Odelia Aminov

$8000 Tax Credit EXPIRES 12/1/09

First Time Home Buyer:

Did you know the $8000 government incentive program is just about over? On paper it seems like there is plenty of time, more than 3 months. But the reality is transactions are taking longer to process these days and can easily linger for 45 days or more, when factoring in the new appraisal laws and tightening underwriting standards.

That means you have a month and half to search and find a house and get an agreement on it... Doesn't sound like plenty of time anymore, does it?

CLICK HERE to start your journey to smart homeownership!

One "seasoned" agent refused to give my clients a chance to beat a competing offer because he believes "bidding wars are unethical".

It all happened about a month ago when I took my buyers to see a beautiful house in Huntingdon Valley listed by a Philadelphia Remax agent. It took no more then, oh, 3 seconds for them to fall in love with this house. It had absolutely everything they were looking for and they were more than ready to make a move after months of online searching.

We scheduled a 2nd showing for the next day so their folks could get a look as well (first time home buyers...) and the plan was to write up the offer immediately afterwards. As always, I began some investigative work and made the Seller's agent aware of my clients' strong interest. In return, the Seller's agent, who was far for being any kind of courteous on the phone, informed me there was an offer on the table that was still being thrown back and forth and was to be finalized the next day. I persuaded him (more like begged) to hold off until he had our offer in hand so that my buyers have a shot at it.

Looking at the comps we felt the asking price of $450k was a little steep and with no clues as to where the other offer was hanging we offered $425k, 45 day closing with a strong FHA pre-approval. We rushed to get the offer off to the listing agent, cautiously optimistic. When I dropped the offer I told the agent plain and clear that my clients would be willing to fight if needed.

An hour later I got a call from the listing agent saying the Seller decided to accept the other offer and that it's a done deal. I was blown away. It didn't even occur to me this is a possible scenario. Shocked, I asked "why didn't you give us a chance to come back? We could and would have done better". His reply was just as shocking: "I don't believe in bidding wars. They're unethical." "Really?" I asked in amazement. "Isn't your duty to get the best possible deal for your client? And last time I checked, the Code of Ethics has no problem with aggressively negotiating for your client. Can you honestly tell me what you just did was in your client's best interest?" The conversation (that would be a nice way to put it) went on for a few more minutes before he decided to hang up on me.

The craziest part of the story was, the other offer was just a couple of thousands more. With a little more work, this agent could have gotten his clients a much higher sales price so they would ultimately net more.

So, agents beware! there are agents out there that make up their own ethics rules and you could be their next victim...

Please feel free to weigh in on the comments section!

For the first time in recorded construction history, an innovative local development company will attempt to build a totally green and modern house for just $100,000 in Philadelphia.
By making this creative idea a reality, Postgreen, the developer, could easily crush a social myth or two. Though ecology awareness has seemingly increased in recent years, it seems that going green was a privilege reserved for the affluent. Those who are actually able to take action and install environmentally friendly systems or integrate green technologies in their homes are mostly upper class folks, celebrities and alike (to their credit, many took the green thinking seriously and promoted the "coolness" of the matter so it appeals more to the general public). But today, more than ever, green isn't just a color, it's a statement. So why shouldn't people be able to live it?

Postgreen is determined to show new, green and modern is indeed possible in a home for an affordable price IF designed properly. After quite a bit of brainstorming came the realization that the mechanical aspect should come before any décor considerations. The logic behind that is simple: it'll be much easier for the future homeowner to upgrade the kitchen floor to tile, for instance, than to increase the efficiency of say, the lighting system. So though the design may be simplistic and minimal, the real value just may hide inside the walls. Amenities included are solar thermal hot water, rainwater collection, floor heating and passive A/C to list a few.
Some quietly say this initiative has the potential to revolutionize the construction world. With 100K homes, buyers may now prefer a green home without even considering global warming or caring about being environmentally friendly. In other words, the affordability alone can steer many in the right direction to create a win-win for all and perhaps bring new awareness and inspire the homeowners to develope an matching environmentaly friendly life style as well.. So why not continue on this green, happy path?
Now imagine what will happen if commercial developers and large government bodies capture and utilize this knowledge for future projects. Tomorrow will not only look greener, but so much brighter for all of us.
Read more about the 100K house and get daily blog updates at www.100khouse.com

What's the story with Sheriff Sales in Philadelphia?

Twice a month long lines form outside the Auction room at the offices of the Sheriff of Philadelphia, John D. Green.

The circumstances are rather unfortunate: All assets for sale have been taken away from their owners as a result of mortgage payment default or delinquent real estate taxes, despite repeating warnings from authorities.

Once the RE asset reaches the Sheriff's hands, the Sheriff will attempt to sell it at an attractive price.

The majority of the bidders are RE investors that will purchase the property on the spot, despite not having seen the interior of the house or witnessing its condition. Some investors will buy to fix and flip and some will buy, fix up and hold to generate passive income from tenants.

Now, even though Sheriff Sales might seem like a win-win, they do pose a serious risk.

The Sheriff will clear any title issues pertaining to creditors with interest in the prop; however some will not be covered by the Sheriff: this goes for IRS liens or environmental damages which can become a very costly mess.

Reviewing the title record using a title search is the most effective way to expose future obstacles. However, many title companies are reluctant when asked to insure a Sheriff sold property.

It is also important to remember that owners, who lost their property at a tax sale, have the right to regain ownership of their property if their debt was paid off in 90 days from sale date. So theoretically, an investor who took hold of the prop, rehabbed and rented it out might have to turn it over to the original owners at the end of 90 days or before, at no compensation.

The good news: not only the Sheriff supplies the good deals. Today's slow market places the Buyers in a strong position and signals opportunities. Interestingly enough, foreclosed properties that weren't successfully sold by the Sheriff will normally go back to the bank's possession and will be marketed in the open real estate market by a licensed RE agent. Only now it will feature free and clear title complements of the Sheriff and will often be offered at a price lower than market value, possibly even lower than the minimum bidding price at the auction.

The Sheriff will undoubtedly continue to provide steady flow of investment properties, but if it's quality for the price you're after, you better keep your eyes on the big picture.

The next great bargain might be right under your nose!

**Due to a moratorium on mortgage foreclosure sales requested by City Council , the sheriff has postponed the sale scheduled for April 2008. Please be advised that Auctions' dates and times should be verified.

Disclaimer:

This article was written as an opinion and does not constitute legal advice.

© All rights reserved to Odelia Aminov, 2008