Realestate

[BlueBee]

What do people think of the real estate market at this point in time?  Has it bottomed out?  Is it a good time to be buying?  I know there are still a lot of foreclosures, short sales, and auctions dragging prices down in some markets.  Any thoughts on buying any of those properties?  How is your area doing?

[iddee]

In my area, the asking price is still high. The selling price is still going down. I know of city house and lot deals available for 20 grand and not moving.

[kathyp]

i bought a foreclosure almost 3  years ago.  it's as good way to save money, but the sale is "as is", so be prepared.  the house i bought needed lots of repairs because the people trashed it on the way out.

in our area, we have not been hit as hard as some places, but the prices are down quite a bit from 5 years or so ago.  i don't think we have quite hit bottom because the govt keeps trying to rescue folks.  we would have, and been done with the mess, if they'd stayed out of it.

if you have the money and are in the market anyway, the interest rates are fantastic.  for that reason alone, it's a good time to buy.

[AllenF]

I have heard here in Georgia, there is a 3 year supply of houses that still need to be sold.   I know that house prices have not come up any in the past several years.    Also still a lot of open or unfinished commercial spaces here.   Unfinished shopping centers to open warehouses.

[BlueBee]

KathyP, since you bought “as is” did you worry about lead paint or asbestos?  A potential $$ problem in homes built before 1978?

Anybody buy any real estate in auction?  My understanding is if the banks can’t unload a property short, or in foreclosure, it eventually heads to auction.  My understanding is the banks really hate auctions because they get the lowest prices and get stuck paying hefty auctioneer commissions.

The market is very odd around here.  Many people are still listing property as if it were 2008.  There are some absolutely crazy asking prices.  They are living in fantasy land as far as I can see.  The foreclosures seem to be going for about ½ the retail listers prices; some of the auctions are simply a giveaway. 

Around here the shorts, foreclosures, and auctions seem to be moving.  If they’re ever cleared out of inventory, my thinking is the overall market would likely to take a leap up.  Clearly the people who don’t have to sell are not willing to cut their prices much below the boom days.  When the underwater stuff is liquidated, buyers will be forced to pay the sellers what they want again.  Does that make any sense?

[JackM]

I am sorta in KathyP's market, we were the boom part right before the bust...all around my house new houses.  All went to forclosure and now have been purchased.  They were all specs and the investors just walked away as they got no down loans.  My home value tripled during that time and is now half that.  BUT as Kathy so well said interest rates are at an all time low.  We just refinanced at 3.25%!!!!! No points either.

As far as buying as investment, if you are able to do the minor maintainence and plan on renting, and will be able to rent it and come out with some extra for maintainence, then yes it is a great time.  There are some real bargains out there, not necessarily repo's either.  Use caution with short sales tho

[SEEYA]

The interesting(?) part in my neck of the woods;
1) the bank , or whoever, forecloses
2) the occupants, move out
3) the new owners , don't even bother to check the property
4) The water lines freeze and break, the insulation becomes saturated, mold/ mildew, floors warp, dry wall disintegrates.....

You would think someone would care?

[kathyp]

KathyP, since you bought “as is” did you worry about lead paint or asbestos?

no, i knew that lots of work had been done in the house over the years.  new floors, paint, etc.  even though the owners trashed the place as they left, i had a pretty good idea what i was getting into.  the worst problem other than the torn up cupboards, holes in the walls, etc. was the old wiring and that was not to hard to fix.  it was code, but not split up properly. 

check tax lien properties.  those auctions are sometimes pretty good.  you need cash and sometimes can do the bids online so that you don't have to stand on the front lawn and bid 

right now in our area, there are tons of houses on the market, but all those folks who have bad credit, have been foreclosed on, etc. are looking for places to rent.  renters are a PIA because there is a reason they are renting instead of buying....but if you can put up with that, you can make some money.  tax write offs can be helpful.  the more work you can do yourself, the more you can save on the fix up.