FORECLOSURES IN LOUDOUN COUNTY VA. NEWS FLASH FOR HOME BUYERS SEEKING THE DEAL OF THE CENTURY WHEN CONSIDERING A FORECLOSURE - THE BANK DOESN'T CARE!!

By
Real Estate Agent with Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate 303829;0225082372
http://actvra.in/lnx

FORECLOSURES IN LOUDOUN COUNTY VA - HELP FOR HOME BUYERS.

NEWS FLASH FOR HOME BUYERS SEEKING THE DEAL OF THE CENTURY WHEN CONSIDERING A FORECLOSURE - - -

THE BANK DOESN'T CARE!!

BUYING FORECLOSURES IS NOT THAT DIFFERENT FROM BUYING A HOME OWNER SALE.  Except that can be a lot easier, if home buyers will let it be.  Why???

Because the bank owner seller has no emotional attachment to the property for sale.  In the minds of the bank employees who process these sales, REO sales, a property is merely an "asset".  It has never been their "home".  The don't see the property.  They deal with documents and numbers. 

Because the bank-owner has obtained expert real estate professionals to provide them with valuations for that property based on viewing the property, comparing the property to other recent sales and then price that property without any emotion, without any interest in the opinions of neighbors.  Banks don't really SELL properties in their portfolio, they DISPOSE OF ASSETS.

Because the bank owner doesn't have to remove furniture, pack up to move, etc. and is interested in closing the sale and "disposing of the asset" as quickly as possible

Because the bank will already have performed a title search when they foreclosed and will convey clear title at a lower cost to you, the buyer closing will be less costly if you agent isn't trying to steer closing.  Closing on a foreclosure is not going to be threatened by last minute title problems seen on home owner sales such as tax liens, negative equity, short sale approvals, commercial paper liens, undisclosed equity lines, seller bankruptcy filings and other problems often associated with distressed property sales by home owners.  Don't fight the bank when they want to pre-approve your ability to buy.  Often the bank will offer advantagous financing.  Look at the bottom line. 

THE BANK DOESN'T CARE!!

Home buyers who seek to buy bank owned property for sale, otherwise known as REOs or Foreclosures, often believe that, because they are foreclosures, the buyer can buy that property for a fraction of the list price.  Rarely is that going to happen because. . . . .

The property is priced with input from experienced real estate agents or appraisers. 
The price is generally ALREADY DISCOUNTED from market value when listed.
The average home buyer is buying a home in which to live, not for investment.
The home buyer who needs financing is competing with CASH INVESTMENT BUYERS.
The average home buyers often offer low thinking they can negotiate the price down from list.
Home buyers who believe that a listing agent will advocate for a lower price are wrong.

        THE BANK DOESN'T CARE!!

THE BANK DOESN'T CARE.  The bank officials who manages the Asset Disposal Dept. has never seen the property.  They have no emotional attachment to that house.  Bank employees rely on their experts for pricing information.  The bank does not HAVE A MORTGGE PAYMENT COMING DUE and can hold the property on the market until they get an offer that will produce an acceptable net proceeds.  

THE BANK OWNER HAS A BOTTOM LINE THAT THEY HAVE ALREADY DETERMINED THEY WILL ACCEPT.  Home buyers who think that the bank is interested in disposing of that asset at any cost are simply losing time giving competing buyers an opportunity to present an acceptable offer.

If you find a bank owned property that you wish to buy,


Pay attention to prior sale prices in the neighborhood. 
Don't expect to discount the price for condition, the bank has probably already done that.
Make sure that the bank has title and can close quickly.  Many bank owners will not make repairs.  Some will.
Ignore friends and relative who say you can get a foreclosure for a fraction of list price.
Make sure the offer is complete with a good pre-approval letter from a lender who can fund the loan.
Plan on a 30-45 day closing but get inspections done quickly.
Present a clean offer with as few contingencies as possible. 

Don't ask your agent to contact the listing agent for daily status.  The banks don't work that way.

If a home buyer is interested in buying a home as a discounted price, considering bank owned properties is smart.  However, the buyer MUST be realistic and understand that the seller is a corporation that makes decisions by commitee with advice from expert agents, appraisers, attorneys and don't forget. . .

THE BANK DOESN'T CARE!!

 

                               Home Buyers

 

"Honey, I'm so glad we listened to our agent and made a good offer on this home.
"I agree Dear, our agent had the facts to show that it was priced right.  We beat everyone."

View ALL bank owned properties for sale in Loudoun County VA as of October 16, 2011 HERE.

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

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

 

EXPERIENCED HELP FOR HOME BUYERS IN LOUDOUN COUNTY VA. 

NEVER A FEE TO HOME BUYERS.  Sellers (including builders) pay us 3% to sell
their listing.  Homefinders.com REBATES 1/3 or 1% to you (buyer) at closing.

LennWE CAN HELP!! 

