I met a new investor the other day and we got into the discussion of buying HUD properties. He thought that these might be better deals or offer some untapped return that others had not found yet. I explained to him that HUD properties can be bought at a very good price but they are like many other properties, you need to know what you are buying and what the purpose of your purchase is. To make a long story short, he wanted to turn these properties into rentals.
Our discussion covered everything from the bidding period (sometimes open to just owner/occupants for the first week and then open to all buyers there after), the diffence in contract from our state forms, to the long process of waiting for an actual signed contract to come back to us (usually the day of closing). I think I overwhelmed him because he left telling me he would get back to me and to maybe look for some multi-family properties for him to look at.
The process of buying a HUD property is long and unusual compared to that of a normal residential purchase but during these times, great bargains can be had. I have sold several in the past few months and they do not seem to be getting easier. However, all of my buyers have been happy and truly feel they got a real bargain so for them, it was well worth the time and rollercoaster ride.
There are currently 41 HUD properties for sale in Jefferson County, MO; 10 in St. Francois County, MO; 3 in Washington County, MO; 2 in Ste. Geneveive County, MO; and none in the counties of Madison and Iron. These properties range in price from $145,000 down to $15,000. You can look these properties up at my website or you can view them on BidSelect.
If you are interested in buying HUD properties, talk to your local REALTOR. He or she will be able to assist you or send you to an agent who is experienced in selling HUD properties. For you agents who are looking for a "niche," I have found this to be frustrating but a constant flow of business and leads. I am averaging about 3 closings a month just from foreclosed properties. The time spent on these contracts is more than usual but it has also led to many referrals and repeat clients. Thanks for reading and have a great day!
Wednesday, September 23, 2009
Friday, September 18, 2009
Mineral Area Sale Statistics for August 2009
I would seem that sales are starting to pick up but I tend to say that softly. July saw a month on 85 residential sales for the area and then we followed that up with 71 residential sales for the month of August. August is traditionally a slower month with school starting and parents not wanting to shake up the household too much with the added stress of moving on top of school.
September is looking to be a very good month for sales and we are only half way through. As I write this, I am encouraged but the tax credit buzz, increased phone calls, and a general good feeling from my fellow REALTORS. Here is a quick breakdown of sale in the Mineral Area for the month of August.
Arcadia Valley
Sold-3 Avg. Days On Market-69
Belleview
Sold-2 Avg. Days On Market-116
Bismarck
Sold-3 Avg. Days On Market-155
Bonne Terre
Sold-8 Avg. Days On Market-118
Desloge
Sold-4 Avg. Days On Market-144
Farmington
Sold-16 Avg. Days On Market-54
Holiday Shores
Sold-1 Avg. Days On Market-88
Lake Timberline
Sold-1 Avg. Days On Market-43
Leadwood
Sold-1 Avg. Days On Market-12
Fredericktown
Sold-3 Avg. Days On Market-115
Marquand
Sold-1 Avg. Days On Market-55
Park Hills
Sold-9 Avg. Days On Market-55
Potosi
Sold-4 Avg. Days On Market-46
Ste. Genevieve
Sold-6 Avg. Days On Market-125
Terre Du Lac
Sold-6 Avg. Days On Market-171
All Other Areas
Sold-3 Avg. Days On Market-92
The total number of residential properties sold were 71 with an average days on market of 92. The average sales price was $97,349. The lowest sales price was $12,500 and the highest sales price was $350,000. Thanks for reading!
September is looking to be a very good month for sales and we are only half way through. As I write this, I am encouraged but the tax credit buzz, increased phone calls, and a general good feeling from my fellow REALTORS. Here is a quick breakdown of sale in the Mineral Area for the month of August.
Arcadia Valley
Sold-3 Avg. Days On Market-69
Belleview
Sold-2 Avg. Days On Market-116
Bismarck
Sold-3 Avg. Days On Market-155
Bonne Terre
Sold-8 Avg. Days On Market-118
Desloge
Sold-4 Avg. Days On Market-144
Farmington
Sold-16 Avg. Days On Market-54
Holiday Shores
Sold-1 Avg. Days On Market-88
Lake Timberline
Sold-1 Avg. Days On Market-43
Leadwood
Sold-1 Avg. Days On Market-12
Fredericktown
Sold-3 Avg. Days On Market-115
Marquand
Sold-1 Avg. Days On Market-55
Park Hills
Sold-9 Avg. Days On Market-55
Potosi
Sold-4 Avg. Days On Market-46
Ste. Genevieve
Sold-6 Avg. Days On Market-125
Terre Du Lac
Sold-6 Avg. Days On Market-171
All Other Areas
Sold-3 Avg. Days On Market-92
The total number of residential properties sold were 71 with an average days on market of 92. The average sales price was $97,349. The lowest sales price was $12,500 and the highest sales price was $350,000. Thanks for reading!
