April 28, 2009
· Filed under Uncategorized · Tagged Foreclosure, home, real estate, short sales
I tend to work heavily with short sales both as a buyer and sellers agent. I think today you can get a better deal on a short sale than you can on a foreclosure. When a foreclosure comes on the market priced right almost everyone will bid on it (except those that believe it is stigmatized) and the price will be driven up. A short sale will have fewer buyers considering it because not everyone can wait 45 days to 6 months to get an answer. Yes, I have had two short sales take 6 months and heard horror stories of others taking 10 months.
When making an offer on a short sale, understand the bank is going to send out an appraiser or another disinterested agent to give them an opinion on the true value of the property. It is imperative these individuals go into the property to determine price. I have a property listed today at $500,000 that was appraised at $860,000 in Jan. of 2008 with a drive-by. If anyone had walked inside they would have realized this property was not worth that kind of money. There was so much work left to do. In the process of doing the short sale the bank again sent someone to ‘drive-by’ and give them an opinion of the price and they came back with $560,000. If the property is listed at $500,000 and I can’t sell it for that how is the value $560,000? Now the bank has sent someone out to actually step foot inside to give them a real idea.
All of these little steps take time. I love when buyer’s say, “I am going to pull my offer if I don’t get an answer by Tuesday.” The banks don’t care. You can’t threaten them. You can’t motivate them. I have had success one time motivating a bank to give us an answer. My buyer had two offers out and her second choice came back and accepted her offer. We called the listing agent on her first choice (who had said they should have an answer within a week) and told them the situation. They were able to get an answer back within 2 days that they would accept the offer.
When it comes to short sales you must be patient and work with a good agent who knows the short sale process.
April 25, 2009
· Filed under Latest News, Listings
I had a buyer this week narrow their home choices to 2 properties. They were going to go home and put down their pros and cons on each. Within 24 hours both properties were under contract. Yes, even in today’s market homes are selling, so if you are interested in a property I will advise you to make an offer. You always have your 5 day attorney approval period where you can back out for any reason at all…even because you don’t like the paint color.
A seller this week has been faced with the reality that a short sale is the only option for selling. I tend to carry 10+ short sale listings at any one time, so short sales are nothing new to me. There are special considerations that need to be made with a short sale, but we usually try to work out a win-win for all parties involved. Short sales take time and if someone doesn’t have the patience or personality to sit back and wait I will often suggest they look elsewhere for the deal.
April 23, 2009
· Filed under Latest News · Tagged first time buyer, home, real estate, stimulus, tax credit
Considering a new home? Interested in the $8,000 tax credit? Do you qualify as a First Time Buyer? Click here to learn more.
Buyers who qualify for the first-time home buyer tax credit that have already filed their tax returns can still claim their tax credit this year. They will need to file a 1040x form to amend their 2008 tax return and form 5405 to claim the credit.
For more information on your other filing options click here.
This has helped numerous buyers take advantage of today’s great prices, low interest rates and high levels of inventory. I have seen some buyers borrow money from friends and family for their down payment then pay them back when they received their refund. Others have used it to buy the appliances that were missing or replace carpet or paint the home.
If you haven’t owned a home for the past 3 years let’s talk about how you can take advantage of Obama’s Stimulus Plan! Don’t let this opportunity pass you by!
April 19, 2009
· Filed under Buyer · Tagged Buyer, first time, homes, info, mistakes
5 Most Common Mistakes
First Time Home Buyers Make
From www.AmyKite.com
1. They don’t ask enough questions of their lender and end up missing out on the best deal. How many different lenders can you put my application in front of? What are your closing costs? Do you offer FHA financing? Are there any special lending programs that help me with closing costs or down payment? If one lender won’t underwrite my loan can you send it someone else?
2. They don’t act quickly enough to make a decision and someone else buys the house. Even in today’s market this happens. A client of mine had narrowed the search down to two homes and was going home to write a pros & cons list. Both homes went under contract before she made a decision. Can you imagine how frustrated they feel?
3. They don’t find the right agent who’s willing to help them through the home-buying process. Some agents won’t help buyers with short sales or foreclosures, others don’t even know how to do them. Can your agent explain the process of buying a home to you? How many transactions did your agent do last year (you may want to look for someone who was doing 3 or more a month-at least 36 a year). Are they a full-time agent or do you have to work around their full-time job? Are they busy (more than likely this means they are good and in demand)? Do they have a good attitude about the market and that you will be successful in finding a home today?
4. They don’t do enough to make their offer look appealing to a seller. What is most important to the seller? It is always assumed price, but sometimes sellers want to be able to remain in their home until a certain date (last day of school, after the holidays). Maybe they need you to pay cash outside of the contract for personal property. When dealing with short sales your closing date needs to float until after the bank accepts the contract. With foreclosures a cash deal is better and faster closing appealing. Drop as many of the contingencies as possible. More earnest money may make a seller feel more comfortable with your offer. Have you considered writing a letter to tell the seller why you love their property and how you look forward to spending the coming years taking care of it?
5. They don’t think about resale before they buy. The average first-time buyer only stays in a home for four years. This is something your agent should be helping you with. Always consider what the likelihood of selling it will be. Is it going to be easy to sell or challenging? Will you be able to change some of the things that has caused it to sit on the market this time? What are the schools and neighborhoood like? Are their age restrictions on who can purchase or live there? Pet policies? Rental restrictions? Financing restrictions?
For further information on any of these 5 points above, please feel free to contact me at (874) 877-9881. Also be sure to visit my website www.AmyKite.com for more useful information. I am here to help!
