Roost - Latest Comments in Real Estate Poll Question - Foreclosures vs Traditional Listings

Re: Real Estate Poll Question - Foreclosures vs Traditional Listings

RE_Guru — Fri, 22 May 2009 18:44:49 -0000

No...those who say too many variables are marketing mavens, not dealing with their own money.
When the foreclosures have exceeded traditional sales it indicates your notional homeowner has thrown up their hands and determined, locally, that their loss, long-term mind you, is worth the foreclosure. RealtyScoreCard. amongst others, is a joke if they expect otherwise...The RE market is centric to owners/buyers perceptions, the variables and metrics are clear in THIS scenario.

Re: Real Estate Poll Question - Foreclosures vs Traditional Listings

@derekmassey — Wed, 04 Feb 2009 07:31:38 -0000

The two additional factors you need to take into account are (1) Is the region filled with second homes? and (2) What is the underlying reason behind the foreclosures/dropping house prices? Florida may be a great place to buy now if you are buying investment property/second home. We know why Floriday is struggling. Too much, too fast. Compare that to an area that has similar foreclosure rates but has more primary residences and is supported by a local industry which fails. Even with identical FC rates, I would look at Florida as the opp, but the latter community as the "wait and see".

Re: Real Estate Poll Question - Foreclosures vs Traditional Listings

Sherry Chris — Wed, 04 Feb 2009 05:38:17 -0000

Sales data required to really know the answer.

Re: Real Estate Poll Question - Foreclosures vs Traditional Listings

Dawn — Tue, 03 Feb 2009 19:40:23 -0000

"B" - It is a buyer opportunity... & "C" It is rediculous to think it is a reflection of the market... too many variables for the reason of foreclosure to make an assumption of the market.

Re: Real Estate Poll Question - Foreclosures vs Traditional Listings

Property Qwest — Tue, 03 Feb 2009 18:05:29 -0000

It definitely can mean "Buyer beware". If you are rehabbing properties the next potential foreclosure sale (soon to be comp) may be 10% under what you just bought your home for depending upon the negotiated terms. Hence, bye, bye, profits.

On the flip side of the coin, if you are a first time home buyer, you found a house you love, negotiated good terms, and took advantage of these cheap mortgage rates, I'd say that looking back in five years (in consideration of many current local market conditions) you will be more than happy that you hopped off the fence and made a move.

The potential scenarios and market variables (as others have stated) are countless which would make it impossible to chose any option other than "C".

Re: Real Estate Poll Question - Foreclosures vs Traditional Listings

Ira Serkes — Tue, 03 Feb 2009 18:03:09 -0000

Insufficient Data. I can make good arguments for A, B, C or none of the above or all of the above.

B.S.Ch.E 1970 Cooper Union
M.S.Ch.E 1974 UMass Amherst

Ira Serkes

Re: Real Estate Poll Question - Foreclosures vs Traditional Listings

Danilo Bogdanovic — Tue, 03 Feb 2009 17:49:42 -0000

If you were to ask consumers, you'd most likely get "A" as the answer.

If you were to ask me, I may be cautious of what "A" describes, but I would need more information ("C")to make a final conclusion.

Re: Real Estate Poll Question - Foreclosures vs Traditional Listings

JohnLauber — Tue, 03 Feb 2009 16:59:34 -0000

I too would have to go with C. Too many factors and depends who's buying. Now where did I put my crystal ball?

Re: Real Estate Poll Question - Foreclosures vs Traditional Listings

LeftCoastOracle — Tue, 03 Feb 2009 16:57:52 -0000

Too many variables involved. What else is happening in the neighborhood?

Re: Real Estate Poll Question - Foreclosures vs Traditional Listings

Carla — Tue, 03 Feb 2009 16:47:40 -0000

I agree with Steve. I have to go with C because A and B are too general of a statement. Too many other factors come into play. Also depends on why you want to purchase...whether for a home or investment.

Re: Real Estate Poll Question - Foreclosures vs Traditional Listings

Audra Carpenter- RealtyScoreCa — Tue, 03 Feb 2009 16:46:02 -0000

Hmm reading the comments above I see there are many perspectives and lots of right answers. Your questions are to vague because we all know in real estate you can structure a deal in many different fashions and still come out in a closing.

But if forced to only choose one option, I would have to go with C. Just to many variables. To a would be homeowner, they may see the market as a or b, very black or white. But as a professional in this industry we can make many different scenerios work no matter what the market, its our job.

Great way to get folks thinkin' though:)

Re: Real Estate Poll Question - Foreclosures vs Traditional Listings

Steve England — Tue, 03 Feb 2009 16:12:52 -0000

I have to go with C because A and B are too general of a statement. Too many other factors come into play.

Re: Real Estate Poll Question - Foreclosures vs Traditional Listings

Susan Paige — Tue, 03 Feb 2009 15:50:55 -0000

I like b, but need to realize if there are so many foreclosures in a city, then it will be a while for that city to recoup. The economic impact upon the town will be felt for a while. What does that mean for the home as an investment? For an owner/ occupant it can be a great opportunity. It is all relative to the city, situation, homes. Many are in such disrepair, but there are some which are beautiful.

