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About Me
- A Woman's Design
- Minnesota, United States
- I am a mother, wife, daughter and best friend who is passionate about women having a safe and memorable birth experience that they desire. As long as I can remember I have been at awe of what we are able to do as woman and hope to help other women tap into their inner strength. The blog posts on this website will be a combination of my opinion and research. I value your opinion and only ask that any comments be respectful and courteous.
Monday, November 10, 2008
4-Quad home in a prime location. Great for Investor or First Timers
Central A/C
Purchasing Bank Owned Homes
I have come across a lot of people with misconceptions about purchasing Bank-owned homes. Whether it is advice from the guy at the water cooler or the late night infomercial selling books and software to locating and buying foreclosed homes, it's made for some great buyer questions.
Banks are not your traditional seller- Unlike your traditional sellers who have many motivations for selling and who may have heart ties to the home that make for interesting and methodical negotiations, a bank mostly cares about their bottom line. The numbers. When it is all said and done, how much are they walking away with?
You can low ball if you like-If my buyer wants to make a very low offer even after I have presented all of the facts, CMA's etc about the home then I present it. But I do advice them that it may be rejected. A lot of buyers assume that banks are desperate and that they will take what they can get, so they offer extremely low ball offers that tend to be reject. I have seen bank-owned homes sit for months, I and know for a fact that there were several offers on the home. They have a time line and a bottom line that only they and the Listing Agent know about.
The offers aren't presented to a person first-The basic information is entered into a program (sales price, buyers financing, earnest money amount, closing date, contingencies, etc.) that REO Agents use and the program determines if the offer is worth sending over to the decision makers. You can probably understand why most use this method. They have a portfolio full of properties to sell and many offers being submitted. It's their way of streamlining and weeding out the weak offers from the strong (most likely to close and bring a better bottom line). Also, it may take anywhere from 2 days to 10 business days to get a final agreement.
Personal Property- They are trying to sell a home, not personal property. For every bank-owned property that I have dealt with they don't even want to see personal property in the Purchase Agreement. They do not know the condition of the stove or dishwasher, etc. and if for some reason they promised it to you in the offer and someone broke into the home and stole all of the appliances they would be responsible for replacing the items. I have seen banks say do not ask for property but if it is still there after closing you can have it.
All are SOLD AS-IS- It is what it is, no warranties. ALWAYS HAVE A HOME INSPECTION DONE!! You have to understand that the bank has probably never set foot into the home. All they have (usually) are pictures and the listing agents detailed reports. That means after closing you can't come back to them because the pipes burst as soon as frost hit, or there was mold behind the walls. In fact, in most of the required contracts from banks warn you that they are not responsible for anything after closing. If you want the house you have to sign the doc. (Read these carefully and have a lawyer look them over if you are unsure of what it means).
I am not trying to discourage you from pursuing bank-owned homes, it has been the majority of my business this year. We have had successful closings with banks, the majority of them have been a pleasure to work with. If you are in a market where the majority of choices are bank-owned then go after them. There are some great deals to be had. Just go in with your eyes open, realistic expectations and use a Realtor that you trust and who will take the time to point out all the blind spots.
Have you run across any stories dealing with bank owned properties? I would love to hear them, good or bad.
Banks are not your traditional seller- Unlike your traditional sellers who have many motivations for selling and who may have heart ties to the home that make for interesting and methodical negotiations, a bank mostly cares about their bottom line. The numbers. When it is all said and done, how much are they walking away with?
You can low ball if you like-If my buyer wants to make a very low offer even after I have presented all of the facts, CMA's etc about the home then I present it. But I do advice them that it may be rejected. A lot of buyers assume that banks are desperate and that they will take what they can get, so they offer extremely low ball offers that tend to be reject. I have seen bank-owned homes sit for months, I and know for a fact that there were several offers on the home. They have a time line and a bottom line that only they and the Listing Agent know about.
The offers aren't presented to a person first-The basic information is entered into a program (sales price, buyers financing, earnest money amount, closing date, contingencies, etc.) that REO Agents use and the program determines if the offer is worth sending over to the decision makers. You can probably understand why most use this method. They have a portfolio full of properties to sell and many offers being submitted. It's their way of streamlining and weeding out the weak offers from the strong (most likely to close and bring a better bottom line). Also, it may take anywhere from 2 days to 10 business days to get a final agreement.
Personal Property- They are trying to sell a home, not personal property. For every bank-owned property that I have dealt with they don't even want to see personal property in the Purchase Agreement. They do not know the condition of the stove or dishwasher, etc. and if for some reason they promised it to you in the offer and someone broke into the home and stole all of the appliances they would be responsible for replacing the items. I have seen banks say do not ask for property but if it is still there after closing you can have it.
