busy showing property all weekend — the most fun I have had in many months. Listed homes; previously listed homes canceled many months ago; homes that were really not available because of the Christmas Holidays, but we showed anyway because people know us and were just cooperative.
 
We saw homes that had never been on a Caravan, homes that were great bargains but just not right for our clients, and a few homes that are serious candidates between $1 million and $1,5 million. The weather cooperated and we saw some terrific views. The best buys include the home on Royal Rim.
 
There was one new listing in the Meadows, one home went into Pending, and one of my favorite homes (on Glenmeade Way) closed escrow at $604,500. (This was $5,500 more than my prediction.)
 
Considering it is so close to Christmas, there is an unusual amount of serious activity.

Foreclosure Buying Analysis

My son and I are now participating in the Foreclosure market, and anyone desiring to invest in that market needs to know that there are differences between that market and the “NORMAL  MARKET.”

 

First, there is money to be made if you are interested in being a landlord in the future, or to hold property for appreciation, but if you are accustomed to the usual sales and disclosure system, there are differences.

 

First, not all Foreclosures are good investments – there are many homes in foreclosure that have been trashed, or never maintained by the previous owners who were either angry over losing their home or simply did not have the money to maintain the home just as they did not have the money to pay their mortgage. That means that the cost of buying is higher than the price in many cases, and the new owner – the bank – does not have an obligation to disclose problems because they never lived there.

 

Often, it is better to buy a home in “Short Sale” because the Owner is still in residence  and must disclose problems to avoid future lawsuits. Or, it might be better to buy a home that is teetering on the edge of Short Sale or Foreclosure and avoid dealing with the bank at all.

 

In Short Sale, you negotiate with first the Owner and then the Owner’s decision must be approved by the bank. In Foreclosure, you deal directly with the bank.

 

Now you might think that banks would be anxious to get a property off their hands, and they are they simply are not of a culture to move rapidly. The term “Banker’s Hours” is germane – they work 9-5, five days a week and do not care that a simple signature will permit a file to close and free Mayflower Vans that are parked in driveways from San Diego to Main. If it is the end of the day, it is the end of the day. One does not go to work in the banking industry to work overtime.

 

On the other hand, the bank wants everything speeded up in the sales process – the normal 17 day inspection period will be contracted, the length of time for loan approval will be shortened, the contingencies must be removed quickly – in short, the price will be low but you must jump quickly and make decisions in a much shortened amount of time.

 

The clue is to first determine the community location of your interest, then concentrate on the price range. Decide if you wish to deal with Owners; Owners and banks; or just banks. In a down economy, once you have the property you must face the fact that many of your renters will be the very people who lost their home in the housing bubble – they lost their home, and it may be that they lost their jobs.

 

In my community, we have a nice rental on a quiet street. We have interviewed more than a dozen potential renters, most seemed like very nice people and many have lost either job or home, or both. That situation will continue for some time. My son handles the property management division, and in more than a decade he has never had to evict a renter he has approved, but in this market that may require asking not just for bank accounts and job security letters, but the books of business owners! (That does not set well, but businesses are going under daily and people in businesses where it is easy to avoid using them in a down economy, like owners of carpet cleaner or window washers or housekeepers businesses, or even day care centers may not have as stable an income as they once had.)

MLS Update December 17

In the past 48 hours, there were 11 new listings in the Zip Code, including one at  28108 Mountain Meadow Road. 3,172 square feet for $429,000.

 

 10238 Meadow Glen Way East was reduced from $424,000 to $396,000, and a home at 29115 Meadow Glen Way West in Rimrock was reduced $200,000 from $1,250,000 to $1,050,000. There were a total of 11 price reductions in the Zip Code.

 

There were 10 homes that went into pending in the Zip Code and one was at 10874 Meadow Glen Way East that was priced between $300,000 and $325,000.

 

Three homes closed escrow, but none were in the Meadows.

 

December 13 MLS Update

Absolutely nothing happened in the past 48 hours in Hidden Meadows, and in fact it was quiet throughout the entire Zip Code. As the Christmas Holidays approach, everything slows.

December 10 MLS Update

No new listings in the Meadows today, but a home at 9825 Sage Hill was reduced from $369,000 to $349,000.

 

Two Meadows homes went into Pending today. One4 home at 10957 Meadow Glen Way East that was priced at $395,000, and another home I REALLY liked at 10541 Moonview that was listed at $375,000 — $424,000. Until these really underpriced homes are off the market, the “regular” market cannot compete.

 

I will put a piece of land into escrow tomorrow. Perhaps something is happening.

MLS Update December 8

There was a new listing in The Meadows, 28292 Meadow Glen, 3,243 s.f., 5 bedroom, 3 bath, for $495,900, built in 2005.

 

There were price reductions on Fallen Tree, and Sage Hill. The home at 2580 Fallen Tree was reduced from $370,000 to $349,900, and the home at 9736 Sage Gill was reduced from $479,900 to a variable price from $449,900 to $459,900