Saving Money When Designing And Building Your Dream Log Home
Consider log home design options:
You have a wide variety of log home design options to consider.
At the top is a handcrafted log home or a timber frame log home. From there youcan go with a milled log home and even a conventionally framed home with logsiding and log accents for those on tighter budgets.
The savings start with the design of your log home. - The best way to beginyour design is to find a floor plan that is close to what you are looking for,mark it with your changes and send it to one or more log home companies of yourchoice. Most log home companies will gladly advise you on your custom log homedesign, where to save money, and then quote a kit price. Don't be reluctant tobegin a design with your unique requirements. Rarely (and I do mean rarely)does a company ship the same log home kit twice. If you are having difficultyfinding a plan that fits your life style, go to a search engine (e.g., www.google.com, www.yahoo.com, etc.) and search on “log home plans.” You will find many loghome companies listed; most of which have extensive libraries of standard floorplans. Another option would be to search on “house plans” where you will find amind boggling number of companies that sell conventional house plans, includinga few also offering log home plans. Remember, most log home companies willgladly convert a conventional house plan to a log home plan. Remember, the morecorners in the foundation, the more complex the roof system, the more windowscalled for, the more exposed rafters called for (as opposed to locallymanufactured roof trusses), the more the home will cost.
Do the log home labor yourself. - This is the opportunity for thegreatest saving. Of course, most of us work full time at other jobs and do nothave the time for such an undertaking. However, if your heart is set onresearching this option, visit any of the online book sellers, search on “loghomes” and order one or more books that focus on the construction of log homes.But perhaps the wisest choice would be to contact a nearby log builder andnegotiate an hourly rate for consultation or have them give you a proposal tobe a construction manager for you for a fixed fee or percentage on the costs.This method allows any savings to be passed back to you. It is best to spendtime and money up front to get the job done right, rather than deal withproblems later that never seem to go away.
Act as your own builder. - This is your option for the second greatestsaving. Many log home buyers decide to be their own general contractor.However, be aware, this choice is not without its headaches. That is why yousave all those bucks! Local building officials can be difficult to work with;subcontractors will be late or never show up; deliveries will be late or thewrong materials will be delivered; the weather is unpredictable; subcontractorsand suppliers may take advantage of your inexperience. And the list goes on.Regardless of the pitfalls and stress, acting as your own general contractorwill still save you about 15% - and that is big bucks. If you elect thisoption, again visit online book sellers, search on “log homes” and purchase oneor more books that deal with log home construction. Contracting with anexperienced builder to serve as an advisor or construction manager is highlyrecommended.
Shop for financing the same as you shop for building materials, appliances,etc. – If there is no local lender experienced in the financing of log homes,go to the search engines and search on “log home loans” or “log homemortgages.” Lenders will not charge you when you apply for a loan. Fileapplications with two or more lenders and then select the best deal. Sometimesit’s good to look at a national log home lender with log home experience.
Select your building lot with caution. - How long will the driveway be?If you must install a septic system, a health permit is a prerequisite, andthen, will it be necessary to pump to the drain field? Will it be necessary tocross a creek? How much grading will be involved? Is tree and stump removalgoing to be a problem? Will there be a rock problem when the foundation isexcavated? In other words, a "cheap" lot can quickly become anexpensive lot. If you are having difficulty finding a lot, contact a local realestate agent. Give the realtor your lot selection criteria (price range,location, size, etc.) and tell him/her to search the Multiple Listing Servicedata base. There is no charge for this service. The true price of the lotshould include all those things necessary to have it ready to build onincluding driveway, sewer, water, & power systems on-site.
Select your log home builders with caution. - When talking to buildersask for references and visit log homes he/she has built and talk to the homeowners.
Select carpet as your floor covering rather than hardwood floors. - Yes,hardwood floors are a "natural" in log homes. But we are looking foropportunities to save money. Perhaps you can compromise. Put hardwood in thegreat room and carpet elsewhere. Remember, at a later date (after you havereceived a job promotion or two) you can always replace carpet with hardwood.
