Archive for March, 2008
Prince William County Foreclosures-Starting To Move
March 20th, 2008 Categories: Auctions & Foreclosures
No one in the Northern Virginia area is going to deny that of all of the localities Prince William County has been hit the hardest by the sub-prime mortgage industry. The cost of homes throughout the county were lower than closer in Fairfax, Arlington and Alexandria Counties and with significant new construction the area became ripe for “flippers” and for buyers who relied on more volatile loan programs in order to afford a home.
Over the last few months the indicators show that buyers have begun to see the value in the foreclosures and properties are starting to put them on their buying list. Do the sales over the last few months indicate that inventory is starting to move? Perhaps but let’s be realistic and admit that there is a lot of inventory in Prince William County to move. New construction is still being completed, owners are on the move and there will be more properties currently listed in other categories that may move to the foreclosure column over the next 30-60 days.
As an agent who is working with buyers who are a looking for a “good deal” foreclosure properties are starting to come into the picture. Six months ago the jury was still out on the question “can you find me a good foreclosure property” today the tide seems to be turning to answering that question with a qualified “yes.” Qualified being that not all foreclosure properties would fall into that category and buyers must always understand the issues that are involved with buying a home as is.
This past week one of my buyers ratified a contract on a foreclosure property and at a nice discount over the list price. We will keep our fingers crossed that the process continues forward without any surprises. I have two more that we are working diligently with the banks to get to the ratification stage and we have encountered properties with multiple offers on them! Each of these sales ARE more time consuming than the average sale but for buyers who are savvy enough to see the value and are patient enough to work through the process they may find themselves with a great new home.
If you are a buyer who is interested in foreclosure properties give me a call. I’m willingly to go the extra steps it takes and work through the process of getting you into a foreclosure property if that is the best deal for you.
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Northern Virginia Foreclosures-What Don’t You See
March 15th, 2008 Categories: Auctions & Foreclosures
How many foreclosures are there really in Northern Virginia?
This is a question that is getting harder and harder to answer every day. Looking at the MLS will give you some data, not all of it marked by agents in a way that makes it easy to find, the county tax records give you a different set of numbers and then you count the homes that are headed to auction this weekend and not in the MLS you get yet another answer.
So what does this mean for a buyer who is seriously interested in buying a foreclosure property? For most of the clients I talk to it is a matter of timing. We can only look at what is listed either in the MLS or one of the other public foreclosures sources. Obviously looking at the tax records can help identify homes that might be coming into the system in the near future but we have no idea when or at what price those properties may be offered for by the banks and mortgage companies.
For example in Prince William County if you search the Real Property Assessment site for the month of December 2007 between the prices of $200,000-$300,000 you will find 507 sales recorded in the county database. The MLS only shows 134 properties sold in that same period of time and in the same price range. The highest portion of sales was banks “buying” properties as part of the foreclosure process. Now what makes this study interesting is the second part of the analysis.
Checking a few of the properties that were sold back to the banks I then checked the MLS to see if the properties had been listed and if they were what was the list price. I then compared the current list price to what the county records show the banks bought them for in December. Now we start to get a glimpse of the percentages of value that the banks will consider to sell one of the properties. It also gives buyers and agents an idea of how aggressive you can be on your offer price on foreclosures.
| Address | Bank Price | MLSPrice | Status |
|
WINCHESTER CT
|
$167,995 | $114,900 | SOLD |
| 10129 IRONGATE WAY | $181,900 | $119,800 | ACTIVE |
| 10111 IRONGATE WAY | $177,000 | $145,000 | ACTIVE |
| 7813 WEST POINT | $184,500 | $108,900 | CONT |
| 8851 TEAKWOOD CT | $200,000 | $124,000 | ACTIVE |
| 10120 SHILOH CT | $193,500 | $114,000 | SOLD |
Obviously this list is not an exhaustive study there are a lot more properties at a variety of price points to review. Since I am currently working with buyers who are writing contracts on foreclosure properties looking at the price differential is important to determine how significant a difference in price can we expect to have the bank accept. I have one accepted offer now that is 50K below the MLS list price.
If you are considering buying a foreclosure property remember that most properties are sold “as is.” Making sure that you have budgeted not only for the purchase price of the property but the repairs as well is an important part of your consideration to determine whether a foreclosure property is the right home for you.
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Dealing with Sticker Shock When Moving to Northern Virginia
March 14th, 2008 Categories: Military Relocation
Most people hear the term “sticker shock” and they think of cars. For military families with PCS orders to Northern Virigia the term can also explain their first reaction to housing prices in Northern Virginia. Today’s market has helped lessen that shock but it is still something to consider as you decide whether you should buy a home in the area.
One of the many benefits that the military offers is the VA loan which has made a comeback for buyers in Northern Virginia over the last year. The first thing I recommend to anyone with PCS orders to our area is to verify their BAH rate, this will help you with understanding how much of a payment you might be comfortable making. Then take a look at your VA loan eligibility status. If you are eligible then you should go ahead and request your Certificate of Eligibility (VA Form 26-1880) directly from the VA or most lenders will have the ability to request the certificate electronically as well.
Why have VA loans become popular again? Due to the changes in lending rules a VA loan offers the advantage of a low down payment, no pre-payment penalties, easier qualification and loans are assumable which could be an advantage when you go to sell your home in a few years. In our current market the VA funding fee which had been a sticking point for sellers a few years ago is now just part of making the deal happen, easing the way for a seller to see the benefit of accepting an offer with a VA loan.
Once you have looked at your BAH rates, spoken with a mortgage professional who understands the VA loan process (if you need a recommendation let me know), then you are ready to begin to explore many of the great neighborhoods within commuting range of the many military installations in Northern Virginia. Whether you are looking for a condo, townhouse or detached home there are some terrific choices within 30 minutes of the main gate of base.
You can start your search for a new home in Northern Virginia online to get a feel for some of the local communities. Once you narrow down your search you need an agent who is knows the area (I’m a native) and understands military moves then you may want to give me a call. I’ve walked in your shoes from the Far East to Europe and know what it is like to make a military move. I promise I’ll help you through your “sticker shock” and find a place that you will be glad to call home during your time at Fort Belvoir!
A few communities to get your search started:
Springfield Communities
Kingstowne
Belmont Bay
Aquia Harbour
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