Do foreclosure homes in celebration actually achieve anything close to the target prices published on this site? If not what is a realistic?

Asked by Thomas, Celebration, FL Tue Dec 15, 2009

I am a cash buyer but have no idea what to bid if i turned up at an auction.

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13
Marty Kaiser, Agent, Orlando, FL
Tue Dec 15, 2009
BEST ANSWER
Hi Thomas,

Great question, some info on sites is more accurate than others. The sale prices at foreclosure depend on a number of variables, condition of property, what other similar distressed properties have sold for over the past 90 days, how many buyers are bidding on a home etc. That is where a skilled Broker comes in, sharing with you their expertise, negotiating strategy, what you should expect to pay for a particular home etc.

Also, the type of auction has an effect. If you are buying at a courthouse auction, more unknowns are present. You are not able to make your purchase contingent on an inspection, you must have all of the funds needed by the end of the business day etc to purchase. If you are going to be bidding on line , that is another way to purchase via auction and the last way is the typical auction right at the property by an auctioneer. Most of the foreclosure generally speaking are still listed with a Broker, you are able to not only view the home but make your offer contingent on inspections etc.

If you are interested in more info/data and possible future real estate assistance, please do not hesitate to contact me. I am quite well versed with Celebration property.

Sincerely,

Marty Kaiser
Accredited Buyer's Representative(ABR)
Licensed Real Estate Broker/Associate
marty@floridasells.com
407-595-9700
Keller Williams Mega Agent
"Excellence, Experienced, Enthusiasm & Ethics"
Web Reference:  http://www.floridasells.com
0 votes
Voices Member, , Benton County, OR
Tue Dec 15, 2009
Thomas

Why don't you give these sites a look that provide free information from the County...

Scheduled Mortgage Foreclosure Sales
http://www.osceolaclerk.com/civilcalendar_mf.pdf
http://www.osceolaclerk.com/foreclosures.htm

BidOsceola Tax Certificate Sale
https://www.bidosceola.com/

TAX DEEDS
Verified as of 12/09/2009
http://198.140.240.30/dt_web1/or_sch_1.asp

This may come in handy .....http://publicrecords.onlinesearches.com/Florida-Foreclosures…

You may wish to browse through this also....
The Banks and the Gov. have created web sites for the Public so they can get answers directly from them on how the process works and view their Properties (REO&GOV foreclosures) listed for sale...Free and updated constantly

Sites like these...https://servicing.chase.com/REO/Property/FeaturedProperties
http://www.nhmsi.com/ ... http://www.homepath.com/ ... http://bankofamerica.reo.com/search/propertysearch.aspx

You can find the links to these Bank and Gov sites here..Free ...
http://www.mortgagenewsdaily.com/wiki/REO_Database_List.asp
http://www.biggerpockets.com/bank-reo.html

Good hunting, Dunes
2 votes
Helen Fair-M…, Both Buyer And Seller, Davenport, FL
Tue Jan 5, 2010
Hi Thomas,

I recently bid for the first time at auction, having attended 4 over the past year to get a feel for how it all works. I attended with a UK client who didn't want to bid himself. We did lots of due diligence on the homes/area he was interested in, obviously we viewed the property first - didn't want any nasty shocks after purchase. We also had a termite inspection done before bidding. He didn't feel the need for a property inspection because he runs a home maintenance company in the UK and was comfortable with the property condition and what needed to be done.

He let me know what amount he was comfortable bidding up to and we went for it. We got the home for $30K under the already (low) listing price as an REO. The buyer is very happy with his investment and knows he had a bargain.

It was enjoyable, on my part, but a little tense. You need to have a strategy and not get too carried away if you end up in a bidding war - I guess you have to know at what amount you draw a line and stop. Also, for that reason it is useful to view a few properties prior to the auction so if you are outbid on one you can still fall back on a couple of others. Make sure you understand the auction terms and conditions and you have all the relevant documents/evidence of funding. You would be amazed how many homes sell multiple times at the one auction event - obviously because the bidder has not got the required docs or finance in place.

