Wow, every Real Estate office that I pass has a banner, marquee, or sign claiming the above. Just stop on in and pick it up. Since I deal with a large number of foreclosures as a listing agent, I thought I'd share a couple of thoughts.
I get calls every day for foreclosed listings that sold two to four weeks ago. They're definitely not being found online. Are offices not updating these lists or are consumers picking them up and letting them sit for weeks before they act? Hard to say, maybe some of both.
If you are interested in foreclosures, here's a few other thoughts. First, properties under $80,000 go very, very fast. If they're financeable, that is in good enough shape, they're absorbed quickly. In general, a lot of homes under $50,000 cannot be financed because they need too much work. Unless you are getting a rehab loan or a construction loan, you'll need to buy cash.
Are you handy? If you are, the above example is OK. If you're not, what good is buying a $20,000 house if you have to hire out all of the work to make it habitable? You might as well spend more on a home that can be financed and perhaps needs only re-decorating. Will you live there yourself or rent it out? Maybe it's a home for an older child. All are OK, but know your strengths and plan accordingly.
Of course, I am biased as a Real Estate Professional, but unless you have done a lot of buying and selling on your own, I strongly recommend that you work with an agent of your choice. They will help you refine your plan, get you listings that are appropriate and guide you through the buying process.
Remember, you have to know what you can handle in terms of repairs and expenses. If you're looking at the low end of the price range, you have to be prepared to act quickly or lose out to another buyer. I am amazed at the number of people buying under $50,000 homes for cash. Your best bet for a successful purchse is to work with a real estate agent that knows bank owned property procedures.
Wednesday, October 21, 2009
Tuesday, October 13, 2009
Investing in Foreclosed Properties and Homebuying Seminar
Preview Properties is presenting this session at 6pm on Wednesday, October 21st at the office, 130 W. Grand River, Brighton 48116. For reservations or more information, please contact Lisa Bohlen at 810-220-1505 or at lbohlen@previewproperties.com
Friday, October 09, 2009
Thoughts On Livingston County Real Estate
1. It's getting harder to get deals closed. I've had three deals this year where the buyer's bank folded within 5 days of closing. That means they have to get approved by another lender which is usually not a problem. But two of these three were also using the Dept of Agriculture's Rural Development Program. It's a great option for buyers that qualify based on income. 100% financing, no PMI - what a deal! But it's so popular in my area that the backlog to process has grown.
Banks usually give you a 45 day window to close on a foreclosed property. I've had to get extensions because of Rural Development processing delays. Most of the time that means a $100/day charge to the buyers and one deal fell apart because of that extra cost (20 days x $100/day=$2,000 more).
If you're near to closing, you're likely at 30 days already. If your lender shuts its doors (or the precursor of not taking any more mortgage applications) and you have to switch, it's a real challenge. You find out who the good loan reps are when you get into this kind of situation.
2. Prices are still dropping. Let's face it. Buyers rule. It doesn't matter what the appraisal says a house is worth. You have to price a home well enough to get a lot of buyers through it. When it gets to the right price you get a good offer, or even multiple offers. Some buyers are unrealistic in their (lowball) assessment of value, but those that are tired of looking at homes that need a ton of work will pay a higher price for an updated, well-maintained home. It may still not be at the full appraised value, but it's usually not unrealistically low. A well-motivated seller will make it happen in most cases.
3. Sales numbers are still pretty robust although the average and median prices are dipping due to the high number of foreclosed homes on the market. I've sold quite a few properties under $80,000 this year. many were not in horrible shape and were bought by parents for their young adult children. The plan is usually that the child will rent the home. If they decide to buy on their own in the future, the can work with the parent to buy that home or go out in search of a larger place on their own. The parent still has the property to generate rental income.
Banks usually give you a 45 day window to close on a foreclosed property. I've had to get extensions because of Rural Development processing delays. Most of the time that means a $100/day charge to the buyers and one deal fell apart because of that extra cost (20 days x $100/day=$2,000 more).
If you're near to closing, you're likely at 30 days already. If your lender shuts its doors (or the precursor of not taking any more mortgage applications) and you have to switch, it's a real challenge. You find out who the good loan reps are when you get into this kind of situation.
