This month, after reviewing the sales statistics for last month, I’ll be answering the question above for you.
Last month’s sale were down about 10% from September and 20% from last October. The drop from last year is understandable since it was getting close to the end of the period for the initial tax credit. I don’t know why there was a drop from September to October but one possibility is the problems with the foreclosure paperwork from banks which put a temporary halt to many foreclosure sales.
The trend that I discussed the last several months though has continued. Even with October’s sales being down, there were from 8-15% above where they were in 2007 and 2008 which was prior to the tax credit going into effect. This still appears to show that there has been a continuing, gradual recovery in the market since December 2008 and we’ll keep watching the statistics to see if this trend continues. Take a look for yourself at the chart below:
Chart of Monthly MLS Sales in Pinellas County
Now let’s talk about the exceptional deals. To answer the question at the beginning – yes they are still out there and after discussing the different types I’ll share some examples of ones I’ve found recently.
I’d say they fall into 3 categories: foreclosures, short sales and regular sales.
The foreclosures have always had the lowest prices but have often been in the roughest condition. It’s always risky because the bank isn’t going to be disclosing any problems with the property, in most cases, and some can be a real mess. If you are a contractor or can get remodeling work done inexpensively, then they may be something to consider even if they are in rough shape. But unless you find one that is in pretty good condition except for some cosmetic work, you should be very cautious.
The other problem with foreclosures is the recent brouhaha about the faulty paperwork. This seems to be starting to straighten out but I still would advise you to consult with an attorney to make sure that you are not getting yourself into something that will be a problem down the road.
Short sales can either be great or horrible. The key is knowing which it is before you get too far.
The horrible ones are the ones that take 6 months or more to hear back from the bank and then they either reject the short sale or reject your offer and want an unrealistic price; or you wait for months only to find out they accepted another offer.
The great ones are the ones where you’re getting a great value and the process moves quickly. Typically these are ones where the bank has already done a lot of the short sale process on a previous offer or, even better, where the bank very recently approved the short sale and the price but the buyer hadn’t waited and the property has just come back on the market.
Sometimes you can tell this from the information in the description but that is not always the case. Sometimes I can see information in the field with information just for realtors and sometimes I can look up the history for that property and tell from that, so if there isn’t anything in the description then you can always ask me to see if there is other information elsewhere.
The least complicated of the three types is the regular sale. I call it regular sale even though there may be some unusual circumstances, like being an estate sale or a relocation, but basically this just means that it is not a foreclosure or a short sale requiring bank approval.
I’ve had many clients get very good deals because of some circumstances that motivate the sellers to want to sell quickly, making them more negotiable on pricing. Just this month I came across a house for sale in a very nice golf community in Dunedin with a view of the golf course out the back. The house needs a lot of updating but the location is very good and it appears to be an estate-type sale. The listing agent has told me twice that the current owner wants to sell this quickly and there is no outstanding loans so I know about how much they want and based on what houses in that neighborhood sell for this is a very good deal for someone who is willing to do the updating needed.
I also came across a newer, 3 bedroom 3 bathroom townhouse for sale in Tarpon Springs that is in good condition and is a bank-owned sale at $100,000.
I also found a townhouse in good condition in Dunedin with a boat slip for under $180,000.
Then there’s the 1 bedroom 1 bathroom condo on Clearwater Beach just 2 blocks from the beach that is listed at $99,900.
These will just give you an idea of some of the exceptional deals I’ve noticed recently and posted on my blog. You can see these and any others I’ve found by going to my blog or going to the ‘deals’ section of the blog. I’ve also set it up so you can get email notifications any time I add any new deals and if you want to know how to do that let me know.
I hope that those of you who celebrate Thanksgiving will have a nice holiday later this month and I look forward to seeing you when you’re ready to start looking.
Sincerely,
Ron (727-687-1160)
Copyright 2010 Ron Nedd