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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Posted by Pam Eikleberry on September 27, 2009 at 12:45pm
Well, it is a relaxing Sunday afternoon and, while I should be entering data in Quickbooks from this week's reimbursements, I find myself revamping my REO resume for submission.Every A.M. is looking for something different, I guess, but the hardest part about this resume is that it is always less about how well qualified I am for the job and more about how close in proximity I am to the job. Every website that asks for a portal asks for three main items: coverage areas, years experience, and references. The three least exciting things about our business models!References (historically so boring and space consuming that they are referred to on the end of the one page resume with a note like, "references upon request" or "references on following page") need to be up front and center. Here is the kicker--I feel AWFUL when I call my A.M.s and would rather not call unless a property has burnt down. Using them as references seems like torture. Many of my A.M.s carry 500+ assets and the last thing they need clogging up their work pipeline is a reference request from a competitor asking if they don't mind if I take some time from their assets to take on a couple more. Never mind that time is elastic, nobody wants to share.Years experience in REO seems like it should logically be replaced by number of REOs in the past 12 months. Experience selling REO inventory before the current federal and state guidelines were in place or before REOs were liquidated and managed in web based portals and platforms should be obsolete. Technology capabilities and energy (who hasn't been in the office submitting multiple offers until 3 am?) should be on that resume requirement list somewhere. It just seems that a stodgy Monday through Friday 8-5 shop might not be able to cut it in today's fast paced high tech environment.Coverage areas are necessary, I understand, but a comma dileniated list of zip codes is so unromantic at the top of a business resume--if anyone has found a better way to present that, I would love to hear about it.Well, back to the grind. For all of you who are revamping your resume to read, "Five Star Certified" after last weekend, congratulations to you and I hope you had a great time.
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Unfortunately I had another convention to attend a few days from the Five Star so I had to make a decision to skip this year and forward to upcoming REOMAC in Hollywood, Florida, and was wondering if we might be able to plan a "get together at this convention"? I also live at the Beach so I can assist.
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Yesterday I did something I'd never, ever, thought I'd do. And you know what? It was fun...until it started raining! I got hooped at, hollered at and honked at. (Yes, that's me in the sign outfit.)Four of us got together and decided to do a Tailgate Party Open House at a property on the Shenandoah River. Although it may have rained and we didn't have any visitors, we still had a good time!In this day and age of constant communication and the demands of this business you forget how important it is to have a good time and to interact with your fellow agents and service providers in real estate. I know I did!We are planning our next open house -- but I am NOT dressing up in the clown uniform for anyone!
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The $8000 tax credit is a nice perk for first-time homebuyers. In my opinion, new Buyers should look at it as a perk, not as an incentive:1) Qualify for a home based on solid income, a certain level of confidence in job security, and ability to repay for years to come.2) Find a nice property that you don’t have to sell for at least 5 years, better if you can keep it for 10 years or more, possibly as a rental later on.3) Don’t let the pending deadline for free money lure you into a dump! First of all, market swings can wipe out that $8000 in a flash, even if you are buying a $150,000 property. Second of all, a dump doesn’t need the market to help wipe out that $8000 of free money. A dump can do it all by itself. See my blog “Top 10 Ways to Know Your Buying A Dump.”In certain locations there is a shortage of inventory and a feeding frenzy among first-time Buyers trying to beat the clock. Meanwhile cash investors are snatching up the best properties causing first-timers to battle for scraps.Yes, the $8000 tax credit is a nice perk. If you buy for all the right reasons, the credit is gravy. But buying a dog pile to get $8000 today and risk your future just makes no sense. Some times renting makes more sense. (OK now you can officially declare me the worst real estate salesperson ever.)For all its encouragement and stimulus, the government doesn’t even want you to buy a dump. Last I heard, they have not announced Cash-for-Clunkers Homes, and you don’t want to be calling Marilyn Mock of the Foreclosure Angel Foundation in 2011.Let the professional investors deal with risk. You too can be a pro some day if you make the right moves today.
