Archive for tag Foreclosures
September 28, 2010 at 12:00 AM
Recession, Depression, Housing Bubble Bust, Foreclosures, and Short-sales. I can hear it now, somewhere Dr. Evil’s sinister plot to wreck the United States’ economy is underway. But, can American ingenuity beat Dr. Evil? Without a doubt it can. See, the way I figure it, is that if Dr. Evil can try and hold the world hostage for onemilliontrillionbilliondollars, and eventually have a water filled pit with Sharks with lasers attached to their heads, then can’t we figure out a way to help ourselves? The answer, by the way is a resounding “YES”! To quote some other cartoon character, “Yes we can,” and here’s how.
First, in the spirit of Dr. Evil whose wealth building opportunities were executed by his nefarious “Number 2”, he invested in the United States. Albeit it was courtesy of lattes and mochas (sorry Starbucks), we have the same opportunity, but it rests within the heart of America. That opportunity is home ownership. Never, ever has their been a better time to purchase a home (or condo) than right now. Interest rates are at an all time low (just a couple of weeks ago, I closed a sale where the Buyer’s interest rate was.3.75%, and NO POINTS!!! Geez that’s about as cheap as money gets!
Second, with a large, large shadow inventory (those properties, whether they be distressed or not are not yet on the market for whatever reason; I tend to think of vacant foreclosed homes at this point) looming, some sellers, including banks may be willing to listen to your offers. The pundits continue to discuss the fact that home prices may fall further in 2011, but let me tell you as a front line, bag toting Realtor, that may not be so. I’m beginning to see more and more sellers lose patience with the market and rent out their homes, refinance and stay, or put some money into their homes and really dress them up. Aside of distressed properties, the “traditional” home sale inventory seems to appear that it may be heading in the opposite direction and actually may be shrinking rather than growing. Buy your home now, don’t wait. This is about as low as it’s going to get if you’re in the market for a non-distressed home!
Third, over time, the home you buy now (which by the way, I heard somewhere that home prices today are around where they were in 1996) will build value (and will do so with cheap money–low interest rates I mean). We all know that the real estate markets have ups and downs, and right now we’re down. Guess where we’re headed next………? Correct, the answer is up! Don’t be sitting on the sidelines a year or two from now wishing that you’d bought your home for $10K or $15K less. The ride on the upswing is pretty fun, don’t miss it.
If you’d like more information on home selling or home buying, please feel free to contact me at your convenience. I can be reached at: Office: 262-694-2141, Mobile: 608-770-4568, e-mail me at: . Or visit my web site at: www.peteoconnor.com.
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Pete O’Connor
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November 30, 2009 at 05:01 PM
This year has seen an unprecedented number of foreclosures and short-sales that are available for sale. The housing market is flooded with both of these homes available for sale, and this year, I’ve had many, many buyers interested in these types of homes. Specifically, some of my buyers this year seemed to zero in on foreclosures, namely due to the advertised sale price.
Foreclosures can be a good deal, but they aren’t necessarily for the faint of heart. Most times these homes need a great deal of work just in order to become habitable. One home in particular that I was in earlier this year with my buyer ranked as the number one, most awful home I had ever been in. Seriously, on a scale of 1 to 10 with 10 being the worst possible ever home I’d seen, this one was a 12! When we walked into the home the first thing that caught our attention with full measure was the distinct and very pungent smell of cat urine. This was not just a little smell, but a “punch you in the nose squarely between the eyes” smell. From what we could gather the foreclosed owner had about six or seven cats and they did their business where they saw fit. The second thing that caught our attention (after gagging badly) was that the owners had left, period. They took nothing with them, the house was an absolute wreck, and it looked as if a tornado had gone through the house entirely. Open, moldy food and trash as well as personal possessions were scattered to and fro. It gets worse… the basement had obviously had a water issue and that in turn brought mold. Lastly, the foreclosed home owner, during better days obviously was an avid fan of HGTV, and attempted many, many home projects, none that appeared to be in good quality.
