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Odenton's Unlovables?
These 14 Local Properties Have Been Languishing on the Market for More Than a Year
In one sense, they’re the unlovables. The unwanteds. The last kids picked for the team. The bridesmaids but never the brides. They’re the homes that sit on the market for forever.
Fourteen such residential properties in Odenton have been on the market for more than a year. Some for more than two years. One for nearly 2,000 days.
Days on
Market
ML#
Property
Address
Home
Type
List
Price
Short
Sale?
BR/BA/Gar
1,956 AA6568951 700 Orchard Overlook #304 Condo $218,083 Yes 2/2/0 1,329 AA7007200 2711 Hickory Knoll Ct E TH $319,500 2/2.5/0 1,129 AA7147058 8601 Roaming Ridge Way #201 Condo $217,000 2/2/1 573 AA7902887 1942 Palonia Ct TH $199,000 Yes 3/2.5/0 561 AA7692305 702 Orchard Overlook #301 Condo $197,500 2/2/0 534 AA7588727 1323 Tree Side Ct Detached $275,000 4/2/0 527 AA7872234 2519 Orchard Knoll Way TH $269,000 Yes 3/3.5/0 518 AA7623770 8603 Wintergreen Ct #302 Condo $344,900 3/2/1 497 AA7639282 696 Winding Stream Way #201 Condo $199,900 2/2/0 486 AA7647123 2270 Canteen Cir TH $270,000 3/2&2/0 408 AA7658866 1908 Cannon Ridge Dr Detached $265,000 Yes 3/2.5/2 392 AA7709182 1211 Breitwert Ave Detached $374,990 4/2&2/1 387 AA7712146 8610 Fluttering Leaf Trl #408 Condo $244,900 2/2/1 371 AA7721868 1310 Tree Side Ct Detached $275,000 4/2/0
So why hasn’t some good-hearted buyer taken these fine properties home from the pound? Why have the homes been on the market for so long? And -- more importantly for buyers facing a lack of housing inventory in the Odenton area -- do these homes represent a good buying opportunity?
A closer look at the homes finds several reasons behind their long stay on the market. As well as some encouraging signs that many of the properties ultimately will be sold.
Reason 1: Inflated Prices
Home buyers are discriminating and they will not pay more for a property than the market rate. Thus, homes that are not optimally priced have a hard time competing with homes that are.
This is a prime reason why several of the 14 homes on the list above have been on the market for so long.
To illustrate, of the 14 homes on the list, half have had price reductions of $20,000 or more since they first hit the market. The three properties that have been on the market for more than a thousand days have had an average price reduction of $46,000 since they were first listed. The home on Cannon Ridge Drive in Seven Oaks has dropped its list price $84,000 since it first was listed for sale 408 days ago.
It’s a hard lesson for sellers: Overpriced properties can sit on the market for years.
Reason 2: Short Sales Can Take a Long Time
Millions of homeowners are “underwater” on their mortgages, but many still want or need to sell their properties. These sellers often end up in distressed property sales.
Short sales in particular pose many problems for a home seller – and for potential buyers of the property -- because third-party approval of the sale by the lender is required. Many banks are overwhelmed by the number of short sale requests they receive and often banks are terribly inefficient at handling them.
It’s not surprising to learn, then, that four of the 14 properties included on the Odenton list are potential short sale candidates, and administrative delays and rejected buyer-offers have played a significant role in keeping these homes on the market for an extended period.
This problem is exacerbated when a home has more than one mortgage and each of those mortgages is held by a different bank. When this situation occurs (as it does for the Cannon Ridge Drive home), approval of the sale must be obtained from each of the lenders, in a timely manner. This is no easy task.
Short sales also extend a home’s time on the market in cases where the lender considers and rejects an offer, then starts the process all over again with a subsequent offer. For example, if the lender takes six months to consider and then reject an offer, a subsequent offer might be submitted, only to take another six months of consideration. Where this happens, it’s easy to see how a year can go by and the seller is no closer to selling the property than he was when the process started.
Other Reasons for Delays
There are other reasons some of the 14 homes have been on the market so long.
