Spring has not sprung, but lots of homeowners appear to be coiled in anticipation of the moment they can slam that "For Sale" sign into the ground.
And those who plan to sell would be wise to take heed of John Gidding's three big tips for home sellers:
•Declutter.
•Enhance your curb appeal.
•Make the kitchen and bathrooms shine.
Gidding, the architect and designer who is host of HGTV's "Designed to Sell" and "Curb Appeal: The Block," expects lots of questions about getting houses ready for the market when he appears next week at the 29th annual Philadelphia Home Show.
He'll speak during the closing weekend of the nine-day show. Also appearing will be Paul DiMeo of ABC's "Extreme Makeover: Home Edition" and Christopher Straub, a "Project Runway" fashion designer. The show will include 500 industry experts to discuss money-saving tips and offer professional advice. In addition, four designer rooms will include an eco-friendly living room, spa retreat, baby suite and "man cave."
Gidding, who was born in Turkey to an American father and now lives in Atlanta, says the real key to selling your home is to imbue it with value. He'll talk about his shows and how people react, and he expects people to ask about what goes on behind stage, as well as what to do with their own homes.
Like many others, Gidding sees signs that the real estate market may be coming back.
"The Atlanta market has been pretty hard hit, but in the last few weeks, there's been a big uptick and everybody is breathing easier," Gidding says. "Based on that, I think something is going on. I think people are over this recession in every way, figuratively and literally, and hopefully when the flowers start coming out again and people start feeling good about where they are living, people will go out and buy some more."
Orchestrating simplicity
His three tips aren't as straightforward as they may seem, he says.
Decluttering goes beyond just picking up and clearing off surfaces, he says. It includes removing a lot of your personality from the home and showing off closets and drawers to their best advantage.
If your closets are full, get rid of about 40 percent of the clothing and items in them, and store them in a rental unit or a spare bedroom at your parents' or a friend's house. If your drawers are crowded, clean them out and put in organizers so they're neat.
"You know that people walking through are going to open the drawers," he says. "You have to assume this is no longer your home and people are going to walk through and look at everything."
The trick is to make sure it looks like there's room for plenty more.
And don't make the assumption that people buy according to what they see inside a house.
"The way people enter a home is so important," Gidding says. "The entry is crucial to make people feel safe."
If you don't have a light by the door, install one, he says. If a bulb is burned out, replace it.
If your door doesn't have color on it, paint it, he says. Put flowers on the path and entry. If you have any room for it at all, put some kind of outdoor furniture there, even if it's one piece.
"It shows that there's someone living there who loves the home and your neighborhood and that you appreciate the people around you," he says.
Inside, he says, kitchens and bathrooms are the primary things people look at.
"They don't want to have to do any work on them," he says. "On our show, we do kitchen and bathroom makeovers for under $2,000, so it doesn't have to be expensive; it just has to be thoughtful."
Painting a room can always help, he says. And in the kitchen, simply changing the hardware can make it look great.
Bathrooms should be squeaky-clean, he says. Change the shower curtain and install a new light fixture.
If you're stuck with one of the old industrial mirrors glued to the wall, ask a carpenter to cut four pieces of trim that can be glued directly to the mirror and painted, giving it a framed effect.
"It makes it look that much more high-end and less industrial," Gidding says.
The small things are what change people's impressions, he says. "They're not just buying a house that people are using; they're buying a home that someone really cares about and has spent some time improving and caring for."
His newest show, "Curb Appeal: The Block," goes into neighborhoods where people have complained of an eyesore and renovates the offending home, up to $20,000. The show also goes around the neighborhood and helps people do small things, like add window boxes or other decor that can be seen from the street.
"The whole street is engaged," he says. "By the time we leave, everyone's property values are improving. You'd be surprised to see how many people see us tooling around and feel compelled to come out and do stuff of their own."
http://www.delawareonline.com/article/20100114/LIFE04/1140310
Friday, January 15, 2010
Wednesday, January 13, 2010
Want the most bang for your buck on your home?
Exterior Remodeling Proves Best Bang for Your Buck, Realtors® Report
Washington, December 17, 2009
Despite a slow market and a slight decrease in the resale value of most remodeling projects, Realtors® report that the smartest home improvement investments may also be some of the least expensive. Results from the 2009 Remodeling Cost vs. Value Report show that small-scale exterior projects are the most profitable at resale, according to estimates by Realtors® who completed a recent survey.
