Posted on 18. January 2012 03:46 by qmiskini


The New Year has brought with it a number of new negotiation points to work through for Realty Teams representing Buyers making offers on REO (foreclosed) properties.  The most myopic negotiation point to date came up the other day in a multiple offer and highest and best negotiation situation one of our Team’s Buyer Specialists is negotiating.

The property is a foreclosure in a pleasant sub division in Kennesaw, GA.  The Investor (the actual owner of the property’s note that is serviced by a Lender) invested the money to clean up and update the property.  It is a great move-in condition home and perfect for the young first-time buyer hoping to close the deal on their first new home.  A realistic Comparative Market Analysis was completed prior to presenting an offer to the REO listing agent for presentation to the asset manager directing the sale of the property on behalf of the Investor.  The asset manager had smartly instructed the REO Agent to list the property at around 10% below fair market value.  So, here is a great property at a very good price.  Not an unfair tactic on the part of the asset manager, but one our Buyer Specialist was aware of when the offer was written.  A multiple offer situation and a highest and best competition were expected, and the Buyers were told that the property would likely sell for around 10% above initial list price.  Within days there were multiple offers. 

As with all offers our Buyer Specialists present, an Appraisal Contingency exhibit was included.  This is an important protection for the Buyer.  It states that an appraisal will be completed within a specific number of days following binding agreement, and that if the property appraises for less than the initially agreed selling price, the Buyer has the right to ask the Seller to lower the sale price to the appraisal price.  Without this exhibit, the Buyer must pay the previously agreed selling price, even if their lender will only finance a loan for the lower appraisal price.  The Buyer would have to come up with the difference in order to complete the sale.  The use of the Appraisal Contingency Exhibit is a commonly used, fair and necessary protection for the Buyer.

In this offer, however, the Investor steadfastly refused to accept the Appraisal Contingency stating: “The seller rejected your client's last counter.  Seller will not take an appraisal contingency.  Seller indicated he will not agree to appraisal/sale price adjustment. 

Seller staying firm in his belief if the property is on a multiple offer situation, the buyer is willing to pay the difference.

Please note property is available to any potential buyer.  We are getting too many inquiries at the present time, to include buyers that previously submitted an offer. “

 With the seller (Investor) refusing to accept an Appraisal Contingency, the Buyer is being placed in double jeopardy.  First, if the property does appraise for less than the selling price, the Buyer will have to still pay the difference to close the sale.  They will have to pay more than the property is worth and start out under water. But if they refuse to pay the difference and back out of the sale, under the terms of the agreement they will be in default and lose their earnest money deposit.

Perhaps there are some Buyer Agents that will let their Buyer take that risk.  Not us though.   

Buyers… purchasing a home is an emotional experience; but it is also an important, and often, your biggest investment.  In real estate you make your money when you purchase your home, not when you sell it.  Buying your home for the right price at the start helps significantly in managing the home’s equity value when you sell it.

As for this Investor and asset manager:  Are they coy, wise, greedy, myopic?  How tough is too tough before Buyers and experienced Buyer Specialists simply must move on and reject an otherwise great property?

Don’t forget…selling or buying a home is a process and a journey, not an event; you will want to subscribe to our free video e-mail series for home sellers and buyers. For access to the complete series of free video and informational emails that can provide you with many of the important strategies and information you will need to make the best home selling or buying decisions you can CLICK HERE ==èSPECIAL E-MAIL SERIES REPORTS and ask for the free no obligation series of email reports to be sent to you regularly over the next few weeks.  Just put FREE VIDEO EMAIL SERIES in the subject line and let us know if want the home seller or home buyer series. 

If you just want to see what other homes in your area are selling for by searching the MLS CLICK HERE =èSEARCH THE MLS FREE

Or contact us directly for free, no obligation information at


Posted on 8. September 2011 04:22 by qmiskini


In this current “buyers’ market,” many Buyers start out their home search with the goal of “finding a deal!”  Certainly there are more and more “distressed properties” being sold at prices below current market value. Many are foreclosed or “bank-owned” properties also known as REO’s – a term used by real estate professionals meaning Real Estate Owned. They are being sold, with a condition of the sale to you, the Buyer, in “As-Is” condition.

