RE/MAX BRAVO - Our Agents Make The Difference - Homes and Real Estate in Fredericksburg, Virginia

Todays real estate market, at least here in Fredericksburg VA, is moving along at a pretty good clip. We put a home on the market Friday, and by Monday we had 10 offers. 4 of them were cash.

The next step was to get the Highest & Best offer from each potential buyer; this is pretty standard practice when selling a bank foreclosure.

We sent out the request via email, and the responses started pouring in. 7 of them. Still missing 3. Being a nice guy, I call. First agent - they were “at their job” and had not checked their email. Second agent - had not been into the office yet to check their email. Oh - this was at 4:00 PM. Third agent - no answer - I never got a call back.

So out of the 10 offers received, we get 7 responses. 3 agents - cut out right away. Missed their chance. Oh, wait a minute. It was not their chance. It was their clients chance. Their client is the one who lost. Wrote a contract on a house, and got kicked out. All because they did not answer their phone or check their email.

Todays real estate market moves in minutes, not in hours, and certainly not in days. The agent that does not have a smart phone to get email, or has “a job” and only does real estate part time is at a severe disadvantage. Their client may find themselves in an even worse position. They may lose out on a house.

Kevin McGrath - Broker Owner

          www.fredva.com

Foreclosures come in all shapes, sizes, and more importantly, conditions. When shopping for your new home, you may come across a foreclosure that is in like new, mint condition. I have been in a few that I could swear have never been lived in. But a far more likely scenario is that a foreclosure will be in some state of disrepair. Whether it be merely that it needs carpet and paint, or if there are some plumbing or electrical issues. Maybe the refregerator is missing; this is pretty common. Now, keeping in mind that real estate that falls into the forclosure catagory is generally sold “as-is”, meaning what you see is what you get, there are sometimes other options.

Let’s say you wrote an offer on a foreclosure, the offer was accepted, everyone signed, the contract is ratified (basically meaning that all parties have had a meeting of the minds, signed, and everyone has a copy). Now most banks let you do an inspection, within a reasonable period of time, which is of course spelled out in the contract. So let’s assume that all this has happened, and that you are out there on a Saturday morning, and your home inspector gives you the report which lists some roof repairs and a couple of plumbing issues. Now you are standing there thinking “oh man, this place is sold as-is, and now I have to pay for all of these repairs.” Maybe, but maybe not. Never hurts to ask, but how you ask can be the key.

Banks like it easy. Asset managers, the people who really do all the work managing these foreclosed properties, are doing all that they can to keep up with their workload. You want to make it easy for them.

#1. Get two estimates for the work needed. Make sure that they are nice clean copies.
#2. Give the seller the estimates, the inspection report, and an addendum asking for a credit at closing based on the estimates. Your Realtor will know how to handle all of this.

Now you have done a couple of things. You have provided clear information related to your request, you have provided an estimate of the cost, and you have basically said to them “I’ll take care of it if you will just help me out a little with the cost.”

Now - very important - make it a reasonable request. If you go in asking for $10,000 in repairs on a $75,000 house, I am not liking your chances. And the seller (Bank) could still come back and say “sorry - sold as-is.” But if you go in with a reasonable request, well documentated and uncomplicated, you never know what might happen, and you just might save a buck.

Kevin McGrath - Broker Owner
RE/MAX BRAVO
www.fredva.com
Licensed In The State Of Virginia

There is an interesting article in today’s Washington Post by Derek Kravitz. “Ex-Owners Turning Aggressive in Efforts to Resist Leaving”

The article talks about how many owners or occupants of homes that have been foreclosed on here in Virginia are finding creating and sometimes desperate ways to stay in the homes. I can see how this could happen; I can only imagine the steps I might take if I was looking at my family being out on the street.

The article also talks about how “squatters”  have taken up residence in many of these homes. I can see how this could happen, but I will submit that this is probably the exception, not the norm. There are certain steps that should reduce the chance of this happening. When the bank takes possession of a home at foreclosure, they send a representative, usually two, out to check the occupancy status of the property. The representative, sometimes a Realtor and sometimes a securing vendor contracted by the bank, checks the occupancy and reports back to the bank. If it is vacant, the property is secured, the grass is cut, the home is cleaned up, valuations are completed, and within a few weeks the property is on the market. During the entire process, Realtors have the responsibility as an agent for the bank is to conduct weekly checks on the properties. If there were squatters in any one of my properties, I would know about it pretty quickly.

