Blog

McKissock, a leader in continuing education for real estate-related professionals, now has more state-specific, state-approved home inspector courses and land surveyor education. From the McKissock website, they have access to all they need to fulfill state requirements, including governing agency information, and can begin taking required coursework immediately. McKissock offers customizable packages, individual courses and webinars that are easy to access and affordable.

In addition to understanding the requirements of state regulatory boards, McKissock has affiliations or communicates directly with associations to help professionals receive continuing education credits. Those associations include: the American Society of Home Inspectors (ASHI), National Association of Home Inspectors, Inc. (NAHI), International Association of Certified Home Inspectors (InterNACHI) and California Real Estate Inspection Association (CREIA).

“McKissock’s courses are dependable, accessible, low-cost and compliant, which is the formula for success for busy professionals,” says Annie Creek, New Market and Compliance Specialist at McKissock. “Since each state has different requirements, it’s reassuring to know that McKissock can verify what’s necessary to keep your license from lapsing.”

The state-specific core Home Inspection courses include:

• Connecticut
  • Connecticut Home Inspection Laws and Legislation
    
    
• Illinois
  • Electrical Service Inspections
  • Exterior Pre-Drywall Inspection
  • Foundation and Footing Construction Inspection
  • Interior Pre-Drywall Inspection
  • Plumbing Cross Connections
• New Jersey
  • Obey the Law: Standards of Practice for New Jersey Home Inspectors

• Nevada
  • Nevada Home Inspection Safety for IOS (Inspector of Structures)
  • Nevada Home Inspector Law

(Note to Nevada professionals: To renew an active certificate, a certified inspector must complete 20 hours of approved education, including, without limitation: (a) At least 3 hours of instruction on issues relating to the safety of any inhabitants of a structure being inspected and the inspector conducting the inspection; AND (b) At least 2 hours of instruction on the provisions of this chapter (laws) and chapter 645D or NRS.)

The state-specific core Land Surveying courses include:

• Alabama
  • Alabama Standards of Practice
• Arkansas
  • Standards of Practice for Arkansas Land Surveyors
• Florida
  • Florida Minimum Technical Standards and Ethics
• Idaho
  •  Idaho Minimum Standards of Practice
• Illinois
  • Standards of Professional Conduct for Illinois Land Surveyors
• Louisiana
  • Minimum Standards for Property Boundary Surveys in Louisiana
  • Professional Ethics for Louisiana Land Surveyors and Engineers
• Missouri
  • Missouri Minimum Standards
• Mississippi
  • Code of Ethics and Professional Conduct for Mississippi Land Surveyors and Engineers
• Montana
  • Montana Ethics for Land Surveyors
• North Carolina
  • Standards of Conduct for Land Surveyors and Professional Engineers in North Carolina
• North Dakota
  • Rules of Professional Conduct for North Dakota Land Surveyors and Engineers
• Nebraska
  • Standards for Nebraska Land Surveyors
• New Mexico
  • New Mexico Ethics and Professional Conduct for Land Surveyors and Engineers
• Ohio
  • Standards and Code of Ethics for Ohio Land Surveyors 
• Oregon
  • Rules of Professional Conduct for Land Surveyors and Engineers in Oregon
• South Carolina
  • Rules of Professional Conduct for South Carolina Professional Engineers and Land Surveyors
• Wyoming
  • Code of Ethics for Wyoming Professional Engineers and Land Surveyors  

McKissock is an education company that educates, empowers and enriches professionals in real estate, appraisal, home inspection, land surveying and engineering. McKissock gives specialists a place to go to access relevant, easy-to-use and high-quality courses that provide the hours and information necessary to meet state compliance and regulation requirements. Founded in 1990, McKissock offers more than 100 courses and serves thousands of professionals daily. The company is focused on providing a superior customer experience that will help professionals move their career forward. To learn more, visit www.mckissock.com. 

I recevied a notice that IAS lost the Bank of America accounts.  Did any anyone hear about this happening before they actually lost it or was this a suprise?  I only heard about it after I received an email that stated "as you all know IAS is no lnoger servicing BOA accounts, etc.."  Sorry, I did not know. I noticed the BPO orders in Indianapolis were getting to be much less the past few months. Anyone?

