So, I receive so many inquiries from old and new clients looking to purchase a foreclosure because they want a good deal and they feel with all the foreclosures right now available, that is the best possible deal to be had. Well, I am here to tell you that while that aspect is one part of the market, it is not the whole marketplace. Let me take a moment of your time to speak about these things generically.

Take this example from a logical perspective, you are living in a house that for one reason or another you can no longer afford. Maybe you have tried to work with your bank to keep your house and make partial payments or modified lowered payments, and the bank isn't willing to work with you, the homeowner. These people are not happy campers! What does that mean? Well, I have seen the entire spectrum. They pack up and move out and leave the house in good shape. If that is the case, the bank, like every other seller, will still want market value for the house, so the buyer will still find it difficult to get "that great deal". If the owner goes the opposite direction, performing/allowing damages to the house such as: they can cut out the plumbing, pull out the electric wires, spray paint walls, rip out the HVAC, or simply just turn on the water, let it run and walk out the door, yeah, it is possible you can get a good deal on those types of houses. It certainly entails lots of planning (which I am well capable of consulting with you) however, that planning could include the following: lots of mold work, lots of plumbing, electric, and of course cosmetic work. You might get lucky to find that "diamond in the rough".

However, now think outside the box. You can get a great deal on houses that are distressed or owned by people that don't want to own them. Let's review some options:

1. Short Sales: This is when you have an owner who cannot afford to pay their mortgage, but doesn't want to ruin their credit. They will chose a short sale option. It might take a little longer for you to physically own the property, but can certainly be worth the wait. You might still have some work to do to the house, but it usually is only cosmetic and minor repairs due to the fact that it is typical that the owners are still living in the property.

2. Estate Sales: The personal representative working to sell a house belonging to a deceased relative usually wants to get it done quickly. They usually don't want to try to fix up the house or get top dollar. Most of the time, this is dumped on a lap of someone with an already busy schedule and this becomes more of a hassle. These homes usually need updates, but again, you usually will be dealing with a home with heat and plumbing and mold-free. Older individuals usually take care of the important and expensive items of a house, so usually the roof will be in good condition, maybe newer windows or furnace.

3. Relocation Homes: Most people are not aware of these homes, have no idea what they are and therefore sometimes steer clear due to ignorance. I think these can be the absolute best way to purchase a home for less than market value. These homes are probably a little higher in the price range, so may not work for the first time buyer, but can be phenomenal immediate equity in your pocket. Let me explain. A seller gets offered a promotion but has to move to another state. To entice the seller further, their company hires a relocation company which agrees to purchase the seller's house and pay for the move. The relo company will do at least two appraisals before hand to establish value and the price they would be willing to pay. The seller then tries to sell his house before selling to relo, because the relo company will pay a bonus to the seller for selling it themselves. If the seller doesn't find a buyer and sells to the relocation company, then the relo company has inventory they really don't want. In those cases, you can typically get a really good deal on the home. Usually these homes will need little to no work, just instant equity.

There are many different ways to get a good deal in real estate. Experience matters so consult with a Realtor which has experience and don't fall into traps or Money Pits!

How much money will go into your pocket after your home is sold?
by Debbi Rivero

It’s not what you make, it’s what you keep that matters. This holds especially true when it comes to the sale of your home.

The sales price you see at the top of the closing paperwork is rarely, if ever, the amount of money that ends up in your pocket as the seller.

There are often a variety of costs and fees associated with getting a home sold, so it’s important that you understand exactly what you’re going to walk away with before you put a sign in your front lawn to let the world know it’s for sale.

The smart thing to do is to consult with a great local agent and have them go over what industry experts call a net sheet.

A net sheet is a financial worksheet that takes the sales price of a listing and then subtracts what the costs and fees are to get a home sold, giving you the net proceeds from the sale of the home.

The math is simple and when done correctly, it will give you an extremely clear picture of what you’ll walk away with when you sell your home.