Good luck - it's a great day out! If you want any further information don't hesitate to contact me.

Regards
Helen
Property Locator / Real Estate Personal Shopper
(USA) +1 (407) 403-5656
(UK) 029 20 026 218
0 votes
John Bennett, Agent, Orlando, FL
Tue Dec 15, 2009
I will leave it to you to get end to the fine hair of "many" or some or none
0 votes
Mark LeMenag…, Agent, Lake Nona Orlando, FL
Tue Dec 15, 2009
What do you mean you "think the claim was"? Scroll down the page and reread it. The claim was "many sell within 5% of asking price." To the extent that 1/3rd constitutes many, then Brian's statement is true.
0 votes
John Bennett, Agent, Orlando, FL
Tue Dec 15, 2009
Mark, like i say I am just learning here.

Others like you have to do the math as all this is way above my paygrade! but

what was said is

the asking price by the banks wayswith in 5% of the sales price.

What i did was :

draw a area around celerbration
ask MLS for all the listings in celerbration asking for a average

then ask (in the very same area) sold prices averages in the past 3 months.
data results (switch from listings to solds in 3 months)

i think the claim was: sales price was with in 5% of asking price.

I only reported the data, you all smart people should report the results

Jon
0 votes
Mark LeMenag…, Agent, Lake Nona Orlando, FL
Tue Dec 15, 2009
Hey John, give poor Brian a break, it's only his 5th answer. What I really like are the answers where the info after the signature is longer than the answer itself.

But back to the numbers. Your analysis compares apples to oranges which of course gives you fruit salad (A 45% reduction between list and selling price? No way.) What you need to do is compare the asking and sold prices of the SAME houses. Of the 100 distressed sales in Celebration YTD, 1/3rd closed within 5% of original asking price, which I guess can count as "many". 2/3rd's closed with reductions of more than 5% off original asking, with the median reduction being about 17%.

And of course none of this get to the heart of Thomas' question about how to bid at an auction.

Have fun, Mark
0 votes
John Bennett, Agent, Orlando, FL
Tue Dec 15, 2009
i learn every day. Today I learn Brian tells us the "Multiple List Price " (and I must admit I don't know what this is) the bank says is within 5% of the sales price.


just for fun I ran a search to find 145 listings in Celebratioin at a average of $ 807,765

Then I ran solds exact same area in last 3 months and average of $ 451,147.

Does this look like the 5% Brian talks about???

As An economist I am always working on numbers and I find these fun.
Hey Brian is $451,147 with in 5% of $ 807,765???
0 votes
Mark LeMenag…, Agent, Lake Nona Orlando, FL
Tue Dec 15, 2009
See my imported table did not work that well. I'll put it on my website as well.
0 votes
Mark LeMenag…, Agent, Lake Nona Orlando, FL
Tue Dec 15, 2009
Hi Thomas,

The foreclosure prices found on this site are based on court information and do not give much indication of what a property might actually sell for. They are really just a notice that that papers have been filed ar court.

In terms of your question let's look at the numbers. There are 255 active properties right now and there have been 275 closings year to date. (There are also 93 pending right now. The vast majority are short sales and most of those will never close.)
(I'm going to import a table, never tried this before here, hope it works)

Active in Celebration By Sales Provision

Active Normal Bank Short Total
Condo 66 7 27 100
Single Family 113 4 21 138
Townhouse 12 0 5 17
Total 191 11 53 255

Median $ @ Sq Ft Normal Bank Short
Condo 197 124 111
Single Family 204 138 162
Townhouse 191 0 98
Total 201 129 130

YTD Sales in Celebration

Sold Normal Bank Short Total
Condo 74 39 17 130
Single Family 81 17 18 116
Townhouse 20 8 1 29
Total 175 64 36 275

Median Sq Ft Normal Bank Short
Condo 146 104 105
Single Family 178 139 149
Townhouse 141 95 74
Total 161 112 126

So realistic maximums at a courthouse steps auction would be right around $100 per square foot for condos and $140 for single family. If you are actually looking for your own home to buy, then the "normal" numbers are a good guide as to what homes here fetch in a non-distressed state. Also, keep in mind that your main competition at the court house will be the bank that holds the primary mortgage on the property. They will not let you get it too cheap.

