April, 2008
Banks holding notes on short sales in the Fredericksburg real estate market, if not all across the country, have once again shown themselves dedicated to the recovery of the market. (The previous statement was dripping with sarcasm, if you didn’t get that.)
Last night I received a call at around 7:00pm from one of my clients. This client has been very patiently searching for a home. He has put several offers in on bank owned properties, only to wait weeks to be told “no” to his offer. Two weeks ago one of his offers was finally accepted, and since then we have been waiting to receive a ratified contract from the bank. The loan process, things like ordering the appraisal, title, and insurance, cannot begin without a ratified contract.
This bank, that is controlling the property, did not send the ratified contract until yesterday, and now they are stating that the transaction still needs to close on the 15th of May. And, if it doesn’t, the buyer will be required to pay an additional $250.00 for a two week extension.
Keep in mind the bank has full control of getting the ratified contract back to us, and they are the one who is is holding up the process. I called the Realtor on the other side, who stated he understands the frustration, but that this situation is controlled by the bank that owns the property.
Keep in mind not all banks work under these conditions, in fact Chase was the only bank I have encountered who has done this, until… last night at 10:15pm. At that point, I received another email from a client, who was in the very same situation on a short sale contract. This client was told that if they didn’t close the transaction by May 10th, then the contract is void. And, again, the bank did not ratify the contract until yesterday!
I do everything possible to close transactions sooner than the scheduled close date. Often times we are ahead of schedule, but it requires cooperation on everyone’s part that includes the other side. These banks have shown a complete and total lack of cooperation, then throw up nearly impossible hurdles to overcome.
The bottom line is this, if banks continue to act in the manner that these two banks did yesterday, then they almost singlehandedly will stop the forward momentum the Fredericksburg real estate market began a few weeks ago.
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Category : Blog
Community Name: Vista Woods Real Estate
Market Category: Stafford Virginia Real Estate
Single Family Homes in Vista Woods
Homes For Sale in Vista Woods (This link searches only homes for sale in St. George’s Estates)
Homes For Sale in Vista Woods Average Price: $272,215
Average Days on Market: 114
Vista Woods Homes Under Contract: 8
Average Price: $248,563
Average Days on Market: 106
Vista Woods Homes Sold Last 30 Days: 4
Average Price: $235,625
Average Days on Market: 258
Vista Woods Absorption Rate: 5.3 months worth of home inventory is presently on the market, based on the current rate of sale. This absorption rate reflects only the market with this specific community, and not for the entire Stafford real estate market.
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Category : Blog
Blogging is becoming a popular platform in the real estate industry. There are a multitude of reasons for that. High on the list for a lot of real estate agents is that search engines look favorably upon updated, relevant content. Static real estate websites do not change content very often.
BUT… blogging is a LOT of work. I spend a couple of hours each day on this blog. Writing articles, researching data, and following up on questions and emails I receive. Because it is a lot of work, MOST real estate agents do not do very well at blogging. This opens up doors to other entrepreneurs, who have started “Ghost Blogging” for Realtors. These Ghost Bloggers write real estate content for a fee, and post it to Realtor’s website.
I have a real problem with Ghost Blogging, and guarantee that you will never see this site written by a Ghost Blogger. Real estate is a hyper local industry, and the general material produced by most Ghost Bloggers do not meet the standards of why I started this site. My goal was, and still is, to provide a local resource specific to the Fredericksburg real estate market, which for the purposes of this site, includes the City of Fredericksburg, and the surrounding counties.
Ghost bloggers cannot produce data for home sale statistics in local neighborhoods, like local Realtors can do, and like we do here on a regular basis. They cannot have the data specific to local market conditions, and local events that affect real estate.
A reader recently told me that he learned more from this site in one month, than he had from other Realtors in three years. That is EXACTLY the mission for this site, and no Ghost Blogger can recreate that effect.
So, when you visit this site, you can rest assured that you are getting information relevant specifically to the Fredericksburg real estate market… today, and always.
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I want to join my brother in honoring Matt Maupin. If you are unfamiliar with the name, Matt Maupin, this article tells the story. Please pray for Matt’s family.
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Category : Blog
A buyer’s market, such as the one we have in the Fredericksburg real estate market, means a lot of good things for buyers. Things like great prices, closing costs paid by the sellers, potential down-payment assistance from the sellers, and more. These are the things that are driving buyers back into a position to buy real estate in Fredericksburg. The Stafford Real Estate market, and other surrounding counties are seeing a nice pick up in market activity because of these conditions as well.
