I have been waiting to comment on the sub-prime mortgage bust until I get a good feel of how it will affect us here in Northwest Indiana. Well, I do not think we will be as bad as some of the larger markets it has definitely left some of our buyers and sellers in a pretty bad position over the last few weeks.
Prior to this it was pretty easy to get a loan. Now lenders are going to give all potential buyers a very thorough look before the lend to anyone.
This does mean buyers' are going to have to be more educated and better prepared, but also sellers'.
Home sellers' now more than ever need to look at their sales price and their market and make sure they are priced right for their goals.
Before buyers would shop more with their eyes, not focusing on the price. When they found something they liked they would then talk to different lenders until they could work into the home.
Even though buyers will still shop with their eyes first, I believe they will focus on price more quickly than before.
Sellers' if you are currently listed you may want to ask your agent for an updated CMA.
If you are thinking of selling, it is still a good time to sell, just make sure your are priced right to achieve your sales goal, otherwise it could be a long road.
Tuesday, April 17, 2007
Friday, March 9, 2007
Foreclosures Continued
As I'm driving in my car this morning I hear a commercial about how the banks and government are liquidating thousands of foreclosed homes and you can buy them for little or no money down. All you have to do is call a number and sign up for a list of these homes.
Well just like that you can buy houses and make millions of dollars investing in Real Estate. Sounds great, right?
I always get a kick out of these commercials and how misleading they are.
Here's the catch, all they want you to do is call and sign up for the list, because they charge you for these lists. Again, this is most likely outdated information you will be buying and information you can get for free from working with a Realtor.
It amazes me how many investors or want to be investors jump in to real estate with out any knowledge at all. They call an agent to look at homes and go to town. Real Estate still is and will always be a great investment, but as with any investment you have to do your homework.
Consult with a Realtor and lender (unless you have the cash) who have worked with foreclosures before. It is different form buying any other home. The time lines are different and all the banks who manage these properties have different rules in their contracts.
It is getting more difficult to get loans on lower end properties. Too many times I see investors come in with a pre-approval letter in hand ready to go, they put an offer in on a $40,000 only to find out their lender will not loan on a property so low.
It is important to talk with the lender first and discuss what type of property you are looking at. If you are trying to buy low end homes it will be a riskier loan and may require more collateral.
Also, these homes are sold as-is, most of the time the utilities are off and it is difficult to test the systems in the homes. Although most banks will allow time for a home inspection, it may not be worth the money. It most cases I would assume the worst and base your budget on needing to replace it all.
Here is an example: I recently had an investor attempt to purchase one of my listings that was a foreclosure. The home was completely gutted, no furnace, no cabinets, no toilets or pipes, gutted to the drywall. They still insisted on a home inspection and then lost the home because he could not get financing.
The morale here is use your head and be prepared. The more research you do the better off you are. I think home inspections are great, especially for first time buyers or higher end homes, but if you are getting an inspection on low end homes, you may need to do a little more research or consult a different agent.
Again, Real Estate investment can be very lucrative if you do your homework, consult a good Realtor and have a plan. But with any investment there is a great deal of risk, don't go in alone, head first or you could drown trying to do this.
Well just like that you can buy houses and make millions of dollars investing in Real Estate. Sounds great, right?
I always get a kick out of these commercials and how misleading they are.
Here's the catch, all they want you to do is call and sign up for the list, because they charge you for these lists. Again, this is most likely outdated information you will be buying and information you can get for free from working with a Realtor.
It amazes me how many investors or want to be investors jump in to real estate with out any knowledge at all. They call an agent to look at homes and go to town. Real Estate still is and will always be a great investment, but as with any investment you have to do your homework.
Consult with a Realtor and lender (unless you have the cash) who have worked with foreclosures before. It is different form buying any other home. The time lines are different and all the banks who manage these properties have different rules in their contracts.
It is getting more difficult to get loans on lower end properties. Too many times I see investors come in with a pre-approval letter in hand ready to go, they put an offer in on a $40,000 only to find out their lender will not loan on a property so low.
It is important to talk with the lender first and discuss what type of property you are looking at. If you are trying to buy low end homes it will be a riskier loan and may require more collateral.
Also, these homes are sold as-is, most of the time the utilities are off and it is difficult to test the systems in the homes. Although most banks will allow time for a home inspection, it may not be worth the money. It most cases I would assume the worst and base your budget on needing to replace it all.
Here is an example: I recently had an investor attempt to purchase one of my listings that was a foreclosure. The home was completely gutted, no furnace, no cabinets, no toilets or pipes, gutted to the drywall. They still insisted on a home inspection and then lost the home because he could not get financing.
