Why Would You Use An Estate Agent When Buying Spanish Property Part 1

Who would want use an estate agent? Part 1

I have received many messages recently regarding estate agents who, it appears are getting a battering for a number of reasons ?lack of professionalism, high commission charges, leaving clients in the lurch, and acting on their own interests. Whether a buyer or seller ? is it worth using an estate agent?

Let me start by saying this article is neither in condemnation nor defence of estate agents, their commissions or practices, it is a reflection on the contrast and similarities between here and other countries ? primarily the UK. We will look at how they charge ? what they do for their money and whether or not it is worth it. I will be playing devils advocate on both parts to balance the equation ? even though by being an agent myself I am naturally going to have a bias.

We will look at how to go about buying or selling a property without an agent. As you would imagine this is will be emotive. Many will agree or disagree with what is said and if that facilitates debate and at least gets you thinking it has achieved its objective ? ?oh no he?s off again ? more controversy?, I hear you cry.

I would hope to spark a debate about your experiences, whether good bad or indifferent, how this measured up against your expectations, what was promised and how you felt before, during and after the process. If you have any comments about this article or the subject in general then please respond.

You give love a bad name

There is no doubt that estate agents have a bad name in Spain. Most of the stories I hear are full of ?Don?t use these agents? ?watch out for high charges? ?Rip off merchants abound? ? X left me high and dry?. I even know of one couple who were left 20kms from Gandia by a large agent based in Gandia because they refused to give certain details to the agent. This was an elderly couple left in the middle of nowhere

So why has the industry received such a lot of negative press in recent years and is it warranted?

Most of us have experienced buying in Spain and I would bet that most have bought through an agent. There are many anecdotal cases of rip off agents ? people charging what they can get away with? indeed I know of four such cases. But are all agents the same?

As in all walks of life there are good and bad people and it is usually the bad that give the rest a bad name. A lot of foreign agents are probably guilty of nothing more than ineptitude, lack of professionalism and a lack of knowledge. However there can be serious repercussions when things go wrong.

Let?s tackle probably the most contentious issue ? estate agents commissions.

How many times do we hear that estate agents overcharge in Spain? How can UK agents charge 1-2% yet their Spanish counterparts charge 3-6% and more. Let?s set aside the rip off agents and assume the ones we are talking about charge 3-6% fees. What on earth can justify these high charges?

Wait a moment! High charges!

Do you know that in Germany, France, Belgium and Holland the average sales commission is 6% and can be as high as 10%, it is 6% - 7% in the USA. No wonder Dutch and Belgian clients don?t balk at such commissions here But because UK buyers expect to pay 1-2% other countries should follow suit. But we aren?t comparing apples with apples here. According to the API ? the professional body of estate agents similar to the NAEA ? a realistic level of commission is between 3% and 6% depending on the transaction. They even give advice as to what type of properties should attract what type of commissions.

But why are real estate agent commissions so high. If UK agents can make a profit (and they obviously can) from charging 1-2% why cant Spanish agents.

Typical UK agent

They have an office in town, their catchment area is 5 mile radius and there are probably 10 agents locally compare to Oliva - a small town - there are at least 30 agents probably more home based intermediaries.

UK agents advertise in the local press, have a website and are probably part of a bigger group and/or advertise on a property portal. They give you a valuation of your property, put up a for sale sign and then wait.

Once the buyer enters the office (rather than the agent going to the buyer) they take them to view the house ? or do they? When selling my UK house the agent just sent the people. When an offer is accepted they inform both parties and their solicitors and arrange a mortgage (mainly because they get a commission? but in fairness they have to be regulated to offer mortgage advice).

After sale ? what do they do? I cannot remember the name of one single estate agent that sold my houses in UK (and there have been a few(, none bothered to keep in touch afterwards. So forget after sales service it doesn?t exist.

They also probably sell in the region of 20 -30 properties per month (they have most houses exclusively so if a client wants that house they have to go there) and smaller, more densely populated area. They can also see 5 or 6 clients per day ? or more if there is more than one person in the office.

So in summary then a UK based agent will do the following

1.Value your house and probably have it exclusively or charge you double if you go with another agent

2.Put it in their office window

3.Put it on their website

4.Maybe you will be part of their normal display ad

5.Arrange viewings for you

6.Assist in the negotiation

7.Inform both parties of a sale pending subject to offer.