2. Prices are still dropping. Let's face it. Buyers rule. It doesn't matter what the appraisal says a house is worth. You have to price a home well enough to get a lot of buyers through it. When it gets to the right price you get a good offer, or even multiple offers. Some buyers are unrealistic in their (lowball) assessment of value, but those that are tired of looking at homes that need a ton of work will pay a higher price for an updated, well-maintained home. It may still not be at the full appraised value, but it's usually not unrealistically low. A well-motivated seller will make it happen in most cases.
3. Sales numbers are still pretty robust although the average and median prices are dipping due to the high number of foreclosed homes on the market. I've sold quite a few properties under $80,000 this year. many were not in horrible shape and were bought by parents for their young adult children. The plan is usually that the child will rent the home. If they decide to buy on their own in the future, the can work with the parent to buy that home or go out in search of a larger place on their own. The parent still has the property to generate rental income.
The Holidays Are Closing In!
After a summer of spring-like weather, here we are starting to feel like Fall. And looking like it, too. I couldn't help but to compare the sky one day last week with the appearance of winter snow clouds.
Quite striking. And of course, the fire bushes are turning bright red, maples transitioning into their fall palette and flocks of birds flying towards the south. Even the squirrels seem to have picked up their activity level lately. I hope that's not a harbinger of a hard winter. As much as I like all four seasons, last winter was a harsh kick in the behind after many years of being mild.
The season also brings to mind the coming holidays. My office, Preview Properties, always supports the Livingston County Association of Realtors (LCAR) spring food drive, Fill The Gazebo, for Gleaners Community Food Bank. Recently the barrels appeared again in the office and it reminded me that this is a time of year when people on a tight budget have extra bills. Heating and more electicity needs are usually at the top of the list and sometimes they don't have money to buy enough food.
At the local grocery this week, I noticed canned goods on sale for $0.39 each. I bought a case each of corn and green beans, and a couple of other sale items to drop off in the Gleaners collection bin. I urge you, too, to think about those struggling families and make a similar effort. It won't cost much, and your donation will go far.
If you're local to my area, feel free to drop off donations at our office at 130 W. Grand River, Brighton 48116, or at the Gleaners Community Food Bank on Sterling Drive, off Dorr Rd just south of Grand River Ave.
Quite striking. And of course, the fire bushes are turning bright red, maples transitioning into their fall palette and flocks of birds flying towards the south. Even the squirrels seem to have picked up their activity level lately. I hope that's not a harbinger of a hard winter. As much as I like all four seasons, last winter was a harsh kick in the behind after many years of being mild.
The season also brings to mind the coming holidays. My office, Preview Properties, always supports the Livingston County Association of Realtors (LCAR) spring food drive, Fill The Gazebo, for Gleaners Community Food Bank. Recently the barrels appeared again in the office and it reminded me that this is a time of year when people on a tight budget have extra bills. Heating and more electicity needs are usually at the top of the list and sometimes they don't have money to buy enough food.
At the local grocery this week, I noticed canned goods on sale for $0.39 each. I bought a case each of corn and green beans, and a couple of other sale items to drop off in the Gleaners collection bin. I urge you, too, to think about those struggling families and make a similar effort. It won't cost much, and your donation will go far.
If you're local to my area, feel free to drop off donations at our office at 130 W. Grand River, Brighton 48116, or at the Gleaners Community Food Bank on Sterling Drive, off Dorr Rd just south of Grand River Ave.
Thursday, July 30, 2009
Great Deals
Money is tight for a lot of folks. Here are a few great deals that
I've found in the Livingston County area, which mayhelp you stretch
your dollars.(note:prices below are correct at the time of this blog posting-check
for current prices before driving to them.)
Hair cuts/hair care.Brighton School of Cosmetology offers $6 basic hair cuts. Some fancy ladies treatments may be a bit more but are far cheaper than the local styling salon. They also do manicures and pedicures. Students are doing the work under the suprvision of their instructors. Disclaimer: What's left of my hair is definitely 'low maintenance'. I do know other guys that have more challenging styles who think the service and value are definitely here. It's worth a look. Walk-ins only,approximate hours are 10am-3:30 pm. School is closed on weekends, Holidays and days when Brighton District Schools are closed. 10543 Citation Drive, behind the Kensington Ice House, off Grand River just
east of US-23.
