BCI Properties, LLC - Blog

WA State forms and an issue ...

2008-03-04T10:45:13Z

Who is right? An Inspection addendum was responded to with a request for repairs by the buyer,

...but the seller's agent responded back with a counter that could not be read due to being faxed too many times. The seller's agent was called and emailed with a request for a clear copy by buyers agent, but Listing/sellers agent only replied by email as to what the counter response content was. Sellers agent was told that Buyer wanted it in writting. Selling agent says time has now expired after a week and the buyer is out of luck, ..., buyers agent says they gave constructive notice that they could not read the document and are waiting for a clear readable copy. Is the Inspection now waived with buyer not having the repairs done? -

Washington State - NWMLS Forms

Your thoughts are appreciated.
Donald J. Leske Sr. / Broker

Realtors - A Valuable resource or bottom feeders ...?"

2008-01-29T08:47:59Z

I guess you would have had to been in the business for a while to have seen all of the aspects, the good and the bad parts, of the real estate industry. Just about the time we think we have seen it all, along comes another bump or issue to deal with it seems. - In my humble opinion, the number one prevailing issue is not about us..., as licensed real estate agents, and how we are doing or what we like or dislike. All these things change in due time. - IMHO, its all about what "Value" we bring to the market place, what benefit are we to the Public?

Many agents are quitting the business now, with the drop in sales its getting harder to make a buck. Many old timer Realtors see this as a sad thing for those who intended well, worked hard but just could not make it. In some cases though, we smile and keep silent as those who were seen as bottom feeders or uncaring users were forced out. Many people found it all too easy to simply go to a couple months of training, some online, and get their license... then off they went to scrape the cream off the top so to speak without a clue as to what to really do. Some new agents suddenly found that they were dealing with millions of dollars of real estate and although they got to first base... second base had disappeared altogether. I cannot tell you how many times I had to help an agent fill out the right "basic" paperwork so that they could make a fat commission, or had to do the work on both ends of a transaction because the other agent was too busy running to grab another deal to attend properly to the current one. Some could not simply speak English well enough to be understood at times and we saw clients hurt in the process, deals lost and other agents having to pick up the pieces. When it takes a translator to help an agent understand or figure out forms.., that is really scary and sad. It happens.., but shouldn't.

As an Associate Broker, before I became a Broker with my own office, in a rather large office of 150 agents it sometimes seemed like a zoo, no kidding. We had year end parties with "Kool and the Gang" one year and "KC and the Sunshine Band" another year. Last year I heard that they had no party at all. Yes folks, the party is over! Now its time to go back to work and for those who forgot what it was all about, its all about providing a good service and value to the public. Our help is needed now more than ever before, but are we qualified?

Attorneys, Doctors and even Journeymen Electricians must go to several years of training to become fully licensed. Until then they are students, trainees or assistants. I believe that real estate agents, who deal with the equity, life savings and people's future should be required to go to more in depth training and have at least a BA or Masters Degree to practice real estate. - Until that time I am glad to see the bottom feeders and weak real estate agents go away, yet its sad to see some of the good agents go.

Many thousands of people are in foreclosure and up to two million more will follow this year alone it has been estimated. People need help right now and are facing a real crisis in their lives. Help just one person to avoid loosing their home and you will have done a good thing.

By the way, my Attorney has also offered some very good free advice and tips as well which can be seen as a link on my site. Lets make 2008 the year we helped someone find a better solution. I would be interested in public comments as well as agents.

Donald J. Leske II / Broker
www.realhomes.us

What about Short Sales? -

2008-01-06T08:30:09Z

Hello Ladies and Gents,

This is my first post to ActiveRain. Looks like a good forum to share thoughts! I have agents and brokers who ask about short sales, so it appears that not all agents have done these before. Here are my thoughts:

For Buyers: if you are trying to buy or sell a home without a Realtor or Licensed Real Estate Agent, its a tough market ... and especially "Buyers" often need expert assistance or help in putting together a "Logical Offer" to present in a Short Sale.., but also this would apply in almost all cases when a buyer wants to purchase any home or property in my humble opinion.

