This is what I overheard yesterday. Two gentlemen were talking and one asked what the other did.
“A little commercial real estate, some foreclosure stuff, you know.”
The other guy said, “I am waiting for the prices to come down further before I get back to buying foreclosures.”
They walked away and I missed out on the rest since I am not an active eavesdropper, just an casual one.
I guess I should go check out a court house auction to see how many foreclosures are making it that far but it seems that short sales are getting done. I don’t think our prices have eroded, even from the “froth” time when sellers were looking at 11+ offers, that there should be many homes that are 30% down from their loan vaules, though there are likely some.
Interestingly prices would possibly be more stabilized based on data. Appraisers and Realtors® (I hate using the symbol but I have to) use the RMLS for the majority of their comparables. Short sales often sell for less than market and it is through an agent. Foreclosure auctions will be recorded by the county but not in the RMLS.
Also short sales are for the patient buyer or investor. But not many people will take this into account while trying to price a home, though I did talk to an appraiser who says he tries to leave out short sale and bank own properties from his comparables because they are not the same.
