Home > Blogs > Gary White~Grand Rapids Home Selling Pro Call: 616-821-9375 > Gary White, FlexIt Realty~ 616-784-2360, Grand Rapids Homes For Sale & West Michigan Real Estate

Are Foreclosures and Short Sales affecting your sales?

By Gary White~Grand Rapids Home Selling Pro Call: 616-821-9375

Managing Real Estate Broker with Flexit Realty "Flexible Home Selling Solutions"

March 24, 2008 10:40 AM

I was hearing people discussing the impact on the non-distressed homes on the market today. One agent said his sellers are really feeling the pain with so many foreclosures and short sales. The other agent said hasn't bothered my clients...

Somewhere in between is probably the reality...but then where are the majority of the foreclosed located? Ar foreclosure e they isolated in a certain price range? What about the short sales are these happening in lower price ranges as well?

Here is something to review with your clients. Look at the price range of the disclosures within a 4 or 5 mile area of their listing! In many cases you are not even in the same price range or neighborhood when you drive that far...so how many homes are really in your clients comparison area?

Does a foreclosure property really compete for the same buyer? I myself do not think they are the same buyers at all. The foreclosure buyer is similar to the bargain hunter. If he get a house that will work for his needs and it is within the price range hurrah...but if he can not get it for the price range...on they go to the next one.

Are the foreclosure buyers as concerned with schools, churches, shopping...or the other issues that a traditional buyer is considering? The short sale buyer may be the traditional buyer...but they still consider the lack of maintenance and the properties general condition. If the buyer is Mr. or Mrs handyman...they might try to go through the process of a lender selling th property for less but it is a process.

So do the foreclosures and short sales impact our traditional listings as much as we think they do or are we so focused on the media issues that bombard us everyday we just think they impact us.

Here is a little headline...homes sales up 2.6% for February....how many were traditional sales, new construction, foreclosures and short sales?

The information is not always as it is reported. I know if I prepare my sellers and do my marketing I can justify my price to anyone....even the short sale buyer. The property is not in need of excessive maintenance and we don't apologize that you can just move-in!

Food for thought....how are these issues affecting you and your seller's?

Comments(12)

Comment

Show All Comments

Sort:

Gary McAdams

GMAC Schwartz Property Sales - Key West, FL

Forclosures are tough but I refuse to list a short sale and will not show a listing that is a short sale. If I buyer insists on seeing one I refer them to another agent. The banks think they have different rules.

Mar 24, 2008 11:16 AM

Gary White~Grand Rapids Home Selling Pro Call: 616-821-9375

Flexit Realty "Flexible Home Selling Solutions" - Grand Rapids, MI

Real Estate Services You can Trust!

Hi Gary their is no doubt that these are different and require a much different approach. Thanks for the comments.

Mar 24, 2008 12:56 PM

Kris Wales

Keller Williams Realty - Lakeside Market Center - Macomb, MI

Real Estate Blog & Homes for Sale search site, Macomb County MI

Gary, I haven't had one buyer in 6 months who didn't want to see a foreclosure.

A typical example: Area C has 10 homes that fit a buyers criteria. 4 of them are foreclosures. In the last 90 days 6 foreclosures have sold within a 1/2 mile radius.

Whether we like it or not those sold comparables are what the appraisor is looking at and can't disregard. Sellers of homes who are NOT foreclosures or short sales are having to price their homes as if they were or they can't compete/sell.

Mar 24, 2008 09:57 PM

Debra Kukulski, Broker Associate

RE/MAX Suburban - Cary, IL

SRES;SFR,CDPE;GRI;ABR;e-PRO Realtor, Northern IL

Gary,...nice post. They are not only affecting the listings, but the buyer sales as well and *frustrating* many buyers, too!

I posted something last week about short sales: http://activerain.com/blogsview/437479/Are-Foreclosures-and-Short

Mar 24, 2008 11:50 PM

Cynthia Tilghman, Realtor® Onslow County NC Home Specialist

Kingsbridge Realty, Inc - Hubert, NC

Gary,
Comes down to something we say here in the Rain over and over, real estate is local. If there have been short sales in your immediate area, they will be used in the appraisal.

Mar 25, 2008 01:05 AM

Teri Eckholm

Boardman Realty - White Bear Lake, MN

REALTOR Serving Mpls/St Paul North & East Metro

Gary--I have noticed recently that people who have homes listed that are not in foreclosure are selling again. I think they are selling for less than they would have sold for last year but they are selling much faster than those in foreclosure or a short sale position. I think buyers like buying from people who love and care for their homes rather than banks!

Mar 25, 2008 03:04 AM

Hi Kris, in your neck of the woods...it is a fact of life...no doubt about it. We have our own issues on the West side of the state but we do not have quite as many...everyone is thankful. I am going to send you a link to a commentary area for foreclosures and shorts sales. It may be interesting. Thanks for your comments Kris.

Mar 25, 2008 09:39 AM

Hi Debra, so to cross paths on a post...I didn't catch yours....I did stop and review. I have to agree many sellers are finding these properties to be a real issue to contend with Debra. Your post was great by the way. Thanks for the comments.

Mar 25, 2008 09:41 AM

Hi Cynthia, real estate sure is local even a few blocks can make a huge difference in values and sales. Thanks for your comments Cynthia.

Mar 25, 2008 09:43 AM

Hi Teri, hope your had a great Easter. It is true buyers value property that has been cared for and appreciate the efforts of the owners. Thanks for your comments Teri.

Mar 25, 2008 09:44 AM

Matt Moxhay

Prudential Fox & Roach - Moorestown, NJ

Moorestown Real Estate

Hi Gary- In my market area it used to be that a "short sale" was an indicator that the property needed alot of work. That's not the case any more: alot of these short sales are homes that appear to be in great condition. I certainly don't shy away from properties that are short sales and gladly work with any serious buyer. I do think it's absolutely necessary to spend the extra time explaining the short sale process to the buyer prior to them making an offer. Some buyers balk once they know what to expect and others move forward: that's their decision to make, not mine. As for impacting other properties for sale: it's true that it all depends on location. If you happen to live in an area with more than one short sale it will have an impact on your sales price in my area of the country.

Mar 25, 2008 02:11 PM

Hi Matt, I think you are outlining most the areas in the country that have these issues. Thanks for the comments Matt.

Mar 26, 2008 11:43 AM

Are Foreclosures and Short Sales affecting your sales?

Comments(12)

Gary White~Grand Rapids Home Selling Pro Call: 616-821-9375

Real Estate Resources

Recent Posts

Additional Information