Use Cultural Stone for wall accents and fireplaces attached to plywood andstuds in lieu of a full masonry or stone. - Don't tell your friends. It'simpossible to see the low cost plywood and studs thru the cultural stone. RealStone also weighs a lot and can require additional structural support. Thisdecision can save you a lot of money
Consider an efficient wood stove over an inefficient and more expensivefireplace. - Select black flue pipe instead of a masonry chimney. The blackflue pipe looks great in a log home.
Build your log home on a crawl space rather than a basement. - Again, weare looking for opportunities to save money. Sure, a basement is cheap floorspace and many buyers opt for the extra storage, shop and/or recreation roomspace; never-the-less, eliminating the basement will save $15,000 - $30,000 ina typical home.
Have your custom fixed glass manufactured locally. - Yes, your windowsupplier will want to order your fixed glass from the factory. While he/she isgetting a quote from the factory, visit a local glass shop. You may bepleasantly surprised. Locally manufactured fixed glass windows are availablewith double glass and/or tinted glass.
Select your windows and doors with care. - This is a major opportunity forsavings. Compare the quality and cost of several manufacturers before making adecision. If you expect to have a large number of windows and exterior doors,ask the suppliers if you qualify for a truck load discount.
Select your plumbing fixtures, electrical fixtures and kitchen cabinets withcare. - These are also major opportunities for controlling your costs.
Start shopping early. - Whether you hire a builder to do a "turnkey" job or act as the general contractor, you can save money onindividual items in the house - for example, appliances, floor coverings,windows, doors, plumbing fixtures, kitchen cabinets, counter tops, etc., etc.The earlier you start shopping the more likely you are to find items on sale.Just let your "turn key" builder know in advance that you plan toshop for sale items and BE AWARE, if you slow down or inconvenience the builder,you will quickly lose what you saved and probably much more.
Best wishes as you embark on an exciting journey.
Check out our Log Homes, Log Cabins, Luxury Log Homes, new log floor plans,client photo galleries, new articles, and videos at http://www.avalonloghomes.com/
homes (60)
I am sure you've heard stories about an REO agent in San Diego getting a listing assignment in Los Angeles, I am just really curious to see how many mile radius the asset management companies/banks are limiting you to I have had some companies cut back from 30 to 15 miles from office. Does anyone use their home address? If so how do they get away with it? I would like to hear seom of your feedback. Thanks, wish you all a productive 2011.
The Optimists
Bank of America, JP Morgan Chase, Ally Financials GMAC mortgage division and PNC Financial, have all suspended home seizures in all 23 states where courts oversee foreclosures. Bank of America is halting foreclosures in all 50 states to examine its process. Past sales will stand, and if you are not already out of the house.
Eviction: you could be evicted unless the buyer was the bank, they will not evict during the freeze
Helps families: The foreclosure freeze may buy time for some families and allow them to catch up and stay in their homes which could help some families try to get back on their feet and catch up with payments.
Reduces housing supply: In the short term, the lack of new foreclosed properties coming on the market could help the housing industry by keeping supply off the market.
Better mortgage mods: If the banks cannot willy nilly foreclose on properties, they will be forced to lend a stronger hand to mortgage modifications benefiting many more people.
Writedowns: banks may finally realize that foreclosure is damaging and that loan writedowns could be taken more seriously as a less complicated option to getting inventory off the books and repairing balance sheets by making these assets whole
Short Sales: Banks may be more willing to accept a short-sale offer. If the foreclosure route is messy or even unavailable for some period,the banks may become more open to a short sale as an alternative to holding inventory.
The Pessimists
The moratoriums can be incredibly destructive to the fragile recovery of the housing and housing finance markets. Consumers looking to get back into housing are even more put off than before.
Inventory: Those freezes could delay the housing market's recovery and a moratorium would add time to the necessary process of washing out all that surplus inventory.
