 |
 |
 |
 |
 |
|
 |
 |
on Twitter
MoCo Areas
- Bethesda
- Clarksburg
- Darnestown
- Gaithersburg
- Germantown
- North Potomac
- Olney
- Poolesville
- Potomac
- Rockville
- Silver Spring
Article Topics
Past Articles
- August 2010 (3)
- July 2010 (8)
- June 2010 (22)
- May 2010 (15)
- April 2010 (4)
- March 2010 (5)
- February 2010 (3)
- January 2010 (8)
- December 2009 (53)
- November 2009 (4)
- October 2009 (5)
- September 2009 (4)
- August 2009 (21)
- July 2009 (6)
- June 2009 (14)
- May 2009 (6)
- April 2009 (5)
- March 2009 (3)
- February 2009 (7)
- January 2009 (8)
- December 2008 (5)
- November 2008 (8)
Foreclosures, short sales and bank-owned properties in Montgomery County
| See Pre-foreclosure and Bank-owned Homes
|
Stages of a Distress Sale
The typical stages of a distress sale are Pre-Foreclosure, Foreclosure and Bank Owned.
Pre-Foreclosure. If a homeowner gets behind in his mortgage payments and lists his home for sale, he still has ownership of the property. A buyer would present and negotiate an offer with the homeowner. In most cases today, an offer price would be below the actual mortgage value. In order to accept the terms and transfer clear title to the buyer, the mortgage holder(s) must agree to a payoff less than the mortgage value. These listings require “third party approval” (also referred to as “short sales”) since the bank (the third party) must agree to the price and terms of the sales contract.
Foreclosure. If a homeowner is unable catch up on payments or has been unable to sell his property, then the lien holder — the bank — will start foreclosure proceedings. A foreclosure auction takes place followed by a series of steps until the winner of the auction (usually the bank) can take title. Once the bank has ownership of the property, they will turn around and sell it.
Bank Owned Properties. Once a bank repossess a property and completes the foreclosure process, it is now the owner of record. The bank is responsible for all maintenance, insurance and taxes just like a regular homeowner. A buyer would present a purchase offer and negotiate directly with the bank. These are also called REOs (Real Estate Owned).
Types of Home Listings Found Here
The searches in this site will list homes that require 3rd Party Approval and bank-owned properties. The search technology investigates the description of the listing to determine if it’s a short sale, so it’s very close, but not precise. Homes scheduled for foreclosure auctions are not included since these are not maintained in the listing database.
Articles related to distress sales and foreclosures in Montgomery County follow.
Potomac Foreclosure Home Tour
November 18th, 2009 Categories: Foreclosures, Potomac
Inventory remains super high for the most expensive homes in Montgomery County, so I expect to see distress sales for some time in this market segment. Here’s a summary of three upper bracket homes in Potomac that I previewed this week:
11752 Lake Potomac Drive, Potomac
This home is an imposing wall of bricks. It’s big with 7,000 sq feet of living on the main two levels and about 4,000 more on the finished lower level. From the street, it’s classic, regal and impressive; but the layout and finishings inside are a bit bewildering. Except for hardwoods in the library, the entire main level has granite tile flooring which most buyers would find cold and impractical. The main level has a traditional room layout, but the upper level is maze-like – I would describe it if I could. The lower level is bright and usable.
For a bank-owned property, it’s in good shape. Still, especially with a home this size, a buyer will likely make significant investments to bring out its true potential. The previous owner paid $1,420,000 in 2004. I understand they did most of the interior work. This home went through foreclosure and is now bank-owned listed for $1,584,000 with Rosselle Realty Services.
11201 Greenbriar Preserve Lane
What’s not to love about this former NV model home? It’s big with over 7,200 square feet of living on the main levels and around 3,000 more in the basement. It’s new built in 2005, and it has all the options: premium flooring, paint, mouldings and lighting. Everything is fabulous – the upgraded kitchen, theater-sized media room, extravagant master suite and more. An outside entertainment area includes a large gazebo, maintenance-free deck and stone firepit.
Typical of a model home, it is the first home in the neighborhood and it sits on 0.77 acres. Even from the back deck, you have good privacy from Piney Meeting House Road. The current owner purchased this from NV Homes for $2,625,000 in April, 2006. It’s currently listed as a short-sale with Long and Foster priced at $1,900,000.