Charts show a decline in inventory we’ve come to expect in the 4^th quarter however they also depict a long-term trend downward. Of equal note, the past 3 years have shown an increase in Bank owned (REO) inventory in the 4^th quarter. So far, that isn’t happening. It is early though, we’ll see.

To view charts and tables:  http://www.centralorproperty.com/Central,ORTrends.html

In this quickly changing market Short Sales I believe, are the segment to watch and know.

Short Sale inventory trend is pretty flat. Homes are coming on and going off the market pretty regularly. Many distressed property owners have chosen the short sale alternative as a way to avoid foreclosure. Meanwhile, lenders have streamlined their processes to make the short sale transaction easier. Buyers and sellers take note: The key to a successful short sale is an informed and experienced listing agent and buyers agent  as well as  a seller that is willing to provide the required information to their lender (very similar to obtaining a loan).

Currently the feds are granting an exemption of taxes on the deficiency amount, normally treated as taxable income. Many motivated Lenders/Servicers are paying incentives to short sale as well. The tax exemption is set to expire end of this year. Many believe Congress will extend it but hey, do we really know what Congress is going to do or not do???

For more information on this subject see My Short Sale Guide

http://hosted.cdpe.com/190298

All said, short sales are becoming more worthwhile to all parties and will be around for quite some time.

Quick rundown of inventory in percent by sale type:

Short sales 5.4%

REO (Bank Owned) 1.8%

“Non Distressed” 92.8%

For more stats on our market go to one of these sites:

http://www.centralorproperty.com/Central,ORTrends.html
or
http://centralorhomesales.com/inventory.asp

I was reading about short sales, as I do every Sunday morning on a great site for short sale information Short Sale Superstars. There was a discussion about a Bank of America Short Sale that had been approved, and then denied after the approval, a few days before closing. The reason:

The seller was a real estate broker and the listing agent works for the seller. The buyer used the listing agent to represent her.

Surprise Surprise, B of A said this is not an Arm's Length Transaction and rescinded the approval.

There are multiple things wrong with transaction so let me see if I can organize the problems coherently.

1. All short sales must be an Arm's Length Transaction and an affidavit needs to be signed by all parties saying they are not related to each other in any way. The listing agent works for the seller so that is not arms length.

2. The seller may be offered a closing incentive by the bank, but is not allowed to receive any money from the buyer. Since the buyer is using the the listing agent who works for the seller and would have received commission for the sale, a portion of which would go to the broker, then the seller is getting money from the buyer.

3. Again, since the listing agent works for the seller and would get commission from the sale, a portion of which would go to the broker, the seller would be receiving money from the sale outside of the closing incentive.

4. The buyer has agreed to a dual agency and is entitled to the information that the listing agent works for the seller and that this can cause potential problems with The Arm's Length Transaction.

I do not know if the seller was trying to pull something over on the bank, or if he was just not familiar with short sales but this was totally avoidable.

Buyers: get your own agent to represent you.

Sellers: If you are a broker, get a different company to represent you. If you are an agent, get another agent to represent you, not your broker, and ask the bank if it is ok to be represented by someone else in your campany first, not after you are about to close.

If you have any questions about buying or selling a short sale in Santa Clara or San Mateo County please feel free to contact me.

Marcy Moyer

Keller Williams Realty

www.marcymoyer.com

marcy@marcymoyer.com

650-619-9285

D.R.E. 01191194

There are 2 reasons real estate investors shouldn’t fear big bulk buyers of distressed properties and 4 ways they can level the playing field and vault ahead of them…

Some smaller real estate investors and the media have been creating panic by stirring up stories of bidding wars and a lack of discounted inventory for flipping houses or at least locking into the best cash flow spreads and long term wealth building opportunities on rental properties. Most point to over-sized hedge funds and some 6 billion dollars in cash they have to throw around as the main problem but there are 2 good reasons why this shouldn’t be so much of a concern or reason to start sprucing up resumes to find a 9-5.

1. The Non-Performing Loan Iceberg

It is true that the visible selection of housing inventory for sale has dropped dramatically in some locales and that some zip codes have seen the percentage of foreclosure homes drop in share of transactions but there are many more non-performing loans out there than most realize.

What most investors see as available inventory on the market is just the tip of the iceberg and so are the estimated 5.6 million homes lurking in shadow inventory today.

