Please post your local house search updates, MLS finds, ideas, and links here.
If anyone has any local market observations/open house experiences this weekend, feel free to share them here.
Friday, April 25, 2008
Northern Virginia Weekend Bits Bucket 4/26-27, 2008
Posted by Harriet at 10:51 PM
Subscribe to:
Post Comments (Atom)
10 comments:
Thought as I wait for the 29th for my closing on my new home I would share my experience in buying a bank owned property. My home hunt has been an education in the last few months.
In my new neighborhood (Shadowood - Reston) the comps for the last few months have been in the $200K range. My appraisal came in at $194K on a bank owned property in Reston that was listed at $170K, lowered to $165K and I am buying it at $157K with almost $5K in closing costs.
I personally stayed away from short sales during my search. I just did not want to deal with the waiting for a response. Though I did visit a few to see what conditions were like in comparison to others that I was looking at.
YMMV, but I do think that now is the time for folks to try and buy. One just has to do their homework first.
There are some bank owned properties that were last sold in 2006 and improved to a good degree by the owners that are now bank owned. I can only assume that there are TH's and SF's in similar situations.
What surprised me is that owner occupied units in the community had contracts, while the similar or better bank owned units did not. Not sure of the reason.
I know in my case I was not happy with the requirement to get pre-qualified by Countrywide as a condition of putting in a contract. I already had pre-approval from Wells Fargo going in.
I also can only assume that some agents out there are aware of how difficult it can be in dealing with bank owned properties. The 2 to 3 day acceptance period mentioned in my homes MLS listing was more like 4 to 5 days.
Then there was the amendments (read new contract IMO) that Countrywide required, supposedly over riding the standard NOVA contract. And Countrywide wanted no changes to their contract at all, other than through amendments.
The major delay in my getting a ratified contract (which took almost two weeks) was a clause in the Countrywide contract that stated that there was no guaranty that the appliances would convey.
The concern for me was that these were mid-range appliances in the unit that appeared to be new. We finally came up with an amendment that satisfied all parties.
The next hurdle was once I got the condo docs. There was a major violation regarding the front fire door, and a couple of minor violations. The fire door was a $1500-2500 expense that I was not wanting to pay for. In the end we agreed to split the cost. Had this been a owner occupied unit, I probably could have had everything corrected by the owner.
All in all, I am happy that things are coming to a happy end. The experience in buying my new place is not quite the very happy experience that I had 15 years ago buying my first home.
Much of my frustrations in buying a bank owned property has been my being head strong on "the way things should be done". There were times that I wanted to just walk away. I am an agents worst client LOL. Yes I loved the place, but also realized there would be other properties that was this ones equal.
Advice for those looking at bank owned properties, find an agent that is familiar with dealing with them. My agent had never dealt with Countrywide before. It was an education for the both of us. My agent has mentioned that he is now ready to tackle other Countrywide properties now, and can now set the expectation levels of buyers better.
chip: came in at $194K on a bank owned property in Reston that was listed at $170K, lowered to $165K and I am buying it at $157K with almost $5K in closing costs.
Congratulations again. I see enough slack there for a flat screen TV with a theater sound system.
Don't go nuts though and keep the sound down for the sake of your neighbors.
Thanks again kh....
Yes, I do plan on a flat panel TV for the new home. Thankfully the place is concrete construction, so even a 2.1 surround system won't be an issue I think. :)
I have a budget that I am working with in order to make the place my own. Have to really thank my Depression Era parents for having me well grounded when it comes to spending money.
I am sure they were twirling in their graves with this last bubble....
Chip, I was glad to read your post, because we are negotiating with Countrywide on a foreclosure right now, and both agents keep trying to convince us that Countrywide will not negotiate much.
Please, if anyone can help with this question, I would greatly appreciate it:
Should we stick to our guns with our offer, negotiate in little baby steps, or go right to our absolute limit here and now and tell them to take it or leave it?
Asking price: $491,900
Previous asking price: $499,999
2008 assessment: just over $600K
2007 assessment: about $700K
2006 assessment: about $800K
Apparently good condition, but some improvements need a little more finishing work, and they took some light fixtures/ceiling fans/appliances with them.
