the art of gettting a great deal in today's real estate market

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Information about the art of gettting a great deal in today's real estate market
Business-Finance

Published on August 25, 2010

Author: MyFavoriteAgent

Source: authorstream.com

The Art of Getting a Great Deal in Today’s Market : The Art of Getting a Great Deal in Today’s Market Tami L. Roberts MyFavoriteAgent.com LLC Our people : Our people TONYA MARIE GAIL ERIN * Brooks Conkle – Mobile County * Beverly Nelson Clark - Baldwin County * Charles Phillip (Chuck) Rose - Baldwin County Topics Covered : Topics Covered Shocking Real Estate Trends State of the Market in Baldwin County How to Know (for sure) it’s a Great Deal How to Make Offers That Can’t Be Refused What’s All the Buzz About? : What’s All the Buzz About? Fannie Mae Freddie Mac REO’s Bank Owned Government Owned HUD Houses Short Sales Pre-foreclosures Loan Modifications Auctions Estate Sales Court Ordered Sales Underwater Sellers Sheriff’s Sales It’s All Over the News : It’s All Over the News Slide 6: US Foreclosure Default Notices 3 Reasons Foreclosures Might Rise in 2010 : 3 Reasons Foreclosures Might Rise in 2010 People are still losing jobs Lenders are being forced to make trial loan modification permanent - or end them. The number of loans in default is at an all-time high. Let’s Talk Baldwin County : Let’s Talk Baldwin County How About The Prices? : How About The Prices? On the Home Front : On the Home Front Alabama Non-Judicial State : Alabama Non-Judicial State Lender hires attorney to send foreclosure date notice to homeowner who is usually at least 4 months behind. Law requires that notice published in paper 3 weeks, 2 weeks and 1 week prior to courthouse steps auction date. Attorney auctions home on courthouse steps in Bay Minette at fair market value. Alabama Rights of Redemption : Alabama Rights of Redemption Runs 1 year from Courthouse Auction date. Redemption price is Courthouse Steps price plus ALL repairs and improvements, insurance premiums and paid taxes PLUS 12%. Keep Receipts as Arbitrator or Judge may rule on final Redemption Price. Debtor or heirs or creditors may redeem. Courthouse Steps Auction Pitfalls : Courthouse Steps Auction Pitfalls In today’s market, the price you pay at an auction is usually higher than true market value Must pay with cash or cashier’s check. As is – no warranties or inspections Must be an expert title researcher. Bidding war could leave you out or force you to pay more than you should. No Clear Title & No Title Insurance. You may need to evict residents. Property could be trashed by angry owners Loss of cash, resources and risks. Fannie Mae & Freddie Mac : Fannie Mae & Freddie Mac Fannie Mae & Freddie Mac bought most of the lenders’ mortgages on the secondary market This means that most foreclosed homes are owned by Fannie Mae and Freddie Mac, and we have to negotiate with their attorneys and asset managers. Short Sales & Pre-Foreclosures : Short Sales & Pre-Foreclosures Short Sales- when a lender, through negotiations, agrees to accept less than what is owed on the home to satisfy the loan. Option for Underwater Sellers. Home and Seller must QUALIFY! Complicated and time consuming process. Is that the real price? No! : Is that the real price? No! “Short sale” has become a buzz word Buyers see the short sale list price and mistakenly believe they can obtain the home for that price or less; that is where negotiations start Buyers may think bank should be thrilled to have the property sold and out of trouble. Buyers think all Short Sales are great deals and once in awhile they are. Short Sale REALITY Check : Short Sale REALITY Check Only a SMALL Percentage of short sales close List price NOT realistic-Price set to get buyer’s attention NOT at price the bank will accept. Agent doesn’t know what bank will accept. The bank doesn’t have to respond on your timeline. Typically take 90-120 days to counter your offer. It doesn’t make sense that a bank should be thrilled and answer quickly and sell home cheaply! Bank is already facing a loss so they aren’t eager to let someone steal it when the next person may come in and offer more Four Myths About Foreclosures : Four Myths About Foreclosures The home is a good deal since it is a foreclosed home Buyer will save money by purchasing a foreclosed home vs. buying on the open market The home needs a lot of work Any Real Estate agent can process foreclosed home transactions Myth # 1: All Foreclosures are Great Deals : Myth # 1: All Foreclosures are Great Deals Definition of a foreclosed home- Bank takes ownership due to non-payment. Doesn’t mean the home is a good deal. The bank’s goal: Get the highest sales price possible in order to cover mortgage The list price could be worth more or less than market value You need knowledge in the particular market and perform market research to determine what the property is worth to you Myth # 2: Buying a Foreclosure will Save Me Money : Myth # 2: Buying a Foreclosure will Save Me Money There are many additional risks and potential expenses purchasing a foreclosed home vs. a non-distress sale home Financing a foreclosed home can be costly and time-consuming and many times can’t be completed Potential repair costs are unknown many times and will usually require cash out of pocket to fix Myth # 3: All Foreclosed homes need a lot of work : Myth # 3: All Foreclosed homes need a lot of work In the current market, approximately 5-10% of homes are in move-in condition 10-20% of homes need little work. Less than $5k 70-85% need work, and repair costs vary depending on the home Myth # 4: So get any Real Estate Agent, right? : Myth # 4: So get any Real Estate Agent, right? Well, if it were that easy, wouldn’t EVERY real estate agent be selling foreclosures? Most agents do NOT want to deal with foreclosures and short sales which means few have experience. Agency Disclosure : Agency Disclosure Buyer and Seller should each have their own agent Agent on the Yard Sign represents the Seller, not you! Both agents are paid out of the proceeds of the sale If you do not hire your own agent you will get a Transaction Broker. Finding the Great Deal : Finding the Great Deal We Locate Homes in nice neighborhoods We Preview homes to make sure the home fits client’s wants and needs. We perform extensive market research to determine value of home Looking at the big-ticket items in the home Is the Home a GREAT Value? : Is the Home a GREAT Value? 