Real Estate Q + A

Bank-Owned Homes

Question: What is a bank-owned home? How do you buy one and what are the advantages and disadvantages?

 

 

Answer:
 A bank owns a home after the property gets to the foreclosure stage.  To buy a foreclosed home, you should contact a Realtor in your area after meeting with a lender to determine loan programs that might work with a bank-owned home.  There are MANY foreclosed homes available today.  The process of buying is quite similar to buying any home.  You get pre-approved with a lender (if you don't have cash), search for the right home, make an offer, and wait to hear from the bank. 

The advantage of buying a foreclosed home could be the "deal" you get buying a home at a lower than normal price.  That is the advantage.  Disadvantages are many.  First, it is more tedious working with a bank as a seller than with an owner.  The process is lengthy as the bank has it's own addendums that can change time frames.  They many times will be looking for a higer offer, too.  Patience and perserverence are key to buying foreclosed properties.  Also, you have to do your homework to determine what it will cost to fix up a home that may have significant deferrred maintaintenance issues.  Sellers who are losing their home to a bank often reak havoc on the home, yanking out anything from cabinets, to plumbing.  It can be a nightmare. There are renovation or construction loans available.

What Makes a School District Good?

Question: What makes a good school district? How can a buyer assess the area's school districts? Do good schools and school districts change over time?

 

Answer:
 A good school district is different things to different people.  It could be a school district that celebrates diversity, a school district that has an honors or gifted program, a school district with emphasis on fine arts, a district that sends the majority of its students off to college, etc.  Again, it is up to the buyer to conduct their own research to determine the best district for their child.  I recommend that people new to the area, visit the schools' websites, interview school staff and parents, and talk to some students.  My own personal opinion is that a student with a stable home life and supportive parents/guardians, should thrive in most schools.  School districts do change over time mostly because of funding.  In today's economy many school districts are struggling to get levies passed by their constituents.

 

 

 

School District Obsession

Question: It seems like people are obsessed with school districts. I don't have kids, so I don't really care if I buy a house in a good school district. Should I care, for resale value?

 

 

Answer:

 

Clients with children are looking for a certain school district for a variety of reasons.  It is up to them to do their own "due diligence" in determining what programs are important or sometimes crucial for their child.  Different districts within a county offer different programs.  Many times, clients with kids want to keep their student with their friends in the same school.  That narrows their search.

Clients without children have other specific wants and needs for a house that doesn't include the school district.  Thurston County has very good schools across the county. In your case, I would recommend that you assess how long it will be before you do have children, how long you plan to be in the house and do some research on the status of schools in the area you plan to buy.

On and Off the Market

Question: I’ve heard of people talking their houses on and off the market. Why do they do that? Can a house listing expire? Is it a bad sign if a house has been on and off the market? How would you know if a house is in this category?

Answer:People have many reasons for canceling a listing.  It could be because of personal issues like health.  They may just be tired of having the sign up with the chance of someone calling to want to see the house when it isn't in tip-top condition.  You are always "on show" when the house is listed.  There is a portion of the listing your agent has access to that tells you the "property history".  It tells us when it has been on and off the market.  They house listing can expire.  I extend many listing with a "status change" form.  When a listing does expire, the client should be warned of other agents calling them to ask for the listing.  They can be quite persistent.

A Long Time on the Market

Question: My neighbor has a house that she said she’s been trying to sell for three years. Is it a bad sign when you see a house that’s been on the market that long?

 

Answer: It certainly is a concern for the reasons the house has been on the market so long. The house is generally way overpriced and the buyer will take this into consideration when making an offer. Many times the buyer will ask me "how long has this home been listed" right away. They want to make a low offer; not good for seller.

The Keys to the House

Question: After you’ve bought a house, when do you actually get the keys?

 

 

Answer: You get your keys when the deed is recorded with the county. It states in Washington contracts that the buyer has possession of the home at 9 p.m. on the day it records.

After the price is settled

QUESTION: Once you’ve decided you like a house and have settled on the price, how do you buy the house?

 

ANSWER: After your offer is accepted, you are advised to have the home inspected. This can trigger another negotiation if the house needs some repair. After that process concludes the buyer works with his lender to get all the paperwork needed to "close the loan". The lender orders an appraisal (buyer pays for the appraisal) and when that is returned the lender will send it to "underwriting" and documents will be ordered and sent to the escrow agent.

Bartering for a House

QUESTION:  With all the offers, counteroffers, and counter-counteroffers, it seems like buying a house is more like bartering for a handicraft at a Latin America market. How does it all work?

 ANSWER:  A "popular" type of property can cause a bidding war to occur. Two agents write offers on the same home at the same time. The seller sees all the offers and determines with the agent's expertise which is best for their purposes. The seller should consider the strength of the offer based on financing, the lender, closing date, earnest money and how much the offer actually is. In a buyers' market the bidding wars don't happen like they did a few years back when buyers had to make a decision very quickly to get into a home. 

Determining the Price of a Home

QUESTION: What factors go into the pricing of a home? Why do homeowners price their homes more than they would be willing to accept?

 

ANSWER:  For me, pricing a home begins with a preview of the home. I take pictures & make observations about the home's condition, updates or lack of them, deferred maintenance, floorcoverings, counters etc. With this information I go back to my computer and pull up "comps". I enter in the property details of the home from the tax record first. The comparables include active listings, pending listings, and solds that are similar to the property being priced. Size of the home, year built, & size of the lot are important factors.
The ultimate price is set by the seller after they review with me the research. At times they have an idea of what they want to net from the home and price it accordingly. In this buyers' market this is not a good strategy.

The Magic E-Key

QUESTION

What's the deal with that magic palm pilot you carry around?

 

 

ANSWER

I love technology!  I had a Palm Pilot for a couple of years before investing in my Palm Treo 750 phone.  The Treo is compatible with Supra E-Key software.  It took me a few weeks to adapt to the new phone, but now I love it.  So what is E-key software

?  This program downloads updates from Northwest Multiple listings when it syncs with my computer.  My phone is a computer that allows me to have up to the minute listing information when I am out showing houses.  It also has the capability to open up Supra key boxes on homes throughout the Northwest MLS region.  It has to be updated every day, but does so automatically at night while I sleep!  I put in a number on my phone's key pad, press okay, point the infared at the box and it magically produces a key!  Is there ever a problem?  Not so much with the new phone, but yes, occasionally something doesn't work.  Another very important feature for homeowners is:  the keybox records the user of the box and their agent knows who has shown the house.  That is important for communication and security reasons.  It is fun to let kids try the magic phone as they become my junior agent assistant!