Golf.It's hard to beat these two for a driving range. Oak Valley
Entertainment at 10910 Whitmore Lake Rd, Brighton 48116 (just
north of M-36), has $9 large buckets (90 balls). They use higher end
balls which are washed after being retrieved. Tuesdays between 11 am
and 2:30 pm the buckets are half price! Pro shop, instruction, other
promos - see their web site.
Chemung Hills Golf
Course has $6 large buckets and $3 small buckets all of the time.
What a great value! They have Junior Golf lessons some mornings from
9-11am, so the range may be closed at those times - call ahead. Also a
pretty good rate for 9 holes of golf on weekdays, just $15 with a
cart.
Faulkwood Shores Golf
Club has a very nice course and great prices, too. 9 holes
walking is just $12 and they have specials that are even better.
Example - July 2009 9 holes walking price is just $5!!
Movies.MJR" Theatres
Brighton have some great reduced rates. Fri-Sun before noon,
tickets are just $4. Try the $4.50 Twilight shows (4-6pm) if you
can't get there before noon.
Building Supplies/Furnishings.Habitat For Humanity, 7198 Grand River Ave, Brighton
48114,has a home center where they sell surplus building and hardware
items for very affordable prices. Some furniture is also in the
showroom. Tile, wallboard, light fixtures, cabinets, appliances - you
name it. If your budget is tight and you have a remodeling project
planned, it's worth a look. Hours are 9-5 M-F and 9-2 Saturday.
General Entertainment. Brighton Kiwanis have free Sunday evening concerts at the gazebo in downtown Brighton through August 30th. Bring your own chairs. Varied entertainment (musical), local restaurants are open. Enjoy!!!
I've found in the Livingston County area, which mayhelp you stretch
your dollars.(note:prices below are correct at the time of this blog posting-check
for current prices before driving to them.)
Hair cuts/hair care.Brighton School of Cosmetology offers $6 basic hair cuts. Some fancy ladies treatments may be a bit more but are far cheaper than the local styling salon. They also do manicures and pedicures. Students are doing the work under the suprvision of their instructors. Disclaimer: What's left of my hair is definitely 'low maintenance'. I do know other guys that have more challenging styles who think the service and value are definitely here. It's worth a look. Walk-ins only,approximate hours are 10am-3:30 pm. School is closed on weekends, Holidays and days when Brighton District Schools are closed. 10543 Citation Drive, behind the Kensington Ice House, off Grand River just
east of US-23.
Golf.It's hard to beat these two for a driving range. Oak Valley
Entertainment at 10910 Whitmore Lake Rd, Brighton 48116 (just
north of M-36), has $9 large buckets (90 balls). They use higher end
balls which are washed after being retrieved. Tuesdays between 11 am
and 2:30 pm the buckets are half price! Pro shop, instruction, other
promos - see their web site.
Chemung Hills Golf
Course has $6 large buckets and $3 small buckets all of the time.
What a great value! They have Junior Golf lessons some mornings from
9-11am, so the range may be closed at those times - call ahead. Also a
pretty good rate for 9 holes of golf on weekdays, just $15 with a
cart.
Faulkwood Shores Golf
Club has a very nice course and great prices, too. 9 holes
walking is just $12 and they have specials that are even better.
Example - July 2009 9 holes walking price is just $5!!
Movies.MJR" Theatres
Brighton have some great reduced rates. Fri-Sun before noon,
tickets are just $4. Try the $4.50 Twilight shows (4-6pm) if you
can't get there before noon.
Building Supplies/Furnishings.Habitat For Humanity, 7198 Grand River Ave, Brighton
48114,has a home center where they sell surplus building and hardware
items for very affordable prices. Some furniture is also in the
showroom. Tile, wallboard, light fixtures, cabinets, appliances - you
name it. If your budget is tight and you have a remodeling project
planned, it's worth a look. Hours are 9-5 M-F and 9-2 Saturday.