8.Sit back and wait until the commission is paid

9.All this for between 1 and 2%

Next issue we will take a look at their Spanish counterparts and see what they do to justify their charges. If you have any comments on the subject matter or want any advice then please feel free to contact me. vbtudor@spanishproperty-direct.com and for more articles about buying in Spain look at the website www.spanishproperty-direct.co.uk

Next issue we will take a look at their Spanish counterparts and see what they do to justify their charges. If you have any comments on the subject matter or want any advice then please feel free to contact me. vbtudor@spanishproperty-direct.com and for more articles about buying in Spain look at the website http://www.spanishproperty-direct.co.uk. If you would like a copy of the free guide to buying a property in Spain then drop me an email and I will send you a copy by return.

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Wisconsin Foreclosure process

Wisconsin performs its foreclosures judicially. Specifically the circuit courts of Wisconsin have jurisdiction for the filing of a foreclosure complaint. There are nine

(9) separate steps to the foreclosure process in Wisconsin. They are 1) Breach letter; 2) Complaint to foreclose; 3) Lis Pendens 4) Judgment; 4a) default judgment; b) summary judgment 4c) Final judgment 5) Newspaper Publication; 6) Foreclosure Sale; 7) Confirmation of Sale; 8) Confirmation Hearing; 9) Deed of Foreclosure.

1.) Breach letter

The first step in the Wisconsin foreclosure process is for the lender to notify the homeowner by certified mail that he/she has breached the contractual terms of the promissory note and to notify the owner of its intention to foreclose on the home and seek a deficiency judgment.

This letter will be forwarded to the homeowner prior to the filing of the complaint to foreclose. This is the end of the private information which we will only see if we are able to enter the home prior to an auction and purchase the property from the homeowner directly.

2) Complaint to Foreclose

The Complaint to Foreclose is just a lawsuit which is filed in the circuit court where the property is located. The attorney prepares the complaint after a review of the file, performs a title search and has sent a breach letter to the homeowner.It recites the facts of the breach of contract by the homeowner.

For instance the complaint will recite the amount of the original mortgage, the current amount that the homeowner is behind on the mortgage and will include all of the other parties of record.

3. Lis Pendens

A Lis Pendens is filed after the complaint is filed to serve as notice to the world that the lender has an interest in the property.

4) Judgment

There are three (3) ways that a judgment can happen in a foreclosure case. First, the bank can win by a default judgment. Second, the bank can win by summary judgment.Finally, one can win after a trial.

4 a) DEFAULT JUDGMENT

A default judgment will be entered after the filing of the complaint and servings the defendants. The defendant then will either have a valid defense or not. If none, the court will enter a judgment for the bank by either affidavit or based upon oral testimony. Each defendant has to be notified of the hearing.

In Wisconsin, most foreclosure judgments are entered by default and not after a trial due to the consequences of filing a dilitory defense. The courts have required some Wisconsin lawyers to pay some of the cost and attorney fees of the bank (up to half) when filing an answer just to delay the inevitable foreclosure.

4b) SUMMARY JUDGMENT

If a homeowner files an answer with a defense then the rules require that a summary judgment hearing will be held within eight months after the filing of the complaint. The summary judgment is simply a way to get rid of a case that has no issues of fact before the expense of a trial. The case is heard after either the bank or the homeowner sends a notice to the other parties twenty days prior to the hearing along with affidavits. The other side will file opposing affidavits and then an evidentiary hearing will be held and a decision based upon a four prong test.

Here the bank will also file a motion for costs based upon a frivolous defense or pleading. Unlike most states, Wisconsin will require the attorney and the person acting in bad faith to stall for time to pay the fees of the moving party.

4c) FINAL JUDGMENT

Once the court has established that a judgment shall issue, they will enter into a judgment which will set out the amount of the debt due on the house. The Court can by statute add the following items to the judgment. 1) interest from the note to the date of the sale. 2) reasonable fees for the opinions of title. 3) Attorney fees of no more than five percent (5%) of the judgment. 4) Any real estate taxes paid on behalf of the homeowner. 5) Any insurance paid on behalf of the homeowner. 6) Any repairs done on the property on behalf of the homeowner.

The judgment will detail the amount of money owed to the lender, the date and time of the public sale of the property. The court will require the lender to publish a notice of sale in a newspaper with a general circulation in the county where the property lies once a week for two consecutive weeks.