CONTACT USWe are Loudoun County residents (Lovettsville) and belong to the Loudoun County Association of Realtors (DAAR).  We know the Loudoun County real estate market and understand property values, new and resales. 

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

More Loudoun County Real Estate information below, just click the title for more.

Experience counts and Lenn has been working with home buyers to help them find their home of choice for over 30 years. 

HOMEFINDERS VIDEO  

LOUDOUN COUNTY REAL ESTATE INFORMATION
Loudoun County Homes
Loudoun County Real Estate Tour

Leesburg Real Estate Information
Lovettsville Homes for Sale
Loudoun County New Homes
Videos on YouTube for Homes for sale in MD/VA
Homes for sale throughout Maryland and Northern Virginia
 

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Re-Blogged 11 times:

Re-Blogged By Re-Blogged At
  1. Jeanne & Ralph Janisch ABR CRS Brokers 10/16/2011 09:40 AM
  2. John Juarez 10/16/2011 11:56 AM
  3. Kathy Sheehan 10/16/2011 06:11 PM
  4. Chuck Carstensen 10/17/2011 08:56 AM
  5. Scott Guay 10/17/2011 10:25 AM
  6. Nettie Carnett - Kennedy 10/17/2011 11:11 AM
  7. Michael Blue 10/17/2011 02:21 PM
  8. Jane & Jeff Daley, PhD 10/17/2011 04:01 PM
  9. Judy Luna 10/17/2011 09:04 PM
  10. Gene Riemenschneider 10/18/2011 03:25 PM
  11. Barbara-Jo Roberts Berberi & Corinna Birgit Cromartie 10/20/2011 11:28 AM
Topic:
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Show All Comments
Rainer
93,816
Bill Gustafson
RE/MAX Marathon Vacation Real Estate - Key Colony Beach, FL

Lenn, The best post I've seen on REO properties ...

Oct 17, 2011 11:43 AM #51
Rainmaker
67,833
Edith Schreiber
Luxury Homes, Move Up Buyers, 1st Time Homebuyers, New Construction - Dallas, TX
Dallas Area Real Estate

Great post & great info!

I work as a Buyer Agent on a team that specializes in the listing & selling of foreclosure properties - 99.99999% of the time, the buyers DO think that just because it is a foreclosure, they will get it for a fraction of the list price.

I have the same dialogue with the buyers about the sellers having zero emotional attachment to the property, and that it is nothing but a "bricks & sticks" asset to them.

Not sure where the buyers get the idea about making offers at the price they decide on - perhaps the national media...??? Real estate is LOCAL!!!!

Thanks again for the great post!

Oct 17, 2011 12:16 PM #52
Rainmaker
226,959
Michael Blue
Home Smart Realty West - Encinitas, CA
REALTOR - 760-889-8877, Encinitas/Carlsbad

Lenn- This time you have made me very happy!  It's not a bash the listing agent blog...again.  With that said the one item you may have left out...and it's because of all the info you posted...make sure the buyers agent has REO buy side experience (should know the items you listed).  Many do not have any idea of your list of "how this works".  On the offer forms we send to the servicer or lender is a comment section.  In this section I will make comments about the buyer and agent on the "understanding of your aformentioned tidbits".  I am going to reblog for my area and credit you with a link back to you. 

Good job, reallly.

Oct 17, 2011 02:02 PM #53
Rainmaker
226,959
Michael Blue
Home Smart Realty West - Encinitas, CA
REALTOR - 760-889-8877, Encinitas/Carlsbad

By the way, they do care about disposing the asset quickly, with the least amoung of problems and for the best deal they can get.  

Oct 17, 2011 02:12 PM #54
Rainmaker
134,415
Paul Francis
Prudential Americana Group - REALTORS - Las Vegas, NV
Las Vegas Real Estate - Summerlin Homes - 702.592.

Nice!

"Don't expect to discount the price for condition, the bank has probably already done that."

One of the biggest misconceptions from buyers in our area is that they are going to get the best deal with an REO.

Oct 17, 2011 02:16 PM #55
Ambassador
2,390,932
Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

Jeff.  HA!  As much "as the agents will let them" is the key.

Carolyn.  Unbelievable, but I believe it.

Jeremy.  Thanks.  I tried. 

Alan.  Too complicated to comment but is sounds like a title search screw-up.

Weichert.  Buyer must pay attention to agent provided comps or the agent is just donating time.

David.  Indeed.  I expect licensees to understand the valuation process.  I don't expect that from banks.

Phil.  HA!  Of course, you know the story is gospel.

Cindy.  Be my guest.  Fact is, bank owned properties are DISCOUNTED FOR CONDITION.

Anna.  And you will not.

Kimo.  Their hope will spring eternal.

Chris.  Agents have to put a stop to writing multiple offers for buyers. 

Cathy.  Buyers simply do not understand anything about real estate sales.  They're not expected to.  What agents have to do is drop the ones who are more interesting in negotiating than buying a good home.