An interesting nuance for buyers, in a buyer’s market, is dealing with builders. There are two distinct scenarios buyers encounter when buying new homes in the Fredericksburg real estate market…
- Homes that are already built, or under construction, and
- Homes that are “to be built.”
With homes that are already built, or well on their way to completion, often builders are more likely to negotiate favorably with buyers. They have capital that has been laid out, and they want to recoup expenses, and generate whatever profit possible.
However, with homes that are “to be built,” in many cases the expenses incurred are far less. Many builders today are not even breaking ground until they have a ratified contract in hand. As a result, with many builders, buyers will find the builder far less ready to negotiate as favorably on a to be built home, as they would on one that is move in ready.
The upshot of that is that buyers may lose many of the benefits of a strong buyer’s market, when buying a “to be built” home. I am not saying you shouldn’t purchase one of these homes. I am saying, that the Fredericksburg real estate market is one where buyers should not be sacrificing much on terms, conditions and pricing.
I understand, and I advise here that each situation is unique, so choose the property you wish to purchase carefully. Understand the value of what you are purchasing. That value must include cash layout for closing costs, and any terms of the purchase that have financial impact on the value today, and in the future.
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The Fredericksburg real estate market has been, well… interesting, to say the least over the last few years. There has been an abundance of people trying their very best to time the market, to figure out when to buy real estate. It’s nearly impossible for most people to time the market perfectly. However, a lot of buyers have suddenly stepped back into the marketplace, all across the country.
I had an interesting conversation with a buyer today. He is buyng a home, that was sold less than a year ago for $520,000. The price my team negotiated for our buyer on the home now? $370,000. And, the basement has had $30,000 to $40,000 worth of improvements since the $520,000 purchase. Anyway, as we spoke, he asked, “If I ever decide to sell, when should I do that?”
I think the answer lies in two examples. Joe Kennedy’s actions regarding the stock market in 1929, and our own real estate market in 2004 and 2005. Joe Kennedy (the Kennedy Patriarch) stopped on his way to work one day to get a shoe shine. While shining his shoes, the boy gave Joe Kennedy a stock tip. Joe proceeded to dump all his stock immediately. When his stock broker asked why, Joe replied, when the shoe shine boy is in the stock market, the market is too popular for it’s own good, and cannot go up anymore. The stock market crashed shortly thereafter.
In the Fredericksburg real estate market in 2004, and 2005, the market was too popular for it’s own good. People were buying real estate in Fredericksburg, like they would buy candy at the grocery store. And, we all know what happened afterward? The market crashed.
Joe Kennedy immediately repurchased his stock, at a significant discount after the stock market crash, and made a mint. Those who are buying now, stand to make a lot of money on their Fredericksburg real estate purchases.
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Community Name: St Georges Estates Real Estate
Market Category: Stafford Virginia Real Estate
Single Family Homes in St Georges Estates
Homes For Sale in St Georges Estates (This link searches only homes for sale in St. George’s Estates)
Homes For Sale in St Georges Estates Average Price: $393,794
Average Days on Market: 186
St Georges Estates Homes Under Contract: 5
Average Price: $356,204
Average Days on Market: 53
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Category : Blog
Off the topic of real estate…. This afternoon a young lady on the JV softball team I coach, slid in to home and injured her ankle. After being evaluated at the hospital, we learned that she fractured her ankle in multiple places. She will be evaluated by an orthopedic surgeon, to determine if surgery is needed.
I knelt with her in the dirt at home plate, comforted her, and prayed with and for her, while waiting for transportation to the hospital. It suddenly occurred to me, that as a coach, I viewed this young lady as one of my own. Even though I have only known her as a competitor on the softball field, I have come to learn that she is a kind spirited young lady. I wanted to ask this evening, that if you would, please pray for healing and comfort for my friend, Rachael and her family.
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Category : Blog
Community Name: Park Ridge Real Estate
Market Category: Stafford Virginia Real Estate
Single Family Homes in Park Ridge
Homes For Sale in Park Ridge (This link searches only homes for sale in Park Ridge)
Homes For Sale in Park Ridge Average Price: $368,276
Average Days on Market: 83
Park Ridge Under Contract: 8
Average Price: $314,174
Average Days on Market: 117
Park Ridge Homes Sold Last 30 days: 6
Average Price: $320,417
Average Days on Market: 136
Park Ridge Absorption Rate: 4.2 months worth of home inventory is presently on the market, based on the current rate of sale.
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Category : Blog