Almost every day, we get the question, "What is the difference in a foreclosure and a short sale?"  Aside from the fact that they are both distressed sales and the banks are involved, that is about all as far as similarities.

A foreclosure is owned by the bank.  They have completed all the legal requirements to regain legal ownership of the property as well as a clear and conveyable title.  Since the bank owns the property outright, they are much easier to purchase and closings can occur relatively fast. 

Short sales are not bank owned properties.  The sellers still own the properties but due to a hardship, they must sell the property and it is no longer worth the amount owed.  The seller typically does not have the ability to bring money to closing to cover the difference.  In this case, the property is advertised for sale at a price that induces an offer.  The offer must be contingent on bank approval.  Once the contract is signed, it is sent to the bank for their approval.  The process of waiting for bank approval is what frustrates most buyers (and sellers).  There is no guarantee that the bank will accept the short sale offer or any offer that is less than what is owed.  Months can pass before the bank responds so if the buyer needs to close on a home within 2-3 months, a short sale may be an exercise in frustration and futility.

In either case, buyers need to understand that the property is typically being sold "as is."  It can be wise to have licensed contractors or inspectors survey the property prior to getting involved.

More and more buyers are finding themselves in multiple offer situations and buyers are losing out.  Why? 

Foreclosures, short sales, and even equity sellers are providing wonderful opportunities for buyers. With pent up demand and high affordability, buyers are really coming out and snatching up good properties.  Investors are also scouring the deals daily. Here is how to avoid multiple-offers and how to deal with them if you find yourself in that situation.

If you find a really good home, be prepared to move immediately.  Funds should be relatively liquid or pre-approvals for loans should be in place.  

Low-ball offers can kill a deal quickly.  If you are not picky about your home, you can risk more.  However, finding the right home for you is not always easy and a low ball offer can cause a seller to refuse to deal with you-even if you up the offer.

If you are notified that there are other offers on the property and you still want to give it a shot, make a clean offer.  Offer no more than you are willing to pay and no less than it is worth to you.  You want to feel good about it if you win the bid and OK if you lose (because it simply was not worth any more than you offered).  It can be heartbreaking to lose the perfect home so be reasonable.  You agent should provide you with market data so you can be assured it is a fair deal.

One of the best ways to be first to a property is to sign up for a listing notification account.  We offer such a service in our Wilmington NC Real Estate area on our Home Search Site: www.HomeSearchWilmington.com

We are still settling in to 2012 with a busy start to the year.  I want to thank you for your calls, emails and interest.  I am sure 2012 will be a famous one indeed as this is THE year to take advantage of home prices and affordability.  

David Flory of Cunningham and Company writes:

• Currently our year end numbers are very close to last year this time – our units are up by 18 and our average sold price is only down by $8,583 or 3.7%

• Our Median sold price increased this month by 10.9% from last month. 

• Market Absorption rate – The number of homes sold in December, 371 divided by the current listing inventory, 3,751 gives us a 10.1 month supply of single family homes. This decreased 2.3 months from last month. We need to keep this inventory under 12 months supply. With rates where they are and plenty of inventory; we can get this number down even more.

• List to Sold price ratio – the average list price of the sold properties is $228,470 and the average sold price is $215,056 for December which gives us a 94.1% list to sold price ratio – an increase from last month.
• Seller Concessions – We had 29.6% of sold properties report a sales concession for December, a decrease of less than 1%. We want this number to go lower.

• Days on Market – The average days on market for the sold properties are now at 152 for December a 13 day decrease from last month. Only 12.9% of the properties were placed under contract in less than 15 days for the month of November.

• Wilmington MLS Quarterly Average Sold Price – I have charted each quarter average sold price and our peak quarter was 2^nd quarter of 2007 with an average sold price of $280,354 and our the last quarter or 2011 was our lowest at an average sold price of $214,224 which gives us about a 23.6% decline in our average sold price spread over almost 5 years.