All are SOLD AS-IS- It is what it is, no warranties. ALWAYS HAVE A HOME INSPECTION DONE!! You have to understand that the bank has probably never set foot into the home. All they have (usually) are pictures and the listing agents detailed reports. That means after closing you can't come back to them because the pipes burst as soon as frost hit, or there was mold behind the walls. In fact, in most of the required contracts from banks warn you that they are not responsible for anything after closing. If you want the house you have to sign the doc. (Read these carefully and have a lawyer look them over if you are unsure of what it means).
I am not trying to discourage you from pursuing bank-owned homes, it has been the majority of my business this year. We have had successful closings with banks, the majority of them have been a pleasure to work with. If you are in a market where the majority of choices are bank-owned then go after them. There are some great deals to be had. Just go in with your eyes open, realistic expectations and use a Realtor that you trust and who will take the time to point out all the blind spots.
Have you run across any stories dealing with bank owned properties? I would love to hear them, good or bad.
Home Ownership and the Single Person
"I should wait to buy a home until I am married." A common misconception when it comes to homeownership. Usually the real concerns are, "Can I afford a home with one income?" and/or "What if my future spouse doesn't like the home I choose?"
If marriage is not in your future, then the issue may be financially. If you can afford to pay rent, you usually can afford to pay for a home. Don't count yourself out before you have even started. The first step is to decide that homeownership is for you. Second, find a great Realtor who can walk you through the process. You shouldn't have to worry about going at it alone when you have someone working on your side that you trust, someone who will put your needs and concerns before their commission check.
If and when your special someone comes along and you need to sell your home at least you will have built some equity up in the home that you can transfer over to your next purchase together. Or maybe they will have a home that you will move into. Then, your options are to: sell your home, pay off some bills, invest it, rent out your home as an investment property. There are so many options. Don't put your life on hold because of the "what if's". There is nothing more attractive than a person living life to the fullest as opposed to someone waiting on the sidelines for life to happen.
Did you know that 38% of first-time home buyers are single? (National Association of Realtors). No matter what category you may find yourself in there is never a bad time to buy a home as long as your purchase is a wise one. Start building equity now, and get in the game. I have learned from experience that you can't control everything in life, and it's that truth that can leave one feeling afraid and unsure about the future, which results in a stagnant life. When we control the things we can we feel a sense of taking ownership for our lives. And that is always a smart move!
If marriage is not in your future, then the issue may be financially. If you can afford to pay rent, you usually can afford to pay for a home. Don't count yourself out before you have even started. The first step is to decide that homeownership is for you. Second, find a great Realtor who can walk you through the process. You shouldn't have to worry about going at it alone when you have someone working on your side that you trust, someone who will put your needs and concerns before their commission check.
If and when your special someone comes along and you need to sell your home at least you will have built some equity up in the home that you can transfer over to your next purchase together. Or maybe they will have a home that you will move into. Then, your options are to: sell your home, pay off some bills, invest it, rent out your home as an investment property. There are so many options. Don't put your life on hold because of the "what if's". There is nothing more attractive than a person living life to the fullest as opposed to someone waiting on the sidelines for life to happen.
Did you know that 38% of first-time home buyers are single? (National Association of Realtors). No matter what category you may find yourself in there is never a bad time to buy a home as long as your purchase is a wise one. Start building equity now, and get in the game. I have learned from experience that you can't control everything in life, and it's that truth that can leave one feeling afraid and unsure about the future, which results in a stagnant life. When we control the things we can we feel a sense of taking ownership for our lives. And that is always a smart move!
Need information on a specific neighborhood in a specific city in a specific state? You've come to the right place!
You can find great local Woodbury, Minnesota real estate information on Localism.com Natalia Hals is a proud member of the ActiveRain Real Estate Network, a free online community to help real estate professionals grow their business.
History of Woodbury, Minnesota
Woodbury was originally named Red Rock, but was renamed Woodbury after it was realized that another Red Rock existed in Minnesota.[1] When first settled in 1844, the land was mostly timber but was converted to farmland. The township government was organized in 1858, and the first town hall built in 1876.
The first suburban housing development began in 1955, and the city has seen an increasing level of metropolitan expansion as the farmland has given way to developments and shopping malls.
http://en.wikipedia.org/wiki/Woodbury,_Minnesota
The first suburban housing development began in 1955, and the city has seen an increasing level of metropolitan expansion as the farmland has given way to developments and shopping malls.
http://en.wikipedia.org/wiki/Woodbury,_Minnesota
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