9417 Falls Road
I saved the best for last. This home is walking distance to Potomac Village and feature the very best of custom design and construction. This home is big with over 7,200 square feet of living space on the main two levels and 3,000 in the finished lower level. Testament to its superior design, this home doesn’t overwhelm. It’s classic, gracious and comfortable. Superior construction details like a hand-stacked stone fireplace, weighted doors, hardwood flooring on the main levels, wrought-iron stair case spindles, custom lighting and more come together to create rich, quality living spaces. The bedroom level offers perhaps the biggest surprise. All bedrooms feature huge spaces and soaring cathedral ceilings. Natural light streams through curved and oval windows. Very nice.
This home was built in 2008 and has never been occupied. It is listed with Long and Foster for 1,999,000 as a short sale.
___________________________________________________________
See all distress sales in Potomac and contact us with any questions about these or any other homes in the area.
| Currently No Comments »
Notes from Tuesday Home Tour
July 28th, 2009 Categories: Darnestown, Foreclosures, Potomac
Tuesdays are traditionally a day for real estate agents in the area to preview homes and hold Broker’s Opens. I took a look at a few homes with acreage in Potomac and Darnestown. Here’s my impression of the most interesting ones I saw today.
Bank Owned in Potomac
I get a lot of questions about foreclosures in Potomac. Normally, there isn’t much to report. Today’s the exception. 19 Pettit Court came on the market on July 26th, is priced at $964,900 and is listed by Long and Foster. This home has 3,900 sq feet of living space on the main two levels, sits on 2 acres and has a nice pool in back. All the kitchen appliances and some light fixtures have been removed, but it’s in good showing condition. The master suite and another bedroom is on the main level, and the upper level has 3 bedrooms. A buyer would likely update bathrooms, replace some carpet and paint. The cedar shake roof looks like it might be original (the home was built in 1978), but it’s hard to tell with cedar shake. No funky smells and no obvious abuse. Overall, I liked it. It’s definitely priced to sell. The previous owners paid $1,404,000 in 2005.
A Trip Back to the 1970s
13500 Deakins Lane in Darnestown sits on a jaw-droppingly beautiful lot of 13.5 acres. One could mistake the manicured back yard for a country club. This home really gives off a strong vibe. I’ve never met the owners, but I would bet this home has seen a lot of good times. There’s definitely a lot of love here — sounds corny, but that’s how it feels. The interior decor is a time capsule of the 1970s — the shag carpet, the bold wall paper, the wood paneling — its all here. I’m guessing that the buyer will fall in love with the lot and won’t mind bringing the home up to date. It’s currently priced at $1,395,000. Andrea Alderdice with W.C. & A.N. Miller/Long & Foster is the listing agent.
One Level Living with Nice Acreage
13520 Deakins Lane in Darnestown is listed for $1,199,000. It sits on over 8 acres and has quite a regal approach. The rooms are big and the hardwood floors are very nice. The kitchen has been upgraded and every view outside is fantastic. Built in 1964, it has some quirks. The super low ceilings in the basement reduce the utility of the lower level. I think the buyer on this home will place a high value on the main level layout and the privacy of the lot. Andrea Alderdice with W.C. & A.N. Miller/Long & Foster also the listing agent on this property.
__________________________________________________________
| Call us at 301-527-9079 or send an email for more info about these homes or any others in Montgomery County, Maryland. |  |
 |
| Currently No Comments »
Bargain Hunters Are Driving Me Crazy!
June 8th, 2009 Categories: Buying, Foreclosures
At least once a week I have the following conversation with a buyer:
Buyer - I’m really interested in foreclosures so I can get a great price.
Me - OK, foreclosures have pushed prices lower in several segments of our market. What else are you looking for?
Buyer - I would like a single family home in Potomac, Rockville or North Potomac under $1M in a good school district.
Me - Now we have a problem.
Don’t get me wrong, no one loves a bargain better than me. When buying a home, however, having “get a bargain” as the #1 purchase criteria is a recipe for disappointment. Why? Primarily, the inventory of distress sales is very low — and getting lower. This removes 80% of the available market for consideration.
