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04-07-2011, 10:07 PM | #21 |
I'm nuts for the place
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Re: Real Estate - Can we talk short-sales?
I totally understand Jon and I have no personal experience. I am just trying to get a feel for what I have seen others do. Thanks for clarifying!
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04-07-2011, 10:08 PM | #22 | |
Yes I am a Pirate
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Re: Real Estate - Can we talk short-sales?
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Unless an agent is expert on home construction, repair costs, market acceptances of depreciation and obsolescence, a student of governmental regulations and laws and their effects on value, an expert in determining highest and best use analysis, plus versed in considering dozens of other factors and their value effects, he/she cannot start to rise to the level of an appraiser. A qualified appraiser takes all the things you speak of in consideration. All the other professions you have names take only one or two of the factors in consideration. That's why they are what they are, NOT appraisers. How do I know??? Because I am an appraiser, and have been one for over 30 years. Agents/brokers owe their legal allegiance to their principle, and can act only for the benefit of that principle, and are thus, by definition, cannot be un-bias. Not a slap at agents, it's just legally how it works. While there are a lot of agents out there that are very good at what they do, unless they are qualified and certified as appraisers, they cannot give you an appraisal, and they are even less qualified to determine Market Value than a home inspector is. Sorry. Why is it called a CMA??? Because legally, it cannot be called an appraisal because it does not meet the requirements of an appraisal. And, NO, it isn't hard to "pinpoint" market value. That is, if you are an appraiser worth your billing.
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04-08-2011, 08:17 AM | #23 | |
Yet another Masshole
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Re: Real Estate - Can we talk short-sales?
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I would take a home inspector over an appraiser any day in my experiences with both. My reasoning, all the appraiser I've dealt with worked for the town or bank. I have yet to see an appraiser give an estimate that a buyer thought was reasonable and this goes back to 2006 when the market was still going up. Also, appraisals are done annually for town and cities and the price they derive will also determine your property taxes (may not be annual in other states, but in MA it is). We had clients going to town hall meetings to fight over home appraisals because their estimates were still going up even when things were headed south. I do not trust them at all. Again, this is merely in my experiences. At least with a CMA you are able to see what people were willing to spend on a home and what % discount or premium they paid over listing price. To me, this is a good way to derive a market value....what people actually paid since buyers and sellers are the market not an appraiser. Please note, CMAs are merely a starting point and from there you get a home inspection and then deal with the appraisers to help figure out a price that seems reasonable. My process for my clients was a CMA, home inspection, and you are pretty much forced to get an appraisal from your lender anyways. However, none of my clients paid more than 90% of the value the appraiser came up with on a property they were interested in. Sorry Brad for jacking your thread.
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04-08-2011, 09:10 AM | #24 | |
Feeling at Home
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Re: Real Estate - Can we talk short-sales?
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Only a Certified Real Estate Appraiser can provide you with Actual Value. The guy that comes around from the city and "proclaims" your home to be worth XX value for tax purposes doesn't even walk through the inside of the home. I'd wager a guess as to say they typically wouldn't actually view the home in person. For all they know the inside could be gutted. Hence why all of your computer generated values and inspectors, and such have no real "say-so" on the final value and why mortgage companies will require an appraisal before lending. Sure, some appraisers may not be trustworthy/good at their job. But to lump all appraisers into the same category and proceed to say that because your experiences denote a level of untrustworthiness towards them is an afront and quite frankly, a stereotype intended to devalue the profession at best. Now, just because an appraiser gives a particular value does not mean that the property MUST be sold at that price, right? Ultimately, that decision is up to the seller, right? Though you may have experienced selling house at a mere 90% of the value it appraised for... that is not to say there wasn't a potential buyer out there who would have paid more for it... riiiight? In fact, I think any good agent for the buyer would strive to get the selling price down as far as possible for their client, correct? Ultimately SvilleKid is correct. Though an agent may not like the result of the appraisal, the Agent is not an expert in that regard and thus the hat must be tipped to the professional opinion of said expert. So since this is a cigar forum, lets put it in terms we all understand: I am a cigar expert, especially when it comes to certain Domincan and Honduran Brands. I have had years of training in the subject and privileged knowledge that the cigar consumers do not have access to. If one were to argue the blend of one of those particular cigars with me, and it was clear that they simply do not have all the information to sustain a winning arguement over the composition of that cigar; while their knowledge may be vast and respectable, it simply may be incomplete or inaccurate. Leaving me, the expert, in the position to provide the correct information, whether the consumer likes that information or not. So, not to be a terrible thread-jacker, let me revolve back to the topic at hand. Short-selling is a reality in todays market and it appears it will be a reality for some time to come. Whether it is a good thing or a bad thing completely relies on the situation for that particular property. I think it would be foolish to not explore all avenues to obtain the most information about the status and value of a property before making the decision to invest in it. The same goes with just about any endeavour one may attempt to invest in. Ultimately though, it's your money, do what you will with it and the best of luck to you! |
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04-08-2011, 09:26 AM | #25 | |
Order Restored
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Re: Real Estate - Can we talk short-sales?
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I ain't got the time for that shizz. |
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04-08-2011, 10:04 AM | #26 |
friend of Brother Maynard
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Re: Real Estate - Can we talk short-sales?