The latest non performing loan report from BankProspector shows that there is over $238 billion in residential non-performing mortgage loans out there today. Keep in mind that residential only makes up a tiny 26% of the distressed properties in some stage of foreclosure too.

That leaves plenty of opportunity for every investor to make an incredibly sizable income over the next few years.

2. The Disadvantages That Bulk Buyers Face

Being bigger isn’t always better. In fact smaller investors have many advantages over their hedge fund counterparts.

We know speed, flexibility, market intelligence and due diligence are the keys to profitable real estate investing.

These are the assets smaller investors have and areas where they can excel. Big bulk buyers face many challenges and while they might be buying big, that doesn’t mean they are making more money. Even the discounts they receive on auxiliary services due to volume are easily eaten up by a lack of focus and cumbersome corporate structures. They are plagued by poor property picks which quickly sabotage the good deals they do get and it is unlikely they have adequately anticipated the true expense associated with rehabbing and managing these properties.

4 Real Estate Investing Strategies for Defeating the Competition with Bigger Pockets

It is true that some real estate investors may want to switch up or at least augment their acquisition strategies to keep up deal volume and find wider spreads; so if you are going to avoid going head-to-head and overpaying in the hottest markets, what’s the alternative?

1. Consider markets where foreclosures are surging like CT, IN, IL and MA
2. Pool money together or use transactional funding to walk in with more cash
3. Jump the line and target off market REOs
4. Take them down even earlier as non performing mortgage loans for sale

Postcards are a popular vehicle to get your message out to distressed homeowners, but there are potential pitfalls when using postcards in pre-foreclosure marketing. This video discusses the best practices. 

This company did not realize they called me on my cell and my landline with in 20 minutes yesterday. BIG SCAM!!!!!! they wanted me to pay $349.00 to use there platform. When I ask them for an address he could not give it to me. He said they go by Zip Code, when I confronted about the reviews on Google he said thats not them and there all lies. Then he started getting loud with me. I hung up the phone and called back and lit him up like a fire cracker. DONT SIGN WITH THIS COMPANY FRAUD!!!!! SCAM!!!!

You know, I gotta' admit, I'm pretty tired of the run-around.

SAM is a perfect example.

I've been in their system now for years. But, I get BPO orders and ALL of their listings go to another agent in town.

I asked them several times if they could share the wealth. I mean, it kinda' sucks that I only get $45 BPO's and this other guy's making thousand$.

I asked several times, pointing out that on several occasions my expertise was solicited to support this other Realtor's pricing. And, I have more years in the business. AND, I think I was in their system before him.

But, will they throw me a bone? Will they give me even ONE listing?

Nope. They say they're all set, nothing I can do, except maybe wait 'til other agent "goes away".

And, I see same thing happening elsewhere.

Recently had a run-in with a company who services HUD. The agent in our office that they were working with was let go (from our office)--and you'd THINK that might give HUD Rep pause to reconsider and perhaps go with me, the agent who originally signed our office up with them (HUD).

But when I called AM, he got real nasty and said he was going to stick with that agent no matter their ethics, history, etc.

And then there's the bureaucracy that is Fannie.

Why they stay with the current agent they have servicing 90% of their listings in this area, is beyond me. This agent has a terrible reputation, sometimes only puts 1 photo on line, and generally thinks their s__t don't stink.

Yeah, yeah, yeah. I know. You're thinking I sound like a bitter, twisted semi-professional windbag.

But you and I both know, the system is terribly flawed!

What I wouldn't give to work as a liaison between the Realtor community and these banks. They just DO NOT know what they're doing. Wonder no more why we're in the financial straits we're in. It's because of these banks and companies, unable to properly and efficiently process  the REO inventory.

Charlottesville Real Estate

The Wisconsin housing statistics are now in for August of 2012. Here is an excerpt from what the Wisconsin Realtors Association (WRA) had to say:

The home sale recovery began last summer, and sales have grown 20.7 percent year-to-date. “It’s great to see these sales so strong during the peak sales period in the state.”  said Renny Diedrich, chairman of the WRA board of directors. He noted that in a typical year, about a third of Wisconsin closings take place between June and August.

The median price rose at an annual pace of 2.9 percent in August 2012, and this continues the pattern of modest price appreciation statewide for each of the last six months. “It’s clear that in spite of slight upticks in the state unemployment rate over the last two months, the housing market continues to grow, and it’s growing at a brisk pace” said WRA President and CEO, Michael Theo.

