June 9, 2009
June 6, 2009
May 20, 2009
May 12, 2009
Today, Bloomberg came out with a report summarized with this “Home prices in the U.S. dropped the most on record in the first quarter from a year earlier, led by California and Florida, as banks sold foreclosed properties.” I think this can be avoided at this drastic of a level. Banks are not doing all they can do to stop the foreclosure from happening. An agent in my office today was telling me a story about a property that was being negotiated via short sale. His client put in an offer of 153,000 to take to the bank. Months passed, bank chose not to respond and the property ended up REO. The same client was able to put in an offer on the property in the REO state, and got it accepted for 135K. Kudos to the buyer for getting what they wanted for better than they wanted.
What is it going to take, besides taxpayer money, to get these banks to understand that they benefit by streamlining and putting resources into the short sale process. It will help solidify prices in the market, move inventory, help their troubled clients, and avoid the dreaded foreclosure. See the links to two stories about foreclosures and short sales out today:
Home Prices in U.S. Drop Most on Record in Quarter
Short Sales: Banks Blocking Way Out Of Foreclosure Crisis
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December 23, 2008
I just crunched all the sold data in the last year for residential REO and Short Sales in the Coeur d’ Alene MLS. What I found is interesting:
Only 21 Short sales closed in the last year for an average of 15% below Original Ask Price. As the seller was adjusting their price downward, short sales closed within 3% of the adjusted price (Around $14,000). This tells me that once a price hits a certain zone, below market prices, it will getan offer and close within 3% of asking. However, closing short sales can present a challenge, only 21 closed in the last year. 119 Real Estate Owned by Banks (REO) sold in the last year for an average of9% below Original Ask Price. Again, banks had to adjust their property pricing downward to create the sale, then after that, sold for within 4% of asking price. This tells me, if you find an REO, if it is the lowest in its class, you can probably get it 4-9% cheaper. The AVERAGE REO sold price was around 200K, which makes sense, saying our average income in North Idaho is42K, banks will loan to someone making this much money around 240K (MAYBE),people get laid off, the property goes into foreclosure, bank tries to sell it at 220K, they reduce the price to 210K and they accept an offer at 200K.
I’ve attached my spreadsheets if you want to take a look at it or play withor create your own data…
Here is the current list of all short sales:
http://www.flexmls.com/link.html?m7oqfk0r4sf,7,1
Here is the current list of all REO’s:
http://www.flexmls.com/link.html?m7oqflmpyvd,7,1
For your viewing pleasure, here are all Lake Coeur d’ Alene waterfront properties including vacant waterfront land:
http://www.flexmls.com/link.html?m7oqfp1zv9a,7,1
Also attached is the November market analysis with the two year trend line.
We sold 166 units last month.
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