Plano Texas Real Estate Blog - Local Plano Real Estate.

It's safe to say the housing recovery in Collin County broke through previous sales levels with a 59.2% increase for traditional (resale) home sales.

Why is this?

The number of active foreclosures on the market has dropped by over 62.0 percent from peak supply levels in 2010. The share of all New Listings that are foreclosures decreased from 11.6 percent last year to 9.8 percent this year. For Closed Sales, the figure fell from 16.8 percent to 12.0 percent.  Take a look at the chart above for a 2 year breakdown between Foreclosures and Traditional (resale) home sales.  That's why prices have improved for the time being.

Defective Foreclosures and How to Avoid Them

Every two years I have to take a legal and ethics updates class to renew my brokers license. Besides being apprised of all the new real estate forms and procedures taking place you need to  keep a score card as far as what the banks are doing in controlling the market.

You've heard about the robo signings in main stream media but have you heard how it applies to real world real estate?   The course I took was a two day class and a big brand brokerage who will remained anonymous declared they had experienced 3 defective foreclosures this year.  What does that mean?  The explanation was the bank didn't do it right!  What! How can you not do a foreclosure right?  That's robo signing at its finest.  Probably a clerical, hourly - "nit wit" determining whether you stay or leave your home.
Sounds bad and it is....

So what happens in a defective foreclosure?  The new buyer that spent months and lots of money looking for that perfect home gets kicked out.  The original owner probably had filed a suit against the bank and because the bank couldn't proved they owned or much less found the note, the foreclosure was declared defective.  Yes, it's happening all over America.

What can you do to avoid the whole experience?  One way is not to purchase a foreclosure.

But because foreclosures are attractive to many buyers that's not going to happen.  One way is to investigate the lending process history and sales of the property.  The amount of information that's available to brokers is amazing if only agents would use it.  Seems like the title companies would find out who owned the property before it was sold again, don't you think...

One call out of a robo signing foreclosure would be the absurd number of times a property changed hands during the past 8 years.  The other "for sure thing you can do" is ask the bank to prove their ownership by providing the note.  Alas, that's a different department...imagine that!  One county of Ohio actually has a certificate of readiness that the bank must prove they own the note before the judicial process can start, Texas is a non-judicial state.  That process should be a given to protect the consumer.

The point being is there's a tremendous amount of information out there so as not to waste a buyers time or money!  I can't imagine buying a home and then being told you had to move out because it was a defective foreclosure.  And so it goes...it ain't over yet!

Normandy Estates Foreclosure Find



Every once in a while a home comes along that's a steal.....I've said it before and I'll say it again, you can make some sweet deals at year end.  Just yesterday a foreclosure came up in Normandy Estates.  Home was listed at 1.5 M, it's been through some price changes, up and down....now list price is 500K! Too good to be true? Kind of....property is to be auctioned off and 500K is opening bid, with a reserve in place.  This lender is ready to dump but at their reserve, no telling what that is.  Must close in 30 days.....no doubt you could make a steal on this but will have to wait for Normandy Estates to be developed out, pretty safe bet in my opinion.  

Normandy Estates Foreclosure

If your familiar with Normandy Estates in West Plano, you'll know that it's a high end development.  It's had a slow go due to the economy but the development is prestigious and beautiful with it's rolling terrain.  This foreclosure just popped up not long ago.  This was the first home to be built in Normandy Estates and now is a luxury foreclosure.  It backs up to the Frito Lay property on a gorgeous treed creek lot. The home is beautiful and built to fit the lot!  The price? I thought you'd never ask! $1,525,000.  It's been on the market 15 days.  It's not foreclosure pricing but it's a great home and lot in West Plano.  What do you think you could buy it for?

Every Quarter the CCAR (Collin County Association of Realtors) publishes a detailed report on foreclosure activity for NTREIS (North Texas MLS).  You won't find this information everywhere.  The chart shows by quarter the last 3 years of foreclosures vs traditional resale activity.  As you can see foreclosure sales were down 14.3% from 2008.  I think this is because resales became a better value to the consumer. And most banks are much more difficult to work with.  As you can see the share of lender activity is still above 20% and will continue to be so for a while.  You really have to drill down specifics to county, city & neighborhood to get an accurate picture of foreclosure vs resale (regular seller) activity.  I can tell you that in Plano zip codes: 75093, 75024 & 75025 foreclosures listings have doubled since 2008.  For example: the inventory used to be 25 properties and now hovers around 50 as the banks definitely control the flow of inventory.

Foreclosures in Collin County - June 2010

If you've been in the real estate market at all you've probably looked at or maybe put an offer on a bank owned property. It's not unusual to be in a multiple offer scenario on these seller types.  Our MLS system can now track REO/foreclosures so here's a little insight into these properties.