The morale here is use your head and be prepared. The more research you do the better off you are. I think home inspections are great, especially for first time buyers or higher end homes, but if you are getting an inspection on low end homes, you may need to do a little more research or consult a different agent.
Again, Real Estate investment can be very lucrative if you do your homework, consult a good Realtor and have a plan. But with any investment there is a great deal of risk, don't go in alone, head first or you could drown trying to do this.
Tuesday, February 13, 2007
Buying Foreclosed Homes
Over the last five years over 75% of my business has been working with foreclosed homes. I have met some great buyers who have made some great money on these homes, but I have also met some buyers that have no clue what to do. In the next two weeks I hope to offer advice and hints on buying foreclosed homes and getting them to close quickly and easily.
1. Have a copy of your bank statement, proof of funds or line of credit (if you are paying cash) ready to go. If you you are applying for a mortgage, have a copy of the pre-approval letter or mortgage commitment ready. This will speed up the offer process. All banks I have worked with require some kind of proof of funds before they will even look at the offer. If you provide this to your Realtor before hand it will quicken the process.
2. Do not pay for online foreclosure site like Realtytrac. These are a waste of money. You are paying for the same list you can get from a Realtor for free and most of the time the list you are buying are badly outdated.
3. Use the sellers title company. Most banks contract out one company to do all their title insurance for that state. It will save you time and money if you use their title company. They will pay for their side of the title insurance and all searches and recordings. Remember banks have to clear title of all liens and back taxes before they sell.
4. Know what you are getting into. There is a lot of money to be made in foreclosures but you have to do it right. If this is your first one, get a home inspection or have someone bid the repairs to the property before you put an offer in. Check the house thoroughly. If there is no furnace or pipes you most likely are not going to be able to secure a loan on the property without a significant down payment.
5. Owner Occupants are king. The banks that own these properties want to have someone living in them. They will always give preference to owner occupants and even pay some of their closing costs. Not so much for investors.
6. Have your earnest money ready when making an offer. If possible have it in certified funds. This will convey to the bank you are a serious buyer.
7. Be open on your time lines. It usually takes 48-72hrs for banks to review the offers and get back. Be patient.
1. Have a copy of your bank statement, proof of funds or line of credit (if you are paying cash) ready to go. If you you are applying for a mortgage, have a copy of the pre-approval letter or mortgage commitment ready. This will speed up the offer process. All banks I have worked with require some kind of proof of funds before they will even look at the offer. If you provide this to your Realtor before hand it will quicken the process.
2. Do not pay for online foreclosure site like Realtytrac. These are a waste of money. You are paying for the same list you can get from a Realtor for free and most of the time the list you are buying are badly outdated.
3. Use the sellers title company. Most banks contract out one company to do all their title insurance for that state. It will save you time and money if you use their title company. They will pay for their side of the title insurance and all searches and recordings. Remember banks have to clear title of all liens and back taxes before they sell.
4. Know what you are getting into. There is a lot of money to be made in foreclosures but you have to do it right. If this is your first one, get a home inspection or have someone bid the repairs to the property before you put an offer in. Check the house thoroughly. If there is no furnace or pipes you most likely are not going to be able to secure a loan on the property without a significant down payment.
5. Owner Occupants are king. The banks that own these properties want to have someone living in them. They will always give preference to owner occupants and even pay some of their closing costs. Not so much for investors.
6. Have your earnest money ready when making an offer. If possible have it in certified funds. This will convey to the bank you are a serious buyer.
7. Be open on your time lines. It usually takes 48-72hrs for banks to review the offers and get back. Be patient.
Wednesday, January 24, 2007
Pre- Listing Advice
Wow! What a weekend,Bears vs. Colts in the Super Bowl! I don't think I could be more happy at this time. Can't wait until next Sunday!
Well this week I would like to talk to sellers and give you some helpful advice to get your home ready for the market. The selling season really kicks into high gear after the Super Bowl, so it's time to get ready.
Today I would like to cover the presentation of your home. After you have chosen a Realtor (or decide to go By Owner) it is time to take a good long look at your home, you should do this before actually listing your house, and start to clean and finish all those projects you started.
Working with a Realtor can help give you some great ideas on what to do, at the very least have a neighbor or family member com over and take a look around. It always helps to get a fresh perspective from a different set of eyes.
1. Start outside! Most buyers will decide as soon as they drive by your home if they like it or not. Clean up all the clutter, keep the grass cut, add fresh mulch to flower beds, clean your gutters, trim your bushes and remove all dying plants. This time of year make sure your drive way and sidewalks are shoveled and salted.
