Buying Houses: Types of Bargains to Find

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To make a good profit in real estate, you must buy right. Check out all property types available to find the best transaction for your specific situation. Consider fixers, distressed sales, repossessions, multiple listings, for sale by owners, and vacant properties just wasting away.

Distressed Properties

Recognize the difference between a fixer and a distressed property. Distressed properties may be fixers or just unwanted houses. Divorce, job loss or transfer, death, financial difficulty, and other problems often force a sale for less than market value. Just because an owner’s problem causes a distressed sale does not mean the house requires fixing.

REPOSSESSIONS

Although the repossession market seemed dried up last summer, houses are beginning to appear on foreclosed lists again. Lender Rob Kramarz with Nationwide Mortgage (www.seetloan.com) says that this may be the beginning of another real estate investor boom.

Look for great bargain properties for sale by HUD, VA, Freddie Mac, Fannie Mae, and Bank-REOs (acronym for real estate owned). Real estate agents try to discourage you from repos and switch you to multiple listed homes. Do not listen to negative remarks about how hard it is to find a good deal property. Find another agent. Even in the hot market at the time of this writing, when the average house sells in less than three weeks, we found two properties for at least forty thousand dollars under market value.

Paying a listing service to mail you lists of repossessed properties is a waste of money. Actually, by the time you get these lists, the houses are already sold. Many web sites listing foreclosures thrive on the web for no charge to you.

Take a flashlight with you to view a repossessed property. With no electrical service and boards covering windows, viewing dark rooms is tough. A good real estate agent will have her own flashlight, but you want to see what you want and not what she wants you to see.

HUD

In our area, new HUD listings post online late Thursday night or Friday morning. New “Daily’s,” homes previously sold which fell out of escrow, post Saturday morning. Properties not sold during the bid time stay listed as daily’s. Bids, due by the following Tuesday at midnight, must be submitted by a real estate agent who has completed HUD registration. Don’t waste your time using a Realtor who is not familiar with selling HUD homes. Any mistake causes the bid to be rejected. Don’t use an agent who says you must bid way over minimum bid. Find an agent specializing in HUD homes who wants to work with you on your terms. Many bargain HUD homes do sell for far more than the minimum bid. Hold out for the one property which doesn’t get way overbid. (I bid about $40,000 under minimum on our second home owner-occupant mountain cabin.)

We submit many bids and win enough to make it pay us well. HUD only allows one repo purchase as an owner-occupant every two years from the date of closing.

Rely on your gut instinct and don’t let your real estate agent unduly influence you. It is not a difficult process for your agent to make a computer bid. You need an agent willing to make a few bids to get a successful bid. This is like winning a lottery, with the odds in your favor.

Bids must have a lender’s loan commitment statement. Lenders unfamiliar with HUD requirements also waste your time. Any mistake causes you to lose the purchase. Not all lenders understand HUD’s bid, finance, and purchase process.

When placing a HUD bid, raise your offering bid to cover some of your closing costs. This means you get HUD to pay your closing costs and save out-of-pocket expenses. Also, the higher sales price impacts the market comparable sales in your favor for sale later. Your purchase price influences the values of the market area. Keeping prices higher for active sales during your renovation time protects your investment potential.

Don’t get attached to one particular property. We placed a bid on a home I loved in Apple Valley and lost it by a few hundred dollars. The house came back on the list later, not at all uncommon for HUD repos. But, by this time, we had already purchased a better distressed property.

VA

Cleaner than HUD repos, homes owned by the Veterans Administration are also offered on a bidding system through real estate agents. The VA partially fixes up their repossessed homes. The VA sometimes offers vendee (seller) financing with few processing costs, low interest, and no prepayment penalty. You do not have to be a Veteran to buy these easy to qualify for homes.

As of this writing, the VA is changing the way these homes are offered for sale. This is another reason you need a real estate agent who stays on top of recently revised marketing procedures relating to government-owned properties.

Less known government agencies such as Fannie Mae, Freddie Mac, FDIC, SBA, the IRS, and GSA list repossessed properties on their individual web sites. These properties, rarer than HUD and VA, usually get cleaned and repaired before listing with real estate agencies with sale prices closer to market value.

REOs

Banks often offer their real estate owned–REO homes at bargain prices. Depending on the bank’s resale policy, conditions of the property, and available financing, REO opportunities vary widely. Several banks lend on their repos while other banks just want out. Great financing becomes possible through the banks who offer in-house terms. Ask for no points, minimal loan costs, and no prepayment penalties. Check with your local lending institutions and find out how they market their repossessions. Many of these bankers will give you their web page listing available property. Befriend real estate agents who specialize in listing bank-owned repossessions so they will notify you of a new listing immediately.