Price stability: It will be difficult for prices to stabilize as long as a large number of homes remain in the foreclosure pipeline. They are likely to hold off to see whether more supply would lower prices even more, leading to further house price declines.
Crime and disrepair: if some properties are not taken off the market and are allowed to be abandoned they can It will also create more crime since communities will have vacant homes sitting empty for longer periods of time
A freeze in sales: The title insurance protects the bank that issuing a new mortgage. Title insurance searches for problems with title and assures or insures that the propertry is free and clear and can be sold. No title insurance, no new mortgage and no foreclosure sale. Title Insurance payouts could be enormous.
The banks will pull it: Fannie & Freddie stand to lose billions and will take the banks to court to recoup.
Sales slow significantly: If title insurance companies start to shy away from insuring foreclosed properties because of unexpected claims, the housing market could take another hit. Sales could be hampered by difficulty in getting title insurance, at or by higher fees associated with higher risk assessment.
Related Articles
Deficiency Judgments: Did You Know?
Fannie Mae: First Look Gives Home Buyers An Edge
Banks to allow local groups to buy foreclosures
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Following on the success of the First Look program many larger banks are going to take a page from first look program. Banks will now allow local governments and nonprofits the ability to buy foreclosed homes before they are sold to private investors.
The largest mortgage lenders in the country, including Bank of America Corp. and Wells Fargo have agreed to let the groups purchase the properties ahead of private investors. Neighborhood organizations will have up to 48 hours to evaluate bank owned property before professional investors get to view and bid for purchase. The idea is to level the playing field and allow those who would be stakeholders in the community helping stabilize real estate markets. HUD thinks they can move 100,000 properties through this program.
The National Community Stabilization Trust will collect information on foreclosed properties and help local groups to identify which ones to purchase.
From The Web Site
The National Community Stabilization Trust facilitates the transfer of foreclosed and abandoned properties from financial institutions nationwide to local housing organizations to promote productive property reuse and neighborhood stability. In collaboration with state and local governments, the Stabilization Trust builds local capacity to effectively acquire, manage, rehab and sell foreclosed property to ensure homeownership and rental housing are available to low- and moderate-income families.
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Related Articles
Who's Lending Now
Fannie Mae: First Look Gives Home Buyers An Edge
First Look Program
Fannie levels the field
What Is It
Individuals and public entities are given a period of time, generally 15 days after a property is listed at HomePath.com. Homepath is the listing site for about 190,000 properties held by the GSEs. Individuals and public entities (read non profits) have a lead time over ionvestors to inspect and submit an offer to purchase. After 15 days, the listing is open to all potential buyers.
The idea is to offer first to those who would live in the home and become stakeholders, adding stability to the community and to avoid too quickly putting property back into a supply laden market. By offering a sneak preview to owners first, Fannie hopes to encourage home ownership without the edge professionals may have and avoid the pressures of bidding against professional investors.
Why Should I Care
Levels the playing field and its working.
Fannie has moved more than 29,000 homes out of its owned real estate portfolio of properties acquired by the through foreclosure to owner occupants. Some 800 non profits have also bought an additional 5000 properties through First Look.
New Incentives
Fannie Mae markets its REO through its HomePath Properties. Under the new incentive program, owner occupants and public entities that buy a HomePath Property between now and December 31, can receive up to 3.5% of the purchase price in closing cost assistance. The sale must close within 60 days of acceptance of the offer and no later than December 31, 2010. The incentive must be requested in the initial offer.
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Related Articles
Fannie Launches the First look Program
Renters Who Lose Homes to Foreclosures
Ten Important Questions to Ask Your Home Inspector
New HUD Process
I had the opportunity to attend a webinar for new HUD listing brokers and there are somechanges, I think HUD is improving their customer service and their system, Ihave been selling HUD homes since I started in real estate 5 years ago, alwaysfrom the buyer side and sometimes it was very frustrating, and I think some ofthe new changes will make things easier.