• Foreclosures as reported by the North Carolina Administrative Office of the Courts, I have added all three counties and worked it as a moving five month average, our peak seems to have been about August of 2010 and we are down about 42% since then. This is looking better.

Once the foreclosures have flushed out, the prices will begin to increase again.  We are already seeing signs of stability-long term signs.

Whether you are looking for a home to live in, or an investment property, I urge you to get your radar turned on and tuned in. If you have not already done so, get on our Instant Property Email Notification program.  You can customize your own search and get updates immediately as properties come on to the market. Click here to begin: www.HomeSearchWilmington.com

Have a great weekend and stay safe!

We can see the evidence of price/ value adjustments that have continued over the year.  Prices were down roughly 7% since last year and units sold was down 4%.  This directly affects total dollar sales volume which is down 13%. 

Once you look at December 2011 vs November 2011, however, we see an increase in price, units sold and total dollar volume.  We also see a decrease in listings and this is critical.  When supply decreases, prices increase.

We will have  more detailed look at 2011 once we have completed analyzing the data. Check out my brief video below:

Northchase is a wonderful neighborhood with community pool, tennis courts, basketball, walking trails,   and fishing ponds.  It is located just outside the city limits (no city taxes) but convenient to Wrightsville Beach, historic downtown Wilmington, shopping and walking distance to schools.  A pediatrician and veterinarian’s office is in the area as well.  This 3 bedroom 2 bath home with oversized garage features an open, bright, split-bedroom floor plan, vaulted ceilings, fireplace, ceiling fans, upgraded tile floors and large back yard.  The Heating and Air system, doors, and windows have been updated and this property is backed by a one year 2-10 Home Warranty. Don’t miss out!

Welcome home to Ashley Forest, a quiet neighborhood conveniently located near beaches, shopping and restaurants.  You will love this impressive 4 bedroom, 2 ½ bath home with lots of windows to enjoy the sunshine and a large bonus room for media, office, playroom or crafts.  The beautiful two level foyer with hardwoods leads to the formal dining room which boasts a trey ceiling.  The open and spacious living area boasts vaulted ceilings, bright skylights, and a gas log fireplace, while the large eat in kitchen has tile flooring, updated appliances and a gas range.  The large first floors master suite has a spacious walk in closet, dual vanities, whirlpool tub, separate shower, and water closet.  This home has a great backyard with deck for entertaining.  Included is a one year 2-10 Home Warranty!

The first thing you will notice here is a lot of negative signs!  While we want to see positive percentages here, we have to remember that this is partially due to the seasonality of real estate.  Prices are lower and inventory drops this time of year.  Foreclosures and short sales continue to influence the market and banks (and Realtors) are getting better at processing short sales.  (I said better-not great!)

Monthly fluctuations are not what we want to focus on but rather the long term trends.  Interest rates are phenominal and properties are selling.  We will keep you updated on the trends so stay tuned!

I hope you have a Merry Christmas and Happy New Year!  God bless!

Close to Wrightsville Beach, historic downtown Wilmington, and convenient to shopping and restaurants, this 4 bedroom 2 ½ bath home, plus FROG, has been wonderfully maintained and is move-in ready! Some of the many features include updated kitchen with granite counters, stainless appliances, updated plumbing and lighting fixtures, updated bathrooms, hardwoods and ceramic tile, newer HVAC, storage building and much more!  Enjoy relaxing on the deck or extended patio and have fun in the large back yard.  NorthChase is a pool and tennis community. Buy with confidence as this home is backed by a one year Home Warranty! Once in a while an opportunity shows up that is almost too good to be true-don’t miss out on this one!

Overall we are still bouncing up and down with average sales price up by over 4% from last month but down almost 3% since last year this time.   Units sold are down 8% from September but up 10% from October 2010.  I would like to continue to see a reduction in homes inventory in order to bring supply and demand closer and balance out the market.  We are maintaining a 12.5 month Absorption rate.

