REO's/Bank owned homes continue to be a larger part of the closed Redding ca transactions.We expect this to increase and not decrease in the coming 1-2 years.There are many more backlogged and currently in Foreclosure homes coming as the many Government Loan Modification guidelines have been less than effect for the majority of home owners.

We see close to 400 bank owned homes currently in Shasta County with approx 200 pending.

If you are searching for a bank owned home consider the many things you need to know to have a smooth transaction.Bank owned homes are not for those that are full of fear....nor for those that are not risk takers...and certainly not for those that have to have a "Guarantee" of this or that....there are none!

So why is everyone wound up about bank owned homes?? What's the buzz....why do they have multiple offers and the best ones go in days?? PRICE!!!  They average from 15-40% below "Normal" sale homes.....So what does that mean on a home that is priced at $250k as a normal sale from MR and MRS Jones? That same home as a bank owned home or Freddie or Fannie is probably going to be in the range of $209-$215k..... So there you have it....Bank owned homes for the most part a MUCH Better Deal.....plain and simple.....that's what people want in the market today....a VALUE.....

Consider checking out this post on tips to succeed when purchasing a bank owned home...

If you are curious what things are selling at or where the market here is a resource for you.

There are 396 Bank owned or GSE owned homes in Shasta County as of today May 9th 2011. With Inventory's of current bank owned homes on the Shasta MLS at 202 it's safe to say that we have more bank owned homes becoming available soon!

Total Shasta Assoc of Realtors homes today at 1270.

This time of the year we traditionally see more homes come onto the market.

Short sales and REO's (Bank owned homes) are becoming a bigger part of the closed transactions each month!

Seller's contemplating selling right now MUST price aggressively or they will not stand a chance in the current market!

Buyers are shopping deals right now more than ever and with the inventory fairly high on REO's and More coming the traditional sellers must move quickly and get their home sold!

Of the 217 homes sold last month 75 were CASH....the sales of properties to buyers payhing cash has gone UP!

Investors looking to get back into the market are waiting for the best deals and moving into the market again slowly realizing that things are once Again penciling out nicely!

When you are searching for an REO keep these things in mind.

#1. Almost ALL REO's are sold "AS-IS"....meaning that what you see is what you get.

#2. Banks and the GSE's (Freddie and Fannie) price their assets with all factors in mind....in other words coming in at $20k under list price is NOT going to work....many unsophisticated buyers try to discount the list price based on what the homes needs not realizing that the bank has already taken that into consideration when they priced the asset!

#3. Cash is king but keep in mind for the GSE properties there is an "Owner Occupied Only" period in the first 15 days.This means that owner occupants are given priority!

If you are curious about seeing what REO or bank owned homes are currently available feel free to do a search now.

If you have any questions on REO's feel free to contact me.

Regards,

Richard Goates

The term "As-Is" has been interpreted in many ways in real estate.If you talk to a real estate attorney they will tell you that there is no such thing....if you talk to a bank they will say "As-Is" means exactly what it says....what you see if what you get....have any and all inspections but be very clear that we are not doing work or reducing the price or anything else....

There are numerous agents in our market that take the meaning of "As-Is" as a negotiating tool....even though they know it is an "As-Is" sale they still try to get everything they can from the seller....some ask for repairs...some ask for the pest work to be done....do the banks do the requested items? Sometimes...but most the time not.

Different banks have different policies regarding this but most all Freddie Mac properties are sold "As-Is" and they will not do any work.The buyer has the option to move forward or cancel after inspections....AS-IS to Freddie Mac is not a negotiating tool.....

If you are dealing with a different entity....a bank like say chase or citi group etc they may do some repairs....I hear Wells Fargo almost always does repairs and is open to fixing things requested!

If you do get your request satisfied consider it a great thing and that it doesn't happen all the time...going into a transaction with the idea that "We will get them to fix our 20 items on the Home Inspection" is a sure fire recipe for a canceled escrow....any agent that tells you I can get them to fix what you want is coming from PURE EGO..... Ego is what kills pilots...kills surfers and will certainly kill a real estate dea if it gets out of hand.

What are the items that the banks might fix you ask? Health and Safety items are the most common....occasionally a roof or pest work etc but very few banks do Everything After Inspections....they price the REO's Sharp 80-90% of the time and that is the reason the REO's are outselling the regular homes in sales but about a 2 to 1 ratio or better!

If you have no expectations on getting your list fixed after inspections then you will be in a good place and not be disappointed....the folks that are the most disappointed are the ones that are told the bank should fix what they want or being misinformed and hearing that they alway fix what you want! Not true....

