Dave Wills , Realtor
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Cell: 763-670-3678
Fax: 763-427-8623
Email: DWills@CounselorRealty.com
BUY
As we all know, there has never been a better time to buy Real Estate - especially for first time homebuyers and move up buyers. The home prices are amazing and choices are many. I will do a market analysis of any properties you are considering and negotiate a great deal on your behalf.
With my website you have the power to search anywhere in the state and set up your own search parameters. The search will update you by email automatically and you can change settings any time.
Email or call me if you need help.
SELL
Contrary to what the media may have you believe, homes that are priced right are selling. It's important to look at the whole picture and not just how much you will get for your home. When you consider the savings on your next home, getting in on a higher investment before property values go up again - and they will - makes this an excellent time to make your move. If you would like to know what your home is worth in this market, call or email me for a no-pressure, complimentary Equity analysis.
MARKETING
In addition to great full service rates, I do a customized marketing plan for each home. Some of the tools I use are: mobile apps, ads in local newspapers and real estate publications, variable rate commission, multiple pictures, virtual tours, public open houses, Realtor open houses, and exposure on all major real estate websites. I have had great success lately with some alternative marketing appealing to the Realtor, as well as buyers.
I have had so many questions on short sales, bank owned properties and on modern day, complicated transactions, that I came up with some pretty good information that will cover many of the questions. It by no means covers it all and does not apply to all situations, being open minded and looking at new concepts is very rewarding but you must be careful. See below:
SHORT COURSE IN MINNESOTA REAL ESTATE SALES TRANSACTION TYPES
Hopefully this will give you a quick understanding of the basics of these confusing real estate times!
Briefly a short sale is where a seller owes more than they can sell a property for and cannot pay their mortgage, they then try to sell the property for less than they owe the bank. There can be 1 or 2 loans. The bank will give them a certain amount of time then they will foreclose on the property and evict the owners. The property is then a bank owned or REO property. The bank will then sell it themselves.
SHORT SALES:
A short sale is where you are buying the property from the seller, but their bank or banks must approve the dollar amount they are receiving. The reason for this is: the seller owes more money to the bank than the property is now worth on today's market so the bank is taking a loss hence you need their approval for how much loss they are willing to take.
After you put in an offer for a short sale you may have to wait 1 to 3 months for an answer as to whether or not your offer was accepted or declined. Please note: during this time they are continuing to collect other offers that may be better than yours. They do not always counter your offer, so if there is a better offer than yours you simply lose.
It is important that you work with an experienced short sale agent as you do not want your initial deposit money to be out of your hands.
Because the property is being sold by the owner you may get full disclosure on the condition of the property (if the owner is still living there). But realize you are dealing with someone who is in financial difficulty. If you remember that you will realize that there is no money on the seller's side to buy you any inspections or to make any repairs. I will give you another warning here. After you make your offer and it is accepted, you will be paying for inspections. If, after studying those inspections you decide not to get the home you will still be responsible for paying for those inspections!
The owner or renters will often still be occupying the property and they may or may not be taking care of it. Sometimes they will even remove personal property (appliances, lighting, other items of value) Because short sales often have renters in them they can be more difficult (but not impossible) to get in to see.
In a short sale you can expect to use the standard real estate contracts.
Keep in mind, many short sales have 2 loans that have to accepted short, the 2nd is often left with very little and is often the reason these deals do not come together. They simply don’t want to accept a token amount to release the 2nd mortgage.
Recently in this market I have seen that some short sale agents are putting properties on the market at a price far below what they know the bank will accept. Here is the reason for that. There is a fairly lengthy process between the owner and his bank to create and accept the short sale. This process is NOT begun until the bank receives at least one offer on the home. So in order to get this process started the agent for the seller is anxious to get an offer, whether it is a good offer or not. However it is very depressing for the buyer when he thinks he put in a good offer on a short sale and it is tens of thousands of dollars below what the bank will even consider.
If you have an experienced short sale Realtor they can make sure this doesn't happen to you.
BANK OWNED, REO, LENDER OWNED OR FORECLOSED PROPERTIES
In an REO, Lender or Bank-Owned property you are buying the home directly from the Bank or Lender that owns it. I like bank owned transactions! Typically you hear back in 3-5 days. You will normally not get a sellers disclosure and have to sign an “As is” addendum and the seller will fill out a seller disclosure alternatives. They have never occupied the property. This is OK, but it puts the responsibility on you to make sure you get all of your inspections on the home. Often the bank will have the power and the water turned off, most of the time they will pay for it to be turned on for the inspection as you have to have it on to check the plumbing for leaks, see if the dishwasher works etc. Sometimes, (rarely) a bank will consider paying for some repairs but in most of the transactions I have done with banks they would not pay for any inspections or for any repairs. Again, if you are accepted, and you order inspections and then decide not to buy the home, you will still have to pay for those inspections.