The charts below is for Collin County June 2010  - inventory and sale of bank owned properties only.  For sale properties make up a very small % of the total inventory of homes, around 6 to 9%.  Less than 500 properties out of 6500 are in foreclosure or short sale status.  There is an average of 125 sold a month, (see bottom chart) which averages out to around 15% of total sales.  You can see the demand so expect multiple offers on well priced foreclosure listings and you might have to try a few times to before you buy one. Charts are for all single family homes in Collin County.

Friday's Foreclosure


Of course, this didn't stay on the market long at $33.49 a sq ft, The asking price? you wonder....
An unheard of $100,000 in a 75024 West Plano neighborhood. Severe foundations problems, cash buyers only, no one would lend money on this one. Great opportunity for an investor and only lasted 4 days.
Anyone want to guess where it is?

[75024,Plano TX, real estate, foreclosures]

Foreclosures Finds in 75024


It's no secret that the luxury real estate market has had a tough go this year.  With foreclosures being a daily force in the real estate market no matter where you live, there are some great buys to be had.  With that being said, not all are foreclosure prices, even the banks know they can get more in a desirable neighborhood.

There are occasional foreclosures in all the tony West Plano neighborhoods but there are a couple that deserve a shout out.  Everyone likes new, right?  So, if you like the Shops at Legacy area there is always 1 or 2 foreclosures in the first and second phase.  I remember when town homes were going for 325K to 475K.  Now almost everything that's sold in the last 6 months is 225K to 300K.  I point this area out as a great investment or first time home buyer product that could be worth a pot of gold when the economy comes back.

Another shout out is Normandy Estates, two villa lots were just listed as REO (real estate owned).  You could buy for future building or hold for a while. It's on the Denton County side and Lewisville schools.  A minimum 2500 sq ft structure must be built. This is the first gated community in over 5 years. Now, you need vision for this neighborhood but it will be a winner down the road at Spring Creek & Tennyson, just north of Shoal Creek.  The lots are listed at 309.9K, which is retail, villa homes prices start at 900K or around there and that includes the lot, so roughly 600K home to build.   Wonder what the bank would take for these?  Probably make a sweet deal if you buy two...

[where: 75024, Plano, TX, foreclosures ]
                                                          

Collin County Foreclosure Facts


A client called yesterday and wanted some foreclosure info to help fight property tax increases, the criteria went something like this: can you do a search for all sold foreclosures in Collin County this year by Fannie Mae?

The answer is yes, I can do by seller type: as in foreclosure but to break it down by owner type is difficult because this is not an input field that every listing agent fills in.  So we broke it down to all foreclosures sold in Collin County since 2009 and all prices.  Can you guess the number? Don't think you'll be surprised....

1172 units have sold in Collin County.  When I ran the report today 10 more had closed.  Yes, friends that world is fast and furious.  68% of these properties are under $200K.  But there are some upper end gems out there.  Over $500K represents 2.2% of the sold inventory.

Just to give you another idea of the break neck activity, there are only 201 active foreclosures in all of Collin County, 25 are active option (in option period) and 256 are pending (waiting to close). Foreclosures have a shortage of listings too but that will change, I can promise that.  Not all of the pending transactions will close due to financing or the bank making it difficult to buy, so it's worth to watch if you missed a property you wanted to buy.  Interesting stats and times...

If you'd like more detail take a look at the Q2 Foreclosure Real Estate Report to put you in the buying mood.  This is just for Collin County guess I'll have to look at Dallas County next...

[where:75093, Collin County, foreclosures]

Foreclosure Follower

Every so often I check our web site rankings on Google to make sure we are on top or at least in the top 5 on the first page of a search.  I did a search for planohomes and this is what came up.

Planohomesandland.com came up number 1 but what I find interesting is the sponsored link: Buy Direct From the Bank - All Chase Bank foreclosures.  The banks aren't dumb and they will do anything to save some bucks.  So I clicked the link thinking I would get all their real estate owned properties.

Wrong.....what I got was a form to fill out first without knowing what I'd get. Most of the bank homes are listed with a REO (Real Estate Owned)  listing agent, so I'm assuming they would be giving the agent your name. It's not really direct...You can get home listings all over the web but it's still hard to find all foreclosures in one place, seems like the banks should all get together and have a web site to promote their properties direct, better for the consumer and the banks.  What do you think?

[where:75093,real estate, foreclosures, Plano, TX]

HOW TO REO - SCHEDULE YOUR CLOSING ON A MONDAY...

If you've bought a foreclosure or about to -  you know the banks (Sellers) have special addendum requirements that override the original TREC 1-4 residential contract.  They all differ somewhat depending on how aggressive the lawyer is that day.:)  One thing they all have in common are more ancillary fees added to the buyers side.  Like if you miss the closing date they are going to charge you a late fee of $100. or more a day.  Even though title companies are only open Mon. - Fri. - the banks are charging the late fee for Saturday and Sunday too, even though you can't close.  They work on calendar days for late fees.