Multiple Listings

It is hard to find a bargain in multiple listings, but not impossible. Check out listings which have been on the market for awhile. Look for vacant houses, as these cost the seller money every month. Make an offer for much less than asking price with a quick escrow. Many anxious sellers jump on an offer if they think they will be out of their problem in only ten days. This is another reason you need a lender and an escrow officer who perform fast.

I follow the multiple listings in our area on the Multiple Listing Service. One of my agents emails me new listings daily. You need an agent who calls you the minute a new distressed property listing becomes available. Under-priced listings mostly get snapped up by the real estate agents and their investors before they hit the market.

Just like making many bids, make many offers. You never know when a seller’s problems reach a critical point causing abrupt action.

For Sale by Owners

Houses for sale by owner may not always be a great buy, but there is always at least one bargain out there. Many investors prefer buying directly from the owner. If you have ever tried to sell your home by yourself, you probably met some of these investors. Cruel, hard, and in some cases, fraudulent investors dream up all kinds of schemes to steal houses from distraught homeowners. Understand that the home seller most likely dealt with these callous investors before you and therefore may view you with suspicion. Earn their trust by working with them honestly and compassionately.

Seller’s Motivation

Let honesty and kindness guide your actions with sellers. Finding out the seller’s specific problem is the key to helping them and yourself. Uncover the seller’s particular need and find a solution. Because it is embarrassing for some sellers to let you in on their troubles, extra sympathy and relaxed timing helps you unearth their underlying motivation. Listen carefully, stop talking, and pay attention to details which lead to understanding the real reason they need to sell.

The seller may need a quick escrow, need to rent back the home for a while, or want immediate cash. You could give the seller a loan of cash with a note secured by the property. Ask an attorney about your state laws regarding this type of purchase advance. We offered a seller a $2,000 deposit outside of escrow, which went toward the down payment, to entice a money-hungry seller to commit to our low price.

Many sellers do not need all of their cash out. Owner financing is a great deal for you. Usually, you get a lower interest rate and you don’t have to pay lender’s points or prepayment penalties. Also, these loans typically won’t show on your credit report so you won’t have these payments counted against you. If you have a good credit report, take a copy with you to show to the seller. This prevents more inquiries on your credit history and keeps your credit score from dropping.

Ready to Buy

Be prepared to make an offer immediately when you find a bargain. Make sure you are pre-approved with a great lender who can close quickly.

Distressed sellers and fixer houses offer you a great way to get into the real estate investing business.

(c) Copyright 2004, Jeanette J. Fisher. All rights reserved.

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Source by Jeanette Joy Fisher

How to Sell a Home – List With a Realtor or For Sale by Owner (FSBO)

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There are a variety of factors that motivate home owners to sell their home without the assistance of a Realtor. Primarily it is to save the real estate commission or the concern that there is not enough equity to cover the cost of selling and mitigate the expense of the new residence. If the later is the issue there may be no alternative but to go it alone. On the other hand realtors are quick to point out that statistics indicate that homes listed with a Realtor will sell at a considerably higher price than the “for sale by owner”. Considering the market exposure the Realtor can provide it would seem logical to assume there is validity to this claim but there are certainly exceptions.

There is another irritating but compelling rhetoric that Realtors frequently allude to when soliciting a listing from a home seller. “The three most expensive non elective events that most people are potentially faced with are doctors, lawyers and housing. Would you perform you own surgery or defend yourself in court? Why wouldn’t you need a professional to sell your home”? This is possibly a valid analogy but does not necessarily encompass the factors that motivate the seller to take on the task personally.

There are services available that provide the guidance, forms, signs and legal advice at a reasonable price to technically get the job done. There are even on line listing services that may provide some exposure and augment media advertising. If the owner has a “hot” property that shows well, is exceptionally maintained and is in a “hot” neighborhood there is a good chance for a favorable outcome in the effort to sell without a realtor.

As they say “the devil is in the details” and that is where the Realtor has a great advantage. A well located property properly “staged”, properly priced and well exposed to the buying public will sell quickly in most markets. Staging means that it has been brought to market condition and that there are no blatant eye sores. Staging, pricing and particularly exposure are the “big three” when it comes to a timely sale and the absence of any one of the three can create a deficiency that is hard to overcome. Homes that sit on the market for months on end become “shop worn” and usually sell for a greatly reduced price than they would if the seller subscribed to an objective approach from a professional. In addition, the FSBO has been making mortgage payments during the months it has been floundering on the market.

