Many people think that consumer confidence is rising. The stock market sort of quashed that idea yesterday, but to those who still think that "things" are getting better. Let me tell you the story of 32205 and the houses in this market. Now 32205 comprises parts of Murray Hill, Avondale, and Riverside.
In 32205 I see that there are 189 properties in "Pre-Foreclosure" which would mean they are behind on their mortgages, 44 properties set for auction with an auction house, and 191 bank owned properties. That's 424 properties that we show are either foreclosed or on their way to foreclosure, in 32205 alone.
How does your neighborhood rank?
Where did you get that information?
Friend's a realtor. Its in MLS, if you know where to look.
If you subscribe to RealtyTrac, it's there too and you can get the address. My house is at 1211 Hollywood. I have mine listed for $149 (last appraisal was 179k...yeah, right). The house directly next to mine is an REO (real-estate owned...bank-owned), and just went on the market for $115k. Nice. The one across the street was an REO and sold a year or so ago after sitting empty for at least a year. I'm in 32205. There are houses 2 blocks or less from the river in Avondale that have been on and off the market over the last 4 years which are now listed for more than $150,000 LESS than the original listing price...just saw one that is listed for over a million for sale, but they have it listed for LEASE also at $1500 a month!!!!! Over 4000 sq ft, on the water and $200 less a month than I'm paying for rent in TX for a 2000 sq ft home which backs up to a busy road.
I live in Avondale, I wish I had the cash to live on the river with a 1400 per month payment. Dang!
1211 Hollywood is a nice looking house. I wish you well in your sales efforts. As my friend pointed out to me, people are buying and selling. The house next to you is listed in MLS as a 3/1, but there is no way it is a 3/1, and it needs a LOT of help on the inside. No way it goes for 115k in this market. The house across the street from you was on and off the market for some time. The guy who used to own it is in prison or was at least in Raiford for murder. We looked at it as a rental, but the problem for us was US17, and that lovely train in the middle of the night. Don't get me wrong, our rental property on Dellwood in Riverside and Green Street in murray hill are loud too, but I think you can see the window frames move right there along 17.
Appraisals are going to fall through the floor this year. With all the empties, I would not be suprised to see the Mayor come crying to voters for another 14-20 percent tax increase. He only has the power to use property taxes on the 300,000 of us with property. He's been there 6 years and he has yet to lobby the State to fix the sales tax code so that he can raise the sales tax on all 800,000+ people who live in Duval County. I am really unhappy that those of us with property (even though 2nd homes and rentals don't get the help provided by Tally) get screwed by the property tax increase.
It will not get better any time soon. I have been trying for several months to purchase a short sale town home. The sellers bank is Suntrust and they are murder to work with. They own a glut of houses that are in pre foreclosure, foreclosure and short sale status. They were given 3 billion in the bailout and they keep stringing us along. I want to buy the house, the seller wants to sell it, but Sun trust keeps giving us vague days when it will have an answer to our offer. Now we are told it will be sometime over 60 days vefore they get back to us. I am going to have to cancel the contract and move on. I was in a situation to help someone sell a distressed market home, help a bank avoid foreclosure costs, and get in a home at a reasonable price, but it looks like it will not happen. You would think with bailout money, they could stiock up on short sale analysts and get things moving. Until these bank owned homes move, any legit sellers are going to have to compete with these houses, unless they get someone like me who is sick of the process and wants to move to a seller now.
Avoid the short sales, I have heard more stories than I have fingers and toes of banks losing paperwork submitted once, twice, three or more times. They are so overwhelmed in the real estate offices. Even if you find a property with one bank (SUNTRUST IS MY EXAMPLE) where there is a first, second and Line of Credit, they STILL fight amongst each other for the best value. So avoid a short sale, if possible.
You could get a real estate attorney to write a deed for you, I can't remember the exact name, but that way you could get in line when and if the bank gets back to you. Or you could rent the place back to the owner, the cost of the primary loan, and that way the loan gets paid, and Suntrust doesn't know or care who you are.
Banks took the bailout money to protect their own ass, plain and simple. They are scared TO DEATH over what is yet to come with the next round of foreclosures AND the COMMERCIAL market which has yet to implode.
If you find a Bank Owned/REO that the bank has listed with an agent, you know there is a clean title and they want to get rid of it. That is your cue to low-ball the you know what out of it and take advantage of them.
So if theya re scared of the next round of foreclosure, why not try to get as much off the books as possible before then? I just don't understand.
Check out this story from Channel 4:
QuoteMan Attacks Realtor Agent With Hammer
Police Say Man Was Hanging Around Real Estate Office, Learning Names, Routines
POSTED: Wednesday, July 1, 2009
UPDATED: 5:12 pm EDT July 1, 2009
JACKSONVILLE BEACH, Fla. -- A 57-year-old woman attacked by a man with a hammer at a beaches real estate office Tuesday afternoon is recovering and the man accused in the attack is in jail charged with attempted murder.
According to the Jacksonville Beach police, the woman was working in her office at All-South Realty in the 3000 block of South Third Street just after 1 p.m. when Richard William Medeiros entered and said he wanted to buy a house. The victim told police that she spent about 45 minutes showing him available properties on the computer before he pulled out a hammer and struck her on the back of the head.
