Foreclosure Market Issues

“Low-Balling” The Offer

By Bryan Anderson & Yvonne Coelet

“Offer Rejected.  No Counter Offer From Seller.”  This is the response the bank is going to send to their listing broker upon receipt of that ridiculous “low-ball” offer.  We see too much time and effort wasted on individuals looking to “steal” a property just because it is owned by a bank.

Does the bank want to dispose of their non-performing assets?  Absolutely!  Do most of these bank owned homes need some work?  Yes!  Does the bank initially price their properties with these factors in mind?  Almost always.

The facts:  of all the foreclosed transactions that have closed escrow (in our market area) in the last 8 months, the average selling price was 85% of the original asking price.  For the more desirable properties that sold in less than 90 days, the average sales price was 95% of the original listing price.

Take the advice of your agent.  Do your homework.  How is the property priced based on current market conditions, recent neighborhood sales, current asking prices for similar properties, and the number of similar properties available.

Will you be asking the seller to pay some or all of your closing costs?  Do you want the seller to make any repairs?  Fine, but make an offer accordingly.  We are now seeing multiple offers on properties and that “low-ball” offer that asks for everything just isn’t going to be in the running.

If you want the property, buy it!  Make a reasonable, well-informed, and clean offer.

Still want to “steal” a home from the bank?  Just wait for a property that has been on the market for 6-8 months longer than average.  Properties aren’t “stolen”; they are sold for what the market will bear.  If the deal looks like a “steal”, it is usually because nobody else wants it.

Foreclosure Market Issues: Asset Managers

By: Bryan Anderson-Monument Properties AZ

Banks and lending institutions that have REO properties (real estate owned or foreclosures) will most often utilize the services of an asset manager (AM) to assist in the disposition of those assets.

Asset managers are charged with the over seeing of:  securing the property, clean up of the property, winterization if necessary, appraisals and broker price opinions, ordering utilities on, the pricing and marketing of the property and the negotiating of received offers.  While most of these tasks are actually handled by property servicing firms and real estate brokers, the AM is the party ultimately responsible to the property owner for the execution of these tasks.

As real estate brokers working in the foreclosed properties market, we have had very positive dealings with AM’s as well as tremendously frustrating encounters with AM’s.

While some of the AM’s we work with are flexible and get us responses to our requests almost immediately, others are tedious to a fault and very slow to respond.

The biggest issue we have is in the submission of offers.  A couple of the AM’s we work with will have a response to us on a submitted offer within hours.  While we have submitted offers on behalf of buyer clients that have not been responded to for weeks.  Needless to say, this can be unbelievably frustrating to us, but especially so for the prospective buyer.

If you are going to make an offer to purchase foreclosed property, be prepared to be patient.  Your agent and even the lenders’ agent are probably doing everything they can to expedite the process but some AM’s and banks just do not move at a pace we would all like to see.

We often get asked by buyers “What kind of offer should I make on a bank owned home?” It’s a good question. One thing your agent should do is run a comparison to other homes in the area. How do they compare? What is the price per square foot on the home? Even knowing how the home you are interested in compares to other bank owned homes nearby can make an impact in your offer.

We are finding that if a home has only been on the market a few weeks, banks will be looking for full price offers. The longer the home has been on the market the better chance you have for price negotiations. Knowing what the starting price was on the home can also make an impact. Sometimes bank owned homes have changed realtors so additional research will be necessary.

Something else to consider…with a “good” offer buyers should consider asking the bank to contribute 3% towards their loan costs, closing costs and pre-paids. It doesn’t hurt to ask.

This tri-level condo in the heart of Pinetop, AZ is going to auction April 4th. This home was the former model home for the complex. It has granite countertops, rocked fireplace and more.

Check out the Pine Creek Condo Video

This home is currently priced at $155,293, but with it going to auction, MAKE AN OFFER!

What’s Up Wednesday

A weekly breakdown of real estate market activity for the Show Low and Pinetop-Lakeside areas

(All data is gathered from the White Mountain Association of Realtors Multiple Listing Service.  Information is deemed reliable but not guaranteed.  Properties were searched in the following geographical areas: Show Low, Show Low Country Club, Show Low-Torreon, Lakeside, Pinetop, Pinetop Country Club.)

