Showing posts with label california real estate. Show all posts
Showing posts with label california real estate. Show all posts
Monday, December 29, 2008
Tuesday, November 4, 2008
Documents Make Or Break The Deal... What You Need To Have To Be Successful
When writing an offer, whether it is to a bank or to an owner, you want to prove beyond the shadow of a doubt that you are the one buyer who will have NO problems closing escrow. This is a winning formula of documents that leaves nothing to the imagination of the seller:
1: The bank/broker prequalification letter- probobly the least important document in these times, because banks constantly renig and change thier lending requirements. But people still want to see it and always will.
2: The earnest money deposit check- generally 3% of the purchase price and generally the total amount of money that is put at risk from the buyer defaulting on his responsibilities per the purchase contract
3: Proof of funds- in the form of a checking account statement, with the account number blacked out
4: The first page of the buyer's credit report- with the social security number blacked out
5: The bio- an often neglected part of the offer, telling about the buyers financial position and incorporating emotional elements designed to appeal to the person making the selling decision. Be sure to use any and all information to paint THE most positive picture you can.
Follow this formula and half the battle is won. The other half being that you must have the best price and terms out of all the potential buyers. Does anyone else have something to add or more details on any of these points?
All That Glitters Is Not Gold
Short sales stink. That is what I tell my buyers who are looking to buy a property to move into immediately.
The MLS is flooded with homes for sale that are not truly for sale. The owners do not have the authority to sell the home, because they owe more on the home to the bank than they can sell the home for. This is what we call a short sale.
So when I carefully select the homes that are immediately available, such as traditional sales and foreclosures, I am always dissapointed that my clients do not listen. Instead of selecting from this ample pool of homes, they go to an online search source and select 20 short sales that they want to see. And they don't even know that these homes are short sales.
Almost all search tools you will find on the internet do not offer the ability to filter or even identify short sales from your search results. So get a Realtor you can trust to do this for you. Generally, the fact that a home is a short sale is concealed in the "private remarks" section that is only available to Realtors.
Nobody truly cares about getting this home to change hands but you.
This is where the frustration begins to set in. They find that they would love to own most of these homes that are short sales. And of course, who wouldn't?! When a property is priced far below market value, it seems very enticing. Until you write the offers. And then you wait. And wait. And wait. And call. And call. And call.
Even the "approved" short sales do not respond to your offers when they are written at full price! This is because the "seller" is not the seller at all, just someone who wants to save a small part of thier credit rating in order to save the disinterested and unorganized banks some money. And the listing agent doesn't care either, because they know the game. These short sales only serve to bring them more clients that usually do not end up with the short sale they initially sought to purchase. By the end of any short sale closing, the buyer and buyer's agent have spent waaaaay too much of thier own time securing a home to save the bank a buck.
So the bank, the listing agent, and the owner of the property all do not really care. Why should you? In my opinion, you should not.
Share some success stories with us, readers. I want to hear from those of you "lucky" enough to take advantage of these great "deals". And tell us, was it all worth it?
The MLS is flooded with homes for sale that are not truly for sale. The owners do not have the authority to sell the home, because they owe more on the home to the bank than they can sell the home for. This is what we call a short sale.
So when I carefully select the homes that are immediately available, such as traditional sales and foreclosures, I am always dissapointed that my clients do not listen. Instead of selecting from this ample pool of homes, they go to an online search source and select 20 short sales that they want to see. And they don't even know that these homes are short sales.
Almost all search tools you will find on the internet do not offer the ability to filter or even identify short sales from your search results. So get a Realtor you can trust to do this for you. Generally, the fact that a home is a short sale is concealed in the "private remarks" section that is only available to Realtors.
Nobody truly cares about getting this home to change hands but you.
This is where the frustration begins to set in. They find that they would love to own most of these homes that are short sales. And of course, who wouldn't?! When a property is priced far below market value, it seems very enticing. Until you write the offers. And then you wait. And wait. And wait. And call. And call. And call.
