Four Steps to Getting the Foreclosure You Want
June 29th, 2009 categories: Real Estate News, Relocating
For many of us, the current housing market feels alot like, as Yogi Berra might say, “deja-vu all over again.” Five years ago, in the midst of the runaway market, many homes were on the market for less a day before we witnessed multiple offers presented to the seller. In hindsight, one might conclude that the market was “out of control.”
Today’s market landscape looks very similar. As they say, the players have changed, but the “song remains the same.” Much like then, the multitude of today’s bargains comes in the form of foreclosures.
While there’s been much in the press about the the ugly side of foreclosures (owners destroying the property, evictions, mold, etc), many foreclosures on the market are in excellent condition. Very much like the condition they were in when purchased at the height of the market in 2004-2005. Yet, many of these properties are purchased for 35-50 percent lower than what the current owner paid for them. And, in a few cases, even cheaper. But, how do you find these properties before the competition? How do you level the playing field with the investors that have been in the business for years?
While there is no full proof method for success, there are three important steps that dramatically improve your opportunity to successfully purchase foreclosed properties.
The Steps to Success
1. Identify the property the first day it’s listed for sale on the Multiple Listing Service (MLS).
Better yet, locate the property before its actually foreclosed on. many of these properties have been on the market prior to foreclosure, as a resale of short sale. If this doesn’t result in a sale, they’ll be ripe for the pickin’ at the lower foreclosed price point. But, once they’re on the market as a foreclosure, it is, as they say, “the early bird that gets the worm.”
Seeing it on day one of its listing on the MLS probably depends on getting that information from your Realtor. So, hopefully, your Realtor has set you up with a direct feed of Foreclosures. Most MLS programs now offer the Foreclosure option. If that’s the case, have your Realtor provide you an automated feed of new Foreclosures on a daily basis. While this step a must do if you expect to catch the listing on day one, the second step to successfully getting the foreclosure you want is equally important.
2. Strike quickly.
Submitting a contract as soon as possible is vital to getting your contract accepted. As I discuss with my buying clients, during the contract process, we take things one step at a time. Our goal is to “get to the next step.” By that, I mean that we take things one step at a time. In the case of a foreclosure, we want to have the first contract submitted. The sooner we submit a contract, the less opportunity we give competitors to do the same. Multiple contracts are NEVER in the interest of the buyer. The preparation or due diligence necessary to protect my buyer should have been done ahead of time. Things like looking at comparable properties, neighborhood issues, history of the property, unpaid liens, should be done prior to the offer. But, many of these can be examined prior to the submission of the contract. Another key to securing the property is the terms the buyer is asking for.
3. Make it Easy For the Seller
If your goal is to buy a foreclosure, many pruchasers are looking for as little work as possible. For REO, or bank owned properties that are on the market as foreclosures, the banks are looking for the same thing; as little pain as possible. Since the onset of the current mortgage meltdown, lenders have been inundated with defaults. They aren’t in the property management business, and want to rid themselves of their properties as quickly as they can.
Avoid contract contingencies. Routinely, foreclosed properties are sold “As Is“, which means the buyer will take the property just as it is, at the time of the offer. Should you include a Home Inspection contingency in your offer? That is certainly an option, but not one I’d recommend. Remember, your goal is to get to the next step and provide the bank with few, if any, reasons to say no. However, asking for a home inspection for informational purposes can serve the same purpose, if, at some point, after ratification you decide to withdraw from the contract. Additionally, often, in bank owned (REO) foreclosures, the necessary bank Addendums to the contract will often allow you to alter terms before the contract is “fully” ratified by both parties. While the interaction with various banks are routine and standardized, there are some often differences from bank to bank, with specific procedures. Many banks negotiate one contract at a time. And, you want your contract to be the one they’re considering. So, banks are keying in on the “net” cost to them, make sure your terms aren’t providing the bank a reason to say no to your offer.
4. Go with Experience.
Real estate transactions can be easy, or they can be…not so easy. Make sure you’ve enlisted the services of a professional real estate agent. What does that mean?
It begins with experience and competence. While those traits don’t necessarily go hand in hand, they’re often found in pairs. First, it helps to have someone on your side with foreclosure experience. While the transaction process is fairly straight forward, having an agent that knows how the process works, and knows how best to “work the process” is invaluable. They’re familiar with the necessary timing, procedures, and strategies to accomplish the objective. Further, as the process unfolds, they’ve worked foreclosures with banks previously, and understand what it takes to get you to closing. They have the experience and the competence to close the deal.
Good deals abound in today’s housing market for home buyers. Many of those deals come in the form of foreclosed homes. Capitalizing on the foreclosure opportunities involves a few simple steps. By taking the time to become aware of what’s available, and acting decisively with the aid of an experienced professional, you can maximize your chances for success. Of course, you first have to find something you want to buy. So, how hard is that?
