After such a great response from everyone for the list of tips on what to watch out for in Bank Owned properties I wanted to do a follow up. For one, it definitely is a given to look over those counter offers and addendums! There were so many comments for Acquiring The Golden Egg that said that bank owned properties leave the buyer without any rights. HUH?
That is not all true. For one, why would we show our clients any of these properties if we believed that to be true? I was amazed with the fact that many commented saying that they closed many of these deals and believed that the banks left the buyers open for heartache later on. If I believed that to be true then I most definitely would not even show them any of these homes.
So, there has to be clear guidelines for our buyers who are 'getting into a bank owned property' right? This was my first transaction with a bank owned property and it turned out great from the get go and wanted to share with you all what transpired.
- My clients are military transferring to Honolulu County and they wanted to buy their first home for their family. (tired of living out of suitcases)
- They asked about putting in an offer (bank owned) on a home that looked suitable for their family (great price, excellent condition) and I told them I usually advise clients to look at it first.
- We submitted the offer and the next morning I went to the property to take pictures and show them the home from my view.
- I called them from inside the home and I couldn't believe it...it was wonderful!
- Though the bank had their 17 page counter the other agent put in a counter offer and addendums as well to protect us from certain things like the seller paying their assessments, liens and so forth.
- We went through the counter offer and all addendums by phone for an hour and in the end it was accepted by both parties.
- They insisted they would fly out immediately for the home inspection if they got an acceptance.
And they did:
Since this was a Hawaii VA home loan and they needed certain things the bank would not provide I paid for the Association Documents and bought them a home warranty when it closed. Granted, not all bank owned properties will be in great condition and not have much going on but I sure know what to look out for on any others. My clients and I were all definitely on the same wave length so that made a big difference as well.
This was just one of those "freak" transactions that was just .....meant to be.
© 2008 Celeste "Sally" Cheeseman, All rights reserved
Celeste "Sally" Cheeseman is a Realtor-Associate® and Certified Residential Specialist (CRS) with Century 21 Liberty Homes in Mililani, Hawaii. With a sharp understanding that a listening ear is the key to a client's needs she serves the island of Oahu (Honolulu County) and all Hawaii Military Relocations, Hawaii Retirees, Hawaii Job Transfers and Hawaii Residents, Home Buyers and Sellers.
© 2007-2012 Celeste "Sally" Cheeseman's Hawaii Real Estate and Relocation Blog.
All rights reserved.
This is great, Sally! Is this the same couple you posted photos of meeting them at the airport a few weeks ago?
Shirley: Sure is! This turned out so well for them and their family and in the end...that will always be the most important enlightening experience of the transaction....when they walk in and say...this is the home for me!
Sally, well if Obama is elected your bank owned foreclosures will dry up for at least 3 months so enjoy while you can.
Sally, what a great story. Shows you should never lump all bank owned property into that headache or worn out pile.
Hi Sally great job. Even though it took a bit extra it was worth it to see the smiles on the buyer's faces. This one was meant to be. Yeah!
Larry: We don't have that many to begin with...and political preference has nothing to do with my clients being happy and this whole story.
Gary: Exactly! I sure enjoyed this one. My clients took a chance and put in an offer....and guess what...there hasn't been a 5/3 at this price ...and in wonderful condition before or since.
Great video sally I really like it. I need to incorporate this more into my blogs and website. I love bank owned properties they arent for everyone but it helps buyers afford something they wouldnt normally be able to get. They take a little more work but worht it.
Paddy: I just got off the phone with them....I truly believe...they are happy and will enjoy!
Sally-I've sold a number of foreclosures with VA Loans with no problems here in Northern Virginia. I'm glad you had a good transaction and have survived. I recently posted on some of the "mythconceptions" on REO properties. It is unbeliveable the amount of bad information is circulating about the process.
This is only your first bank owned transaction. Welcome Rookie!!!
Sally, I just accepted my first foreclosure listing ever! I'm excited because the first person I mentioned it to is considering buying it! Yeeha! I think I'm going to like it too! Congrats,
Later in the rain~Deb
Hi Sally,
Congratulations on your first bank owned! Happy clients thats the goal, good job! :)
Good for you, Sally! I haven't done any bank owned properties or short sales yet, but from reading about them here on Active Rain, I feel ready.
Your'e luckky...they aren't that pleasant to deal with here...congrats
Sally -
There is no such thing as a "freak transaction". You knew the market, found and negotiated a great home, paid attention to all the extra addenda, got yourself educated on the process, and paid attention during the whole transaction. Give yourself credit!!! Nice job.
List and Sell (and Neal is right, they aren't all that pleasant) Gary @ RentonHomeFinder
Heather: I do believe it will take the effort of the agent/buyer to make it work!
Cindy: Exactly! Granted there may be some bad ones out there....no different than a non bank owned with shady characters involved. It's up to us to recognize what we need/need not do for the best interests of our clients. If the property is in that bad a shape...VA appraisers definitely take the lead and state every little defect :)
WooHoo, I love selling REOs from both sides of the transaction. Dealing with an institutional seller makes negotiating so much easier. They have no emotions in the game to get in m the way.
Good job Sally!!!
Suzanne: WooHoo to happy clients!
Patricia: I'm okay with the bank owned...the short sale laws may change soon... as of now...it serves no purpose to my relocating military...they need a place....asap.
Neal: Well, as much as I've heard the "stories"...I believe it's up to us to make sure everything runs smoother...or smoothly :)
Gary: I was being fecicious. The "freak" meaning...there may be some bad ones out there...but mine was meant to be....because WE made it happen. Thanks!