Interest rates continue to decline and averaged 3.99% for October.  With excellent affordability and availability of homes, we are looking at an outstanding opportunity for buyers!  Have a great week and give us a call if you have any questions!

Welcome to Willow Woods! A beautiful and quiet sub-division located in popular Brunswick County. Embrace your privacy while still being close to all the conveniences that the growing County has to offer. This wonderful 4 bedroom, 3 full bath home with over 2300 sq ft of living area and almost a 1 acre lot, has plenty of room for your family to enjoy. The home has many features, including hardwood floors throughout the foyer, living and dining areas; and ceramic tile in the kitchen, bathrooms and laundry room.

The bright and open living area, with gas log fireplace, dining room, and kitchen are perfect for the family get together.   The living area and dining room are separated by a knee wall with chair railing and crown molding in the dining and kitchen areas. The kitchen has plenty of working counter space and cabinets, stainless steel appliances, and pendant lighting above the breakfast bar. Just off the kitchen, is the walk thru laundry room that leads to the 2 car garage. The large owner’s suite has a separate sitting room, perfect for your home office! The owner’s bath has dual vanity sinks, a garden tub with block window and a separate shower. (The 2^nd and 3^rd bedrooms offer a Jack and Jill full bath…..perfect for your guests.)

Get outdoors and enjoy your fenced in back yard with covered back patio. Come take a look!  This home is the perfect retreat for you and your family and friends.

Don’t miss out on this well maintained, 3 bedroom, 2 bath home situated on quiet cul de sac lot in Stonington off of 17^th St. Extension. This home features a bright and open living area with cathedral ceilings, hardwood floors, a separate formal dining area, gas log fire place and breakfast nook. The kitchen and laundry room have ceramic tile flooring and a private entrance to the 2 car garage.  The master bedroom has trey ceilings and French doors that lead to the large, private back deck and fenced in yard, which has plenty of space for entertaining. A must see opportunity!

Welcome home to your beautiful 3 bedroom, 3 bath custom brick home with over 2400 sq ft of living space in Castle Bay! Enter through the foyer to the bright and open living area with 12 ft ceilings, a corner gas log fireplace, and French doors. The large living area leads to the formal dining room with custom hardwood floors and columns. This elegantly designed home also has trey ceilings in both the dining room and large owner suite. The owner bath features His and Her separate vanities, a large corner garden tub, a walk in tiled shower and private water closet. Other fine features include, split bedroom floor plan, recessed lighting, extra closet space, and a home office that could be used as a 4th bedroom. Relax and enjoy on the private screened back porch which backs up to a wooded area and has a golf course view. This home has so many wonderful details it is a must see! Castle Bay community features club house, golf course, exercise room, pool and tennis. Seller will pay $1500 towards closing cost as well!

Monkey Junction 3BR 2BA with FROG located in Citrus Cove. Large Master BR with sitting area, dual sink vanity in master bath with separate soaker tub and shower. Kitchen has breakfast bar open to dining and living area. Side entry 2 car garage and screened-in patio off living area.

Welcome home to Windsor Place at West Bay Estates! Come view this inviting pond front, 3 bedroom, 2 bath home with finished bonus room over the garage, which could be used as a 4th bedroom. With over 1700 ft, the open and bright floor plan has a corner gas log fireplace that leads to the kitchen and breakfast area, with tile flooring, upgraded maple cabinets, and Profile appliance package. The master bedroom boasts a trey ceiling with ceiling fan, while the master bath has a dual vanity sink, soaking tub, separate shower and walk in closet. This home has its own laundry room with built in cabinets and shelving that leads to the 2 car garage. The garage has built in cabinets, extra storage, and epoxy coated flooring.  Enjoy the fenced in backyard with extended patio and pond views along with a slate surround water fountain. This home also includes a security system and a 2-10 one year home warranty. Don't miss out!

Total units sold (and total dollar volume) continues to be up in double digits from the previous month as well as one year ago.  This is important as it shows our region is doing things that many parts of the country are not-and that is selling houses. 