General Entertainment. Brighton Kiwanis have free Sunday evening concerts at the gazebo in downtown Brighton through August 30th. Bring your own chairs. Varied entertainment (musical), local restaurants are open. Enjoy!!!
Monday, June 29, 2009
Livingston County Summer
Plenty to do locally this summer! This weekend's Michigan Balloon Challenge had great weather. I heard people all around Brighton and Howell talking about either being there or planning to visit. Next up is Brighton's Independence Day Parade on the 4th, now being administered by the Sunrise Rotary Club. Many thanks to the Boy Scouts for handling this event for so many years.
A relatively new addition to the parade is the Hungry Duck Run, actually two runs - a 5K (3.1 mile) and a Half Marathon (13.1 miles). The Sunrise Rotary started this a couple of years ago as a fundraiser for Gleaner's Community Food Bank, and it's great to see it be successful. The name 'Hungry Duck' also fits in with the Rotary's duck race at the Brighton Millpond after the parade. Great addition to the Holiday's festivities.
Next up will be the Howell Melonfest, August 14th-16th.
A relatively new addition to the parade is the Hungry Duck Run, actually two runs - a 5K (3.1 mile) and a Half Marathon (13.1 miles). The Sunrise Rotary started this a couple of years ago as a fundraiser for Gleaner's Community Food Bank, and it's great to see it be successful. The name 'Hungry Duck' also fits in with the Rotary's duck race at the Brighton Millpond after the parade. Great addition to the Holiday's festivities.
Next up will be the Howell Melonfest, August 14th-16th.
Monday, February 23, 2009
Dealing With A Computer Failure
In July of 2007 I had to replace a ‘legacy’ laptop. Purchased new in 2001, it served me well. I had indications that it was flaking out and I backed up my data religiously. I didn’t expect another issue like that so soon. The new laptop was great and I was happy.
The laptop that replaced that first one started having issues, too. I found out that there was a recall on it, but the only recourse was to send the entire machine in. Service techs told me it would be “three or four days”, but I know better than that! There was no option for having parts shipped to a local repair shop - my laptop would have to go on the road.
Just then, it started working well again. I thought I had scared it into submission. But I purchased a Seagate FreeAgent Pro backup system just to be sure. It installed easily and did instant backups. If I created or saved a new file, or altered an old one, they were shipped to the backup drive instantly.
I’m so glad that I did that. I had an irreversible failure on the replacement laptop and I just can’t be without a computer for business purposes. So I went out and bought a new one. The retail outlet installed the Office 2007 software that came with the laptop as well as the Norton 360 anti-virus program, and they created the three recovery CD’s for me, too. If you’ve ever created these CD’s you know that it takes a really long time.
So I have a current and complete backup. I can at least see and answer email via my smart phone. Hey, this won’t be horrible, I thought.
I had to purchase Outlook 2007, but the local repair shop I use said that they would install Outlook and transfer my Outlook files for me and I would just have to configure the email settings. No big deal, I thought. While they were doing that, I figured I’d have them take all of my data and picture files over to the new machine, too.
Because of the enormous amount of files and pictures (hi res, of course) that took over a day and a half.
I got the machine back, configured Outlook and started ‘catching up’. Some emails were bouncing back, but not all. The error message indicated that I had a configuration error, but my checks didn’t catch it. Earthlink web support found it quickly and fixed it via ‘remote control’. You give them permission and they connect to your machine via the web and can poke around and change settings. Very cool and very fast.
Then, I discovered that much of my software wouldn’t re-install onto the new machine. The reason? The old system was Vista 32-bit, the new one had Vista 64-bit OS. Great. Even though there is a basic pdf writer on the system, I needed something a bit more robust, so I had to purchase PDF Creator. My Corel Paint Shop 2X (I still had the license key) wouldn’t take the key because it’s a different product (32 vs 64 bit versions). Great.
And I was having trouble finding some of my old software CD’s, too.
At least all of my web based systems worked and I can do about 85% of what I need to do immediately. The upshot is that my laptop failed about 6pm Tuesday night. I spent that evening messing around with it. I went out and got a new laptop Wednesday morning, but couldn’t pick it up until about 4:30 pm because of the setup/install. I went home to install some of what I could, catch up on email, and make an appointment with the local shop for the next (Thursday) morning.