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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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Central Kentucky--Market Holding Up NIcelyThe media has tried everything to put a negative spin on our local market, but even so I have been as busy as ever. Buyers are looking forever though and more time is needed to cultivate relationships.Out-of-state buyers are flooding into Central Kentucky and searching for deals on farms and land. The 2010 Equestrian Games are bringing some of these buyers and they are permanently relocating from everywhere. This is the first time in history that the games have been held outside of Europe, which I believe is really a big deal. Kentucky is such a "horse friendly" state and tons of revenue is generated from thoroughbred racing to horse shows at local county fairs. Most of the state parks have trails for riding and you can take riding lessons almost anywhere now. There is a breeding incentive fund offered to horse breeders which redirects sales tax collected on stallion stud fees back to the horsmen who support Kentucky's signature industry. Kentucky just loves horses and of course UK basketball!Most of the out-of-state buyers have property or farms to sell elsewhere and there are a few I have been working with for over a year or more. I stay in touch with them no less than weekly, if only sending a short note to say hi and ask if there has been any activity on their property. Seems like most of them are coming from a very down market, such as Florida, Michigan, California and New Hampshire with their price ranges being above $500,000 to $2,000,000.People involved with horses have always fascinated me, they are a breed that for the most part are down-to-earth and love to stay busy. We have four horses, three being Quarter Horse Paints and one is an old Arabian. They are just "yard pets" and are not riden, but having them to take care of makes me feel warm and fuzzy. They wait at the gate in the mornings so they can get an apple or some sweet feed, but since they are so fat they can't run up the hill, their treats are limited. There is always a boss and ours is Bandi and she likes to keep the other three away from anyone that is going to feed or pet them. She is just plain "bossy".If you plan on visiting Kentucky or are just curious, you need to check out the Kentucky Tourism website. You can visit all the race track sites, find out about events and festivals, see some awesome horse pictures, download a visitors brochure and much more. Of course, if you do visit you are going to want to move here and I am a great tour guide and can find you the right home or farm! Visit my website www.melindaearlywine.com and even though I am in Kentucky and not Kansas I think you will like the spin it has. It is fairly new, so I still need to do some tweaking, but it is already getting some good activity.Everyone have a great day and come visit Kentucky soon!
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Posted by Carolyn Kruse on September 26, 2009 at 10:41am
National Association of Realtors Chief Economist Lawrence Yun said existing home sales will rise through the fourth quarter, but that the end of a federal tax credit that gives first-time homebuyers $8,000 will affect that pace if it expires in November. As per [FAR and Palm Beach Post]. I agree what is your opinion on the first-time homebuyers tax credit? I think they should leave it into play for another 6 - 12 months.
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In my area of Central Minnesota, every decent home that comes onthe market under 120K has multiple offers within 3 days. I have been training my first time homebuyers to be ready to jump within 1/2 a day if they expect to get in the game. Unfortunately, the last two bids we placed for one couple have both been outbid within a day! Let me explain decent...no stink, no holes, cabinets still in, carpet..(not necessarily clean), standards are definetly lower! We have offerred above listing on both..have been beat out with cash and higher conventional offers..If that shadow inventory is out there, someone better let it loose! I have one hr. break today, and am back out for more tonite...
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When the admnistration introduced regulations to stop the foreclosure bleeding that was affecting the health of our economy, the Making Home Affordable came to life. Under the Making Home Affordable the servicers that agreed participating will receive $1,000 up front and another $1,000 up to 3 years for every successful loan modification. On the borrowers side, they will receive a $1,000 per year up to 5 years that goes straight to their balance provided they are current. And the investor will receive $1,500 bonus while servicers will receive $500.The Making Home Affordable was amended on April, 2009 to address the short sale. Under the guidelines, servicers will receive $1,000 for a successful short sale or DIL (deed in lieu of foreclosure), borrowers are eligible up to $1,500 for relocation expenses and the Treasury will “share the cost of paying junior lien holders to release their claims, matching $1 for every $2 paid by the investors, up to a total contribution of $1,000 by Treasury”.Please note that while the modification side of the Making Affordable program will expire on June of 2010, the short sale side of it will expire on December of 2012. It seems that short sale will be in for a while and if that will impact the REO inventory is yet to be seen. What is your take?
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Posted by Eisrael Gomez on September 26, 2009 at 5:49am
Wow do we need this shadow inventory everyone has been blogging about. We currently have offers coming in well above asking price (10 sometimes 20%!) My buyers and investors are frustrated and want homes now! Especially first time buyers trying to take advantage of the First Time Buyer tax credit. Are you all seeing the same in your areas?
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Hi Everyone,Just to give you an update on South Florida Real Estate REO listings. On every deal that my clients have submitted for REO properties, we have had at least three or more offers on every deal. It has become a bidding war again, and every listing has sold above asking. price. Properties are moving!!!!