If you are thinking of purchasing a redding ca area reo make sure you select someone that deals with bank owned homes every day....Why? Sometimes the difference in knowing "Exactly" how to write the offer up the First time is the difference in getting the home and hearing "They went with another offer!"......many times when people hear that they "Went with another offer" its because the agent didn't write it up the way the bank or GSE likes to see it!! The easiest thing to do for the agent then is to talk about how unfair it was...or it was this or that....it takes a pretty stand up agent to admit that they make a mistake....a mistake because they didn't write the offer up the way the GSE or the Bank likes to see it....so they went with another offer yes....one they wouldn't have to counter back!

Write a strong offer the First time....you might not get a second chance!!

So can you use your VA or do FHA on an AS-IS cash sale?? Answer: NO......

Many times agents find the perfect home...show their clients.....everyone is Excited....they write an offer and send it in.......and it gets blown out of the water....WHAT....HOW can that BE the buyer says??? In this case....you are using a financing vehicle when the home is clearly marked -CASH sale in the MLS.....Ask your agent up FRONT if the home will work with your chosen financing type?? Save yourself some grief.....If it says CASH in the MLS it means....CASH.....or a hard money loan may work....anything else won't......a 203k in theory might but I have yet to see a GSE (Freddie Mac or Fannie Mae) take an offer with a 203k loan....they usually take a bit longer to close and the banks/GSE's don't love them.

When searching for a Redding Ca REO make sure that there are no other offers in on the property if you decide you want to write it up! If there are keep in mind that offering "Below" the list price with other offers is a sure way to NOT get it.....

Good luck to you....

Contact me should you wish to find out what is coming up soon as an REO in the greater Redding Ca area....if you are not working with an agent or Realtor.....

Richard

530-248-5627

With so many bank owned properties falling out of escrow I wanted to touch upon the selling term "As-Is" and what it means in Redding Ca Area Real Estate transactions involving REO's.

The term As is means as you see it...with all faults! Does it mean the bank or government agency will never ever fix anything at all? No....there are a relatively few times they Will fix certain items if they pose an immediate danger such as electrical etc.For the most part plan on the bank NOT doing repairs....then if they do agree to fix it you will be happy.

The purpose of Inspections on an "As-Is" sale are to find out exactly to the best of your inspectors knowledge what is going on with the home.Inspections on a bank owned home are for the buyers Information purposes....not a negotiating tool to see if you can get the bank to fix the 42 items the home inspector found on your 50 year old home!

As a Buyer if you enter the transaction with the correct understanding and DO get the bank or GSE to fix an issue or item its a great thing....if not then you are not disappointed because you were thoroughly informed not only by the MLS print out that your agent gave to you mentioning the as is term but the disclosures themselves that you signed with the term as is numerous times....

Its not a suggestion when you see the term of sale "AS-IS"....its the way that the Majority of the REO's are sold....hence the great prices on the bulk of them....Most REO's are priced to sell....that is why they have multiple offers in on them in many cases.

The Bank has already lost sometimes $100k/150k or more on some of these homes...so with that in mind having the proper expectation of what will happen will save you a whole lot of stress!

Shy away from any agent that says we should be able to get you all the items you want fixed or get  you a $5k or $10k credit!! on this REO! They are simply OVER Selling not only themselves but are putting you on the path for disappointment! If you do get an item or two fixed or a small credit you are lucky....regardless of what you hear it doesn't happen ALL the time! It simply doesn't....anyone that says it does has not sold many if any Bank owned homes!

Most of the Banks and GSE's have factored in the As Is part into the price....if they planned on fixing everything on the home inspections they would have to raise the list prices to compensate....and that doesn't get much activity....a home priced at the market or above....yawn!

Get the Right Info....make informed decisions and move fast on the best ones....they don't last long....especially the best priced homes in the best areas...People today associate REO with a deal! And in many cases....they are Right!

To finding the best deals.....

Regards

Richard Goates

Broker of California Real Estate

530-248-5627

Search the Redding Ca MLS now!

There appears to be quite a problem in the local market place,possibly around the country on what, exactly, the term "As-Is" means.Such a problem that approx 40-50% of all escrows that fall out are a result of this!

Lets take a look at this term from different sources.