Even the "approved" short sales do not respond to your offers when they are written at full price! This is because the "seller" is not the seller at all, just someone who wants to save a small part of thier credit rating in order to save the disinterested and unorganized banks some money. And the listing agent doesn't care either, because they know the game. These short sales only serve to bring them more clients that usually do not end up with the short sale they initially sought to purchase. By the end of any short sale closing, the buyer and buyer's agent have spent waaaaay too much of thier own time securing a home to save the bank a buck.
So the bank, the listing agent, and the owner of the property all do not really care. Why should you? In my opinion, you should not.
Share some success stories with us, readers. I want to hear from those of you "lucky" enough to take advantage of these great "deals". And tell us, was it all worth it?
Tuesday, April 1, 2008
THE Reasons Why You Should Buy California Real Estate Now (Part 1)
There is so much press out there talking about how the housing market is going to hell in a hand basket (I’m looking at you, socalbubble). Phrases like, “California Real Estate Market Continues to Crash” are being thrown around.
Image via WikipediaThat doesn’t even make sense! If you are going to call a pricing downturn a “crash” or a “popped bubble”, it should happen suddenly, right? This is simply not the case with our gradual, predictable, and cyclical Real Estate pricing adjustment that we are experiencing here in Southern California .
As you can see, there is an obvious pattern here. There is a cluster of points at the end of 2004 all the way to the beginning of 2007. Each of these points is a piece of Real Estate that was purchased and now has a notice of default (NOD) filed against is by the lender on that property. All of these points represent a home that is behind on its payments to the bank. 
Image via WikipediaThat doesn’t even make sense! If you are going to call a pricing downturn a “crash” or a “popped bubble”, it should happen suddenly, right? This is simply not the case with our gradual, predictable, and cyclical Real Estate pricing adjustment that we are experiencing here in I contend that it is downright irresponsible for these authors and bloggers to try so hard to push this “bubble” concept on the public. The dotcom bubble was a true bubble, this is just predictability at its best. The people who stop listening to the nay sayers and start looking at the facts will profit.
Here is the stuff others aren’t telling you because it is fashionable to be negative and go along with the crowd. This is part 1 of a series without a defined ending. This is why you should be buying right now.
Foreclosures are an Opportunity, Not a Warning Sign
The vast majority of homes that are now facing foreclosure have been purchased within the last few years by speculative or uninformed buyers. This graph shows over 1,000 notices of default (NOD) that have been filed during the week of 10/22/2007 in Los Angeles County and the dates that the property was purchased.
These purchases were fueled by ever loosening lending standards from the banks and fraudulent activity from mortgage brokers.
Many borrowers got what I call “Frankenstein Loans”, because these loans should have never existed. Mortgage products like negative amortization loans allowed people who could not afford homes to buy despite the price barrier.
This is what allowed housing prices to extend past equilibrium into unsustainable territory. That was the time for you to sell, while money was cheap or free to borrow.
This is the situation that gives rise to opportunity. For those of us who didn’t ruin our credit, didn’t buy an overpriced piece of Real Estate, and saved up cash, now is the time for you to buy. Here is why:
This is a graph of those same notices of default (NOD), but now it displays the amount of money in default.
In fact, the vast majority of defaults are below $50,000! For this amount or less, you could gain ownership of one of these properties.
There is a vast body of writing on how to turn these “pre-foreclosures” to your advantage. I will not review them, but many of these systems work well. But be warned: Chasing foreclosures can be a full time job. Learning about them is another matter entirely.
For those of you who want to do the footwork, I will be posting free foreclosure and notice of default lists for download. Additionally, we will be releasing free software that will allow you to search and navigate through all of this information without downloading it.
Fortunately, there are many good deals available on foreclosed Real Estate available through traditionally marketed properties. These are called REOs. After a bank has foreclosed on a property, many times they will put that piece of Real Estate on the market with a Realtor. At least one lender I know reduces the price of the homes by 5% each month until it sells. It is a game of waiting and watching for the right deal.
Click Here to add your name to a list of interested buy-and-hold investors. Indicate where and how much you want to invest in your message.
Look for my next installment, part 2: The Real Estate Market Cycle and Irresistible Market Forces
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