I think the most important change is the time allowed for home owners to purchase FHA uninsurablehomes, in reality it is harder for a home owner to do all the renovations, andsome either don’t qualify or don’t care much about a renovation loan. Now withthe new deadline, it makes more sense for investors to start bidding earlier.
Well here is an overview of the changes.
· Separatecontractors responsible for property management and marketing/sales.
· HUDHomestore.comis a one national site for everything.
· Commissions,minimum $2,500 divided equally between listing agent and buyer’s agent. Maximum6% commission also split equally for both listing and buyer’s agent.
· NewBroker Registration Process.
· Earnestmoney (made out to HUD) submitted with the contract.
· ElectronicLock Boxes.
HUD has divided the country in 4 contract area and every region is divided in a smaller set ofsubregions.
HUD register, (no only listing agents) brokers may advertise, and hold open houseson HUD properties, however they must gain approval from the Asset Manager.
For agents to bid and sell HUD homes, their broker has to be approved by HUD and have a NAIDnumber and also both broker and agents must be register with HUDHomestore.com.About this site it is one site for the entire country, purchasers will see whatbroker see, bringing more transparency to the transaction, Asset Manager willlist properties on a daily basis instead of once a week. Also this website isthe only place to submit a bid.
House insurable or Insurable with Escrow will have an Exclusive “Owner Occupant”period of 30 days, a 10 day biding period and if no offer is accepted then bidswill be reviewed daily for another 20 days only for owner occupant.
For Uninsurable Properties there will be a 5 day exclusive Owner Occupant period, after thatbidding will be open to all purchasers on a daily basis if an acceptable owneroccupant offer was not received.
Also agents have to make sure they have complete sales contract HUD form 9548 andcertification of broker form, Lead Base paint, Radon and Mold, MED, ExtensionPolicy, Home Inspection, Owner Occupied (if applicable) and local requireaddenda, together with a pre-qualification letter form a certified, licensedlender if sale contains a mortgage contingency. Agents have 48 hours to submitall those documents to HUD after bid acceptance
Earnest money will be held by HUD’s designated closing agent, and they will notify thebrokers who will closing agent will be once the contract is ratified.
Important Reminders
Never take or give a property key to anyone, absolutely no repairs prior to settlement,remember that all HUD homes are sold ASIS, do a pre-settlement inspection, alldocuments and contracts have to be submitted to HUD with in 2 business days.
That Troublesome Contract! ….part two
For part one of this “mini-series” please see: http://reopro.ning.com/profiles/blogs/that-troublesome-contract
As you see from Part One, this all started the week after Christmas, yes...Christmas of 2009. But let me get you up to speed with the latest.
Finally, after weeks of back and forth between the buyer's agent and the bank's asset manager, we come to an agreement on terms. Which were pretty good on paper, key phrase here is “on paper”. The deal was $4000 over list price (no competing offers) so the buyer could get more closing cost paid. The bank normally would not pay more the 3%, but the buyer needed up to 6% to make the deal work according to her lender. Red flag #4 or 5, not sure as I had stopped keeping track by now as we were in the second month of this transaction and still do not have a binding agreement. Almost all the delays were cause by the buyer's agent, having him re-write the offer 7, yes 7 times, before he got it right!
I get the A/M to finally understand what was going on and their net did not change, this only took 3 or 4 emails. The A/M send me the contract back to have the buyers initial off all the changes to the contract before he signs it. WTH? Why didn't he go ahead and sign it? But anyway, I roll with it and send it to the buyer's agent with instructions on what to do. This bank's division does not use addendums, they just mark out what they don't like on the original contract and initial all the changes. I've gotten use to it but some agents get very confused about this. I tell the agent the buyer must initial each and every change or it will be sent back to him. Well, it took 3 attempts to all the initials in the proper places, still not sure if it was the agents fault or the buyer's but I'll blame the agent anyway, he should have known better!