- For the two homes on Tree Side Court, the properties are part of a new mini-subdivision near Piney Orchard Parkway and the Odenton MARC Train station. Each of the properties was listed on the MLS many months before construction of the homes began. Thus, their extended “days on market” is not necessarily an accurate gauge of their market appeal. According to the homes’ builder, 1323 Tree Side Court is now ready for occupancy; 1310 Tree Side just had its foundation poured.
- In addition to pricing issues, the condominiums for sale on Roaming Ridge Way and Wintergreen Court are located in 55+ communities. As such, they appeal to a significantly smaller subset of buyers (55+). Plus, they face stiff competition from existing 55+ homes and the new-construction 55+ projects at the nearby Gatherings at Forest Glen (Odenton) and Carroll’s Creek, on Waugh Chapel Road (Gambrills).
- Some sellers also have the luxury of waiting for the very best offer for their homes. This might occur for personal reasons (2270 Canteen Circle), or the seller might lease the property to a tenant while he fields the most attractive purchase offers (2711 Hickory Knoll Court).
- Finally, buyers’ tastes are notoriously subjective. Some buyers might find a particular home ugly, outdated or in poor condition. But a different buyer might want the home precisely for that reason. In the case of the home at 1211 Breitwert Ave., for example, a buyer might not want the home because it has a swimming pool.
Hope Springs Eternal
But there’s an old adage in real estate: There’s a buyer for every house. And even though a home may be on the market for an extended period, the possibility always remains that a buyer will step forward.
In fact, in the case of Odenton’s current crop of unlovables, three of the properties do have contracts on them.
- 8601 Roaming Ridge Way (1129 days on market) went under contract on Oct. 9;
- 1942 Palonia Court (573 days on market) is under contract and slated to close on Nov. 30; and
- 702 Orchard Overlook (561 days on market) is under contract and scheduled to close on Nov. 29.
There’s no guarantee these purchases ultimately will be finalized. But it proves there’s hope for the seller of every property out there.
And sometimes, you can’t help but root for them.
Jerry Kline is a Realtor with the Odenton, Md., office of Keller Williams Flagship Realty (1216 Annapolis Rd., Odenton.) For more information on the local real estate market, contact him at (443) 924-7418.
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More Americans Bank on Real Estate to Build Wealth
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Borrowers With Sub-660 Credit Scores Face Hurdles
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The Worst Home-Showing Offenses That Alienate Buyers
REALTOR® Magazine recently received more than 50 responses from buyer agents who revealed their pet peeves when touring homes with clients — offenses that, they say, have buyers racing for the door. Top 10 Worst Home-Showing Offenses
Sold in 9 Days by Jerry Kline!
"Jerry did a superb job of staying in touch. He listened to my comments, processed them fully and provided value-added feedback. He did a great job in solving/resolving issues as they arose. I like the fact that Jerry was accessible, responsive and professional." - Michael Ziegler
Congratulations to Michael on the sale of his home! Michael's property was the first re-sale in the year-old Courts at Bonaventure community, right in the heart of Odenton.
Got a real estate need Jerry can help you with? Give him a call! (443) 924-7418.
Sold in 2 Days by Jerry Kline!
2255 Misthaven Lane in Gambrills, Maryland. Recently sold by Jerry Kline, realtor, Keller Williams Flagship of Maryland.
“I met with, talked with, and emailed several Realtors over the past year and [Jerry] was the only one that followed up.” -Halle Papai
Let me help you with your real estate need. Call (443) 924-7418 today!
Odenton Three-Month Home Sales Rise 17 Percent Over Last Year
Piney Orchard led the way with 48 homes sold, while Seven Oaks had 22
The number of homes sold in Odenton between Aug. 1 and Oct. 31 rose 17 percent over the same period last year, according to figures provided by the Metropolitan Regional Information System. The three-month numbers indicate the local housing market may indeed have turned the corner after several years of falling sales numbers and price declines.
The Piney Orchard community led the town of Odenton in the number of homes sold during the late summer periods of 2011 and 2012, with 48 homes sold over the most recent three months and 31 homes sold from Aug. 1 to Oct. 31 last year.
By a wide margin, Piney Orchard and the Enclave at Seven Oaks led Odenton communities in the number of homes sold during both years. From Aug. 1 through Oct. 31 this year, Seven Oaks had 22 homes sold, while over the same period last year Seven Oaks had 23 homes sold. (See table below.)
