Short Sales and Foreclosures in Fredericksburg Virginia Area

Jul 21

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Data Derived On 21 July 2010

A few minutes ago I spoke with a financial advisor who works in the same office building as I do.  He informed me that this afternoon, after the Chairman of the Federal Reserve gave a speech, the stock market plummeted.  He said “Sometimes people should keep their mouth shut.”  Since I did not hear the speech, I cannot quote what the Chairman said but, apparently, it did not sound good to the ears of stock traders.

Recently, a learned real estate market guru made a statement that the best thing that could happen to our economy was for the banks, and other lien holders, to get rid of all the foreclosures.  That may be sage advice but what would be the impact on local real estate markets?

My area of interest is the Fredericksburg Virginia real estate market; this includes the following: City of Fredericksburg, Stafford County, Spotsylvania County, King George County, and Caroline County.  In general these jurisdictions are located midway between Washington DC and Richmond VA.

There are 188 foreclosure properties for sale in our MLS.  72 are in Spotsylvania County, 65 in Stafford County, 24 in Caroline County, 18 in King George County, and 9 in the City of Fredericksburg.  Recent census data indicates that the populations of those places (from largest to smallest) are Stafford, Spotsylvania, Caroline, King George, and Fredericksburg.

There are some 300 short sales in those same jurisdictions.  I believe that one could accurately predict that at least half of those homes will eventually end up in foreclosure.  I base this on observing that sellers (those owners who feel unable to keep up making their monthly mortgage payments) are trying to sell at what they feel is a reasonable market value but the lien holder(s) see it from a different perspective.  They are trying to get as close to the amount owed them as they can.  Often this works against both because the market value of a home is predicated on recent sales (which includes all distressed properties).  The recent sales prices are slow to get in to the hands of those making decisions on what is the market price of a specific property.  Could it be an endless circle?

State of the Market – May 2010

Jul 11

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Significant Change

For some reason, I neglected to give you my update on the real estate market for the Fredericksburg Virginia area; this encompasses the City of Fredericksburg, Caroline County, Spotsylvania County, King George County and Stafford County.

For months “short sales” and foreclosures accounted for nearly 50% of the sales in our area.  In May they accounted for 36% of the total real estate sales.

This is certainly good news.  Hopefully, the percentage will continue to decrease.  There are many, however, who have written that there are millions of homeowners who are in serious default on their monthly mortgage payments.  Apparently, it is only a matter of time before mortgage holders initiate foreclosure proceedings.  You may want to check the Free Lance-Star classified to see how many foreclosures take place each week.  This may be a good indication of things to come.

Remember now, I am writing this post after I wrote the one describing the June 2010 market.

FOR SALE BLY OWNER TIPS – TIP 4

Jun 21

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Bad things can happen when you don’t lock up your guns.  Ask any panda or anyone who comes into your home under the guise of being a potential buyer.

Our last blog dealt with locking up any medicine you had.  This one warns you about locking up any weapons you may have in your home.  What more can we say.

I’d bet there would be more people coming into your home that could use an expensive weapon more than they could (or perhaps a better word would be “want”) some prescription medicines for their own use.

I think that this advice applies equally to those living in the City of Fredericksburg Virginia, Stafford County, or Spotsylvania County.  Those living in the rural areas of those counties as well as those in Caroline County and King George County have just as much reason to heed this tip as do those in the more urban areas.

Oftentime gun owners who do not have children are prone to forget they have one in the bedroom closet that a stranger to their home might be able to steal without being noticed.  Naturally, this applies more to a handgun than it does to a Gatling Gun (amazing how the panda knows how to hold one).

Just a word to the wise!

FOR SALE BY OWNER TIPS – Tip 1

May 10

FredericksburgRealtyIncCaroline, Fredericksburg, King George, Spotsylvania, Stafford , , , No Comments

First impressions do count!

Truthfully speaking, if you have the time to spend waiting for someone to come knocking at your door when they want to and not when you want them to; and, you can live with people coming to see your home that may not be qualified to buy it; and, you understand, fully, the laws that deal with real estate contracts and sales, you might be better of selling your home without a real estate agent’s guidance and assistance.  You might want to add an additional part to this equation; you are going to price your home competitively with the current market.

Let’s look at the later sentence in detail.  The majority of homes sold in our area (City of Fredericksburg, Spotsylvania County, Stafford County, King George County, and Caroline County) are sold through the assistance of a real estate agent/brokerage.  The prices the homes sold for probably include payment of a real estate commission.  Therefore, when you want to sell your home without assistance from a local real estate agent/broker, go ahead and subtract whatever you think that commission was from the price you are going to ask for your home.  Buyers are very savvy with this and will see through the price if you don’t.

Back to first impressions.  In all probability, the buyer for your home will drive to it.  They will park their car either in the street, in a parking space, or in your driveway.  No matter where they park you have to make the path from wherever they park to your front door impeccable.  No candy wrappers, no unkempt plants or flower beds, no trim that needs painting; in other words, PERFECTION.

It is a good idea to have a seasonal wreath on your front door too.  That adds that special touch that may separate your home from another they will surely be looking at.

Just some free suggestions to you if you are thinking about being a Fizbo (For Sale By Owner acronym).