Do you know what a short sale is?

Doing a routine search for properties today I came across a very good 20 minute video on what is a short sales put on by Fannie Mae.  We have been working with short sales for over a year and have had the explanations given and have had the explanation received many many times already but this is short and good.  The slides are good and to the point the Audio is clear and crisp it is short enough for clients to get through without losing focus.

 As a client I would believe this more than an agent i just met because we all recognize the name Fannie Mae and with all the government oversight they are receiving they have to watch their P’s and Q’s.For agents I found a copy of the video floating around and copied the video to my phone in case I meet with a new client who does not know what a short sale is.  I will play the video and let them ask questions… 

If you need a copy or want a copy let me know

as long as we communicate

I have been working with a young couple looking for their first house for 8 month.  They have good jobs and great credit.  Why haven’t they been able to get a house?  We have seen over 70 properties, and I have previewed over 250, their price range and area has a lot of short sales.  Over this 8 month time span we have attempted to write 6 offers and finally one looks like it will close.

What I observed in the last few outings when we were looking at properties puzzled me, these two people would drive up to a house and without leaving the car tells me to go straight to the next property.  I tell them that it is nice and we should see it but they refuse.

After we wrote on this last property I asked why they chose to skip so many houses that were really really nice.  Their reply shock me, they pointed out that every time we attempted to write on a property which this (undisclosed) company listed and primarily by one listing agent we did not get a reply or any kind of communications.  When they called on a property without my assistance they were given info but as soon as they mentioned that they had a realtor all communications stopped.

They figured that of the 6 attempts 4 was written on a listing from this company and no success, the fifth they decided to back out and finally when we found a house they liked and when the listing agent replied to their agent everything looked good.

Lesson I learned when a client see a for sale sign with a company logo and decides its not the house for them, you have been a bad listing agent. 

Are you listed with an agent like this?

                

Any type of real estate investment can be profitable.  Like the stock market real estate is about timing.  Auctions have become more prevalent in recent months and many buyers have asked if auctions are better deals than properties listed on MLS.

This very excellent question simplifies three bigger topics.  First are you interested in just the purchase price, without concern of repair or remodeling costs? Next, have you done all the research you need to do with regards to the property, traditional sales have a contingency removal period.  Finally will you be satisfied in focusing on the least desirable properties on the market.      

Why would I say Auctions represent the least desirable properties on the market?  A house in distress will likely be listed with a realtor on MLS as a short sale.  If it does not sell because of price condition or convenience, the bank will foreclose and list it again.  Should the property not sell then it would go to auction.  An auctioned house will be a property that has failed to sell twice, listed with possibly two agents generally for a period of longer than 6 months, 180+ days.  Unless a deal is fantastic can you afford the risk?

Can you get a good deal at an auction, yes I think you can.  Are Acutions a good deal, if are looking for that needle in a haystack.  Just make sure to do your homework first and don’t get caught up in the excitement of the auction.

As for the timing issue mentioned at the beginning “Don’t wait to buy real estate, buy real estate and wait”