They had the laptop for the Outlook install and data transfer until 7pm (closing time) Friday night. So I lost three full business days and still am not back to where I was with the software.
I also found out that my HP C4100 All-In-One printer/scanner/copier wouldn’t work with Vista 64. Great. Luckily the HP C4400 All-In-One that I had at my office was OK, so I just switched them.
And I thought that I was prepared. Sure, I could jump on a colleague’s machine for a quick venture into my web-based business systems, but it’s not the same when you’re used to working on your own timetable.
After this episode, I thought I’d share some tips for your computer readiness.
First, always, always, always have a good, complete and current backup. Spend the money to do this. If you can’t set it up yourself, pay somebody to do it for you. Make sure that it is working.
Second, don’t be afraid to burn old documents to a CD or DVD for long-term storage, or to move them to an auxiliary (external) drive. If you need to restore your data that will cut down on the time frame involved.
Third, have a central location in which you store your software CD’s, licenses, etc. If you need to setup a new machine you don’t need the distraction of looking for your software, too.
Fourth, when selecting the new machine, understand that there will be other expenses. You may need to buy new software (or at least newer versions). You may need to buy new hardware, like the printer I mentioned above.
Of course, you can try to ‘match’ the operating system. But I believe you have to stay current because technology changes so fast. It makes no sense to me to buy ‘old tech’. I will send in the broken laptop for warranty work and it will go to my wife upon its return, along with the HP C4100 series All-In-One unit. Now I need to get new software to synch with my smart phone and I’m back in business.
The laptop that replaced that first one started having issues, too. I found out that there was a recall on it, but the only recourse was to send the entire machine in. Service techs told me it would be “three or four days”, but I know better than that! There was no option for having parts shipped to a local repair shop - my laptop would have to go on the road.
Just then, it started working well again. I thought I had scared it into submission. But I purchased a Seagate FreeAgent Pro backup system just to be sure. It installed easily and did instant backups. If I created or saved a new file, or altered an old one, they were shipped to the backup drive instantly.
I’m so glad that I did that. I had an irreversible failure on the replacement laptop and I just can’t be without a computer for business purposes. So I went out and bought a new one. The retail outlet installed the Office 2007 software that came with the laptop as well as the Norton 360 anti-virus program, and they created the three recovery CD’s for me, too. If you’ve ever created these CD’s you know that it takes a really long time.
So I have a current and complete backup. I can at least see and answer email via my smart phone. Hey, this won’t be horrible, I thought.
I had to purchase Outlook 2007, but the local repair shop I use said that they would install Outlook and transfer my Outlook files for me and I would just have to configure the email settings. No big deal, I thought. While they were doing that, I figured I’d have them take all of my data and picture files over to the new machine, too.
Because of the enormous amount of files and pictures (hi res, of course) that took over a day and a half.
I got the machine back, configured Outlook and started ‘catching up’. Some emails were bouncing back, but not all. The error message indicated that I had a configuration error, but my checks didn’t catch it. Earthlink web support found it quickly and fixed it via ‘remote control’. You give them permission and they connect to your machine via the web and can poke around and change settings. Very cool and very fast.
Then, I discovered that much of my software wouldn’t re-install onto the new machine. The reason? The old system was Vista 32-bit, the new one had Vista 64-bit OS. Great. Even though there is a basic pdf writer on the system, I needed something a bit more robust, so I had to purchase PDF Creator. My Corel Paint Shop 2X (I still had the license key) wouldn’t take the key because it’s a different product (32 vs 64 bit versions). Great.
And I was having trouble finding some of my old software CD’s, too.
At least all of my web based systems worked and I can do about 85% of what I need to do immediately. The upshot is that my laptop failed about 6pm Tuesday night. I spent that evening messing around with it. I went out and got a new laptop Wednesday morning, but couldn’t pick it up until about 4:30 pm because of the setup/install. I went home to install some of what I could, catch up on email, and make an appointment with the local shop for the next (Thursday) morning.
