I want a Foreclosure in Frederick

If I had a dollar for every-time that was asked of me, I would be a rich man. In today’s market, it’s a very popular request. It’s an unfortunate experience for the sellers or should I say previous owners. Frederick MD is experiencing a large amount of Foreclosures, Short Sales and Auctions, but we’re not that bad off. Foreclosures, Short Sales and Auctions happen all the time, even in a good market. Nevada is the worse in the US right now with One foreclosure for every 185 households. (We are so low they didn’t list us on RealtyTrac.)

Right now on RealtyTrac, there are 89 properties listed as Pre-Foreclosure, 225 in Auction status and 31 Bank Owned or what is referred as REO (Real Estate Owned by the bank) These properties are in varying stages in each of the categories. Not all Pre-Foreclosures make it to Auction and Not all Auction Properties make it REO. Sometime homeowners have a hiccup with their career and eventually catch up and are removed from this list. Sometimes they are able to refinance, but sometimes not…

The interest only ARMs that were given out at such a fast and reckless pace in the early 2000s are now starting to hurt some home owners. Lending requirements have tightened up and interest rates that these home owners have after their loan is reset are way to high for them to continue to pay. So there is a troubled family attached to this property…

Now back to I want a Foreclosure in Frederick MD… Do you really want a foreclosure or do you want a good deal? What I find out is the fact most buyers want a good deal. There is this misnomer that Foreclosures are good deals. Remember, you are looking to buy a house from someone (a bank) that has never seen it, nor will they warrant any problems. They won’t fix any problems. Remember the prior owners didn’t have enough money to pay the mortgage…chances are they didn’t have any to do upgrades or repairs. You have to have a large down payment ($10-50,000) in order to bid at the auction on the County Courthouse steps (really). This is usually outlined in the Public Notice in the newspaper classified ads. If you win the bid, you have to produce financing…if not, lose your down payment. (others are bidding on the same home which is driving up the lowest acceptable price) Congratulations!!! Now you get to fix it up and move in!!! Of course the closing price will vary, but I would bet that the actual market price isn’t too much higher than the price you paid.

Now on the otherhand, if you just want a good deal…then let’s take a look at the 2300+ homes that are in better shape and will negotiate price, negotiate repairs and tell you the problems they have had with the home. It’s a great time to buy, just need to get out there and find it.

Frederick Market Conditions September 2007

The Market Reports are out on our Frederick County Association of REALTORS website.  It is pleasing to see the inventory finally level off.   This will help in making the turn, but don’t look for immediate changes in the market.  Settlements were a discouraging 55% below last year with only 123 on the books.  The average price last month went down from last year at $377,700 to $368,346.   The majority of the sales were between $200-400,000.   

The MRIS reports should be released shortly for the month of September.   I will follow up with the number of days on market and list to sales rations when that’s available. 

In the office I have noticeds an increase in our contract activity…so maybe a little light on the horizon for October.

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