Green Lake Loop

What’s Up With Those Bank Owned Properties?

Banks are discovering that if they negotiate with the owner, it actually costs them less than if they were to go down foreclosure lane.   This equals a shrinking foreclosure market. 

My clients and I recently went through two separate bank owned property adventures. 

Foreclosure #1:  After 309 days on the market, someone else decided to put an offer on the same  property, on the same Monday morning as us.  Two bids: One house.  Back to the drawing board to put forth our highest and best offer: best man wins.  We felt the home was only good up to a certain price.  So the other guy won as they bid quite a bit higher.   Note:  This is after a week and a half of waiting to hear back from HUD.  In the meantime, other great potential properties were coming on the market. 

Foreclosure #2:  Great neighborhood with tons of potential.  Have you heard this one before?  Under appraised, walk into equity.  Fortunately, we were the only bidders this time.  So after 5 hours of HUD paperwork, over night fed ex packages, multiple visits to the property (de-winterize/winterize), and, atlas, the inspection it was determined that this house should have burned down months ago with hot, faulty wires secured by God knows what.  Rescinded our offer.  I see the equity there but this particular home screams “tear down” not “first time home buyer”. 

House #3:  Six days on the market, motivated sellers, and happy buyers:  Pending.  Set to close next month. 

You can chase foreclosures all day but what buyers really want to see is a cooperative seller with a home that won’t burn down after you buy it.

Seller’s Market! 

ONE month of inventory in Green Lake equates to a seller’s market, indeed.  We haven’t seen inventory this low since 2005 and ’06.  Multiple offers are definitely not unheard of.   Because the inventory is so tight, it’s keeping buyers  squirming in their seats for a solid home in some of our most attractive neighborhoods – Ballard, Green Lake, Ravenna, View Ridge, and Maple Leaf.  Translation:  It’s in-city mania.   

First time home buyer, moving up, scaling down – the target price is all across the board.  A good Realtor will give you a laundry list of “to do’s” to get your home in tip top shape for hitting the market.  Savy buyers still want to see a value (who doesn’t?) and they’ll know when a house is overpriced.  Pricing will always be the pivotal strategy but if the home is clean, well staged or organized and is easy to show, the seller will see their return.

Financing is the biggest hurdle I’ve seen lately.  So make sure you’ve got your financing nailed down first and happy buying!