They had the laptop for the Outlook install and data transfer until 7pm (closing time) Friday night. So I lost three full business days and still am not back to where I was with the software.
I also found out that my HP C4100 All-In-One printer/scanner/copier wouldn’t work with Vista 64. Great. Luckily the HP C4400 All-In-One that I had at my office was OK, so I just switched them.
And I thought that I was prepared. Sure, I could jump on a colleague’s machine for a quick venture into my web-based business systems, but it’s not the same when you’re used to working on your own timetable.
After this episode, I thought I’d share some tips for your computer readiness.
First, always, always, always have a good, complete and current backup. Spend the money to do this. If you can’t set it up yourself, pay somebody to do it for you. Make sure that it is working.
Second, don’t be afraid to burn old documents to a CD or DVD for long-term storage, or to move them to an auxiliary (external) drive. If you need to restore your data that will cut down on the time frame involved.
Third, have a central location in which you store your software CD’s, licenses, etc. If you need to setup a new machine you don’t need the distraction of looking for your software, too.
Fourth, when selecting the new machine, understand that there will be other expenses. You may need to buy new software (or at least newer versions). You may need to buy new hardware, like the printer I mentioned above.
Of course, you can try to ‘match’ the operating system. But I believe you have to stay current because technology changes so fast. It makes no sense to me to buy ‘old tech’. I will send in the broken laptop for warranty work and it will go to my wife upon its return, along with the HP C4100 series All-In-One unit. Now I need to get new software to synch with my smart phone and I’m back in business.
Tuesday, January 27, 2009
You’d Better Believe It’s A Tough Market – We Want Your Blood!
It’s that time again! Preview Properties conducts at least one community service function every month. Past beneficiaries have been Gleaner’s Food Bank, LACASA, The Connection House, The Salvation Army, Family Impact Center, Livingston Educational Service Association, Cell Phones For Soldiers, and of course, the Livingston County Chapter of the American Red Cross.
Please consider a blood donation. This Red Cross chapter provides 97% of all of the County’s blood needs, as well as their emergency services for local disasters and emergency messages for families with overseas servicemen and servicewomen. It’s an easy way to give back to your community.
Our blood drive will be held on Friday, February 13, 2009 from noon till 6pm. The office is located at 130 W. Grand River Ave, Brighton 48116. Parking available along side of the building on St. Paul Street or in our lot, accessed from St. Paul Street between Grand River and N East Street. For reservations, please call the Red Cross at 517-546-0326.
Please consider a blood donation. This Red Cross chapter provides 97% of all of the County’s blood needs, as well as their emergency services for local disasters and emergency messages for families with overseas servicemen and servicewomen. It’s an easy way to give back to your community.
Our blood drive will be held on Friday, February 13, 2009 from noon till 6pm. The office is located at 130 W. Grand River Ave, Brighton 48116. Parking available along side of the building on St. Paul Street or in our lot, accessed from St. Paul Street between Grand River and N East Street. For reservations, please call the Red Cross at 517-546-0326.
Saturday, January 24, 2009
Random Thoughts on Listing Foreclosure Homes
Sure, it's not all bad. But agents listing bank-owned homes work a lot harder on these transactions than you might think. We often have to get utilities on in our names, and pay for lawn and snow maintenance. Here's a few things that happened to me in the last week.
First. An agent called that a lockbox was 'frozen' at one of the condo listings I have. It just wouldn't open. Weird, I thought. Sure, there's no screen door and it's been snowing and really cold, but still. I grabbed the extra set of keys and went over. Hmm. No lockbox. And my keys don't work. What's up?
The Asset Manager for the bank didn't know, either. I called the property management company that the bank assigned, told them the story and they went out to check. They called back and said they couldn't get in either. Locks changed, new lockbox installed and access re-established, though. So I went over, grabbed the extra set of keys and found my old lockbox inside the door. I couldn't figure out what happened.
Then a call from the Condo Association. They were afraid the unit would 'freeze', so they changed the locks to get in and made sure it was winterized. Aagh! All of that for naught. They could have called me and I'd have given them the code to get in. I lost three showings in this little episode. But all is well now.