5) NEWSPAPER PUBLICATION

The notice in the newspaper is required to have the following information contained therein:

1) The time and place of the sale.

This notice must be published for six consecutive weeks prior to the sale with the first notice not longer than eight (8) weeks before the sale.If the sale is adjourned for any reason the continuance and new date must be published in the newspapers where the property is located. The notice in the newspaper is required to have the following information contained therein:
2) A description of the property to be sold.
3) The time and place of the sale.
4) A statement that the sale is being made pursuant to a final judgment.
5) The heading of the case.
6) The name of the clerk ordering the sale.

This notice must be published for two consecutive weeks prior to the sale with the last notice not less than five days prior to the sale. If the sale is continued for any reason the continuance and new date must be published in the newspapers where the property is located.

6) Foreclosure Sale

The sale is then held in the courthouse at the county courthouse where the property is located. The high Bidder is required to deposit ten percent (10%) of the winning bid by certified check or cash with the sheriff. If the high bidder defaults on his obligations to make all payments within the prescribed time the high bidder will lose his/her deposit and the property will be re-advertised for sale.

7) CONFIRMATION OF SALE

Upon placing the deposit the sheriff send in a motion for confirmation of sale. The confirmation is then mailed to the parties including the winning bidder no less than five (5) days before the confirmation hearing. The notice shall state the following:
1) Amount of the judgment
2) amount realized at the sale
3) amount of the personal judgment sought against the homeowner
4) the time and place of the hearing.

Upon placing the deposit the clerk completes a certificate of sale and this served upon each interested party. This certificate of sale states the name of the high bidder and the price paid.

8) CONFIRMATION HEARING

The standards to confirm a sale are as follows.

1) If the sale was above the amount of the debt, there will be a presumption that the property sold for a fair value. 2) If the property sold for less than the debt there will be no presumption and the court will review the sale until it is satisfied that it has been sold for fair value and there is a showing that there was a mistake, misapprehension, inadvertence on the part of the interested parties or prospective bidders.

If the Court finds that the property sold for less than fair value the court has three options:
1. Order the sale void and schedule for resale.
2. Set a minimuim upset price for resale.
3. Confirm the sale if what the court feels is fair value is credited to the judgment.

If no objections are filed within the next ten (10) days the clerk will file a certificate of title. The property then passes to the high bidder.

9. Deed Of Foreclosure

After the confirmation hearing the winning bidder will be given a deed either of the sheriff or referee?s deed vesting the bidder with all right title and interest of the homeowner. The bidder gets the property subject to any senior liens.frontgateconsulting.com/

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Atlanta Real Estate Online

Atlanta real estate online services help you meet all your real estate needs in and around Atlanta. They help you to buy or sell your property or to relocate. These online services provide information on all residential and commercial properties for sale. Atlanta real estate online services are equally helpful for both experienced investors and first-time buyers.

There are hundreds of reliable websites offering you many kinds of Atlanta real estate services. Most of them have good listings of homes and other properties. They display high-quality photographs of homes and office buildings. In most cases, price tags are also provided. Certain real estate firms with online services make use of multiple listing services (MLS). Many companies offer mortgage help as well. Online real estate services usually monitor your deal from the very beginning to the final settlement.

Most Atlanta real estate agents foster their own websites. They provide huge area-wide lists of real estate properties. Information about some of the best real estate agents is also provided through various websites. These agents will help you make a market evaluation of properties, price your home, and pursue the various procedures involved in the buying or selling process.

Online Atlanta real estate services offer you many advantages, especially if you are an outsider. They offer direct access to various properties available for sale. These services keep you abreast of the changes in trends and help you make decisions accordingly. Atlanta's online real estate is flourishing, owing to a rapid growth in the Atlanta population and the increased rate of employed people.

Atlanta Real Estate provides detailed information on Atlanta Real Estate, Atlanta Real Estate Agents, Atlanta Commercial Real Estate, Atlanta Real Estate Listings and more. Atlanta Real Estate is affiliated with Chicago Suburb Real Estate.

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Commercial Metal Buildings

There are many advantages to choosing commercial metal buildings over the more traditional wooden structures. Metal buildings, such as steel buildings, are often quicker to build because most companies offer kits with a pre-arranged design.

Commercial metal buildings are also strong and sturdy, which makes them a great option for areas that have extreme weather. Many report that choosing commercial metal buildings over the traditional wooden structures can also help save money.