First impressions are everything! Make it so people WANT to come in the home.
2. Inside clean like you've never cleaned before. Get all the hard to reach out of focus spots you can find and clean them. Believe me, buyers are going to look through everything, leave no stone unturned when cleaning.
3. Remove all the clutter. Make the house flow! If you are packing, keep all the boxes in one area, preferably a garage. Make it easy for the buyers to move through the house and look at everything.
4. Remove personal belongings. Less is more. You want to give the home a lived in, warm feeling without letting buyers get personally attached to you. Remove family photos and all the kids art work from the fridge.
5. Finally, keep all valuables locked up or hidden. This includes any prescription meds or personal information you may have out. Unfortunately not everyone has the best intentions.
These are just a few ideas to help get you started. If you would like more information, please email me at steve@stevjamrok.com or visit my website JamrokHomes.com to request a seller checklist.
Here's hoping for a great Super Bowl!
Well this week I would like to talk to sellers and give you some helpful advice to get your home ready for the market. The selling season really kicks into high gear after the Super Bowl, so it's time to get ready.
Today I would like to cover the presentation of your home. After you have chosen a Realtor (or decide to go By Owner) it is time to take a good long look at your home, you should do this before actually listing your house, and start to clean and finish all those projects you started.
Working with a Realtor can help give you some great ideas on what to do, at the very least have a neighbor or family member com over and take a look around. It always helps to get a fresh perspective from a different set of eyes.
1. Start outside! Most buyers will decide as soon as they drive by your home if they like it or not. Clean up all the clutter, keep the grass cut, add fresh mulch to flower beds, clean your gutters, trim your bushes and remove all dying plants. This time of year make sure your drive way and sidewalks are shoveled and salted.
First impressions are everything! Make it so people WANT to come in the home.
2. Inside clean like you've never cleaned before. Get all the hard to reach out of focus spots you can find and clean them. Believe me, buyers are going to look through everything, leave no stone unturned when cleaning.
3. Remove all the clutter. Make the house flow! If you are packing, keep all the boxes in one area, preferably a garage. Make it easy for the buyers to move through the house and look at everything.
4. Remove personal belongings. Less is more. You want to give the home a lived in, warm feeling without letting buyers get personally attached to you. Remove family photos and all the kids art work from the fridge.
5. Finally, keep all valuables locked up or hidden. This includes any prescription meds or personal information you may have out. Unfortunately not everyone has the best intentions.
These are just a few ideas to help get you started. If you would like more information, please email me at steve@stevjamrok.com or visit my website JamrokHomes.com to request a seller checklist.
Here's hoping for a great Super Bowl!
Wow! What a weekend,Bears vs. Colts in the Super Bowl! I don't think I could be more happy at this time. Can't wait until next Sunday!
Well this week I would like to talk to sellers and give you some helpful advice to get your home ready for the market. The selling season really kicks into high gear after the Super Bowl, so it's time to get ready.
Today I would like to cover the presentation of your home. After you have chosen a Realtor (or decide to go By Owner) it is time to take a good long look at your home, you should do this before actually listing your house, and start to clean and finish all those projects you started.
Working with a Realtor can help give you some great ideas on what to do, at the very least have a neighbor or family member com over and take a look around. It always helps to get a fresh perspective from a different set of eyes.
1. Start outside! Most buyers will decide as soon as they drive by your home if they like it or not. Clean up all the clutter, keep the grass cut, add fresh mulch to flower beds, clean your gutters, trim your bushes and remove all dying plants. This time of year make sure your drive way and sidewalks are shoveled and salted.
First impressions are everything! Make it so people WANT to come in the home.
2. Inside clean like you've never cleaned before. Get all the hard to reach out of focus spots you can find and clean them. Believe me, buyers are going to look through everything, leave no stone unturned when cleaning.
3. Remove all the clutter. Make the house flow! If you are packing, keep all the boxes in one area, preferably a garage. Make it easy for the buyers to move through the house and look at everything.
4. Remove personal belongings. Less is more. You want to give the home a lived in, warm feeling without letting buyers get personally attached to you. Remove family photos and all the kids art work from the fridge.
5. Finally, keep all valuables locked up or hidden. This includes any prescription meds or personal information you may have out. Unfortunately not everyone has the best intentions.
These are just a few ideas to help get you started. If you would like more information, please email me at steve@stevjamrok.com or visit my website JamrokHomes.com to request a seller checklist.
