buyers (37)

I haven't taken a buyer out in months. I have been concentrating on Short Sale Listings. But, I had an open house recently in order to attract some buyers for one of my listings. Suddenly, I acquired two buyers who didn't even know if they qualified for a loan. They both wanted to see homes that included a pool, views, and acreage, for no more than $100,000.

Now....it all came back to me. I was so busy early last year running around with buyers, getting them pre-approved, writing multiple offers until midnight, searching the MLS, calling listing agents begging for information so I could write a winning offer. No wonder I got burnt out.

But this time it was different. There are almost no REOs for sale; mostly Short Sales. And with those Short Sales the listing agents actually called me back with a variety of stories such as "the buyer just walked", "the buyer didn't qualify" please submit an offer. Which brings me back to my Open House. For some reason, I wasn't getting any interest in this listing that would have sold in 5 hours last year. That feeding frenzy seems to be gone. Maybe buyers are still avoiding Short Sales, maybe they too are burnt out putting in offer after offer only to get their credit ruined after so many "cross-qualifying" credit inquires.

It could be just a weird month in Southern California, a fluke, but anyway I am putting in two offers tomorrow. One on a STANDARD SALE....unheard of in this area. The other on a Short Sale that has no other offers. Maybe I'll be doing more Open Houses.
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What? But I thought Cash was King? That is what you are most likely saying to yourself right now?But, in this market it may not always be. You can't assume that Cash will always get the house, at least that is what I'm seeing.There are a lot of cash buyers bidding on homes in Las Vegas right now, and it seems (or you would think) that most of the time a cash buyer will get the home over a buyer who is financing, but, that is not always the case.I am currently working with a few cash buyers and one of them actually did not win a bid on a home they wanted, even when the bids were at asking price (which by the way was at the TOP of the price range for this area and home, it would be the new high comp), buyer was paying all closing cost and offering a 15 day close with inspections being the only contingency.Now, maybe this bank did actually get a higher offer from the fha/conventional buyer (even Cash buyers have a limit as to how much they are willing to pay), but the bank maybe running the risk that this home may not appraise at that higher offer and then they will be 2-3 weeks into the deal and have to lower their price anyway or ask the buyer to pay the difference.Or maybe, just maybe in that area we maybe seeing a turn around in prices for the better. Maybe they didn't believe me when I said, "No, they are not an investor, they want to retire in this home". That is a possibility as some lenders will actually favor a first time home buyer over what they think will be an investor. Maybe the other buyers agent worked for the same company. There are many variables and you just never know what a bank will do in this market and the sellers agent most likely will not let you know why your offer wasn't chosen, but your offer will most likely be in backup position with the other offers that came in.So, buyers in the Las Vegas area, get ready to make several offers on several homes before you actually get one.By the way, my buyers moved on and we have another home in escrow now
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What will 2010 Bring for Portland Oregon?

Okay kid’s here’s the skinny. 2010 What will it bring? If you are looking to make a move in Real Estate in the Portland Metro Market you are probably in what I would consider your perfect window. Price’s are going to continue to creep down as Seller’s compete against REO and Short Sales for Buyer’s.Interest Rates today are amazing. Under 5%, with good credit! Rates are probably as low as they are going to get because it wouldn’t be profitable to the lender’s to go any cheaper. Looking around I see the price of gas going up and we should be at $3 a gallon shortly. To me, that says inflation. Inflation says to the FED that they need to raise the Prime Rate in order to control it. It’s not their only tool but at some point lending at 1/4 % will end. Now, this is something that they do not want to do, but at some point in 2010 they will have to. Once this occurs and your rates go up, the buying power that is available today will decrease. There’s really only one reaction that can occur; prices will get pushed down again.I know that no one wants to hear that housing values are going to continue to fall, but unless people get pay raises in conjunction with the upcoming interest rate increases, the Buyer’s buying power will decrease. For example; if you can afford a $1,500 mortgage PITI, and the rates go up, you can’t afford more you just have to buy a cheaper house. For example at 5% interest $10,000 borrowed will cost you approximately 5.02. If interest rates are at 6% and now that $10,000 cost you $6.27. You still make what you make so your buying power is weakened. If you’re a Seller and the Buyer’s have been pushed out of your price range what are you going to do? Lower the price down to where the Buyer’s can again afford your home. So, I think that prices will continue to get pushed down some more. I just don’t see a different solution, but nothing would please me more than to be wrong.I’ve said a mouthful let's get some feedback and help us all have a better 2010. How hard could that be? ;0P
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Foreign Real Estate Investors Return To The Market