There are so many companies that offer commercial metal buildings, choosing one can be overwhelming. Below is some advice that will help you choose the metal or steel structure that best meets the needs of your company.

First, decide what type of metal building you require. Commercial metal buildings span a whole range of options including whole building construction, storage facilities, air plane hangers, etc. Some companies specialize in buildings with certain uses, whereas others take a more generalized approach. If you need several types of structures, picking a company that has many different services is your best bet.

Next, determine your budget. You may have specific budget needs, or perhaps you are waiting to see how much your desired structure costs. If there isn?t enough money in your budget to spend on what you need, consider taking out a loan or a mortgage. Ask your financial advisor for the best options.

Once you choose the company and decide on your budget, you will have to pick your specific design and see to its construction. If you are knowledgeable and skilled in the building craft, you can probably construct it yourself with a team. If not, hire an expert. Even if you are skilled, hiring an expert to help because it can help save time.

Commercial metal buildings are a great alternative to traditional wooden structures. Researching which type of metal or steel building is best for your company can be a long process. However, the benefits of these types of structures outweigh the disadvantages, thus making the process worth it.

Metal Buildings provides detailed information on Metal Buildings, Metal Storage Buildings, Metal Building Kits, Commercial Metal Buildings and more. Metal Buildings is affiliated with Pre-Fabricated Steel Buildings .

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The Local Community

Whether you?re buying a residential house for investment purposes or as your home, the local neighborhood and community where it is located will make a big difference in your enjoyment of that property and in your prospects for the future. Here are some of the basic things to look for:

1. Essential Shops and Services

Are all the essential shops and services in the area and are they you?re your house? Drive around and look for the local grocery, convenience stores, church, gas stations, dry cleaners and the like. While you?re at it, take a good look at the community?s leading shopping center. Oftentimes, if the local shopping center is in decline, chances are that the neighborhood is in decline as well. In addition, if there are a lot of vacant storefronts along that neighborhood, it might be a good idea to explore other options, perhaps go down a street or two for your house hunting.

2. Proximity to neighborhood center You want your home to be neatly tucked away at the center of the residential neighborhood or as close to it as possible. You do not want to purchase a house on the edge of town or close to its outskirts. And neither do you want a house that is at the back or side of a busy thoroughfare either. If it?s a single family residence you are eyeing, try to avoid purchasing property that borders a bustling business enterprise, condominium, apartment complex or school because these places are naturally bustling with activity which can be a distraction.

3. Access to major thoroughfares The ideal property provides easy access to local highways, major traffic routes and major thoroughfares as well as to mass transit. Try to avoid purchasing a house located on a street that is a favorite shortcut of motorists between two busier streets. If it?s a residential home you?re thinking of buying, also avoid a house located at a corner lot since these tend to attract more street traffic and may not be that safe for children. Instead, try to find a house that is in the middle of the block or on a cul de sac. Now if it?s a business or commercial property you are eyeing, a corner lot would be more desirable.

Jonathon Hardcastle writes articles on many topics including Real Estate, Investing, and Finance

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Help Your Real Estate Listing Clients: How to Stage a Kitchen in the Age of Dining Out and Fast Food

Today the kitchen has lost its position as the ?heart of the home? that it enjoyed in generations past. According to a 2004 report on dining out, published by Restaurant.org, single professionals eat over 50% of their meals away from home. And, in recent trends data? the National Restaurant Association (NRA) reports that restaurant sales will rise nearly twelve-fold from the 1970 figure of $42.8 billion to a whopping $511.1 billion this year! So, where does this leave you when you are trying to show a home? It makes it essential that you outline the ideal kitchen and help your listing clients ensure that their kitchen shows well.

Yes, some people are gourmet cooks, some families still eat dinner together every night, and some individuals consider their kitchen the only real place to ?congregate with friends.? But many homeowners eat out more often than they cook at home. Add to that the number of meals that are ?delivered? and the number that are eaten ?en route? to work and school?and you may find that the kitchen has taken a back seat when you are showing a home.

According to the Meal Consumption Behavior report, ?Males between the ages of 25 and 34 eat commercially prepared meals most frequently ? an average of six times per week? and higher income earners are even less likely to prepare food at home.

Those with a household income of $75,000 and above dine out more often than lower income households. These higher income households spend 46.7% of their entire annual food budget on eating out.