So after 2 more weeks I send the contract back to the A/M for his final signature. Shouldn't take more then a day, two if he's busy...right? Wrong again! Three WEEKS later I get the signed contract back and guess what, now we have got to re-negotiate the closing date as by now we only have 8 days to close a FHA loan. Finally, a closing date is set for April 20.....cool! Or so I thought.
Well, by now the buyer has swapped lenders, another red flag! I called the lender to confirm the approval letter like normal, “no problems” says the lender “we can close by the 20th”. COOL! Or so I thought again. This was early mid-March so I thought they had plenty of time to get this done. Wrong again!
Two weeks before any closing I usually start calling the buyer's lender to see how things were going and if there were any snafu's popping up. Well, when I call the lender his office phone number has been disconnected (red flag # 30 something by now?) but he answers his cell phone. Kids and a TV in the background, he quickly tells me he is swamped and would call me back in 10 minutes. Three days later I call him back, same story...will call you back in 10 minutes. I then call the agent, he says he will talk to the lender and call me back in 10 minutes. LOL, this is starting to become a funny game. Two days later he calls me back and says “no problems, we will close on the 20th”. It was around the 15th, (the closing was the 20th) so I say COOL! (I have got to stop saying this)
On the 20th the agent calls me early in the morning to say there is a problem. No kidding? There has been a problem since the very start! I told him he gets one shot at extending the closing date, talk to the lender and see exactly what the problem was and how long he needs to get this done and closed. That afternoon he calls me to say that the lender told him that the buyer's credit score was 613, that they were working on some credit repairs and would need an additional 21 days. WTH? This “lender” issued a letter of approval knowing that the buyer is not qualified? And I believe the agent knew this all along!
After I calm down and come off the ceiling, I tell this agent that this was unacceptable and that he needed to find a way to get this closed by the end of the week, 7 days max. To send me a closing extension request form before 4pm. Well I get it at 10pm that night.....requesting the 21 days I told him earlier he would not get. Needless to say that the bank rejected the request and I prepared the Termination of Contract and Release of Earnest Money form, sent it to the A/M on April 21 for him to sign, the day after the scheduled closing. COOL, I think to myself, I can get this back on the market in time for the last week or so of the tax rebates. Which did prompt a lot of activity locally.
Well, not so fast there big boy! Even so the A/M said that the bank wanted the earnest money ASAP because the buyer failed to close, and I sent the form to the A/M last month for him to sign and send back, I'm still waiting. The contract is still active and I cannot put it back on the market because in Georgia, contracts do not automaticly expire if not closed. It MUST be terminated in writing, no if's, and's or but's. This was explained to the A/M when I sent him the form.
I inquired again this past week with the A/M, as now I'm getting nasty letters from our business office wanting the paperwork or threatening to fine me. Again the A/M says that the contract has expired because it did not close, to send him the E/M ASAP. Now I can understand that keeping up with contract laws in multiple states can be overwhelming and hard to do, no problems. He tells me that other agents in my state do not require this form, why am I?
Because it's Georgia contract law and these other agents are wrong, not to mention breaking the law. I was only trying to protect them from any future legal liability. He did not believe me and requested documentation on this, so I found an article written by the very attorney who writes the contract forms for the Ga. Assoc. of Realtors (GAR) that states exactly what I have been telling him. Still not good enough and they call one of the partners in the mega law firm that handles all of their closing services.
That was Thursday, I'm still waiting for a one page form needing one signature and fax/emailed back to me and I'll take care of the rest.
I'm starting to think this house is jinxed! This is the third contract that has failed to close, I've had to fire a team member over it (that's for a whole other blog there), and now I expect to be fired by the bank because I refused to break contract law. Not to mention that I'm about to get a $50 fine for not turning in paperwork that the A/M has refused to sign.
I'm hoping that Part Three is a much shorter story to write!
Steve Adkins – REALTOR®
Better Homes and Gardens Real Estate Metro Brokers
404-843-2500
Hiram Office
Keller Williams Realty Associates may be taking the day off on Thursday, May 13, 2010, but it will hardly be a day of rest. Over 25,000 associates across the United States and Canada will spend their day off by giving back as part of the company’s community service initiative: RED Day.