The 17th annual survey shows strong Interest In US Real Estate.1. Foreign real estate lenders say they plan to increase lending by 58% in the U.S. in 2009.2. Equity investors plan to increase investment activity by 40 percent globally and by 73% in the U.S. according to the results of the 17th annual AFIRE surveyPreferencesD.C. trumps New York as the top global city for foreign investment. London and New York were second and third position for foreign investment interest. Five of the top ten cities were American and the U.S. was ranked as the country with the most opportunity for capital appreciation.US Real Estate TrendsOur system certainly can surprise, but politically, we are very stable. There is a great deal of faith in our ability to adjust and change. AFIRE members surveyed find the U.S. continues to provide both the most stable and secure real estate investment environment and the best opportunity for capital appreciation. see chart hereThis year, foreign investors are eying the multi family sector, followed by offices, industrial, retail, and hotel properties. US property is showing signs of an approaching price equilibrium and the dollars decline has made real estate even cheaper for foreign investors. Fed assurances that interest rates will remain low until a full blown recovery virtually assures an inexpensive dollar and once in a generation opportunity for foreign investment.NAR reports International investors bought 154,000 homes and condos in the 12-month period ending in May, down nearly 10% from 170,000 for the same period a year earlier.But Since June, the dollar has tumbled by 9 to 11% against currencies like the Japanese yen, the Euro and the Canadian dollar. Florida leads the country accounting for 25% of foreign purchases, followed by California, Texas, and Arizona.(via AFIRE)Green MattersWhen asked to what extent a buildings green attributes influenced their decision to purchase a property, 11 percent said significantly so, and 60 percent said somewhat so. In almost the exact same percentages, investors said that green attributes were worth a greater rental premium. This was the first survey in which these two questions were asked. (Via AFIRE)Thanks for Readingwww.yourpropertypath.com" target="_blank">www.yourpropertypath.comRecent ArticlesNAR Report Third QuarterThe official figures indicate recession has ended
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Obama Extends the Home Buyers Tax Credit

The home buyers' tax credit has been extended to April 30, 2010. Obama approved the extension as part of a $24 billion economic stimulus bill.The housing tax creditQualifiersThe measure limits the purchase price of the home to $800,000.It also imposes income caps so that people who make more than $125,000 annually and couples who make more than $225,000 would not be eligible for a refund.Anyone who collects the tax credit but sells their home within three years of buying it must return the refund.Current homeowners who are buying a new primary residence would be eligible for a $6,500 tax credit starting Dec. 1 if they owned their home for five consecutive years in the previous eight.Military families who have been deployed overseas for 90 days or more in 2008 or 2009, would have until April 30, 2011 to sign a contract.The program is estimated at $11 billionDouble Bubble TroubleDr Shiller, co-developer of the Case Shiller home price index and Yale economist points out that the price recovery of the last few months is the sharpest snap back he has ever seen. he is concerned that that in supporting a real estate recovery we may again be fueling a bubble.NAR reports that total state existing-home sales of single-family and condos, increased 11.4 percent and are now 5.9 percent higher than the third quarter of 2008. Sales increased in 45 states and 28 states saw double-digit gains. Year over year sales were higher in 32 states and D.C. Buyers are coming back and in some parts of California we are seeing multiple bids and homes selling for more than list.Thanks for Readingwww.yourpropertypath.comRelated ArticlesFannie and Freddie: And How We Got to Own it AllEnergy Efficient MortgagesRelocation Tips
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Show me the listings!

It must seem that I am a buyer's agent if you've read my earlier posts, but I do have listings. I currently have three short sales and a standard. I want more listings, not because I don't love my buyers but because I do. It's frustrating to them and me to fine the perfect home only to find out it already has 15 offers.I have been making offers on REOs and short sales for two years now and I believe I write winning offers. I sure have written enough to realize what is a good offer and what will fail. But what do you do when the listing agent already has a buyer and they are double ending the deal?I lost an offer for my client who offered all cash and $10,000 above list price. I thought it was a slam dunk. No! I was told that an investor came in at the last minute with a large amount of reserves and went a little above my client's offer. A little above? How would he know to do that?A few weeks later I saw that the property actually sold for UNDER my client's offer, and that the selling agent was in the same office as the listing agent.I feel especially bad for the buyer's who "get it" and offer above list and better terms. And it's hard running around showing 15 homes, writing offers until midnight because you have to get them in before someone else grabs it. I'm done with it. Until more homes are released, I think I'll pursue listings. Hey banks! Just show me the listings!
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Three F words for Home Buyers!

