10) A thousand business cards are on the kitchen counter, the property has been on the market longer than normal, and the listing agent says he’s looking for offers. It looked good on paper, but nobody felt like doing anything after seeing the house. (Note to Seller: wake up and smell the business cards.)9) It’s a bank-owned property on the market for over 30 days (Substitute the appropriate “expiration” date for your market). Unless this property fell out of escrow with a Buyer who could not perform, beware. Bank-owned properties in many inventory-depleted markets do not last. Caveat: If it fell out once because of the Buyer and not because of the property, you may have an opportunity to grab a deal that others are assuming is a dump.8) A $200,000 listing is on the market for over 30 days (Substitute the proper value threshold in your market). Cash is King and in any market, and cash buyer activity is red hot below $200,000 in my market. If you see a house under the threshold getting passed up by the Kings, it’s a sign they smell something foul. Perfect segue to …7) You have to hold your nose to tour the property, or worse...1) Buyer hits an odor wall and can’t go any further, does a 180 and bolts for the exit.2) REALTOR does the same. Now we’re talking about a real estate professional whose nose has been around the block a few times.3) Contractor’s eyes start to water. He has no olfactory abilities. His nose shut down years ago and now his eyes are complaining at this house.6) The property is listed 30% below comps. Honey, it ain’t comparable. It does not compare. It can’t compete. It’s screaming for a professional Buyer, so if you’re not one, think again. If it’s a single family house, you’re looking at a sinkhole, parking lot, cracker box, meth lab, land lease, money pit, or animal shelter. If it’s a condo, you’re looking at an HOA with no reserves (money pit again), high delinquency, high number of rentals, majority owner, or major lawsuit.5) Three Lenders Have Told You No To This Property. Did you get a clue when the first one said “Sorry, I can’t take your money?” The problem is they have to give you money to make their money, but the collateral isn’t there. If your lender isn’t interested in the property, you shouldn’t be interested.4) You’re an FHA Buyer offering below list and you get accepted! (Has this actually ever happened?) This is one of those times when perverse logic, “If you like me so much, why would I possibly like you,” actually makes sense. Sorry FHA Buyers, but if your agent hasn’t told you it’s rough out there, I’m here to tell you.OK my list came up short. What can you add to the “Top 10 Ways to Know You’re Buying a Dump.” Looking forward to the stories - I’ve saved the top three spots for you!
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Posted by MIRELA MONTE on February 4, 2009 at 2:15pm
Asking price: $167,432 on a Bank Owned property in an oceanfront building where similar listings are still priced at over $200K. My investor client asked me to put in a bid for $125,000. The bank approved it. SOLD!Asking price on a short sale: $190,000 in an Oceanfront building where similar condos are still listed for up to $300,000. My investor bid $154,000 for it. The bank finally accepted $168,000. We closed last week.I just received a request to bid on a short sale home currently priced at $549,900, the least expensive home ever sold in that neighborhood. The lead came from Active Rain. The investor wants to bid $260,000. Will I write it up? You bet! Why? Because the bank might actually take it!Here are some deals you could bid on: Luxury condo on Waterway. Asking price $299,900.Waterway community custom home, 4BR/3BA. Originally priced at $799K. The bank now owns it and listed it with me for $489K.Just check out our website for current REO deals at: http://www.myrtlebeachhomes.us/Homes or www.BankOwnedInMyrtleBeach.comGo ahead: insult the Seller! I will be glad to do it for you!Mirela Monte, Your Myrtle Beach REO Source
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