Bill G. THANK YOU.

Edith.  I believe they get their info from "foreclosure lists for sale", late night TV, etc.

Michael.  Thanks.  I've been representing buyers in REO sales for decades.  The glut of foreclosures today adds some problems with banks in that they are getting multiple offers and haven't a clue how to handle them.  Agents have to remember that the bank reps are not licensed agents or Realtors and all work for the bank who works for the stockholders.

Michael.  I learned many years ago that you don't always have to have the highest bit.  Often the most well prepared documents, contract, etc., the best pre-approval letter, a buyer's financial statement, the fewer contingencies and neatness counts will often be awarded the contract. 

Paul.  That is pervasive everywhere.

 

 

 

 

 

Oct 17, 2011 06:25 PM #56
Rainmaker
47,154
Judy Luna
Keller Williams Market Pro Realty - Fayetteville, AR
Technology with a Personal Touch

Thanks for this blog Lenn. I work mostly with buyers in NW Arkansas and you have hit the nail on the head. I have reblogged your post.

Oct 17, 2011 09:09 PM #57
Rainer
35,503
House Sale Advisors Lancaster and Lebanon Counties PA
House Sale Advisors - Quarryville, PA

I love your directness! Sometimes consumers need to hear it just like that. Direct. We've been dealing with some Buyers who are fine people, but who are so focused on what THEY want that they have lost touch with what the other side of the transaction will do.

Oct 17, 2011 10:44 PM #58
Rainmaker
636,109
Stephanie/Bob The Ruiz/Miller Team
Keller Williams Cornerstone Realty - Ocala, FL
The Ocala Dream Team

Hi Lenn,  I love it!  the same for short sales "THE BANK DOESN'T CARE!!"

Oct 18, 2011 12:50 PM #59
Ambassador
2,390,932
Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

Judy.  Hope it helps.

Mark and Gerry.  Indeed and whether the buyers know it or not, the bank doesn't care.

Bob.  Absolutely,  I'll trackle that syndrome on another day.

Oct 18, 2011 02:13 PM #60
Rainmaker
1,262,937
Gene Riemenschneider
Home Point Real Estate - Brentwood, CA
Turning Houses into Homes

Mandatory reading for anyone thinking of buying a home.  There are lots of advantages to buying bank owned. Price may not be the main one.

Oct 18, 2011 03:14 PM #61
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Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

Gene.  Prices are good, but not give-aways.  Sadly, that's what many consumers seek.

Oct 18, 2011 06:38 PM #62
Rainer
113,160
Beverly Femia
Coldwell Banker Sea Coast Advantage - Hampstead, NC
Broker Realtor Stager - Greater Wilmington, NC Are

Lenn, Oh so true and nothing I can think of to add since you covered everything so well.  It is the perfect tagline to use with foreclosure seekers. 

Oct 18, 2011 11:00 PM #63
Rainer
120,097
Monique Ting
INET Realty Honolulu, HI - Honolulu, HI
S, e-PRO, SFR

Very well written! We agents are well aware of that but the general public is not! A buyer considering a REO property should be reminded of these facts..

Oct 19, 2011 03:01 AM #64
Ambassador
2,390,932
Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

Beverly.  Thanks.  It's my experience.

Monique.  The public believes that banks want to give the foreclosures away.  Not so.

Oct 20, 2011 05:22 AM #65
Ambassador
899,829
Dagny Eason
Dagny's Real Estate - Wilton, CT
Fairfield County CT, CDPE Homes For Sale and Condo

Lenn-  I am speaking to a group this morning about foreclosures and short sales - I'll bet everyone in the room believes the banks care!

Oct 22, 2011 09:01 AM #66
Ambassador
2,390,932
Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

Dagny.  I wouldn't take that bet.  Take a poll before your presentation and see what they say.

Oct 22, 2011 09:07 AM #67
Rainer
35,503
House Sale Advisors Lancaster and Lebanon Counties PA
House Sale Advisors - Quarryville, PA

@Michael Blue. You make an excellent point about the transaction going smoother with a Buyers' Agent who has buy side experience! However, Since we only get the buyers (and Agents) that come to us in reality, I'd say it's worth our while to hold their hand and assist them through the process. (IMHO)

-Mark

Oct 24, 2011 08:27 PM #68
Rainmaker
359,193
Sylvie Stuart
Keller Williams Check Realty 928-600-2765 - Flagstaff, AZ
Home Buying, Home Selling and Investment - Flagstaff, AZ

There is a mentality out there that you can low ball these foreclosures and get a steal. You can get a great deal, yes, but not a steal. If you low ball you won't even get responded to. 

Mar 27, 2012 05:41 AM #69
Ambassador
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Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

Sylvia.  We have very few foreclosures.  Most are going to sell for more than list.  The "wanna-be" investor buyers is going to be disappointed.

Mar 27, 2012 01:56 PM #70
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Lenn Harley

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