Despite these figures, homebuyers still want a ?traditional home.? People who are buying a house often imagine themselves as ?settling down? ? and they want all the time-honored options ... including a nice, roomy, well-organized kitchen.

When you show a home, the kitchen must be inviting. Want to help your listing client create a show-friendly kitchen? Share the following information with them:

What are the top five ways to lose a potential buyer with this one room?

Cluttered counters and walls - The more ?stuff? on the counters, the less counter space your room will appear to have. The more bits and pieces plastered on the front of the fridge -- the more disorganized and cluttered the whole room will seem to be. The more ?decorative? items you have strewn on the walls, the less able your potential buyer will be to imagine their stuff on the walls. The idea is to make the buyer imagine living here? the less of YOU they see, the more of THEM they can project.

Grimy floors/sink/cabinet tops/appliances - In a matter of moments, a floor can become gritty. Add to that a few water spots in the sink, a slight coffee stain from this morning?s essential cup of java and a few crumbs perching on top of the toaster? and what do you get? A kitchen that seems dirty and uninviting.

Be sure you take a look at the kitchen with fresh eyes. Stand at the door and pretend you have never seen it before. (Imagine you are the grime police.) What do you see? If you were your mother-in-law (or maybe your mother) what ?tiny little comments? might you make? Fix those. Now.

Be so bold as to scrub the sink and SHINE it (pay special attention to behind the faucet and the rim around the sink ? use an old toothbrush). Sweep, mop AND wax the floor. Thoroughly clean all appliances ? even in the nooks and crannies. Make it simply spotless.

Unsavory smells/odors - Avoid cooking strong smelling food when your house is on the market. Day old fish, boiled cabbage, onions, etc., will turn off the most interested buyer. Avoid ?covering up? smells with strong sprays, over-scented candles and products. Your favorite ?gardenia? smell may send your potential buyer into sneezing fits.

Instead, consider leaving out a single appliance ? a bread machine, with the timer set to be mid-way through the baking process when the house is to be shown. How many people do you know that don?t like the smell of fresh bread? (Yeah, I can?t think of a single one either!)

Disorganized or insufficient storage space - If your cabinets are brimming with ?stuff? or (goodness forbid) things tend to tumble when you open them, you need to remove all but the most essential items while showing your home. Pack up all the extras in a box (or boxes) and put them in storage. Eliminate your ?junk drawer? and be sure that your plates, glasses and bowls are close together and are located close to where you will use them.

Organize your pantry area and be sure all food items are neatly stacked and appropriately organized and are not located in various cabinets throughout the kitchen. Consolidate them into one general area.

When you finish cleaning and packing away, make sure that what remains is neatly organized and that everything is located where you are most likely to use it. People WILL look in your cabinets. They will try to determine from your use of the area if there is enough storage space. If you can?t live in the space, why would they believe that they can? If you can?t keep it organized, how will they?

Dark and/or claustrophobic d?cor - Dark colors in the kitchen make it less inviting. It makes it harder to cook when you have to strain to see what you are doing. Ample light is a requirement. Natural light is best. If your kitchen doesn?t have quality lighting, you need to add it. Consider ?natural light? light bulbs, add additional light sources under upper cabinets, and make the room brim with warm, bright light. If your lights flicker or are dull ? replace them. In one kitchen I saw recently, there was no window to the outside, but the owner had added a mirror with ?window panel? framing over the sink and a light above it to add light, reflect it and give the impression of a window. It wasn?t perfect, but I was a vast improvement over facing a solid wall while doing dishes.

Claustrophobic decorating would include oversized decorative items in a small kitchen, anything that requires you to dodge, move or step around to do simple tasks. Heavy, low-hanging items that ?close in? the space in a kitchen are also ill advised. I recently saw a wrought-iron pan rack that was hung (too low) over an island in the center of a kitchen. It was covered in pans and it created a visual wall in the center of a modestly-sized kitchen. The cook continually had to ?bend down? to talk to people on the other side of the rack. This type of decorating was too ?claustrophobic? for that space. Replacing the rack with higher-hung lighting would have eliminated the ?squeeze? effect and would have lightened, brightened and expanded the entire room.

