Tony Card, Your Big Bear REO Specialist

On June 21, 2010 GMAC will be offering financing incentives on their REO properties. This program will help buyers save some money on fees and services when buying a REO in Big Bear that is owned by GMAC. Not all GMAC REO properties will qualify for this program. When I get new listing that do qualify, it will be noted in the MLS and I will have informational packages at the properties. As always, I am available by phone or email to answer any questions that come up regarding this new and exciting program.


SAVINGS

One Year Home Warranty at no charge
No Pre Approval Fee
No Loan Application Fee
No Charge for Credit Report
No Appraisal Fee



Qualifying Loans


Conventional Loans (Fixed or Adjustable)
FHA (Fixed and Adjustable)
VA (Fixed and Adjustable)
Jumbo (Fixed and Adjustable)


There is going to be a lot more information coming out in the coming days. As GMAC provides me with the information, I will be posting it on this blog.

You can contact me anytime by phone or email my phone number is 909 436 8043 and my email is tony@tonycard.com

The Big Bear Valley is expecting the number of bank-owned REO properties to rise in the summer of 2010. Here are 7 Tips that can help you snag a bank-owned property.

First- Hire an REO expert with experience buying and selling bank-owned properties in the Big Bear Valley. I am that expert

Avoid lowball offers. Since most bank-owned properties in Big Bear are being sold at list price or above, a lowball offer will not work. Consider submitting an offer slightly above list price.

Determine the value of the property. You make your money when you buy and not when you sell. I can help you become an expert in the Big Bear market so you can recognize a bargain instantly when you see it. Also have an inspector and contractor evaluate the property and itemize all the repairs that need to be made. Subtract the cost of these repairs from the estimated value.

Submit a complete package. Each lender has certain guidelines for submitting offers on property in Big Bear. When you arrive in Big Bear to look at property, be prepared. Bring proof of funds if you plan on paying cash, a bank account balance statement works well for this. If you need to take out a loan, bring your pre qualification letter and your check book.

Write multiple offers. Don't expect your first REO offer to be accepted. Competition is fierce for Bank Owned, REO property in Big Bear. Be prepared to write multiple offers on different properties before you land one.

Prepare for counteroffers. Banks will often send you a counteroffer at a higher price. You may be willing to raise your price slightly with the first counteroffer, but if a second counteroffer comes in, respond with your "best and final" offer.

Be prepared to walk away. If the bank doesn't accept your offer or you're unwilling to raise the price during the counteroffer period, be prepared to walk away and find another deal.

I don't usually use AR to complain about other Realtors or agents, but after what took place last week, it is time to vent!

I called a potential buyer about ten days ago as follow up from when she was visiting our web site. This particular lady told me what she was looking for and I sent her a list of current listings in Big Bear that fit her needs. The next Monday I received an email from the buyer asking for information on three of the listings that I sent over. After providing her with more information on the properties, I learned that she was in Big Bear over the weekend and was able to access one of the properties when someone else was looking at it. To make a long story short, the emails and phone calls when back and forth with the person asking me to write up an offer for her the following day and email it to her. The next morning, I sent the offer over and then waited for her to send the paperwork back. When nothing happened, I tried one more follow up the next day and was then told by her in email form that she was thanking me for all of my help, but she was having her friend who lived down the hill make the offer.

As Big Bear is a small community, it didn't take much research to find out that the friend who wrote the offer worked for a mortgage company and the person who signed the offer was a broker from a different brokerage all together.

I'm just curious; does this happen a lot in this industry? Are there that many unscrupulous agents out there that tell their buyers to go to a place like Big Bear and pump the local Realtor for all of the information that you can. Telling them that once the buyer feels comfortable with the information that they were able to obtain, to come back to the down the hill so that the friend can put the deal together.

If these agents were really thinking about their client best interest, they would either come to Big Bear and show them the property, or refer the client to a local Realtor. A local Realtor who knows the market and can direct the buyer to a property where they will get the best value for their investment dollar.

These agent who do this don't give a da** about the client. It seems to me that all they care about is lining their own pockets

When writing my last blog, I discussed the Home Inspection process in Big Bear and today I thought I would take it one step further and discuss who is responsible for paying for repairs that came up in the home inspection.

There are a number of buyers that think that after getting a home inspection, they then expect the seller to make all of the repairs that came up as a result of the inspection. In trying to shed some light on that subject, let's examine a few things.