For Sellers: do you think that the person that ends up buying your home will be represented by a Real Estate Agent? Most often yes they will. ---- Why would a buyer not hire a Licensed Real Estate Agent? The seller, as you know, pays all the commissions so why would a buyer not get some expert help to make one of the biggest purchases of their life? Did you know that sellers have a 90% better chance of finding a qualified buyer if the sale is professionally marketed by a Licensed Agent? If you must do a short sale on your home, it may be better than a full foreclosure. - Sellers note; your lender can come back if they choose to charge you with any deficit or shortage later after the sale. Be aware that you may want to seek the council of a qualified Real Estate Attorney. Here is a letter from my Attorney that I will share with you in PDF format: www.realhomes.us/foreclosure.pdf - offering to help stop foreclosure. If you are not yet into the foreclosure process the short sale can still be done but you may need to ask an Attorney how to stop the lender from seeking debts that in arrears after a short sale. Some banks/lenders will negotiate away their rights to come back later, some will not.

What is it: A Short Sale is a term that is used when a Bank or Lender who holds the mortgage or Note on a property is... or is about to, go into Foreclosure and a buyer or Buyers Agent puts in an offer to the Lender that is less than the actual payoff. Thus "short" sale, short of amount due.

Here is a few things to consider:

1. The Bank/Lender will look at all offers when the owner is way behind in payments. The seller must in most all cases sign the Purchase and Sale Agreement naturally, prior to the Lender review.

2. A potential buyer should do some homework to find out: A. who the lender is...and B. what is owed both on a first or second note..., but also any other liens on the property. Do your research.

3. When putting together a Short Sale offer, find out by asking ahead of time if the Lender has any addenda that they will require that is not part of what your local market expects. Often they do.

4. When putting together an offer, you MUST find out if the seller/owner has any ownership "rights" by Law, either in the State of ownership or from the Lenders standpoint. They normally do have rights.

5. Most Short Sales do require the current owner of record to agree to and sign all Purchase and Sale documents, which is of course a lower offer than what is owed on the property. I can tell you this..., for the buyers who want to do it themselves, in the end they will be happy to have a "Buyers Agent" approach the owner or owners Agent with that low offer and the majority of non-licensed buyers do not know how to do it anyway. I mention this because there are people trying to work magic without an agent.

In almost all cases the seller/owner's Bank would not have looked at the offer without the buyer/seller being in "mutual agreement". At some point the property goes to Auction....be Aware of this. We have had Short Sales that seemed to be approved by the seller/owner and Bank go right up to closing and be stopped... and crazy as it seems, they can go to auction still EVEN AFTER you think you have a deal. I had one failure just two days before closing with all conditions final, we were just waiting to sign. Countrywide Home Loans told me that we must start over as they didn't have time to finish, no joke. We were all within contract time limits too. At Auction later the next month the house sold for $50,000 less. THAT is the sickest, weirdest thing I think I have ever seen. So just be forewarned.

6. Involved within the 32+ pages of just the initial P&S Agreement will be an assortment of Addenda that pertains to Legal requirements in our state, including but not limited to: Lead Disclosures, Septic & Health Dept O&M Letter, Inspection of property (most lenders on a Short Sale will not pay credits), finance addenda, several Optional Clause pages regarding size/terms etc.....and so on.

7. The Short Sale offering should include: A. The Purchase and Sale Agreement - B. The BPO Letter, "Brokers Price Opinion"...or two if possible. - C. A letter from a recognized Licensed Inspection company will help if there is damage and repairs needed, along with a contractors bid as to cost of such renovation. If done properly this can be a big factor in getting your price. Most Lenders will also require the following if this is a new account for their Loss Mitigation Department: D. A pre-approval letter for the buyer. - E. Hardship Letter from the seller - F. Financial Worksheet, DTI for the seller. - G. Listing Agreement. - H. They want a HUD-1 statement from buyers lender. --- note, there can be other stipulations too depending on the lender.

8. You need to be aware that there may be other people, Investors, Buyers Agents etc that could be putting in offers similar to yours.... do not be fooled. If you do not do this offer right, you will NOT get the deal. Have all your i's dotted and all your T's crossed.

Final analysis: There are a few other things that can and should be done to help the process, but in the end the one most prepared will get the deal.

Personally I do not like Short Sales. But I do them as it is part of our business. We are dealing with others grief and sadness, plus most buyers want to come in so LOW that other savvy buyers beat them out. IT IS A TON OF WORK and most Lenders will only pay a max of 2.5% SOC... for what results in at least double the work and a 95% chance of not getting the deal. THOSE are the real facts.

Be real, be smart ...get your facts straight and be aware that others may beat you out.
Best of Luck,
-Don