Something for work
Been a while since I have posted anything here so I thought that I would start posting my monthly mailer I send out to clients and friends. If anyone has questions or comments on any of this, plese feel free. I'll start with June 2008.
BEST!
Henry
June 2008
Henry P. Tietz
Hello Friend
June is here and summer is off to a GREAT start. This is the month of Dads and Grads so keep that in mind if you need to ship off a card or gift for someone. Happy Fathers Day, Dad.
With the real estate market in a bit of an up-swing from all the short-sales and foreclosures, buyers have the upper hand when dealing with a seller. The large numbers of homes for sale are giving buyers a greater bargaining tool to negotiate a lower price and the bank-owned (foreclosed homes) and short-sales have driven the price of other homes down as well. If you are thinking about buying a foreclosed home or pre-foreclosed home, there are things to think about before doing so. I have a list here for you to look at and help make your decision.
Steps to Buying a Pre-Foreclosure Property
Finding properties
A good place to start looking for foreclosure prop¬erties is on the MLS with your realtor. After you find a property, it’s a good idea to drive by the property to get a better idea of the property’s condition and the type of neighbor¬hood. For some buyers and investors, driving by the property can facilitate a casual meeting with the owner or yields a wealth of valuable information from a talkative neighbor.
Confirming pre-foreclosure status
When a property enters pre-foreclosure, the owner usually has at least 2-3 months to reinstate the property by paying off the amount in default. The reinstatement stops the foreclosure process, so it’s important to find out if a property has been reinstat¬ed before proceeding. The best way to check if the property has been reinstated is to call the trustee or attorney assigned to the foreclosure.
Researching the potential bargain
Find out as much as you can about the estimated market value of the property, how much is owed on the property and if the owner has any other liens against the property. This is all public information and you can research on your own with the county recorder in your area.
Contacting the owner in default
You or your real estate agent should initiate contact with the owner to express your interest in the property. Before you expend the time and effort to contact the owner, make sure you’re fully prepared to buy.
If the owner has decided to list the property for sale, you can simply contact the listing agent. In most cases, the owner has not listed the property for sale, so you will need to pro-actively contact them.
Contact the owner by mail to start. The basic mes¬sage to communicate to the owner is that you’re interested in buying the property and you want to work out a purchase agreement that benefits both parties. If the owner rejects all of your contact attempts, you may still have a
chance to purchase the property at public auction, which occurs if the owner doesn’t sell or pay off the amount owed during the pre-foreclo¬sure period.
Negotiating a purchase agreement
Once you have made contact with the owner, you should meet with them for further discussion about the property. As part of this meeting, or a later one, you should arrange to walk through the property to make sure it meets your criteria as a buyer.
Because owners in foreclosure may not have the money to make repairs to their property, you might be willing to buy the property “as is.” Your willing¬ness to put some “sweat equity” in the property after you purchase it will increase the chances of realizing a good bargain.
If you and the owner both agree to proceed, you need to negotiate the terms of a purchase. These negotiations will involve you, the owner and the foreclosing lender. A real estate agent can be a valu¬able resource during the negotiating process.
Closing the deal
Once you’ve arrived at an agreement with the owner in default, the foreclosing lender and any other lien holders, you can put the agreement in writing. If you’re not familiar with how to draw up a purchase - agreement, you should have your real estate agent or real estate attorney help.
Tips on Buying a Home
Remember, there’s no “right” time to buy, any more than there is a right time to sell. If you find a home now, don’t try to second-guess the interest rates or the housing market by waiting.
Don’t ask for too many opinions. It’s natural to want reassurance for such a big decision, but too many ideas will make it much harder to make a decision.
Accept that no house is ever perfect. Focus in on the things that are most important to you and let the minor ones go.
Don’t try to be a killer negotiator. Negotiation is definitely a part of the real estate process, but trying to “win” by getting an extra-low price may lose you the home you love.
Factor in maintenance and repair costs in your post-home buying budget. Even if you buy a new home, there will be some costs. Don’t leave yourself short and let your home deteriorate.
Accept that a little buyer’s remorse is inevitable and will probably pass. Buying a home, espe¬cially for the first time, is a big commitment, but it also yields big benefits.
Choose a home first because you love it; then think about appreciation. While purchasing a home can be a wise investment, a home’s most important role is as a comfortable, safe place to live and enjoy!
I hope this letter finds you happy, safe and well and as always, please don’t keep me a secret. Please refer me to your friends and family as a referral is the best compliment I can receive.