Although it may seem overwhelming at first, the home buying process can be simplified in three easy steps. However, one two three is boring so let me explain with three F words. 1. Finance: the first step is to seek financial advice from a lender. First you must find a lender whom you trust and desire to work with throughout the complete transaction. Changing boats in the middle of the stream is possible but not suggested as it adds complications and stress. Find out how good your credit is and if it is not .....what you need to do to bring it up to par. Find out not only how much your lender is willing to finance for you and how much money you will need to bring to the (closing) table. Factor in the interest rate and points you are being offered. Learn what your payment will be; know that the lender is likely quoting PI (principle and interest). Calculate an additional $150-200 per month for TI (taxes and Insurance). Arming yourself with the knowledge of the strength of your buying power allows you to continue the endeavor with confidence. 2. Find the home of your dreams/desire. Find the home most suitable to your needs and taste. Elicit the assistance of a REALTOR ® to enable you to expand your search, access your choices, compare recent values of similar properties and to walk you through the transaction. Commit yourself to a Buyer/Broker agreement if you want the agent to work in your behalf and act as your advocate. 3. Finally when you are certain you've found what you want....exactly what you've been seeking or even beyond what you thought, it is time to make an offer. You and your REALTOR ® will work up the offer with what you plan to bring to the table and what you are asking of the seller. In Arizona this is done on a purchase contract which becomes legally binding if the seller signs accepting your proposal. However, be prepared for the seller to counter your offer and the reality of a possible negotiation process. When both parties agree, it becomes time for the buyer to begin the process of becoming a homeowner with inspections and plans for the pending closing of the transaction and moving. This is the time to start packing! In Arizona ownership occurs at recordation which is within three days after the signing. This will be the time to take possession. Keep in close contact with your REALTOR ® throughout the process as the agent will guide you through the time lines.
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Referrals

I love referrals! I never realized that referrals could come so quickly after a closed deal. I thought "oh maybe if I keep in touch, they'll buy another house in five years and remember me"...not so.I closed a deal with a buyer last month, who sent me his sister who is looking for a home. Then I closed another one last week and got a call from her friend who is an investor. Another referral was from a client that I just successfully completed a short sale with.Why do my clients like me? I educate, educate, educate. They really want to understand this crazy market and love it when someone from the "inside" will share it with them. If you do this I think it shows them that you are knowledgeable and love your work so much that all you want to do is talk about it all the time and tell everyone what's going on in the real estate world.There is another factor. I know agents who never get referrals because they just see their clients as dollar signs. Clients pick up on that right away. They try to talk their clients into buying something they don't want; they don't listen, they don't ask, they just show them home after home with the hope that one of them will stick. That is a waste of everyone's time.Just show everyone that you are interested in what's best for them, not the other way around. Don't push, don't stalk, just educate. Seems to be working for me....that's my blog and I'm sticking to it.
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The race is on to get FTHBs in contract....Negotiations continue for extension. What do you think? Will they extend this successful program?Any thoughts on why the Gov would end this type of insentive just as real estate is heading into the winter months which are slower for most areas outside the Southern states?Anticipated home sales have increased for seven straight months, the longest upward run since the National Association of Realtors (NAR) began its pending sales index series back in 2001, and now at its highest level since March 2007.NAR said Thursday that its forward-looking measurement of closed sales on existing-homes, which is based on contracts signed in August, rose 6.4 percent from July’s reading and is 12.4 percent above this time last year.Lawrence Yun, NAR’s chief economist, cautioned though, that not all contracts are turning into closed sales within the expected timeframe. “The rise in pending home sales shows buyers are returning to the market and signing contracts, but deals are not necessarily closing because of long delays related to short sales, and issues regarding complex new appraisal rules,” Yun said.Yun agrees with many other market observers that first-time buyers are rushing to put pen to paper to beat the deadline for the $8,000 tax credit, which expires at the end of next month. This run could very easily result in inflated pending sales numbers that don’t make it to the closing desk in time.Prospective homeowners in the western region of the country are the most eager to sign the dotted line, where distressed assets and plummeting property values make for extremely attractive deals. The pending sales index for the West surged 16.0 percent in NAR’s latest study.In the northeastern states, anticipated sales jumped 8.2 percent. In the Midwest the index rose 3.1 percent, and in the southern part of the country, pending home sales increased 0.8 percent.“Perhaps the real question,” Yun said, “is how many transactions are being delayed in the pipeline, and how many are being cancelled?”Yun also noted that the data sample coverage for pending sales is smaller than the measurement for closed existing-home sales, so the two series will never match one for one.Yun said the forecast for home sales and prices depends very much on whether a tax credit is extended. “All we can say for certain is sales will decline when the tax credit expires because we are not yet on a self-sustaining recovery path. It also raises a risk of a double-dip recession,” he said. “Extending and expanding the tax credit is the best tool in our arsenal to encourage financially qualified buyers to stimulate the economy.”
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"Don't let the buyers agents control you!"

