I know its been a while since I last blogged. I have been swamped with bank owned properties (REOs) and bringing sales to fruition. Over the last few weeks I have found that there are certain fees that buyers may not be aware of when purchasing REO properties compared to short and fair market sales.
The first is an overinflated escrow fee. The escrow fee for a home that is $200,000 is generally around 250-300 dollars, but if it is an REO than the fee increases to $850.00 minimum just for being with an REO.
The next is region specific. If it is in California, Title and Escrow companies are separate in Southern California and combined in Northern California. Since most of the REO companies deal with Southern California companies be on notice you are going to pay fees for each instead of one lumped fee.
Finally, realize that you are going to pay an inflated fire insurance fee of around $1500.00 and a pad fee of $500.00 for extra incurred expenses. Realize that the excess amount of these will be refunded back to the buyer at the close of escrow. But the buyer needs to realize that they need to front this money.
Make sure when selecting an agent or before purchasing an REO to ask your agent about extra fees that could be incurred in the sale.
When dealing with customers all agents know that customer service is the key to success in any client-driven industries. However, many agents do not apply that when it comes to working with other agents. I know that we are in competition with each other for that elusive sale, but do Realtors have to treat other agents with disdain and disrespect?
The answer to that question is no! I had a property that was listed and it was falling out of escrow, due to loan issues, and when I asked for cancellation instructions I got the run around with no calls back or response to e-mails. I finally had to call the broker to get the cancellation instructions signed from him.
This is a minor thing, but what if this was a customer and not an agent. Would they continue to come to you for business? I think not! I try to live by the rule, treat the customers how you want to be treated. This can be applied to all aspects of life, but with buying and selling real estate this is essentially true. Why can't we all get along with each other and be courteous, while at the same time, trying to get an edge on our competition.
Many Realtors are having a hard time. In my area it is not uncommon for a Realtor not to have sold a house for the entire year. Many Realtors have not adapted to the change in environment and have abandoned the industry altogether. However it does not have to be that way.
All you have to do is find your niche. By figuring out what to specialize in and perfecting it, you will provide your customers the best option available for that market, whether it be short sales, REO, etc.
The question is, how do you find your niche and refine it. The answer to that is easy. You need to look around and see what all the Realtors are doing and find a market that is being untapped. For example ,in Modesto, the commercial side is booming, while residential is very slow. But there are many fields in Real Estate that are oversaturated with agents. The key is to find those areas that have the fewest agents, or to make yourself stand apart from the other agents through your customer service skills, expertise, or blogs.
With how the current market is in most areas, this is an opportunity for agents to become mega-agents and perfect their specialties. Imagine what will happen when the housing market turns around, if you can get lots of leads now by finding your nice!!!
In the current buyer's market that many Realtors across the country are facing, homes prices are falling very fast. A home that sold for $350,000 two years ago is now selling for about half that in Modesto at roughly $200,000. So what techniques can you use to make your property stand out to where you can maximize profit for the homeowner and yourself, without pricing it too high as where all the other agents in the area won't show your property.
The ways to do this is very simple, but it is not greedy. For example, pricing a property $100K above the rest would not be an effective way to do this. However, there are things to do to spruce up the property and the price.
1. Improve that curb appeal. The property needs to stand out above the rest upon first look. Most people that buy a home or don't buy a home know within 10 seconds if it is a home that they like. Making a good first impression by having a superb outside helps with that. This also applies to the back yard. This can make or break a sale.
2. Have it staged appropriately. Homes that sell quick are ones that others can imagine themselves in. Get rid of the clutter, personal photos, and minimize the amount of furniture.
3. It should smell and look clean. A quick sprucing up could be all that it takes. However a clean home is one that should sell quickly.
4. Put a fresh coat of paint on the walls, if necessary. Again that goes into the clean smell, but it will help. If the colors are not neutral, make sure they are. Bright outlandish colors will help the place sit.
If all this is done, then you have a good opportunity to make your listing stand out and the offer should reflect that.
Many people feel that this is the worst market in decades and that many Realtors are dropping like flies. How can I say that this is a good time to be in Real Estate? The answer to that is two-fold.
First, although sales are off, now is an excellent time to create business relationships with people, such as networking and touching base with your sphere of influence. With the bottom at the end of the tunnel and some light appearing just ahead, it would be good to have customers for when they feel the market has turned.
Next, now is the time to perfect you niche in the market that you are going after. Many people are going after distressed properties, while others are focused on selling or buying. Now is the time to develop yourself as a Realtor or agent, and laugh in the face of rejection. There are many agents that have sold 30 or more properties this year, because they have selected a niche in the market and perfected methods to obtain more and more clients with it. You can to, it just needs to be the one that fits you best.