Short for “Renew, Energize and Donate,” RED Day was created to unite Keller Williams Realty offices and associates in an international day of service. During RED Day 2009, over 25,000 Keller Williams associates participated in activities ranging from food and blood drives to cleaning up trash in public parks, doing yard work for neighbors in need or revamping gardens at nursing homes. Last year on RED Day, the company donated over 130,000 hours.
As part of the RED Day effort, Keller Williams Realty of Tracy has chosen to spend the day with McKinley Elementary, one of the 1st schools to be established in Tracy, CA. We have found that this aged site is lacking an outdoor sports field & sports equipment and many of the 450 children come from families with little to no income, making necessities such as paper and pencils a rarity. With the majority of students being on free or reduced lunch and/or breakfast, these teachers and staff have many obstacles to overcome in order to provide the learning facility that each and every child deserves.
We’ve made a commitment to McKinley Elementary to donate 450 backpacks filled with school supplies to start out the 2010-11 school year on the right track. We are reviving the sports field and building a soccer goal for the kids and their soccer field. We’re also hosting a BBQ for the staff and enjoying an afternoon of outdoor play with all the students; DJ playing Kids BOP, activity booths, raffle prizes and soccer play with Troy Dayak of Dayak’s Den.
The Silveria Team has raised nearly $1,000 of cash donations to contribute toward the school supplies. We’ve received gift cards and meal vouchers from many local businesses, which we greatly appreciate.
We are all very excited to spend the day with the students and staff of McKinley Elementary. We would like to invite you all to join us in our RED Day activities. We will start our day at 8:20 AM and stay until school lets out in the afternoon. If you would like to make a donation of school supplies, soccer equipment, raffle prizes or your time, we would love to hear from you.
Alarming News for Short Sale Negotiations
By Ann Bonehttp://blog.metrobrokers.com/2010/03/15/alarming-news-for-short-sale-negotiations/#more-1219
(This is posted with permission from my brokerage, un-edited)
I’ve been peppered with questions about a rather alarming article being circulated over the past couple of weeks, written by a well-respected real estate attorney in the Atlanta market area. The thesis of the article is that real estate agents may be committing a felony when assisting sellers seeking short sales by participating in any negotiations with the sellers’ lien holders. This is supposedly because the Georgia Residential Mortgage Act of 2007 requires any person who negotiates mortgage loans to have a mortgage license (which 99% of real estate licensees lack) and that working with the sellers’ lien holders is “negotiating a mortgage”.
Why raise this alarm now, in 2010? It’s being whispered that some (not all) mortgage brokers and lenders are angry at being required to become licensed in Georgia and are looking to make examples of real estate practitioners who they see as encroaching into lender territory.
March 31, 2010 marks the “drop dead” date by which mortgage brokers, mortgage lenders and the independent contractors working with them who solicit, process, place or negotiate mortgage loans for others or who work on renewing or refinancing mortgage loans for others must be licensed by the state or exit the mortgage business. The state and federal exams each applicant must pass are onerous, to say the least. I’m hearing that over 70% of the applicants are not passing either the state or federal exam and having to retest prior to March 31, 2010. It’s high stress time in the Georgia mortgage business, especially for the less reputable mortgage companies.
Why would real estate licensees be suddenly singled out for retribution? Well, could it be that REALTORS, those real estate licensees who join a Board or Association of REALTORS and pledge to adhere to a National Code of Ethics, were supportive of the efforts to force licensure upon the mortgage industry?
Real estate practitioners have been required to be licensed in Georgia since 1925. Anyone printing a business card or setting up a web site could call themselves a mortgage lender until the 2007 passage of the Act. And those active in the mortgage business prior to 2007 were “grandfathered” until the upcoming March 31 deadline.
Coincidental to the 2007 passage of the Act, the mortgage meltdown gained momentum in Georgia.