Remember, if the homeowner didn’t have the money to make the house payments, what makes a person think that that quality would be a consideration in their home improvement projects? Or, equally as important take care of the routine maintenance items that a home requires on a daily basis?
So, with buyers in tow we toured the home holding our noses and wading through, in some instances calf deep trash. The buyer was obviously oblivious to costs involved in turning this “good deal” into a habitable home for her and her children. Consider that while the above grade structure was in decent shape, the roof and studs, just a few of the obvious costs involved to get this home ship shape would be:
- Get a dumpster to get the trash out of the house
- Hire a cleaning crew or seriously sweet talk friends and family members for help
- New carpet and flooring throughout the home
- Replace sub floor and some drywall in areas due to the cat urine soaked areas
- Appliances, all of them were needed
- Mold removal and remediation in the basement
- Replacing mechanicals in the basement damaged by flooding and neglect
- Un-doing some of the previous owner’s “HGTV projects”
Remember, these are just a few of the easy costs to target. Nevertheless, in an easy guesstimate of what it would cost just to make the home livable, in this instance my guess would be a cool $45,000 and that’s being liberal too.
While most foreclosures may not be in this poor condition, what’s amazing are those buyers that will still entertain the thought of purchasing them, because they’re “a good deal”. When determining value, make sure that you consider all the costs involved in the rehabilitation process of the home. There are underlying costs that should be considered. Don’t get me wrong, I’m not saying that all foreclosures are a bad deal, but make sure that common sense is applied. For a complete list of foreclosures and short-sales available in your area give me a call or drop me an e-mail. I can be reached at 262-694-2141, 608-770-4568, or 262-320-SOLD, or at soconnor@shorewest.com. On the web, visit me at www.peteoconnor.com. So, for now, happy shopping and Caveat emptor!
Posted by:Pete O’Connor
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November 19, 2009 at 04:05 PM
Without a doubt, this is the best time ever to buy a home. Interest rates are lower than they’ve ever been, and home prices are at record lows. Far and away this is how savvy buyers build wealth. For too long most Americans have over-borrowed and over-spent. This coupled with job losses, medical problems, divorce, etc., have led us to where we are today. However, not all is lost. You see, one of the best kept secrets to building personal wealth in today’s market in real estate is… Short Sales!
A short sale is when a the owner of a property owes more on a home than what it’s really worth, and usually is in default. With that in mind, you as the buyer are in a prime position to get a home that is an outstanding deal. For example, a home that just a year ago would have easily sold in the $300K’s, is now for sale for roughly $259K. This is an outstanding deal, as this home has been well kept, newer, very large, almost 3300 square feet, four bedrooms, two baths, three car garage… you get the drift.
Where’s the wealth building part of it you may ask? See, market value is determined when both buyer and seller agree on a price of something. In this case that something is a house. AT THIS TIME, there is no better place to put your money than in real estate. As the economy continues to rebound, and it always will, the house that just a year ago was valued in the $300K’s, and is now selling in the mid $250K’s… That’s a no brainer! Where else (other than your job) can a person get that much equity that quickly? All this being said, use common sense. Seek out a professional that knows the market well, and can guide you seamlessly through the short sale process as a Buyer. I would recommend that buyers seek out only those real estate agents that are certified as an Accredited Buyer’s Representative (ABR), as these agents have achieved a level of competency that many other agents have not yet achieved. These agents know the in’s and out’s and intricacies of the home buying process like the back of your hand. Additionally, and there’s not a lot of these out there, but when you can, also seek out agents that are intimately familiar with the short-sale process, for example, those agents that hold the Certified Short-Sale Professional (CSP) designation. Not only do they know the buyer side of the transaction, but know the seller’s side of the transaction in great detail.
For more information on short-sales, (or foreclosures), please don’t hesitate to contact me, as I specialize in both of these areas, and by the way, yes, I am an Accredited Buyer Representative (ABR), and also a Certified Short-Sale Professional (CSP). There you go, happy shopping and remember you’re building wealth!
Posted by:Pete O’Connor
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