Best Wishes
Henry P. Tietz
BEST!
Henry
June 2008
Henry P. Tietz
Hello Friend
June is here and summer is off to a GREAT start. This is the month of Dads and Grads so keep that in mind if you need to ship off a card or gift for someone. Happy Fathers Day, Dad.
With the real estate market in a bit of an up-swing from all the short-sales and foreclosures, buyers have the upper hand when dealing with a seller. The large numbers of homes for sale are giving buyers a greater bargaining tool to negotiate a lower price and the bank-owned (foreclosed homes) and short-sales have driven the price of other homes down as well. If you are thinking about buying a foreclosed home or pre-foreclosed home, there are things to think about before doing so. I have a list here for you to look at and help make your decision.
Steps to Buying a Pre-Foreclosure Property
Finding properties
A good place to start looking for foreclosure prop¬erties is on the MLS with your realtor. After you find a property, it’s a good idea to drive by the property to get a better idea of the property’s condition and the type of neighbor¬hood. For some buyers and investors, driving by the property can facilitate a casual meeting with the owner or yields a wealth of valuable information from a talkative neighbor.
Confirming pre-foreclosure status
When a property enters pre-foreclosure, the owner usually has at least 2-3 months to reinstate the property by paying off the amount in default. The reinstatement stops the foreclosure process, so it’s important to find out if a property has been reinstat¬ed before proceeding. The best way to check if the property has been reinstated is to call the trustee or attorney assigned to the foreclosure.
Researching the potential bargain
Find out as much as you can about the estimated market value of the property, how much is owed on the property and if the owner has any other liens against the property. This is all public information and you can research on your own with the county recorder in your area.
Contacting the owner in default
You or your real estate agent should initiate contact with the owner to express your interest in the property. Before you expend the time and effort to contact the owner, make sure you’re fully prepared to buy.
If the owner has decided to list the property for sale, you can simply contact the listing agent. In most cases, the owner has not listed the property for sale, so you will need to pro-actively contact them.
Contact the owner by mail to start. The basic mes¬sage to communicate to the owner is that you’re interested in buying the property and you want to work out a purchase agreement that benefits both parties. If the owner rejects all of your contact attempts, you may still have a
chance to purchase the property at public auction, which occurs if the owner doesn’t sell or pay off the amount owed during the pre-foreclo¬sure period.
Negotiating a purchase agreement
Once you have made contact with the owner, you should meet with them for further discussion about the property. As part of this meeting, or a later one, you should arrange to walk through the property to make sure it meets your criteria as a buyer.
Because owners in foreclosure may not have the money to make repairs to their property, you might be willing to buy the property “as is.” Your willing¬ness to put some “sweat equity” in the property after you purchase it will increase the chances of realizing a good bargain.
If you and the owner both agree to proceed, you need to negotiate the terms of a purchase. These negotiations will involve you, the owner and the foreclosing lender. A real estate agent can be a valu¬able resource during the negotiating process.
Closing the deal
Once you’ve arrived at an agreement with the owner in default, the foreclosing lender and any other lien holders, you can put the agreement in writing. If you’re not familiar with how to draw up a purchase - agreement, you should have your real estate agent or real estate attorney help.
Tips on Buying a Home
Remember, there’s no “right” time to buy, any more than there is a right time to sell. If you find a home now, don’t try to second-guess the interest rates or the housing market by waiting.
Don’t ask for too many opinions. It’s natural to want reassurance for such a big decision, but too many ideas will make it much harder to make a decision.
Accept that no house is ever perfect. Focus in on the things that are most important to you and let the minor ones go.
Don’t try to be a killer negotiator. Negotiation is definitely a part of the real estate process, but trying to “win” by getting an extra-low price may lose you the home you love.
Factor in maintenance and repair costs in your post-home buying budget. Even if you buy a new home, there will be some costs. Don’t leave yourself short and let your home deteriorate.
Accept that a little buyer’s remorse is inevitable and will probably pass. Buying a home, espe¬cially for the first time, is a big commitment, but it also yields big benefits.
Choose a home first because you love it; then think about appreciation. While purchasing a home can be a wise investment, a home’s most important role is as a comfortable, safe place to live and enjoy!
I hope this letter finds you happy, safe and well and as always, please don’t keep me a secret. Please refer me to your friends and family as a referral is the best compliment I can receive.
Best Wishes
Henry P. Tietz