Please note that Celebration is unusual in that distressed sales do not account for more than half the market here. Home values have fallen, but Celebration has held up reasonably well.

Hope this was helpful. I publish lots of data on my website.

Good Luck,
Mark LeMenager
Weichert, Realtors - Hallmark Properties
(Celebration resident for 3 years)
0 votes
Brian Chisho…, Agent, Celebration, FL
Tue Dec 15, 2009
Hello Thomas,

If you are referring to the Multiple List Price established by the bank and listing realtor the answer is yes. Many of the foreclosed homes sell with in 5.0% of the asking price. If the home is price right it will typically go under contract within 10 days or so. Homes over the $500,000 price point tend to remain on the market a little longer. In many cases there are multiple offers on properties. In these cases it is not uncommon for a home to sell for more then the asking price. The key is to act quickly when a foreclosed home appears on the market.

I've owned a home in Celebration since 2000. I current live in and work the Celebration real estate market. My office is also located in the Main Village area of Celebration on Celebration Ave. A good realtor will make sure you do not over pay for a home. He/she should provide comparable home sales before an offer is placed. A realtor can also negotiate the many contingencies neccessary to help protect you, the buyer.

Please feel free to contact me with any questions you may have.

Best Regards,

Brian Chisholm, Realtor, GRI
Accredited Luxury Home Specialist
407-414-5444 (Direct)
407-566-0522 (Fax)

2009 Recipient "FIVE STAR BEST IN CLIENT SATISFACTION" Award
2008 TOP PRODUCER - Keller Williams Realty At-The-Lakes
Listed in the June 2008 edition of Orlando Magazine "HOT 100 REAL ESTATE'S BEST"

Working with YOU...
to make DREAMS come TRUE!

Keller Williams Realty At-The-Lakes
504 Celebration Avenue, Celebration, FL 34747
0 votes
Richard Step…, Agent, Celebration, FL
Tue Dec 15, 2009
Hello Thomas,

there is no yes or no answer. Pre foreclosure homes or Short Sales prices are set by the Listing Agents with the home owner. Some times they are realistic sometimes not. They may be to low to be accepted by the lender and they could be too high to attract a buyer. As John already mentioned, you should have assistance to evaluate the right value for a home. If you are looking at Celebration, you need to pick a REALTOR who is familiar with the Real Estate Situation in Town. In Celebration the deals are selling, you need to be informed as soon as new listings come up. If they are priced right they get offers fast.

I am a Celebration REALTOR, contact me if you need more information!

Regards,
Richard

Richard A. Stephan, Dipl.-Ing.
Licensed REALTOR®, e-PRO®, TRC

TonyDavidsHomes.com LLC
1420 Celebration Blvd, Suite 200
Celebration, Florida 34747
Mobile: +1 - 407 - 433 - 8702
Fax : +1 - 407 - 624 - 4855
My Website: http://RichardStephanREALTOR.com
Office Website: http://TonyDavidsHomes.com
Mailto: Richard@TonyDavidsHomes.com
0 votes
John Bennett, Agent, Orlando, FL
Tue Dec 15, 2009
if you are talking about the Reality Trac the answer is NO! Has no - 0- relationship to market. What they are lisiting is some number - who knows were they get it.

Thomas what you need is a Realtor to help you.

Lets say you were going to climb a mountain and you have no idea how to do. Might you want to buddy up with a climber with a lot of knowledge and experience? Sure you might fall, but odds are the experience guy would have a rope on you fanny to save you.

I a good clue what the market prices are, I do BPOs EVERY day for the BANKS!!! EVERYDAY two to 5 of them every day in Lake Orange, Seminole and Sumter counties.

If I can help please call, you will hear from several other local Realtors, Most great people who can really help you.

And here is the best part, you have have a head start - --- woops thats a old song,

your cost to "hire" a experienced Realtor that has a clue . . . . $0.

John
352-978-4539
0 votes
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