Signs of trouble...?

There is some thought that some of the higher-end markets are weathering our real estate downturn better than others. And for the most part I agree. But something came across my email tonight that caused me to perk up my ears a bit. I received a request for a BPO (broker price opinion) for a distressed condo in the South End. It hasn't foreclosed yet according to masslandrecords.com, so I am assuming that it has not been recorded yet or it is being sold in a short sale or bankruptcy. This condo was purchased in 2006 for $1.26 Million with 80/15/5eq. mortgage. Meaning the seller only had 5% down.

It could be for many reasons that it is distressed; loss of job, heathcare costs, or any other unfortunate event. But in a stable or increasing market, one should have been able to sell the unit and at least break even. We can't pretend to know all of the circumstances to this particular distressed property, so I'll try not to make too many assumptions.

This is not a sign that the end is near, or even that the South End market is in trouble. But, it does cause me to look a little more closely.

The clock is ticking...

This doesn't affect too many of the buyers here in Dorchester but it does affect our clients looking in higher priced areas.

The temporary increase in conforming loan limits is set to expire on Dec 31st. Check out HUD's website to see what the conforming loan limit is in your area.

New Stuff

Just In Boston is pleased to announce that we are implementing a new web based transaction center. With this new application buyers or sellers can login and see what needs to be done, what has been completed and have access to all of the documents relating to the sale. We will be working on giving that access to all members of the buying team, attorneys, lenders etc...The system uses SSL encryption to protect sensitive data too.

It really is just so cool... We have been working on it and rolling it out to some of our clients to test drive and so far so good.

The Summer of Dead Offers...

It's a real estate agents version of a horror movie or what I experienced this summer. As we close out the summer and move on to our fall market, I'll recap, very breifly, what happened.
I wrote lots of offers, and worked with lots of buyers. The problem seemed to be two-fold and on opposite sides of the coin.

I had buyers that were writing offers and were out bid by other buyers. The properties were priced competitively in great locations and it just didn't happen for them. Many of them were foreclosures.

Other buyers were writing good offers on overpriced properties and the sellers refused to budge.

This seems to be the M.O. of the market and it can be particularly frustrating.

My hope is that this fall sellers and buyers realize that they both need to meet at a price that works.