According to The Sentinel-News, foreclosures in Shelbyville Kentucky are increasing this year for 2007. The commissioner at the Shelby County Circuit Court said that last year there were 120 foreclosures, and projections for this year range from 160-180.
Most recently, the commissioner has been getting 4 referrals a week for foreclosures.
Most persons feel that this can be tied to the subprime mortgage lending market, and the somewhat soft economy. This has resulted in a lot of changes for the mortgage industry, most notably the removal of 100% financing being available for home buyers.
I think that has some part to do with it, but I believe it also can be tied to the overinflated values and inventory for the Shelbyville Kentucky real estate market. There is substantially more inventory in the Shelby County area, than there is in the Louisville Kentucky real estate market overall. Sales are down in Shelbyville Kentucky.
In the most recent issue of Kentucky REALTOR magazine, it shows that for the Greater Louisville Association of REALTORs, (GLAR), and the Shelbyville Board of REALTORs (SBOR), it shows the following statistics comparing June 2007 sales vs. June 2006:
June 2006: GLAR 1518 solds, Shelby County 74
June 2007: GLAR 1555 solds, Shelby County 56
The Louisville Kentucky real estate metropolitan market INCREASED their sales by 2.44%. The Shelbyville Kentucky real estate market DECREASED their sales by a staggering -24.32%.
And before you start rationalizing that it was a due to people in Louisville selling their properties at a discount:
The median price for Louisville INCREASED by 3.38%. And the Shelbyville KY real estate market only dropped -2.36%.
This clearly shows that the Shelby County real estate market needs to get with the program when pricing their listings.
So, while the old theory of supply vs. demand would seem to apply, and you would expect to see a decrease in real estate values – many times real estate agents in Shelby County seem to take overpriced listings without doing their homework or research for what a property should sell for in today’s market.
At best, this is an ostrich bury-your-head-in-the-sand point of view refusing to acknowledge the REALTOR data thats provided by a simple search on the GLAR MLS.
And at worst, this is real estate agents being lazy by not doing their job in educating their clients on what value their home should be priced at to sell for within a given expected market time. Essentially, in the most basic of terms: this is allowing the seller to pick the list price. Or, alternatively using VERY poor, out of date, and non-comparable comparables to determine the real estate listing price.
There have been several instances recently where I’ve discussed making offers on behalf of my buyers/clients for various Shelbyville Kentucky real estate, but the homes were so grossly overpriced relative to what could be verified and substantiated, that I’ve felt the need to speak to the current listing agent to find out how they arrived at the list price for the home before even writing the offer.
I explain in great detail how I’ve arrived at my values, using good, recent and relevant comparables as well as making adjustments for age, wear, etc for the subject property – and that I’m looking for guidance on how they arrived at their price and offer to send them the Word and Excel reports that I’ve prepared to show how I arrived at the CURRENT fair market value for their home.
I’m usually then met with a response that is reminiscent of a deer staring into headlights, and that the real estate agent has NO REPORTS OR DATA to support their price. Its what the seller wanted to list the property for – and they wanted the listing, so thats what they listed it for.
Part of a real estate agent’s job should be to educate their clients. If you aren’t able (or willing to do the work to find out) to substantiate a value – then you should seek competent and authoritative guidance from an expert that can get you pointed in the right direction.
Real estate agents that know their clients are in financial duress, need to sell their home – and then take a bloated overpriced listing, are doing a disservice to themselves AND their client. These are the persons that end up having to sell their house at auction, or worse – end up in foreclosure.
One of the homes listed in the article in The Sentinel-News Shelbyville Kentucky newspaper, says that a $600,000 home is now going into foreclosure. I wonder what the “real” market value of the home is actually going to be.
Thats not how I want any of my clients to find out what the value of their property is.
Shelbyville Kentucky Real Estate Foreclosures Increasing
Most recently, the commissioner has been getting 4 referrals a week for foreclosures.
Most persons feel that this can be tied to the subprime mortgage lending market, and the somewhat soft economy. This has resulted in a lot of changes for the mortgage industry, most notably the removal of 100% financing being available for home buyers.
I think that has some part to do with it, but I believe it also can be tied to the overinflated values and inventory for the Shelbyville Kentucky real estate market. There is substantially more inventory in the Shelby County area, than there is in the Louisville Kentucky real estate market overall. Sales are down in Shelbyville Kentucky.
In the most recent issue of Kentucky REALTOR magazine, it shows that for the Greater Louisville Association of REALTORs, (GLAR), and the Shelbyville Board of REALTORs (SBOR), it shows the following statistics comparing June 2007 sales vs. June 2006:
June 2006: GLAR 1518 solds, Shelby County 74
June 2007: GLAR 1555 solds, Shelby County 56
The Louisville Kentucky real estate metropolitan market INCREASED their sales by 2.44%. The Shelbyville Kentucky real estate market DECREASED their sales by a staggering -24.32%.
And before you start rationalizing that it was a due to people in Louisville selling their properties at a discount:
The median price for Louisville INCREASED by 3.38%. And the Shelbyville KY real estate market only dropped -2.36%.
This clearly shows that the Shelby County real estate market needs to get with the program when pricing their listings.
So, while the old theory of supply vs. demand would seem to apply, and you would expect to see a decrease in real estate values – many times real estate agents in Shelby County seem to take overpriced listings without doing their homework or research for what a property should sell for in today’s market.
At best, this is an ostrich bury-your-head-in-the-sand point of view refusing to acknowledge the REALTOR data thats provided by a simple search on the GLAR MLS.
And at worst, this is real estate agents being lazy by not doing their job in educating their clients on what value their home should be priced at to sell for within a given expected market time. Essentially, in the most basic of terms: this is allowing the seller to pick the list price. Or, alternatively using VERY poor, out of date, and non-comparable comparables to determine the real estate listing price.
There have been several instances recently where I’ve discussed making offers on behalf of my buyers/clients for various Shelbyville Kentucky real estate, but the homes were so grossly overpriced relative to what could be verified and substantiated, that I’ve felt the need to speak to the current listing agent to find out how they arrived at the list price for the home before even writing the offer.
I explain in great detail how I’ve arrived at my values, using good, recent and relevant comparables as well as making adjustments for age, wear, etc for the subject property – and that I’m looking for guidance on how they arrived at their price and offer to send them the Word and Excel reports that I’ve prepared to show how I arrived at the CURRENT fair market value for their home.
I’m usually then met with a response that is reminiscent of a deer staring into headlights, and that the real estate agent has NO REPORTS OR DATA to support their price. Its what the seller wanted to list the property for – and they wanted the listing, so thats what they listed it for.
Part of a real estate agent’s job should be to educate their clients. If you aren’t able (or willing to do the work to find out) to substantiate a value – then you should seek competent and authoritative guidance from an expert that can get you pointed in the right direction.
Real estate agents that know their clients are in financial duress, need to sell their home – and then take a bloated overpriced listing, are doing a disservice to themselves AND their client. These are the persons that end up having to sell their house at auction, or worse – end up in foreclosure.
One of the homes listed in the article in The Sentinel-News Shelbyville Kentucky newspaper, says that a $600,000 home is now going into foreclosure. I wonder what the “real” market value of the home is actually going to be.
Thats not how I want any of my clients to find out what the value of their property is.