For First Time Home Buyers, Now is a Great Time to buy a Short Sale!

By
Real Estate Agent with Weichert Realtors 0225104373

No, I never thought I would say this, but if you are a First Time Home Buyer, now  is a great time to buy a "short sale".

Why?  Well, for 2 reasons. 

First and foremost, if you are are First Time Home Buyer, in Northern Virginia, you are up against some pretty stiff competition.  Let's go to the videotape, or in this case the Metropolitan Regional Information Systems, or its more common name, the MLS.

In the last 30 days, ten detached single family homes were sold in The City of Manassas, between $150,000-$250,000.  Of those ten, 5 were "bank owned", 3 were "short sales", and 2 were "traditional sales".  What does that mean?

Again, let's go to the MLS. 

I culled over some data, (well I am single, what else am I going to do), and at this time last year, 21 detached single family homes were sold in the same region, in the  same price range. 

Ah ha!  More homes were sold last year, than this year, in this particular area.  (Well, I certainly hope so!) 

At this time last year, there were 4,826 "active" listings in Prince William County, and The Cities of Manassas, and Manassas Park.  This year, there are only 2,848 active listings, of which 928 are marked either "under contract", or "contingent".   What does that mean?

Well, remember those 21 detached single family homes that sold last year at this time?  Guess how many were settled "short sales"?  

None, nada, zilch, you get the idea. 

Unlike a year ago, in which I saw "no ratified contracts", "multiple ratified contracts", and agents that went MIA on short sales, most of the listing agents involved in these transactions now take them very seriously, almost as if they are  marathon runners preparing for months for that one day of glory.  (By the way, I used to be a Marathon Runner, it's not the race itself, it's the training that's hard.)

Also, with the new rules regarding short sales, it should hold the big banks more accountable to their double talk, and constant, "yeah, we'll get back to ya", put offs.

And don't forget the "new and improved" home buyers tax credit, of which you need to have a "ratified" contract by April 30.  Of course, this assumes that the prospective home buyer can "tough it out".

So, first time home buyers, do you have what it takes, to go the distance?   Because if you have a VA or FHA loan, once a home has gone into foreclosure,  and becomes "bank owned", most of those same banks don't want to have anything to do with you.

Starting now, home buyers, we have 7 months to bring these short sales to a close.  That may seem like a long time, but remember the marathon runner who trains for months to get to where she is going.  Nothing worth having, ever comes easy.

Reporting from the trenches,

Johnny "Culdesac" Yankoviak

12/1/09

www.johnnyculdesac.com

 

 

 

 

 

 

 

 

Posted by

Johnny Yankoviak

Weichert Realtors

7900 Sudley Road

Manassas, Va 20109

www.JohnnyCuldesac.com

an equal housing opportunity

Comments (6)

Julie Chroust
Julie Chroust, Bay Equity Home Loans, LLC - Walnut Creek, CA
NMLS# 249458, Senior Loan Officer

Johny, I am surprised I'm agreeing.  It's amazing that it wasn't too long ago we ran away from short sales, and now we're running to them.  It just shows us that the market is always changing.  Good Luck to you!

-Julie

Dec 01, 2009 02:01 PM
John Culdesac
Weichert Realtors - Manassas, VA

Thanks Julie:

I never thought I would say it, but it's true.

Johnny "Culdesac" Yankoviak

 

Dec 01, 2009 02:09 PM
Lanre-"THE REAL ESTATE FARMER" Folayan
Keller Williams Select Realtors-Buy a home in Washington DC. Sell a home in Washington DC - Bowie, MD
I don't make promises.I deliver results.SOLD HOMES

I agree with you. I was running from them myself but not anymore-Do I have a choice? But now most of the listings in the MLS are short sales. Great post.

Dec 01, 2009 02:12 PM
John Culdesac
Weichert Realtors - Manassas, VA

Hi Lanre:

How are you doing?

With 25% of homeowner's owing more on their home than the market value, short sales are not going away anytime soon.

We might as bite the bullet.

Some day we will laugh about this over beer's, and say "do you remember when"?

In the meantime, this market isn't for the faint of heart, it for those have the courage of their convictions.

Good luck, we all will all need it.

Johnny

Dec 01, 2009 02:23 PM
David Zablatsky
Avant Realty Group - Needham, MA
Real Estate - Needham, MA

Johnny,

 

I agree as well, but as long as the consumer undertands difference between foreclosures, short-sales and regulars sales, and the pros and cons, advantages and disadvantages of each of them.

 

-David

Dec 01, 2009 02:23 PM
John Culdesac
Weichert Realtors - Manassas, VA

Hi David:

I completely agree, short sales aren't for everyone, and I myself as a home buyer, might not have the patience for the months long time frame. 

In the immortal words of Tom Petty,

 "The  Waiting is the Hardest Part."

Thanks,

Johnny

Dec 01, 2009 02:32 PM