On a national level, eight out of the top 10 projects in terms of costs recouped were exterior replacement projects that cost less than $14,000. Certain types of door and siding replacements, as well as wood deck additions all returned more than 80 percent of project costs upon resale. A steel entry door replacement – a new addition to this year’s list – recouped 128.9 percent of costs, followed by upscale fiber-cement sliding replacements at 83.6 percent. Wood deck additions recouped 80.6 percent of costs.
“Once again, this year’s Remodeling Cost vs. Value Report highlights the importance of a home’s first impression,” said NAR President Vicki Cox Golder, owner of Vicki L. Cox & Associates in Tucson, Ariz. “With exterior projects returning a high percent of project costs upon resale, Realtors® can help give your home curb appeal while adding value to the real estate transaction.
The 2009 Remodeling Cost vs. Value Report compares construction costs with resale values for 33 midrange and upscale remodeling projects comprising additions, remodels and replacements in 80 markets across the country. Data are grouped in nine U.S. regions, following the divisions established by the U.S. Census Bureau. This is the 12th consecutive year that the report, which is produced by Hanley Wood, LLC, was completed in cooperation with REALTOR® Magazine, as Realtors® provided their insight into local markets and buyer home preferences within those markets.
On a national level, the project with the biggest improvement from 2008 was the attic bedroom addition, recouping 83.1 percent of remodeling costs compared to 73.8 percent in 2008. The only other interior project that landed in the top 10 was a minor kitchen remodel with 78.3 percent costs recouped.
Other exterior projects in the top 10 include midrange vinyl and upscale foam-backed vinyl sliding replacements, which returned more than 79 percent of costs. In addition, several types of window replacements – midrange wood, midrange vinyl, and upscale vinyl – all returned more than 76 percent of costs upon sale.
Similar to last year’s report, the least profitable remodeling projects in terms of resale value were home office remodels and sunroom additions, returning only 48.1 percent and 50.7 percent of project costs.
Regionally, cities in the Pacific states of Alaska, California, Hawaii, Oregon and Washington once again outperformed the rest of the nation in terms of remodeling costs recouped upon resale. The West South Central region of Arkansas, Louisiana, Oklahoma, and Texas; the East South Central region of Alabama, Kentucky, Mississippi and Tennessee; and the South Atlantic region of the District of Columbia, Florida, Georgia, Maryland, North Carolina, South Carolina, Virginia and West Virginia also performed relatively well.
The regions that generally returned the lowest percentage of costs were New England (Connecticut, Massachusetts, Maine, New Hampshire, Rhode Island and Vermont), East North Central (Illinois, Indiana, Michigan, Ohio and Wisconsin), West North Central (Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota and South Dakota), and the Middle Atlantic (New York and Pennsylvania).
Golder commented that remodeling projects are just one of many factors that contribute to a home’s overall resale value. “As the first, best source for real estate information, Realtors® are experts in providing insight into what projects and investments will make a difference in your house. It’s important to consult with a Realtor® who can explain the variety of factors that affect a home’s value, such as location, condition of surrounding properties and the regional economic climate,” she said.
Results of the report are summarized in the January issue of REALTOR® Magazine. To read the full project descriptions, access national and regional project data, and download a free PDF containing data for any of the 80 cities covered by the report, visit www.costvsvalue.com. “Cost vs. Value” is a registered trademark of Hanley Wood, LLC.
Hanley Wood, LLC, is the premier media company serving housing and construction. Through four operating divisions, the company produces award-winning magazines and Web sites, marquee trade shows and events, rich data, and custom marketing solutions. The company also is North America’s leading provider of home plans. Founded in 1976, Hanley Wood is a $240 million company owned by JPMorgan Partners, LLC, a private equity affiliate of JPMorgan Chase & Co.
The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries.
http://www.realtor.org/press_room/news_releases/2009/12/exterior_proves
Washington, December 17, 2009
Despite a slow market and a slight decrease in the resale value of most remodeling projects, Realtors® report that the smartest home improvement investments may also be some of the least expensive. Results from the 2009 Remodeling Cost vs. Value Report show that small-scale exterior projects are the most profitable at resale, according to estimates by Realtors® who completed a recent survey.
On a national level, eight out of the top 10 projects in terms of costs recouped were exterior replacement projects that cost less than $14,000. Certain types of door and siding replacements, as well as wood deck additions all returned more than 80 percent of project costs upon resale. A steel entry door replacement – a new addition to this year’s list – recouped 128.9 percent of costs, followed by upscale fiber-cement sliding replacements at 83.6 percent. Wood deck additions recouped 80.6 percent of costs.
