Rick's Blog

How would you define a “NORMAL” real estate transaction in your area in the year 2010?

Rick Lancaster (Long & Foster Real Estate) — Thu, 10 Jun 2010 12:23:54 -0700

Via Richard Weisser Coweta Fayette Real Estate:

The real estate market has experienced a paradigm shift over the last three years. The buying climate went from the hottest of the hot to an epic ice age in the same amount of time that it takes a foal to make it to the Derby.

People still buy houses, but the process is completely different than it was. Everyone is chasing the elusive “perfect” house at the “bargain” price. The anxiety over getting a “deal” overwhelms most buyers, many to the point of quitting the search.

In times past, a buyer established criteria for a purchase in a specific area, and if a property came anywhere close to meeting the needs of the purchaser it was quickly snapped up before someone else got it. And generally, the only negotiating was whether or not the window treatments remained.

These days, a buyer’s swath of location may cover hundreds of square miles, and they may look at one hundred houses before they make an offer, and they may make ten offers before one “takes.”

It’s a painstaking undertaking, and I have seen many buyers lose out on great home in the neighborhood they want because the allure of finding a better deal was just too great.

And then they spend weeks or even months trying to find a house as good as they one that they let slip away. It’s frustration for the buyer and for the agent as well, because the impossible standard has been set.

This scenario is not an anomaly in my area of Newnan Georgia. It has played out over and over again until it has become the norm.

And it is going to be the norm for some time to come!

All content, including text, original art, photographs and images, is the exclusive property of Coweta Fayette Real Estate, Inc., and may not be used without the expressed written permission of Coweta Fayette Real Estate Better Homes and Gardens Metro Brokers, Newnan Georgia. All information is believed to be accurate but is not warranted, Copyright 2003-2009. Richard Weisser REOS, E-Pro. licensed Auctioneer. 770-827-6225.
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Crowded foreclosure

Rick Lancaster (Long & Foster Real Estate) — Sat, 26 Apr 2008 08:43:04 -0700

I wanted to share a recent experience that I think demonstrates some of our current problems with this market. The other day I was showing a bank-owned townhouse selling for $239,900 in a very nice newer subdivision in Frederick. There are 10 similar homes in this development that are on the market for $270,000- $300,000 there. (Whoops, I almost said "selling for $270,000-$300,000". Nothing's selling.) A year ago, they were selling in the mid-$300,000s.

Something happened that hasn't in quite a while. There were actually two other Realtors showing the same property to two other families at the same time! Remember the good old days? It was, needless to say, a little crowded. Three realtors, three families with children in tow.

Unfortunately, the townhouse was in pretty poor condition. It needed carpet and paint throughout, holes repaired, vanity doors replaced, railing repaired. etc. It seems that people not paying their mortgage tend not to maintain their homes very well. A small investment in new carpet and a few days fixing up would turn this home into a real gem. Unfortunately, none of the buyers could see past it's present state. Mine said he didn't even want to think about the work involved. No one has made an offer on this home and it still sits and sits and sits. Sad and neglected.

All these foreclosures are adding to an already huge inventory, 14 months in my local market. Buyers have to look at them in hopes of getting a good deal and are then disappointed in the condition of these houses. But they have to work through them and eliminate them before they will consider paying market price for a home in good condition. Our buyers have become spoiled and accustomed to home builders and Realtors showing them houses in pristine condition with no extra work or investment required.

As Realtors, we need to explain this situation to our customers and clients, buyers and sellers alike. Until the market corrects itself, we need to manage their expectations and expect to show a lot more houses.

Rick

Welcome to Rick's Blog

Rick Lancaster (Long & Foster Real Estate) — Sat, 18 Aug 2007 12:38:33 -0700

Hello. Welcome to my blog. Just getting started here and am really looking forward to this.

I want this to be an open discussion and forum of all matters real estate, especially related to Frederick Maryland and the surrounding area, personal finance, current events or any other topic of interest. Please feel free to express your thoughts on any topic or question, local or national. What you say on Rick's Blog (I need a better name) stays on Rick's Blog. (gee that was original).

With the recent almost meltdown in the subprime lending market, I'm sure that's on everyone's mind. It has certainly affected us in Real Estate and it's not over yet. The Fed pulled a quick one yesterday and lowered their discount rate on Fed loands to banks to 5.75% from 6.25%. The Dow finished the day up 233 points at 13,079. Thank you, Mr Bernanke. I thank you and my portfolio thanks you. I'll admit it was pretty thrilling watching the market open and surge 300 points after the Fed decision which hit the wires at 8:30 AM. After 2 weeks of bad news and dropping indexes it was quite relief.

That's all for now. Please check out my links while you're here. I welcome your comments.

Rick