I think I’ll play with the foreclosure subject today. If you are planning on purchasing in Kingman or Mohave County, you need to do as much research as you can and foreclosures are an important part of the current market. I’ll address the importance of this further down. I’ll also add a couple of permanent links to our link section for foreclosure sites.
The Countrywide link also includes several other links on the left side of the page that go to other bank reo sites. All of the bank sites include addresses of the properties.
The foreclosure.com site is a pay site and does not include addresses without a subscription. However, the preforeclosures include a owner name and street name and using those the address can be looked up on the Mohave county tax accessor site.
The bank owned properties have added another “just pick a number” pricing level to an already “just pick a number” owner pricing level. If you don’t do the research yourself, you are liable to buy a home that is as much as 100k more than another nearly identical house. I have found that the realtors don’t seem to be following the foreclosure market and I would recommend doing your own research and not just blindly accepting your realtors word.
This is difficult to do with the information that the Mohave MLS supplies. Without addresses you are at the mercy of what the realtors choose to tell you about, unless you do your own research. You cannot just see a property on realtor.com and see that it is in your area of interest and contact the realtor.
I am lucky that I have access to a site that supplies the addresses for mls properties. It is a site that my realtor subscribes her buyers to. You can find out more by contacting either Sandy or Cecelia, whose sites are in the links on the right hand side. Both are very good at their jobs, not pushy sales types. They are just out to help you find and purchase a home without pressure. Sandy will help you find a home anywhere in Mohave County and will send you an email with each new listing that meets your criteria. Cecelia is a mortgage banker who can help you with a mortgage and also sends emails out with current interest and lending news.
The Mission Hills Estates subdivision is one that I can use to point out why knowledge is very important in this market. This subdivision was built in the spring of 2006. The houses are on 4000′+ lots. They are mostly 1869′+/- houses with some 1538′+/- floorplans. The original homes were priced from 239,000 to 299,000. A few of the smaller houses sold at the beginning. The builders apparently then rented out many of the remaining homes and the majority of the subdivision is still either rented or vacant. A California investor also purchased 5 of the larger homes for 289,000 in the summer of 2006.
Now fast forward to 2007. At least three of the smaller homes went into foreclosure and are now bank owned. Another two of the larger homes also went into foreclosure. All five of the investor homes were put on the market for 199,900 (90,000) less than he paid. None of them were sold even at the lower price and they have gone into foreclosure. Now here is where the bizarre pricing comes in.
Even though there were 1869′ homes for sale for 199,900, one of the 1538′ bank owned properties was originally priced by the bank at 229,000. They have since lowered it to 193,900. And as the 1869′ homes go through foreclosure and become bank owned, the banks are listing them at a higher price than the owner listing.
There are six homes for sale as of today’s listings. Two of the 1538′ homes are 193,9000 and 195,500. The four 1869′ homes are priced at 197,500, 199,900, 219,900, and 225,900. These houses are all the same, the two less expensive ones have never been lived in. The two more expensive ones may have been rentals.
Then we have the Rhodes Villas, another 69 home subdivision originally built and sold in late 2005. Nearly all were purchased by speculators and as they were completed were put back on the market for resale at an inflated price. A few were flipped for a profit in early 2006, but most owners ended up renting the homes out. By late 2006/early 2007, several were again put on the market. Some were priced at what they had paid, some were priced higher and some were priced lower. No real rhyme or reason to the “just pick a number” pricing.
Now fast forward to 2007. One of the original models was sold originally for 364,275 in 2005. The model was priced at about 140,000 above what the base prices were. The home went into foreclosure and is now bank owned. The bank has priced it at 199,000, it has 2192′ and as of yet it has not sold. It has been listed for about 1.5 months. The second model home is still apparently owned by the original owner and may be rented. The third and final model home is owned by Rhodes and shows an original price of 299,824. It is currently on the market for 309,724 and has 1866′. The original non-model homes sold for 181, 825 to 255,875, depending on the upgrades added. The majority sold for around 181-205. A few are currently on the market, some priced at less than they paid in 2005.
There are many houses on the market priced at less than the current owners paid in 2005/2006. A house on our block is bank owned and priced at only $900. more than the last owner paid in 12/2004 and it has been on the market since August 8th.
As more and more foreclosures come on the market, opportunities to purchase homes for a reasonable amount should increase. The builder discounts and foreclosures should force the resale home prices down. Builders are continuing to grade and build homes, even as hundreds sit unsold on the market. Many home prices here doubled and tripled between late 2004 and early 2005 for no fundamental based reason. Lot prices went up as much as 20 times during the same period. The prices increased mainly due to a credit bubble and a frenzy of speculative buying. Prices are falling across the country and despite what the realtors tell you, it is not “different” in Mohave County.
If you are going to buy, do your own research. Do not depend on the advise of someone who’s pay check depends on your purchase. Make sure you can afford the payments and don’t depend on appreciation in the near future.