The real estate company listing the property will normally bring a full basket to the first picnic. They know that the best way to avoid an expired listing and significant expense is through a quick sale. Exposure is the key and owners can’t compete with the realtor’s resources. The listing is promoted to all of the agents in the company’s office and multiple listing services expose the listing to hundreds or even thousands of agents and their clients. Open houses accompanied by media advertising on weekends are very effective. Statistics indicate that a high percentage of sales are to buyers who live within a close proximity to the listed property because of the reduced disruption of life style factors. Open houses can bring them in.

When there several competing properties on the market in the same neighborhood the “for sale by owner” is additionally handicapped. Most buyers do not relish the prospect of negotiating with the owner so the exposure generated by the competing listings does not necessarily mean more exposure for the FSBO. The agents showing those properties may route their clients away from the FSBO when possible and will frequently invent a reason for the buyer to avoid that property. Unless the community has exceptional attributes, there are only so many potential buyers for that community at any given time. Those who sell first have a distinct advantage.

Furthermore, it is difficult for the homeowner to evaluate the competition and the market in general. Gaining access to the competing properties on the market and recent comparable sales is cumbersome at best and there are frequently factors that are not readily apparent. An example is the comparable property that sold for a great price but the contract required the seller to pay 6% of the buyers closing cost. This is not an infrequent occurrence in today’s marketplace.

In summary, this article does not make a very good case for the prospective FSBO but those who are selling an exceptional property in a desirable community might give it a try. It may not damage the realtor’s effort when finally listed but don’t let the ego interfere if it doesn’t go well in the first thirty days. For those who must save the real estate commission, consider interviewing three high producing realtors and presenting the problem to them for a solution. Realtors and their companies spend a considerable amount of money marketing their listings so if they will not accept the listing at or above the sales price required to make the transaction work one must assume that there is no other choice but become a FSBO or make other plans. If they all concur on a listing scenario that will solve the problem and everything else is equal, pick the one who is the most knowledgeable about the recent history of the community but make sure the agent is committed to aggressive marketing. One should consider that it is frequently the real estate agent that rejects the overpriced listing that is the wisest and most professional.

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Source by Michael B Roche

Selling Your Home For Sale By Owner–Forms, Disclosures, and What it Takes to Succeed!

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Selling a home on your own can be exciting. It can also be terrifying. So, don’t under estimate the importance of key factors that could make the difference between your real estate experience being a dream or a nightmare. To masterfully execute a successful home sale it is important to do three things: 1.) Deliver the appropriate forms and property disclosures to the Buyer, 2.) Give your home maximum exposure, and 3.) Communicate effectively when you receive an offer, and especially once a transaction is in escrow. Strong communication is essential in keeping the transaction moving forward. Neglecting any of these three critical areas can cause your home sale to stall–or worse, self destruct.

Providing the Necessary Forms and Disclosures

Often Buyers interested in purchasing a home from a For Sale By Owner (FSBO) will rely upon the Seller to provide the purchase contract. It is always a good idea for a Seller to have Purchase Contracts, and other forms, on-hand when placing a home on the market. Also be aware that in real property transactions, a Seller must complete all of the necessary property disclosures prior to consummating the transaction. What disclosures are necessary will vary from state to state, however, it is the Seller’s legal obligation to disclose any known defects about the property. For most states, a Seller should be able to find a list of the required disclosures by visiting the state’s real estate commission website. To get a full picture of what disclosures you will need to make, take into account that your city and/or county may have disclosure requirements of their own. At your open house, consider creating and displaying a binder which contains all of your home’s disclosures for Buyers to review. While disclosing information is important to a successful sale so is getting your home in front of Buyers.

Giving Your Home Maximum Exposure

Exposure is critical to a successful home sale, particularly in today’s competitive real estate market. While signs and newspapers are great, according to the 2006 Internet Versus Traditional Buyer Survey produced by the California Association of Realtors, California homebuyers searching for a home on the internet rose to 70% in 2006. So if you are trying to determine where to focus your marketing efforts, realize that the internet is a good place to start. Also important in terms of marketing your home to Buyers, is knowing your competition. If you are selling your home on your own, it is important that you take time to visit open houses in your area, in addition to holding your own open houses. When Buyers stop by, ask them what their thoughts are about the other homes they have visited and use the answers they give as a springboard to highlight your home’s key features. Doing this will give you an opportunity to practice communicating with Buyers.

