Ellicott City Realtor Catonsville Realtor

Due to this unbelievable snowstorm we are still recovering from, the market statistics are unavailable.  I will post them either later this week, or next week as they are released.

I hope that you are all safely dug out, or if you are not, that you have what you need.  If you have an urgent situation and need to get out, you can call Howard County at 410-313-2900.  If you have an emergency, dial 911.

Great Buy in Catonsville – Short Sale Townhome - Bank Approved at this Price
$88,000
No waiting for an answer, ready to settle now.

• 3 Bedrooms
  
• 3 Bathrooms
  
• Property needs full renovation
  
• As is – Seller to make no repairs
  
• Cash Offers Only
  
• Front Porch
  
• Fenced Rear Yard
  
• Separate Dining Room
  
• Hardwood Floors
  
• Finished Lower Level

Click here to request more information

Q:  How can I invest when I don't have any money?

A:  It's never about the money - it's always about the deal.  (If you've been reading this series, you already know this).

If you don't have money, spend time instead.  Educate yourself about value, and on how to find a deal.  It's never been the case that I've found a really good deal and couldn't get the money.  I've always been able to find partners with money when I didn't have any.

My motto is:  50% of something is always better than 100% of nothing.

I myself am buying a home right now.  I am buying a house that is a Short Sale, and I'm buying to try to stop a foreclosure.  A Short Sale happens when the owner of a home can no longer afford to keep the home, and cannot sell the home for what it is worth.  Theoretically, the Lender/Bank will accept less than the total amount due if the Owner qualifies.

Part of this process in getting a Short Sale approved by the Bank entails the Owner showing that they can no longer afford to keep the house.  The Bank gathers financial information on the Owner - income, credit, retirement accounts, checking accounts, savings accounts....wherever the Owner may have money.

Then the Bank orders a BPO - a Broker Price Opinion.  This tells the Bank what the property is currently worth.  These are typically done by experienced, local Realtors.

The offer that I made on this property was $125,000.  The BPO came in at $120,000.  You would think that the Bank would be happy to accept this offer, right?  Wrong...

The next step in the process is that the Bank sends out an appraiser to do an official appraisal.  The Bank does not disclose what the appraised amount is, but they come back saying they want $185,000 for the property, or $65,000 more than the BPO.

When I ask about the comparable sales used for the appraisal, the Bank gave me sales for houses with addresses on the same street, but 20 miles away.  I had to convince the Bank that the appraiser did the appraisal on the wrong property and mind you, he did not go inside.

Remember....I was purchasing this property to stop a foreclosure.  The Bank ordered a new appraisal for the correct property and came back with the same counter offer of $185,000, which is outrageous.  The house likely needs $50,000 of work.

I just found out today that the home is going up for auction tomorrow.  We put this deal under contract last July.  Since then, a lot of time has passed, and I think the Bank just wants this deal off their desk. The Bank is not returning any phone calls.  And tomorrow, at 2:30 pm, the Seller is probably going to lose his house, not to the highest bidder either.  He's going to lose it right back to the Bank, because based on the deposit amount that the Bank wants for the auction, their bottom line is $185,000 and they are sticking to it.

So after all of this, the Bank is going to then have to take the property back, only because, in my opinion, they don't have the time to do what is right.  What would be right is for the Bank to get a proper appraisal done by an appraiser who actually goes inside the house.

Now, the Bank must evict the Tenant, clean up the home, and hire contractors and a Realtor to get it sold.  Additional costs = additional losses.

What could have been done differently?

A series of weekly tips for sellers that are simple, quick and designed to bring you top value.

The basement needn't be spotless, but change light bulbs and clear cobwebs before showing the house.

If you'd like more information about preparing your home for sale, feel free to contact me.

Click on Full Screen to view this report.
If you have any questions about this report, feel free to give me a call, or click here to request more information.

Maryland Real Estate Market Activity, February 1, 2010, New Listings, Pending Sales, Days on Market

Custom Built End Unit Townhome in Federal Hill
479,900

• 3 Bedrooms
  
• 3 ½ Bathrooms
  
• Large Gourmet Kitchen
  
• 2 Car Garage
  
• 3rd Floor Entertainment Area
  
• Rooftop Deck
  

Click here to request more information

Q:  Tim, don't the Realtors keep all the good investment deals for themselves?

A:  As Realtors, we go through more to purchase a home than any other investor would.  If  we're working with a Seller client, we have to treat them honestly and ethically.  If we're working with a Seller we don't know, we have to disclose in writing that we (the Buyer) are licensed Realtors.  In a case where we are purchasing a property from a Homeowner, we have to go over the comps and discuss how much other homes in the area are selling for, unless we want to get sued later.  We also go over closing costs, and any other information that is beneficial for the Seller client, because we must give them the same treatment we would give any other Seller, and because our license is always on the line.

This isn't law, just the way I choose to do it.

If you were an investor trying to purchase an investment, would you first take the time to explain to the Seller what he could get for his commodity if he put it on the open market?

So......with our practices in mind, do you think we necessarily get the best deals?

If you'd like more information about Real Estate Investing, I have a free twelve week seminar, beginning February 18.  For more information, click here.

I called my client this morning to confirm our appointment tonight.  My young client and his wife are bringing his parents to see the home they have chosen to write an offer on, and we are finalizing the paperwork tonight.  We've looked at a lot of homes together, and he and his wife have carefully evaluated where they want to live.  Last week, we found a home that, although it needs some work, truly suits all of their needs, and it's priced accordingly.

My client surprised me with the news that things have been really stressful for him over the past few days.  He told me that although he and his wife are very pleased with their decision, his parents are pressuring him to keep looking.  My client told his parents that this is a decision he and his wife want to make together, and has asked his parents to let them do things their way, and for their own reasons.

My client expressed concern over the showing tonight.  He's pretty sure his parents will find something wrong with this house, because it's not the house they would choose.  And when his parents second guess his decisions, he second guesses himself as well.  Maybe he hasn't looked around enough, maybe there's a better deal out there, this place sure does need a lot of work....

As it relates to Real Estate, I think a lot of his concerns are "normal" first time Buyer jitters.  I discussed with my client that our offer is a fair price, and that we've looked at a lot of homes - and I reminded him that this was the house that he and his wife really loved, in the location best suited for them.  He agreed.

As for his parents, my guess is that this started with a financial contribution.  That can be a big hook for young couples buying their first house.  Most parents are going to want to be involved in their young adult's decision to purchase a house - some more than others, and a financial contribution from the parents really seems to compound the situation.

If you are a first time buyer, and you think your parents may want to get involved, and if you are concerned that their involvement be to the extent that you are precluded from doing what is best for you in order to satisfy your parents, you should try to address this early.  Sit down with both of your parents and have a very frank, pointed discussion regarding their involvement, and their feedback / concerns / opinion.  Make sure that you are clear about the boundaries that you are comfortable with.

I'm not Dr. Phil, although if I grew a mustache I might look like him, but this seems to make sense to me.

A series of weekly tips for sellers that are simple, quick and designed to bring you top value.

Don't wait until the last minute to call professional painters because their schedules may be filled.  Hire them as soon as you make the decision to sell.

If you'd like more information about preparing your home for sale, feel free to contact me.