From a California Realtor in Southern Cal- “It means that you are purchasing this home in it’s present physical condition. The seller (bank) is selling you the house without any warranties or guarantees of its condition whatsoever. The seller (bank) will not repair or improve on anything, period.” Winston Westbrook

http://www.biggerpockets.com/renewsblog/2009/11/21/what-does-buying-home-as-is-really-mean-real-estate/

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From WestCoe Realtors- In a general sense, “as-is” means that while you still have your inspection rights as outlined in your purchase agreement, the inspection now becomes for your information only, and not a basis for further negotiation of any repairs. In other words, the bank will generally make no additional repairs to the property, and your inspection report is only for you to know exactly what you may have to fix in the home once you own it.

http://www.westcoerealtors.com/blog/real-estate-blog/buying-a-property-as-iswhat-exactly-does-that-mean/

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Zillow Blog- http://www.zillow.com/advice-thread/What-does-as-is-mean-when-it-is-being-sold-as-a-Bank-Owned-A-Short-Sale/366832/

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I believe the biggest problem with the term "As-Is" and what it means is the word called "Expectation". If you, as a buyer expect the bank or Government agency selling the home to satisfy your request for repair or give you a cash discount etc then you are setting yourself up for disappointment! The odds are that providing a handful of reports won't matter to the bank if they have priced the property well or have had multiple offers in on it!

If the buyer and buyers agent approach the transaction with the attitude that we will have our inspections and see exactly what we have and ask for some repairs or a credit and if we get them Great...if not we are not disappointed because we knew going in the property was being sold "As-Is".

If you approach all the bank owned homes with they had better fix everything on my list you are in for a long disappointing time trying to find your dream home.Banks take everything into consideration when they price a property.They price them to sell for the most part and they are a great value there again for the most part.This is why they have multiple offers etc....because they are sold "As-Is"....the seller (Bank) has not lived in the home and has for the most part no knowledge of the home...

So what is My Definition of "As-Is" in purchasing Redding Ca area real estate? It means what you see is what you get....have any and all inspections...find out exactly what you are getting for the purchase price...then if you ask for some repairs or a credit be prepared to cancel or take it "As-Is" if they come back and say no.No expectations....therefore No disappointment!

As a Buyer if you know what the Banks definition is-"What you see is what you get" have any inspections done but know there may be no concessions based on what you find-it's for your knowledge....then there may indeed be less stress in the market place!

Regards,

Richard

If you or your clients are financing with a Conventional loan things have changed!

It's called Risk Based Financing....those with not stellar credit scores or those with not a lot of skin in the game will be paying dearly.

Examples have shown that if you are putting less than 25% down on the home or your Fico's are less than 680 your fees will be higher....how much higher you ask?? Up to 2.75% Higher!!

So talk to your lender and see if there is another option for you on your financing....you may be better off with a FHA loan or doing something else if you can.

Make sure you don't let your loan lock expire if you are in escrow!! Especially if you will be subject to the new rates and fall under the new rules!

Talk with your lender today if you have any questions on the new rules or procedures outlined by Freddie and Fannie.

Regards,

Richard Goates

530-248-5627

01251781

Search the local Redding Ca MLS now!

We hear lots of different terms to describe real estate in our area. I am sure it is no different from other areas but here are some that come up quite often-

"Spacious".....there's one....my question? How can a 800 sq.ft home have a spacious anything??

"Beautiful".....when I called the agent was nice enough to say "well it really needs-carpet,paint,tile,a lot of other repairs"! wow....I guess beautiful to it's Mother?

"Won't Last".....indeed....that's why it's been on the market already 150 days??

I also keep seeing "Normal Sale"......we would not have seen this 3/4/5 years ago....normal sale means it's Not a short sale or REO. Best defined as AN OVERPRICED HOME.....sorry, had to get that one in there....If it was priced right it would be in escrow!

In fact most all the homes are over priced!! How can I say this you ask?? Well think about it for a minute....if the home doesn't have an offer on it the odds it that it is overpriced are Pretty good! When the price is right....bam...an offer comes in....People are shopping value right now...

I am waiting to see this one...."NOT and REO or Short Sale....just LOOKS LIKE ONE!".......any bets when that one will pop up??

Have a GREAT Day!

Regards

Richard

What is happening in the greater Redding Ca Real Estate Market you ask? Here it is...

WHAT DOES ALL THIS INFO MEAN?? CALL ME TO FIND OUT IF WANT TO KNOW HOW IT RELATES TO YOUR UNIQUE REAL ESTATE SITUATION. 530-248-5627

DRE 01251781

Some people like to blog about them...we like to sell them....bank owned homes that is....with so many deals out there right now on redding ca bank owned homes/reo's it pays to get with an agent or Broker that knows this inventory very well....

Most all bank owned homes are sold "As-Is" so knowing what you are getting into is very important!

Contact me today to see what is available in the Redding Market for REO's....

Regards,

Richard Goates

530-248-5627

There is only one thing that sells property in our area right now....well actually more than one thing in combination, but one thing in Particular, to actually get your home SOLD....anyone can List a home.....but who is selling them?

This market is challenging enough but if you don't have this one component going for you??? You don't stand a chance!

Call me today to discuss your unique real estate needs.No two homes are the same but there is one thing that all sellers have that have SOLD their homes....do you know what that is? I do....Call now 530-248-5627 DRE 01251781