Second. A showing agent called to report that the door was found closed but unlocked on another condo listing I have, and that she tried to lock it when done, but couldn't get the lock to catch. Drive down there to find the door is out of plumb (bad hinge) and you have to really lift and pull to get the lock to catch. (I mean really, really lift and pull.) I got it to lock and had to make another trip with my tools to tighten the offending hinge.
Third. Agent calls after a showing a bank-owned property. It's a different kind of lockbox that the property management company is using. When the code was entered, the lockbox unlatched form the door. There's a reset lever in back and somehow when re-attaching it, she changed the code to an unknown 4 digit combination and couldn't get it to open to get the keys back in. We arranged a hiding spot for the keys, and I dashed into the office to get a new lock box, take it to the property and put the keys inside. Just when I was planning to sit down with a nice glass of wine and a good book. Oh, well.
Things I've found useful to carry around in my vehicle for foreclosures. Duct tape, clear strapping tape, disposable painters (paper) masks, a 5-cell flashlight and a battery powered lantern, miscellaneous sized pieces of wood to secure door walls or sliding windows if they don't lock, a canister of alcohol-based hand sanitizer, wet wipes and a couple of clean rags. And always carry a pair of work boots, too. Now I'll make sure that I have one or two extra lock boxes with me. And I guess I'll keep my cordless drill and bits in the car, as well. (I could have cut one of the trips out of number 2, above, if I had some tools handy.) In the movie Jaws, Chief Brody has a line that goes, "We're gonna need a bigger boat". If this keeps up I'm gonna need a bigger car.
Selling agents, when you're offered bonuses on foreclosure properties, I really am happy for you. I wish that the banks would understand that the listing agents deserve a little extra, too. We're listing agents, property managers, and in many cases we're acting as general contractors, too, since we have to manage bids, repairs, and re-inspections on some of these properties. It seems like more and more lately.
Oh, and next week I'll be managing the repair of a property that has a foot of water and ice in the basement. No lack of challenges there.
First. An agent called that a lockbox was 'frozen' at one of the condo listings I have. It just wouldn't open. Weird, I thought. Sure, there's no screen door and it's been snowing and really cold, but still. I grabbed the extra set of keys and went over. Hmm. No lockbox. And my keys don't work. What's up?
The Asset Manager for the bank didn't know, either. I called the property management company that the bank assigned, told them the story and they went out to check. They called back and said they couldn't get in either. Locks changed, new lockbox installed and access re-established, though. So I went over, grabbed the extra set of keys and found my old lockbox inside the door. I couldn't figure out what happened.
Then a call from the Condo Association. They were afraid the unit would 'freeze', so they changed the locks to get in and made sure it was winterized. Aagh! All of that for naught. They could have called me and I'd have given them the code to get in. I lost three showings in this little episode. But all is well now.
Second. A showing agent called to report that the door was found closed but unlocked on another condo listing I have, and that she tried to lock it when done, but couldn't get the lock to catch. Drive down there to find the door is out of plumb (bad hinge) and you have to really lift and pull to get the lock to catch. (I mean really, really lift and pull.) I got it to lock and had to make another trip with my tools to tighten the offending hinge.
Third. Agent calls after a showing a bank-owned property. It's a different kind of lockbox that the property management company is using. When the code was entered, the lockbox unlatched form the door. There's a reset lever in back and somehow when re-attaching it, she changed the code to an unknown 4 digit combination and couldn't get it to open to get the keys back in. We arranged a hiding spot for the keys, and I dashed into the office to get a new lock box, take it to the property and put the keys inside. Just when I was planning to sit down with a nice glass of wine and a good book. Oh, well.
Things I've found useful to carry around in my vehicle for foreclosures. Duct tape, clear strapping tape, disposable painters (paper) masks, a 5-cell flashlight and a battery powered lantern, miscellaneous sized pieces of wood to secure door walls or sliding windows if they don't lock, a canister of alcohol-based hand sanitizer, wet wipes and a couple of clean rags. And always carry a pair of work boots, too. Now I'll make sure that I have one or two extra lock boxes with me. And I guess I'll keep my cordless drill and bits in the car, as well. (I could have cut one of the trips out of number 2, above, if I had some tools handy.) In the movie Jaws, Chief Brody has a line that goes, "We're gonna need a bigger boat". If this keeps up I'm gonna need a bigger car.
