The $8000 tax credit is a nice perk for first-time homebuyers. In my opinion, new Buyers should look at it as a perk, not as an incentive:1) Qualify for a home based on solid income, a certain level of confidence in job security, and ability to repay for years to come.2) Find a nice property that you don’t have to sell for at least 5 years, better if you can keep it for 10 years or more, possibly as a rental later on.3) Don’t let the pending deadline for free money lure you into a dump! First of all, market swings can wipe out that $8000 in a flash, even if you are buying a $150,000 property. Second of all, a dump doesn’t need the market to help wipe out that $8000 of free money. A dump can do it all by itself. See my blog “Top 10 Ways to Know Your Buying A Dump.”In certain locations there is a shortage of inventory and a feeding frenzy among first-time Buyers trying to beat the clock. Meanwhile cash investors are snatching up the best properties causing first-timers to battle for scraps.Yes, the $8000 tax credit is a nice perk. If you buy for all the right reasons, the credit is gravy. But buying a dog pile to get $8000 today and risk your future just makes no sense. Some times renting makes more sense. (OK now you can officially declare me the worst real estate salesperson ever.)For all its encouragement and stimulus, the government doesn’t even want you to buy a dump. Last I heard, they have not announced Cash-for-Clunkers Homes, and you don’t want to be calling Marilyn Mock of the Foreclosure Angel Foundation in 2011.Let the professional investors deal with risk. You too can be a pro some day if you make the right moves today.
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Posted by Carolyn Kruse on September 26, 2009 at 10:41am
National Association of Realtors Chief Economist Lawrence Yun said existing home sales will rise through the fourth quarter, but that the end of a federal tax credit that gives first-time homebuyers $8,000 will affect that pace if it expires in November. As per [FAR and Palm Beach Post]. I agree what is your opinion on the first-time homebuyers tax credit? I think they should leave it into play for another 6 - 12 months.
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Posted by Linda Landry on September 13, 2009 at 7:28am
I am astounded at the destruction and mutilation discovered in properties abandoned after foreclosure! Where did the current mentality of homeowners/renters come from in thinking it is their prerogative/privilege to destroy/steal or damage property they vacate? Everyone is aware that renters are 'leasing' property from the owner and that owners require security/cleaning deposits. However, I have spoken to landlords who've had their property damaged or destroyed beyond the limit of the deposit to include arson! Additionally, homeowners who become thieves of destruction to the property they have lost to foreclosure abound. They apparently do not realize they are actually tenants of the bank who holds their loan. They do not yet own this property until the loan is paid in full. Their down payment was just that: a payment they put down towards the repayment of the ENTIRE loan in the amount to which they agreed to pay to purchase the property. Lest we forget, this agreement was in the form of a legally binding contract. Perhaps more defaultees should be prosecuted for default or destruction. If people keep defrauding and defacing it may result in the banks requiring we pay for a loan for thirty years PRIOR to taking possession! Wouldn't that be a kick in the you know what!Linda Landry, REALTOR ® Exit Realty 1st Choice Tucson, Arizona
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Posted by Linda Landry on August 16, 2009 at 4:41am
I truly like this phrase! It speaks for itself doesn't it? I think so and it is so very pertinent when it comes to the current first time home buyers tax credit which expires at the end of November. In order to take advantage of this credit the transaction has to close/record before December 1, 2009. Since escrow dealings can take 30-45 days that means the transaction needs to be negotiated/accepted within the next sixty days. Not only is finding the right property time consuming but keep in mind you need to find the right real estate professional to assist you, the right lender and property inspectors. You will need to research details of the property; the inspections should include at the very least a termite and property inspector. If you or anyone you know is planning to take advantage of this opportunity the time to act is now!