What do most people want in a kitchen? They want enough counter space to work and clean line of sight (so kill the do-dads and tuck away the cabinet-top appliances). They want modern, clean, easy-to-maintain appliances. They seek cheerful, well-lit areas (think ?natural light feel?) and enough easy-to-reach outlets (extension cords in a kitchen are both unsightly and unsafe). People looking at a home?s kitchen want to see a space that is inviting and easy-care. They want a kitchen that makes them WANT to stay in for meals -- a place to ?nest? that adds comfort, relaxation and other nourishing qualities to daily life.

? Copyright 2006 by Angela Allen Parker of WickedWordCraft.com

Angela Allen Parker is a freelance writer based in Dunnville, Kentucky. She's an Internet marketing specialist and web content writer, working with real estate clients and small business clients across the globe. She has provided offsite services since 2000. She offers marketing articles for small business owners, real estate agents, and outsourcing professionals at WickedWordCraft.com and writes regular columns and marketing articles for online and print publications for the real estate industry.

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Making the Fresh Start Presentation

So you are out and running your route and have found a homeowner home who wants to listen to a Fresh Start Presentation (FSP). Remember the Fresh Start Presentation is the Homeowner Options slide show that you have. It goes through the advantages and disadvantages of the seven (7) options available to the financially distressed homeowner. They are as follows:
1)Sell on the Open Market
2)Refinance the home
3)Restructure the mortgage
4)File bankruptcy
5)Borrow from friends and family
6)Let it go to foreclosure
7)Sell to an investor

Whether you have scheduled an appointment or have just knocked the door the opportunity to make the presentation will lead to money for you. So what is the best way to make the presentation? Do you start with the overview and then go through each option? Do you ask some preliminary questions and get to the homeowners present position or do you just get to the price we will pay for the home and leave it at that?

The answer depends upon the homeowner and your preparation for your visit with the homeowner. Remember ?Information is power and the key to a successful negotiation and purchase of your next home or investment property?. So if you have failed to prepare for your meeting with the homeowner your chances of success are diminished. We try to gather information for you and put it in the notes. Some information can be gathered by going over the pricing of the home when you have a scheduled appointment. The rest of the information will come from the homeowners? needs and wants and honest eyes.

What follows are typical situations you will run into in the field and what assumptions you should make if you run into these types of situations. They are 1) Research indicates that the home is on the market. 2) Home is vacant; 3) Homeowner just came out of Bankruptcy.

Home on the Market

What assumptions can we make if the home is placed on the market?
1) We know that they are willing to leave the home and move on with their lives.

2) The Homeowners have cut the emotional attachment to the home.
3) They have either eliminated or exhausted the following options: refinance, restructure and borrowing from friends and relatives.
From this we can make the following conclusion: The homeowner is left with the bankruptcy option and selling on the open market or to us. Here is a note from a locator regarding a house that is on the market.

Visited 8/12/06; 1PM. Met HO in driveway. HO's are divorced and selling the property. Home vacant. Property is listed with Briarwood Realty. Presented the Fresh Start Program to HO's. Interior of the home is broom swept condition already. Good condition. Husband was ready to give release, wife not willing to give release today. Wife indicated that she would like to take a few days and to talk with the bank on Monday. We agreed to contact each other on Tuesday 8/15/06. I left contact info with them and received their contact info as well. Will take complete set of photos when I get the release. Both HO's confirm that they have equity in the property.

Now what part of the FSP would you pitch to get the release? How do you begin the process? If I knew the number they had placed on the house, I would talk about market time, home inspections and the possibility of an unsavory investor tying them up until it is too late and purchasing at the auction.

If I did not know the market number I would ask for the price and how long it has been sitting on the market.

This type of presentation should begin with a back-up plan or safety net plan. It should inform the homeowners that we could possibly purchase the property in a quick fashion and net them some money for their fresh start. We would do this by making a deal with the listing broker to continue to list the property after we purchased it. Saving the homeowners the cost of the broker. We could also inform them that they would not have the carrying costs, insurance, taxes, and foreclosure costs that are currently stacking up on the property. All of this may add up to a less stressful conveyance than waiting out a slow market. If you are fairly new at locating just use the making the offer to the homeowner chart to walk you through the offer: This chart is located on the resource page of the website.

When a home is on the market it is fairly difficult to get a homeowner to agree to sell the property to an investor. Reasons are that some mortgage broker has told them that they can sell their home for a number we will not pay. Only time and an auction date will usually make this homeowner come around. A smart locator will make the pitch for the backup plan and wait until it is close to the auction to return for a final opportunity to purchase the property. In the meantime just call the homeowner every week or ten days to check in on their situation. This will allow you to have a continuing dialogue and build some type of relationship with the homeowner.