“Once again, this year’s Remodeling Cost vs. Value Report highlights the importance of a home’s first impression,” said NAR President Vicki Cox Golder, owner of Vicki L. Cox & Associates in Tucson, Ariz. “With exterior projects returning a high percent of project costs upon resale, Realtors® can help give your home curb appeal while adding value to the real estate transaction.
The 2009 Remodeling Cost vs. Value Report compares construction costs with resale values for 33 midrange and upscale remodeling projects comprising additions, remodels and replacements in 80 markets across the country. Data are grouped in nine U.S. regions, following the divisions established by the U.S. Census Bureau. This is the 12th consecutive year that the report, which is produced by Hanley Wood, LLC, was completed in cooperation with REALTOR® Magazine, as Realtors® provided their insight into local markets and buyer home preferences within those markets.
On a national level, the project with the biggest improvement from 2008 was the attic bedroom addition, recouping 83.1 percent of remodeling costs compared to 73.8 percent in 2008. The only other interior project that landed in the top 10 was a minor kitchen remodel with 78.3 percent costs recouped.
Other exterior projects in the top 10 include midrange vinyl and upscale foam-backed vinyl sliding replacements, which returned more than 79 percent of costs. In addition, several types of window replacements – midrange wood, midrange vinyl, and upscale vinyl – all returned more than 76 percent of costs upon sale.
Similar to last year’s report, the least profitable remodeling projects in terms of resale value were home office remodels and sunroom additions, returning only 48.1 percent and 50.7 percent of project costs.
Regionally, cities in the Pacific states of Alaska, California, Hawaii, Oregon and Washington once again outperformed the rest of the nation in terms of remodeling costs recouped upon resale. The West South Central region of Arkansas, Louisiana, Oklahoma, and Texas; the East South Central region of Alabama, Kentucky, Mississippi and Tennessee; and the South Atlantic region of the District of Columbia, Florida, Georgia, Maryland, North Carolina, South Carolina, Virginia and West Virginia also performed relatively well.
The regions that generally returned the lowest percentage of costs were New England (Connecticut, Massachusetts, Maine, New Hampshire, Rhode Island and Vermont), East North Central (Illinois, Indiana, Michigan, Ohio and Wisconsin), West North Central (Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota and South Dakota), and the Middle Atlantic (New York and Pennsylvania).
Golder commented that remodeling projects are just one of many factors that contribute to a home’s overall resale value. “As the first, best source for real estate information, Realtors® are experts in providing insight into what projects and investments will make a difference in your house. It’s important to consult with a Realtor® who can explain the variety of factors that affect a home’s value, such as location, condition of surrounding properties and the regional economic climate,” she said.
Results of the report are summarized in the January issue of REALTOR® Magazine. To read the full project descriptions, access national and regional project data, and download a free PDF containing data for any of the 80 cities covered by the report, visit www.costvsvalue.com. “Cost vs. Value” is a registered trademark of Hanley Wood, LLC.
Hanley Wood, LLC, is the premier media company serving housing and construction. Through four operating divisions, the company produces award-winning magazines and Web sites, marquee trade shows and events, rich data, and custom marketing solutions. The company also is North America’s leading provider of home plans. Founded in 1976, Hanley Wood is a $240 million company owned by JPMorgan Partners, LLC, a private equity affiliate of JPMorgan Chase & Co.
The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries.
http://www.realtor.org/press_room/news_releases/2009/12/exterior_proves
Friday, January 8, 2010
Thursday, March 19, 2009
Offers Made in Writing are always Best !
Offers Made in Writing Are Always Best!!
Imagine this: You're on your way out of town when your real estate agent calls to let you know about a hot new listing. You arrange to meet your agent at the property to take a look before you go.
The house is just what you've been looking for. But there's no time to make a written offer so you ask your agent to make a verbal offer for you. When you return from vacation, you find that the home sold to someone else.
A real estate agent is obliged to convey a verbal offer to the seller. However, if the offer isn't written, it's not legally binding on either the buyer or the seller. It's rare that real estate purchase offers are accepted without a counteroffer, even if the price is acceptable.
Home purchase offers are complicated legal documents that include all the details of the sale--the personal property that's included and excluded, the closing date, the financing arrangement and the inspection conditions, to name a few.
