It is important to realize that the buyers are in charge of the market at this time. 

It reminds me of the time that Jane and I were driving back to Hilton Head from Jacksonville and Jane wanted to stop at Krystal.  I decided to go get some gas while she was getting the food.  There were two gas stations right across the street from each other  - one advertising gas for $2.39/gallon and the other advertising $2.99/gallon.  The gas station with the less expensive gas was getting all of the business and it was easy to understand why. 

It is the same way with the real estate market; nobody is going to pay $400,000 for a house when there is a bank foreclosure that is almost identical down the street priced at $349,000. 

Sure, the bank foreclosure might need new carpet and some fresh paint, but that is just a small expense in the long run.  Hopefully one day we will get back to the days where there are more “regular sellers” and not so many foreclosures.

I guess this really shows that it does not matter what a good deal a property is; if you do not like it, you are not going to buy it.  I always try to point out to people that the need to like what they buy because they are going to have to live in it.

There is a law that says that  if a certain number of people are behind in their regime payments within a certain condo complex, lenders are not allowed to lend in these developments.  This is really making it hard to sell some condos because they need cash buyers.

I was talking to a fellow Realtor in Chicago and she was telling me about this particular issue that was complicating one of her sales; financing would not go through on a purchase because there were too many people behind on their regime payments. 

She ended up going to the complex and found out that there were only two people too many behind on their payments; she paid their fines to bring them up to date which allowed the financing and the sale to go through. 

I’m hoping that we will not see this problem in Hilton Head, but this is already a problem in one particular complex.  This has been driven by many people going into foreclosure; when they can’t pay their mortgage they often stop paying regime fees and insurance. 

I’ll keep you posted on this – it is something that is new and we don’t know all the details, but it is definitely concerning to all of us.

The following are the states with the lowest percentage of mortgages with negative equity; Oklahoma with 6.1%, New York with 6.2%, Montana with 7.4%, Alabama with 7.4% and North Dakota with 8.6%.  There were several states that did not report including Louisiana, South Dakota, Maine and West Virginia. 

If you will notice, the states with the highest percentage of mortgages with negative equity are ones where massive building occurred and most of the mortgages were obtained between 2003 and 2007.

For the real estate market to turn around we are going to have to see the number of foreclosures reduced.  With high numbers of foreclosures, it makes it very hard for regular sellers to compete in the real estate market. 

For purchasers, there are some great opportunities available.  Visit my website to view a list of short sale and foreclosure properties available for sale.

I find this absolutely unbelievable – this means that in Nevada that 2 out of every 3 people with a mortgage have negative equity.  These statistics have a detrimental effect on the real estate market.  I feel that it important to realize that one of the first things that needs to be fixed is the real estate market as it has an effect on many other factors in this economy.

If you look at these numbers you will realize that we have not solved the foreclosure problem in the United States and it could definitely get worse before it gets better.  For purchasers, there are some great opportunities available. 

Stay tuned – tomorrow I will give you the states with the states with the lowest percentage of mortgages with negative equity.

We went through a 15-year time period where we had no foreclosures on Hilton Head.  There is an old saying that says “a rising tide lifts all boats” and when people’s property values are going up 10%-25% per year there are not going to be any foreclosures because they can sell the property at any time they want. 

When the reverse of that happens, people who purchased in 2004, 2005 and 2006 are left in trouble and due to financial difficulties, some lose their home to foreclosure.

In a slow real estate market, buyers are always looking for the best deals out there and they are often interested in foreclosures.  This would have a negative effect on someone who is not a foreclosure because you have to deal with these properties. 

Many times people think that foreclosures don’t have any effect on their property value.  Buyers don’t look at it that way.  A buyer is looking for the best deal available – whether it is a foreclosure or not.  It is important to realize that any and every seller has to compete with foreclosures.

There are some great deals out there.  If you as a buyer, are interested in getting a list of the foreclosures please let me know.  We can set you up so that you will be notified of new foreclosures – it is fast, easy and harmless. 

Click here to view my Hilton Head and Bluffton foreclosure properties.

I have named 2010 “the year of the buyer”.

Why?  It is such a great year to buy real estate on Hilton Head.  There are so many good properties out there at unbelievable prices.  I feel like a kid in a candy store. 

I encourage all my clients to analyze their situations – buy now and be happy later.

We have had 16 homes sell on Hilton Head Island that were foreclosure homes.  These homes sold for 94.9% of list price and were on the market for an average of 66 days. 

He ran the same statistics for the year.  During 2009, we had 50 homes on Hilton Head Island that were foreclosure homes.  These homes sold for 95.6% of list price and were on the market for an average of 69 days. 

Several of the homes actually sold for more than they were listed for because banks usually put such an attractive list price on them that sometimes people will get in a bidding battle.

Are foreclosures the best buys?  A lot of times they are.  It depends on the price, the motivation of the bank and how long they have held the property.

Click here to view Hilton Head Island foreclosures or click here to learn all the steps in how to buy a foreclosure on Hilton Head Island.

There are some great deals available.  If you go to our website JamesWedgeworth.com we have a foreclosure section where you can see some of the best deals. 

Also, if you’re interested in a foreclosure property please type your interest in and we’ll call you.  Some of the best deals are sold even before they are on the market.

If you’re thinking of buying a resort property on Hilton Head, I have never seen a better time to buy.  I know there are a lot people whose New Year’s resolution is going to “pick up a place at the beach”; well now is a good time to do so. 

All of the lights are green when you look at what is important.  First of all, prices are down to approximate levels that we saw 6 or 7 years ago.  Second, interest rates are at historic lows.  Third, inventory levels are extremely high.  In other words, whatever you want, we probably have three or four of them. 

When you look at what is happening in the real estate market now it is a great time – the wait is over!

For buyers it is also good news that there are a number of bank foreclosures properties that banks are willing to sell at greatly reduced prices.  So not only do you get a good value but you get a good location, good interest rates, and there are a lot more motivated sellers that want to get their property sold.

How long will this window of opportunity last?  Well, I don’t know but I know usually the market picks up in the Spring.  So if people are looking to purchase, I tell them now is a good time to do so.

Sincerely yours,

James Wedgeworth