Below are the number of Home Sales and Median House Prices for the state of Wisconsin, Rock County, and Dane County. These stats include Janesville and Madison. Feel free to contact me if you have any questions pertaining to these figures. As you probably have heard, home sales have been increasing substantially all year. Both Dane and Rock counties are showing marked improvements in the number of homes sold. Prices have bounced in Rock County, while in Dane County WI they appear to now be stabilizing.

If you would like some insight into how much your home is currently worth, I would be happy to provide you with a free comparative market analysis. This is a report that gives a close estimate to what your home might sell for in your current local Wisconsin real estate market. Has your home value fallen below what you currently owe? A short sale may be right for your situation. Visit the following page on Wisconsin Short Sales.

Number of Foreclosures Showing Signs of Decreasing

The number of foreclosures in July 2012 is 10% lower than the amount from July 2011. Finally, it looks like the real estate market is making solid improvement. In fact, July 2012 is the 22nd month, in a row, to show a decline in foreclosure activity when compared to the same period from the previous year.

Overall, there is a 20%+ decrease in the annual number of homes being taken over by banks. The trends are taking place in at least 38 states as well as Washington, D.C.

As a whole, the nation is seeing that one home out of 686 homes is either in foreclosure or on the verge of repossession.

In comparison, Wisconsin shows one home out of 701 is facing foreclosure. Coupled with the news from last month that housing prices are on a steady rise; it does seem that the real estate market is getting back on the right track.

What does this mean for Buyers and Sellers?

In order to see how this is a good thing for both buyers and sellers, we have to look at the big picture. Fewer homes facing foreclosure would indicate that people who were out of work, or working at below average wages for their skill set, are now finding better paying jobs. The better jobs obviously are resulting in more money, aiding these families to get current on their bills. This would indicate the overall job market is improving. A better job market means more potential buyers that can purchase a home. That is great news for people who are in a position to sell a home.

The same type of facts has an impact on people looking to buy a home. An improving job market is good for those people that were out of work, fresh out of college or working at a job that was enough to pay the bills while they searched for a better option. More employment translates to more income, leading to more savings and an improved ability to pay for a mortgage.

What remains to be seen is the impact these improvements will have on the lending industry. One of the main problems that led to the real estate crash is the loose requirements that were in place allowing almost anybody access to a home mortgage. It is doubtful that mortgage lenders will return to those kinds of practices. However, it is a good assumption that lending rules will ease a bit in the coming months to help borrowers take advantage of the unprecedented rates that we have experienced for the last 3 years.

Hello all. An update to LYK that after 14 months and about 50 email complaints, i finally received my $45 payment. I will NEVER work for this company again. More energy was wasted that it is worth. I hope that all of you get paid for your hard work. Talk to you again soon.

Made some changes to the charts to make it easier to see trends as well as changes in variation; change is definitely apparent.

List to sold ratios continue their long-term decline. Down in 2012 from 2011; down the last 3 months as we near the fourth quarter a time when, since 2007 (except 2009) they drop even further.  2012 has already seen the lowest list to sold ratios since the beginning of this project in 2007. If the 4^th quarter trend repeats expect even lower ratios and consequently lower inventory levels in the months to come in central Oregon.

Getting back on my variation soap box again, variation has drastically decreased as well, meaning our little Real Estate process here in Central Oregon is getting closer and closer to some semblance of predictability, at least for now anyway J

I completed the July Sales data but didn’t report it. If you have time, wander over to the website and check it out. July sales were pretty impressive.  I don’t usually get real excited about monthly reporting because they can be so see-saw; instead we have strong looking upward trend.

The table shows a strong 3^rd quarter for appreciation so far in average, median and price/ sq ft price measures.

For a more comprehensive understanding of our market see additional charts and tables covering inventory, sale and list prices etc.:

http://www.centralorproperty.com/Central,ORTrends.html

Also now on:

http://centralorhomesales.com/inventory.asp

 I have a Real Estate investment opportunity for which I need funding.

 This funding is for the purpose of Purchasing, Rehabbing, and Resale of a Single Family Residence w/ 2 Bedrooms 1 Bath and Living Area of 945sq. ft.

