We’ve all seen a barrage of “shocking” headlines on foreclosures, including this Reuters posting declaring September 2010 set an all time record with 100,000+ foreclosures nationwide. Howard County home buyers and sellers want to know what impact are foreclosures having on our local market?  Are foreclosure homes in Ellicott City above, below, or equal to the national average? And, how are prices of non- foreclosure homes in Columbia, Maryland affected by foreclosure homes in Howard County Maryland?

A foreclosure certainly decreases the value of the foreclosure home itself, estimated to be an average of 27% according to a posting by Molly Line.  But studies on the affect foreclosure homes have on other homes’ values are less clear and vary in their conclusions, but one study impressed me personally.  A Federal Reserve Bank, Cleveland, Sept 2010 report suggests that where foreclosure rates are “moderate” the impact on housing prices is just -1.6%.

So – do we have “moderate” rates of home foreclosures in Howard County, Maryland?  Are home foreclosure rates in Ellicott City above or below the Howard County average?

For the second quarter of 2010 foreclosures represented 24% of all home sales nationwide.   Statistics from our local Realtor® database of homes (“MRIS”) shows that there were 430 foreclosure home sales in Howard County Maryland from January to September, 2010.  Out of  2,140 total home sales, foreclosure home sales in Howard County represented 20.1% of all home sales.  (Find all Howard County MD or Ellicott City homes for sale here, or search specifically for foreclosure homes in Howard County MD or Ellicott City here).

While every foreclosure is a heartbreak for the family involved, it is partially good news to know that the Howard County rate of foreclosure home sales is less than the national average.

We have broken down statistics even further, to show the impact of foreclosure home sales by neighborhood (Centennial High School area home sales had fewer foreclosures, by far, than the county average) as well as by price range (you’d be shocked to see which price range had a 48% foreclosure average vs. which had a 0% average).

You can request our full analysis of Howard County Foreclosure Homes – By Region And Price Range here.  We hope to publish bits and pieces of the full report, by area, in future blogs.   As per usual, you can call 410-772-5400, M-F, 9-5 with any questions about Howard County real estate, or send us an email here.  Blessings

4BR Columbia colonial under $250,000!

In the course of earning a living selling real estate in Howard County I come across homes for sale that strike me as being better-than-average bargains, even considering that the current market has lots of homes priced pretty low. (Clear her to receive my current the complete list of “Top Ten Howard County Home Bargains” … I’m willing to share!).

One such seemingly under-priced bargain is the home pictured below.  Although it has a county tax assessment value of $379,900 the asking price is only $249,900 – a whopping $130,000 below tax assessment value!  For a 4 bedroom colonial in a quiet Columbia neighborhood, it seems like a steal.

True, it likely is a bit dinged-up on the inside – but for $130,000 off, what would you expect?  If, as I suspect, it could be easily spruced up for around $20k or so, it’s still a raving bargain.

What are the “best deals” in Howard County real estate today? Are they foreclosures? Short sales? Or perhaps “regular” sales where the owner has a lot of equity and wants it priced to sell quickly?

The answer is: yes… any and all of the above may represent the “best home bargain” in the county.

In my experience real estate “bargains” come in lots of places, and if you focus on just one, you’re probably missing out.  Buying foreclosures at the actual auction is both highly risky and typically more expensive than you’d think.  Buying short sales involves certain time delays and contract risks, and buying bank-owned (or “R.E.O.”) homes also involves risk.  However, in their proper place, each can be a source of excellent value when buying real estate.

For a complete list of my current “Top Ten Howard County Home Buys” click here.  And/or, if you wish, you can shedule our famous “No Hassle, No Obligation Home Tour” of any home on the list.

(And if you’re really in a goll-busted hurry, call my cell phone at 301-922-2007).

Thanks!

Home prices today in Howard County are absolutely stunning in terms of the “reality gap.”  Roughly 40% of Howard County homes for sale are priced at least 15-25% above where they belong.  At the other extreme, about 2-3% of Howard County homes for sale are significantly under priced, some by as much as $50,000 to $200,000 under priced. 

Often as I scan the Realtor® MRIS system I come across some amazing bargain homes for sale in Howard County. Yeah, they can be ‘beat up’ a bit in terms of cosmetics – but wouldn’t you be willing to paint and carpet a $300,000 home for, say, an $85,000 discount?!

So, I’ve decided to launch a “Top 10 Howard County Home Bargains” section to my blog.  Roughly once a week I will scan the MRIS system for the most amazing, under-priced bargains I can find.  Some will be homes in top condition, where the seller just wants to “get out fast.” More often they will be Howard County foreclosures, or bank-owned, or short sales, which typically need “some work.” 

But, hey, if you can paint some bedrooms and get new carpet installed… and save $85,000 off the price in the process… why the heck not?!

One bargain I recently found (pic  below) is a 3 bedroom, 2 full bath townhome in Columbia!  This home sold in June 2006 for $285,00. At today’s values I’d expect to see a discounted price tag around $235,000, so you can imagine my shock when I saw an asking price of just $159,900!  Prices may be down about 19% from their peak, but this is a 44% discount.

I’ll post other homes soon, but if you can’t wait just visit JohnAndAngela.com and request by email our list of “Top 10 Howard County Home Bargains.”

A quick search of the the Metropolitan Regional Information Systems (“MRIS”) Realtor database of homes on December 15 2008 reveals that 37% of homes currently listed are openly declared to “distressed properties”, either in foreclosure or REO or short sales.  (Click Here to get a copy of this report and/or a list of foreclosure properties in your exact price range).

Finding Foreclosures in Howard County

If you are a Howard County home buyer, where do you go to find foreclosures, REO’s or other “distressed properties”?

Lots of websites claim to have “the best” source of foreclosure listings online. In fact, some even charge a fee just for access. (See Foreclosurepoint.com’s $79/month search fee).  As a consumer, what is the “real deal”?  Should you pay such a “foreclosure search fee”?  Where can you really find the single best source for foreclosure listings online?

Truth is – the single best location to find foreclosure and distressed home sales in Howard County is the MRIS Realtor® database of homes, and there is no reason why you should pay a cent to search these homes online.

When a home is in the process of being foreclosed upon, it is generally not offered “for sale” period, because buyer and lender both would have to agree to the sale, and rarely is this the case.

When a home is actually auctioned for sale at the Howard County courthouse steps you can purchase it at auction, but this process involves huge risk and is inappropriate for most home buyers.  The only reliable source of all such foreclosure auctions is the print edition of the Howard County Times, the paper of legal record.

But, once the lender has completed a foreclosure (REO homes) and/or when a lender is agreeable to a “short sale”, fully 98% of these homes can be found by you simply by searching any consumer portal to the MRIS Realtor® database of homes.  That is because lenders, wanting to get rid of these homes as quickly as possible, insist they be marketed through the MRIS.

Naturally we’d suggest you use the JohnAndAngela.com site to search for foreclosure and distressed homes in Howard County. Why? First, we use full IDX (Internet Data Exchange) data sharing.  You’ll not only see “real time” info the same as Realtors®, you also get the most complete set of info available to consumers, including street addresses for every home!

But whether you search the MRIS through our site or another Realtor®’s site please don’t waste your money paying to search foreclosures online – because you won’t get anything that you can’t already get for free from sites like JohnAndAngela.com.