Total number of Active Listings (as of 02/25/09):                          Average Days on the Market:

            Site built homes:                                 646                                          194

            Manufactured homes:                         147                                          194

            Condo/Townhomes:                            100                                          192

Activity from 02/18/09 to 02/25/09:              Site Built         Manufactured             Condo/TH

            # of New Listings:                              11                                6                                  0

            # of listings Pending:                            9                                0                                  0

            # of listings Expired;                             6                                1                                  1

            # of listings Withdrawn:                       8                                1                                  1

            # of listings Closed:                              3                                2                                  0

                        Average Days on Market:       150                              98                                N/A

Net Gain/Loss for the week of 02/18/09 to 02/25/09:

            (New listings less: expired, withdrawn, and closed listings)

            Site Built homes:                     -6

            Manufactured homes:             +1

            Condos/Townhomes:              -2

Active Listings by Price Range:                   Site Built         Manufactured             Condo/TH

            < $100,000                                          11                                46                                3

            $100,001-$200,000                             100                              82                                36

            $200,001-$300,000                             165                              16                                31

            $300,001-$400,000                             140                              2                                  29

            >$400,001                                           230                              1                                  1

I was reading this wonderful article the other day how a family that fled Hurricane Katrina was able to get back into a home because they gotten a great deal on a bank owned/ foreclosed property. We are seeing that more and more first time home buyers can take advantage of this type of purchase in order to get into their first home. There are some good lending programs out there that can help first time buyers fulfill their dreams. Read the article.

If you would like to learn more on how a foreclosure home could become your first home…contact us!

Here we will keep you informed of Foreclusures in White Mountain and other areas in Arizona.  Subscribe at the right, and you will be informed of all white mountain foreclosed porperties as they become available!

A weekly breakdown of real estate market activity for the Show Low and Pinetop-Lakeside areas

(All data is gathered from the White Mountain Association of Realtors Multiple Listing Service. Information is deemed reliable but not guaranteed. Properties were searched in the following geographical areas: Show Low, Show Low Country Club, Show Low-Torreon, Lakeside, Pinetop, Pinetop Country Club.)

Total number of Active Listings (as of 02/02/09): Average Days on the Market:

Site built homes: 638 186

Manufactured homes: 146 189

Condo/Townhomes: 102 188

Activity from 01/27/09 to 02/02/09: Site Built Manufactured Condo/TH

# of New Listings: 22 2 9

# of listings Pending: 13 2 1

# of listings Expired; 20 2 1

# of listings Withdrawn: 8 1 1

# of listings Closed: 7 0 0

Average Days on Market: 519 N/A N/A

Read more…

Front of Home on 29th Street

We found it! There is a wonderful bank owned double wide manufactured home located behind Summit Healthcare in Show Low, AZ that needs very little work. It has 3 bedrooms, 2 baths and sits on .17 acres. The home feels larger than the 1344 sq ft it is. Just off the front door is a large deck that runs along the side of the home. There is covered parking with a side entrance. This home is a great deal for the money. Call us if you would like more information or to schedule a showing.

Check out the video on this home…Bank Owned Home on 29th Street

We will be posting the Forclosed Properties listings right here: you can post for free, join and view, even buy and sell properties here, based on your good reputation similar to ebay and PayPal.   White MountainForclosed Properties Weblog for White Mountain is oficially launched!  please provide comments, questions, and feedback here or on our foums.

Doesn’t everyone want to get the most home for the money when it comes to buying real estate? That’s where foreclosures can become a buyer’s best friend. Let the expert knowledge of Yvonne Coelet & Bryan Anderson with Monument Properties AZ go to work for you! They cover the White Mountains of Arizona which includes the areas of Show Low, Lakeside and Pinetop.

Right now the deals are with bank owned properties since they are already owned by the banks so getting a response to an offer is usually within a few days as compared to a few months with short sales. Foreclosed homes are great opportunities for: first time home buyers, second home purchases, move up home purchases and investors looking for rental properties. Interest rates are currently very attractive and there is plenty of mortgage money available, making buying a foreclosed property even more enticing. First time home buyers may also be eligible for federal tax credits.

There are some unique factors to deal with when buying foreclosed homes.  This is where experienced agents can make a difference. “Most banks will have their own contracts that they will come back at your buyers with”, says Bryan Anderson. “Some are 20+ pages of legal jargon that need to be read over carefully before signing. Inexperienced agents may miss some of the unique nuances of the contracts”, he adds.

Knowing the inventory that is currently out there is also what sets Yvonne & Bryan apart from their competition. “We make it a point to go see every listing in the Show Low, Lakeside and Pinetop areas”, says Yvonne Coelet. “We take extra pictures and video tape the homes. These videos are narrated with descriptions of the home’s features and what work, if any, needs to be done. The videos are uploaded onto YouTube.com and added to the many websites where we market these listings,” Yvonne adds. Because of this they have come up with the tagline, “The Foremost in Foreclosures…We Know the Inventory Inside & Out!”

Sure, there are several “big companies” that offer foreclosure services to buyers for a fee, but do they have first hand knowledge of the homes? NO! That is where Yvonne & Bryan come in. They put out a weekly foreclosure list through an e-mail subscription. They can help you with anything concerning foreclosures which can be done in person, by phone or by posting a message on their blog…www.WhiteMountainForeclosedPropertiesBlog.com.

Yvonne Coelet

Bryan Anderson