Here are the initial particulars and more information is available upon request and level of possibility for funding.

 Transaction Logistics and Structure:

The Seller has agreed to sell the property to me for $40,000.00 and will accept $29,500.00 at close, and, he agrees to take a “Hold and Wait” Second Mortgage for the balance of $10,500.00 at NO INTEREST and Balloon Payment at Re-sale, Close. I’ll pay off the Sellers 2ndwith funds from the Down Payment and Funds for Purchase I receive from a New Buyer; whom also, is right now, in the process of qualifying for VA Loan with sole intent of purchasing THIS HOUSE!

I’m working out the details now, to coordinate the timing, so that the New Buyer’s Loan does not fund before I finish the work. I do very much realize this house has to meet stringent quality and safety standards as the Loan will be a US Gov. backed Loan.

 Closing Instruments and Agents:

First American Title – Klamath Falls, OR 97601

404 Main Street – Klamath Falls, OR 97601

Phone: 541-884-5155

Fax 866-747-7595

Dawn Demarkee-Schmitt

·Non Broker Real Purchase and Sale Agreement

·Note and 2nd Mortgage

·HUD1

·Normal Disclosures and Releases

·Loan Application 1003 (Where applicable)

Encumbrances:

There is a 1st Mortgage of $20,600.00; Tax Arrears in the amount of $2,000.00.

Seller will pay off 1st Mortgage and Tax Arrears at close and convey a clear title.

Evaluations:

According to the Klamath County Tax Assessor the Subject Property RMV (Real Market Value) is $55,000.00 in “AS IS” condition and, while its in its “AS IS” condition, it needs about $18,000.00 in rehab, Paint, Floors; Fix-up Materials, New Metal Roof, extra Labor, Permits, Waste Containment and Haul etc. 

The “After Repaired Value” (ARV)   is $77,000.00

Funding:

1.$29,500.00 to purchase

2.$18,000.00 -Rehab and Repair all inclusive

3.$4,775.00 -Holding costs (Estimated for 9 months but more like six months)

4.$1,000.00 - Closing Costs, Title Insurance (Estimated)

5.Total $53,275.00 or 69% of ARV

I can offer and guarantee to pay a 12% interest with a minimum return of no less then six months.

For Accountabilty of Funds for Rehabb I don’t mind opening a separate Escrow account that provides payment upon submission of Purchase Order and Delivery of Goods Bill. I also need the sum of $1,500.00 Cash Out, at Close for recoup of start-up operating cash.

We've heard that the Fed announced it is initiating QE3 (Quantitative Easing, 3rd time around).  Below are two great explanations of what QE means to us as consumers. (The article from NPR was well-written around the time of QE2).  In effect, the Fed is printing money to push into the economy, and it's highly debatable as to whether it helps or hurts. ~Anthony

Quantitative Easing, Explained
NPR | October 7, 2010
It's one of the more impressive financial phrases out there — impressive for the distance between how boring it sounds and how dramatic it actually is.

Your questions: Quantitative Easing explained
ABC News | September 14, 2012
The US Federal Reserve has announced it will pump more money into the economy by using so-called "quantitative easing".  The move, designed to accelerate economic recovery, is perhaps the central bank's biggest action since its unprecedented intervention during the 2008 financial crisis.

Trulia: Buying a home is 45% cheaper than renting
HousingWire | September 13, 2012
It's more affordable to buy a home than to rent in the 100 largest metros in the nation. That's the case if you plan to stay in the home for seven years, which is the average time Americans traditionally live in a home before moving. (Is this close to true in our market? I've no idea, but would love to hear from anyone that knows. ~Anthony)

MBA Economist: First-time Homebuyer Pipeline in Growth Mode
HousingWire | September 11, 2012
The August jobs report showed a definite lull in the American economy, but recent home price and sales improvements are setting the stage for an even stronger housing market in 2013, according to Mike Fratantoni, vice president of research for the Mortgage Bankers Association.

7 Neighborhood Need-to-Knows for 21st Century Home Buyers
Trulia | September 11, 2012
The 21st century is in full effect. And that means a couple of things for savvy home buyers who are in the process of vetting prospective neighborhoods. Investigating neighborhood basics like school districts and such is no longer tricky or difficult: there are ample resources online giving detailed information about schools, scores and even parent reviews.

