Homes for Sale

This post is just to answer a few questions I get.....repeatedly.

Homes for Sale (3 types)
1. Traditional Owned
The actual owner of the home, a real person is selling the house! This home comes with a disclosure statement (SPDS) of facts pertaining to the home. Also will come with a statement from the insurance company disclosing any claims that have been on the property the last few years. Repairs may be made from the seller. Customary/usual time frames for closing. These are currently few and far between.

2. Bank Owned
Also known as an REO or Foreclosure. This home is now owned by an entity, a business, NOT a person. They have not lived in the home and will not guarantee anything regarding the property. Sold AS-IS. No disclosure forms from the previous owner.
As I tell my clients .......you have 2 choices, take it or leave it.

3. Short Sale
A short sale is also known as a pre-foreclosure. More debt is owed against the property than the property's value. In this situation, the creditor(s) may be willing to agree to allow the property to be sold for less than the loan amount and /or accept less than (or short) the amount owed as payment in full. These properties are still owned by real people under hardship situations and will have a SPDS or Seller Property Disclosure Statement available. The owners usually do not have the finances to repair anything on the property and the home will generally be sold AS-IS.
I've also heard this described as where the Bank holding the mortgage is "taking it in the shorts".
These homes can take weeks to months to close! Buyers on a specific time frame to purchase may want to choose a different alternative. While short sales are pretty new to the market, they CAN be successfully closed. My advice when purchasing is to make sure the listing agent understands the process and has a successful track record closing short sales.

Any Questions? Give me a call.

FYI from a favorite lender

LENDERS HATE FLIPPED PROPERTIES

Yes, it is true. Your client may have purchased the deal of the century at an auction last week, slapped a coat of paint on the walls, replaced a few appliances and is now ready to make a hefty profit. Except….FHA will not allow any contracts written until the 91st day after the last deed was recorded. And after that wait period, if the profit is deemed excessive, two appraisals will be required. And if you are thinking, that’s okay because conventional, VA or USDA do not have “seasoning requirements.” Think again, because that’s so 2008. All banks now have guidelines for seasoning. So be very careful when accepting an offer on your client’s flipped property or taking your buyer to view a home before asking if the lending bank is okay with “unseasoned” properties. And keep in mind, that awesome deal has now become the most recent comp for the appraisal.


Thanks Diane!

Frustration

Some of my clients are getting frustrated with the Arizona Real Estate Market. They keep hearing how low houses are priced and that it is a "Buyers Market". With the best of intentions they contact me trying to find a home for themselves. Maybe a first time home buyer trying to take advantage of the tax credits available, or maybe someone looking for a second home. We find the house of their choosing, write the offer and keep getting rejected because someone else out bid our offer. After the third or fourth time at this my Buyers are getting frustrated! Do I blame them? Nope!

This market is really THREE markets.
Traditional or "Owner" owned homes
Short sales or pre-foreclosures
and of course Bank Owned, or foreclosed homes.
All competing with each other at prices that are up to and even less than half of what they sold for 2/3 years ago. Is it fair that my lovely home has to compete with a foreclosed home a few doors down? No, but it is what it is. Sellers are crying because their equity has vanished and the price of their home competes with the one that has no kitchen!

True, some prices haven't been this low since the 80's! Nice single family homes can be found for 65k. With these low prices Buyers need to understand it isn't only the first time buyers looking for a deal........but also those looking for vacation or second homes as well as the investors. New listings hit the MLS (multiple listing service) and by the end of the day there are already multiple offers on a home. So then we go into a bidding war where the list agent sends back to the buyers agent a new game with a "highest and best" offer form.

Another frustrating round for my clients just to hear that someone beat them out. As annoying as this is, I must encourage them to stick with it. It is not just them going through this maze, it's everyone from the buyers to the sellers to the agents.

Hang on, let's all ride this roller coaster together.......eventually we will all succeed!

Cheers to my friend Renee

"Laughter through tears is the best emotion"

or something like that Dolly Parton said on the movie Steel Magnolias.

That is what happens to me when I remember a dear friend of mine who passed 2 weeks ago. Renee Bridgewater was only 49 years old when her frail body overcame her strong spirit. The days since have been difficult at best for her family I am sure, but for her friends we laugh and we smile as we cry.

I was fortunate enough to rekindle my friendship with the twosome Rena(her twin) and Renee were neighbors of ours when I was in high school. What an energetic and vibrant person she was. Always on the go, making people feel at ease and plain all around good friend.

As I was getting ready to go to her memorial service the tears began, but I had to chuckle to myself... If the three of us were sitting around with a glass of wine and discussing a memorial service and tears......we probably would all have a good laugh because we would talk about such silly things as "funeral proof" mascara, and toast to the person who would someday market it!