I know it is frustrating to show buyers dozens of homes, write dozens of offers, and not get into contract. Agents might even resort to submitting offers on homes their clients haven't seen or submit offers on multiple properties at the same time.
Last week I had an REO listing in which the bank responded to the first choice offer only to have the buyers agent say their clients were no longer interested (it was a quick response by the way). That was fine. However, when we responded to choice #2, #3, and #4 who said the same thing...it was a little suspicious. We finally got into contract on the 5th choice offer!
Probably common sense, but here are some tips for submitting offers on REOs.
1) If the property is listed way below market and your client wants the property, don't be afraid to submit an aggressive offer (other agents are).
2) It can be helpful to include any compelling information that might influence the asset manager (ie: buyers credit, assets, job history, familiarity with subject area...whatever you can think of).
3) Ask the listing agent to confirm receipt of the offer. If you don't get confirmation call or email. I have received offers that were so faint I couldn't read anything including the agent's name and phone number!
4) Include a lender letter with the loan officers name, phone number, and email address.
5) If your buyer is an FHA buyer, make sure and take the condition of the property into consideration. If the property is going to need repairs to pass FHA, the listing agent probably knows it. Address repair issues in the offer.
6) Assure the listing agent that this is the property your clients want. The goal of the listing agent is to find the best offer that is most likely to close escrow.
Wrinkles might be cute on dogs - but not so much on faces and certainly not in real estate transactions!!
It seems like it is taking longer to get the fully executed contract, longer to get the preliminary title report, longer to get the appraisal, longer to get responses to requests for repairs, longer for loan docs, longer for funding...at this rate i'll need a face lift between the time we go into contract and the close of escrow!!
Remember the days when you could actually close a transaction in 30 days or less? Certainly FHA transactions start at 45 days and if you throw in the fact that the transaction is an REO, well then you definitely have a sixty day escrow. Even a non-REO with conventional financing seems to be taking 45 days. Yes...sixty is the new thirty and if we can just accept that fact, it might eliminate some stress-induced furrows and gray hair. Now...where did I put that invitation to the Botox party?
Ok, i'm just going to lay it out there because most agents are either on the buyer or seller side of REO (real estate owned) aka bank owned property nowadays.
I've been to half a dozen forums, training, talks, etc., where REO agents sit up in front of a crowd telling everyone how many phone calls, emails, stupid questions, etc., they get each day. They talk about what the buyers agents can do to make things easier for the listing agents.
My colleagues and I have conferred and we would like to eleviate the incredible pressure on the REO listing agents who are struggling under the pressure by offering a few tips to make life easier.
First, start with putting the correct information in MLS. If the property has three bedrooms...here's a thought...don't list it as a five bedroom.
Second, there's this neat little contraption called a camera. It takes pictures inside as well as outside. It's not complicated, really.
Third, when you can't keep up with your business, hire competent (even friendly!) help. Novel concept, but it works.
Fourth, if you have an accepted offer and are just waiting for the bank to sign the documents (in other words, the property is pending in spirit)...make a note in the agent remarks in MLS. It only takes a minute and guess what...fewer offers, emails and phone calls to ignore. You can actually delegate this task.
Fourth, if the property isn't financeable (ie it was a marijuana grow house and the ceiling and walls are completely ripped out) make a note in MLS. Lots of buyers and their lenders care whether or not the home is habitable.
Fifth, when you receive an offer, acknowledge it. Again, if you need help...hire someone.
Sixth, if you can't handle the listings you have...just say no to additional assignments. Fiduciary duty doesn't evaporate just because your client is in a different time zone.
If the REO agents who aren't already doing these things would just start, the clouds will part, everyone will have thicker/shinier hair, we will all lose 10 pounds without effort, we will have time to take up a new hobby, world peace will ensue, and the world will be a happier place.
Ok, so I was out with a client a few days ago and we had half a dozen homes to look at. We saw two homes that had no pictures posted, both listing agents described the properties as "needs TLC." Now that's what I call helpful!!
We pulled up to the first property and it looked fine. Went inside and it was spotless. There was absolutely nothing to be done. Lots of great finishes. Pleasantly surprising!! Had we known the property was so nice we'd have looked at it on the first day.
