Archive for June, 2008
This post strays from my usual posts geared to buyers and sellers in Northern Virginia. The information may be of interest to you as well but it is geared to other agents who may think that they have found a new niche in today’s market
I just finished reading the umpteenth blog on how real estate agents should be marketing themselves as short sale specialists in order to generate more business. As an agent who has successfully completed a few short sales and have a few more in the works it seemed this might be a good time for a reality check.
Going back over the call logs on my current short sale listings started me thinking of all of the other components connected to a short sale that an agent stepping into their first short sale may not consider.
Time spent gathering and reviewing the short sale package
Time on hold with the loss mitigation department
Time on the phone with the loss mitigation department
Time spent of the phone with the negotiator
Time spent of the phone with the appraiser/BPO agent
Time on the spent with agents answering questions
Time on the phone with buyers explaining a short sale
Time spent talking to buyer’s lenders
Time spent gathering HUD-1’s to go with offers
Time spent processing offers
Notice the list doesn’t include the normal tasks associated with a listing which are required in order to attract buyers. Those tasks need to be added on top of the time spent specifically on short sale tasks. Add on top of this the fact that lenders are notorious for slashing commissions at the end of the negotiations process and an agent working with a short sale may find that instead of making X commission they are only getting Y for all of the extra hours of work.
Considering the National Association of Realtors® shows that the average agent earns $35,000 per year, deciding to be a short sale specialist means an agent seriously needs to consider the old adage time is money. Agents, especially newer agents, who might be considering advertising themselves as a short sale specialists might first want to get out their calculators and figure out the value of their time. You may be surprised that the time it takes to finish a short sale transaction only leaves you enough to fill your car with gas and not much more.
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It’s New, It’s Huge and It’s Extraordinary
June 18th, 2008 Categories: Focus on Prince William, Out and About
Our stomachs were rumbling and when we opened the refrigerator door all we found was a bottle of ketchup and a can of tuna fish. We were desperate and knew that the time had come; we had to make a trip to the grocery store. Our mailbox had been filling with coupons and store specials from some new comer to the area and we decided oh what the heck lets check them out.
So off we went for what we thought would be a simple run to the grocery store. As soon as we pulled into the parking lot I was ready to run the other way. But I was outvoted and in we went. It was HUGE. I’m talking MEGA. And it was crowded. I can’t remember the last time I saw that many people at the grocery store at one time. Especially on at noon in the middle of the week. Don’t these folks have jobs somewhere?
Could I find goat cheese? Yes about 10 varieties. Could I find seafood? Absolutely and some of it was not anything I had ever seen in this part of the world before. Vegetables including the “dreaded” tomatoes, with “it’s okay to eat these signs”, were front and center. The list of what you could find or not because the store is so big is incredible.
Despite my protests we managed to spent time checking out what we might want to eat should we want to get a bit more exotic than our easy and light summer cooking. The thought did cross our minds to pull up a chair at the seafood bar and have some oysters but we grew up with the mindset that you don’t eat oysters in a month without an “r” in it so we passed. Plenty of other folks were filling up the chairs both at the seafood bar and at the outside patio with prepared sandwiches.
So what is this new and extraordinary addition to Prince William County? It is Wegmans. Part of the new and upscale stores planned for the Shops at Stonewall situated between Route 1 and I-95 off of Nebesco Road. If the crowds at Wegmans are any indication of how long the residents of Prince William County have waited for the store to open, then the county planners have made the right decision.
It might take me a little while to get up the courage to fight the crowds again. In the meantime we have enough food to keep us happy for awhile.
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What is Hot in Northern Virginia Besides the Weather?
June 13th, 2008 Categories: Auctions & Foreclosures, Buyers Corner, Focus on Prince William, Local Market Updates
Sales in Prince William County would be the answer. Sales may be stagnant in other parts of Northern Virginia but buyers are flocking south to Prince William to take advantage of the lower prices and great bargains in the area.
Check out the total sales comparisons between 2007 and 2008 in two zip codes in Prince William County.
So why the sudden interest in Prince William County? Obviously it is due to the significant price drop which has happened over the past year.
Neighborhoods in 22191 include both the newer subdivisions of Port Potomac, Belmont Bay, Rippon Landing and River Oaks. Older neighborhoods such as Georgetown Village, Marumsco Woods and Newport have been some of the hardest hit with foreclosures. Neighborhoods in 22193 include Dale City, Lake Terrapin, Winding Creek Estates and Pearsons Landing.
Does this mean that Prince William County is out of the woods yet? No as there are still a significant number of properties for sale and there is anticipation that more foreclosures will be coming on the market through the summer. However as new properties are listed the expectation is that we will see additional price reductions in certain neighborhoods in Prince William County creating even more values for savvy home buyers.
For investors, who are looking to buy and hold for a few years, and particularly buyers who are looking for a new home that falls well within the limits of a FHA or VA loan there are terrific homes and neighborhoods to explore. From the starter home in Lake Ridge to the luxury mansion in Haymarket you can find a deal in Prince William County.
If you are interested in exploring your options in Northern Virginia give me a call. I’ll travel the highways and back roads of Prince William County looking for a deal for you.
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Another Get Rich Quick Real Estate Scheme
June 10th, 2008 Categories: Auctions & Foreclosures, Buyers Corner
This morning in one of those can’t sleep moments I turned on the TV and the latest infomercial on how to make a fortunate buying foreclosures was running. It was one of the many that the unsuspecting public hears everyday. The premise in all of them is the same. Approach a homeowner facing foreclosure and save them by buying their home for what they owe. To make them feel better about their financial situation tell them “you aren’t in foreclosure your house is.” Then you can turn around and sell the home and pocket an enormous sum of money in 30 days.
Anyone who has worked with a “pre-foreclosure” knows what is owed on the property is often more than the current market value of the property. So the idea that you can walk away a short time later with a profit is simply ludicrous. Second if the home is in “pre-foreclosure” in order to buy it at less than owed is called a short sale and it requires lender approval. The property is not being sold for pennies on the dollar but at today’s market value. There is no huge profit waiting for you when you lock up the property and there isn’t another buyer you can assign the contract to, the bank won’t allow it.
Now I’m all for anyone who wants to make money in this market. I’m an investor and am on the lookout for properties that would bring positive cash flow as an investment and a positive return on my money in the long term. In today’s market this is the strategy that is going to make buyers millionaires. It won’t happen overnight and it won’t happen in a year. It happens one property at the time over period of time. It is a strategy that involves finding a good value in an area where you want to live in or where you can see a positive cash flow as a rental property.The infomercial gurus aren’t getting rich flipping properties in today’s market. They are getting rich selling books and workshops. Don’t be misled about how to make money in buying foreclosures. Talk to an agent who is in the trenches in your area. Talk to a financial advisor or an accountant. Don’t buy into the infomercial hype. You could end up being the next homeowner facing foreclosure and when your house is in foreclosure you are too!
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