Posted by: Timothy Ellis (The Tim)

Tim Ellis is the founder of Seattle Bubble. His background in engineering and computer / internet technology, a fondness of data-based analysis of problems, and an addiction to spreadsheets all influence his perspective on the Seattle-area real estate market.

107 responses to “Puget Sound Foreclosures Set New Records in January”

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  1. AMS

    By David Losh @ 98:

    RE: AMS @ 93

    Knowing what the public will buy is a gift.

    I know of an agent in the north end who has that gift. He can routinely list a property above value, not by much, and have the property sold with in weeks. He encourages sellers to do a list of enhancements to the property, pays for the staging, then has a pre Broker’s Open buzz about the property’s value.

    This is the same as understanding the customer. If you understand the customer, then you know what will add value for that customer.

    Now let’s take the premise that price is everything. Once the property is showing in the best light price reductions then enhance the preceived value.

    Price is one part of the marketing mix, but in our current conditions, I suggest it’s becoming more and more important. Specifically supply continues to increase, and as such, pricing becomes more of an issue. This also follows from the shift in demand. I hope it is clear that the demand curve has shifted to the left.

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  2. AMS

    By Kary L. Krismer @ 100:

    By David Losh @ 99:
    By unsalable I mean structural defect or obsolesence. There are some properties that have too many issues to deal with. An appraiser determines comparable values on a set of criteria. Land Use, bad remodel, code violations, and structural defect may be missing from that criteria.

    I sort of wonder if there are some that are unsaleable dueto location. My wife doesn’t always use an aerial view prior to selecting listings to view, and we arrived at an REO property yesterday that was across the street from I don’t know what. It was a fairly large government type building, with a large antenna array on one end, that the public notice indicated was going to be expanded to become even bigger. I can’t imagine who would want to live across from that thing. During a hot market people tend to ignore location issues, but during a weak market they become very important.

    At the right price, I bet you’d buy it.

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  3. Kary L. Krismer

    RE: AMS @ 102 – No not me. A year and a half ago, when we were looking, we found a place we both liked, but it was near four large electrical transmission lines (the ones by 140th and the Maple Valley Highway). You couldn’t see them through the trees (at least in the summer), but I didn’t want to live near such a thing.

    But yes, at some price someone will buy that place. I just wonder what kind of discount for that thing across the street the appraiser put on that place when the foreclosed loan was made. I bet there wasn’t a single dollar adjustment.

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  4. AMS

    By Kary L. Krismer @ 103:

    RE: AMS @ 102 – No not me.

    Would you buy for $1? (After this, the deal will include cash to you, maybe you can just save the hassle and tell me how much cash I have to toss in to get you to buy the unit. Mind you are not required to live in the place.)

    A year and a half ago, when we were looking, we found a place we both liked, but it was near four large electrical transmission lines (the ones by 140th and the Maple Valley Highway). You couldn’t see them through the trees (at least in the summer), but I didn’t want to live near such a thing.

    How much would I have to pay you to live in that area?

    But yes, at some price someone will buy that place. I just wonder what kind of discount for that thing across the street the appraiser put on that place when the foreclosed loan was made. I bet there wasn’t a single dollar adjustment.

    I’d suggest that your price is below some other buyer’s willing and able price. One of the basics of economics is that you will buy given the right deal. One basic assumption that is normally made is that all property has positive economic value to each potential buyer, but this is not always true. Often people have to pay to get rid of trash, and there are properties out there that have negative value, for example Superfund sites. It’s not a question of if, but rather, how much.

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  5. Kary L. Krismer

    RE: AMS @ 104 – Could I make it a rental? ;-)

    I agree someone will buy it for a price. I’d have to be in desperate straights to live there myself.

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  6. AMS

    By Kary L. Krismer @ 105:

    RE: AMS @ 104 – Could I make it a rental? ;-)

    I agree someone will buy it for a price. I’d have to be in desperate straights to live there myself.

    Yes, the laws have not changed. I am not an attorney, so I cannot tell you that you can for sure rent it, but I would bet on yes. I guess you could rent it, sell it, burn it to the ground (with a permit, of course), put it on craigslist for free, and so on–whatever is legal.

    The point remains, however: It’s not a matter of if, but rather, at what price.

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  7. Kary L. Krismer

    RE: Kary L. Krismer @ 3 – Just to update this, the number of Trustee’s Deeds in February was 233–three more than last month.

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