Second home, also described as "needs TLC." I think the listing agent meant to say "needs DEMO". Reminiscent of Silence of the Lambs - no kidding. The doors and windows were boarded up. Once inside, there was no flooring, no toilets, vanities, light fixtures, huge holes in the ceiling. Access to the backyard wasn't possible as the doors were boarded up and the gate to the backyard was padlocked.
Funny thing is...they were priced the same.
I just have to laugh when I see "needs TLC." Again, code for "i've never seen the house." Lori :o)
The cost of gas, energy, food, and living expenses are going up. Here are some easy ways to conserve, recycle, re-use, and save!
COMFORTABLE-NOT COLD Limit air conditioning to the hottest days. (And raise your thermostat a few degrees to reduce both your energy bills and the risk of regional brownouts.) Fans use less energy and can effectively cool your home when paired with open windows for a nice cross-breeze. If you are in a place of business such as work, church, school and a sweater is required...consider mentioning it to someone in charge. It may not save you money immediately, but if everyone uses less energy - - demand (and price) of energy is reduced.
SKIP THE TRIP Postpone heading to the grocery store or other non-urgent trip. Many times you can consolidate. If it can't wait, biking is another good option. With a little organization, carpooling kid's activities is a huge time/gas saver. You hear the funniest things too!
USE OFF-PEAK ENERGY Run your dishwasher and do your laundry at night, when there's less demand and prices are lower. Make sure to optimize loads. Don't run anything half full.
DRYER ON VACATION Now that the weather's warm, it's the perfect time to limit the drain of the dryer by line-drying your clothes (outdoors if possible). Speaking of laundry, reduce laundry by not washing "clean clothes". Do your teenager's hoodies really need to be washed each wearing? Well...maybe...
WATER WISELY Conserve by watering your lawn in the early morning. If you have automatic sprinklers, turn them down (less frequency and shorter intervals). No need to water the gutter.
RECYCLE CLOTHES, TOYS, AND OTHER NON-PERISHABLES Share too-small clothes, bikes, toys, books, and all those other non-perishables with friends, family, and neighbors.
SKIP BAGS Use tote bags to save money and the environment. Make sure to put your tote bags in a place where you will use them. If you use coupons, consider putting your coupon holder in the tote as a reminder. Also, skip the plastic when buying fruit/veggies. Even at retail stores, skip the bags and other non-necessities. The retailer will appreciate reducing overhead too!
ENJOY THE BREEZE Running your air-conditioner in your vehicle guzzles fuel. Save gas by opening your windows and using air conditioning only when even a breeze isn't enough to cool you. (And consider carpooling to work to save even more gas.) Park your car in the shade when possible.
I hope these tips help you save money, energy, and contribute to a healthier environment.
My best friend and I used to compare notes when the API scores came out each year. I live in Davis and she lives in Rocklin. Although the schools up that direction have always been good, they don't touch Davis. The Davis Enterprise included a nice article, Davis test scores top in region in yesterday's paper (5/21/08). The article reported that all Davis schools had API scores above 800 on the API which puts them in the category of "high performing schools." Three of the elementary schools (Willett, Pioneer, and Patwin) had scores above 900.
As the chart below shows, there are other area high schools which are also performing quite well, but Davis schools have an advantage. They are in Davis. DAVIS ROCKS!! For more information on local school performance and other useful information, try www.greatschools.com.
Wondering what's going on with the Davis, CA real estate market? Every person I know asks how things are in the Davis Real Estate Market. Let me just share some numbers taken directly from Metrolist over the past few days.
I like to look at absorption rate (among other variables) of local markets. Absorption rate is the number of months it will take to absorb current inventory based on sales history. This can be done looking at previous sales for the last month, 6 months, 1 year, etc. Looking at each interval can give a person an idea of whether inventory is shrinking or growing.
In order to determine the absorption rate for a particular market such as "condos in Davis"...you
1) determine the number of condos that sold over the past year
2) divide by 12 to find the average number of condos that sell each month
3) divide the current inventory by that number
4) the resulting number is the absorption rate (or number of months it will take to absorb current inventory).
Some industry experts say less than five months of inventory is considered a buyers' market.
As you can see from the far right column in the table below, some categories have fairly limited inventory (namely >$500k single family homes). Some categories have a sizeable inventory (ie: >$800k). This could probably be attributed to the fact that homes in this price range are generally considered "move up" homes. Many homeowners are uncertain about whether or not now is a good time to buy and/or sell. Well, if you have an entry level home in Davis to sell, and are looking to purchase a move up home...it appears to be a pretty good market for you!
