The Property - all the types!

(Part three of a five part series)
If you are a seller, the value is dictated to a degree, these days on how financially sound YOU are (see previous post)! If you are current on your mortgage do not have financial distress, have been ‘smart’ about keeping the property maintained and updated, you should be able to get a decent price as long as you are not in a big hurry.

On the other hand if you are financially troubled, lost your job, behind in payments, (see previous post), expect to basically hand over the keys and have enough for a rental deposit.
Beyond all that, the basics still apply. Great location - it sells itself!
Shows great maintenance, fresh, pristine - it sells itself.
Well designed, color choices, décor/staging - it sells itself.

The days of sticking a sign on the front and counting on a buyers foresight of potential is gone for the time being.
I do see multiple offers but this is mostly on REO’s (Bank owned) that have been deeply discounted.

---Foreclosures, Short Sales, REO’s (Bank owned)

A key aspect of these properties is location/neighborhood - what’s going on with the rest of it!!!

The major issue I want to bring forward in this posting is to make you aware that these properties are more often than not, damaged goods. Many owners that are losing their houses don’t want anyone else to reap the benefits of a ‘cheaper’ home. I has become common for the last weeks of possession, owners destroy their houses. Sheetrock is sledge hammered, plumbing is ripped out, cement flushed down toilet, windows broken, cabinets sledged hammered -- ehh- you get the picture! If I can’t benefit from this no one will!
Then there are the hidden defects, things you don’t see. If you are pursuing Foreclosures/short sales - watch out!!
The tax liens, HOA dues and/or taxes in arrears, mechanics liens, and recorded judgments and deed restrictions that could jeopardize the value of your BARGIN! All of these things follow the property and the new owner can very easily be haunted by such for years.

REO’s are the safest of the bunch to pursue. The Lending institution provides the cleanest transaction. Taxes and HOA have been paid and you usually get a clear title. They typically hire a maintenance and repair Co. to do a basic clean-up. They will remove all the damaged members of the property board-up windows, change locks to make the property pretty secure. The new owner usually has a project to remedy for that 50%+ discount they have secured. Again, the wisest thing to do is get help from a professional, this is the biggest investment in your life!

The Sellers (part two of a 5 part series)

There are the two basic categories -

Non-distressed and DISTRESSED

It makes a BIG difference which one you are in.

If you are clinging on by your fingernails to put food on the table and keep a roof over your head, there are those that can sniff you out and go for the jugular. Usually when that Notice of Default is filed, this is a clear sign.
I have seen how quickly word gets out when someone is down and the sharks begin to circle. By the way - this is a DISTRESSED SELLER.

For you just regular, keeping it together, sellers take heed.
This is the real world and unless you have a ‘Golden Goose’ in the backyard, you should act quickly, price your home competitively and pray! It is a wild ride right now in what determines which property sells and which one sits. Be smart, stage it, and mentally
move out!

There are factors out of your control and with more and more foreclosed homes due to come on the market, the banks making it very hard for the qualified borrower to get that loan, you will have to have a mountain of patience and a Real Estate Broker that is experienced and connected to many excellent resources. Hmmm … who could that be?
I don’t mean to make light of this situation BUT … until the tide turns having a concise plan of action laid out is the all important first step.
To get there, a pointed consultation with an Experience Real Estate Profession will make all the difference!!
(to be continued ….)