HOME IS VACANT

What assumptions can we make if the home is vacant?

1) We know that they are willing to leave the home and move on with their lives (they already have).
2) The Homeowners have cut the emotional attachment to the home.
3) That the house is costing the homeowner carrying costs each and every day. We can stop the bleeding by purchasing the home.
4) Homeowner should be happy to unload the property.

Here is a note of a recent vacant home visit:

Visited 8/12/06; 3:15PM. HO not home. Left into letter in the door with personal note. Spoke with the neighbor to get an update on this property. Mailbox is full. Shrubs and vines have overgrown the yard and cover the primary entrance to the house. Lawn has not been mowed in months. Neighbor says that the owner is a great person. He seems to think that the owner has another residence in Marshfield. This property had been up for sale. The HO has been trying to sell it for almost 2 years. He believes that the last listing was $249K. He also has been in the house and said that a lot of work has been done on the inside. Driveway is not paved. Otherwise, nice neighborhood. Dead end street with playground for children. This property is on the quiet end of the street directly across from the playground, corner lot. Looks like a good investment. We will need to track this person down.

Once the homeowner is found the pitch would be straight to the sale of the property to our company. There is little need to go through the rest of the options with this homeowner. It would simply be straight to the sale of the property. Again, this particular note tells us that he had it on the market for 249,000 dollars for two years or so. So we could easily tell him that the price of the property is too high and substitute it for the price that we would sell the property at. (see your manager or the index for the price). Next, I would use the Homeowner chart again to go through the price we could offer on the house and why. Once you as a locator get familiar with the costs associated with a home you can forego using the chart.

This vacant property purchase should be fairly easy once we have tracked down the homeowner. There is no emotional attachment, in fact the homeowner should be relieved to get rid of the property. I would stay on your manager to find these owners and provide you with the means to make a deal.

JUST OUT OF BANKRUPTCY OR IN BANKRUPTCY BUT IS LIQUIDATING THE PROPERTY TO PAY FOR THE PLAN.

What assumptions can we make if the home just came out of bankruptcy?

1) We know that they are finished with most of the options. They can file bankruptcy again but it will not help them.
2) The Homeowners can try to refinance but the cost of the mortgage will be astronomical.
3) That the homeowner has tried everything to save the home and failed.

Here the homeowners have been through the entire process. They have borrowed money from friends and relative, tried to restructure, and refinance the home as well as save it in bankruptcy plan by forcing a payment plan on the bank. Nothing has worked. You need to allow the homeowner a way out with dignity if possible. That may come from you just purchasing the property and giving them enough to begin renting.

They only have two real options left: 1) sell on the open market or sell to us. Your job is to explain to them the problem of selling on the open market with only weeks to go to the auction is not a viable option. The real option is trying to get some equity out by selling to us.

This type of purchase has to be performed with surgical precision. You have homeowners who are emotionally drained from the process of trying to save the home. They trust nobody including the lawyer who took them into bankruptcy and feel like everyone has screwed them. If you are empathetic now would be the time to show it.

Here is a note on a property where this happened.
7/31 note: Relief from stay of auction granted.
11/05 note: In chapter 13 now. He isn't interested in hearing our option as the thought of selling his home makes him cringe. He did agree with me that selling is better than losing to auction. He has the auction stayed for some time now. Let?s keep an eye on his bankruptcy. This is a good home.

From the note the locator has been watching this house since early November 2005. Long time to check in on the property, but it is getting ready to payoff. The new note indicates that the bank has now received the right to foreclose upon the property. It is usually the step before the bankruptcy being dismissed.

The locator will now need to go out to the home and listen to the story of the bankruptcy and convince this homeowner that it is best to sell the home instead of losing it to the bank. This homeowner really does not want to sell the house in fact he would rather stay in the house. With that in mind it is going to be a tough sell.

Again, this pitch should be a straight up number crunching pitch going through the items on the chart. Remember you are going to have to deal with the emotional tie to this house. From the note it is quite evident that this particular homeowner has this tie. When I make the pitch I usually talk about the house as sticks and bricks which is not really a home. The home is his family and the memories which they get to bring with them to the new house they will be occupying. If you can get through the emotional you will purchase the house.

good hunting
http://frontgateconsulting.com/

http://frontgateconsulting.com/

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