Home property value survey

bulletandpima
Sun, 29 Jun 2008 22:24:07 +0000

my client in VA is only looking at foreclosures, mostly to tear down and rebuild. One property they are looking at 75% of the homes were bought in the boon and torn down, even in the downturn, the new props sold last May 07 for 1.4 mill. I have been fortunate, many of clients have the money and now are getting in low! IMHO for NO VA we are starting to see the cycle begin to turn. Major builders are not opening new subdiv., and now the GCs and small builders can afford to buy, tear down and still turn a profit. Also the person who has been in their property for 10 yrs can take their time, sell their home and upgrade at a fire sale price.

The very worst thing the govt can do is get involved. The newest proposal is 4 Billion will be given to each state to buy foreclosed props. In Va., that wouldn’t even cover 1 county! (Saw 30 foreclosures in 2 days with 100k spread…@350K…10 mil, that is just for props between 300-400K that they wanted to see, there were at least 123 props in forclosure, thus in total = 400Mil Dale City is listed as top 10 in the nation for active, so lets say 500 million…now add in higher or lower price ranges and the 95 Beltway Bandit corridor would most likely be at 4 Bil for 2 counties. Add in Richmond, Frederickburg, Petersburg, Norfolk, the state probably has 12 Billion active foreclosures. Now the state owns homes, what are they going to do with them our govt is not in the bus. of owning homes!he state and how do they decide which one will be sacrificed and which one will be bought by the state?

The same is true for the banks, they own mtgs, but they don’t want to be in the real estate bus. By creating a moratorium on foreclosures will not help either. The banks will still have the note, taxes will have to go up to absorb costs, and banks will pass on the debt to new home owners in funding fees, thus, the only person really hurt is the one that didn’t cause the problem.

This is a free market society, let the pieces fall where they may, the market will correct itself and then it will go in an upturn. When the fed govt gets involved it only creates more problems. I am a Realtor with @30 mil in sales under my belt, I make my living in selling homes, if I thought the bail-out program was a good idea I would be on board. However, I do not know 1 realtor who believes this will help, it is the exact opposite, everyone believes it will kill real estate.