Finally, don't be afraid of rejection. Many agents became lazy due to the success of 4-6 sales per week and in some cases, per day, where clients came to them. You have to go to the clients or do something different to get their attention. Without that you will get lost in the shuffle of agents.
From a buyer's perspective, now is a time to get Monster Homes for 200-300K in Modesto that are actively listed and not a short sale or a foreclosure. At least that is what they are going for in my region. Imagine a 3000-3500 SF home for that price. When the market turns, these people will make a nice profit when they sell for 100-200 K more than that.
If you think now is not the time to be in Real Estate, then look at the opportunities that this market has provided agents, buyers, and sellers.
In my part of the country, many professionals are speculating that we are a year or so off on hitting the bottom. Every time it seems that things are starting to get better, another wave of foreclosures hit the market extending the inventory from 11 months to 15 or more. In Stockton, national figures assume that 1 in 30 homes are bank owned. That is just under 4 times the national average. There were almost 1000 homes put up for auction last month in Modesto, alone.
With almost every home being listed in some state of foreclosure or being a short sale, it is very rare to see active listings that are not bank owned. However there are signs that we are nearing the bottom. Investors are starting to enter the market and are buying homes at low prices. There are bidding wars for REO properties, above asking price. In fact, the majority of homes that are listed are now selling above the asking price. These signs show that a bottom is going to be occurring in the California region in the near future. The big question is when will this happen? My guess is within the next year, but I also realize that many parts of the country it could be years down the road.
Even with the wave of foreclosures, properties are selling quickly and there is renewed hope that a bottom will be here soon.
Hi Everyone, Matthew Zgonc here and I just wanted to take this moment to introduce Beverly Eagle-Rodriguez to the Active Rain Network.
She is a Realtor at the ERA Village ONE Office in Modesto and is a rising star to real estate. She and I started at the office at around the same time period and she is one of the nicest people that I know.
I hope that all of you take the time to welcome Beverly here and make her feel at home.
When I first entered the Real Estate Industry I had no guidance or clues what to do to obtain or keep clients. I got a few through paying a monthly fee on RealtyTrac, but had only 1 sale within the first year. That is when my wife discovered Active Rain and I have been more busy than I could ever imagine. Most of it has been due to page ranking, which has steadily improved through the months.
I also have been doing traditional marketing, such as door hangers and leaving cards everywhere. Anytime I meet someone on the street I hand out my cards to them, or if I go to a garage sale. I make a minimum quota that I have to hand out daily. In addition, I have expanded into the REO and BPO market, which has helped a lot.
My question to Realtors out there is where do you find your clients, or what innovations are you learning about in the industry?
This means that rates are potentially going up, since the feds funds rate which was just cut, mainly applies to corporations on the bank investor. The ten-year treasury note is tied in directly to the bond investor,(not the fed funds rate as is commonly thought) and that is what causes mortgage rates to go down. The catch is that if interest rates go down then bond investors will demand a higher return, thus causing interest rates to go up for mortgages. In addition, many banks or mortgage lenders are charging fees to help them make profits, which causes the mortgage payment to go up.
So to sum it up, what does the fed rate cut over the last two days mean for the consumer? The answer is higher interest rates. Don't be surprised to see rates up to 7% in the near future.
There are tons of real estate agents out there. Many people are innundated with the choice as to which agent to choose when buying a home . Here are some hints for the consumer to realize the difference between an average and a great agent:
1. The agent will present to you a list of homes in a binder of some sorts that lists all the homes that you will be looking at.
2. The agent will have no homes that do not meet your original criteria. For example, if you specify at least 3 bedrooms, 2 baths, there should not be any homes that are 1 bedroom or 2 bedrooms on the list.
3. They will be dressed professionally. A great agent will be dressed for success. They may not be in a suit, but they will be dressed to impress.
4. They will be on time. Your time is important, any agent that is late does not value your time.
5. They will return calls the same day. Realtors cannot talk during appointments, but they should get back to you in a reasonable amount of time that same day.
6. They will understand your taste very quickly. Immediately after seeing a few homes, the agent should revisit the list and eliminate home styles that you do not like.
For further assistance contact me at 209-614-3103 or visit my website at http://www.buysellmodesto.com.
Matthew Zgonc
ERA Village ONE Real Estate
http://www.buysellmodesto.com
Escalon is located in the crossroads between Modesto, Oakdale, Riverbank, Stockton, and Manteca. From this town you have a gateway to any of these cities. It is located along HWY 120 with McHenry Rd in Modesto turning into Mariposa Rd, which ends up in Stockton. It is home of the Escalon Cougars, which usually have one of the best football teams in the state. It is located in Stanislaus County, very near San Joaquin County.