But getting a bargain isn’t the primary criteria, is it? You also want a home that meets your needs and is located in your desired area and goes to your preferred school district. Filter the inventory of distress sales with this critieria and there’s nothing left.
Take a different approach. Even if distress sales are unavailable for homes that meet your needs, you can still find good values. Step #1 – Focus on the homes that meet your needs first. Step #2 – Find the best values within this subset of homes. Some distress sales may now be worth a look, but don’t overlook regular resales. For my buyers, I’ve negotiated the very best values with sellers who are motivated and have a lot of home equity.
Don’t be disappointed. First – find homes that meet your needs. Next – narrow in on the bargains.
__________________________________________________________
| Do you have questions about the Montgomery County real estate market? Call us at 301-527-9079 or send an email for more info about buying, selling and living in Montgomery County, Maryland. | |
|
| Currently 1 Comment »
Inventory of distress sales trending down
March 18th, 2009 Categories: Foreclosures
In January I provided a snapshot of distress sales in Montgomery County. With a significant increase in contract volume for entry level homes, I hoped to see reductions in the inventory of distress sales. Two months later, the data strongly suggests that we may be through the worst of foreclosures from the sub-prime mortgage melt-down.
Here’s a snapshot of the number of pre-foreclosures (short sales) and bank-owned properties by area:
On it’s own, this snapshot doesn’t tell us how sales are trending. Here’s an overview for Montgomery County for these two periods:
- Mid January: 4,706 listings – 1,234 distress sales = 26.2% Total
- Mid March: 4,647 listings – 1,096 distress sales = 23.6% Total
Let’s compare the number of distress sales in January and March:
| Area | Mid Jan |
Mid March |
|
| Bethesda, Chevy Chase, Kensington Clarksburg, Damascus Gaithersburg, Derwood, Mont. Village Germantown, Boyds North Potomac Olney, Ashton, Brinklow, Sandy Spring Poolesville, Dickerson, Barnesville Potomac Rockville, North Bethesda Silver Spring, Burtsonsville, Takoma Park |
21 87 306 156 51 17 4 12 102 478 |
19 (-10%) 74 (-15%) 253 (-17%) 132 (-15%) 42 (-18%) 19 (+12%) 3 (-25%) 11 (-8%) 99 (-3%) 444 (-7%) |
|
These trends are very encouraging for our real estate market. Our entire real estate market stabilizes as distress sales are worked out of housing inventory. As the the spring real estate market gets underway, we’ll revisit these stats to see if this positive trend continues.
__________________________________________________________
| Do you have questions about the Montgomery County real estate market? Call us at 301-527-9079 or send an email for more info about buying, selling and living in Montgomery County, Maryland. | |
|
| Currently No Comments »
Distress Sales in Montgomery County – How bad is it?
January 18th, 2009 Categories: Foreclosures, Market Updates
Just about every day passes with another statistic about area foreclosures. News snippets rarely provide a good perspective on our local market, so we took a detailed look at the total number of bank-owned and distress listings on the market in Montgomery County. As posted in December, we saw signs of an improving market with an increase in the number of contracts the 2nd half of 2008 compared to 2007. However, until distress and bank properties are reduced to a smaller percentage of available inventory, we’ll continue to see downward pricing pressure.
What is a Distress Sale?
A distress sale is one that requires approval from a homeowner’s mortgage provider(s) for a payoff smaller than the outstanding mortgage balance. These listings are commonly noted to require “third party approval”. No single source provides an accurate count of distress sales, so in mid-January we worked with our home search technology company to obtain counts of all listings in Montgomery County that have descriptions that likely indicate a distress sale or are bank-owned. These numbers will not be exact, but they are pretty close.
Distress and Bank Sales by Area
Looking at all listings, about 25% of all homes available in Montgomery County are bank-owned or distress sales. This is a big number. Some areas in the county are affected much more than others as shown in the graph below.