While most of the REO agents in my area sit, twiddling their thumbs waiting for this Tsunami/Shadow Inventory/Wave to hit, I've been blessed with keeping a flow of inventory hitting the market making me one of the more "popular" agents on the block. While this is good for my business, keeping me and my staff busy, I've had the unfortunate experience of dealing with buyers agents who are unhappy, frustrated, or just downright negative. They continously complain, threaten me, tell me how to run my business, even demand me to accept their clients offers! The sad part is some of these agents are within my office! Its a shame agents have to go this low. I simply just take a deep breath and stay focused.Initially I thought it was just me, I mean I'm a down to earth guy, really laid back (don't let the picture fool you) but after talking with some of my peers in the same boat, they were experiencing similar reactions. Recently at the 5 Star an agent on the panel was going over productive ideas and one of them was "don't let the buyers agents control you". I was relieved to know that many of the REO agents are going thru the same issues.If you're a buyers agent on this site and are trying to get into REO, until you get that first listing, here are some tips:1. follow directions. Usually a good listing agent will leave instructions on the MLS. For a better response on your offers, please have your contract packages complete.2. have your lender contacts ready. If a listing requires a specific prequal from a direct lender, have your client in touch with that loan officer immediately. With the shortage of inventory, it is very competitive and timing is a huge factor.3. understand the REO market in your area. If your buyer is an FHA first time homebuyer with 3.5% downpayment competing with investors offering cash 20% over list, your buyer does not stand a chance.4. understand the thinking behind the offer accepted. Just because your FHA, 3.5% downpayment offer was 40% over list price, and didn't get accepted, understand why. Banks usualy have a couple of BPOs done from local agents and a appraisal. Its how they get their list price. Just because your client offered 40% over asking dosen't mean they will accept your offer. We know it won't appraise and don't want to deal with it later in the transaction.Staying in control keeps my staff and I busy as we can spend all day arguing with buyers agents who are not even in contract with us. I hope this helps for everybody on this site. OK I'm done venting. Thanks for reading!
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I have an REO Listing, Now What?