Thursday, September 17, 2009
New Potosi Chamber of Commerce Website
The Washington County/Potosi Chamber of Commerce has a new website. (http://www.potosichamber.com/). Doug Howlett and Kris Richards have worked diligently on getting the website up and running. It is a work in progress but a great added service to the chamber members as well as our community.
What does September hold for Farmington, MO?
Farmington, MO has a lot on the calender for September. The Young Faith In Christ Golf Tournament is scheduled for the 18th. This is their 10 annual event and proceeds benefit programs and events for YFC.
The Farmington Chamber of Commerce (www.farmingtonmo.org) has a full calender of events scheduled (http://www.farmingtonmo.org/calendar.htm) which will provide you with additional information. Please have a look and enjoy the activities our community has to offer.
The Farmington Chamber of Commerce (www.farmingtonmo.org) has a full calender of events scheduled (http://www.farmingtonmo.org/calendar.htm) which will provide you with additional information. Please have a look and enjoy the activities our community has to offer.
Homebuyer Tax Credit Extension
The U.S. Senate is seriously considering extending the $8,000 Tax Credit into 2010. Bill sponsor Josh Isakson is doing his best to patrol the Senate floor and generate support for the bill. The program boosted home sales by more than 1 million and it looks as though this program could really provide the extra push the housing market needs as well as the economy.
REALTORS, bankers, and home builders are all in support of this bill and even hope that there will be more to it than there is currently. All three would like to see the program opened up to all buyers and even extended to investors. The three have joined together and are launching a campaign in support of the extension with the tag line: "Don't Let America's Real Estate Recovery Expire."
President Barack Obama has his economic team researching the impact of the tax credit. His concern is the effect it has on new home sales. The larger concern should be what the effect on housing will be if the extension is not granted as we head into, traditionally, the slower months for real estate sales. Could inaction extend the recession? Many economists believe so.
The Tax Credit officially expires on November 30, 2009. I would like to think that the federal government will do what is in the best interest of home buyers and the economy but at this point, I just hope for some action instead of more research.
REALTORS, bankers, and home builders are all in support of this bill and even hope that there will be more to it than there is currently. All three would like to see the program opened up to all buyers and even extended to investors. The three have joined together and are launching a campaign in support of the extension with the tag line: "Don't Let America's Real Estate Recovery Expire."
President Barack Obama has his economic team researching the impact of the tax credit. His concern is the effect it has on new home sales. The larger concern should be what the effect on housing will be if the extension is not granted as we head into, traditionally, the slower months for real estate sales. Could inaction extend the recession? Many economists believe so.
The Tax Credit officially expires on November 30, 2009. I would like to think that the federal government will do what is in the best interest of home buyers and the economy but at this point, I just hope for some action instead of more research.
Monday, September 14, 2009
Where is the help for Investors?
I know that sounds like a crazy question! I know they have money and it is the small person who needs the help buying a home BUT WAIT! Here me out. I think the federal government should extend some help to investors along with helping the first-time home buyers. This would not just help them but it would help our economy.
First of all, the market has tons of foreclosures out there which will need to be bought in order to help home prices for private sellers. Give investors an incentive to buy these properties. The average first-time home buyer cannot get financing on foreclosures because the homes will not pass stringent inspections and guidelines nor do most first-time home buyers have the liquid finds to fix the home. Investors do!
Second, getting these foreclosures off the market will open it up so HUD can release more foreclosed homes to the market, reducing their inventory, bringing money back into the government, and helping the burden on the tax payer of footing the bill (as usual).
And lastly, it is another economical and practical way to stimulate our economy. The federal reserve does not have to print more money or borrow it from countries that are in recessions themselves.
I know this seems too simple and there are various ways to do this but I just wanted to quickly throw my opinion out there. I know there are several different bills being proposed in Congress right now that would help out different groups (first-time home buyers, investors, all buyers, etc.) but I would like to see them extend the tax credit to buyers and include investors in it. Give them a reason to spend their money in "local" areas which will help the local economies as well as our national economy. Real Estate is a great investment for ANYONE!
First of all, the market has tons of foreclosures out there which will need to be bought in order to help home prices for private sellers. Give investors an incentive to buy these properties. The average first-time home buyer cannot get financing on foreclosures because the homes will not pass stringent inspections and guidelines nor do most first-time home buyers have the liquid finds to fix the home. Investors do!
Second, getting these foreclosures off the market will open it up so HUD can release more foreclosed homes to the market, reducing their inventory, bringing money back into the government, and helping the burden on the tax payer of footing the bill (as usual).
And lastly, it is another economical and practical way to stimulate our economy. The federal reserve does not have to print more money or borrow it from countries that are in recessions themselves.
I know this seems too simple and there are various ways to do this but I just wanted to quickly throw my opinion out there. I know there are several different bills being proposed in Congress right now that would help out different groups (first-time home buyers, investors, all buyers, etc.) but I would like to see them extend the tax credit to buyers and include investors in it. Give them a reason to spend their money in "local" areas which will help the local economies as well as our national economy. Real Estate is a great investment for ANYONE!
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