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When You Know You’ve Made the “Big Time”
June 24th, 2009 categories: Entertainment, Relocating
Life is full of events that flag certain milestones in life. These milestones come in different forms, be they job related, academic, social, emotional, or another. Significant achievements often designate what we might call a ”rite of passage“. A sort of coming into our own. Well, many who found themselves in Fredericksburg this past weekend, may have witnessed just such an event in the life of our City. What was the big event? The opening of Fredericksburg’s very own Wegmans supermarket. But, as anyone whose been inside a Wegmans can tell you, it is anything but your father’s neighborhood grocery store.
While Wegmans has some seventy stores, they’re exclusively in the Northeastern U.S. Many shoppers outside of this area have never heard of Wegmans, much less stepped inside their doors. From its birthplace of Rochester, N.Y., it’s stores have spread to neighboring states New Jersey, Pennsylvania, Virginia, and Maryland. Store features include:
1. Cheese Shop
2. Bakery
3. Coffee bar
4. Patisserie
5. Sushi Station
6. Seafood Bar (with wine & beer by the glass)
7. Burrito and Panini bar
8. Crab Cake Counter
9. Thai & Indian Buffet
10. Kosher Deli
And much more, to include the two levels of seating for diners, who would rather sit down to enjoy their food. This includes the upstairs balcony, where those who enjoy the touch of fresh air feel right at home.
For those of us who avoided the 20,000 or so shoppers who were brave enough to wade into Wegman’s on opening day, there’s plenty left to be had. I happened to stop in earlier today, and the shelves have been fully re-stocked, while the aisles are still quite busy. Its something new, and not your ordinary “shopping” experience. As a matter of fact, the kids I witnessed in the store, seemed to be enjoying themselves as much as their parents.
Many have chosen to call Fredericksburg home because of its location, or history, or family in the area, or for its culture, or lifestyle reasons, among others. And, availability of shopping is an important consideration for many. With Wegmans moving into the neighborhood, we’re beginning to look a bit more like the “Big Time.” Now, if we can just convince Trader Joe’s that Fredericksburg is big enough for them too, we might be on to something!
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Cracking the Code
June 3rd, 2009 categories: Real Estate News, Relocating
“It is not only what we do, but also what we do not do, for which we are accountable.“
Moliere
Have you ever tried to improve something? Put something together? Assemble an item? Did you remember to follow the directions? Frequently, the directions are more of an afterthought instead of the “how to” they’re meant to be.
Unfortunately, failure is an important part of the road to success. But, if you’re like me, one of your first lessons in failure occurred while attempting to assemble that store bought item you or someone in the family had to have. Probably, in the rush to put together the item, directions were NOT followed. (Who needs them – right?)
Real estate practice carries with it a professional responsibility. Our responsibilities are outlined in the Code of Ethics which serves as the “golden thread” binding us together as a profession. They are our “directions.” In Betty Jasmund’s estimation, they’re more than that, they are a gift.
As the National Association of Realtors publication, Professionalism in Real Estate Practice specifies, the Code outlines our ethical obligations, based upon moral integrity and competent service to clients and customers, and dedication to the public interest and welfare. While the Code of Ethics provides an excellent set of rules or guidelines, what are they worth if they aren’t followed, or Code violations not reported? Or, in some cases, for various reasons, not punished?
Ms. Jasmund, the Fredericksburg Area Assocation of Realtors, Professional Standards Co-Chairman (and one of the wisest Realtors I know), recently authored an article, Why Filing a Complaint Against an Agent is Good for Everyone’s Business, on the value of the Code, in the Association’s latest quarterly publication, FAAR Side. While the entire commentary was instructive, perhaps Ms. Jasmund’s most significant words were:
“….in 1978 by William North, EVP and General Counsel of NAR, he stated that “the integrity of the Code and the value of its vision of the real estate industry depends utimately upon its use.” So if we don’t use it we diminish our ability to monitor our industry. By using the Code of Ethics we present a vision of our profession as it could be and should be.”
The Code of Ethics has had a few changes since its origination in 1913, but its purpose has been the same; to provide clear and conspicuous guidance to Realtors about how their profession should be conducted. Its 17 Articles leave no doubt as to the Do’s and Don’ts of how the profession should be practiced. But, if you were to ask a Realtor you met on the street to cite any one of the Articles, they probably couldn’t. They might be able to tell you the intent of the Code (well, at least, I hope they could), which to them would probably mean “to act in the best interest of the client, and to act with integrity”. But, other than that, who knows what they’d say.
That begs the question, “Should agents have better than a faint idea of what their operating guidelines are?” And, if so, how well should they know the Code? Well enough to know a Code violation if they witnessed one?
More importantly, as it relates to Ms. Jasmund’s point, how can we use the Code more effectively to police our profession? In our efforts to improve real estate practice by improving pre-licensing requirements and establishing a mentoring program, shouldn’t we begin by using the one valuable resource we already have, our Code of Ethics? It is our blanket of accountability. In Stephen Covey’s words, “Accountability breeds response-ability.” And that is exactly what we’re looking for.
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A Modest Proposal (On Improving the Practice of Real Estate)
May 18th, 2009 categories: Military Installations, Relocating
Previously, I focused on the #1 complaint voiced by Realtors about their profession of Real Estate, that being, other Realtors. After discussing the most prevalent complaints voiced by them, the article concluded by asking, “How do we improve the way we do business”? Since licensing requirements and/or standards vary by state, I’ll focus, specifically, on improving the standards of practice in Virginia.