We bought our house 2 years ago as a short sale,
Biggest issue was time and the back and forth....contract was accepted dec 8, did not close until march 31, day before foreclosure sale which had already been postponed a couple of times, lenders take forever to work through these. and ours was quick by comparison to some others. expect the unexpected, as in additional $$ for something or other, once we had the deal done with the seller and 1st mortgage lender, the title company discovered a second mortgage on the property, who even though they would have been foreclosed out, refused to release unless they got something...ended up doing a 3 way split (us and both realtors) of a nominal amount just to get the deal done. Do not let the sellers agent or yours talk you or force you into using a "3rd party short sale negotiator" such as an outfit called "BGS3" they dont know what they are doing, are a rip off (you pay part of their fee in closing costs) and actually end up raising the price. All that said, it can be a good deal.,,good luck
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Life is too short for cheap beer, cheap liguor and bad cigars...gimme a guinness, glenlivet and a good cigar on a golf course and its heaven on earth!! |
04-08-2011, 10:21 AM | #27 | |
Just plain insane!
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Re: Real Estate - Can we talk short-sales?
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04-08-2011, 10:55 AM | #29 |
That's a Corgi
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Re: Real Estate - Can we talk short-sales?
The most basic principle to remember if an investment property "can I cover the mortgage and condo fee with the expected rent if rented out?"
Short sales are difficult in my area as there are many fat cat's that get first go on them. Makes sense to preview to bonafide wallets first.
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04-08-2011, 01:55 PM | #30 | |
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Re: Real Estate - Can we talk short-sales?
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Ceilin' fan it stirs the air, Cigar smoke does swirl. The fragrance on the pillow case, and he thinks about the girl. Thanks, JB, 1975. Last edited by SvilleKid; 04-08-2011 at 02:05 PM. |
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04-08-2011, 04:49 PM | #31 |
Yet another Masshole
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Re: Real Estate - Can we talk short-sales?
Interesting info.... We must have had less than ideal appraisers and great home inspectors. Tip about inspectors..... make sure your inspector is licensed by the state. Its easy to find...simply go to your state's licensing board website.
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04-08-2011, 04:54 PM | #32 |
I'm nuts for the place
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Re: Real Estate - Can we talk short-sales?
Well thanks for all the input guys, had a great talk with my buyers agent and we are going to put an offer in with a 30 day window contingency on it so we are not tied up for months and are going to have the contact looked over by a real estate lawyer.
Cross your fingers and toes for us.
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04-08-2011, 05:06 PM | #33 |
Just plain insane!
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Re: Real Estate - Can we talk short-sales?
Best of luck Andrew!!!
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04-09-2011, 06:39 AM | #34 |
That's a Corgi
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Re: Real Estate - Can we talk short-sales?
I heard there are banks sitting on so many properties that they have a 10 year plan to slowly release them not to flood and de-value the market.
If anyone is interested in short-sale or foreclosure in the Boston area, my friend works for one of the largest Real Estate law firms locally. He has an inside track on many, but he lacks investors who can sign a check in short order.
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04-09-2011, 11:51 AM | #35 |
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Re: Real Estate - Can we talk short-sales?
Unfortunately, you are 100% correct in the huge inventory story. It is a big worry for many related industries as well as the federal government as to what will happen when the economy turns around and these homes are released on the market! Unless the banks want them as a drag on their spreadsheets forever, they will probable be released for sale at a quicker rate than the market can absorb. I've been on the bank's side of this in the early 1980's, responsible for (at the height of that recession) foreclosing, valuing, repairing and selling over $40 million in OREO (Other Real Estate Owned). But that amount is nothing compared to the lender-owned ORE out there today. Scary, at the best!
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Ceilin' fan it stirs the air, Cigar smoke does swirl. The fragrance on the pillow case, and he thinks about the girl. Thanks, JB, 1975. |
04-12-2011, 08:44 PM | #37 |
Not a puffer
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Re: Real Estate - Can we talk short-sales?
Before I bought my house a year ago, I really wanted to consider foreclosures and short sales. Problem is that there are a lot of sharks in that segment and getting any information on listings online requires subscriptions from what I could find out.
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04-12-2011, 10:54 PM | #38 | |
Have My Own Room
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Re: Real Estate - Can we talk short-sales?
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04-12-2011, 11:09 PM | #39 |
Still Watching My Back
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Re: Real Estate - Can we talk short-sales?
the deal with short sales it to make sure your agent and the listing agent knows what they are doing.
what you have to do to get a good deal is to prepare the bpo for the bpo agent (brokers price opinion). what is happening now is banks are paying out of work agents 45 bucks to go and give a value on a house. its essentially a summary appraisal with active comps as well. These bpo agents have to drive, take pics and prepare a report. 2-3 hours of work. what some people will do, especially if you agent has bpo experience, is to prepare the whole bpo for the agent coming out to the property, hand him a cd with the bpo and the pics, and meet him at the property. tell him that we have done all your work for you and talk the lingo so he knows the bpo is good. "we used recent comps" "we made sure to include the address verification pic, street view pics" etc etc and he will know he's got all his work done for him. And you have to research the loan situation ahead of time before making offers on short sales. certain ones you know will not go through. ex. heloc, credit unions, private money loans etc. and you don't have to waste your time on those. multiple loans are workable as long as the agent knows what he is doing and we know who the lenders are. and preparing mulitple huds correctly so there is room to negotiate etc. just find an agent that can verify he's closed a bunch of short sales and it should help. short sales nowadays are easy as long as you don't go after the ones that have no hope, and the realtor on the listing and buying side know what they are doing. a CDPE agent probably gives them some sort of knowlege though by no means they are an "automatic expert". any questions pm me. |
04-12-2011, 11:10 PM | #40 | |
Still Watching My Back
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Re: Real Estate - Can we talk short-sales?
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