Branson Real Estate Market Update – March 2010

Time again for a Branson real estate market update.

The market continues to see an increased number of distressed properties coming on the market. That’s really the primary reason for continued lower prices and great terms for buyers. A whopping 40% of all homes sold in Branson last month were foreclosures.

Those foreclosed properties are great buying opportunities. Just a few words of caution… Be sure to get a complete home inspection! The seller makes absolutely no promises about the condition of the property and it’s the buyer’s job to be sure there aren’t major defects.

What about short sale properties in Branson? Well, despite new regulation and an attempt by many home owners and agents to make the short sale process work, it isn’t showing much promise. In fact, in the Branson market, there have been between 1-2 houses per month actually making it to the closing table as part of a short sale process. That’s a dismal number. As a buyer, I would much rather purchase from a motivated seller that doesn’t have to worry about a short sale or buy a foreclosure.

In case you’re asking yourself, “What’s a short sale?”… I’ll fill you in. It’s one of the most often asked questions in real estate today. A seller of a short sale property is probably facing foreclosure… They need to sell, but they owe the bank more than the house is worth. The seller tries to make a deal with the bank where the bank will accept a payoff of less that what’s owed. This means the bank(s) will have to lose thousands, if not tens of thousands of dollars. Getting them to finally agree to accept the reduced payoff can take months – and the bank often says no anyway.

Once again, my analysis for the market remains the same… Get out there and buy! It’s a terrific time. Rates are low, prices are down, inventory is high… A perfect storm for home buyers! Am I starting to sound like a broken record yet?

Comments

  1. Lou Filczer says:

    I find that most real estate brokers don’t
    realize that their commision and agency relation stands in the way of the owner and the investor.The few bokers that I’ve encountered refused to allow me to contact the owner so as to present a total analysis of market,financial hardship of the owner,property repairs and evaluation from an investors point of view to the lender to make a short sale work.The lender has to be made aware that investor buyers dont look at the property the way retail selling brokers do.Investors that take risks as they do are not users but wholesalers that would like to use brokers to be able to sell in this downward spiraling market.

  2. Lou,

    I have to agree with you on most of what you say here, with a couple of things to add: First, the statistics don’t show a “downward spiraling market” as of the last few months. It appears the bleeding has stopped… For now, at least. That’s not to say that I have a crystal ball of what will happen in the future… No one does.

    For an investor like yourself, a short sale can be a good opportunity, and an experienced agent can help the short sale process, not hinder it. With that said, there are many inexperienced listing agents unable to make the deal happen. At the same time, there are great short sale experts that can’t get it done either… You’re at the mercy of the bank. They’ll return your call when they feel like it. They’ll accept the offer if they feel like it. In short, the bank is going to do whatever they want on their own time line. In the meantime, the clock ticks (and often runs out) while we wait for the bank to respond.

    My question is – why deal with all this headache? A short sale may be good for the seller, but a buyer has hundreds of options on the market to find a great deal – without all the delays. Why torture yourself with the never-ending process of a short sale?

  3. It is not worth your time- It’s a lot of paper work and bank turns most down anyway. I would personally never ask about it again.

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