Buyers and sellers frequently have a counteroffer dialogue back and forth before they finalize the terms and conditions of their deal.
Even though a seller may be negotiating with one buyer, this doesn't preclude him from entertaining offers from other buyers. Until the purchase contract and any counteroffers are accepted in writing by both the buyers and the sellers, the property is still available for sale.
First-Time Tip
Timing is critical in real estate transactions. So it's important to make arrangements for times when you'll be unavailable to make an offer or respond to a seller's counteroffer.
Today homes are often sold with the help of the telephone and facsimile transmission. Facsimile signatures are usually binding as long as the intent is to sign the original documents at a later date. You and your partner can sign separate copies of the same document.
Make sure, if you're using facsimile copies, that the text is legible and that you know and understand what you're signing. Also, if you're having contracts faxed to your office, you might want your agent to send the documents at a time when you know you'll be available to retrieve them.
If you're leaving town in the middle of a negotiation and you won't have access to a fax machine, you may want to give your power of attorney to a trusted friend or relative. To be legally binding, the power of attorney should be on the proper form and it should be notarized.
Your real estate agent can help you with this. But don't give a power of attorney to your agent. This would create a conflict of interest because your agent is owed a commission if the sale goes through.
Some agents present offers, and negotiate on a buyer's behalf with a written authority letter from the buyer. This letter is not notarized. Be aware that when an agent signs a real estate contract for a buyer without a power of attorney, it's not legally binding.
So even though a written authority letter saves time during the negotiation process, you could lose out to another buyer whose offer is properly signed. You also risk committing to terms you hadn't anticipated if you're dealing with a less than scrupulous agent.
Don't rely on e-mail for making real estate offers and counteroffers. An e-mail isn't signed, so it's probably legally binding
The Closing
Taking shortcuts when you're trying to buy or sell real estate is risky.
Imagine this: You're on your way out of town when your real estate agent calls to let you know about a hot new listing. You arrange to meet your agent at the property to take a look before you go.
The house is just what you've been looking for. But there's no time to make a written offer so you ask your agent to make a verbal offer for you. When you return from vacation, you find that the home sold to someone else.
A real estate agent is obliged to convey a verbal offer to the seller. However, if the offer isn't written, it's not legally binding on either the buyer or the seller. It's rare that real estate purchase offers are accepted without a counteroffer, even if the price is acceptable.
Home purchase offers are complicated legal documents that include all the details of the sale--the personal property that's included and excluded, the closing date, the financing arrangement and the inspection conditions, to name a few.
Buyers and sellers frequently have a counteroffer dialogue back and forth before they finalize the terms and conditions of their deal.
Even though a seller may be negotiating with one buyer, this doesn't preclude him from entertaining offers from other buyers. Until the purchase contract and any counteroffers are accepted in writing by both the buyers and the sellers, the property is still available for sale.
First-Time Tip
Timing is critical in real estate transactions. So it's important to make arrangements for times when you'll be unavailable to make an offer or respond to a seller's counteroffer.
Today homes are often sold with the help of the telephone and facsimile transmission. Facsimile signatures are usually binding as long as the intent is to sign the original documents at a later date. You and your partner can sign separate copies of the same document.
Make sure, if you're using facsimile copies, that the text is legible and that you know and understand what you're signing. Also, if you're having contracts faxed to your office, you might want your agent to send the documents at a time when you know you'll be available to retrieve them.
If you're leaving town in the middle of a negotiation and you won't have access to a fax machine, you may want to give your power of attorney to a trusted friend or relative. To be legally binding, the power of attorney should be on the proper form and it should be notarized.
Your real estate agent can help you with this. But don't give a power of attorney to your agent. This would create a conflict of interest because your agent is owed a commission if the sale goes through.
Some agents present offers, and negotiate on a buyer's behalf with a written authority letter from the buyer. This letter is not notarized. Be aware that when an agent signs a real estate contract for a buyer without a power of attorney, it's not legally binding.
So even though a written authority letter saves time during the negotiation process, you could lose out to another buyer whose offer is properly signed. You also risk committing to terms you hadn't anticipated if you're dealing with a less than scrupulous agent.
Don't rely on e-mail for making real estate offers and counteroffers. An e-mail isn't signed, so it's probably legally binding
The Closing
Taking shortcuts when you're trying to buy or sell real estate is risky.
