Riverview Category
Buyer Expectations For Foreclosures Will Cost Many Money!
April 8th, 2009 Categories: Brandon, First Time Home Buyers, Foreclosures/ Bank Owned, Riverview
Recently I had a buyer find a house they wanted badly. The house was a foreclosed property and had been on the market for a while. The bank had originally listed the house for $159,900. It was not a house that I recommended to my buyer clients at that price.
After roughly 30 days, the bank dropped the price to $139,900. Better, but I continued to feel it was not priced properly. After 80 days, the house was re-priced to $119,900. Another $20,000 decrease. At this time I thought we had a property to market. I sent the listing information to several of my clients and I got a phone call requesting a showing. At the same time, I selected 3 more foreclosures I thought were of good value and scheduled showings.
Sure enough the client and his wife loved the property. I pointed out that the roof would need replacing and that could give us a little additional room to negotiate. I suggested we price in down by twice the cost of a new roof and be happy if we are met half way.
My client insisted that we offer in the $80’s and pay no more than $95,000 because of the repairs required on the house. I immediately searched for a foreclosed house that was pristine, in his price range. I found a two year old home described as “barely lived in and with upgrades galore.” Yes, he and the wife loved it. Basically a new roof and new everything. It was the same size house and listed at only $11,000 above the older “needs repairs” house.
What was he willing to pay (not offer, but pay)? “No more than $100,000.”
That led me to provide him a study to share with all buyers in the market for a foreclosed home.
This study was based on homes listed in Riverview and Brandon Florida for a list price between $90,000 and $150,000 since the beginning of 2009. Here is what we found.
|
List Price |
Sold Price |
Price p sq ft |
% Ratio |
DOM |
|
$120,660 |
$119,247 |
$74.83 |
97% |
48 |
List price is the final list price on MLS
Sold price is what the buyer actually paid
% Ratio is the ratio of the list price to sold price. (Based on actual square footage prices)
DOM is Day On Market
What do these numbers tell us?
Banks on most of the properties are getting their price. List price decreases with Days On Market, but does not necessarily open the door for further price reductions. Price per square foot is a starting point to understand value, but not the final point. Property condition, neighborhood, supply and other attributes help to determine price.
What can the buyer walk away with regarding this information? First, don’t set yourself up for disappointment after spending a lot of time finding the right house and lose your excitement or the home by unrealistic expectations. Banks are not desperate as we all may think or as the media reports. In the study area 41% of all sales were bank owned properties that closed on average 48 days or less. That is a hot market for the banks and they don’t need to come off their price except on very special circumstances. Your real estate agent can help you understand those circumstances.
We have specialized in finding great foreclosed properties and will gladly find or review foreclosures for you. Give us a call or email us.
If you would like a copy of this stuy in Excel spreadsheet form let us know. It contains each and every foreclosed property in Brandon and Riverview along with the list price (study price of $90,000 to $150,000), sold price and days on the market as well as other helpful information. Drop us an email and request “Foreclosure Study 1/1/09 to 4/8/09. We will be glad to send you the report.
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Twitter as an Investment?
December 14th, 2008 Categories: Apollo Beach, Bloomingdale, Brandon, FishHawk, Real Estate Investment, Riverhills, Riverview, Valrico
Those of you that are enamored with Twitter and those of you who like a good stock investment tip every once in awhile, take note.
On paper, it seemed like a match made in heaven: A partnership between social networking giant Facebook, in whom Microsoft (MSFT) owns a 1.6% stake, and micro blogging platform Twitter was in the works. Then Evan Williams took over as Twitter’s chief executive in October 2008, and tempting as it was, rebuffed a $500 million offer from Facebook founder Mark Zuckerberg.
Williams had his reasons. The brains behind an earlier web 2.0 darling called Blogger — which allows average Joes to share at will and was sold to Google (GOOG) in 2003. Williams stated that he didn’t think Twitter was ready to be bought out, too much unfinished business.
Twitter and or Facebook may bare watching as an investment; no doubt some big fish, i.e. Microsoft or Google and other huge web related companies are circling. I have always been a believer in investing in companies that produce goods or services that the investor is familiar in. Many of us on ActiveRain are becoming more and more familiar with Twitter and can attest to its potential value, not only as a social networking tool and a micro blogging platform, but also as a potential investment.
Dave Tipton, Broker- Diamond Dwellings Realty
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Is your Brandon Area home getting ready to expire in the MLS?
November 22nd, 2008 Categories: Apollo Beach, Bloomingdale, Brandon, FishHawk, Real Estate Investment, Riverhills, Riverview, Valrico
If your home has been listed in the MLS, and it is getting ready to expire, I would like to make a few suggestions…
- Get a new agent… May I suggest me…
- Set up the new listing to begin the day after the current listing expires…
- Go on a nice vacation for a few days…
- Don’t forward your home phone to your cell phone… and you might consider NOT sending it to voice mail…
Why you ask?
Because it is going to get ugly. Read the rest of this entry »
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The Devil’s is in the Details: Closing Escrow
November 10th, 2008 Categories: Apollo Beach, Bloomingdale, Brandon, East Hillsborough Neighborhoods, First Time Home Buyers, FishHawk, Military Moves, Riverhills, Riverview, Valrico
The final phase of purchasing a home is called closing escrow or “The Closing” as real estate agents call it. The closing has six steps leading to the completion of the process. All of these steps are important and they are as follows:
An “escrow” or “sales” contract (agreement to purchase) starts the process.
STEP #2 Processing the File
Processing the file is when tax information, loan payoffs, survey if necessary, homeowner/maintenance fees, inspections/reports, and hazard and other insurances as well as legal papers are ordered and title commitments/preliminary reports are reviewed and sent out. Read the rest of this entry »
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“Ride for Ron” 2nd Annual Memorial Ride
November 3rd, 2008 Categories: Apollo Beach, Bloomingdale, Brandon, FishHawk, Military Moves, Riverhills, Riverview, Valrico
2nd Annual
Memorial Ride for Sgt. Ron Harrison (HCSO)
Killed in the Line of Duty
Saturday, November 8th, 2008
To Benefit MADD Hillsborough County
Presented by Blue Knights Florida XXVII
Harley-Davidson/Buell of Brandon
Seminole Hard Rock Hotel & Casino
Beef O’Brady’s of Seffner
Hillsborough County Sheriff’s Office
USF Police Department
Plant City Police Department
Note: Passengers ride for Free!!!
Tee Shirts will be available (Limited Quantity)
Bring Registration and Fees/Contributions to:
Harley-Davidson/Buell of Brandon, 9841 Adamo Drive (Hwy. 60), Brandon, Florida.
Kickstands up at 5:00 p.m.
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