Foreclosures….

Foreclosures are on everyones minds these days, for that matter, if you attach the words forclosure or default to a property it seems as if the price goes up.  With all of the interest in forclosures, and the money to go with it, not many financially distressed properties in Thurston County are making it past the sherrifs sale.  Although good deals can be found, the “foreclosure frenzy” generated by the media, and web providers such as “Realty Trac” is making the forclosure investment business very competitive.

As the aforementioned “frenzy” wanes, and more properties become REO’s (Bank Owned), I believe real opportunities will present themselves.  Lenders loose money on foreclosed properties, and don’t like to report that fact to shareholders.  There are currently about 60 properties in default within the county (notice filed with courts), and this number will probably go up in the future.  It is inevitable that more and more will become bank owned, and the the banks will want out.  

As a prudent investor, I don’t suggest timing the market; buying right is the key.  The opportunities to buy right will increase as we get into the winter; large inventory, increased foreclosures, and sellers not willing to wait for spring are going to make for some great buying opportunities.

Follow the link for a couple of interesting listings:

View Listings

View Listings link will be available for 30 days. To Search the MLS for more listings follow the link…..click here to search the Thurston County MLS.

The Real Estate market we are experiencing in Thurston County is special in that we have lots of ready willing and able buyers, with an even larger number of homes for sale.  Sellers: Since competition drives the market; Get Competitive.  Buyers: Get agressive; If you want it……ask for it.  Remember:  It’s all in the skill of the negotiator!!

Home Sales in August ‘07:         375            August 2006:      478   

Active Listings in August ‘07:     2155          August 2006:       1730

As the numbers above and below show, the market has slowed considerably in the past year; but for homes sold, prices have actually gone up.  I believe this means that we are being affected by larger (national) market conditions and sentiment (reduction in total sold);  that we have too much inventory and therefore buyers who can be choosy as well as demanding (increase in listings);  and we have an increase in sold prices…..can this be right?  Yes!  increasing prices are the strength in our market.  Time will solve the inventory problem, and when buyers on the fence get over the jitters created by the media the pent up demand is what will continue to make the south sound region one of the few strong real estate markets in the country.

The Numbers

During a listing appointment with a property owner I presented comparable sales as well as active (un-sold) listings to be used as a tool in determining a listing price.  Thru the course of the presentation I was able to demonstrate to the sellers that although the average price of a home sold in their neighborhood was approximately $250, 000, the average price of the listings they were competing with was $20,000 higher.  During our discussion about what we should list the home for, it was immediately apparent to the sellers that they could “wishfully” price their home with the competition, or they could price it in accordance with neighbors who had experienced a successful sale.  This seller chose the logical route (pricing the home in accordance with “sold” comps) and had the home under contract in less than a week.So, you can sell your home in this market, but keep the following in mind:  Prepare your home to show; ensure that it is as “turn-key” as possible; price it at a point that the market will support, and put yourself in the buyers shoes.  You will have a contract in no time.