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Well, I've bloged about this several months ago. Pre-Approved Short Sales!! I closed my first one 2wks ago and from list to close total time was 40 days. Yes 40 days, I recieved a list price 96 hours after submitting my BPO, which was priced 10K below my BPO value. I got multiple offers within he first7 days on the market and the property sold for 5K more than list price (Closer to my BPO value). My local board rules require us market any short sale as such, which in the past and sometimes hinders offers beacuse all of us know that there is nothing short about a traditional shortsale.This did not increase the time on the Market, as we advertised it as a HomeTeleos Pre-Approved Short Sale. This program has officially launched and you may see it in a City or County near you. Its true when you see HomeTeloes Pre-Approved short sale, then really are short sales. www.hometeleos.com I'd love the hear from anyone else if they are doing anything similar or have heard of any similar programs launching. I think it will be a matter of time before others follow if they have not already done so.
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Posted by MIRELA MONTE on February 28, 2009 at 7:48pm
I remember the good ol' days when the discrepancy between the Buyer's offer and the Seller's asking price was measured by mere thousands of dollars, signifying 1%-2% of the property's value. That disparity was like a little puddle of water we used to quickly and easily jump over and put the deals together.Today I presented an offer to the bank for $165,000 less than the original asking price, a 34% reduction in value. Ouch! My advice: "Take the offer!" With 20 other properties competing for the same buyers and only one sale effected within the neighborhood within the last 6 months, we are lucky to get this offer.Have I succeeded in convincing the bank to take the offer? No, not yet! I've sent them my reports for the neighborhood. I've made a very compelling argument. Tomorrow I am going to take pictures and shoot video showing my seller (the bank) other similar homes in the neighborhood that are offering just as much for less money (other REO's).I hear the same thing from my bank clients that I hear from my other sellers: "But I need to make this much..." Dear Seller, your needs will not be met in this market! Your wants, needs and must haves, are completely irrelevant to the Buyers!Dear Seller, I DO care about you and your property! I FEEL your pain! My commission is significantly reduced when the price is slashed. But if we don't get the job done now, we might not get a similar offer again. EVER!!! We might join the legions of other vacant homes just lingering on the market and deteriorating from the elements. The longer a property remains in that state, the harder it is to sell it, and the less money it will garner.Aah, the good old days of the puddle... Now we have oceans to brave, stormy waters between Buyers and Sellers...Mirela Monte, Your Myrtle Beach Real Estate Connection
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Okay, gang here's what's comming down the Pike!! When this program hits the streets short sales will truly be SHORT SALES.Anyway, myself and 4 of my agents were blessed with being selected and trained during the 5-Star Conference via Webinare, to be on the 4 front of this new program that will be comming to a city near you soon. When you see the words Home Telo's approved Short Sale , these properties will close in 30 days or less. Thats right lender approved short sales!! What a concept. Not all homes will qualify for the program and there will be a screening process. To some this up in a NUT shell this is how the program will work.A BPO is completed on the property within 72 hours of completing our BPO the lender will have had a 3 rd party apprasial or BPO conducted and sets a price at current market value they are willing to except for the home. The property will then be placed on the maket local MLS and www.bidselect.com where it can be bid on. Highest bidder assuming lenders price is met, will go into contract to close within 30 days.During the marketing time the home-owner has to maintain the home, remains in the home and is resposible for keeping it up for showing. The investors/lenders etc have finally figured it out!!!. It's cheaper for them in the long run to keep people in homes, maintaining them rather than them being vacant, and getting everything of value (A/C Units, Copper, Appliacnes, Light Fixtures etc) stolen.This should bring about some stability to the market and great opportunities for first time buyers that are overwhelmed when they step foot in some of the REO homes out there. They will have to be left for the investors to pick up at rock bottom prices,because they will be the only ones buying them when these short sales hit the market. This should be a WIN WIN for everyone.So Buyers Agents, When you see HOME TELO's you better act fast, because once this gets out , there will be 10-15 offers on each property, just like the turnkey REO's. That's my tip for the month...1 of 500 out of 135,000. If you were invited to the Round Up during the 5-Star Conference then you know what this means. For those of you that don't and would like to know shoot me an email if you can't figure it out..(Staci it was nice to see you at the Round Up!)
