WOODBRIDGE HOMES FOR SALE, COMPARING FORECLOSURES TO NEW CONSTRUCTION

By
Real Estate Agent with Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate 303829;0225082372

FORECLOSURES CAN BE A GOOD BUY.  THE BENEFITS CAN BE PRICE, QUICK OCCUPANCY, LOCATION.

However, the foreclosure sale still has to compete with other homes for sale in the area.  Look closely at foreclosures.  Many home buyers believe that, "if it's a foreclosure, it's a good buy".  Not necessarily so.  We sell foreclosures, especially bank foreclosures, but an experienced Buyer's Agent will analyze the value of the particular property and can determine whether or not a particular foreclosure is a good buy.  Make your buying decisions based on facts, not assumptions.

PRICE FOR FORECLOSURES.
  Most foreclosure owners, banks, mortgage companies, HUD, VA, price their properties based on an appraisal.  Some banks will obtain more than one appraisal to assist with determining the price for the property.  Also, since the foreclosures are listed with local real estate brokers, the agents for the property will also provide the owner with a Comparitive Market Analysis based on recent comparable sales in the community or nearby area.

WHO PRICES THE PROPERTIES FOR SALE?  In a word, THE OWNER.  That means the bank, mortgage company, HUD, VA that owns the home.  The owner has rarely seen the property, the neighborhood, the general area and may be located in an area hundreds or thousands away.  Once the owner (bank) gets the pricing recommendations from the listing agent, the pricing decision is often made based on considerations that have little to nothing with what price it will take to sell the home.  THEY ARE OFTEN VERY WRONG!!

EXAMPLE:
  We previewed a foreclosure in Woodbridge this week and found it so overpriced that we wondered if the owner, financial institution, had the benefit of any local comparable information.  For instance, there is a new home builder also selling homes in the community and the new homes are priced approximately the same as the foreclosure.  Not only that, the new home builder has homes in inventory ready for immediate occupancy. 

 Foreclosure in Woodbridge  New Home in Woodbridge

  Foreclosure priced at $549,900                                                           New Home priced at $615,000 with incentives

THE FORECLOSURE - Priced $549,900
The foreclosure was not clean.
The flooring in the kitchen and sun room were vinyl.
The kitchen was standard with Formica counter tops.
The landscaping was not well maintained.
The carpets were in serious need of cleaning.
No warranty offered.

THE NEW CONSTRUCTION - $615,000 with $10,000 closing help.
The new construction was spotless.
The flooring in the kitchen and sun room were hardwood.
The kitchen has stainless steel appliances with Granite counter tops.
The landscaping was trimmed and healthy.
The carpets were new.
Fully finished basement. 
Large deck overlooking yard backing to woods.
New home warranty.

Kitchen in Foreclosure  Kitchen in new home in Woodbridgeq

 Kitchen in Foreclosed home in Woodbridge                                            Kitchen in New Home in Woodbridge

FORECLOSURES SOLD IN WOODBRIDGE July 1, 2007 through October 27, 2007.

SOLD - 36 Foreclosed Homes, Single Family Detached
Minimum Price SOLD - Listed for $189,900 - Closed Price, $189,900.
Maximum Price SOLD - Listed for $674,900 - Closed Price, $635,000.
Average Price SOLD - $317,796

Prince William County Map

SEARCH LISTING Prince William County, Virginia

Foreclosure in Woodbridge update

Courtesy:  Homefinders.com, Lenn Harley, Broker, 800-711-7988 - E-mail Homefinders

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Rainmaker
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Laurie Mindnich
Centennial, CO

Hi, Lenn- once people see the differences (the kitchens that you are showing don't compare- it would be several thousand dollars, as you know, to add granite/backsplash, and several thousand more to have classic cabinetry) the prices are likely very comparable.  Banks (here) haven't accepted reality yet, so often the foreclosure is simply not a good buy.  Not yet.

Buy an almost new home without a warranty?  Not on MY watch! :)

Oct 27, 2007 07:57 AM #1
Rainmaker
147,121
Kaye Thomas
Real Estate West - Manhattan Beach, CA
e-PRO, Manhattan Beach CA
Lenn-  Not all bargains are good deals.. the problem is that individuals and the medis are not clear about foreclosures.. the concept sound good but the rality is often quite different.
Oct 27, 2007 09:17 AM #2
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Cindy Jones
Integrity Real Estate Group - Woodbridge, VA
Pentagon, Fort Belvoir & Quantico Real Estate News
I had to do a double take when I saw your pictures.  Thought we had been in the same neighborhood :-)  I was in White Oak Estates doing the same comparision.  I'm just updating my price sheet from the auction a few weeks ago and so far it doesn't look like the banks accepted the auction bids (except the absolutes) so it shows they just aren't clued in to reality yet.
Oct 27, 2007 09:53 AM #3
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Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

Laurie. There is no comparison in these homes.  The new home is by far the best buy.  That foreclosure has been on the market for over 200 days.  It's insane.

Laura.  The foreclosures are hot right now.  I just wanted to get something in the system that they may not always be the best buy.  If we show that foreclosure, you can bet we'll take our buyer right next door to look at the new construction too.

Cindy.  It's K.Hovanian at Saratoga Hunt.  The foreclosure is right next door to the builder's model home.  It's a riot.  The home showing is one of the builder's inventory.  The foreclosure has been on the market for over 200 days.

Oct 27, 2007 10:13 AM #4
Rainer
35,813
Cheryl Hale
Envoy Mortgage. LTD - Plymouth, MI
Mortgage Loan Originator NMLS#276668

Lenn,

Great information - you really do your homework. I learn more and more every day from this site , especially from the realtor perspective.

And BTW, congrats...I was doing some surfing and saw you got a quote on Bankrate.com

"If you're in one of the higher-ranked schools around here, you're going to add $50,000 to $100,000 to the price of the same house," according to Lenn Harley, a broker with Homefinders.com Inc. in Maryland and Virginia.

The point is, location rules in real estate."

P.S.  I know your stomping grounds somewhat..my brother has lived in Dale City for many years and I've enjoyed many visits in your neck of the woods

 

Cheryl

Oct 28, 2007 10:05 AM #5
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Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

Cheryl.

Thanks.  That quote is on "real estate gorilla" too.  I often make the statement when reporters inquire about our prices and why some area are higher.  It's location, either for public schools or commuting.

 

Oct 28, 2007 10:42 AM #6
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