Home Buying in Durham>Question Details

Kaedae, Both Buyer and Seller in Durham, NC

I'm seriously considering buying in Grove Park - Linkside. I am concerned about the foreclosures and shorts sells. How does this affect?

Asked by Kaedae, Durham, NC Fri Aug 6, 2010

neighborhood? Are there more rental properties in this neighborhood? How does this affect resale?

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Interesting question so I did some digging and noticed that there are roughly 41 listings currently in Grove Park but only 4 are officially listed as "distressed" properties. By distressed I mean (foreclosures, short sales, auction, bankruptcy, etc). Keep in mind that this is relative because some agents may not classify they listings as short sales so they wont come up in a search as a short sale. I also looked at closed sales within the past 6 months and found 23 homes sold that were NOT distressed vs only 4 homes sold that were distressed. There is a current 9.6 month supply of housing which is pretty high. I would suspect that this would have more of an impact on values than the short sales or foreclosure. As far as the rental properties go, I feel that this would be a factor if the homes were not properly maintained. Otherwise, you would have to do A LOT of research to find out which homes were rental. Overall, I think Grove Park is a very nice community considering its age and one of the nicer communities on the eastern side of Durham.

You do need to be very aware of values in the neighborhood as well as the surrounding market. Make sure you have a good handle on housing values for comparable property in the Grove Park community as well as the surrounding East Durham market.

I wish you the best!
2 votes Thank Flag Link Fri Aug 6, 2010
Hello Kaedae, You did not say why you are buying a home at this time. If you are seeking your "forever" home or if you are planning to stay in the home you buy now for at least 5-7 years, this could be an area for you to look seriously. Northeast Durham has a lot going for it: especially, proximity to RTP as well as Duke; homes in that area are often newer; and, even before the collapse of the mortgage industry, more home for the money. There are tentative plans to have a new shopping mall in Durham County on the Wake County line. The low prices might bring in investors who will lease the homes until selling prices rise again; people who cannot sell their homes might lease them out. If you buy in Grove Park, I would advise you to become active in the HOA to ensure that properties are kept in a manner that will not detract from value; and I have to say this is the same advice I would give any homeowner in any neighborhood. This is a great time to buy if you can.
1 vote Thank Flag Link Fri Aug 6, 2010
Kaedae - I recently had a listing in grove park it sold in under 30 days and there was 43 other homes for sale at the same time. The buyers of this home I sold, are happy with their purchase. The property appears well maintained and the owners there seem to take lots of pride in their homes and the grounds. You can get a lot of home for your money with crown, dental and very convenient to RTP. We are in a down economy and yes there are some foreclosures in grove park and in other neighborhoods. I can say that I also was looking for a similar property for another client and I was unable to find anything comparable where you could purchase a home over 2300 sq feet at the prices and the low HOA that grove park residents pay. If you are not already working with a real estate professional I would be pleased to show you gove park and other similar properties however this does seem the only with these amenities for this low dues.

Deborah Rigsbee Miller, Real Estate Broker
Coldwell Banker HPW - Southpoint 919-491-2826
1 vote Thank Flag Link Fri Aug 6, 2010
Hello Kaedae
I live near Grove park and have sold many homes there. It is a great neighborhood and has a lot of walking trails and much more to offer. Unfortunately it was hit hard with foreclosures and "distressed" sales, I see that as a great opportunity for you the buyer if your plans are to live there at least 5 years and the home you choose has been cared for reasonably well. Make sure you choose an Agent to help you thru this process.
Michael
Web Reference: http://www.colvinm.hpw.com
0 votes Thank Flag Link Sat Aug 7, 2010
Kaedae-

Some good insight and feedback from other agents here on the neighborhood. It is always smart and savvy to be working with a Buyer's agent who can help you and protect your interests, but it is CRUCIAL if you are going to buy a Short Sale or Foreclosure home. There are any number of things you need to be aware of and it can be a more complicated and frustrating process. Sometimes they can proceed just like a normal sale, but other times there are issues and risks. Be sure to work with an agent who the experience to see the problems coming and, more importantly, how to handle them and the resources to bring in. I am currently handling two of these transactions and can tell you they are entirely different and required a lot of extra work. I've been certified by the National Association of Realtors in Short Sale & Foreclosure Resource (SFR) and would advise you be sure to work with a SFR certified Buyer's Agent. Best of luck with your home purchase and let me know if I can be of help in any way.
0 votes Thank Flag Link Sat Aug 7, 2010
Hi Kaedae,
I am an agent who actually lives in Grove Park-Lakeside, and there are a lot of interesting things going on in the neighborhood.
One thing that I have noticed that wasn't the case in the past is that the appraisers are incorporating foreclosures and short sells into their analysis when they go to value the property for a new mortgage.

I was trained not to used these unique transactions when I provided a market analysis to a client, but with 30% of all transactions being foreclosures and short sales they are not so unique, and now need some consideration.

If you need any help, or would like to go over the data together call me at (919) 399-2313.

Best,
Bryan Yonish
0 votes Thank Flag Link Sat Aug 7, 2010
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