Real Estate Blog - LENN HAD AN EPIPHANY TODAY! AGENTS WHO KNOW THEIR MARKET WILL SELL REAL ESTATE.

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LENN HAD AN EPIPHANY TODAY! AGENTS WHO KNOW THEIR MARKET WILL SELL REAL ESTATE.

LEARN FROM THE PAST AND BE QUICK TO CHANGE WITH THE CHANGES IN THE MARKET. RESEARCH YOUR MARKET, DETERMINE WHAT IS SELLING AND GO FOR IT!

Agents and brokers who have been around for a while know that the real estate market is in a constant state of flux, change, adjustment, trends, or ups and downs.

Inspired by an article by Scott Daniels, I researched the SOLD stats for foreclosures in my primary market area and found the following. GET READY FOR A SHOCK!!

Counties included in search: Fairfax and Prince William Counties in Virginia and Montgomery, Baltimore and Prince George's Counties in Maryland.

DATE	#			SOLD
SOLD	SOLD	DOMP	PRICE

Jun-07	62	88		$374,988
Jun-08	455	116		$273,707

From 62 homes sold to 455 homes sold in the same area in the same time frame. That number alone indicates that there is a vigorous market in foreclosure sales.

WHAT IS THE MESSAGE IN THE ABOVE?

Don't overlook foreclosures when showing properties to your buyers. They can be a good buy and many are in better condition than many home owner listings.

Home Buyers who buy foreclosures today will have a faster appreciation of their real estate investment as prices begin to recover from the mortgage mess.

Banks selling foreclosures respond much faster than in the past and far faster than with short sale listing.

Buyers who purchase foreclosures in need of repair and invest some "sweat equity" in upgrading their home will benefit from the added value in the future.

AGENTS and BROKERS: Follow the market. Foreclosures are selling. Buyers want them.

Courtesy, Lenn Harley, Broker, Lenn Harley, 800-711-7988.

Posted by Lenn Harley, Real Estate Broker, Maryland & Virginia on 07/24/2008 08:39 AM

Comments (16)

foreclosures in maryland, foreclosures in virginia, foreclosures in fairfax, foreclosures in montgomery county

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16 Comments on LENN HAD AN EPIPHANY TODAY! AGENTS WHO KNOW THEIR MARKET WILL SELL REAL ESTATE.

JUL

2008

Lenn,

Good advice...the only thing that concerns me is that each foreclosure sale has a devastatingly negative effect on comps and property values for other homes on the market!!! Thanks, Fran

Lenn, being a non judicial foreclosure state (Georgia), foreclosures hit the market quickly. Many are in reasonable shape as they do not sit long without maintenance. Banks are more agressive with pricing lately making the homes attractive...

There's a song from The Music Man that has a line, "And you gotta know the territory!" I think this totally applies to this market, where foreclosures are becoming a part of the territory - even in Georgetown! Showed on the other day - although it was under contract for about a week before the agents bothered to change the status. Also part of the territory.

Lenn--I agree with you on the foreclosure thing. Short sales are troublesome but foreclosures can get quick answers from the bank. There is more risk to a buyer but the benefits with an extremely low price can outweigh...The homes I see selling quickly in our area are the foreclosures with "good bones" in nice locations. Often they just need paint, flooring and new appliances and they are ready to go!

Fran. On the contrary. It was the unrealistic pricing of homes on the market that caused the rapid decelaration of the market. If buyers can't buy, what's the use of high prices and high comps.

High comps just encourage sellers to price high. If sellers got the message that foreclosures are a real competition to their home, perhaps they'll compete.

What is the purpose of sustaining high comps?????

Get. Agreed. Foreclosures need maintenance, but if they make a reasonable presentation, they will sell.

Patricia. I love The Music Man. How true. Foreclosure must be included in any home search today. We're selling them.

Lenn, here as well the market for foreclosures are not in earnest as in other part of the country. This is due to Hurricane Katrina. BUT first time homes buyers and starter homes are on the rise. My saying Go where the fish are biting. Scott's post has got me thinking as well. Thanks.

Frank. I know folks believe that I'm out of my mind for advertising foreclosures so vigorously for the past 6 months. However, I could easily see a trend in the telephone and e-mail contacts I was getting.

I'm just giving the public what they want.

We are still having difficulty getting response on the bank owned properties. They can be a great deal if the buyer can wait.

Lenn, I have actually closed an REO (working on 2 more) and my clients are so appreciative for what we/I had to go through to get their home.

Actual foreclosures are not selling as much in our county, but REOs are going like hot cakes.

Lenn - I agree that the agents who know their market and those who have a reputation for specializing will have a huge advantage.

Lenn,

As you know, it's not the pricing of homes that determine value...it's what someone is willing to pay...I agree that comps in themselves don't mean a lot, but that's how banks approve loans...the market itself will ultimately determine which way prices will go...but foreclosures will rob many of much equity viz a viz comps!!! Thanks, Fran

Fran. I view this as a part of the much needed correction. When prices went up 100% from 2003 to 2005, the market was simply out of reach for too many buyers. In many ways, the prices for the bank owned properties are far more realistic than owner occupied properties. If the owner occupied properties hadn't held out so long, we could have had a more orderly price reduction.

Sam. Indeed. Like anything else in real estate, experience counts.

Camarillo. We're happy to show and sell them. Folks looking at foreclosures are buyers. If they can't find a foreclosure they like, we'll sell them something else. If they are looking for impossible deals, we don't bother and save our time for realistic buyers.

Lenn,

I agree!!! I put myself on the consumer side looking back at us mortgage professionals and asking why we're not kicking back some of the profits we made during the boom years, when we're asking them to reduce their net worth by taking less for their home sale!!! Just a thought to fill out the thread!!! Thanks, Fran

P.S. We should get a percentage for supplying all this valuable CE type knowledge!!!

Fran. Isn't it the truth. Agents can probably get more real estate "brain imprints" from reading these blogs than in a few hours of CE.

No credit hours though.

AUG

2008

Foreclosures are definitely selling around here. They are a huge portion of the market in some neighborhoods.

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