The Economics of Middle Age
Real Estate Today Blog | September 13, 2012
Economics can be a confusing subject, and as we age, the definitions seem to change! (No news here, this one was a just for fun bonus! ~Anthony)

Spike in Washington foreclosures among highest in nation
Q13 Fox News Online | Septembner 13, 2012
A spike in foreclosed Washington homes outpaced much of the rest of the United States in August, according to a new report by foreclosure data company RealtyTrac.

Backyard houses catch the eye of City Council
The Seattle Times | September 10, 2012
The Seattle City Council is considering a moratorium on small-lot houses — houses built in the backyards of other houses.

Yesterday I got a call from a client I will never forget. She said "I was able to modify my loan, I can keep my Blossom Valley house, and you were the only one who believed I could do this, so thank you." This made me so incredibly happy.

So what happened was this client and her then husband were pregnant with their first child and ready to buy a home together. They found their dream home in Blossom Valley with my help, purchased it in 2006 with 10% down. In 2007 they had enough appreciation to take out a 2nd loan which they did. In 2010 they had just had their second baby, the home was $250,000 under water, and they split up.

My client did not want to leave the house and try to find a home for herself, the two young children, and her 2 large dogs. She was determined to stay put, get her husband off title, and not disrupt her children any more than necessary. Her lawyer said short sell, her ex stopped helping to pay the mortgage, and her efforts to refinance went no where.

I encouraged her to keep trying and not move her children or her border collies from their dream home and lot.

After 2 years she got her principal reduced by 100K (thanks to First Horizon selling the loan to Nation Star who then was very co-operative in modifying her loan.) her ex signed a quick claim deed (don't know why, but he did), and she was able to pay off the second with savings, stock money, and cutting expenses.

So now she has her home, her kids are not disrupted, and with home prices appreciating she probably even has a good investment.

While I always like to help out on Blossom Valley short sales, in this case I am much happier that I did not have to.

If you have any questions about short sales in San Mateo or Santa Clara County please feel free to contact me.

Marcy Moyer

Keller Williams Realty

www.marcymoyer.com

marcy@marcymoyer.com

650-619-9285

D.R.E.  01191194

SHORT SALE INDUSTRY UPDATE: BOA Short Sale Relocation Assistance Program  Short Sale Relocation Assistance Program: Your clients could receive $5,000 to $30,000 in relocation assistance. Contact us if you need assistance with your short sales. Even if you have these started we can jump in an assist to get the process moving forward and you can get back in the filed and do what you do best. www.realtytms.com

2012 has been dubbed by some as ‘Year of the Short Sale’, with even more short sales expected to be completed than last year. However, are they really a smart move for investors or is investing in distressed property notes a better way to go?

There has been a lot of buzz in the last few weeks about mortgage institutions cutting down on the time it takes to process short sales. Fannie Mae and Freddie Mac have announced new guidelines requiring loan servicers to now make decisions on short sales within 30 to 60 days. While Bank of America has sliced its short sale processing time back to 20 days from 45 or much, much longer via their new, improved online platform.

However, while short sales may be a great deal for sellers and even offer the feeling of nice discounts for those buying new residences or investing in the odd property here and there, they do pose some issues for full-time or more active investors. Let’s take a look…

5 Reasons Distressed Property Notes are better than Short Sales

1. Short Sale Fraud

Banks angry at real estate investors profiting while they take a hit by reducing and writing off principal balance debt have engineered flipping houses which are short sales for profit into becoming ‘short sale fraud’. Whether you agree with it or not, the disclosures and affidavits now required for those involved in short sales pretty much makes it illegal to immediately turn them around for profit. Considering the number of tasks forces and regulators hunting down real estate fraudsters (when they’re not partying it up in Cartagena, Colombia or Las Vegas) it just isn’t worth the risk to even be accused of such a thing.

2. Buying Notes Eliminates Hassles

Buying distressed property notes gets rid of a lot of hassle that comes with acquiring short sales. Besides the bizarre and trying upfront paperwork and negotiations short sales can come with big property management headaches and even tougher problems for those buying into the new fantasy breed of REOs to rentals on offer.

3. Reducing Costs & Risks

Investing in distressed property notes means slicing out soaring costs associated with closings, financing and points and rehabbing. Then there are the huge liabilities that can come with these properties as a direct owner which can threaten your investments including personal injury.

