As we end 2012, many people ask me to look into my "Crystal Ball" to forecast what will happen with BANK OWNED HOMES in the Manchester NH area for 2013. Overall in 2012 our market has seen a sharp decrease in homes on the market with a sharp increase in homes sales. Interest rates are still at all time lows and prices are increasing slightly.
When we look at 2013 there are several factors to evaluate. The first being the fact the Banks slowed down Foreclosures to allow for workouts, modifications and Short Sales.
With politics putting a stop to the "forgiveness of debt" home owners could face hefty taxes for the balance of what they owed and what they sold their home for when Selling their homes as a Short Sale in 2013.
With banks putting the breaks on Foreclosures, there are many vacant and abandoned homes sitting and to put it bluntly "rotting" away. Look for the banks to increase foreclosures to clear these vacant homes off the books.
This should be looked at as a positive as many of these homes are eye sores. They are bringing down the market, hurting neighborhood values and attracting crime. Because of their poor condition the most likely buyers are cash investors who will swoop in and fix the homes restoring to their former glory. New Home Buyers will have opportunities to purchase homes completely redone and sold for great prices. It is a positive for everyone to get these homes sold, fixed and occupied.
A year ago on January 2,2012 I wrote a blog about a troubling trend with BUYING BANK OWNED HOMES. The WRONG WAY to purchase a Bank Owned Home. (100% Rejection rate guaranteed) As a Leading Listing Agent of Bank Owned Homes and Pre-Foreclosures i have seen a trend where everyone seems to be providing tips on "How to purchase a Bank Owned Property". With so many blogs telling one what to do when buying a REO home, many tips are conflicting which really confuses buyers. The problem starts with Buyer Brokers offering generic tips on buying which DO NOT APPLY with foreclosed homes. The true person who knows, is the Leading REO Listing Agents as the see it and live it every day.
Today I offer you the Leading TIPS IF YOU WOULD LIKE TO BUY A BANK OWNED HOMES.
THE TOP TIPS TO BUYING A BANK OWNED HOME:
- Include a pre-qualification letter or proof of funds with your offer. Failing to do so will often lead to rejection or lost time while they have to ask you to provide it as another offer gets accepted while yours was delayed.
- Do NOT add contingencies to your offer accepted as banks look for "Clean" contracts without contingencies other than obtaining a mortgage.
- If you are applying for a FHA mortgage, check before making your offer if the home can even get a FHA mortgage in it. if it needs work. You can easily get a list of what is acceptable to check if the home meets the criteria or not.
- When making an offer, you should not base your offer on deducting a specific percentage off the Listing price. You do not know if that listing price is market value, priced above market value or already priced at a great discount below market value. Assess what the home is worth in todays market and deduct for repairs.
- Do not include time limits for the bank answering your offer, Banks work at their own pace. Be prepared to wait for an answer and signed documents. Putting deadlines for answering your offer will simply get it rejected or ignored.
- Do not assume everything is in working order without testing it BEFORE you make an offer. Virtually all homes are sold 'As Is".where the BANK will not renegotiate after a home inspection or fix anything not asked for in your initial offer.
- Do not assume the bank will just grant you an extension if you are not ready to close. Cash offers and conventional loans are expected to close within 30 days and FHA and USDA loans are expected to close within 45 days.
- Do not assume all Listing Agents of Bank Owned Homes are the same. There are some very good ones and some very bad ones. The sale also only goes as well as the listing agent is attentive to their listings and uploading and updating offers.
Buying a Bank owned home can be the best or worst purchase of one's life. Being prepared to purchase can eliminate a lot of problems. Writing a good offer can eliminate a lot of other problems that often pop up and lastly knowing what to expect can eliminate most of the rest. Having a Listing agent who is experienced in Listing, managing, negotiating and selling Foreclosures means a great deal. If banks would simply assign Listings to the agents who are attentive to the banks needs instead of those bad agents who have too many listings or are do not manage their listings, do not maintain their listings, do not answer calls , do not return messages with answers to buyers questions, do not show their properties and do not update agents who submit offers. The REO world would be a better place for all of us.
It does not take magic to turn your "For Sale" sign into a "Sold" sign. it takes a full time Local Agent who specializes in Listing homes like yours.
If you are thinking of buying a Home please contact us. Get a free pre-qualification along with some of the BEST CUSTOMER SERVICE through each step of the Buying Prices.
Please call for a FREE MARKET ANALYSIS to know what the value of your home is.
WE STRIVE TO PROVIDE THE BEST POSSIBLE SERVICE THROUGHOUT EACH STEP OF THE LISTING AND SELLING PROCESS!!!
If you need to sell your home and you owe more than your house is worth, i may be able to help. I specialize in working with home owners to get your home sold. There are many options such as a short sale which may be able to help you.
Please try and avoid out of state or out of town agents and companies that make "out of this world promises". We are local agents with experience who never charge any up front fees.
We are local agents with experience who GET RESULTS!!!
We stand by you through every step in selling your home..
PLEASE SEE MY "TOP" TIPS FOR SELLING A HOME Are you READY TO SELL YOUR HOME? Step 1: Choosing an agent
PLEASE SEE MY "TOP" TIPS FOR BUYING A HOME Are you Ready to BUY A HOME? Step 1 Find a REALTOR
About the Author: Scott Godzyk is the Owner/Broker of the Godzyk Real Estate Services in Manchester NH. With 27 years of through each step of experience Scott is a leading Agent for Listing and Selling Homes in this area. To CONTACT Scott Godzyk please call 603.661.2121 or EMAIL: Sctprop@aol.com . We are Full Time Agents ready to serve all of your Real Estate needs through each step of the buying and Selling process. We are proud to be locally owned and operated.
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