5+BR/5BA, granite kitchen, acre on a culdesac, Brazilian hardwood, etc.
offer: $450K
3% seller's concession
(would do home inspection in the interval between verbal acceptance and actual ratification)
counter: $485K
$2500 towards closing, plus will pay for title insurance if we use their title company
Counter came in within hours of submitting offer.
On market for one month, no other offers received yet.
(Chip, we had to do the stupid pre-qual too, even with our pre-approval through Navy Fed. I think they even ran a credit report, which irritates the daylights out of me, since we may be about to lock on an interest rate.)
Seems like negotiations might be fast and furious, which is why I am very anxious to get any and all input! Thanks in advance.
Washington, DC METRO area (MD,DC,VA) made the list at #6 worst market:
In Depth: America's Worst-Selling Housing Markets
http://tinyurl.com/4z6hw3
tabitha--I will offer what I would do in your position. First, I would not go to my max. One's max, by definition, should be one's point of indifference. At your max then you shouldn't care whether you own the place or not.
Second, my rule of thumb when bargaining is that if parties aren't too far apart then the solution is to split the difference. Under your example that would be 467.5. I would not offer that immediately, because another counter-offer may be forthcoming, but it is what I would target. This assumes that your max exceeds 467.5.
chip: Thankfully the place is concrete construction, so even a 2.1 surround system won't be an issue I think. :)
I have a budget that I am working with in order to make the place my own. Have to really thank my Depression Era parents for having me well grounded when it comes to spending money.
Sounds pretty good. Excellent!
The man who owned the company I worked for in the 1990's, sold his business to a tech conglomerate, sold his rural estate, and moved to an apartment in Reston.
He might be your neighbor! No grass to mow, take the elevator to restaurants and shopping, kick back for the good life. If you see a funny old man, bow-tie, skinny, in the elevator, that might be him.
Lance might disagree but Reston is looking like a satellite city of downtown Washington. It's not my cup of tea but my ex-boss is living a good life there.
This might be time for me to buy a flat screen too. Like yours, my parents imparted lessons of thrift.
My TV set is a 20 inch no-name tube from Best Buy, $200 about 6 or 7 years ago!
Remember Tabitha's story of the repo house, loaded with flat screen TV's? My house has 1 set.
I'm trying to decide whether to buy a set now (at about $500) or wait until after the FCC turns off the old TV's.
More PWC recent sales:
12132 PAPER BIRCH LN
$470,000 2/12/2008
$544,973 2/23/2007 (bank takeover)
$700,000 6/30/2006
$670,000 12/20/2005
assessed value at time of purchase: $569,500 (now $470,300)
12108 PAPER BIRCH LN
$406,858 1/25/2008 (bank takeover)
$680,000 1/5/2007
$620,000 8/28/2006
$610,865 7/22/2005
assessed value at time of foreclosure: $556,000 (now $459,200)
8801 YELLOW HAMMER DR
$406,000 1/11/2008
$353,751 12/21/2007 (bank takeover)
$675,000 4/5/2007
$555,990 3/31/2006
assessed value at time of purchase: $497,100 (now $398,300, was $582,100 2006)
8880 SONG SPARROW DR
$410,000 2/27/2008 (bank takeover)
$548,390 12/19/2005
assessed value at time of foreclosure: $450,800 (now $386,100, was $546,700 2006)
14293 SHARPSHINNED DR
$332,500 1/29/2008
$432,776 1/29/2008
$520,995 4/4/2006
assessed value at time of purchase: $379,800 (now $340,200, was $235,800 2006)
9049 MERLOT CT
$445,000 2/28/2008
$433,500 10/12/2007 bank takeover
$629,990 9/29/2006
assessed value at time of purchase: $581,100 (now $474,100)
18107 CAMDENHURST DR
$437,168 2/5/2008 (bank takeover)
$519,000 4/12/2007
$520,571 11/21/2006 (bank takeover)
$683,445 10/28/2005
16148 SHERINGHAM WAY
$429,000 2/4/2008
$449,100 10/30/2007 (bank takeover)
$620,050 7/18/2005
6503 ATKINS WAY
$407,000 2/20/2008
$463,045 9/11/2007 (bank takeover)
$655,640 2/1/2006
OK, I'll stop now. The last few are the most interesting.