Reasonable people have discerned that unknowledgeable buyers and homeowners over-borrowed on over-valued properties. No one wants to allow that to ever happen again and the reins have been tightened by all parties involved in the real estate financing transaction – the real estate licensees, the appraisers, the lenders, the closing attorneys and the title companies. Please note that all the participants listed were licensed by the state in 2007 except the lenders.
Please don’t misunderstand me; this is not a blanket criticism of mortgage lenders. The reputable lenders will survive both the licensing process and the current economic downturn.
Today, though, real estate licensees are being threatened with prosecution for listing properties with outstanding mortgage obligations in excess of the current market value and assisting those owners in the process of proving to their lenders that an offer to partially pay off the total indebtedness may be better than forcing the lender to eventually foreclose on the property.
Since when is paying off a loan “negotiating”? And, since most mortgage loans have been packaged, sold and resold, perhaps multiple times, exactly which lender would negotiate with the final mortgage holder of a specific mortgage? The mortgage lender which originated the loan? And are they still in business?
Keith Hatcher, the Governmental Affairs Officer for the Georgia Association of REALTORS (GAR) has stated that it is his opinion and the opinion of key elected officials who serve on the Ways and Means and Banking and Finance committees that it would be a stretch to interpret the Act in this fashion and that this is not the intent of the Act. GAR is, in fact, working with the chairman of the Ways and Means committee to draft an amendment to the Act which would clarify that it is not a violation of the law for real estate licensees to assist in the negotiation of short sales.
__________________________________________________________________________________________
Granted, this story is about the State of Georgia, but because some of the licensing for lenders has federal connects, it may apply to other states. I did get word this afternoon (after this was written) that State Law Makers addressed this issue early today but an official statement should be released soon. More to come as I get it.
This should not be considered Legal Advice in any form, I only wanted to bring this to people attention as we all may be affected by this. Scary to say the least!
Steve Adkins - REALTOR
Better Homes and Gardens Real Estate Metro Brokers
404-843-2500
An asset manager can mean many things depending on what industry you refer to (and no, we’re not referring to your computer operating system’s asset manager in this blog post). Even in real estate, it can mean different things — someone who manages rental property can sometimes go by the title of asset manager.
For the purposes of buying and selling real estate (and the sub-plot of understanding foreclosures in the secondary market), an asset manager is neither someone who collects rent on a property or sorts out the different processes that Windows is running. An asset manager is the person that controls a bank’s REO listings and properties.
(And if you didn’t know, REO stands for Real Estate Owned — it’s the term given to properties that have gone through foreclosure, failed to sell for cash at the foreclosure auction, and reverted back to the lender.)
Now, why should you know what an asset manager is? More importantly, why should you find out who asset managers are?
Simple — they’re the people that you can negotiate with if you want to buy these properties. And because these properties come in such wildly varied states — some in good shape, some in bad; some in pricey neighborhoods, some in cheap homes; some are mansions, some are tract homes — getting in touch with an asset manager will help you zero in on the exact type of home you want, all while educating you on just what it would take to pry that home out of their hands.
How can you figure out who is an asset manager at particular bank or lender? Thanks to the internet, we’ve got a number of ways to determine these things. You can try searching on a professional networking site like LinkedIn or you can go with the more direct approach and use Jigsaw to figure out who holds that title at a specific bank.
Update: For clarification, please note that this post is designed to
help you learn who the major players are as you educate yourself on
the process. However, it's best to work with the REO agent whenever
you involve yourself in a potential transaction. Not only are REO
agents experts in bringing a deal to close, the asset managers will
probably thank you -- they're often juggling 200+ case files at once,
which means they've got a lot on their hands!
Search for foreclosure homes www.bestreohomes.com
The views published here are the opinions of the writer and are not a substitute for legal counsel.It doesn't matter if REOs are here to stay or short sales are the new REOs. It's the sense of helplessness that it brings to the homeowners and agents alike.We are talking about the new revolution in real estate.