In terms of homes, Escalon is fairly moderately priced, with a 3 bedroom 2 bathroom home going for a median price of $275,000. It is a fairly small town with many people living along the outskirts or near the Valley Home area in the country. Crime is at a minimum, with almost no need for a police force.
Even though Escalon is a small town, it has wonderful places to eat. One of the Top Chef's finalist worked in an eatery just outside of Escalon. For a town with affordable housing, good schools, and a safe environment. Escalon is the place for you.
ERA Village ONE RE
209-614-3103
www.buysellmodesto.com
Oakdale is known as the "Cowboy Capital of the World" and is a wonderful town to live in. It is located NortEast of Modesto and is located in Stanislaus County. I live in this town and have found it to be very, very quiet. It is a suburbia with a small-town feel to it. Last year when they celebrated their 100 year anniversary of being a town, Oakdale had an actual cattle drive through the main roads to thei city.
It is home to the Oakdale Rodeo which occurs the first weekend every year and features some of the top bull riders in the nation. It is also home to ConAgra foods which features Hunts Tomato Brands and Rosarito Chips. It is the former home of the Hershey Chocolate Factory, which just recently moved out of the area to facilities in Mexico.
In terms of neighborhoods, it is home to the Bridle Ridge Community, in which luxury meets affordability. Homes in this area once sold for 500-600K, can now be purchased for only $325,000 or less. These homes range from 2500-4000 sq.ft. It is a wonderful area, with the only drawback being that the railroad goes nearby your backyard. Besides that, the neighborhood is a perfect place to raise a family.
Oakdale is a wonderful city and a great place to raise a family.
A little known area in the Central Valley is Riverbank. Riverbank is divided into various sections, due to the Railroad Overpass going though the town. It has a small-town feel, yet has all the amenities of a larger town. One of the best theaters in the Central Valley, Galaxy 12 Theaters is located here, while home prices are very affordable.
The schools provide a good-quality education, while effectively preparing students for the future of the real world. There is one major high school and one junior high and a few elementary schools.
There is a large hispanic community, but the crime rate is pretty low and only minor gang issues throughout the area. Most of the restaurants are located along Patterson Road, which is the main thoroughfare for the city, and the median home price is $235,000. There are lots of developments that have been established within the last 6 years with more homes coming shortly.
The typical home is a single-story ranch-type construction. These usually range between 1500-2000sq.ft., with the two story monster homes being the recent additions to the landscape.
If you are looking for a nice, small, country-feel-type community, then Riverbank is the area for you.
In Real Estate, we are driven by the markets. In the current buyer's market that we are in, throughout most parts of the country, it is essential to improve our customer service.
The following hints will be helpful in improving your customer service skills and enable you to get more clients:
1. Be personable: The customer must be able to relate to you. If that cannot happen, then they will find someone else.
2. Know your neighborhoods: If a person is looking for a specific house-type or neighborhood, school, etc., you need to know immediately if you can provide that to them. Just a quick drive around your city or area and taking notes will help you answer that question. Yes, I can show you a 5 bedroom Victorian in this part of town. Not a problem at all.
3. Be all encompassing: People want instant-everything. Make sure that you have the ability to fill all of their needs in a one-stop environment.
4. Your website needs to be inviting: Many websites are difficult to use and people will go elsewhere.
5. The customer comes first. If they feel it, then they will come and they will be a good source for referrals.
Just by following these hints and improving your customer service skills will help you get and retain more clients.
Living in the Central Valley of California, and working primarily in Modesto, the majority of the homes that are for sale are either foreclosures or short sales. Every one in real estate understands what a short sale is, but many consumers are confusing bank owned homes with short sales.
A bank owned home is one that the bank has taken back from the owner. It has generally gone through the entire foreclosure process or has been given back to the bank through a deed-in-lieu of foreclosure (where the owner gives back the title to stop a foreclosure). The bank usually will have a short turn-around time for approval on selling the property.
A short sale on the other hand is when the bank accepts a payoff amount for less than the amount that is owed on the property. For example, a bank that has a loan amount remaining for $100,000. The consumer sells the home for $60,000. The consumer is short $40,000 of the amount that is needed to pay off the loan. The amount That $40,000 is what makes the home a short sale. The consumer still owns the home, but must have bank approval before a contract is made with the buyer. This also does mean if someone else puts in a higher offer before the bank approves the contract, that the bank can accept the other contract, and reject yours. This process can take anywhere between 30-90 days. It just depends upon the bank and their workload.
I hope this clarifies to the consumer the difference between a short sale and a bank owned property.
http://www.buysellmodesto
Matthew ZgoncRealtor®ERA Sales AssociateERA Village One Real Estate2508 Oakdale Rd, Suite B-1Modesto, California (209) 614-3103
