I got fired or I fired the client before I ever took him out. A recent client just closed on a $24,000 brick ranch with basement. The Dearborn Heights Foreclosed home was 1000 square foot and needed to have the windows updated and the basement redone. I helped these kids because it was my friend's kids and they had cash to buy. There were decisive on what they wanted and had a short list of different Dearborn Heights foreclosure homes to buy. They got a steal!
Well I got a call from a friend of theirs. He wanted to do the same thing. But here's all the issues he brought to the table:
- He had bad credit
- a friend was buying the foreclosed house for him
- They needed to do a $20,000 mortgage
- They had no pre-approval letter
- I never talked to the "friend"
- He wanted to find the "best deal"
- He wanted a move in ready home
- he needed sellers concessions
He must be high to think that it was possible. 
So I told him when I first talked to him to get his pre-approval letter and then we would talk. I was going to sit him down and explain why his criteria were unreasonable. (But I didn't think he would get a pre-approval letter from the bank. I didn't think would happen because banks hate those little loans too. They many times require a large application fee to do them)
Well tonight he called and it sounded like he was in a bar. He wanted to see 3 Dearborn Heights foreclosure houses tomorrow at 11 am. ( a little short notice). I asked him if he got his pre-approval letter. He said no. I said I'm not taking you out until you get one. "WELL HE SAID I'LL GET ANOTHER REAL ESTATE AGENT" I told him I'm not going to waste my time until he was pre-approved. CLICK went the phone line. I don't know if I hung up on him or he hung up on me... but it was mutual.
I didn't want him as a client. I don't want to drive somebody around when they don't know if they can even buy a home. I would rather be on a lake or relaxing at home than carting around somebody that wants to look at houses and is too lazy to get the pre-approval letter. Gas costs money. I know that bozo thought it and my time were cheap. IF YOU DON'T HAVE A PRE-APPROVAL LETTER YOU AREN'T A GOOD BUYER!
I don't want to do any deal less than $40,000 that requires a mortgage because you aren't going to win when there are multiple offers. The cash deal will always win. Anybody that thinks they can buy a house for $20,000 and needs a mortgage is going to lose a lot of deals before they get lucky and win a house. It may take 20 purchase offers and a lot of looking at homes.
For a Metro Detroit Realtor it is a waste of our time. Sure I will do one now and then when I have time but the banks don't pay that much to sell a $20,000 home. We can't jump at the drop of the hat to see them. I'll fit them in during my slow time. It's a time filler for our slow times. We can't feed our families selling $20,000 Dearborn Heights foreclosures and fill our gas tank or pay for our car. So if you are looking under $35,000 you should be paying cash. Or be prepared to lose a lot of deals and waste a lot of time.
If you are looking at lower end foreclosures and have cash to buy them I'll be glad to help you out. I have closed quite a few of them this year already. I will send you email listings that you can search through. You can drive by them and take a look at the area and whether you want to see them. Then I'll be glad to get you in the door to see them.
But I'll be honest with you that these low priced foreclosure homes need work. None of them will be move in ready. They may have mold issues, missing furnaces or kitchens, have bad carpet, or need drywall work. That's why they are cheap. They may take $5000 to $10,000 to fix up. But they still will be a great bargains when you fix them. So whether it is a Dearborn Heights foreclosure, Livonia foreclosure, or a Farmington Hills foreclosure there are some great deals out there.
Russ Ravary your Metro Detroit real estate agent
Search Metro Detroit foreclosures
thats my rant of the day!