Re: Real Estate Poll Question - Foreclosures vs Traditional Listings

Joel McDonald — Tue, 03 Feb 2009 15:50:11 -0000

Not trying to be difficult, but I have to go with C.

Not that it's a "rediculous" way to look at the market, but foreclosure rates are only part of the equation.

* What's the sample size?

* Are you talking about that city only, or is this happening in the entire metro area?

* If it's isolated to a certain area, why is that? There could be an environmental reason that might mean you should run away from that "buying opportunity" as fast as you can.

* Any number of other variables could be the reason for the increase in foreclosure rates & without knowing a lot more info, it's impossible to answer such a general question.

Re: Real Estate Poll Question - Foreclosures vs Traditional Listings

Craig Barrett — Tue, 03 Feb 2009 15:49:17 -0000

It depends on each specific market, which sometimes are as granular as neighborhoods, and the buyer's situation. Each is different and there really isn't a general answer for each specific transaction. Could be A, B or C, or none of the above.

Pull the data, analyze, present and discuss. Lather, rinse, repeat...

Re: Real Estate Poll Question - Foreclosures vs Traditional Listings

Bob Schenkenberger — Tue, 03 Feb 2009 15:47:03 -0000

I think the answer is "C" In any given market there are submarkets that buck the trend, so it always depends upon the specific property, and the specific deal.

I like Heather's answer, it is certainly a great time to consult with a professional!

Re: Real Estate Poll Question - Foreclosures vs Traditional Listings

Matt — Tue, 03 Feb 2009 15:37:14 -0000

Lean into "a"..but if you're going to buy, buy as low as you can get that offer accepted for...and I don't mean 10-15% off either! Especially if it's distant where you can't or don't even have to look at the place...

Re: Real Estate Poll Question - Foreclosures vs Traditional Listings

Robert Brett Curtiss — Tue, 03 Feb 2009 15:28:38 -0000

a) Buyer beware - it means that market is headed for a fall

Re: Real Estate Poll Question - Foreclosures vs Traditional Listings

Heather Elias — Tue, 03 Feb 2009 15:15:23 -0000

D. None of the above

(You know I had to be difficult ;) )

Whether or not it is an opportunity depends on the individual buyer and what their needs and goals are. Which is why the "it's a good time to buy" or "it's a good time to sell" are both silly slogans in my opinion..but 'it's a good time to talk to a real estate pro and see if the market conditions mesh with your goals' doesnt have the same ring to it..

Re: Real Estate Poll Question - Foreclosures vs Traditional Listings

Tony Lazzari — Tue, 03 Feb 2009 15:03:11 -0000

Too broad a generalization. What are your buyers objectives is where I start.
If they are looking for distressed property fix for rental, great opportunity. Housing will recover. In the end, foreclosure ratio is just one way of many to look at the market.
Thanks!

Re: Real Estate Poll Question - Foreclosures vs Traditional Listings

St. Louis Commercial Buildings — Tue, 03 Feb 2009 14:47:52 -0000

Its BUY OPPORTUNITY! There is money to be made in this market….and opportunity everywhere!

Re: Real Estate Poll Question - Foreclosures vs Traditional Listings

Lori Bee — Tue, 03 Feb 2009 14:43:31 -0000

C. As well...

Each situation bears analyzing for sure. Some foreclosures are great, BUT some are higher than what a motivated seller in a less overburdened neighborhood, will do on a "clean" home with less hassles. Just because a locality seems to have a glut of REO's, doesn't mean it's time to buy there, or that it's still falling.

The competition is strong out there from motivated builders & sellers too, who know what they are competing against. If you just look at REO's, you may miss the easy boat for your client.

Re: Real Estate Poll Question - Foreclosures vs Traditional Listings

VickiLloyd — Tue, 03 Feb 2009 14:41:46 -0000

I guess my answer is "C" because there are too many other factors to consider.

Depending on the long term viability of an area, the distressed inventory can create opportunities for buyers to get more leverage but you always have to analyze the numbers for each individual home and circumstance.

Re: Real Estate Poll Question - Foreclosures vs Traditional Listings

roostblog — Tue, 03 Feb 2009 14:26:26 -0000

Sorry about the hard math Brady. Just trying to stop the spam. I'm going to put a calculator widget in there soon. Thanks for the answer.

Re: Real Estate Poll Question - Foreclosures vs Traditional Listings

Brady Pevehouse — Tue, 03 Feb 2009 14:23:31 -0000

I thought you wanted me to answer a poll, not do math, what kind of captcha is that... had to break out the calculator for 5+9 c'mon now!!

To your question..... its a buying opportunity.
A real investor would be doing a little research and figuring out which lender had a large hold on the properties in foreclosure and working out a huge discount.
Naturally a smart investor would be buying to hold... get over the get rich quick and flip in a year or 2. Must plan on holding 7+years but a sounds like a steal of a deal opportunity.