Winchester, VA

Like Spring that is just around the corner, a new revitalized real estate market is emerging in the area. The Winchester, VA real estate market is getting a face-lift. The number of active fair market listings in the Winchester / Frederick County area total 394. When short sales and foreclosures are included in the active listings, the total listings come in at 480.

The number of short sale and foreclosure listings currently on the Winchester / Frederick County market make up 18.8%. That's down from 20% in January-February 2012. Of that number, Frederick County has 13% of the distressed active listings. Frederick County is much larger in overall volume of residential real estate. So, it stands to reason that it would have the higher number of distressed listings.

There is an inverse relation with short sales in the city of Winchester. Winchester has 8 short sales currently active. It only holds 3 REOs. Frederick County shows a greater number of short sales than REOs. Current active short sales in Frederick county make up 59% of total distressed listings. Foreclosures make up the remaining 41% of distressed properties.

As foreclosures decline throughout much of the country, it would be easy to assume that short sales will increase. The Winchester / Frederick County area is mixed, but it is coming in line with that assumption. That may mean that short sales are moving into the slot that foreclosures held just a few months ago.

Even with the short sales and foreclosures switching places, the overall number of distressed properties in Winchester / Frederick County is seeing a slow but steady decline in distressed properties. Fair market listings are beginning to see a continuous increase in overall listings. That fact alone, can bring a certain sense of price stability to the local market.

The sun is shining on the Winchester, VA real estate market. It's a good time to buy, and it's a good time to sell. As the fair market listings increase, sellers can find some comfort that maybe, just maybe, we've finally hit bottom and we're beginning to bounce back to a new norm of value stability.

Available listing in Winchester / Frederick County, VA - March 2012

Available foreclosure listings in Winchester / Frederick County, VA - March 2012

Available short sale listings in Winchester / Frederick County, VA - March 2012

The short sale market in Winchester, VA is showing signs of change, but it's hard to tell if it's good change, bad change or just change. The current available listings stand at 544. Of that number, 51 are potential short sales. That's currently standing at 9.1% of total active listings. Foreclosures make up another 6.65%. That foreclosure number is a declining number since February 2012.

The low number of short sales may only be masking what has been going on in the past months. The short sales that are currently under contract make up 41% of all listings that are pending. That is an incredible number. It's like watching a creature writhing and you can't tell if it's in the early stages of birth or the last stages of life.

The shift away from foreclosures has not been totally unexpected. With banks making a greater effort to get distressed homeowners into a short sale listings, it's only reasonable to see the number of foreclosures decline. The number of short sales may be an indicator of a new bank strategy more so than a sign that distressed homeowners have finally accepted their circumstances.

It is to the bank's advantage to encourage distressed homeowners to sell their homes through the short sale process. The bank can keep the homeowners in the property up to the point of closing. They are more likely to keep the home in good condition through the sale process. An empty house is a target in any market. It may not suffer from vandals, but it may simply suffer weather and decay.

So, is the Winchester market moving away from short sales? Maybe. Maybe not. At this stage of the market change it's hard to tell if the current conditions are a trend or a blip. No matter which it is, there are a lot of great opportunities for buyers. Short sales present excellent opportunities for buyers who are looking for bang for the buck. If you're looking for a short sale in Winchester, VA, or if you need to sell your home through short sale, give Cornerstone Business Group, Inc. a call. Cornerstone is your local short sale expert.

Short sale listings in Winchester, VA - March 10, 2012

The foreclosure market in Winchester, VA has been changing this year. The current market has 544 properties listed and available as of March 10, 2012. Of that group of available listings, only 35 are foreclosures. That brings the current foreclosure listings down to 6.65% of available listings.

If a buyer is looking for a great deal on a foreclosure, he better act fast. The foreclosure market in Winchester, VA is contracting at a rapid rate. How do the current available listings compare to pending sales?

There are 253 sales pending the Winchester market. Of that group, 41 properties are foreclosures. That's 16% of the current pending sales. That's a substantial drop from the February 4 - March 4 closings. During that period 29% of closings were foreclosures. When you add short sales into that period, total distressed home sales made up 51% of total homes sales.