Communicating and Negotiating with Potential Buyers

As a FSBO you will find that negotiating with Buyers is more a matter of diplomacy than anything else. Remember, today’s market is not the market in which to play hardball and the key sticking point with Buyers will almost always be the price of your home. Most people choose to sell their home on their own in an effort to avoid having to pay a commission, however, according to the National Association of Realtors, in 2006 homes sold “For Sale By Owner,” sold for 32% less than homes sold by a licensed real estate professional. One of the main challenges that FSBOs face is negotiating with Buyers. Often Buyers specifically select a FSBO property in an effort to “get a deal” just as Sellers are hoping to pocket more money by not using a real estate agent and therefore not paying a commission. Know this ahead of time, and think about the ways in which you can respond to any “below market offers” you may receive. Also, maintain a general attitude of cooperation by being willing to demonstrate flexibility and an overall desire for a win-win situation for both Buyer and Seller.

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Source by Errol Vincent

Sellers – How Realtor's Market Your Home to Other Realtors

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Many first-time sellers believe the most important marketing tools a realtor can use when selling their property are yard signs and other visible online and print ads geared to the buying public. Although this is obviously important, a lesser known marketing tool that professional realtor's use is marketing to other agents. The reality is that once a home listing is placed on the MLS (Multiple Listing Service), one of the most important marketing tools a realtor can utilize is the relationships he or she has with fellow agents in his office or with other agents within the community .

Depending on which office a realtor works for (whether it is a large office with a nationally known name or a private business) when your house is newly on the market, it is usually customary practice that the company will stage an "office preview" where every agent in the office will walk through and tour your home. This is important because for each agent who tours your home, they might be the one who has the potential client that may be looking for just the style, location and price your house has to offer.

Professional agents who represent the buyer usually are keen on what their clients' needs and wants in a home are and thus will immediately contact their clients as well as the listing agent.

The buyer's agent will usually approach or call your listing agent and ask the terms and details of the sale, including the compensation. If the transaction seems probable, most buyer's agents will hustle to have their clients tour your home to see if it is a potential match and in turn they will beat out their competition at making an offer. Many homes are sold in just this way, often even before a yard sale sign goes up!

Although the seller is in effect, paying the commission of both agents, the financial incentive is also important to the buyer's agent. Usually there are almost always two agents involved in every sale, they split the commission according to the listing agent's instructions agreed upon on the original listing contract between the homeowner and the listing agent. For illustration purposes, the agent who has listed your home is usually referred to as the listing agent and the other agent representing the buyer is the buyer's agent. If you are able to convince your listing agent to drop his commission, it doesn't guarantee that the buyer's agent will be too amenable to the idea if he or she is expected to lower his or her commission as well.

Since agents are paid on commission only, the fact is you won't find as many agents willing to show your house – they'll be showing houses to their clients that offer the customary commission to the buyer's agent especially in a buyer's market. While an agent's commission is currently a raging point of contention in the news media, what many consumers are not aware of are the challenges in selling a home in a buyer's market as well as in a state that has stringent regulations and aggressive (iecutthroat) competition such as in California. In addition, most homeowners do not know that not only do a buyer's agent and a listing agent split that "hefty" commission with each other, they also must split it with their broker or office depending on their individual sales production. Furthermore, since real estate agents are independent contractors, they must split that commission with the IRS who, depending on their individual tax bracket, can take a 45% bite out of their commission check. This fact alone might shed some light on why a professional buyer's agent is very likely to be unhappy with a reduced commission and be less than motivated to show your house to his or her clients.

As for your listing agent, it is this combination of a professional agent's ability to market to his or her's peer-to-peer relationships coupled with his or her's own knowledge, skill and professionalism that can make a huge difference in the final sale of your home. Depending on the agent's negotiating skills and productivity, over time a professional listing agent develops an ability to negotiate well with other agents representing potential buyers– even those agents that may be new in the business and may not know all the ropes. Furthermore, it's the agent's ability to sell even in a buyer's market that proves his or her sales skills and merit. These are all subtle sales skills that will ultimately contribute to a smooth transaction and the successful sale of your home.

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Source by Nef Cortez

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How to Sell a House By FSBO Without a Real Estate Agent – Part 1

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There are numerous real estate investor ways regarding how to sell a house by owner. Before I reveal to you how to sell a home without a real estate agent, you might want to know basic fundamentals first. As a real estate investor, I have never used a real estate agent to buy or sell any formerly lived in home. To be truthful, realtors just slow down the process, and they want too much money for doing so.

Experienced real estate investors roll their sleeves up and complete the job themselves, and most likely, at least for me, I get a quick house sale. Sure, there is always that certain home that will take longer to sell than expected, and there is usually that house of which I presume will take a long time to sell and it sells in one day, but most of the time I sell them inside of days or a couple of weeks. I even offer an approach that sells a house in 9 days.