But here is how it could happen, and I have not been able to figure out why the banks are letting this happen. All you have to do is read the paper and you can easily see that there is an enourmous number of foreclosures happening on a daily basis. But if you are a buyer in today’s market you also know that most of the inventory out there right now is not exactly the cream of the crop. This has happened for various reasons, some of which I am sure I am not privy to, but one of them is that a number of banks recently laid down a moratirium on foreclosures, meaning they ceased all action. These is one problem with this; while this moratorium may have certainly kept some families in there homes, even if only for the short term, there is a large number of these homes that are already vacant. Stopping the foreclosure process on a home that has already been abandoned does not help anyone. Not the family that used to live there. Not the community that is watching their values plummet like a stone in a pond. And certainly not the stock holders of the bank, as the bank will now spend what could amount to many thousands of dollars on a rehab and mold remediation project that might never have been necessary. For some reason, when the banks decided to enact a moratorium on foreclosures, they seemed to have done it as if there were trying carpet bomb the enemy, rather than actually attack each problem with a specific solution. In trying to come up with a plan to keep people in their homes, they also left a huge number of vacant and abandoned homes out there that are falling apart almost as we watch.

Kevin McGrath - Broker/Owner
RE/MAX BRAVO
Spotsylvania, VA 22553
www.fredva.com

Buying a foreclosure can be a great deal. It can also be a frustrating experience if you don’t have the right information when you make your offer.

Here are a few quick tips.

1. A larger deposit is better. The seller (bank) feels more secure. They feel like there is less of a chance that you will back out. In the end, it may not really matter as there are many ways to get out of a real estate contract in Virginia.

2. A shorter close date is better. If possible, make the close date on your offer no later than the 25th or 26th of the month. Asset Managers, who are the ones that really run the foreclosure business, get paid on closings that fund by the end of the month. If you close on the 29th or 30th, it does not leave enough time for that to happen.

3. Cash is best. Conventional Financing is the next best. FHA is next, then VA financing. Why? Cash is clean, and no appriasal is required. Conventional financing offers the next best option in terms of how easy it is to get the loan completed; there are fewer restrictions on the borrower and on the condition of the property. FHA and VA - hang on. A long list of requirements as to the condition of the property and repairs that may be required.

It may be a good idea to consider all of the above when making an offer, especially if you really love the house; if you love the Murphey’s Law may rear it’s head and someone else may love it to. Now you are in a competing offer situation, and you want to do all that you can to make your offer look better than any others.

Please be sure to consult your Realtor for more information. If you don’t have one, give an agent at RE/MAX BRAVO a call and they will be more than glad to help.

Kevin McGrath

RE/MAX BRAVO - Broker/Owner

Fredericksburg Virginia

www.fredva.com

Licensed in the State of Virginia

In a volatile real estate market, it’s more important than ever to find the best real estate agent in your market.  Whether you are buying a home, considering selling your home, exploring a short sale or investing in foreclosure, you need a GREAT Realtor.  Let me make it clear…you need a GREAT agent, not a good agent.  What makes a real estate agent GREAT?  As one of the Owner/Brokers at RE/MAX Bravo in Fredericksburg, VA, my partner, Kevin McGrath, and I look for the following traits when recruiting agents for our office.  As a buyer or seller, you should look for the same.

A GREAT Real Estate Agent –

1)…is passionate about real estate, has an unmatched work ethic and possesses a certain “energy” that distinguishes them from the competition

2)…focuses on his or her client’s best interests and works full-time in their business

3)…is an expert in real estate.  A GREAT agent is knowledgeable on all aspects of the market and has numerous designations, certifications, attends training classes, reads business books and constantly seeks to be the best

4)…answers their phones and returns any calls immediately (same day and usually within the hour)

5)…is readily available and eager to work

6)…actively markets themselves on the Internet (website, facebook, blogs, Realtor.com, etc.) and actively prospects for new business

7)…is “connected“.  That is, a GREAT agent is always receiving and responding to your e-mails and test messages throughout the day.  It’s not unusual for GREAT agents to check and respond to their e-mail and text messages from 6AM-10PM every day. Smartphones and wireless technology gives GREAT agents the tools they need to do GREAT work

8)…actively markets their listings on the Internet and in print advertising.  A GREAT agent takes GREAT pictures of their properties (or hires someone who can)

9)…has a GREAT reputation and receives a lot of personal referrals

10)…is involved in the community (schools, non-profits, serves on committees and boards, church, sports)

11)…is easy to work with, has a pleasant personality, is a team player, and gives you GREAT guidance

12)…has received rewards and recognition as a Realtor (even if their award is “Rookie of the Year”

13)…treats real estate like a business instead of a hobby and increases his/her business 10-20% each year, seeking new business, personal referrals and corporate relocation clients

14)…has a GREAT work environment.  Whether working from their home office or in their brokerage, a GREAT agent has a supportive broker/owner/manager and a GREAT office atmosphere where agents are encouraged to build their business and thrive

The bottom line is, you and your agent have to be a GREAT fit for each other and work in a concerted effort to meet your real estate needs.  Do your research, ask questions, and interview before committing.  A GREAT real estate agent with a proven track record and a GREAT work ethic, will exceed your expectations making it easy for you to refer your Realtor to others.  