Selling agents, when you're offered bonuses on foreclosure properties, I really am happy for you. I wish that the banks would understand that the listing agents deserve a little extra, too. We're listing agents, property managers, and in many cases we're acting as general contractors, too, since we have to manage bids, repairs, and re-inspections on some of these properties. It seems like more and more lately.
Oh, and next week I'll be managing the repair of a property that has a foot of water and ice in the basement. No lack of challenges there.
Friday, January 16, 2009
Affordable Homes and Financing Programs
In my market areas, homes are at the most affordable levels in a very
long time. Call it a market correction, a recession or whatever you
like, but homes are now in the best price ranges that I have seen.
Part of the equation is supply.
When I moved to Livingston County in 1988, the big wave of construction was just beginning. We had a marginally tough time finding a home that fit our needs and our budget. Almost immediately after moving in, I saw corn fields transformed into subdivisions, roads widened, traffic signals installed and more retail being developed. The recent wave of foreclosures has also added a lot of homes to the supply with very attractive pricing.
Today buyers can find something that they like without too much difficulty - from starter homes to condominiums to luxury homes.
If you're a first-time buyer or even a 'move-up' buyer, there are programs that can help you. The FHA loan program is very attractive as long as you have a steady source of income, have an employment history and a good record of paying bills.
A marginal down payment will be needed, but the interest rates on this type of loan are very good right now. While the downpayment assistance programs are gone, you can often get the sellers to pay your closing costs as part of the deal - even banks selling foreclosures are
agreeing to that. And you don't need a stellar credit rating, either.
Another option is the U.S. Department of Agriculture's Rural Home Development Program. It offers 100 percent financing but has certain income levels which you have to be below in order to qualify. It's for primary residences (occupied by you), and it's for non-urban areas. If you currently live in a central city or suburb, it's possible that your local lenders won't know about this program, although it has widespread exposure in my market areas.
If you can't meet the tighter lending requirements for a fixed rate mortgage, one of these two programs may be your avenue to home ownership. It's often difficult to figure out which is best for you, so finding a great lender with experience in both of these loan types can make the difference.
A quick internet search found this local lender who has one of the best explanations of the benefits of these type of loans. Check out http://www.44mortgage.com for an excellent primer on these loan types.
long time. Call it a market correction, a recession or whatever you
like, but homes are now in the best price ranges that I have seen.
Part of the equation is supply.
When I moved to Livingston County in 1988, the big wave of construction was just beginning. We had a marginally tough time finding a home that fit our needs and our budget. Almost immediately after moving in, I saw corn fields transformed into subdivisions, roads widened, traffic signals installed and more retail being developed. The recent wave of foreclosures has also added a lot of homes to the supply with very attractive pricing.
Today buyers can find something that they like without too much difficulty - from starter homes to condominiums to luxury homes.
If you're a first-time buyer or even a 'move-up' buyer, there are programs that can help you. The FHA loan program is very attractive as long as you have a steady source of income, have an employment history and a good record of paying bills.
A marginal down payment will be needed, but the interest rates on this type of loan are very good right now. While the downpayment assistance programs are gone, you can often get the sellers to pay your closing costs as part of the deal - even banks selling foreclosures are
agreeing to that. And you don't need a stellar credit rating, either.
Another option is the U.S. Department of Agriculture's Rural Home Development Program. It offers 100 percent financing but has certain income levels which you have to be below in order to qualify. It's for primary residences (occupied by you), and it's for non-urban areas. If you currently live in a central city or suburb, it's possible that your local lenders won't know about this program, although it has widespread exposure in my market areas.
If you can't meet the tighter lending requirements for a fixed rate mortgage, one of these two programs may be your avenue to home ownership. It's often difficult to figure out which is best for you, so finding a great lender with experience in both of these loan types can make the difference.
A quick internet search found this local lender who has one of the best explanations of the benefits of these type of loans. Check out http://www.44mortgage.com for an excellent primer on these loan types.
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