Did you know that approximately 80% of the homes sold are sold to individuals who currently reside in the same neighborhood? So does not make sense to let everybody close by your neighborhood know that your property is available for purchase? It could take a little bit of work on your part, but if all goes as planned, that little bit of work may yield fast results.

For the most part FSBO's, despite the fact that the property owner is trying to sell, many of them do not know the ways to sell a house by owner. It is my guess that most of them sell as a FSBO just because they are attempting to save the real estate agent commission. I do not blame them, but many do not know how to sell a house just like the real estate investors do it.

What I do is this: I place anywhere from 1 to 4 hand painted signs in the front yard. I then create flyers that tell anything and everything a potential buyer really should know about the home, and about how I am selling it. I affix the flyer box to the front of the house, or on a stake close to the front door. Always keep the box stuffed with flyers, do not allow it to run out of flyers like most realtor flyer boxes, and at all times make people get out of their vehicles and walk up towards the front of the house to grab a pamphlet. Why? Because, if the house is vacant, I would like to entice every potential buyer to glance in the windows just for them to get a closer look. Make certain you leave your blinds or curtains wide open.

You may not believe this, but I pay a visit to a sign shop and I get white blank Coroplast signs, the size of a basic realtor sign. I obtain different color paint pens from an arts and crafts store. Next, I travel to the hardware store and purchase a can of pink fluorescent paint. Lastly, I hand-paint a sign in several colors and I spray the edges with the pink fluorescent paint. It stands out like nothing you have ever seen! Plus, it is very important that potential buyers believe they are dealing with an inexperienced homeowner. Then, I place the signs in the front yard and on all four corners of the 4 major intersections near my house. I splatter the neighborhood with the signs so absolutely everyone driving within one mile of my property understands it is actually For Sale.

The pink fluorescent boarder on the white signs with all the multicolored words just draws your eyes to it. It just dares buyers to come have a look. ALWAYS place your telephone number on the signs and have arrows directing people directly to the front door. Every buyer that has purchased a house from me in the last 9 years, was found by my signs. One simple way on how to sell a house is by using hand painted signs. It works, at least for me! I normally place an advertisement in the classified section of the local paper too, but not once have I sold a property from the paper.

There are different approaches which I use for selling my homes. We will go over them in Part 2 of this 2 Part series, but how to sell a house by owner is to bring the prospective buyers right to the front door with my hand painted signs.

Recognizing how to purchase or sell a residence in this real estate market suggests doing it like a real estate investor. I would only purchase a home way under current market value. It only makes sense to discover how to purchase a "home short sale". As for how to sell a house by owner, you need to learn about all of the real estate investor secrets.

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Source by Trevor MC

Should I Sell My House Quickly Or Not?

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There may be several reasons that you need to sell your house quickly. Whether you are transferring to new location or simply trying to avoid foreclosure. However, before taking a decision to sell your house quickly, you must look into realities of selling the house quickly. It will help you make a wise decision about the sale of your house.

Why should not I sell my house quickly?
The decision to sell house quick is propelled by the thought of avoiding the situation. You may want to get out of the house in the short term. The biggest disadvantage of selling the house fast is you do not get the opportunity to raise the price of your home. As a result, you will not get enough profit from the sale. At the same time, you do not get time to fix the appliances and fixtures in your home which definitely lower the value of your house.

What Benefits I get to sell my house quickly?
Though you might not get right amount of profit if you sell house fast, there are several other benefits. The main opportunity is you can move out of your house in less than 90 days. If you are choosing to sell house quickly to avoid moving through a foreclosure, you will be relieved of the burden of extra debts from a foreclosure. You need not go into the court for your house.

You might get right opportunities with timing if you decide to sell house quick. Getting a real estate agent for house sale requires meeting the specific agreements and conditions. Otherwise selling house fast through a cash house buyer company is more convenient option as they require lesser agreements to meet. Selling your house through a cash buyer company may fetch you right return of your house without going through the commitments of a traditional sale.

If you are looking to move out quickly from your house, you should look for alternatives to sell house quickly. If you understand the pros and cons of the option you are looking into to sell the house, it will help you get desired price and move into right direction.

If you want to sell home fast without any hassles, it is best to contact the cash house buyer companies which buy your home fast without visiting or inspecting it. They buy it in any condition and at any location. Moreover, they do not charge any commission for selling your house fast.

Immobilienmakler Heidelberg

Makler Heidelberg

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Source by Damien Wilson

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