Snow?!?!

Selling luxury real estate in Savannah, GA is not always easy. Being an associate real estate broker who recently added the Short Sale and Foreclosure Resource certification from the National Association of Realtors® and since new nationwide numbers are saying almost half of all real estate transactions are now in this category, I thought I would try to simply explain the difference and the ramifications to our neighborhood and your home value.

A Short Sale is when a property is sold for less than what is owed on the property while a foreclosure or real estate owned (REO) property is sold by the institution who has taken the property back from the owner for non-payment. Being “underwater” means that a homeowner owes more than the home is currently worth, weather they are in default or not. Traditionally foreclosures were few and appraisers would overlook them as comparables, such is not the case anymore. Foreclosures hurt neighborhoods, they drive down the values of surrounding homes and cause more homeowners to become underwater and the cycle is tough to pull out of.

Ardsley Park has seen a few foreclosures, but overall has held much of its value with home prices back to 2006 levels. What we all need to be aware of is that a short sale which typically sells slightly less than the current value is the best option for homeowners needing to sell whereas a foreclosure has typically sold for 50-60 cents on the dollar. Short Sales are becoming very popular with the lending institutions who really don’t want the physical property and the government has new guidelines for the banks to assist sellers in the process. In short, all neighbors should perceive a short sale as an effort to preserve their home value and as an opportunity for new neighbors to move into a home that might have been slightly more than they could spend on a home. Remember that the person trying to sell in those situations are having a hard time and are trying to do the best they can with their current situation. Look out for them and support them, because the person you help may just be yourself.

I am currently at the News Place auction in the ballroom at the Avia hotel and will post results as they come. Check back below:

Unit 201 — $330,000 (+10% Buyer’s Premium) = Final Price: $363,000
Unit 202 — $365,000 (+10% Buyer’s Premium) = Final Price: $401,500
Unit 203 — $350,000 (+10% Buyer’s Premium) = Final Price: $385,000
Unit 204 — $330,000 (+10% Buyer’s Premium) = Final Price: $363,000
Unit 205 — $385,000 (+10% Buyer’s Premium) = Final Price: $423,500
Unit 206 — $375,000 (+10% Buyer’s Premium) = Final Price: $412,500

Unit 301 — $350,000 (+10% Buyer’s Premium) = Final Price: $385,000
Unit 302 — $350,000 (+10% Buyer’s Premium) = Final Price: $385,000
Unit 303 — $335,000 (+10% Buyer’s Premium) = Final Price: $368,500
Unit 304 — $330,000 (+10% Buyer’s Premium) = Final Price: $363,000
Unit 305 — SOLD before auction ($400,000+)
Unit 306 — SOLD before auction ($400,000+)

Unit 401 — $335,000 (+10% Buyer’s Premium) = Final Price: $368,500
Unit 403 — $330,000 (+10% Buyer’s Premium) = Final Price: $363,000
Unit 404 — Penthouse $825,000 (+10% Buyer’s Premium) = Final Price: $907,500

Unit 502 — $330,000 (+10% Buyer’s Premium) = Final Price: $363,000
Unit 503 — $390,000 (+10% Buyer’s Premium) = Final Price: $429,000

Unit 602 — $335,000 (+10% Buyer’s Premium) = Final Price: $368,500

My expectations were realized when I received the new Armstrong Atlantic State University Economic Monitor, I was happy to see a leveling out and a focus on housing.  The second graph shows the increase from 1/2 to 2/3 from last year in housing starts bolstered mainly by first-time homebuyer activity.  Remember the tax credit will end on December 1st and with renewal will probably drop off starts in the second two quarters of the year.

While the news is not upbeat it is confirming the slow down in the rate of decline in our area but as Dr. Toma has said “the economy may be entering the initial phase of stabilization prior to recovery, but that the foundation for an immediate recovery is not yet present.”  To take adavantage of the federal tax credit call me today to discuss your options.

To view the full report please download it here: 

  AASU Economic Monitor 2nd Qtr 2009 (707.3 KiB, 94 hits)