Having done a number of REO listings over the years, it is still a relatively new field for many of us. I am not an expert, I learn something new every day. Please keep in mind this is meant to be humorous!1 - Got an email today from my asset manager letting me know that I was selected to market and list their property. First though I have 24 hours to obtain an occupancy verification, gain interior access to get pictures, find out the HOA company information and any past due amounts, gain access to all the county records to do a quick search to see if any liens on the property, do a BPO on following that particular companies requirements, find out if there are any utilities on or other pertinent information that I need to pass on to my client. Oh, I best find out what the fees are for getting it switched over into my name along with the deposit required so I can make sure I have enough in my bank account to accept this listing and service it properly for by having all the utilities in my name and which I pay for (of course I get reimbursed as long as I turn in my bills and proof of payment in a timely manner and agree to wait for the payment - most of the companies I have chosen to work with pay very promptly - those that don't go on to find out agents).2 - Whew, got that all done, wait a minute, what are all these other tasks now? They weren't there a minute ago?? Oh, now I have to do a personal property evaluation form and they want pictures of each item (good thing I thought ahead and took pictures while I was doing the interior BPO pictures.) And what's this? Because I marked that the property was occupied, I have to now offer Cash For Keys? What are all these forms? I have another 24 hours to get this done? No problem, I will go back to the house, knock on the door and since I know the family is out I will leave the letter and my card in a envelope taped to their front door (don't forget the picture of that) and if they do answer, I will explain what I am offering and give them the number to the Loss Mitigation department if I have received that. I will set up a time within 2 weeks to a month to allow the occupant to find a new place to live and then I will meet him and get the keys if the property is left in clean condition.3 - Now that the home is vacant (trashed out if it was not an occupied property when I took it over), rekeyed the lock, made sure I had the right combination for the private contractor lock box and have placed a proper MLS lock box on the property, now I can notify my Asset Manager we are ready to rock and roll. Oops, I haven't gotten the listing agreement with the amount they are allowing me to market it at, so I have to remove the sign from the yard cause I can only put it up when I have a signed listing agreement. BUT I can keep the sign in the yard that says the home is in the process of pre-marketing and in case of emergency to contact me at a specific number. I don't accept any offers at this time, but I do keep a running tally of the names that call so that I can call them after I have gotten the listing in the MLS.• Are you wondering why I placed the MLS lock box on the house if there is a private lockbox? Well, I am blessed to have an association whose lockboxes keep track of who entered the property so I don't have to keep a running log of whose has called in to get the lock box code, my log is printed out weekly and placed in the file so when I do my monthly marketing report on that property I can give my AM the correct number of showings and in the meantime I've been able to call back for feedback to since the buyer's agents sometimes forget to call and give that. It's a team effort and I don't mind as I would expect it if I forgot to call and give feed back.4 - Well, now we have the listing agreement all taken care of and I am ready to MARKET AND SELL! First, I am going to go back to the property, make sure all the utilities are on, light bulbs are not burnt out, place a fragrance pot in a couple of rooms, set the air conditioning at about 80 in Summer at 65 in Winter so that when the home is shown, clients are not uncomfortable, I want them to think they are truly home so it will sell better. I am also going to place brochures on the counter, information about special financing and contacts for them to be able to call to see if they can help with the loan. I also leave my agency disclosure brochure, my cards, and if there is an HOA then I try to leave copies of at least the rules and regulations and contact information in case the client and other agent want to gather more information. I also want to make sure the yard looks good and if not I get the landscaper to mow it,5 - OK, the house is set up. I can go back to the office, or home since it is probably about 8 PM and put in MLS and call the people that have been calling about it since the in case of emergency sign went up.6 – Been a month, had 5 offers and they've all been turned down. When will people realize that the pricing is normally set within a realistic range and these 40% and 50% offers are not going to cut it, but I present all offers! I got a task from my asset manager that my Monthly Marketing Report (similar to a BPO) is due in 2 days. Oh I forgot to take pictures yesterday when I was over for my weekly checkup on the property, now I have to go get updated pictures and get them sent in with the new solds and listings that have happened in the last 30 days. Maybe they will lower the price, maybe they won't. My job is to get them the best price possible for the property, not price it at a give away amount! It takes a little maneuvering sometimes to get that right price. But they have lowered the price a little now, and so I go in and redo the MLS, redo the brochures, upload the new MLS to my asset manager, replenish the brochures at the property and call the people that have shown it to alert them to price drop.7 - Just got word after month two and another MMR (Monthly Marketing Report) that the price is down again. Wow, my phone is ringing off the hook from that ad I put in the paper. This price is really a great price and seems to be attracting a lot of attention. Listen to my efax tell me I have three faxes waiting, TERRIFIC, multiple offers on this property. But 2 of the agents didn't call to let me know they were submitting offers.8 - I start filling out the forms for the new offers, oh no, those two agents that didn't call me and just faxed over the offers did not include their contact information, no letter of preapproval on one, no proof of funds on the other, and I have no way to easily find their phone numbers. So I put everything off to the side, go into my MLS system to the agent roster and hope that the name that is scribbled on the last page where they signed it is legible and now I start calling the numbers to verify their contact information. I hope that since it is after hours, they have updated their cell number in the agent roster so I can contact them tonight and get this submitted. Great, it's 11 PM and I've got all these offers submitted in the system and I am closing up shop!9 - 1 PM the next day, I get an email from my AM, notify all parties involved we are in a multiple offer situation and to submit their highest and best offers by 5 PM the next day. Back on the phone, contact all agents and make the notifications and wait for the new paperwork. In the meantime made a notation in the MLS so that other agents will know what is going on and that they have to submit their highest and best by 5 PM the next day.10 - New offers are in - 1 at the same price and two updated ones and look there, three more new ones. And who said there were no multiple offers anymore. Way to go to all you agents out there with buyers!! Ok, all offers are submitted again, now I am off to bed and hey it's only 11:30 PM.11 - Start the next day off, excited cause I know that one of those offers is going to be accepted. Wow, locked up the office tonight and no emails, calls or information from my Asset Manager.12 - Day two - still no word13 - Day Three - I've gotten calls from agents wanting to know if I have heard anything yet. No, nothing yet,14 - Day Four - Yeah, an email! Offers 1,2,3,5 and 6 are rejected. Offer 4 is accepted with the counter proposal paperwork and all addendum's attached. I notify all the rejected agents that their offers have been rejected, I call agent with offer 4 and let them know that I am forwarding the paperwork for review and signatures and I have 24 hours to get it back to my asset manager. Mind you, offer was an all cash offer, but had a couple of contingencies on it and offer 4 was the same price, all cash but no contingencies. The bank accepted the easiest one with a quicker close date as the only counter proposal. Mind you offer 2 was higher than all of them, but was a conventional loan with 10% down.15 - Day Five = Got a call back from the agent with offer 4, his buyer has decided that he is not willing to meet the contingency with the new closing date and has chosen not to sign anything. He had given his highest and best offer! Back to the drawing board. To cut a long story short, we were able to get Offer 5 resurrected and put on the agenda to close. Got everything to lawyers, agents, etc. set up closing date in 2 weeks. I am all smiles!!16 - Day before closing, I get a call from the sellers attorney that the deed had not been recorded yet and we are not able to get the closing done in time because the deed is still in transit and it will be a few more days. Ok, no problem!! I call the buyer's agent and alert them and suggest we get an extension signed for 10 - 15 days or earlier, make sure the buyer's attorney has been notified and wait this out.17 - My asset manager calls me, they never call me they only email me this is scary, and ask if I can help the process along by going to the courthouse and seeing if there is anything I can do to walk the deed through for signatures. Ok, sure I will be happy to. I've learned, don't upset the people at the Recorder's office and don't upset the people at the Master In Equity office. I do my due diligence, find that the deed is actually at the recorder's office, they are recording it as I stand there, I go back to the office, call my asset manager and I am a hero!!16 - Ok, closing is just a couple of days late, but that's ok. Now I have to get all the lock boxes off the property, remove all the information from inside, pick up my sign and call and have all the utilities removed out of my name. I then have to get the utilities to send me an expedited bill as I only have 10 days after closing to get ALL bills submitted for payment.17 - Closing is done!!! Check is in my hand!!! Whew, that was good!18 - 30 days have gone by, I still haven't received my check for my utility payments, collection call made.19 - Oh look, three new listings just came across the email - and I wanted to be an REO agent WHY???The above is purely HUMOROUS only! I love what I do and it is an exciting business. I meet great people and have wonderful experiences to share. Please though, if you are thinking of becoming an REO agent, do your due diligence and research. Understand that your asset manager and banks have guidelines they must follow and you have guidelines you must follow. It is your responsibility that you are legal and ethical in everything that you do. If you are a member of a local, state and National Association of REALTORS you have a Code of Ethics that you must follow and you need to make sure that you keep yourself AND your asset manager out of trouble. Your biggest job outside of marketing and selling that property is to make your asset manager's job easier so they can get the other 200 files on their desk completed a little faster, and they will remember you and the extra efforts you did to help get the property sold AND closed.Remember, when the closing is done, send your thank you cards to everyone and include that Asset Manager also. They may have missed their bonus because of the delayed closing and they may need a little smile to cheer them up to help remember you on the next go round of properties in your area.Under Promise, over supply and as always - Have A Better Than Great Day!!
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As we approach the end of the federal tax credit incentive for the housing market, discussions are starting to whether or not extend the tax credit. I recent read two contradicted articles. According to a survey from CAR (California Association of Realtors), 40% of first time would not have purchased a house if it were not for the tax credit. In addition to that 70% of all buyers, first or second home, say that is was "very important" or "most important" in their decision process.On the other hand, a survey from Zillow shows that the tax credit was not a fact for most first time buyer when making a decision to purchase a home. Only 18% would be swayed to purchase a house in 2010 if the tax credit is extended. The discrepancies in the surveys is like water and wine. Who is right?
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V. A. Buyers