Thursday, February 26, 2009
First Time Home Buyers $8000 Credit
First-Time Home Buyer Tax Credit: 6 Things to Know
February 17, 2009 06:19 PM ET
While the proposed $15,000 home-buyer tax credit died in negotiations between the House and the Senate, the $787 billion stimulus bill that President Barack Obama signed into law Tuesday includes a similar--albeit smaller--measure designed to help revive the real estate market. Here are six things you need to know about the freshly-enacted $8,000 first-time home buyer tax credit.
1. Eight grand, new buyers: The tax credit included in the economic stimulus legislation is much narrower than the $15,000 proposal. This credit is equivalent to 10 percent of the purchase price of the home--although it's capped at $8,000--and applies only to first-time home buyers and principal residences. But unlike an earlier $7,500 home buyer tax credit, this one does not have to be repaid.
2. First time buyers defined: For the purpose of this legislation, a "first-time home buyer" is someone who hasn't owned a principal residence for three years before buying a house. (The date of purchase is considered the day that the title is transferred.) That means if you've owned a vacation home--but not a principal residence--within the past three years, you would still qualify for the credit.
3. 2009 buyers only: Only those who purchase a home on or after January 1 and before December 1, 2009 are eligible for the credit. Anyone who bought a home last year won't be able to take advantage of it.
4. Income limits: The tax credit is subject to income limitations. Single buyers need a modified adjusted gross income of $75,000 or less to qualify for the full credit, that's $150,000 for married couples. Those earning more than these thresholds may be eligible for reduced credits.
5. Refundable: Because the tax credit is "refundable," qualified buyers can take advantage of it even if they don't have much tax liability.
6. Recapture: Buyers have to own the home for at least three years in order to capitalize on the credit. If they sell the home before then, they will have to return the credit to the government. (Exceptions will be made in certain cases, such as death or divorce.)
February 17, 2009 06:19 PM ET
While the proposed $15,000 home-buyer tax credit died in negotiations between the House and the Senate, the $787 billion stimulus bill that President Barack Obama signed into law Tuesday includes a similar--albeit smaller--measure designed to help revive the real estate market. Here are six things you need to know about the freshly-enacted $8,000 first-time home buyer tax credit.
1. Eight grand, new buyers: The tax credit included in the economic stimulus legislation is much narrower than the $15,000 proposal. This credit is equivalent to 10 percent of the purchase price of the home--although it's capped at $8,000--and applies only to first-time home buyers and principal residences. But unlike an earlier $7,500 home buyer tax credit, this one does not have to be repaid.
2. First time buyers defined: For the purpose of this legislation, a "first-time home buyer" is someone who hasn't owned a principal residence for three years before buying a house. (The date of purchase is considered the day that the title is transferred.) That means if you've owned a vacation home--but not a principal residence--within the past three years, you would still qualify for the credit.
3. 2009 buyers only: Only those who purchase a home on or after January 1 and before December 1, 2009 are eligible for the credit. Anyone who bought a home last year won't be able to take advantage of it.
4. Income limits: The tax credit is subject to income limitations. Single buyers need a modified adjusted gross income of $75,000 or less to qualify for the full credit, that's $150,000 for married couples. Those earning more than these thresholds may be eligible for reduced credits.
5. Refundable: Because the tax credit is "refundable," qualified buyers can take advantage of it even if they don't have much tax liability.
6. Recapture: Buyers have to own the home for at least three years in order to capitalize on the credit. If they sell the home before then, they will have to return the credit to the government. (Exceptions will be made in certain cases, such as death or divorce.)
Friday, February 20, 2009
Buying bank owned REO's properties
Buying Bank Owned Properties (REO)
So you’d like to buy a bank owned property?
You’ve watched the late-night infomercials and you’re ready to do the bank “a favor” and take a problem off their hands. Plus, you expect to make "a killing" in the process. Sounds great and it might just happen, but first you should take a look at some facts and get prepared.
REO vs. Foreclosure
An REO (Real Estate Owned) is a property that goes back to the mortgage company after an unsuccessful foreclosure auction. You see, most foreclosure auctions do not even result in bids. After all, if there was enough equity in the property to satisfy the loan, the owner would have probably sold the property and paid off the bank. That is why the property ends up at a foreclosure or trustee sale.