1 out of 15 homes is a Best Buy If we find 3 Best Buy homes, we have previewed 45 homes Time-consuming process These best buy homes reflect the best values in the current market with low fix-up costs How to Get The Great Deal? : How to Get The Great Deal? Most banks will not even consider an offer in first 7 days on market You must know WHEN to negotiate. There is a point when banks will start negotiating. #1 Item Considered When Reviewing Your Offer : #1 Item Considered When Reviewing Your Offer Your Ability to Close Fast With the Least Amount of Hassle for the Seller Make a Simple, Clean Offer : Make a Simple, Clean Offer 32.4% of Foreclosed home transactions fall apart before they close Lenders are: Getting burned on non-closing agreements Getting more discriminating when accepting purchase agreements Submitting the Offer : Submitting the Offer CASH IS KING!!!!! Cash Deals are better than finance deals Financing deals are possible, but must be structured properly What and How Much? : What and How Much? Low-ball offers will not get reviewed or considered by bank. Based on % of list price Higher $ earnest money deposits Bank will ALWAYS counteroffer If Financing…. : If Financing…. Strong Pre-approval letter Reputable Lender Longer closing Lender needs to have experience financing bank foreclosures $100 per day if closing date is missed To Inspect or Not? : To Inspect or Not? Buyer can walk through home and observe the home before making offer (usually with no utilities connected) Buyer can hire professional home inspector Buyer must arrange for utilities to be on for inspection and for some appraisals at buyers’ expense. You will need to hire a plumber to be on-site when the home is de-winterized. It’s common for water heater elements to be burnt out on winterized homes. Electric Water Gas Inspection contingency is usually 5 business days from date of accepted offer or Effective Date. Home Warranty : Home Warranty A Home Warranty covers most major items that break after you buy a home. If a major item breaks such as your hot water heater, you simply call the home warranty company and pay the service call fee of about $55. A good Home Warranty usually costs about $375 per year. Pitfalls for the Inexperienced buyer : Pitfalls for the Inexperienced buyer Banks can be difficult and unresponsive Contracts may be overwhelming Bank selects Title Co. even though you pay Utilities may not be on for inspections Cash takes precedent; no contingent offers Close on schedule or subject to $100/day fine Default on closing and lose deposit May be countered with “Highest & Best Offer” Did you know? : Did you know? The Process of buying a foreclosed home is completely different from a traditional home purchase. Prior to last 3 years, only a handful of real estate agents ever handled a foreclosed home. Baldwin County didn’t even have a foreclosure market prior to 2007. Currently there is a huge foreclosed home market and some real estate agents are advertising the market and saying they are Certified Distress Property Experts. However, many of these agents have ZERO experience with foreclosed homes Who Can Help You? : Who Can Help You? Do you see why your Real Estate Agent could easily be the #1 reason you will succeed or fail in getting a GREAT deal on a home in today’s market???? Real Estate Agents Must: : Real Estate Agents Must: Have experience with foreclosed home transactions Find the best deals in the local market Find the best quality homes Know When to make the offer Know How to make the offer Know how to negotiate – counteroffers – multiple offers Know how to handle home inspections Be able to close the purchase- $100 per day if they don’t. Tami literally wrote the book… : Tami literally wrote the book… You get a FREE copy of Tami’s book: Foreclosure Home Buying Secrets just for attending this class. MyFavoriteAgent.com LLC and the Distress Home Sales Market : MyFavoriteAgent.com LLC and the Distress Home Sales Market Over the past 3 years 95% of our sales have been all types of foreclosures including Fannie Mae, Freddie Mac, Bank-owned, HUD Homes and short sales. Our Closing Transaction Coordinator handles every detail from Pending to Closing so it all goes smoothly for you. Frank & Gail Hicks : Frank & Gail Hicks From Hueytown, AL Daily Foreclosure Report Subscriber Attended This Class in December 2009 VIP Buyer Client Found Great Deal in Gulf Shores Closed Feb 2010 Drussie & Monte Meier : Drussie & Monte Meier From Ardmore, Oklahoma Daily Foreclosure Report Subscribers Beach Vacation Home VIP Buyer Client Bought Without Seeing Home First Closed June 2010 Aldo and Sharon Alesii : Aldo and Sharon Alesii Investor Bought 2 Done4YouDeals Bought unseen VIP Buyer Client Positive Cash Flow Lives in California VIP Buyer Profile System : VIP Buyer Profile System Our unique, computerized Buyer Profiling System gives YOU priority access to the hottest bargains on the market today. We include bank foreclosures, government owned, recent price reductions of 10, 20, 30% or more, probate and estate, court ordered divorce and bankruptcy, pre-foreclosure and other sellers in trouble. Would this be useful to you? VIP Buyer Application : VIP Buyer Application Baldwin County’s ONLY Buyer Protection Plan : Baldwin County’s ONLY Buyer Protection Plan We are the only company in the area that guarantees that you will like your home or we will sell it for FREE. *program has rules and restrictions All We Ask in Return is Your Loyalty : All We Ask in Return is Your Loyalty One Referral Within The Next 30 Days The Next Step … : The Next Step … Making Your Home Buying Dreams Come True

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