Sandra Carlisle

The problem is with the word "Verbal". Everything regarding the sale of real estate must be in writing.

It sounds like you were getting a deal that was pretty good and the bank figures that they can get more out of the property and have chosen to exercise that right. Probably not much you can do since it wasn't accepted in writing and signed by the bank. - Thu Jul 24 2008, 11:08

If by "best" you mean, "most exposure", you should make sure your home is in the MLS so that it will end up on Realtor.com and all the other sites that pull their data from that source. The MLS is the most searched site, followed by everyone else.

The Web Reference below will show you some other ways to market your home. - Thu Jul 24 2008, 11:00

Hi Rgoldine,

You are going to have to put your best foot forward, first. The banks call it the "highest & best" offer. While sometimes the banks will counter all offers submitted, this is rare based on my experience with these properties over the past year.

1. Put your highest offer in. This is the price that anything above that would mean you are willing to walk away from the home.

2. A pre-approval letter isn't worth the paper it is written on when trying to purchase one of these properties and the banks know it. They write them all day long... You need to submit all of your information to your lender and have an approval letter stating that an underwriter has already reviewed your ability to qualify for the mortgage. This doesn't happen with pre-approval letters. (I have a sample letter I can get to you.)

3. You will need to have your "proof of funds" to submit with your offer. This is a copy of a bank statement (or wherever else the money is coming from) with any social security numbers and account #'s blacked out showing enough money to cover what you are stating in the finance section of the purchase agreement.

4. Purchasing an REO is about the same as purchasing a “regular” re-sale home. The commission paid to your buyer agent is already stipulated I the agreement between the listing agent and the bank. Expect to do some diligent inspections since you will be getting less disclosure than a regular sale.

5. We have been seeing some closing costs paid by the bank with these sales. Whether that will happen on any particular property that you are trying to purchase will depend on what the other offers look like.


In the areas which I have been working with Bank Owned properties, which is Newport Beach, Corona del Mar, Newport Coast , Laguna Beach, Irvine, Huntington Beach & Costa Mesa, the Bank Owned Properties have been selling from -5% of the asking price to over asking. These properties usually have 5-20+ offers on them, especially anything below a million dollars.

If you have any other questions about how to purchase an REO, or even a short sale, feel free to call me. We can go over it one on one or you can attend, for free, one of my foreclosure seminars.

We talk about the different types of foreclosures, how you need to submit the offers, what you can expect when you are in escrow, which types of foreclosures are the best deal and then we open it up for questions from those who are attending. (That's the fun part.) - Thu Jul 24 2008, 10:46

Update for Corona del Mar: 14.1 months of inventory based on an average of 14 sales per month over the past year and a current inventory level of 202 properties.

Feel free to contact me for more statistical information in Orange County. I can pull it up quickly. - Tue Jul 22 2008, 19:36

Update: The current absorption rate for Corona del Mar (92625) is 11.1 months - Sat Mar 29 2008, 14:50

The months of inventory is also called the "Absorbtion Rate". If you are looking in Corona del Mar, that rate is currently 8.1 months. I can get this number for you quickly in any area of Orange County, Long Beach and the Inland Empire as well. If you need a particular price range, I can get that for you too.

Sandra

P.S. I just wrote a post on my blog about this yesterday. I did all the Coastal OC cities. - Wed Jan 23 2008, 13:05

If you can't use the lock, you probably shouldn't be showing the property. Did you try the agent who put the key in it? - Tue Jul 15 2008, 11:13