The percentage of distress listings within each area is summarized in the table below. Also, the area’s distress listings as a percentage of the total for the County is shown. 59% of all available listings are located in Silver Spring, Gaithersburg and Germantown areas, yet these areas contain 76% of all distress listings for Montgomery County.
| Area | % in Area | % of County | |
| Bethesda, Chevy Chase, Kensington Clarksburg, Damascus Gaithersburg, Derwood, Mont. Village Germantown, Boyds North Potomac Olney, Ashton, Brinklow, Sandy Spring Poolesville, Dickerson, Barnesville Potomac Rockville, North Bethesda Silver Spring, Burtsonsville, Takoma Park |
4% 29% 43% 42% 25% 13% 8% 5% 24% 29% |
2% 7% 25% 13% 4% 1% 0% 1% 8% 39% |
|
Over the coming months I’ll revisit these metrics hoping to see a reduction in the inventory of distress listings. Declining inventory of distress listings will be a clear sign that our local real estate market is stabilizing. Contact us anytime with questions about how these sales have an impact on your areas of interest.
How do you feel about the market? Make a comment and let us know.
| Currently 2 Comments »
Three-times the sales compared to last year? Isn’t this a slow market?
November 20th, 2008 Categories: Foreclosures, Germantown, Market Updates, Silver Spring
Entry-level housing in Montgomery County is heating-up. Looking at the last four weeks, the number of contracts in many parts of Montgomery County is more than tripled compared to this time last year for homes priced under $300,000. As inventory has climbed, foreclosures and distress sales have applied downward pressure on prices in this segment.
So is this a harbinger that we’re reaching the illusive “bottom” of the real estate market? To me, it’s clear this is a sign that demand for homes in Montgomery County is fundamentally strong. For most people who live and work here, a home purchase has simply been too expensive. As prices have come down, homes are now within reach to more people. So it’s a great sign that buyers are getting into the market in such a turbulent time. Still, there’s many homes on the market. For the nine zip codes included in the chart, there are nearly 1,400 homes available in that price range. If the sales volume continues to increase over the next several months as new homes enter the market, then we can be more confident that we’re finding the floor in our market.
What trends do you see for entry level housing in Montgomery County? Are you beginning to be hopeful, or do you see harder times ahead? Add a comment and let me know your thoughts.
| Currently No Comments »
Montgomery County foreclosure hotspots
November 3rd, 2008 Categories: Clarksburg, Foreclosures, Gaithersburg, Germantown, Silver Spring
With foreclosures and declining home prices, news on the real estate market isn’t good. True, our local real estate market is under pressure; but Montgomery County is much healthier than markets in California, Las Vegas and Florida that we always hear about. Foreclosures in our area are mostly concentrated in two areas: entry-level housing, and areas that experienced a lot of new construction in the early 2000s.
Right now, about 50% of all available homes in Montgomery County are priced under $400,000 in the zip codes of Silver Spring, Gaithersburg and Germantown. As price appreciation stopped, marginal buyers with riskier loans drove-up foreclosure rates which pressured prices lower for all owners in this segment. Unlike other parts of the country, however, homes are still selling here with over 2,200 homes sold in 2008. With 6 to 8.5 months’ available inventory, there’s a lot available – but buyers are still buying.
Only a few areas in the County saw big increases in inventory from new construction. In Clarksburg for example, home builders added a flood of new homes starting around 2002. Fueled by fast appreciation and significant investor activity, demand for new construction went up even more. When appreciation stopped, inventory shot up and values started heading down. The result today – about a years’ worth of inventory is on the market with approximately 130 homes available. At least 1/3 are bank-owned or distress sales, 1/3 are new construction, and about 1/3 are typical home resales. Again, Clarksburg is the exception here. As a whole, our County has not recently added significant new inventory.
So what does all this mean if you have to sell a home in today’s market? It’s easy to be anxious if you need to sell in the coming months, but know that homes are selling here and buyers are getting loans. Still, selling a home is hard work and it can take longer to find your buyer. You must understand your local market segment and how to position your home in it. For market segments with a large number of foreclosures, home sellers must price their home aggressively. In segments with stronger demand, sellers can stick with a premium price provided they maintain good showing activity and positive feedback. In all cases, your home must show well to stand out. With so much selection, buyers are more selective than ever.
If you are planning a sale in the coming months, give us a call and we can review activity for your specific area and recommend cost-effective improvements if needed.
| Currently No Comments »