14193 CLATTERBUCK LOOP
$466,500 2/15/2008
$564,950 12/5/2007 bank takeover
$710,915 12/28/2005
9565 BALLAGAN CT
$417,000 1/8/2008
$450,000 8/9/2007 bank takeover
$358,825 1/5/2004
13629 AMERICA DR
$440,000 1/25/2008
$492,000 12/27/2007 COUNTRYWIDE bank takeover
$686,204 10/31/2005
assessed value at time of purchase: $561,400 (now $458,700)
12684 LACE FALLS LOOP
$460,800 3/3/2008 INDYMAC BANK FSB
$649,243 4/27/2004
current assessed value: $613,400 2008
12745 VICTORY LAKES LOOP
$435,000 1/30/2008
$455,000 1/30/2008 bank?
$549,900 12/27/2004
$337,265 11/12/2002
current assessed value $452,000 2008
10942 A P HILL CT
$443,543 2/19/2008 LASALLE BANK NATIONAL ASSOCIATIN
$765,435 9/2/2005
last asking price $530K, under contract now
11871 GENERAL COOKE DR
$440,000 1/22/2008
$477,596 11/28/2007HSBC BANK USA NATIONAL ASSN
$653,740 3/31/2006
current assessed value $485,200 2008 (was $368,200 in 2006?!)
11643 IRON BRIGADE UNIT
$425,000 2/1/2008
$574,446 7/5/2005
9242 FALLING WATER DR
$469,500 1/15/2008
$468,000 12/12/2007 BANK OF NEW YORK
$625,670 5/11/2005
current assessed value $483,800
10200 BREEZEWAY DR
$425,000 1/3/2008
$549,801 7/6/2007 COUNTRYWIDE HOME LOANS
$533,965 2/2/2005
*refinanced twice
current assessed value: $441,900
highest assessed value: $536,000 2006
12174 CHESHIRE CT
$470,656 2/26/2008 HSBC BANK USA NATIONAL ASSN
$560,000 10/28/2005
*last asking price $399,000, under contract now
current assessed value: $471,500
9525 MOUNTWOOD DR
$437,000 2/15/2008
$607,138 2/15/2008GREENPOINT MORTGAGE
$715,000 2/15/2007
current assessed value: $445,500 (highest assessed value $587,900 2006)
10655 MOSELLE CT
$465,000 1/23/2008
$690,078 11/7/2007 INDYMAC BANK
$718,153 5/23/2006
current assessed value: $474,800 (highest assessed value $557,300 2007)
12704 CROSSBOW DR
$460,000 2/4/2008
$507,771 8/8/2007 US BANK NATIONAL ASSOCIATION
$247,300 9/14/1995
current assessed value: $581,400 (at time of purchase $645,800)
10645 HERON RIDGE CT
$403,380 2/22/2008 INDYMAC BANK
$615,000 2/1/2007
8312 RUGBY RD
$425,500 2/27/2008
$659,526 11/5/2007 CITIBANK NA
$788,000 5/3/2006
$175,000 3/2/2005
current assessed value $573,600
11841 COLORIVER RD
$467,400 1/11/2008
$483,036 3/20/2007 DEUTSCHE BANK NATIONAL
$277,000 10/16/2000
assessed value at time of purchase: $614,100 (now $498,500)
YIKES.
I was reading the Sunday paper, and I found this statistic in a front page article about foreclosures and crime:
3,344 foreclosures in PWC for the YEAR 0f 2007
1,497 foreclosures in PWC for the MONTH of March 2008
284 foreclosures in PWC 3/2007
1,497 foreclosures in PWC 3/2008
427% increase
In an earlier article this year, I saw that 306 foreclosures happened in February 2008. So the number jumped from 306 to 1,497 one month later!
What does this mean?
Post a Comment