Thanks BB! I really loved that everything went pretty smooth....and they REALLY got a beautiful home for a beautiful price.
Sally Congratulations! You are a hard working agent who really cares about the client. As far as the extra pages of addendum's...It might get worse, in the early 90's RTC contracts and addendum's along with Texas real estate forms made the contracts have as many as 70 pages OR MORE! No problem, it just takes a little more time and I am sure your clients are thrilled!
Sis - Does that couple love you or what? Excellent work! There's only one name I think of when it comes to beautiful Hawaii... well two, Randy is pretty smart as well:-)
Sally, Your clients are thrilled--their home is lovely and I wish them luck and happiness. Congratulations to you, I loved the videos and you did one terrific job for this lovely couple!
Sally Congratulations on your first foreclosure, now it is time for you to experience your firs "Short Sale" :) :)
Russell: They are very pleased with the choice they made...asking to put in an offer ahead of their coming....and everything that transpired thereafter. Hey, when it's meant to be...and there are great parties involved...then there is no place to go but a closed transaction and happy clients
Lil Bro: Did you watch the vid? They are such cool people....and hey...I love when there's laughs and fun involved :)
Carole: And they did wonders for my ego too lol! Seriously, they're great people....and will do a follow up soon!
Congratulations Sally! You're right. Why would we show our clients a property that's going to be that much trouble? That's why I haven't been showing any. But I don't have any choice anymore. There are just too many on the market... plus I'm about to have 4 short-sale listings myself. The banks here have been incredibly difficult! But sometimes I wonder if it's not an incompetent listing agent that causes some of the problems.
Sally- Congrats Sally on another successful transaction. You are the only agent that I have ever read about that would not put your buyers at peril over bank addendums. Most agents think these are not negotiable.
Lisa: That's what I mean...those that believe it's too much trouble ....I am wondering why you would consider showing your clients when you believe that. Is it all banks that are difficult? Is it all properties that are not great.
HI Sally,
Great story and great job on your part. You are such a caring agent and person. You played a huge part in making this deal come together.
Thanks for sharing the tips and details.
I remember these guys from your other post....I'm glad everything worked out so nicely. Have a great day!
Sally, YEA..........I don't have a problem with REO homes closing, yea it is more difficult, paper work the waiting but they will close. My issue is with the short sales, that is a different story.
Hi Sally,
I'm happy it worked out and yeah, sometimes it is just meant to be--destiny!
Celeste,
Doesn't it seem at times that the transactions we break our backs on, end up fizzling out and the ones where every step just seems to fall into place, close without a hitch? Congratulations! I'm sure this couple was very happy that they chose you to help them with purchasing their new home!
Hal: Thanks Hal...it really helps when all parties involved help out as well. The brunt of everything was on the LO and me....this one we had to push people....to close on time.
Karen: Thanks! I agree...bank owned properties are not all trash....this one is beautiful!
Ann: Yup! And they closed!~
Missy: I haven't touched one...and doubt I will...our laws may change here soon.
Katerina: That's what I'm seeing. I'm glad ours went smoothly.
William: Totally true! This was one they could not pass up....I agreed....it's 5/3...nothing like that before...or after.
Cynthia: This one was truly meant to be....perfect for this family!
B/B: I think so too. Many on the market are in great shape....still have to look for the quirks...the hidden words but all in all it can be a great deal for our buyers.
Randy: In the end...it worked?
Michelle: I do believe I adopted a family!
Just wanted to inform everyone in the Whole World that Sally is the most knowledgeable, sweet, soft talking, professional, and hard working Realtor I've ever come across. She knew the answer to every question my husband and I asked. We are very pleased with our new home and cant wait to move in (in a few weeks). Sally always told us to keep our cool when the bank was asking for outrageous things that not even our broker was familiar with. But, we got through that with bright flying colors. In the end we are very blessed to have found Sally and have her work as hard as she did for us. Our family is always and will forever be open to her and her family we are family now. We owe her everything for all she has done. Now our transition from Cali to Hawaii will be very smooth without any worries. Thanks a million Sally and to everyone who is reading this Im not taking any other Realtor's thunder but Sally is the BEST and I would recommend her to everyone I know. We can never thank you enough.
Dewan and Keanya Britton-
You did a great job, Sally. Nothing freaky about it. Proves your at the head of the class and your skills are vital when servicing the types of needs your clients are facing. Great post. Hope your having a beautiful week.
Wow!!!! Thanks so much for the wonderful comment .... Now...you all know I paid them to say all this right? lol! You folks contributed tremendously to this whole transaction...without your prompt responses and getting everything back to me in an oh so timely manner it would not have gone as smoothly as it did. Thanks and see you folks very soon!
David: Thanks so much David...if it weren't for your comment alerting me I would have missed my clients comment! I am having a beautiful life :) :)
Thank you, Sally. It's a great privilege to know you.
Sally, I am not surprised that you got this through. You are a PRO! Isn't it a great feeling to know you got a deal for someone and put them in a home they probably never thought they could afford? That's why I'm not so upset about the bubble bursting even though my home is worth less, because homes are more affordable once again. Congratulations!!!
Beautiful transaction Sally! Congratulations!
Congratz Sally - You are on your way - What a great nitch
Thanks David!
Sharon: They're thrilled and on top of everything else I adopted a whole family!
Thanks Dottie!
Thavisak: Thanks too!
Gwenn: Great niche indeed!