Todd Pierceall

I recently read a very good article detailing the differences between a general warranty deed and a special warranty deed. The article was written by a real estate attorney. After describing the two he went on to give his opinion. His opinion was that agents are not necessarily helping their client by accepting a special warranty deed when negotiating a foreclosure.

While in theory this may be correct but in the real world, do we have a choice? If you say yes, then I have to ask, Have you tried it? I have. The result? My client ended up with a special warranty deed and extra attorney costs.

I think everyone has to keep in mind that in a foreclosure, the seller has absolute control. They know the property is being sold at a lost and they also know if there is one offer there will be more. It is not a typical sale where the seller is on pins and needles hoping the negotiations go well. Foreclosures are typically take it or leave it.

My experience has been that you can ask and then drop it. Even if your buyer hires his/her own closing attorney they are still going to end up with a special warranty deed.

If anyone else has been able to accomplish something different I would love to hear how. It could be an education for all of us.

Todd Pierceall
Prestige Properties
www.prestigeproperties4u.com

Okay so you have a home listed and your sellers accept an offer. What is up with the buyer's agent calling every 5 minutes to see when they are going to get the signed contract? I understand everybody wants it in writing but calm down!

First, most decisions are not made on the spot. After the offer is presented the client usually wants a little time to think about it. They will call you later to say yes or no. If they say yes, then you make an appointment to pick up the paperwork and make sure all the appropriate signatures and initials are in place.

I DO NOT rush over to the sellers house the minute they call and say they have accepted. Despite what the buyer's agent may think, I have other clients and responsibilities. That is not to say that this particular contract is not important. Like I said, I will make an appointment and that will be at a time that is convenient to my clients, not yours. If it is immediately, that's great. If I have to wait till that evening when they both get home from work, that is fine as well.

Breathe, relax. If you get upset then so will your clients as they feed off of you. I will tell you when to expect the signed contract and calling me every 5 to 10 minutes does not make it go faster. Work together and respect each other. We can do it!

Todd Pierceall
Prestige Properties
www.prestigeproperties4u.com

Don't you love it when you are right. Especially when it it to your client's benefit.

I recently listed a home for a couple that had remodeled it. The husband was a general contractor and licensed plumber and elctrician so I should not have been suprised to see the fantastic job they had done. The home was in a small mill town located in my area and home prices are low to begin with. Not much over $100k. The area has seen some hard times but recently has become one of those areas where people are looking to buy because they know they can buy so cheap and then renovate and have a great home for not much money. Many of these homes have never been updated and were originally built in the 1930's when textiles were king. They usually sell around $80k.

In advising my clients, I told them this was truly a great home and the rennovations were excellent. I advised a price and they laughed. They said no one would pay that in their area. I put it on the market for a lot less than I thought it should be but it was what my clients wanted and they stood to make a good profit. 12 hours later we had three offers and all three were over asking price. They were shocked and delighted at the same time.

I told them this was one of those times I really enjoyed saying "I told you so!" They laughed and asked if I would be willing to list another property for them. Of couse I will.

Todd Pierceall
Prestige Properties
www.prestigeproperties4u.com

Does anybody have any idea if the tax credit is going to be allowed as down payments? It was then it wasn't. Now it is again but not until they teak it a little and try to refine the requirements. So..... is it?

Seriously, if anybody knows more about this I would love to hear it. From my understanding there are several states that had programs in place already that facilitated this move and are allowed to use the tax credit right now. If you are in one of those states let us hear from you and how it is working (or is it?)

I know there are pros and cons to this program, of which I am not going to currently weigh in on, but I would like to know if this is a viable option that is available to my buyers.

Thanks

Todd Pierceall
Prestige Properties
www.prestigeproperties4u.com

What!!!??? Just when I thought HUD was doing something to help the housing market now I hear it is quietly being swept under the rug.

The latest from one of the lenders I work with is that the $8000 tax credit that HUD announced they were trying to implement as down payment is now being thought to be poorly thought out and will not come to fruition.

Say it ain't so. Has anybody else heard these vicious rumors? Let me in on any updates.

Todd Pierceall
Prestige Properties
www.prestigeproperties4u.com