Will you be a fighter?
And yet, a new model of real estate snuck up on most of us. It started with a small band of rebels, the ones who threw away the old, tired rules and instituted fresh new ones. The rest of us stood by and watched, some of us in horror, some of us in awe, most of us hoping the rebellion would be short-lived, that soon we could return to the old model and the old way of doing things. But the rebels’ voices became louder and more strident.
They called it ‘The Short Sale Revolution’
Ultimately, we couldn’t do anything but notice.To notice, though, is not to accept.
First, we had to go through the 5 Stages of Grief.
Denial
Anger
Bargaining
Depression
Acceptance
At first, we entered a state of denial. This can’t be happening, we said to ourselves. And even if it is, it won’t last long.
Then we got angry ... good and angry. At the banks, at Wall Street, at Washington, at buyers, at sellers ... at the unfairness of it all. Why me? we whined. Why real estate? Why my profession? Why now?
Then we bargained for the old ways, stuck to our business models, and dug in our heels. Wishing and hoping all the while for everything to return to the way things used to be.
Towards the end, we became depressed, wondering if anything would ever be the same again. We experienced feelings of hopelessness and frustration. We mourned the loss of business and the putting off of dreams. We felt a lack of control and were confused about what to do next. Sometimes we cried. Other times we yelled and shook our fists at the sky.
Finally, realizing change was here to stay, we accepted the truth, and more importantly, understood it wasn’t our fault. We began to look for solutions. We started revising our business plans, throwing out what didn’t work, and trying new ways. During the process, we adapted to the way things are and not the way we wished them to be. We also learned that this is an ongoing process. If ‘this’ doesn’t work, maybe ‘that’ will. The learning curve is steep. The rules change constantly. We have to adapt every minute, every hour, every day. And we have to remember that we’re not only reinventing our business but reinventing ourselves.
What happens when foreclosures and short sales work their way out of the system ... one year, two years, three years from now? What then? Will all our hard work be wasted? Not in the least. Because we will have survived and become stronger for it. And we’ll be better at what we do.
It’s the dawn of a new era. Welcome it. Embrace it. Spit in its eye when you feel the urge. But keep on ‘keeping on’. The real estate market is here to stay, and so are we.
Need help in Southern California short sales, reos, loan modifications
call me
Carmen Cooley Graham 619 218 7390
Keller Williams
DRE # 012961519
Don't be a victim I am here to help.
www.Carmensellssandiego.com
The key to mainstreaming green homes is to make sure that consumers understand the value of green upgrades — how cost-effective energy efficiency can be in the long run. Consumers want homes that are environmentally friendly and home values should reflect the increased savings.
Better Homes and Gardens
- 2% of consumers are planning to have high-efficiency heating and cooling in their next home
- 3% are planning to have high-efficiency appliances
- 3% will have geo-thermal heat
- 5% said energy-efficient heating and cooling will be more important to them
- 6% said Energy Star appliances will be more important
Appraising Green
Appraisals need to better reflect the value added to energy efficient green upgrades. Legislation is pending which will require the consideration of any renewable energy sources, or energy-efficiency or energy-conserving improvements. Appraisers will tell you they have been considering green improvements for 15 years, typically, double paned windows, insulation and solar hot water heaters. The value normally attributed is the installation cost. But that is just the beginning of the direct savings to the new owner. The ongoing savings of operating a greener home is not being reflected in the appraisal and yet it can be significant when compared to a home that isn’t energy efficient.
To reflect true value buyers need to recognize the increase savings when comparing homes. Appraisers will tell you that when the energy cost savings can be documented, home buyers are more willing to pay a premium. They understand the lower monthly cost of ownership and better resale value.
Most state energy and public utilities offer incentives, rebates and tax breaks for energy efficient upgrades. Realtors should suggest that sellers take advantage of these incentives. Consumers clearly want greener homes and agencies offering rebates can document the projected savings. This can be a powerful sales incentive in a market where value
is king.
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