Austin TX real estate is low on Foreclosure and Short Sale Listings compared to the rest of the country. I get calls and emails all the time from prospective buyers wanting to buy a foreclosure or short sale property because they can get a "better deal."
Really? What exactly is a better deal? And what happens if what you're looking for can't be found in a foreclosure or a short sale that we look at?
"But Donna, there are so many to choose from, and this is what I'm looking for..."
Really? So many to choose from? Is that because you saw it on the 6 o'clock National News?
Here's the reality check... Currently in the Austin TX MLS, there are 6335 Active "House" listings in the immediate surrounding cities of Austin which include Austin itself, Round Rock, Cedar Park, Pflugerville, Lakeway, and Bee Cave. This excludes Condos, Townhouses, Duplexes, and anything not a "house".
Of those 6335 Listings in the Austin TX MLS, 264 are foreclosures. That's a mere 4.17% of the listings. 215 are short sales which is a mere 3.39% of the listings. Combined, there are only 479 listings that are either foreclosures or short sales which makes up this tiny number of 7.56%.
Wow! Do you see what I mean now? If I show you 13 houses, maybe one of them will be a short sale or foreclosure. But let's reverse things a minute. If you only want to look at foreclosures and Short Sales in the Austin TX area, and we go look at 10 houses, you have to eliminate 76 other houses out of your search even though they might be "the one".
How do you like those odds of finding the right house in a foreclosure or short sale listing now?
By the way, on average, in the Austin TX market, which is different from other markets, Foreclosures and Short Sales are sold fairly close to or above Market Value. Our Market isn't "struggling", per se, like other markets, and the lenders know it. They'll compensate for condition, for example, if a house has a market value of $250k but the house needs paint and carpet to be comparable, the bank will list it around $235k. Some people think this means they're getting a "deal", but when it takes $15k to carpet and paint the entire house, didn't you just break even with the neighbors?
Let me help you understand our market. If you're a buyer in the Austin TX area, let's sit down and discuss your buying strategy. If you're a seller needing to sell, call me today! I can help you with a traditional sale or a short sale. If you're thinking about a short sale, you need to contact me as early in the process as possibly so we can avoid the foreclosure notices that you'll get on your door if you stopped making your payments!
**Are You Packed Yet?**
Donna Harris, REALTOR®
RE/MAX Austin Skyline
www.DonnaHomes.coma
Donna@DonnaHomes.com
Austin TX Real Estate and the surrounding areas of Lakeway, Bee Cave, West Lake Hills, Cedar Park, Round Rock, Spicewood, Circle-C, Steiner Ranch, and everywhere in between... Hill Country Austin TX Real Estate and beyond. Whether you're buying or selling an Austin home, I'll be with you every step of the way.
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Copyright© 2010 By Donna Harris, All Rights Reserved. You may re-blog with links back to this post.
* Austin TX Real Estate - Foreclosures and Short Sales are a Small Part of the Market * was first published on donnahomesblog.com
Glad to hear that your area is still holding strong. I am in a mainly 2nd home/vacation rental investment market and I have all of the foreclosures your customers are looking for!!! Pass them my way. I'm a great referral partner. :)
Ahhhhh...... I have some of those buyers too. They would discount (ie. not see a property) just because it's a non-bank owned. That is just flawed. Takes alot of buyer's education on A good deal is a good deal no matter who is selling.
I turned around "asking" them why is it just Foreclosures they want to see? "Good deal" is almost 99.9% the answer. I said, I've been far too many bank-owned properties going for multiple offer, every buyer trying to outbid each other. And in the commotion, ended up paying market price for a fixer upper, not so perfect home. They were suprised at my answer. Then said, It wont apply to them.
How funny, huh?
How about the buyer that thinks that if they put the first offer in on an REO they can make a low ball offer and get a great deal? More than once I have been at a property taking pictures and been approached by a neighbor that wants to scoop up the house before anyone else and get a "good deal". I guess they think the bank will just jump at the first offer that is thrown at them. I then explain to them how it works, that the home will have to be on the market for a certain number of days before the bank will even look at offers, the bank knows what the market value of the house is, etc. Usually after telling them that they are not so interested anymore.
Gayle, I can imagine the vacation home market has slowed...
Loreena, No one ever thinks it'll happen to them. I have a closing next week where we ended up in multiple offer situation on a foreclosure. We won, and still paid below asking price, but a couple of thousand above where we wanted to be.
Jim, I wouldn't say banks hold offers, as I have never seen that happen. HUD does the 10 days simultaneous bid dates, but not traditional REOs. But they're still not going to accept lowballs right away.
Donna, even though we may have more short sales and foreclosures around here, the number of buyers with totally unrealistic expectations is truly staggering.
Great points Donna. I encounter the same thing all the time. We are fortunate to have such a stable market.
Here's Part 2 that breaks the numbers down even more...
http://activerain.com/blogsview/1860755/austin-tx-real-estate-foreclosures-and-short-sales-in-the-market-part-2
Gabe, Very unrealistic expectations!
Jeff, Yes, I agree!
yes they look so nice but Foreclosures are such tough on to stomach.