The average sales price vaccilates up and down around each month.  This seems to indicate stability or a "leveling" of values. If prices are indeed bouncing along the bottom, we will only be able to tell when it becomes history.

The Days ON Market (how long it takes a house to go under contract) is up from last year but down slightly from the previous month.

Pending sales are those in which a purchase agreement has been signed by a buyer and seller but it has not closed yet.  The pending sales are up slightly from July and up 11% from one year ago.

For the chart people:  Go to the Wilmington NC Home Sales Market Report for more details.

From July 2011 to August 2011

• Total units sold: +12%
• Average sales price: -3%
• Median sales price: -2%
• Total dollar volume: +9%
• Days on the market: -4%
• New listings: +4%
• Pending Sales: +2%

From August 2010 to August 2011

• Total units sold: +13%
• Average sales price: -0.34%
• Median sales price: -6%
• Total dollar volume: +13%
• Days on the market: +17%
• New listings: -20%
• Pending Sales: +11%

Remember this quote:

My prediction for the next two to three years is that we are going to have a very strong investor market.  We are analyzing sales and we are seeing a big increase in cash buyers and investors.  These folks recognize the opportunities and are getting in on them before it is too late.

We are ramping up our Investor Agents designations (CIAS) and are building a great business model helping folks build generational wealth for them and their families.  More on that to come so stayed tuned!

Wilmington NC Real Estate Sales - Chris Baynes REALTOR Chris Baynes and Associates is one of the areas most successful Realtor Teams.  We specialize in helping buyers and sellers with real estate services in the greater Wilmington NC area including Wrightsville Beach, Carolina Beach, Kure Beach, Castle Hayne, Hampstead, Leland, Belville, New Hanover County, Brunswick County and Pender County, and all Wilmington NC Real Estate.  (910) 470-4408

Enjoy soothing water views from almost every room of this 1-level 2 bedroom 2 bath town home. As you enter into this immaculate home you will find a bright and open floor plan with gleaming hardwood flooring, flexible dining area, vaulted ceilings, cozy fireplace, chair rail moldings, & recessed lighting. The kitchen boast a lovely breakfast nook, ceramic tile flooring, pass through window, smooth top range, refrigerator & plenty of cabinets. The owner’s suite has hardwood flooring, walk-in closet with double vanity & tile in the bathroom. Other features include hardwoods in guestroom, updated roof, cul-de-sac street, ceiling fans, storage shed, extended brick patio, beautiful landscaping & more! Enjoy the community pool, tennis courts, ponds and walking trails.  Conveniently located near Wrightsville Beach, historic downtown Wilmington, shopping and dining.  This home is truly a must see!

Welcome to this charming 3 bedroom, 2 bath home in the popular community of Whitney Pines.  You’re greeted by an open floor plan with plenty of natural light, vaulted ceilings, & soothing custom paint colors. The kitchen boasts lots of cabinet space, built-in microwave, updated appliances & a bright dining area that opens to the screened-in back porch. The screened-in porch is complete with ceiling fan and adjoining patio. This makes relaxing easy as well as overlooking the privacy fenced yard with extensive landscaping and perennial gardens.  Other features include updated interior lighting, full yard irrigation system, split bedrooms, ceiling fans throughout, fax wood blinds, storage shed & more. Home is situated on a large lot & cul-de-sac street so no thru traffic. Whitney Pines is just a few minutes from Wrightsville Beach, shopping, dining & restaurants. All of this plus home is backed by one year 2-10 home warranty. Come take a look at this immaculate home today!

Wilmington NC Real Estate Sales - Chris Baynes REALTOR Chris Baynes and Associates is one of the areas most successful Realtor Teams.  We specialize in helping buyers and sellers with real estate services in the greater Wilmington NC area including Wrightsville Beach, Carolina Beach, Kure Beach, Castle Hayne, Hampstead, Leland, Belville, New Hanover County, Brunswick County and Pender County, and all Wilmington NC Real Estate.  (910) 470-4408