Foreclosure sales begin with a minimum bid that includes the loan balance, any accrued interest, plus attorney's fees and any costs association with the foreclosure process. In order to bid at a foreclosure auction, you must have a cashier's check in your hand for the full amount of your bid. If you are the successful bidder, you receive the property in "as is" condition, which may include someone still living in the property. There may also be other liens against the property.
Since what is owed to the bank is almost always more than what the property is worth, very few foreclosure auctions result in a successful sale. Then the property "reverts" to the bank. It becomes an REO, or "real estate owned" property.
REO Properties For Sale
The bank now owns the property and the mortgage loan no longer exists. The bank will handle the eviction, if necessary, and may do some repairs. They will negotiate with the IRS for removal of tax liens and pay off any homeowner’s association dues. As a purchaser of an REO property, the buyer will receive a title insurance policy and the opportunity to investigate the property.
A bank owned property might not be a great bargain. Do your homework before making an offer. Make sure that the price you pay (if you’re successful) is comparable to other homes in the neighborhood. Consider the costs of renovation, including time to complete them. Don’t get caught up in a ‘bidding war’ and pay over market value. It’s an old myth that “foreclosures” are a bargain.
How Banks Sell REO's
Each bank/lender works a little differently, but they all have similar goals. They want to get the best price possible and have no interest in "dumping" real estate cheaply. Generally, banks have an entire department set up to manage their REO inventory.
Once you make an offer to purchase, banks generally present a "counter-offer." It may be at a higher price than you expect, but they have to demonstrate to investors, shareholders and auditors that they attempted to get the highest price possible. You should plan to counter the counter-offer.
Your offer or counter-offer will probably have to be reviewed and approved by several individuals and companies. Even once an offer is accepted, the bank may insert wording like “..subject to corporate approval with 5 days."
Property Condition
Banks always want to sell a property in "as is" condition. Most will provide a Section 1 pest certification, but not unless you include it in your offer and negotiate the point. They will allow you to get all the inspections you want (at your expense), but they may not agree to do any repairs.
Your offer should include an inspection contingency period that allows you to terminate the sale if the inspections reveal unanticipated damages that the bank will not correct.
View Banked Owned (REO) Properties in Long Beach
Even though you agreed to “as is," always give the bank another opportunity to make repairs or give you a credit after you’ve completed your inspections. Sometimes they’ll re-negotiate to save the transaction instead of putting the property back on the market, but don’t take it for granted.
Banks do not want to see a lot of proprietary disclosures; they are exempt from the California Seller’s Transfer Disclosure Statement (TDS-14). If there are real estate agents involved, either representing you or the bank, those agents are required to provide you their disclosure statements.
Most banks will not provide financing on their REOs but it doesn’t hurt to ask. Especially if the property has extensive damage and you are purchasing it "as is."
Making an Offer
Before making an offer, have your agent contact the the listing agent and ask the following:
Are there any inspection reports?
What work has the bank agreed to?
Is there a special "as is" form?
How long does it take the bank to accept an offer?
How does your agent deliver the offer?
Offers are usually FAXED to the bank. The listing agent needs your originals. There is no formal presentation. Keep in mind: nothing happens evenings and weekends (banks are closed)
Since there is no face-to-face presentation to the bank, provide the listing agent with a pre-qualification or better yet, a pre-approval letter and buyer biography. Make your offer easy to accept.
Hopefully these tips will manage your expectations. Remember that REO's sell at pretty close to full market value and are not the deals presented on late night television.If you need additional information please call me at 562 715 8476.If you looking for some very good buys in Long Beach, click here and I will send you my"Best Buys" list in the Long Beach araea.
View Bank Owned(REO) Properties in Long Beach
So you’d like to buy a bank owned property?
You’ve watched the late-night infomercials and you’re ready to do the bank “a favor” and take a problem off their hands. Plus, you expect to make "a killing" in the process. Sounds great and it might just happen, but first you should take a look at some facts and get prepared.
REO vs. Foreclosure
An REO (Real Estate Owned) is a property that goes back to the mortgage company after an unsuccessful foreclosure auction. You see, most foreclosure auctions do not even result in bids. After all, if there was enough equity in the property to satisfy the loan, the owner would have probably sold the property and paid off the bank. That is why the property ends up at a foreclosure or trustee sale.
Foreclosure sales begin with a minimum bid that includes the loan balance, any accrued interest, plus attorney's fees and any costs association with the foreclosure process. In order to bid at a foreclosure auction, you must have a cashier's check in your hand for the full amount of your bid. If you are the successful bidder, you receive the property in "as is" condition, which may include someone still living in the property. There may also be other liens against the property.