I have been working with the same VA buyers for six months. They are qualified, they have their VA certificate, they are willing to put money towards closings costs, and I cannot get them a home.It's not that I have never sold a VA buyer a home, I have never sold one when we had to compete for the home. The onIy deals I closed for VA buyers were homes that no one else wanted in other words, no competition, seller's only offer!I educate my buyers, I prepare them for the market, I tell them how to be competitive, and then I write winning offers. But with VA buyers the odds are stacked against me. Even if I offer more to compensate for the buyers lack of closing costs and VA non-allowables, I have to worry about jeopardizing the appraisal. AND It doesn't help that there is a shortage of REO homes to sale in the first place!I have been told by more than one listing agent that there is an order in which the banks consider offers that goes like this:1. All Cash above list price.2. All Cash at list price.3. Conventional Loan4. FHA5. VAI tell my buyers, it's nothing personal, it's a bank, they have no personal attachment to the home. They just care about the bottom net amount. Yes, with a VA loan even if the buyers are willing to put money towards the closing costs...there are still those non-allowables and that can be a deal breaker.Talk about deal breaker, I recently got an accepted offer (cash) only because my buyer said he would pay the termite. The other cash buyer lost the deal by $75.In the meanwhile, my buyers are discouraged and have stopped looking. They are going to save their money and go for a conventional loan.
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Why I like Lookie Lou's!

