Gene Mundt - Let's Talk Mortgages & Real Estate!

Although I have been reading about multiple offers becoming more common in AZ, FL, and other states like many things until it actually happens to you it does not hit home.

 

So it was with some surprise that it finally has started to happen in my area, here in the suburbs of Chicago.  In the Oswego, IL area I have been hearing from many agents that they are now getting multiple offers on their well priced listings even short sales!  Lo and behold, on one of my more recent listings it finally has happened.

Now whenever I get that on offers I put in I always feel like they are "just" saying that to up the price.  Especially foreclosures which seem to always have "multiple offers".  So how do I respond when I am the buyer's agent?

I ask my clients how much do they really want the property?  Do you love it?  Really want the home?  Would you be upset if you lost it  to someone else?

If they answer yes then I recommend that they come in higher than the list or asking price.  When dealing with investors they don't mind paying a couple of thousand dollars extra to secure the property if it makes sense on paper.  They know they can make up the money when they rent it out to a tenant in a relatively short time perio.d

So how do you tell your average home buyer in a "buyer's market" that if they really want to have their offer submitted to the bank in a short sale that they may actually have to offer MORE than LIST PRICE!! 

 

 

If the home will appraise out higher than it's listed for and if the home was not a "short sale"  would you be willing to pay more for the home?  More than likely you will still be paying less than most "traditional sales" and if the home meets all your current needs, and you really, really would hate to lose out on it, then go for it!  Banks will see how serious you are and more than likely will not counter on the price.  So don't let your urge to "get the deal" at the lowest price make you "lose your dream home" and put you in the "should have, could have" club.  Put in your HIGHEST & BEST!

The market is changing and buyers are waking up to the fact that interest rates are the lowest in decades, home prices are  more affordable than ever and the bottom is almost there.  Few people have been able to "time" the market.  Few people saw the signs in 2005, 2006 and 2007 and sold their homes and rented waiting for the downturn.

 

Don't Be Caught Trying to Time the Market!  instead take advantage of today's market, buy your dream home in the neighborhood you love knowing that chances are you will have a lower mortgage than most of your neighbors and you will be enjoying that home for years to come!

 

If you are underwater on your home call me for a confidential consultation to discuss your options!

 

 

Evelyn Santiago

Dynamic Real Estate Network, Inc.

Last week, my office had a two-day "prospecting school," during which we spent some intensive time contacting past clients, our COI/SOI, households around our just-listed or just-sold properties, and people whom we considered to be "dead leads."

In preparation for this event, I gathered up a pile of paper scraps, napkins, business cards with names and phone numbers scribbled on them, old sign-in sheets from open houses, and every other half-forgotten old lead, some going back to 2008! Needless to say, I had little expectation of a positive result should I be able to get in touch, but I decided it was worth a try.

I created a short script to look at while I made my calls, outlining local market stats (prices still falling, albeit slowly; interest rates below 4% and holding steady; and signs that the market in several nearby towns is beginning to turn into a sellers' market once again). I jotted notes next to the names I had collected, and looked up phone numbers where possible. I ended up with 20 useable names and numbers, with enough information about each lead to get a conversation started.

I was able to connect with 12 people on Friday--8 of whom were happy to hear from me, eager to find out more about the local market, and ready to start seriously looking for a home or investment property. I spent the weekend looking up properties to tour, emailing answers to marketing and financing questions, and otherwise following up with these people. I'm confident that most, if not all, will be buying from me within the next few months.

There's really no such thing as a dead lead unless your prospect tells you not to contact him or her. Otherwise, keep trying (at reasonable intervals, not so often as to be a pest). For a very small investment of time and energy, I'm reaping a substantial reward.

Sonsie Conroy
CA Lic. No. 01839596
Coldwell Banker Premier Real Estate
San Luis Obispo, CA
Cell: 805-235-2351
Email: sconroy@slonet.org
Website: www.sloliferealestate.com

DANGER, DANGER WILL ROBINSON !
BANKS ARE GETTING INTO REAL ESTATE THROUGH THE BACK DOOR - SHORT SALES ! !

