Rodney Forbes

Article by Rodney Forbes So you've been reading the news about housing recovery, government tax credits and record low interest rates. Or maybe you've gone to a real estate seminar or taken a course on buying foreclosures and bank REO's. Buying a bank owned property can be a great way to buy a home well under market price. But you must be careful and avoid making some common mistakes when dealing with foreclosures. 1. Never contact the listing agent (the person on the yard sign) This person works for the bank, not you. ALWAYS use a buyers agent when purchasing a home, foreclosure or otherwise. This person looks out for your interests and helps to negotiate the best price and terms for you. But a common misconception is you are paying them. Not true. The sellers pays the commission to both the listing agent and the buyers agent. Always look for an agent who is experienced in dealing with bank foreclosures and who works with buyers. 2. Be pre-approved for a mortgage first Don't waste your time trying to submit an offer without a pre-approval letter. The bank wants to sell the property as quickly as possible. Remember, they're in the banking and lending business, not the real estate management business. Your offer will get priority with a strong pre-approval letter. This will also insure you're looking in the right price range. 3. See past cosmetic fix up This is where you can find the real diamond in the rough. Most bank owned properties will need some fix up. Many buyers are turned off if a home is not in move in condition. This is where your real opportunity lies. Paint, carpet and clean up can make a major difference in the look (and value) of a home. Don't let these small items deter you. Major fix up is left up to the inspection. 4. ALWAYS pay for an inspection This is your insurance policy against buying a home that needs major fix up that you didn't count on. Your contract should ALWAYS be contingent on the outcome of the inspection. You have the right to cancel the contract and get your deposit back if the inspection comes back with major repairs needed (Secret: If the inspection comes back with many repairs needed you can re-submit another offer at a much lower price and have the inspection report attached to the offer). Most banks have no clue what condition the property is in, until you tell them. 5. Look for the ugliest home in the best neighborhood Look for the best neighborhood in your price range and see if there are any bank owned properties there. The price will most likely be well below what comparable homes are selling for. Once the home is back in really good condition, it should be worth what other homes in the neighborhood are worth, no matter what you paid for it. And the neighbors will be very happy that you have taken the community eyesore and made it a beautiful home again. As a buyer specialist and a real estate investor for ten years I can tell you bank owned foreclosures can be the best investment of your life. But you have to be careful and have someone in your corner who has been there before and who can guide you through the process.

If you are interested in learning more about buying bank forclosures and bank REO properties click this link to Forbes Realty of South Florida or call me at 561-337-4810.

Sales of previously owned U.S. homes rose at their fastest pace in nearly six years in February, data showed on Monday, offering some hope to an economy battling a 15-month recession.

The current news confirms what I’ve been telling people for the last several months. According to the data in the Florida market, sales of single family homes have been for the past 5 months. Even condo sales are improving in the state of Florida. First time home buyers are making a move due in part to the affordable prices, low mortgage rates and the first time home buyer tax credit. Investors are also starting to pick up properties and fire sale prices.

The National Association of Realtors (NAR) said sales rebounded 5.1 percent in February to a 4.72 million-unit annual rate, notching their largest gain since July 2003, but about 45 percent of these were foreclosure or short-sale transactions. Clearly, the agents who are making the money in this market are the agents who know how to list and sell Shortsales…and REO Listing Agents. 45% of all transactions last month were Shortsales and REO sales. Agents learn how to easily list and sell shortsales. Watch the FREE Agent Shortsale Secrets video now. Next, watch the Agent REO Secrets video to learn how to become a REO Listing Agent. This was above market expectations for a drop to a 4.45 million-unit pace after January’s 4.49 million rate. Compared to the same period last year, February sales were down 4.6 percent, the NAR said. U.S. stocks, already rallying after the U.S. government released details of a plan to clean out toxic assets from banks’ balance sheets, extended gains on the housing data. The housing market is at the core of the economic and financial meltdown and stabilizing it is seen as a key ingredient for the recovery from a recession that started in December 2007. “Because entry level buyers are shopping for bargains, distressed sales accounted for 40-45 percent of transactions in February,” said NAR chief economist Lawrence Yun. “Distressed homes typically are selling for 20 percent less than the normal market price, and this naturally is drawing down the median price.” Agents, stop fighting with all the best priced buyer-baited REO listings. Be the agent with those listings. Watch the FREE Agent REO Secrets video now Celebrate The Spring Housing Boom! . Sales were up in all four regions, with the West outperforming. In California, the median listing price rose for the first time in three years. Government data last week showed a rebound in U.S. housing starts and new building permits in February. “It suggests that the drop in prices and mortgages rates and an increase in affordability are having an impact in the market,” said Alan Gayle, senior investment strategist at Ridgeworth Investments in Richmond, Virginia. “Stabilization in the housing market is critical for the economy to start, and this is a good report.” There is hope that the government’s $272 billion package to stem the tide of foreclosures, together with aggressive efforts by the Federal Reserve to keep interest rates down could lay the foundation for the housing market’s recovery. NAR’s Yun said the government’s stimulus package could add 1 million sales this year, but depressed levels of consumer confidence and rising unemployment could derail this projection. The median national home price declined 15.5 percent in February from a year ago to $165,400, the second biggest decline on record. The inventory of existing homes for sale rose 5.2 percent to 3.80 million from the 3.61 million overstock reported in January. That represented 9.7 months’ supply at the current sales pace, unchanged from January. Analysts said reducing this stock of unsold homes was critical for the housing market’s recovery. “An overhang of inventory will continue to plague the market, putting downward pressure on prices and construction activity for some time to come,” said Adam York, an economist at Wachovia in Charlotte, North Carolina. “The housing market will remain stressed until more reasonable inventory levels are restored.”

Thanks to timandjulieharris.com If you are an interested home buyer or seller please visit my website at ForbesRealtyOnline.com