House Sold in Under 36 Hours!

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There are still plenty of buyers in this market!  While sales year-to-date are down approximately 14% over last year, and there are 10% more listings for sale today than last year at this time, buyers are still out there.

On Monday August 27th a listing east of Lake Harriet came on the market for $470,000.  On Tuesday afternoon my clients and I went to see the house.  In the less than 36 hours it had been on the market there were a total of 8 business cards left in the house.  When we arrived there was another agent showing it and while we were there another group came through as well.  I call the agent back that evening to let him know we have interest and he informs me that the house sold that afternoon before we even showed the house!  This home was in top-notch condition in an in-demand neighborhood and was priced to drive significant numbers of buyers through the home… it worked!

Morals of the story:
1. No matter how bad it may be, it isn’t as bad of a market in most areas as people think.
2. A house with the right price, right condition, and right location still sells quickly.
3. Buyers need to be ready to jump on a property if the right one comes along…

Well, I was a Buyer!

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Through the process of inspections I discovered that my soon-to-be home had some major issues that were either unknown to the sellers, misunderstood by the sellers, or were intentionally hidden.  I don’t know what the real story is and it doesn’t matter since I didn’t have the money to fix what I found and wasn’t sure that I could be certain to fix all the problems there.

Morals of the story:

  • Always get inspections!  I’ve seen how many houses and still missed something big!
  • If you’ve got something wrong (or had something wrong) in your house, disclose it!

I'm a Buyer Too, You Know

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After having made an unsuccessful bid to purchase a house via short sale back many months ago, an agent in my office suggested I take a look at a house which I hadn’t considered.

The homes I had been looking at were primarily ramblers (or ranch, or one story, depending on your area).  Actually, I had a pretty detailed set of criteria:

  • One story
  • 3/4 master bath or better (full highly preferred)
  • Big master bedroom (15 x 12 minimum)
  • 1980’s and newer
  • 1500+ sq ft on the main floor (bigger room sizes)
  • 4+ bedrooms (for roommates, office, guest bedroom)
  • Walkout basement
  • Big 2 car garage
  • .4 acre lot or bigger
  • Privacy off back yard
  • Inside the 94/694/100/394/494 NW quadrant
  • Under $375k

Needless to say I didn’t find much for sale!

What I’ve always hated about a traditional two story home (I call it a center stair two story) is the formal living room.  See, I don’t have a piano, don’t read books (Google is my library), and don’t know why you would sit in a room without a TV/DVD/stereo/computer/etc. so I see it as space that I have to fill with nice looking crap that won’t get used!  I LOVE modified two story homes and those with stairs on one side of the house or the other because it eliminates that room but keeps all the other goodies that a two story offers:

  • Separation of bedrooms from living areas
  • Big master suites
  • Most/all bedrooms on one level
  • Bigger room sizes, since foundation size isn’t the issue
  • Dramatic curb appeal (when done right!)

Due to the area I was looking, there aren’t really any two story homes with the floorplan I liked, so consequently I was looking at ramblers.  You have to get pretty big on the foundation size for ramblers before you get those bigger rooms and layout.  So, I made an offer on one in a short sale and several months later found out that we were $40,000 off in price and they didn’t want to budge.  So, bye-bye offer!

I went around and looked at some other ramblers, but none of them really caught my eye.  I was very disappointed and had decided that things were not going to work out right now when one of my coworkers suggested a property she had seen.  She said: “Aaron, I know it is priced higher than you wanted to go and it’s a two story, but it is a really nice house and you should take a look at it.”

I got the address, pulled it up online and decided to take a look.  Long story short, she was right… it was a great house!  Went back with another coworker who thought it was solid too, had him write an offer (more on that in a future post) and some back-and-forth with the seller and now I’ve got a new home!

I’m still doing inspections and whatnot so I don’t want to get into details but needless to say I have a lot of things I’d like to tell you.  Stay tuned for updates!

Short Sale or Bank Owned: Which is Better to Buy?

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If you’re looking to buy a home right now from a distressed seller, be careful what you offer on!

75 days.  That is how long a buyer and I have been waiting for a response from the banks on an offer we submitted for a property in the process of foreclosure, but still owned by the seller.  To get this offer to work, both banks have to agree to a “short pay” or “short sale” since the seller has no cash and our offer is less than what is owed to the banks after selling expenses.  In this case it is two banks (1st mortgage and 2nd mortgage) that we need to agree to the short sale.  By the way- we’re still waiting today…

30 days.  That is how long this same buyer and I waited for a response from another bank on a short sale situation on a different property before we found out they rejected the offer.  I’ve had this happen several times this year with different houses & clients.

1-2 weeks max.  That is how long I’ve waited for an acceptance or rejection on offers I’ve submitted on bank owned properties.  While this is still a frustratingly long time for a buyer, it is at least dramatically less than my experience with short sales.

If you’re willing to wait a(for) month(s) for an answer, short sale properties may be an interesting option.  If you want to move into a house yet this year, maybe stick with bank owned properties or an owner occupied residence.  I’m only half kidding about moving this year… :-)