Why? because it's policy, that's what the representative stated. And so it goes...

On any foreclosure I would go ahead and schedule closings on a Monday that way if you're late you won't be charged for the weekend.  You shouldn't have to think like that but when banks are sellers the rules change. Another Buyer Beware moment.

[where:75093,75025,75024,Plano foreclosures, reo, real estate]

Know Your Pricing

The above photo is one of the many vacant luxury homes on the market. This one is a foreclosure in Frisco. I'm running into more and more buyers that are making their offers so low, that well, they are missing buying the home.  It's good to know the pricing of a neighborhood before you go see a property.  Many homes have taken substantial price reductions already and are priced to sell or close.  Guess it's just human nature to try and go lower...but don't miss a home over a few thousand dollars - some homes are the buy of a lifetime.  Be sure and check out the portal to the right for the latest listings and open houses for the weekend.
Enjoy!
[where:75093,75025,75024, West Plano, real estate, open houses, foreclosures]

Banks don't know how to sell real estate

It seems these days that banks or lenders really don't want to sell their REO (real estate owned) properties. You might find that odd since everyone knows they need to dispose of these foreclosed homes.  Well, things just seem to take longer and more complicated.  Why? Because they are so inundated with listings, offers and don't understand the process plus don't have the man power to complete a time is of the essence transaction. Doesn't seem right, does it? Like I've said before banks can't sell real estate.  Out of 4 contracts we are working now - we have yet to get any signed paperwork back after 2 weeks, a short sale scenario just got a negotiator to work the contracts after being submitted March 3rd.  That's right!  So if you are involved in a foreclosure or per foreclosure, please know you are not alone.  One recommendation I would make is even if you have a solid closing date be prepared to extend your moving as the lender or bank might not sign on the day you close.  You need patience, along with stamina to complete the purchase of your new home.  Just keep looking for that light at the end of the tunnel - It will be worth it because you got such a sweet buy!

[where:75093,75025,75024, West Plano, real estate, REO, foreclosures]

Fast & Furious Foreclosures


This is a heads up for all you REO buyers out there.  You can't wait to make an offer on any foreclosure in these West Plano Zip Codes - 75093,75024 or 75025.  The race is on for who gets there first.  And it counts.

A few quick stats, last month 8% of total sales were in foreclosures, this month so far and we aren't even to the end yet, the number is 17% and that is sold properties that have closed, as in done deal! The pending status (contracts waiting to close) as it stands right now, as of March 20th, foreclosures make up 32%.  Savvy buyers and investors are watching and pouncing on them as soon as they hit the market.  Banks are reducing prices to sell.  So if your playing this game be prepared to write a contract immediately and expect multiple offers.  And by all means, get there first!  Stats are for these zip codes only. It's MOVING!

[where:75093,75025,75024, West Plano, foreclosures, real estate]

Low Ball Offers & Pretend Pricing

Buyers are going low, way way low.  When writing offers these days even if a property is priced fairly or below market, buyers want it lower, much lower. Some sellers are willing to consider others not so much especially the bank.  What's interesting and I see it happening often in short sale or foreclosure scenarios is the bank is pricing a property way below market, like $50. to $80. a sq ft in West Plano in order to get multiple contracts to possibly bid the property higher.  Now this does work to some extent but you must be a patience buyer because despite a house being in distress the banks don't seem to be.

Yes, you heard me right. 

Even with a cash offer and quick close they will drag their feet.  Why? Still haven't figured that out except they don't understand the retail consumer or real estate. It's quite obvious why banks should not be in the real estate business because none of them know how much a  property is worth.  All they need to do is look at the tax roles and recent comps which I'm sure the listing agent has done, it's not rocket science...

The bank owned properties only care about the sales price, their addendum's override the familiar 1-4 residential contract.  It's pretty cut and dry. What the banks don't understand is the consumer determines value not the banks, they have been too long in taking appropriate price reductions, so guess what?  The value is lower now, like I said it's not rocket science.  I can almost predict another RTC  (Resolution Trust Corporation) is on the way, similar to the savings and loans scandals of the 80's - only this time much, much bigger.

I know the picture has nothing to do with the topic but it's prettier than a foreclosure.

[where:75024, Shops at Legacy, foreclosure, short sale]

Too Good to be True? - An Awesome Foreclosure

I bet this isn't your idea of a foreclosure but it is!  There are a growing number of
builders homes that are going into foreclosure.  This one in particular use to be
a million dollars, on sale now for $785,000.  Only 2 years new and never been
lived in.  The only thing about buying a builders home in foreclosure is there is
probably no warranty protection, so in that cause you need to locate the vendors
that built the home in the first place just to be covered against possible defects.
You never know...
[where:75034, Frisco, foreclosure, homes for sale]