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More REOs coming to Palm Coast - Flagler County, Florida...and nationwide....

By
Real Estate Agent with 100 Plus Realty LLC

REOs Expected to Flood Market

Source: www.realtor.org

I just spoke with a REO specialist to pick his brain about what he sees coming up in the near term. We had a very good and frank discussion. I highly respect his opinion, he is well connected and has been in the biz since before I was born and handles tons of REO property listings in all of Northern Florida.


The news I am getting out of him is that the foreclosure coming on the market stalled for the holidays...but are now starting to flood onto the market and there is a huge backlog coming online very, very soon. Good news for savvy buyers to pick up some great deals....horrible news for sellers...this indicates to me another very serious price drop in the next 6 months.

Also if you have not had the opportunity...please read the following article...it is by far the best I have seen on the housing market and economy to date...

"Housing: Where is the Bottom?"

it is not an easy or pleasant read...so be prepared!!!! But in my opinion nails it!!!!!

No I am not the type that believes in blowing smoke and telling you how fabulous things are...there are enough of those people out there...I wish I could drink the kool-aid.

I disagree with NAR that the banks will be able or willing to reduce principal balances on loans to slow down the process. Actually, I am seeing and hearing the opposite. The banks are starting to just go straight forward with the foreclosures and then deeply discounting to liquidate inventory quickly. They are tired of the short sales and are attempting to expedite the foreclosure process to more quickly raise much needed capital.

NOW: If you are realistic and looking for a home to purchase for the long term...this is a great time to start picking away at the best deals. This is not a market for short termers/flippers or those without the proper capital to make it through the next few years. And, please, please, please...focus on LOCATION - LOCATION - LOCATION!!!!!! They can build more gated communities, they can build more golf courses and lakes, they can build more condos, but they cannot build more Saltwater Canal, Intracoastal or Oceanfront property...food for thought!!!!

WARNING: This is also not a market for working with inexperienced, part time and un-seasoned real estate professionals in any capacity. Make sure to interview your agent well before entering into any type of transaction at this time. Personally....if I was a buyer or seller...I would not work with anyone without at least 50-100 or more transactions under their belt....and if they are not technology savvy....find another person to work with pronto.

80% of all buyers are initiating there search for real estate online now...and if you are working with someone that is not familiar with how to capitalize on that...you are missing out on much needed marketing to get your property sold. I also would make sure that they are well versed in short sales and foreclosures...even if you are not in one of those categories...you want someone working for you who knows how they impact you too....because they do!!!!

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Kristi Ross - REALTOR - With over 13 years of experience in buying, selling, managing & investing in real property personally in addition to being a very active, full time REALTOR in Palm Coast/Flagler County, Florida for 7 years ....I have learned that information is power and I am an advocate for customer empowerment.

Please feel free to search the MLS for free at my website www.Palm-Coast-Hot-Properties.com. You can sign up to be on the list of first to know when properties meeting your ideal criteria are newly listed, go pending or are sold.

**Disclaimer: The search homes information is provided through IDX and Kristi L. Ross PA, Hawk Beach Realty, I, My Broker or associates are not in anyway responsible for any representations, opinions or comments or mistaken information provided.

Comments(4)

TIM MONCRIEF
Tim Monciref - Austin, TX
Over 2,000 homes sold…..

The one thing that I have learned over 27 years is that the market will react when it wants to, not when people say it will.  Be prepared for some big surprises.  This is because we underestimate the power of capitalism and capitalism has a worldwide influence.  Though Americans may not be able to bail this out quickly, other countries will jump in for the right opportunity.

Jan 27, 2009 06:35 AM
Palm Coast Homes
100 Plus Realty LLC - Palm Coast, FL
Palm Coast/Flagler County Real Estate, The Ross/Co

Tim - Thanks for stopping by and commenting...it is appreciated.  I wish I could agree with you...I like to keep very in touch with not just the local market, the national market...but also the world market and things are not rosy on the other side of the pond at all.  You also are in an area (one of the very few) that actually has a stable market and has not yet really felt the impact of the major job losses that we have seen and are still coming. I really hope for your sake you don't.

  Over 50,000 jobs were lost just yesterday alone.  Keep in mind the amount of jobs that were involved with houseing and the self employed that do not show up in the gov's data.  You for instance as a REALTOR will never make a blip on the radar of an unemployment number....just food for thought.

I come at this problem from a very, very different perspective...I have been in the epicenter of the blow up in the markets for almost 3 years.  I have already seen it, been there, done that.  I also have tons of friends who have recently been laid off from high figure salaried jobs...they cannot find work...they own multiple homes and properties...they have families to feed.  Be very careful about assuming and buying into the talk of "it can't happen here".  This market is no longer just local.  I wonder how many people in your area...got wrapped up in invensting in Florida and now are hugely underwater and may now lose thier own personal home they live in becasue of it?  I had alot of customers from Austin buying pre-construction, oceanfront  condos...hmmm!!!

 

I am now in an area that is just starting to see major, major cracks in the foundation of both the employment and houseing collapse...they are all walking around saying "We didn't think it would happen here"  uh huh???  None of us did!!!

Jan 27, 2009 10:15 AM
Aventura | Bal Harbour | Sunny Isles Beach | REALTOR® 786-229-7999
SIB REALTY, Llc // WaterWayRealty.com - Sunny Isles, FL

Kristi~

I read a similar article just a few days ago- the banks are about to unleash or as the article stated, 'flood" the market with REO's / Foreclosures. Naturally, this will have a negative impact on the market as a whole. Hopefully in the long run, those that really want to buy- will jump in and take advantage of the REO pricing.

Some areas, the "better" or more desireable areas will probably be exempt the the "flooding"

It could be a blessing in disguise.

Mott Marvin Kornicki // Real Estate In Miami // Associate | Broker

Aventura-The Waterways // Bal Harbour // Sunny Isles Beach • Florida

Jan 27, 2009 10:49 AM
LaShawn Norden
Keller Williams Heritage Realty - Longwood, FL
REALTOR, (321) 377-0157, Your Real Estate Advocate in Central FL

Kristi~ I loved this post! I am shocked that you didn't get more responses. It is honest, well-written and a wake up call for many who think that the market conditions do not apply to them!

Jan 30, 2009 11:33 AM