Since what is owed to the bank is almost always more than what the property is worth, very few foreclosure auctions result in a successful sale. Then the property "reverts" to the bank. It becomes an REO, or "real estate owned" property.
REO Properties For Sale
The bank now owns the property and the mortgage loan no longer exists. The bank will handle the eviction, if necessary, and may do some repairs. They will negotiate with the IRS for removal of tax liens and pay off any homeowner’s association dues. As a purchaser of an REO property, the buyer will receive a title insurance policy and the opportunity to investigate the property.
A bank owned property might not be a great bargain. Do your homework before making an offer. Make sure that the price you pay (if you’re successful) is comparable to other homes in the neighborhood. Consider the costs of renovation, including time to complete them. Don’t get caught up in a ‘bidding war’ and pay over market value. It’s an old myth that “foreclosures” are a bargain.
How Banks Sell REO's
Each bank/lender works a little differently, but they all have similar goals. They want to get the best price possible and have no interest in "dumping" real estate cheaply. Generally, banks have an entire department set up to manage their REO inventory.
Once you make an offer to purchase, banks generally present a "counter-offer." It may be at a higher price than you expect, but they have to demonstrate to investors, shareholders and auditors that they attempted to get the highest price possible. You should plan to counter the counter-offer.
Your offer or counter-offer will probably have to be reviewed and approved by several individuals and companies. Even once an offer is accepted, the bank may insert wording like “..subject to corporate approval with 5 days."
Property Condition
Banks always want to sell a property in "as is" condition. Most will provide a Section 1 pest certification, but not unless you include it in your offer and negotiate the point. They will allow you to get all the inspections you want (at your expense), but they may not agree to do any repairs.
Your offer should include an inspection contingency period that allows you to terminate the sale if the inspections reveal unanticipated damages that the bank will not correct.
View Banked Owned (REO) Properties in Long Beach
Even though you agreed to “as is," always give the bank another opportunity to make repairs or give you a credit after you’ve completed your inspections. Sometimes they’ll re-negotiate to save the transaction instead of putting the property back on the market, but don’t take it for granted.
Banks do not want to see a lot of proprietary disclosures; they are exempt from the California Seller’s Transfer Disclosure Statement (TDS-14). If there are real estate agents involved, either representing you or the bank, those agents are required to provide you their disclosure statements.
Most banks will not provide financing on their REOs but it doesn’t hurt to ask. Especially if the property has extensive damage and you are purchasing it "as is."
Making an Offer
Before making an offer, have your agent contact the the listing agent and ask the following:
Are there any inspection reports?
What work has the bank agreed to?
Is there a special "as is" form?
How long does it take the bank to accept an offer?
How does your agent deliver the offer?
Offers are usually FAXED to the bank. The listing agent needs your originals. There is no formal presentation. Keep in mind: nothing happens evenings and weekends (banks are closed)
Since there is no face-to-face presentation to the bank, provide the listing agent with a pre-qualification or better yet, a pre-approval letter and buyer biography. Make your offer easy to accept.
Hopefully these tips will manage your expectations. Remember that REO's sell at pretty close to full market value and are not the deals presented on late night television.If you need additional information please call me at 562 715 8476.If you looking for some very good buys in Long Beach, click here and I will send you my"Best Buys" list in the Long Beach araea.
View Bank Owned(REO) Properties in Long Beach
Thursday, February 19, 2009
Live in Long Beach , Eastside & Circle Area
Eastside & Circle Area Homes
The infamous Recreation Park and CSULB are steps away from the classic homes in a neighborhood that is next to the beach, Belmont Shore, a 18 hole golf couse.The homes located in this area are extremely diverse.You will see Cailifornia Bunalows, Spanish Style and hugh beautiful mansions thruout this unique area.
The neighborhood streets are lined with beautiful Palms, Magnolia and Elm trees.This area is very family oriented where you will see homes and lawns in the highest condition.This will prove to be an future asset to you as a home owner. Location, location, location!
If you are looking for an unique area to live and raise a family you will have to consider this part of Long Beach.You will be impressed with this area on all aspects.
Use our FREE Long Beach MLS to find the Long Beach home that is right for you in the Eastside & Circle area of Long Beach.
Feel free to contact me at (562) 715-8476, I will be happy to send you my
"Best Buys List" in the Eastside and Circle Areas.
*www.csulb.org
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