Here’s a sample net sheet that a real estate agent would use with you prior to listing your home to make sure you knew what selling your home meant to you financially.

Let’s take closer look at how much money will go into your pocket after your home is sold.

House price: This one speaks for itself. It’s not the price a which your home is first listed, it’s the price at which the home actually sells when all is said and done.

First loan balance: This amount usually represents the original mortgage you took out on your home when you first bought your house. Ideally, it’s the main lien holder on your house.
Second loan balance: If you took out a second mortgage or home equity loan, this would qualify as a second loan balance.

Other loans: If you took out a third loan on your home or pledged it as collateral, it would show up here. Or, if there’s another loan you’d like to pay off with the mortgage, you would list it here.

Property taxes yearly paid/Annual property taxes: This one is a bit misleading. The reason is that your property tax allocation is going to be prorated based upon when you actually close your home. You’ll get credit for whatever you already paid or charged for the time you’ve lived in the home that you haven’t paid for yet. The company that closes the loan will do the research and reflect whatever the amount is that needs to go here.

Estimated closing month: You put that month here because you want to determine how prorations for taxes, insurance and utilities would look based upon the month in which you would close on the sale of your home.

Mortgage prepayment penalty: If you got a loan that required you to stay in your home for a period of time before you sold it and subsequently charges a payment if you do, then you would enter that penalty amount here.

Sales commission: This is the line where you would enter the commission that your agent would earn from helping you sell your home.

Other: In this category, you would put any repairs you needed to make to get the home sold, any points you’re paying for the buyer or any closing costs you’re covering for the buyer at closing.

Now, let’s put this into some real numbers for you:

House Price: $250,000

First Loan Balance: $125,000

Second Loan Balance: $18,000

Other Loans: $3,000

Annual Property Taxes: $2,500

Estimated Closing Month September

Mortgage Prepayment Penalty: $0

Sales Commission: $15,000

Other: $0____________

Net Proceeds: $86,500

In this instance, the seller would walk away with roughly $86,500. Again, prorations for taxes, insurance, utilities, etc. will alter that amount. The good news is that the seller would find out exactly what these numbers look like before they sign on the dotted line to transfer the home.

If you’re looking to sell, be sure you consult with a good real estate agent who can first price your home properly and second, identify all the fees and costs associated with getting your home sold so you’ll know what you’ll walk away with at closing.

Click here if you’d like to get the value for what your home will sell in today’s market and then a net proceeds calculation of the amount of money you’ll pocket after your home is sold.

This is my forecast for the year 2020 - Watch it Grow!

As I gaze into my crystal ball, I see a great year for Real Estate!  Interest rates are still at an all-time low and it is anticipated that it will remain that way throughout 2020.  I do not see the interest rates climbing higher than 4.5%  That being said, I also believe that we may even get to 3.0% or even dip into the 2% range!  Currently, the inventory is low and has been decreasing over the last few months.  That is certainly typical this time of year.  The job market is very strong, and people are feeling good about the economy of the nation.  All these factors will come together similar to what happened in 2002.  I don't believe that we will experience the same super increase in prices for the next 5 years or so, but I do predict that the sales price might grow as much as 10% this year.  So, what does that mean to you?  If you are looking to purchase a first home or you are looking to move-up to a larger home, you really should consider doing that right now.  Spring will be a seller's market, and buyers will be paying more than list price and fighting to get their dream homes.  If you are retiring or downsizing, I would suggest you wait til late spring or as late as early fall, I believe the market will still be strong at the prices will be maxing at that time.  Time the market correctly!  Hire me to give you the advise to make the most of your investment.

Funday Mondays are just for fun and sometimes have offers attached.  Try you hand...

How do you get your HOUSE sold?

How? Start by going backwards 4 steps

Oh, you need to go back 10 spaces

U still need to go back 14 steps

Surely back another 12 steps

Eventually you move ahead 4 steps

If you are thinking of selling this spring, text me the correct answer and your name and receive $200.00 off RE/MAX fees!

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