According to the arrest report, the victim wrestled the hammer away from Medeiros before he could hit her again, then stuck him with it. The real estate agent in the neighboring office told Channel 4 he chased Medeiros out of the building and threw a paperweight at him and followed him to a wooded area behind the office and waited until police arrived.
Officers using a K-9 located William hiding in a shed. When the K-9 was released, Medeiros gave up. He was transported to Shands-Jacksonville Medical Center for injures.
According to the report, a knife was found on the ground beside Medeiros when he was arrested.
Investigators learned that Medeiros had been seen around the business over the past three week and they believe he was learning the agent's names and routines.
"He had a hammer. He hit her with a hammer," said a caller to 911. "Please send an ambulance."
The woman attacked was treated and released for her injuries. She told officers she believed he was trying to kill her.
Medeiros was in a wheel chair when he appeared before a judge on Wednesday.
Channel 4's Vickie Pierre had other questions about the attack, but Jacksonville Beach Police Department’s public information officer refused to grant an interview because he said he was upset with WJXT over a story the station aired over the weekend about parking at the beaches.
Since I was already on MLS, I thought I would check the numbers myself because they seemed awfully high.
In 32205, there are currently 80 homes on the market that are either REO or pre-foreclosure/short sale status, of a total of 304 homes on the market. So 26.3% of the homes on MLS are in that status.
How does that compare with a random sampling of zip codes;
32216 69 of 202 homes= 34.2%
32246 82 of 217 homes= 37.8%
32244 176 of 436 homes= 40.4%
32208 100 of 303 homes= 33%
32211 55 of 208 homes= 26.4%
Not sure that 32205 stands out as a zip code with a particularly high percentage when you compare with the rest of the City.
Do you have the numbers for the areas of town with 32206, 32209 and 32254? Springfield, Edward Waters, and Paxon would be of great interest. I wonder how many in 32223, old Mandarin. They you have the new items in 32246 (SJTC), which you state at 37.8% 32277 in Arlington, and 32211 in the old Regency and Arlington areas.
Isn't real estate fun?
Those zip codes were just off the top of my head because I do most of my work in those areas. I am curious myself about Northside and the far Westside where there are a ton of newer subdivisions with homes purchased from 2005-2007. I think the exurbs got hit pretty hard especially when you did 100% developer financing and you're now competing with the same builder to sell your house.
I'll check the numbers tonight. Either way 20-40% of homes on the market in that title status is not a good thing. Even for buyers, because short sales are a nightmare and can waste 6 months of a buyer's and agent's time and most foreclosures aren't in good enough shape to obtain FHA financing (which is basically the only game in town for most buyers).
A lot of signs you might be seeing in Riverside/Avondale might not be "for sale" signs, but "for rent" signs. There are a huge number of apartments, duplexes and homes for rent popping up in the last months. Someone I know in real estate said that the newer apartment complexes in the suburbs were offering special move-in deals with lower rents and free months so that a lot of people in this area who were in the duplexes and garage apts. have moved out there.
If you're looking to rent in Riverside/Avondale, there's a good chance you can negotiate on rent. I called a few property owners and first asked if they were renting because the property was for investment or they needed to cover the mortgage. Approximately half stated they didn't want to foreclose.
That's when I asked if the asking rent was firm and they hesitated before answering. To help them along, I asked how long the property was on the market before deciding to rent. Then I asked how long the rental has sat vacant. One was willing to discount as much as 25%. For others who said the asking price was firm, I asked whether they would rather have zero rental income or income at a discount. That's when all of them said they would give at least a 10% discount.
In these times, based on my initial experiences, negotiate rental prices. There's nothing to lose. The owner/landlord has the property and credit to lose.
Just my two pesos.
Good ideas, all of them! I am purchasing a 2/1 in 32205 for around 60k today, with comps in the area of 175, and a little upgrade work, I am loving the real estate flip market at the moment. Its much easier to buy and flip now than it was in 2007 at the high of the market, much less pressure.
I can see buying being easier now, but selling?
It's unfortunate for those who are unprepared for the cyclical nature, but for those who are prepared, it is investment buying season. I've got at least 35 years to retirement and will be happy I'm gobbling every dollar from my employer's 401(k) and Roth IRA matching.
As for real estate, I am one step closer to further diversifying my portfolio. :)
I don't know about mtrain, but my focus is multi-family properties, such as the building I'm currently in. With the resident landlord upstairs, perhaps the tenants will either respect the property or cut me.
Who knows anymore in Riverside? Haha.
Quote from: JaxNole on July 03, 2009, 09:44:30 PM
It's unfortunate for those who are unprepared for the cyclical nature, but for those who are prepared, it is investment buying season. I've got at least 35 years to retirement and will be happy I'm gobbling every dollar from my employer's 401(k) and Roth IRA matching.
As for real estate, I am one step closer to further diversifying my portfolio. :)
Your right, I'm looking at buying a retirement place in downtown St. Augustine that I would have had no opportunity to buy
just a couple of years ago. I picked up a couple of great trucks for my business at a bankrupcy auction.Key is not getting caught up in the Hype, any kind of bubble always pops. Real Estate collapsed in the Mid eighties, we've had the Tech bubble in recent memory, for the older folks there was the Collectible stamp bubble, believe it or not in the late 70';s. And of course the great grandaddy, the tulip bulb bubble.