Jane Wallace, Owner/Broker

RE/MAX Bravo

jwallace@remax.net

www.FREDVA.com

Licensed in the Commonwealth of Virginia

Serving Northern Virginia, the Greater Fredericksburg Area and Richmond

As a former Public Relations Director, I’ve learned that the media can be a double-edged sword.  Frequently misquoted, I came to dread the interview process over the years when I was working with the media in the Swimwear industry.  Well…I’m starting to have faith in the media again.  

I was interviewed at the begining of the week for an article about short sales in Fredericksburg’s Free Lance Star.  I was thrilled to read today’s article LENDERS BENDING TO AVOID FORECLOSURE.  Well written and accurately reported by Bill Freehling, this experience has me hoping that the real estate industry and the media can work together to help “fix” our housing crisis.  

Bill did an excellent job of covering the subject and hopefully many homeowners facing foreclosure will see there are options for them.  Loan modification and short sales are the answer to making some progress in normalizing the market once again.  

Kudos to Bill Freehling and the Free Lance Star for helping our community become aware of ways to possibly avoid foreclosure.

Best regards,

Jane Wallace, Owner/Broker

RE/MAX Bravo

jwallace@remax.net

www.FREDVA.com

Spotsylvania, VA  22553

Licensed in the Commonwealth of Virginia

Every day I’m asked “Has the housing market hit bottom?”  Doesn’t matter who is asking the question–investors, first-time home buyers, empty-nesters, etc–my answer is always the same.  In my opinion, we have a minimum of 10% more to go but it could be as much as another 30-40% decline in prices especially if the new wave of foreclosures and unsuccessful short sales hit the market.  The banks are estimating that 50% of the phantom inventory out there will end up in foreclosure and the remainder in loss mitigation will successfully do a loan modification or short sale.   I’m encouraging my clients to take advantage of the numerous options in the housing market.  If you’re a seller who is under water or upside down, work diligently with your lender to modify your loan.  Bargain hard.  I recently heard of a bank “forgiving” the second mortgage–entirely!  I’m closing on a short sale next week that the bank is “forgiving” approximately $320,000 of a loan (over half the principal balance).  If there was ever a time to dig out of debt, now’s the time.  If you’re a buyer, plan for a further decline when putting your offer together but make it a “reasonable” offer.  If there are competing offers on a property, chances are the negotiated sales price will be higher than the list price.  Sellers, please note…price your property competitively and hopefully you’ll get multiple offers.

With all this discounting going on in the market, prices are definitely going to continue to decline so “the bottom” isn’t here yet.  Let’s move this market!   Find a great Realtor and work together to help stimulate the housing market.

Jane Wallace, Owner/Broker

RE/MAX Bravo

jwallace@remax.net

www.FREDVA.com

540.891.8888 x128 office

Licensed in Virginia

Serving Northern Virginia, the Greater Fredericksburg Area and Richmond

Here is an interesting article in today’s Washington Post regarding the red tape involved in the purchase of a foreclosed home here in the Washington DC area, and prettymuch everywhere else.

Foreclosure Sales Stalled by Red Tape

As all agents who are experienced in the selling of REO’s (Real Estate Owned) know, foreclosures do not, as a rule, seem to close on time. In the article mentioned above, I kept going back to to the section that mentioned the moving truck and how the family was all ready to move in, and how they could not get to closing on time, and how hard it was on them.

I can believe it. But either their Realtor did not properly prepare them, or they did not listen. When buying a forclosure, never, and I repeat, never put your stuff in a truck until you have closed and the deed has been recorded at the local courthouse. Buying a home that is a forclosure is different. There are a myriad of issues that can and do rise up and show themsleves at the last minute, which often means a delay in closing.

Foreclosure’s can be a great buy, but listen to your Realtor, and make sure you have the right one.

Kevin McGrath

RE/MAX BRAVO - Fredericksburg Virginia

www.fredva.com

Short Sales. Foreclosures. Which is worse on a persons credit rating?

Recently I was watching a program on one of the major news networks, and an “expert” was explaining how a Short Sale was just as bad on a persons credit rating as a Foreclosure.

Maybe, but maybe not? If a person is Foreclosed on, I would assume that it goes on a credit report as just that; a Foreclosure.

But what if it is a Short Sale? Let’s say you got it on the market, priced it right, and sold it quick. And you had good communication with the lender. You got all of this done, and you got it closed, and the owner was only 60 days behind. Or even 90 days.

Which is worse on a credit report? A Foreclosure, or a 60 or 90 day late?