Here's hoping for a great Super Bowl!
Well this week I would like to talk to sellers and give you some helpful advice to get your home ready for the market. The selling season really kicks into high gear after the Super Bowl, so it's time to get ready.
Today I would like to cover the presentation of your home. After you have chosen a Realtor (or decide to go By Owner) it is time to take a good long look at your home, you should do this before actually listing your house, and start to clean and finish all those projects you started.
Working with a Realtor can help give you some great ideas on what to do, at the very least have a neighbor or family member com over and take a look around. It always helps to get a fresh perspective from a different set of eyes.
1. Start outside! Most buyers will decide as soon as they drive by your home if they like it or not. Clean up all the clutter, keep the grass cut, add fresh mulch to flower beds, clean your gutters, trim your bushes and remove all dying plants. This time of year make sure your drive way and sidewalks are shoveled and salted.
First impressions are everything! Make it so people WANT to come in the home.
2. Inside clean like you've never cleaned before. Get all the hard to reach out of focus spots you can find and clean them. Believe me, buyers are going to look through everything, leave no stone unturned when cleaning.
3. Remove all the clutter. Make the house flow! If you are packing, keep all the boxes in one area, preferably a garage. Make it easy for the buyers to move through the house and look at everything.
4. Remove personal belongings. Less is more. You want to give the home a lived in, warm feeling without letting buyers get personally attached to you. Remove family photos and all the kids art work from the fridge.
5. Finally, keep all valuables locked up or hidden. This includes any prescription meds or personal information you may have out. Unfortunately not everyone has the best intentions.
These are just a few ideas to help get you started. If you would like more information, please email me at steve@stevjamrok.com or visit my website JamrokHomes.com to request a seller checklist.
Here's hoping for a great Super Bowl!
Tuesday, January 16, 2007
It's That Time of Year!
Well I am a little late with this entry, between the Holidays and the Bears in the playoffs, I did get a little sidetracked. With the new year comes the fresh home buying and selling season, and whether your buying or selling, it is time to start getting ready. Over the next couple of weeks I will be posting advice on getting your home ready for sale, keeping it "show ready", advice for first time buyers, buyers looking for a new home and more.
Today I will focus on something that does get overlooked quite a bit- choosing a Realtor. Since most buyers and sellers will end up using a Real Estate Agent, how do you choose who to go for?
I am always shocked at how many calls I get from customers who want to look at a house and will see it with the first person who answers the phone. Whether you are buying or selling here are some tips when choosing a Realtor to work with.
1. Meet the Realtor before hand. This is an interview for the Realtor. What are they going to bring to the table for you.
2. Make sure you like the Realtor. This is a huge financial deal you are going to make and it could get stressful at times. Believe me, it will go a whole lot smoother if you feel comfortable with your agent.
3.Be aware what you are getting with Realtor "Teams". These are groups of agents that work together. The concept is good, but be advised you are most likely going to be talking with different people throughout the transaction. The person who handles your paperwork most likely will not be the same person who showed you the house or was at the listing appointment.
4. Try and deal with a full time agent. When you need your agent the most are they going to be there for you or do they have another job or priority that comes first?
Remember, the average transaction takes 30-45 days to close and the average time on market in Northwest Indiana is 60-90 days, so not only are you working with this agent you are going to develop a relationship with them. Meet them before hand and make sure you "click".
Today I will focus on something that does get overlooked quite a bit- choosing a Realtor. Since most buyers and sellers will end up using a Real Estate Agent, how do you choose who to go for?
I am always shocked at how many calls I get from customers who want to look at a house and will see it with the first person who answers the phone. Whether you are buying or selling here are some tips when choosing a Realtor to work with.
1. Meet the Realtor before hand. This is an interview for the Realtor. What are they going to bring to the table for you.
2. Make sure you like the Realtor. This is a huge financial deal you are going to make and it could get stressful at times. Believe me, it will go a whole lot smoother if you feel comfortable with your agent.
3.Be aware what you are getting with Realtor "Teams". These are groups of agents that work together. The concept is good, but be advised you are most likely going to be talking with different people throughout the transaction. The person who handles your paperwork most likely will not be the same person who showed you the house or was at the listing appointment.
4. Try and deal with a full time agent. When you need your agent the most are they going to be there for you or do they have another job or priority that comes first?
Remember, the average transaction takes 30-45 days to close and the average time on market in Northwest Indiana is 60-90 days, so not only are you working with this agent you are going to develop a relationship with them. Meet them before hand and make sure you "click".
Subscribe to:
Posts (Atom)