* * * * HARD CORE REAL ESTATE TALK * * * *

HEARD ON THE STREET ! !

This was the first I'd heard about it too and my source is impeccable.

HEY, ALL OF YOU SHORT SALE "EXPERTS" OUT THERE. 

What if I told you that the banks were in the process of establishing procedures to control the owner/sellers' selection of LISTING AGENTS used to list and sell their home AS A SHORT SALE? 

PICTURE THIS. . .  You are a home owner in distress.  You lost your job and exhausted your savings keeping your mortgage payments current for more than 6 months.  You did everything you could to save your home but your new job doesn't pay enough for you to manage your mortgage payment.  You tried to get your loan modified but after doing every thing your mortgage compay advised, you are now four months in arrears, loan modification was denied and you have no more savings.  Your mortgage company suggests that you sell your property through a short sale.  You tried a Short Sale months ago but it never got to closing.   

THE POST OFFICE IS KNOCKING ON YOUR DOOR. 

Your heart is in your throat, but you know you have to answer the door.  The post office delivers a CERTIFIED letter to you.  You sign for it and, when you have the envelope in your hands, you see that it's from your mortgage company.   You open it knowing it's probably a notice about the pending foreclosure.  With shaking hands you read the letter.  WAIT!  This letter is recommending that you reconsider a Short Sale transaction.  Included in the package from the mortgage company that begins with "IT'S NOT TOO LATE" are:

1.  A notice advising you that you will receive a $20,000 incentive for a successful Short Sale transaction.

AND

2.  A list with the names and contact information of REAL ESTATE AGENTS/BROKERS! 

Question:  If you were a home owner on the way to foreclosure and you thought there was no hope, would you find the offer of a completed Short Sale with a $20,000 "Fresh Start" check attractive??

Question.  If you were a home owner on the way to foreclosure and your bank advised that you could still sell your home through a Short Sale, would you be inclined to contact one of the agentson the list even though you've used someone else in the past??

WHAT IS NOT INCLUDED IN THE CORRESPONDENCE FROM THE MORTGAGE COMPANY ARE:

Advice that you have the right to select a real estate agent of your choice to list your home for sale.
Advice that you have the right to contact an attorney for legal advice in connection with a Short Sale.

Considering the almost complete lack of real estate knowledge of the average home owner on the way to foreclosure, wouldn't this letter from the bank offering an incentive of $20,000 for a completed Short Sale sound like a LIFE LINE??

Considering the almost complete lack of knowledge of the average consumer about AGENCY LAW, wouldn't it appear that you would be required to use the services of one of the real estate agents/brokers included on the list??

ALERT!  ALERT!  ALERT!   From information received and believed to be accurate, THE NAMES ON THE AGENT/BROKER LIST ARE ALL REO BROKERS.   These are the same agents/brokers who are used by the banks to represent the banks in the sale of bank owned properties. 

Question:  Why are the banks tacitly recommending REO specialists to handle Short Sales?
Question:  Whom will the agent represent? 
Question:  Will the agent enter into a listing agreement with a duty of fiduciary to the owner/seller?
Question:  What do the banks hope to gain by recommending agents/brokers on their REO list?
Question:  Will banks be more inclined to approve a Short Sale if the listing agent is on "THE LIST"?
Question:  Will agents on the list be in a position to handle volumes of Short Sale listing like REOs?
Question:  How much CONTROL over the short sale transaction will the bank have??  More?  The same??
Question:  Is there a conflict of interest when a bank recommends a listing agent to a seller?
 

                      

 "Honey, are we supposed to use an agent on the list from the bank?"
"It looks that way to me Dear.  They're going to pay us $20,000." 
"But, our agent worked so hard when we tried a short sale before."
"I know she did Dear, but we can use this money to pay moving and rent for about a year."
"I don't know any of these agents and some of them are pretty far away."
"They must be good Dear if the bank is recommending them."

Courtesy, Lenn Harley, Broker, Homefinders.com, 800-711-7988. 

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