Busy

[scooterbug44]

Per the parental units, their local realtors are now pushing foreclosed properties as the new fast money maker...............and the "as is" clause is really coming back to bite people in the arse! :roll:

The sales pitch says that they are getting a $500,000 house for $250,000. I say they are buying a property that is worth $250,000 and had its value overinflated to $500,000 by the frenzy.

 

[SHELLY]

Per the parental units, their local realtors are now pushing foreclosed properties as the new fast money maker...............and the "as is" clause is really coming back to bite people in the arse! :roll:

The sales pitch says that they are getting a $500,000 house for $250,000. I say they are buying a property that is worth $250,000 and had its value overinflated to $500,000 by the frenzy.

And here's a story of how some of the "inflated prices" happened:


"In late February and early March 2007, Chadwick's Sarasota real estate agent, Pat Brester, bought nine Vintage Grand units and immediately resold them to Chadwick at much higher prices, enabling the Tampa investor to get loans that exceeded original purchase prices by nearly $90,000.

Chadwick held the units, which are behind Westfield Sarasota Square Mall, for a year in the hope that real estate prices would rise. But when prices moved in the opposite direction, he filed for Chapter 7 bankruptcy protection, leaving his two lenders -- SunTrust and Fifth Third Bank -- with properties that are now worth at least 37 percent less than what they lent.

"I had to file for bankruptcy," Chadwick said. "Our money was at the point of being depleted and I couldn't carry them any more."........................

http://www.heraldtribune.com/article/20080505/REALESTATE/805050478/1448/BUSINESS


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[Bobby J]

...says the Realtor. ;-)


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Says my wallet...;-)

 

[Bobby J]

Per the parental units, their local realtors are now pushing foreclosed properties as the new fast money maker...............and the "as is" clause is really coming back to bite people in the arse! :roll:

The sales pitch says that they are getting a $500,000 house for $250,000. I say they are buying a property that is worth $250,000 and had its value overinflated to $500,000 by the frenzy.

Some short sales/foreclosure are helping the sellers get out of a huge mess. The buyers are more then happy to take over the property at the new appraised value. What I think is really amazing is how fast the foreclosures are being gobbled up locally. As far as the "as is" clause goes, never buy without an inspection. Not sure how that clause would bite you in the arse if you have a well written contract.

 

[Smiling JOe]

Scooterbug has probably been reading the national news which often mentions homeonwers stripping the house of everything, to sell it off, prior to the bank taking it back. Nightmare stories surely exist, where people take all appliances, cabinets, toilets, fixtures, flooring, etc, to scrape up a little more money and tell the banks to eff off.

 

[30ashopper]

Bobb J, Smiling Joe - How are realtors handling owners who come in interested in listing at +/- ~20K their 2004/2005/2006 purchase price? I see a lot of these listings. To me today this seems unreasonable and I wonder why these folks think they'll get that.

 

[Smiling JOe]

some are taking the listings at that price, others are convincing the seller of lowering the price based on recent sales, or lack of sales at that price, while others are sending the seller away without accepting the listing.

 

[Pirate]

I am so happy to hear deals are being made. This is the time of year and with the great reputation the group of realtors here has I think they will do fine. Property sells in almost any market and the best realtors claim these sales. I would like to point out a simple rule of economics about pricing, however. Unless the inventory is reduced significantly, there is no chance of prices stabilizing or moving upward. I haven't checked in a couple of weeks but 100+ months of inventory in all categories doesn't signal that this is happening.

 

[Bobby J]

I am so happy to hear deals are being made. This is the time of year and with the great reputation the group of realtors here has I think they will do fine. Property sells in almost any market and the best realtors claim these sales. I would like to point out a simple rule of economics about pricing, however. Unless the inventory is reduced significantly, there is no chance of prices stabilizing or moving upward. I haven't checked in a couple of weeks but 100+ months of inventory in all categories doesn't signal that this is happening.

I agree to a point but the markets are all unique and local in nature. 100+ months of inventory is not really an actual number of property that is for sale. As someone said earlier allot of the inventory is bogus. The trick is finding the real inventory and this is the stuff we are selling. Yes Shelly, selling...

 

[SHELLY]

I agree to a point but the markets are all unique and local in nature. 100+ months of inventory is not really an actual number of property that is for sale. As someone said earlier allot of the inventory is bogus. The trick is finding the real inventory and this is the stuff we are selling. Yes Shelly, selling...

... bogus inventory? Is that the vernacular for "overpriced properties" on the MLS?
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