When you hear from the bank they will accept your offer verbally. This is not normally done in real estate but it is the way with bank owned property. Your offer has definitely been accepted and all of your time lines have started. This is when you get your earnest money to them if they haven t already demanded it. Once again you need to be working with an experienced agent who can get your loan processing started even though you don't yet have a signed contract.
Next will come a special addendum written by the bank. This is a Bank-generated contract to protect them. It will supersede anything written in your contract. The most noticeable addition is a penalty charged to the buyer daily if they are late in getting their loan together to close the escrow on time. Also the buyer will be charged for any possible pending assessments. It is very “Pro-Bank” but again, I can help you avoid pitfalls.
Although this can sound intimidating remember it is done all the time successfully and I can make it seem effortless.
Since you are dealing with distressed circumstances it is possible to get a very good deal on either a short sale or a Bank-owned property. It is not guaranteed however. You need the assistance of an experienced agent who will keep you up-to-date with current market practices and home values. Remember, if it is a nice home, in a nice area for a very good price, EVERYONE wants it. People don't realize that even in this market we are seeing fierce competition for the great deals.
Auctioned Properties
These have largely been avoided by many agents; we have recently started to utilize this source as for our clients with excellent results. This is a very short description as they vary from company to company.
The positives
*Very simple process, register and bid in minutes
*Great deals, typically homes have lots of market time and are reduced
*Financing usually pretty easy
The Negatives
*Added fee s (buyers premiums, auctioneers fees)
*As is! It is hard to get earnest money back when transaction fails.
*Homes have lots of market time, may have a “Can of Worms” that buyer needs to find out. Buyer beware!
*Don t get caught up in a bidding war, settle down and let the bids come in. Be a patient sniper and get the bid at the end if you really want it.
We have been pleased with auctions so far if you have questions about a particular one or would like to try it out let me know I can register you and walk you through it. It s great for investors!
NEW CONSTRUCTION
LOTS ARE PRICED GREAT NOW!
BUILD EXACTLY WHAT YOU WANT WITH A WARRANTY!
Lots have come down to 2001 pricing, we are now at a point where new construction is an option that will compare with REO, Short Sale and Traditional home sales. You get to pick out everything you want from windows, siding colors, bedrooms, kitchen design, garage size, extra garage, decks, patio, landscaping, master baths, you name it it’s yours. Now is the best time to do it. The sub contractors have their pencils sharp and are gearing up for your new project right now. We have a builder Bud Dropps with Accent Homes that we are very impressed with and he provides a very skilled designer for you free with every home purchase. Accent homes with Jim Kuiken as the designer won numerous awards at the builders association last year. All this at prices that will keep your attention. Check out their website www.accenthomesinc.com. Ask me about a lot search, I know the area and can find you a very reasonably priced lot to help you make your dream home a reality!
TRADITIONAL SELLERS
WE LOVE EM!
This is a regular real estate transaction. They are typically living in the home, have to have notice to show, really do care about feedback, may ask if an agent doesn’t leave a card or a light is left on but for a buyer they have benefits. You have someone that will give you a disclosure, they typically care about the home and will maintain it until you move in. At closing you will receive keys from a human being that will tell you about your neighbors, the park next door, why the garage door sticks sometimes and other things you don t get with some of the other common sales types now. Many of the homes are priced competitively now because they have to be with current market conditions. Don’t shy away from these because we like these transactions for our buyers and recommend them also.
Hopefully you are more educated, that is our goal as agents. We want you to know the market and understand so you know what you are spending your money on.
I have been helping people with residential real estate since 1999 and absolutely love my job! My partner Danella Swanson joined forces with me in 2007 and she has added greatly to the business. Thank you for stopping by my website and give me a call with any real estate questions.
763-670-3678 Dave Wills
By the way, if you know anyone that is buying or selling please let them know about me. I will take great care of them just like I will you!
- Let's build a new house, the timing is right!
Lots are priced very well now and that makes all the difference.
- REO, DISTRESSED PROPERTY, FORECLOSURES, HUD, I am an expert at all of these. You are in good hands!
- Short Sales
- Full service listing at discounted pricing, I use variable rate to fit your needs.
- Ask for a buyer package worth up to $450!
- Lakeshore and recreational property
- CALL ME FOR ALL NORTH METRO INVESTMENT INQUIRIES, I HAVE MANY CONNECTIONS AND THE KNOW HOW TO HELP YOU MAKE A GOOD DECISION