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There will not be much argument from just about anyone that Google has developed some awesome free products that make the life of a real estate agents life a lot easier. On top of making so much available for free, they allow others to go ahead and enhance and customize their applications.This is such a tool.It starts with the basic Google Maps that I am sure most who read this currently use in their lives – one way or another.The company that built this free tool is Virtuoo who promotes on their website “Stuff for Realtors!” Looking around, it appears they earn their money with some pretty nice Virtual Tours.They have developed and give away for free a “Efficient Route Calculator” that allows you to enter up to 10 random addresses before you hit the ‘Submit’ button, conveniently located right below the addresses. How simple is that?The program then opens up a new page and in just a few short moments a fully expandable standard Google Map shows up, with both the Hybrid and Satellite option. The good news is all of your locations are there and mapped out – round trip!What is nice is you can even add another destination – I have not had to use this feature, but my guess is you could add an indefinite number of locations to your route.EASY DIRECTIONSBelow the map is a section they call “Computed Data”. It starts with the round trip duration and length of your trip, if you were to drive straight through. This alone makes the program worth what you paid for it. Wait a minute, it’s FREE!!! This feature makes it worth a fortune when you are doing your taxes!!!Then in Google Map familiar fashion, you are given turn by turn directions starting with your start point continuing to each location on your route, in the most efficient route. Of course, the distance on each road is included, so you have an idea how far you must go before the next turn.NOT PERFECTJust like everything else in life, this tool is not perfect – but it really does a great job working for me.First, I prefer the Firefox for my Internet Browser and when I print the highlighted line that represents my route does not print. I understand it works best with Opera web browser and works OK with both Safari and Internet Explorer.I wish I could right click and save the map as an image, but it won’t allow that. Too bad. However, I do save each map, on a daily basis, as a web page – when I go to the FILE pull down menu and select SAVE PAGE AS (Control S) and choose the ‘Web Page, complete” option to a folder I call Daily Trips in MY DOCUMENTS. I then have a folder for each month and simply name the file the current date.What’s nice is I can go in and amend routes after I have traveled them, documenting my mileage. You know for those unexpected trips to Office Depot or something that takes you an extra 5 miles out of your way – we need to account for that mileage.There are more notes that you can follow from links at the very bottom of the page, where there has been some trouble shooting discussions taking place – but for me, the only flaw is printing with Firefox. Truth be told, as long as the icons of my route destinations show up with the turn-by-turn directions, I’m a happy camper.There is also code available to add this to your website and allowing you to create a default starting position. I get in trouble when I mess with code, so I’ll just use it the way it’s published, thank you very much. (It would be a nice widget to have in my blog though, wouldn’t it?)HOW CAN THIS BENEFIT YOU?As an REO real estate agent, I see multiple uses for this program. The obvious is to take a buyer out and show several properties with a nice clean route already determined.The tool is also very helpful for managing my inspections of my REO properties, since they are scattered in a 20 mile radius I create a new list adding the property each time I have a new assignment, in a particular area. This way at $4.25 for a gallon of gas I can maximize my driving efficiency and not letting a property slip through the cracks, when I’m in the neighborhood. It also allows me to provide the same information to my contractor, so I can accurately monitor his mileage. (We have to constantly keep costs in line, don’t we?)Another use is with BPO’s. Comps are always close by and when I have the opportunity, I like to check out as many as I can. So, when I am researching a BPO, I will add the addresses of the Subject and the Comps to the grid. This way if I need a picture, I know exactly where I am going – but it really is helpful when it lets me physically check out a comp – after all, I may have a buyer if it is that good a deal.So, how can you use this to make your life as an REO Agent easier? Please go ahead and leave your comments below.John Occhi, REO REALTOR®Century 21 Crest – CrestREOJohn Occhi is a REO REALTOR® thatspecializes in the sale of bankowned homes in the Inland Empireregion of Southern California. Hehas helped many buyers acquiregreat deals on these REO homes.His company, CrestREO, the REODivision of Century 21 Crest – the77th largest C21 in the Nation, hasSold Over $1Billion in REO Sales.