What is required of the seller in order to sell a home in Big Bear?

The California Residential Purchase Contract states that the only thing a seller is required to do to his house in Big Bear, or anywhere else in California for that matter is to strap the water heater and make sure that there are working smoke detectors in the bedrooms. That is ALL that the seller is required to do in order to sell a house in Big Bear.

What is the purpose of the Home Inspection?

The purpose of the home inspection is to give the buyer a better understanding and overview of what they are buying. You may have picked out the best looking cabin in Big Bear, but by letting the home inspector take a look at the place, you may find out that there are plumbing leaks, electrical problems, roofing issues, and so on. By letting the inspector go through your choice of properties in Big Bear, you then know what the true condition of the property is.

What do you do with the inspection report once you have it?

Once the inspector has completed his work on your dream home in Big Bear, he is going to issue you a report that explains all of his findings. Once you've read and understood the report, what do you do with it? Again, the report is to give you, the buyer a clear understanding of the condition of the property. Some buyers think that after spending $250.00 to $300.00 for the report, that they should then turn the report into a Fix It List for the seller. This is truly a misconception.

Will the seller pay for any repairs?

The Purchase Contract gives the buyer the right to do the home inspection and to ask the seller to make repairs. As I stated at the beginning of this blog, the seller is not required to make any repairs other than to make sure that there are working smoke detectors in the bedrooms and to have the water heater strapped. After being presented with a repair request, the seller may or may not agree to make any of the repairs that you, the buyer are asking for. Normally, if the seller agrees to make repairs, the buyer will then sign off the inspection contingency and move forward with the close. If the seller refuses to make any repairs, then the buyer has to decide whether to move forward with the close and buy the property as is. If the repairs are too extensive and the seller won't make any of the requested repairs or offer some sort of credit to the buyers, then the buyer can simply back out of the deal.

Why should I have a Home Inspection on my Big Bear Property?

When it comes to buying a home in Big Bear, the question of why have a home inspection and who pays for it comes up quite frequently. Let's take a few minutes and address both of the commonly asked questions that I get.

Who pays for the Home Inspection?

The home inspection isn't a required inspection in Big Bear, but it is highly recommended. As it isn't a required inspection, the buyer would be responsible for paying for the home inspection.

How much does the Home inspection Cost?

The cost of the home inspection on a home in Big Bear will vary depending on the size of the home. Most home inspectors that I deal with base their fee off of the square footage of the property. Unless you are looking to buy something rather large, the cost of the home inspection will generally run you somewhere between $200.00 and $250.00

How do I choose my Home Inspection?

If you look in the local yellow pages in Big Bear or anywhere else for that matter, there will be a long list of home inspectors. So, who do I choose? The first thing I would do as a buyer is to ask my Realtor who they recommend for the inspection. Generally, your Realtor is going to have some recommendations for you. If you find yourself looking on your own, then you want to look for two important things. The first question that you want to ask the home inspector is if he is a licensed general contractor. Being a licensed General Contractor is not a requirement in Big Bear but I would think that you want someone working for you that know what he is looking at. The second thing that I would ask the home inspector is this. Do you have Errors and Omissions Insurance? Otherwise known as E & O Insurance. No matter how good the home inspector is, he is still human. Even the best will miss something every now and then. By carrying E & O insurance, he is well covered in the event that he misses something and it turns out to be something serious. I have guys come in and tell me that they are doing home inspections and they are asking for my business. My first question is this. Do you have E & O? Most simply say NO, while others ask me what E & O is! I thank them but explain why I won't be recommending them to my clients.

Why spend the money on a Home Inspection?

When you buy a cabin in Big Bear, the owner is suppose to fill out a number of different disclosures, answering truthfully about the condition of the property. What if you buy a bank owned REO property where there are no disclosures? You need to find out what the true condition of the cabin is and you really need to have that done by an uninterested qualified third party. You wouldn't buy a car without taking a test drive and you shouldn't buy a home without having it thoroughly inspected by a licensed professional. A home is a large investment and it is imperative you know what you are getting yourself into. I've sold new constructions that have a list of things wrong with them. How would we have found out without the home inspection? It doesn't matter if it is a brand new home or one built in 1930, you need to get a home inspection.

If you're going to buy a home in Big Bear, or anywhere else for that matter, get a Home Inspection!