If you would like to know whether it is a good time to buy or sell in Davis, CA let me calculate statistics based on your specific scenario and give you my opinion. I welcome all real estate questions!
Davis
Active
Pending
Sold last 30 days
Sold last 6 mos
Sold last 12 mos
Avg Sales Per mo past 6 mo
Avg Sales per mo last 12 mo
Mos Inv based on last 12 mo
Mos Inv based on last 6 mos
Mos Inv based on last 30 days
Condo
29
12
5
15
43
2.5
3.58
8.09
11.6
5.8
Halfplex
15
5
1
5.00
34
0.83
2.83
5.29
18.00
15.00
SFH
129
56
20
29.00
342
4.83
28.50
4.53
26.69
6.45
SFH > $500k
29
24
10
38
117
6.33
9.75
2.97
4.58
2.90
SFH < $500k
96
33
9
56
224
9.33
18.67
5.14
10.29
10.67
SFH =/< $800k
37
8
2
13
50
2.17
4.17
8.88
17.08
18.50
I look forward to hearing from you...
Lori Prizmich, Realtor Keller Williams Realty The Lori Prizmich Team 530 845 3325 (cell) 530 231 2988 (fax) http://www.loriprizmichhomes.com/
So you've been standing around the water cooler and are hearing about these crazy deals in the beautiful community of Southport in West Sacramento.
Many brand new homes were sold during the boom years in southerly section of West Sacramento. Like other areas, there is a steady flow of bank owned homes to that market.
However, an interesting thing has happened in the past few months. The number of bank owned homes coming on the market is not keeping up with those going pending/sold.
For investors, the numbers are starting "to pencil" as they say. Practically new homes are selling for around $130 a square foot (for homes over 3000sf). In most cases, you can't build for that price let alone purchase a lot. Unfortunately, owner occupied buyers are now having to compete with investors (who have 20% down).
In most cases, well priced properties (beauties) are receiving multiple offers in the first day or two on the market. There are some that are just sitting because they are over-priced, filthy, trashed, and so on (beasts).
Sifting through the inventory was an endless process just a few months ago. Now, a realtor and client can see everything in an afternoon. Investors don't wait for the bottom, when they jump in the bottom comes to them.
If you are an owner occupied buyer, the best time to buy is when you are ready. If you are an investor, the time to buy is when it pencils (or makes financial sense). Whether you are a first time home buyer, veteran investor, or first time investor, I am happy to help. Please call or email with your questions...
Lori Prizmich, Realtor
Keller Williams Realty
530 845 3325 (direct)
lori.prizmich@pcgagents.com
www.LoriPrizmichHomes.com
I am pretty certain i'm not the only realtor out there this has happened to. You have a buyer client who is considering new home construction. You show them everything out there. They sit comfortably on the fence throughout the Fall and Winter as you remind them time is of the essence. The builder calls you weekly with the temptations mounting (incentives! upgrades! great inventory!).
So, I tell me client, "Mr Buyer, there are many more buyers in the Spring - -simple economics. Supply and demand you know.
Can you hear the voice of Charlie Brown's teacher? Bwah bwaaah, bwah, bwah bwah bwaaah.
Yes, come Spring in the new home industry...the incentives dry up, the builders' low interest rates disappear, the standing inventory vanishes, the required deposit quadruples, the build out time extends, they tack on lot premiums and the coupe de gras....they actually expect you to pay the price listed on the sales brochure!! The nerve!!
No matter how many times you say it, buyers are surprised when it happens! Is it just me?? Is there a better way to get this across?
Since the last Pioneer PTA meeting a few weeks ago, there has been much discussion on the school budget and what can, should, and will be done. Like any other budget we can either cut expenses, raise funds, or both. Budget cuts will have a lasting impact on my children (in first and sixth grades), our children, and your children.
What does this have to do with real estate in Davis? You don't have to think long about that one. A great number of Davis home owners purchase(d) here for the schools. If the school district deteriorates, it will impact home values. Of course, property values are insignificant compared to our children's education. I'm just saying, there is a relation between the quality of schools and the demand for property in Davis.
Many have profited over the years due to the quality of Davis schools. It isn't a long term solution, but in the interrim, the time is now for real estate professionals to give back to the school district. Donations could be in proportion (yes...you know who i'm talking about) to gain over these past years of tremendous growth. Now is the time to step up...
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
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