Sorry to disappoint, deals are (still) hard to come by

By
Real Estate Agent with Thompson Company, REALTORS® 240.593.2860 MD594797

Not a week seems to go by during which I do not get texts, or emails, or calls from investors in the DMV looking for a steal. Most common requests are homes ripe for flipping, and distressed sales in any condition. 

Sorry to disappoint, but this market segment is still extremely small, deals are still hard to come by. I do not see that changing anytime soon. 

Consider the huge number of home owners with a mortgage that have a rate far below today's average. Lending guidelines have been strict(er than before the housing bubble) with buyers having to submit anything and everything - sometimes thrice - but for their death certificate. 

I earned the SFR (Short Sale and Foreclosure Resource) certification years go and watch for developments daily. As of today, the numbers of actives are:

Howard County: 1 short sale and 4 REOs  

Montgomery County: 6 short sales and 12 REOs 

Of 1,400 homes on the market, 7 are short sales, zero are priced like a steal. 

The DMV market overall is home to recession-proof and in-demand employers (politics, military, contractors, healthcare) but, of course, is not immune to major economical developments charged by geopolitical events. We, too, are seeing a noticeable slowdown in the market with buyer traffic 60something percent of that during the same time last year. 

That does not translate into a flood of distressed sales coming soon, however. Many homeowners are sitting pretty on their looooooow rates and - provided they have job security - have little incentive to sell but every reason to stay put. That is what we call the lock-in effect.  

Every so often, I see a steal, but so do many others. At this point in time, you'll still have to be prepared to act super fast, to do a quick preinspection (if welcome), to pay cash, and more than asking price if you want to get your hands on a rare super deal. 

Posted by

Andrea Bedard
Thompson Co., REALTORS®

Silver Spring, Maryland
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Comments (8)

Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Great post, I find now getting listings are harder to come by too:)Endre

Nov 02, 2022 10:58 PM
Andrea Bedard

Yes, same here. Sellers are just as hesitant as buyers. 

Nov 04, 2022 09:08 AM
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

Hello Andrea - "deals" are often realized after a purchase has been made.  Those who look and continue to look without coming to a meeting of the minds with a seller and a completed transaction may suffer from coulda - woulda - shoulda.  This may be an oversimplification in some situations.

However, real buyers and real sellers seem to overcome objections.  They move forward - real estate-wise.     

Nov 03, 2022 03:26 AM
Andrea Bedard

The problem is that there's not much to look at Michael. When a property hits the market that is priced well below the neighborhood average (due to condition) looking like a deal, it gets a ton of showings within a few days and is gone. The market of distressed homes is extremely small, and the few that are out there are no priced like a steal. 

Nov 04, 2022 09:12 AM
Kat Palmiotti
406-270-3667, kat@thehousekat.com, Broker/REALTOR® - Kalispell, MT
Helping your Montana dreams take root

The same is true here - we haven't had short sales or foreclosure sales in quite a while.

Nov 03, 2022 04:56 AM
Andrea Bedard

It's a good thing! I do hope it stays that way Kat Palmiotti. I remember a few heartbreaking stories from the 2008-2010 years.  

Nov 04, 2022 09:14 AM
Joe Jackson
Keller Williams Capital Partners Realty - Columbus, OH
Clintonville and Central Ohio Real Estate Expert

This is an excellent post with great information. Thanks for sharing it.

Have a super fantastic week!
Joe Jackson, Realtor-KWCP

Nov 03, 2022 05:05 AM
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Hi Andrea - I think that with rising values there are less distressed properties and the unemployment rate is also relatively low.

Nov 03, 2022 05:58 AM
Andrea Bedard

I do hope it stays that way Grant! 

Nov 04, 2022 09:15 AM
Mary Hutchison, SRES, ABR
Better Homes and Gardens Real Estate-Kansas City Homes - Kansas City, MO
Experienced Agent in Kansas City Metro area

I can relate to this blog...quite often I'll hear "find me a great deal" or "the market is slowing down so I'm offering much less"  blah blah blah...

The best "deal" is the one that works for your particular situation.  People who expect "a steal" aren't in tune with the market.

Nov 04, 2022 09:16 AM
Debbie Cook
Long & Foster Real Estate, Inc - Silver Spring, MD
Silver Spring and Takoma Park Maryland Real Estate

So TRUE Andrea!  I had to reblog this . . .

Nov 09, 2022 01:36 PM
Diana Dahlberg
1 Month Realty - Pleasant Prairie, WI
Real Estate in Kenosha, WI since 1994 262-308-3563

Good information! The deal is in the one that you are able to make happen for you.  Steal Deal?  We don't see those anywhere in my market rigbt now.  But if you find what you are looking for and can afford the payment ... don't wait -- you might be too late!

Nov 15, 2022 11:34 AM