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Sometimes, the law of unintended consequences...

By
Real Estate Agent with Coldwell Banker Residential Brokerage

... is not a bad thing in the end.

Let's face it, the housing market has taken a huge hit, and there are plenty of fingers that could be pointed in countless directions. But, I never thought I would be thanking the banks for screwing things up so badly, that they have actually helped the market gain some strength.

Before many of you think I have completely lost what is left of my mind, I will explain. Banks are not geared to own homes, and their inability to get the countless foreclosures back to market, off their books, or turn them into performing properties has been laughable. But, it is in their inability, that they have helped the rest of us.

The foreclosed homes have grown stale, and the "deals" they might have initially been have been replaced with a project home feel that quickly eats up anything saved on getting that deal in the first case. In many cases the banks tried to save money and turned off the power, and thus stopped all air movement in the home. This is a very bad decision for homes in Georgia. They have effectively created mold incubators which they will not address in an as-is sale. Consequently, an investor is the only option left for these homes, and the numbers dictate that transaction which definitely will not favor the banks.

I know, back to the fixing it part. Well, move-in ready A space has seen a rebound. We are experiencing multiple offers and even bidding wars on properties. There are homeowners now starting to come off the sidelines because the market is at least neutral in favoring neither buyer or seller.

So, to the banks I say, "Keep it up." You are finally doing some good for the rest us.

Posted by

John B. McKernan II - REALTOR®
Coldwell Banker Residential Brokerage
(d) 404.822.5235
(e) John.McKernan@coldwellbankeratlanta.com
(i) ColdwellBankerAtlanta.com/John.McKernan

Sheila Anderson
Referral Group Incorporated - East Brunswick, NJ
The Real Estate Whisperer Who Listens 732-715-1133

Good morning John. I read your post three times and am not sure I get your point. Banks do many things, but help the market.....I don't think so.

Mar 29, 2012 12:16 AM
John McKernan
Coldwell Banker Residential Brokerage - Alpharetta, GA

Sheila, that is my point. The fact that they have made so many mistakes handling the foreclosures here, it has made foreclosure sales for normal buyers untenable. The result is a strong, firming price traditional sale market. Their screw ups have actually helped resolve the downward market here.

 

Mar 29, 2012 05:33 AM
Bob Crane
Woodland Management Service / Woodland Real Estate, KW Diversified - Stevens Point, WI
Forestland Experts! 715-204-9671

Thank you John for another enjoyable blog, it is amazing how the banks mismanagement can destroy a home very quickly.  I have bought a few of these in the past year.  I cannot imagine how the average homeowner could even begin to deal with the purchase of one of these homes much less the rehab.  I am not seeing a large escalation in prices on the non foreclosure homes but I am seeing a lot of unemployed builders try to become rehab specialists, some are very successful and others not so much.

Bob

Apr 12, 2012 03:41 PM