If agents aren’t performing up to the standards our profession requires, how do we ensure they do? Is it a matter of better preparation? Better oversight? And, more importantly, how do we fundamentally change the way we do business? If the current standards used to conduct business aren’t getting the job done, if it isn’t compelling the type of professional behavior we want from our practitioners, what changes are needed?
Believe it or not, the National Association of Realtors(NAR) established professional standards for real estate practice nearly 100 years ago, outlined in their Realtor Code of Ethics. But, the Code is not law. For Realtors, the Code defines duties and obligations required in the public interest, which are beyond the capacity and power of the law to mandate, and supplements the law by requiring a higher sensitivity to the duties and obligations which it imposes. The Code’s “bottom line” rests upon putting the client’s interest first in the transaction.
While the Code of Ethics provides an excellent set of rules or guidelines, what are they worth if they aren’t followed, or Code violations not reported? Or, in some cases, for various reasons, not punished?
While few doubt the Code’s intent, many of my peers have voiced concerns over how well or closely those in our profession practice the Code. And, remember, adhering to to the Code is not optional. But, the Code is supposed to be a starting point. And, if the Code is a simply a beginning, what other preparation or training is needed to develop the standards we need to more effectively professionalize our business. Let me propose three steps:
1. Dramatically increase required Pre-licensing course work, to 60 college semester credit hours of only real estate coursework.
2. Mandatory, Standardized Mentoring Program for New Agents.
3. More Effective Use of Grievance and Professional Standards Processes.
Each of these recommendations will be examined in articles to follow. While these proposals aren’t new, the need for each hasn’t disappeared. Instead, according to anecdotal data, they’re needed now, more than ever.
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It’s More Than a Matter of Inches
September 13th, 2008 categories: Military Installations, Relocating
“Why aren’t there any room sizes on the listing?”
I can’t begin to count the number of times I’ve been asked this question by prospective home buyers, whether calling to inquire about a property for sale, or after I’ve handed them a copy of the property listing. Buyers are consumers. And, in most cases, consumers want to know exactly what they’re spending their cold hard cash on. Predictably, they’re interested in knowing whether or not the property suits their needs.
Home ownership is not a “one size fits all” business. For those of us who’ve picked up a “super-sized” dining or bedroom room suite during one of our duty tours abroad (does Germany ring a bell?), room size is a vital consideration when looking at a possible next home. Not being able to fit furniture in a particular room is not an option.
Many property listings include the total finished living space, but far fewer mention or provide the size of each of the rooms inside the property. For many prospective buyers, this is information that is sorely needed when making the decision on whether a home might be suitable for occupancy.
Room sizes are included in a property listing to provide buyers with an accurate picture of the property. These sizes are normally not included for one of three reasons:
1) The seller has requested they not be included.
2) The agent has chosen not to include them.
3) The listing agent has not taken the time or made the effort to determine what the room sizes are.
Do any of these reasons make sense? Of course, the seller has the right to do whatever they choose. However, the listing agent has no excuse for not including room sizes in the property listing. Their duty is to act in the best interest of their client.
Providing information about a property, through words, pictures, or virtual tours, is the primary means of informing the viewing/shopping, or buying public what you is being sold. In selling a home, less is not more. On the contrary, home buyers want more information. The Stafford & Fredericksburg areas aren’t lacking when it comes to informed consumers. As far as our clientele is concerned, the more informative and specific a listing agent is in describing a property in the Multiple Listing Service(MLS), the better.
Fortunately, if room sizes are not included, there are a couple of ways to determine what the actual room sizes are.
First, the property made have been listed previously. If so, the room sizes may be included in the previous listing. Secondly, the listing agent, or seller, may actually have a blueprint or house plan indicating room sizes. Finally, when all else fails, you can always take measures (literally) into your own hands. When viewing the house, pull out the tape measure and measure the room sizes yourself. Believe it or not, most homeowners won’t mind. Remember, they want the home to sell! If you measuring rooms will help accomplish that, then they’ll be more than happy to oblige.
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Moving By Air
August 16th, 2008 categories: Military Installations, Relocating
One of the challenges of the military life is the moves. For most military families, moving or a Permanent Change of Station (PCS), come every three to four years, and oftentimes even sooner. Combine the necessity of moving, and the traffic cogestion in Northern Virginia, and something has to give, right? Well, as you can see, it looks like someone has come up with a practical solution. Let’s move by air!
Although I doubt this is an actual move of what we call “household goods“, it certainly is a novel idea. When I saw this hot air balloon floating over the Massaponax area of Fredericksburg, it was a picture too good to pass up. But, as far as an alternative to the moving van, I doubt that Mayflower, or any other mover, is offering this as an alternative to their van fleet.
But, if you’re PCSing to the Stafford or Fredericksburg area, and you’ve had enough of those ground moves, give Mayflower a call. As they say, “you never know, unless you ask.”
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