There are many reasons why I like and respect Lookie Lou's. If you've ever sat at an open house for two hours or more without traffic you will understand my first reason. With all the preparation given to arrange and set up an open house it is disheartening if no one stops in. I for one do not want to eat all my own cookies! Nor do I want my sellers to think nary a soul was interested in their charming, darling, cozy home.Au Contraire! I am there for a reason and that reason is YOU! Neighbors, curious George's, inquiring minds come one come all. I want to tell you about this home and show you it's features. Yes! That is my primary reason for having an open house. I also want to meet new people. I cannot be successful in real estate by talking to only a handful of people I know. I want to broaden my horizons and reach out to whomever is interested in discussing my passion for real estate. Consider me to be an artist in an art gallery. I will gladly discuss my work as well as engage in any discussion regarding art as it is my passion!Additionally, Lookie Lou's ask questions. Therefore we can engage in a conversation which typically evolves around, you guessed it, my passion and reason for being there.....real estate. This is a golden opportunity to 'feel the pulse' of someone who is interested but wary of the current market status. It is also an opportunity to dispel myths or mythical thinking. More importantly, it is a time to make a connection with someone new by discussing their concerns and providing access to information that may make them less concerned. It is also a time to delve into whom they may know who needs to sell or purchase a home. It is a time for me to introduce myself and my service to someone in the community who may not otherwise have met me nor I them. Think of it as a way of branding as my name needs to be in your thoughts when you or someone you know needs the services I provide.Yes, I am there holding this home open as it is on the market for sale. Certainly, it is my goal to sell it for my client. I will work hard to market it this way and any other way to fulfill their need and my responsibility to them. Additionally, I also want to meet you, whomever you are. Simply put......we need to connect. You may need some information I have and you may ask me for information I don't have but need to research. You may need my services someday or you may provide a service I need. You may know someone who needs my services or you just may know someone who wants the home I am holding open. Welcome to my open house Lookie Lou! Have a cookie and punch and let's chit chat while I show you this beautiful home for sale. We may not live next door to one another but we can certainly act like neighbors!Linda Landry, REALTOR ® Exit Realty 1st Choice Tucson, Arizona
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I've prepared this blog with the hope that it will educate and streamline the process for First Time FHA Buyers and their agents when writing offers on Fannie Mae REO's; of which we should see a large supply in the near future.Our market has changed and is not a traditional market any longer. As Realtors/Brokers & buyer's we all must adjust. Adjust to the fact that FANNIE Mae’s reo RPA supercedes all State RPAs (Residential Purchase Agreements). Fannie is also exempt from normal closing cost that a seller would be required to pay, Such as Title, Escrow, City/County X-Fer Taxes.1). So what does this mean to you as the buyer or buyers agent? It means you cannot assume that Fannie is going to pay for it even if you put it in your state RPA. You have to ask for it to be paid, and expect that total amount to be included as a portion of the total max of closing cost that the seller, Fannie will pay.It's an art to writing the perfect offer; however what is more of an art and much needed in this market, is educating your buyers. Sellers normally take the best offer, and Fannie Mae is no different. The best offer may not always be the highest offer and I have seen a lot of this lately. Buyers and their agents often question or wonder why their higher priced offer are rejected and lower offers accepted by the banks. The pecking order is CASH (We all know is King), Conventional, FHA, and Then VA. Why? It doesn't take rocket scientist to figure this out. We all know cash offers can usually close in 15 days and they are less likely to fall out. Conventional buyers usually have more money to put down and the lender guidelines/requirements for financing aren't deal breakers. FHA, less money down, and lender required repairs could be deal a breaker for a seller selling a property AS IS. VA, will just multiply FHA x 2 or 3 with no money down... If you were selling your property, what would your pecking order be in a declining, unstable market? Time is money, and if a property is tied up for 30-60, 90 days and falls out of escrow, a lot of money is loss. These days the banks are currently in the business of minimizing losses. We may see this change in an appreciating market, but not in a declining unstable market.2) So does this mean that FHA buyers won't get a chance to buy Fannie REO's at or near Rock Bottom Prices?No absolutely not. It means that buyers agents have to put together solid offers. Writing a contract 10 to 15K over list price on a Fannie Mae REO so that closing cost can be paid by the seller is an example of a poor offer, (Agents are u looking at comps when u do this, is this really in the best interest for your buyers?) Every Fannie Mae REO property has an extensive Broker Price Opinion (BPO) also know as a CMA, completed the listing agent as well as an appraisal. When the price is set, they are well aware of the value a property will appraise. Fannie Mae is also provided a monthly marketing update in which they are given statics to support lowing, increasing or mainting list price of the property. Writing an offer over the appraised value means the FHA deal is more likely to fall out should the appraisal come in low.When you see HomePath Financing! That’s a good thing it means the property will not have to be appraised (Fannie Has an Appraisal On File) and can be sold at list / offer price should you come to terms; however you have to use an approved Home Path Lender. A good way to go should this opportunity present itself.3) How do I present my best offer the First Time?Buyer's make sure you are Pre-Approved (preferably an institutional lender) Not Pre qualified. It’s also a good idea to show good faith by putting down a healthy Earnest Money Deposit (EMD). $1000.00 deposit with 3.5% down on a 150K is a poor example. I would recommend $2,500 to $5,000 if you want your offer to appear strong. When you read a RPA you can tell a lot about a buyer by their EMD. Cash offers are required to put 10% down as a EMD. As an REO listing agent I can only present to my client what you give me.If your a buyer or buyers agent that is doing FHA financing because you don't want to exhaust your savings account, show me!! Along with your offer and EMD your agent should be also including POF in your accounts. If you don’t tell me this I have no way of expressing or showing my client why your offer is just as strong as the next or maybe even better!! By doing this you increase your chances of direct competition with conventional offers, and you make it easy to select the best FHA offer.In closing I have just a few words of advice for agents writing offers.If listing agent instructions say preferred method to submit an offer is via Email. DO IT (In the subject line Enter Property Street & Buyers last name)Stack your Fannie offer as follows prior to emailing1) PRE APPROVAL LETTER2) EMD OR POF3) STATE CONRTACT4) FANNIE RPA (Signed/Initialed)If there is a Bank Addendum Attached in MLS. Have your buyer initial and sign it. Should your offer be excepted with the counter the terms can be written in and this streamlines the time it takes.Know that any lender required repairs after an agreement has been reached will be added to the top of the purchase price. Therefore do a complete initial walk through with your client before writing an offer, and ask for know repairs credits up-front if your comps don’t reflect the asking price with needed repairs. Remember the first offer received is not always the best offer so don't think you have to be first. Never write an offer without seeing the property, I actually check MLS and will request agents update their Dis Key's if an offer comes in too fast.This article is exclusive to Fannie Mae REO's; however the principals are universal and can be applied to all fields. Agents and buyers do your home work , comparable sales don't lie, so use them. My team of agents are trained to complete a CMA for buyer clients whenever their writing an offer. I would encourage others to do the same.Jonathan Burgess Broker/OwnerCode 3 Real EstateBroker/SAR/ IVAR/NARNFSTI Reo CertifedRes Net CertifiedReo Trans Certifiedwww.code3realty.comCode 3 Realty & Mortgage Inc.777 Campus Commons Drive Ste 200Sacramento CA. 95825Branch Offices In Tracey CA & Riverside CA.
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REO Agent DREAMS & NIGHTMARES!!!