Chapel Grove, with nearly 250 single family homes and more than 100 townhomes, was the next highest community in terms of home sales. Maple Ridge, Lions Gate and Four Seasons Estates also contributed steadily to Odenton homes sales during the period.
Eleven Odenton communities produced 87 percent of Odenton home sales during the most recent three-month period. The same 11 communities produced 89 percent of Odenton homes sales from Aug. 1, 2011 through Oct. 31, 2011.
Odenton Community
No. Homes Sold
8/1/12 – 10/31/12
No. Homes Sold
8/1/11 – 10/31/11
Piney Orchard
48
31
Seven Oaks
22
23
Chapel Grove
6
4
Maple Ridge
3
7
Lions Gate
5
4
Four Seasons Estates
3
5
Odenton Heights
2
3
Eden Brook
3
1
Kings Ransom
2
2
Kings Heights
1
2
Town Center Commons
1
2
Other
14
10
Jerry Kline is a Realtor with the Odenton, Md., office of Keller Williams Flagship Realty (1216 Annapolis Rd., Odenton.) For more information on the local real estate market, contact him at (443) 924-7418.
Considering a Short Sale? Here are 7 Tips for Success
From HOUSELOGIC.COM, by G.M. Filisko, an attorney and award-winning writer. A frequent contributor to many national publications including Bankrate.com, REALTOR® Magazine, and the American Bar Association Journal, she specializes in real estate, business, personal finance, and legal topics.
Have to sell your home for less than it’s worth? Here are seven tips to help you get the best price.
1. Know who you owe
A short sale has to be approved by any company that has a mortgage or lien against your home. That includes your first, second, or even third mortgage lender, your home equity line lender; your homeowners or condominium association; and any contractors who’ve placed a lien on your home. Make a list and start talking to everyone early in the process. Ask what documents they’ll need from you.
2. Pick your short sale team
You’ll need to work with a team of short sale experts, including a real estate agent, real estate attorney, and your accountant. Look for agents and attorneys who advertise themselves as short sale experts. Interview at least three, and listen carefully for signs that they understand the complexities of the short sale process.
Agents should explain how they’ll arrive at a suggested price for your home. Ask them to show you a sample short-sale package or for an example of a prior short-sale success.
3. Get your documents ready
Gather the paperwork your creditors and mortgage lenders asked to see, like your listing agreement and a hardship letter explaining why you need to do a short sale. You’ll also need proof of what you earn and what you owe as well as copies of your federal income tax returns for the past two years.
4. Expect delays
Despite a federal rule saying banks participating in the federal government’s Making Home Affordable loan modification program must respond to short-sale offers within 10 days, it may take weeks or months for your lender to decide whether to allow you to sell your home in a short sale--and even longer if you must negotiate with more than one lender or lienholder.
Your lender and lienholders don’t have to agree to your proposed short sale. They can reject your terms or make a counteroffer, which can create further delays.
5. Anticipate demands
Discuss with your short-sale team how you should respond to common short-sale demands from lenders. For example, are you willing to sign a promissory note agreeing to pay outstanding amounts after the sale is complete?
6. Know the tax implications
Any unpaid amount of your mortgage “forgiven” by your lender through a short sale may be considered income to you under federal tax rules. Ask your attorney or accountant whether you qualify to exclude that amount as income on your tax returns under the Mortgage Forgiveness Debt Relief Act and Debt Cancellation Act. Also ask if you’ll be required to report amounts “forgiven” by other lienholders, if applicable.
7. Consider how the short sale will affect your credit and what you must pay
Ask whether your lender will report the short sale to credit-reporting agencies. Having a portion of your debt forgiven may negatively affect your credit score, but a short sale typically damages your score less than a foreclosure or bankruptcy.
Ask you lawyer whether you'll be responsible for paying back the lenders' loss. If the lender says it will forgive any losses on the sale of your home, get that promise in writing.
Other web resources
IRS information on the Mortgage Forgiveness Debt Relief Act and Debt Cancellation This article includes general information about tax laws and consequences, but isn't intended to be relied upon by readers as tax or legal advice applicable to particular transactions or circumstances. Consult a tax professional for such advice; tax laws may vary by jurisdiction.