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Posted by Denise Stovall on September 26, 2009 at 4:14am
Is it a rumor or a fact? Short Sale transaction conditions have supported that lenders are stepping up to the plate and offering both their Delinquent Borrower/Homeowner and Realtors "Deals" to remendy a default/delinquent loan by a quick Short Sale transaction. Full borrower cooperation supported by experienced Real Estate service is the key to success. Incentives usually add up to dollars and cents for everyone involved; lender-borrower-realtor.Denise StovallNorthern CaliforniaSonoma County
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Hello All,I am looking for feedback from those who attended the Five Star Conference this year. The conference has grown larger each year. I know that REO agents look for ways to increase their business in these times when the listing volume is much lower. Contact must be made with those in a position to bring you on, and add you as a new vendor. New accounts must be sought out. I know there are accounts that we don't have, but would love to have. So I ask, did you feel that the trip to Fort Wort was worth the investment? Were you able to make the contacts you hoped, and see a return for the dollars spent? I know this is not an inexpensive trip. However Five Star is a quality organization, and makes a serious effort to bring Asset Managers, and reo agents together.Looking forward to hearing from you, and establishing a dialogue.Best,Dianne Langston
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Current MLS data shows 15 avaiable REO assets for sale, a slight increase over the previous week total of 13 assets. Current list prices range from $92,000 to $823,900 for all property types. Days on market for available properties is 62.Under Contract/Pending REO sales total 31 with last-list price ranges between $79,200 and $899,900. Average discounts between original list price and last-list price are not significant to note. This market area is exhibiting market stability in inventory and pricing.
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Current REO Listings total 58 assets, up from 47 assets, week over week (19% increase). Current Listed Prices range from $58,000 to $501,900 for all property types. Under Contract/Pending Listings total 102 with last-list prices ranging from $52,000 to $538,000. Generally, the property prices appear to be stabilized at both the low and higher-end. The increase in the number of assets avaialble, if it becomes a sustained trend, could weaken the stabilization and lead to lower prices.
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Latest MLS records show a slight inventory shift for available, bank-owned properties in the City of Alexandria, VA from 35 assets to 31 assets, week-over week. Current REO list prices range from $119,000 to $599,000 for all property types. Under Contract/Pending listings total 30 assets with last-listed prices ranging beween $84,100 to $525,000. This reflects a general observation that current list prices are higher by 29% (low end) and 12.5% (high end) than those under contract/pending. Contract/Pending listings showed a median price reduction of 10.3% from initial lisiting prices with average days on market of 29. Current active listings have an average days on market of 55.
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I know we are all busy will the current state of residential Reo's; just like we were 5 years ago when any and everybody jumped in the market to sell real estate. As the residential inventory is getting bottled necked due to all the shadow inventory of foreclosures. Who's gearing up for the next big wave. I see as predicted that commercial Reo's will be around for a long time; and I'm looking for your feedback on how you're preparing for the next Tsunami in real estate in your market..
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Are you blogging........why not?
Don't have time, don't know how or just don't see how it will help your business, well..........that is all about to change!
I have an incredible! INCREDIBLE! oppurtunity coming and it will only be offered on a beta basis to those who are active bloggers on this site. Once it's out of beta testing, it will then only be approved for those that are active on this site. My point is, I am using your blogs as your resume so, if you don't have a resume, you won't be given the opportunities that are coming.
You will have about 2 months or so to get active and stay active, don't let this pass you by!
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Let start off by telling you that before I decided to go to 5 Star, I was apprehensive about the conference because, I really didn't want to leave my business here in Nashville. Not to mention, the cost was going to be extreme when you calculate, $900.00 for the conference ticket, $350.00 for 3 night hotel stay....and that can vary depending on where you stay, along with at least $200.00 in air fare, $200.00 in rental car, $150.00 in food and drink as well as about 200.00 in entertainment (parties every night)....it adds up to about a $2000.00 trip!
However, I have to admit, in my opinion, it was worth it and, soon....each of my REOPro members are going to know why! I am not going to make any announcements in this blog but, you might want to keep an eye on REOPro because, it's about to get hot, hot, hot!
Now, back to 5 Star. Granted, 5 Star was crowded.....and that really is an understatement however, I do feel that 5 Star attempted to really control crowds by offering a mixtures of classes during the same time the expo hall was open. The nice thing, the facilities were adequate this year, may have been crowded but, I could always find water or coffee and never had to wait for a bathroom. I never noticed a bathroom line outside any womans facilities either.
It was an excelent networking event however, let's face it, the real business wasn't conducted at the conference...it was the parties afterwards and, if you didn't attend a single party after the conference.....you missed at least half the conference. In fact, all the exciting news I have to share, is coming directly from just the parties.
Overall, a good event. If I could be so bold to make a suggestion, I would suggest that 5 Star do what they can to attract more exhibitors and more participants for the lender open house.
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