4. Resales

Distressed property notes can actually be a lot easier to sell and cash out in any market. A little seasoning and you can pump up their value and if you like cash out just a portion of the payments while retaining the note.

5. Better Bargains

There are good deals to be found among short sales. They may not all be turning in profits but buying a home that was once sold for $6 million for just $2 million can feel great. However, commercial and construction distressed property notes currently often offer even better discounts and bargains as there may be even more of these being held by banks than single family residences. Plus there is far less competition for them.

Selling real estate in today's environment can be tough as we've all learned.  However, when you're selling a vacant property in today's world, the empty building can make things all the more complicated as highlighted in this article about a vacant home in Spokane Valley, WA.

So we asked our industry professional readers for their advice.  Whether it's residential real estate or commercial property, how does a seller minimize their risk?  We got some really terrific advice from the pros!

Attorney:
"As to the Spokane Valley vacancy the owner of the vacant property may have insurance coverage issues. Generally, a carrier will have tucked away a provision in a standard homeowners policy which limits coverage for long-term vacancies (60-90-120+ days). A carrier would cite the Spokane Valley property as Exhibit A as to why vacant properties are a greater risk. If you want coverage for a long-term vacancy then you have to get a special rider which of course can cost significantly more. Same applies to long-term vacant rental properties."

Real estate agent:
"Your question on how to protect a vacant home is a hard one to really answer, as vandalism comes in many different ways.  I believe the worst problem is water damage that can lead to a mold problem and structural problems.  The answer is have the water turned off.  Now buyers can have a home inspections done as a contingency to check the plumbing, so the Seller has to have the water back on.  This is a lot cheaper that fixing a mold problem."

Real estate agent:
Make sure the house isn’t completely empty if possible.  Get it staged so it doesn’t appear to people passing by that it is vacant.  Also, make sure the agent doesn’t mention on the listing that it is vacant and to Call the Listing Agent 1^st and for appointment.

Some noteworthy advice from a commercial agent and a document security professional:

Video of any kind is very helpful. Even a  game camera can assist and can be installed inexpensively. In this current housing market It is very evident when a home is vacant and stuck on the market. The neighbors should be alerted to the vacant home and be advised to keep an eye out for any activity and have phone # to call the owner.

And..

I am not sure about the residential aspect (I don’t do residential) but the stealing of copper wire and other metal items at even occupied commercial sites is really becoming a major problem.  At retail buildings they come where there are breakers on the exterior and turn off the breakers and then strip entire lines.  This leaves tenants completely down when they come to work, and is very expensive to get replaced on short notice.  It might be worthy of a future blog with ideas on security at that type of site.  (Editor's note, this is a good suggestion for a future blog.  Also, it may be worthwhile for any landlord to investigate paying to have the electrical panels moved inside if possible, or better secured from the outside. ~Anthony)

Original article can be found here -
 Spokane Valley Vacant Home Vandalism
The Spokesman-Review | September 5, 2012
Two teens were arrested Tuesday in a Spokane Valley vandalism case that caused an estimated $100,000 in damage.

Generally, every new home has a one-year warranty by the builder, covering defects in workmanship and materials. Builders also frequently purchase additional warranties to cover their liability and to use as marketing tools. These additional home warranties are very specific about what they cover and many warranty contracts stipulate that the original one-year warranty is replaced by the new home warranty. 

Over time, many hidden defects cause substantial damage to homes. Improper drainage can damage foundations leading to structural problems. Small exterior leaks can lead to mold, termites and other wood destroying organisms. Electrical problems often remain unnoticed until "ZAP!" and someone is injured or worse.

Your real problem is that these issues frequently take longer than one year to show up! By then, either your warranty has expired or you're into limited coverage and deductibles. You need to document issues and have repairs made during the warranty period!

Your warranty home inspection should be in months eight through ten of your first year. This allows the maximum time for issues to arise and time for builder repairs during the warranty period. If you have any questions about warranty inspections, just call Selman Home Inspection at 469-371-3228. No high pressure sales tactics, just honest, informative answers to your questions. All new construction and warranty home inspections are just $250. I'll be pleased to assist you.

Selman Home Inspection, 

"Accurate Investment Protection You Can Trust"