Found A Possible Deal
Just a question. How would you interpret a lot of 'for sale' signs in an area where you have found a good foreclosure deal? I just drove to the house to see the neighborhood and house. I could not tell if anyone was still living there. But, what did catch my attention was that there were three 'for sale' signs on that block and the next and the next. Does this mean that I would have difficult time trying to re-sale the house or possibly get a lease option? The area has high Air Force personnel. I am wondering if that has anything to do with the amount of 'for sale' signs out there. Any suggestions on what my escape should be, based on this information?
You can speak with a competent realtor who knows the area. Neighborhood comps can also tell you what has sold in the area in the last 6 months. You can also check the taxes for that area for the past couple of years, has the land appreciated or depreciated? I hope this will help you out a little.
Whether you would have difficulty unloading the property heavily depends on whether what you're currently seeing is "normal" or not. And yes, a competent Realtor can help you establish this.
If what you're seeing is definitely NOT normal, then you may have to lower your asking price to increase demand and shorten time on market. Think supply & demand.
FYI: Remember that BRAC 2005 (base realignment) is on its way and may adversely affect your market. Some "unofficial" lists have been posted online, but they're supposedly all conjecture.
Not sure what normal is for that area. The area is all new, new Target's, Wally Worlds (Wal-Mart's), etc going up all around. It is definately a growth area. They have been threatening to close base for over 10 years now. It is on the outskirts of the valley where housing is cheaper. I think there would be enough equity there, provided that they decide to sell to me, to make something on it.
Quote:
On 2004-02-02 03:30, laburks wrote:
Whether you would have difficulty unloading the property heavily depends on whether what you're currently seeing is "normal" or not. And yes, a competent Realtor can help you establish this.
If what you're seeing is definitely NOT normal, then you may have to lower your asking price to increase demand and shorten time on market. Think supply & demand.
FYI: Remember that BRAC 2005 (base realignment) is on its way and may adversely affect your market. Some "unofficial" lists have been posted online, but they're supposedly all conjecture.
I would say the easy answer to your question is: yes, of course a lot of houses on the market in the neighborhood are going to make selling a house there more difficult.
Supply and demand. As the supply goes up the demand falls and vice versa. However, value determines everything in a sale. If you house has more percieved value than every house in the neighborhood you will be beating buyers off with a stick so to speak. On the other hand if your house has low percieved value compared to everything else for sale then you better be prepared to wait a long time to get it sold or do something to increase the value of it, such as dropping the price or increasing the appeal of it.
In an area with a lot of homes for sale value, as stated before, is key and 9 times out of 10 value for the potential buyer boils down to price. If you under price everybody and not be too greedy your house goes to the front of the line.
Imagine the following scenerio.
10 houses for sale between 93,000 - 99,000 all 3 bedroom and 2 bath built in 1984- 1988.
Now a foreclosure comes on the market that you buy and if you sell it for 95,000 you make 15,000; however, it may take you 4 months to sell it. But if you priced it at 92,900 you make 12,900 but you sell it 3 weeks. I'd take the second option everytime...
Q
This all makes sense as I would also make the same decision if I were trying to purchase in the same area.
Do any of you all have any good pre-foreclosure letters that you use. I am going to have to go back out to the house and I want to leave a letter (postage attached of course) to let the homeowners know that I want o help them. The sale will occur on 2/18/04. This will be my first actual venture/offer. I am getting nervous just thinking about it.
AND how much equity do I have to give them? Do I wait to see if the homeowner brings it up? I am not greedy, but the letter from the freebies suggests that I will give the homeowner their equity. This letter does not sound like what I want to do. Any other good preforeclosure letter suggestions?
Any replies?
Quote:
On 2004-02-03 01:18, db103098 wrote:
This all makes sense as I would also make the same decision if I were trying to purchase in the same area.
Do any of you all have any good pre-foreclosure letters that you use. I am going to have to go back out to the house and I want to leave a letter (postage attached of course) to let the homeowners know that I want o help them. The sale will occur on 2/18/04. This will be my first actual venture/offer. I am getting nervous just thinking about it.
AND how much equity do I have to give them? Do I wait to see if the homeowner brings it up? I am not greedy, but the letter from the freebies suggests that I will give the homeowner their equity. This letter does not sound like what I want to do. Any other good preforeclosure letter suggestions?
Look in the freebies section here and use that one. It worked for me!! Adjust it to fit your needs and go from there. Good luck