If there's one thing that most of us can agree upon is that as reo agents, we see the best and worst that our great nation has to offer. On any given day, we will be assigned a property whose occupants are in the middle of some of the most heart-wrenching circumstances one can imagine. On that same day, we can also see the worst that society has to offer with obvious loan fraud, property theft and worse. Later that afternoon, we might run into a large and very unhappy dog left behind IN the house....Sometimes the stories we are a part of are hysterical too-A charming ranch-style home in a quiet suburban neighborhood where the living and master bedroom have brand new LEOPARD-SKIN print carpeting or a property formerly occupied by a large male who forgot his Cher wig and evening gown collection.....I love this job because no matter what, everyday is different from the last.I love this job because I get to see ordinary people buy their first homes when only a couple of years ago, they were resigned to being excluded from the great American dream of owning a home.Without question, I have never worked harder but at least for now I have a job where I can earn a good living that doesn't require me to say something like "Welcome to Wal-Mart" or "Would like fries with that?"I've learned more about determining the present value of a property and could move just about anywhere and earn a living as a Realtor because my job has required me to know the fundamentals of marketing and selling a home in just about every neighborhood that there is.That is the best kind of job security.My favorite story so far is helping a family buy their first home in California after coming here from Mexico in 1994, and being able to live close enough to their oldest daughters college so they could also afford for her to attend.The husband is a cement worker and the wife is a housekeeper, neither of which are positions noted for their high incomes. Despite this, in todays market they were able to buy a 4bd/2ba home for 150K in an area that would have cost over 400K in 2006. Was my commission very much? No, it wasn't even close to what I make on some of the nicer homes I am assigned. It was however, my most rewarding sale.What about all of you? Or is everyone else so cynical that it's only about the money?
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I'm currently looking for a movtivated buyer's agent that can work a growing terriroty in Stockton & Lodi. If you know of anyone looking to get there feet wet in the REO business representing buyers, assisting with MSR and Prop Mgmt, send them my way.Sincerely,Jonathan BurgessReal Estate BrokerNFSTI./REO-BPO CertifiedYou can send an email to: offer@code3realty.comProspects with relationships within the public safety professions are highly desirable!!!
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