Daniel M. Parkman, Sr. Blog

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45% of American Home Sales are Foreclosures & Short Sales

U.S. realtors see some light at end of tunnel
By Ed Stoddard Ed Stoddard Tue Mar 24, 5:07 pm ET
CLEBURNE, Texas (Reuters) – Small-town Texan realtor Rick Cumins is going to see a paycheck in April — his first since December.

“I’ve got two pending closings in April, one for a property worth $55,000, the other for $68,000. They’ll pay the rent,” he told Reuters in his modest office in the town of Cleburne, about 20 miles south of Fort Worth.

Cumins is not the only realtor who is starting to see some fleeting light at the end of a long and torturous tunnel.

Sales of previously owned U.S. homes rose at their fastest pace in nearly six years in February, data showed on Monday, providing some good news for the recession-hit economy.

They rose 5.1 percent in February to a 4.72 million-unit annual rate, notching their largest gain since July 2003, the National Association of Realtors said. But about 45 percent of the sales were foreclosure or short-sale transactions.

“Yes, it is great news for everyone, but we’ve still got a lot of homes on the market and not a lot of qualified buyers,” said Cumins, 54, whose own small real estate business is on the rocks just a year after he started it.

The North Texas real estate market has not been as badly affected as many parts of the country, thanks in part to a relatively sturdy economy and also to the fact that housing prices did not soar here as high as they did in some other regions.

But small time realtors like Cumins are still feeling the pain here in a sign of the overall gravity of the situation.

A crisis in the housing market sparked by a surge in delinquent “sub prime” mortgages was a key factor behind the U.S. slide into recession.

Now some realtors see the glimmer of a turnaround.

BUYERS EVERYWHERE

“It’s like it’s been raining buyers, when they’ve been the scarcest thing in town,” said Joan Dodd, a realtor who has worked 30 years in the Phoenix Valley — one of the areas most blighted by foreclosures as boom turned to bust.

“The buyers are just seeming to come out of nowhere … We’ve had a long dry spell, but it seems to be over.”

Dodd said she thought interest rates were “fabulously low,” which had helped entice buyers back into the market. She further cited an $8,000 tax allowance for first-time home buyers — a view echoed by others.

Janie Hudson, a Kansas City realtor who has also been in the business for 30 years, said she saw positive trends.

“It isn’t great but I don’t see any doom and gloom. If they are priced well they are starting to sell,” she said.

Just this month, a three-bedroom ranch house, priced at $330,000, sold in its first week on the market at its asking price — something she had not seen for some time.

Atlanta realtor Renee Kunkler said there were signs that things were starting to pick up and she expected the market to bounce back somewhat by the end of this year.

In recent weeks, Kunkler has seen increased numbers of buyers attracted by low rates and also a perception that there were good deals to be had.

She cited one example in which a buyer this week wanted to offer $600,000 on a house that had originally been priced at $799,000 before being reduced to $699,000.

“All buyers are just obsessed about getting the deal. Nobody cares about loving a house. They care about getting a deal, a foreclosure,” she said.

Prices have fallen less heavily in Atlanta’s prosperous northern suburbs inside the perimeter freeway than elsewhere in the city in part because of proximity to the city center.

Back in Cleburne, times remain tough for Cumins.

When he started his business a year ago, he owed $19,000 on his own home. “Now I owe $148,000,” he said.

As a result of his business woes he has to sell some of his beloved guns from his collection of about three dozen.

“I didn’t expect it to get this bad,” he said as he sat beneath the stuffed heads of trophy bucks in his office.


Our team has joint ventured exit strategies with some of the Country’s largest Law Firms, Receivers, Trustees, Courts, Builders, Developers, Brokers and Financial Institutions. Our staff has auctioned in excess of $4 Billion in realty Internationally including a million acres of land, 25,000 acre resorts, golf, ocean front, ranches, 45,000 sq.ft. warehouse, office buildings, commercial, 7,000 luxury condos and Mansions over 24,000 square feet while maximizing revenues and accelerating absorption.

Past clients include: $1.5 Trillion Fidelity Investments; Irving Miller of the Lennar & John D. MacArthur Families, Dean Witter, III, Peter Sibley of Carnival Resorts and Casinos, Forbes 400 Leslie Alexander owner of the Houston Rockets, Christie’s Great Estates, Chevron Mining, Frank Mackle, III of the Mackle Brothers/General Development/Deltona Corps (World record holder having sold 50,000 homesites in a single year) ; Charles Ross, past member of Holland & Knight of St. Pete, FL; Peter Rummell of St. Joe Land Company (largest private land owner in Florida owned a million acres), Sanford Sigoloff of KB Homes, Jeff Lodder & Richard Monprode of Hovsons/Hovchild (K. Hovnanian family), U.S. Federal Bankruptcy Tampa District Judge Alex Paskay; worked thru a $1 Billion L J Hooker bankruptcy with Steve Golub of Proskauer, Rose , Goetz & Mendolson & John Hill, Jr, past managing director of Raymond James Tampa.

Our experience is that the vulture/investor/bulk/wholesale buyers represent the floor or minimum price per unit. They usually open the bidding and are ultimately outbid by end users. A portfolio/asset/pie/project will sell for less bulk at wholesale than in pieces/slices retail direct to the public at auction. Prices generally range from 70%-120% depending upon the market/economy.

Find my bio and sample credentials attached for your consideration.

Respectfully,

Daniel M. Parkman, Sr.
dmparkman@gmail.com
Cel: 561 452 5167
http://www.albertburney.com

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2 Comments»

  Barb Lamont wrote @

Nice post. I think the best way to stop foreclosure is the produce-the-note strategy. I live in Tampa and know one person he helped, and it actually worked. This site has all the videos on the strategy. Watch all the videos here: http://tinyurl.com/bozo2d

  dmparkman wrote @

Barb

thanks for the heads up !!!

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