It's hard to say at this point if this is trend or a positive bump in the road, but no matter how you spin it, it's good news. As foreclosures and short sales decline, property values have an opportunity to recover. Will they see the values of the 2005-2008 market? That is unlikely to happen for many years, but any improvement in home values is a plus.

Homeowners who still need to do a short sale may be able to redeem more of their equity for their lenders. That puts them in a better position to execute a short sale. Short sales are another chapter in the local market. The decline in available foreclosures in the Winchester, VA market is a good sign, and hopefully, a new trend.

Available Foreclosures in Winchester, VA - March 2012

Entering into foreclosure may feel like you're falling into a foreclosure pit. Foreclosures in Winchester, VA have fallen to 9% of the current active listing market, but that doesn't mean we're out of the woods yet. Our previous 30 day marketing report included 51% distressed property sales. Depending on the resource you use for your daily updates, the foreclosure market is either declining or increasing. It's no wonder that homeowners don't know what to do.

Don't fall into a foreclosure pit. There are a few things a homeowner can do to avoid foreclosure.

• Have you lost one or more sources of income?
• Are you current on your mortgage payments? If not, are you far enough behind that catching up would take a miracle?
• Are you receiving letters from your lender encouraging a short sale or threatening foreclosure?
  
• Have you become a prisoner to your mortgage? You can't take a vacation, save for college, pay your living expenses on time or sleep at night.
• Has your home become a burden rather than a blessing?
• Has maintaining your home caused your credit to begin a downward spiral?
• Is keeping the home causing the family dynamics to become strained and combative?

This list could be longer, but you can easily see how an impending foreclosure could affect you and your family. There are a couple ways to relieve yourself of a home that is heading for foreclosure. You can contact your lender and offer a deed in lieu of foreclosure. That basically means that you will voluntarily give the house back the lender and walk away. The lender has to agree to the deed in lieu, and it is less expensive for them to accept the house under these conditions than it is to go through foreclosure.

Another option may be a short sale. In a short sale, your lender allows you to sell your home at a discounted price. Make sure you hire a short sale agent that has successfully navigated through the short sale process. It is a tough decision to face, but if it comes to a short sale in Winchester, VA, call Cornerstone Business Group, Inc., and we will help you through the process.

Don't fall into a foreclosure pit. We can help you through this difficult time. There are brighter days ahead, and we can help you get there.

Early in my real estate career, I had an REO company contact me to list and sell one of their properties. That was the beginning of my relationship with distressed properties. I love working REOs. I've sold 100% of my REO listings, and I've sold most within 2% of my list price. It's an area that I really enjoy, and I do it very well.

This January, I had an new REO company call me to list one of their properties. I told them I would need to see it first, and then I would decide. I went to the property and called them immediately and declined the listing. It was without comparison the worst REO I have ever seen. I've had some that were not the best, but they weren't nasty.

I wouldn't even let my employee go in this property without a mask. I tried to get the REO company to donate it to the local fire department to burn it down as practice. The land was more valuable than the house.

After some negotiation, I committed to take it on with the promise that their future listings would come to my company, and they would reduce their share of the commission on this one. In desperation, they agreed.

A property preservation company came and cleaned it out, and it was still horrible. The house was empty, but the smell was so bad that we had to park our vehicles 30-40 feet away to keep them from smelling bad when we left.

With the house empty and ready for list I had to decide how would I market this property. I decided to go with my gut and make it as nasty as the house really was. So, when I listed, I put the worst photos of the house I could find in the listing. I described it just like it was, nasty.

Why, you ask? Because I wanted anyone who went to that house to be serious about the house. I didn't want unsuspecting young couples looking for a bargain to go there hoping to find a fixer-upper that they could move their young family into and raise their kids. This was not that house.

Ironically, within 60 minutes of list, I received a full price offer. I was shocked and happy and grateful. The house goes to closing next week without a hiccup. It's still nasty, but a buyer with vision looked at those horrible pictures, drove by and looked through the windows, smelling that horrible smell and saw a diamond in the rough.

This would have been a horrible house to try to write a fluffy description about. It would have been a horrible house to try to get a skewed picture that might inspire a buyer to see what they could get at a great discount. Don't be afraid to tell the truth. Sometimes it just best to tell it like it is and let the chips fall where they may. You might be surprised at the outcome.