As-Is means the Seller will not make any representation of prior knowledge of the property’s condition and will not make any concessions for repairs to the property.  So, if the windows are fogged, or the stove isn’t working, or the carpet is stained and the light fixtures don’t work – or are missing – you, the Buyer are responsible for any and all repairs to the property once you purchase the home.  However, as a condition of the sale, you, have the right to inspect the property to determine what the property’s repair issues are.  During that inspection period, also called the due diligence period, you have the option to terminate the purchase agreement if you believe the repair issues are greater than you can handle or afford - because the Seller will not make any concessions for repairs.  They are selling the property As-Is.  However, if your Realtor is experienced in helping their Clients purchase foreclosed properties, they know that Sold As-Is does not always mean Sold As-Is. 

Recently one of our Buyer clients who had been searching for “a really great deal” found the “perfect home.”  It not only fit their space and size and location criteria, but after some tough negotiating on the part of their Realtor, they reached agreement on a price that was 55% of the original sale price when the property was first sold 8 years ago!  Additionally, the Realtor negotiated $10,000 in Seller paid concessions, a pre-paid termite inspection, and a home warranty on behalf of the Buyer.

During the inspection a variety of issues were revealed, most of which were deferred maintenance issues which the Seller would not pay to repair.  Property Sold As-Is!  However two of the three air conditioning units needed repair and the Buyer’s lender insisted these “infrastructure items” must be working as a condition of finalizing the Buyer’s home loan. The cost to repair the units was $2,700.

So now the negotiation began anew.  With some minor concessions by the Buyer and the knowledgeable leverage strategies employed by our team’s Realtor, the Seller agreed to pay for the cost of the repair by providing a check at closing to the vendor selected by the Buyer to do the repairs. The vendor agreed to make the repairs prior to closing, and the Lender agreed to fund the Buyer’s loan.

For a series of short videos about what to look for and how to begin your search for your “great deal” in a distress sale property – whether you’re a first-time home buyer, move-up Buyer, Investor or you are looking for a deal on a vacation home this Foreclosure Video Series will help you get started.

For access to a complete series of free video and informational emails that can provide you with many of the important strategies and information you will need to make the best home purchase you can CLICK HERE ==èSPECIAL E-MAIL SERIES REPORTS and ask for the free no obligation series of email reports to be sent to you regularly over the next few weeks.  Just put FREE VIDEO EMAIL SERIES in the subject line. 

If you just want to start out by searching the MLS to see what types of distress sale homes are available in your projected price range and area of preference CLICK HERE =èSEARCH THE MLS FREE

So when are Sold As-Is foreclosed property sales ONLY Sold As-Is? Only when you and your Realtor fail to challenge that “Sold As-Is” stipulation.  Because not every Sold As-Is foreclosed property is “Sold As-Is.”


Posted on 1. September 2011 06:37 by qmiskini

What's a house worth? That's one of the most important - and seemingly difficult- questions to answer for any home search.  And there are many ways to look at answering that all important question.

What is it worth to you... the Buyer?  What's it worth to the Seller? What is its appraisal value? What does the "market" think it is worth? Is it worth less because it is a foreclosed property...often called an REO (bank terminology for "Real Estate Owned.") Is it worth less - or more - as a Short Sale or "pre-foreclosure" property? Is it worth paying fair market value for a home that is NOT a distress sale property - a retail property... or new construction?  Does its location in the sub division affect its value and price?  How about condition, or proximity to schools or shopping? How has the foreclosure rate in some sub division communities affected price and therefore value? As a Buyer you could go nuts trying to wade through the maze of questions, statistics and trends as well as important but less apparent anecdotal information when trying to decide whether the home of your dreams is worth the price it is listed for.

That's where the Realtor you are working with begins to show his or her true value. Experienced Realtors who are members of Teams like TMT Realty Group, for example, where access to data Buyers and Sellers cannot either retrieve or decipher, and their ability to interpret the data adds a high level of confidence that the foundation assessments of properties are based on reliable information and experience and not just intuition...or worse... a "good guess."

All those factors and more go into assessing value and price. Don't get stuck guessing and hoping you not only found a home you love, but can buy it for a price you can love. To start with, ask your Realtor to help you get pre-approved by an experienced lender so you know what your price points are. Next have your Realtor provide you with the most current information daily - from all sources.  TMT Realty Group offers its exclusive HomeHunter Service, completely free with no obligation, matching your exact criteria to the newest and hottest deals from all Realtors and sources.   Then, get in your car and drive by homes and neighborhoods to see how they stack up to your specialized criteria.  And finally - visit homes with your Realtor - compare and contrast their strengths and weakness, and how you "feel" about each home until the right property at the right price makes itself apparent.

By matching superior market knowledge, systems, research and experience with your wants and needs, the right home at the right price will become the end result of a great Buyer/Realtor partnership.  You will not only have found the home you love, but you'll know what it is worth!