From Purchase to Contract

With the rise in Foreclosure property selling agents need to know how to proceed and what to expect not only what they may find in the vacant home but what comes next after they write the offer. Are you a selling agent or a listing agent. Have you ever wondered how many Free listngs agents get from the banks? Reo agents don't knock on doors, or do a bunch of marketing to get listings. The banks simply send them an email with the homes in there area.
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How do some agents have 100's of listing and your out showing their listings. Click Here!
With all the short sales and foreclosures in the market wouldn't it be nice to sit back and have the offers on these properties faxed to you? Let the other agents run buyers all over town.
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You can get:
Short sale listings
REO listtings
The BPo Handbook
The BPO Bank list
EZ BPO Forms
5 steps to Fast Sucess
The 10's Do's & Don't's
Secrets of Craglist and how to Make Money
Professional forms and tons more included. Make money offering BPO's If you want on top of listing endless bank owned properties. Get registered now with all the bank Trustees, Banks REO Divisins, Bank Asset Management firms, Aquistin Companies, etc and start receiveing listings and making big money. BPO's and REO lisgtings are being handed out everywhere. Become the GO To agent for BPO's and REO's in your area and start getting 10,20 listings and more each month. The fact is Banks need REAL ESTATE AGENTS.
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If this is not for you then here are some things you should know about selling the REO Property.

1. Showing the REO / Lender owned property.

The MLS sheet should indicate that the property is lender owned. It may say sold AS IS, no state disclosures, or lender owned. The property should have a combination lock box on the door. It may or may not have utilities on. Water is not going to be on. You should take a flashlight. Depending on the area some things to look for would be missing copper. A lot of vacant properties are vandalized no matter how secure they are. Check the copper plumbing in the basement, to see if it is in tack. You will want to do a pretty good visual inspection before writing an offer so you and your buyer know what they are getting with the property. Also take caution if showing in a higher crime area that there could be squatters, or others hanging out in the property.

2. Can the buyer have inspections?

The buyer can have the typical whole house inspection. The inspection is used more for his knowledge of what repairs and condition the house is in. If there are major defects in the property the buyer can be released from the contract. Or if the property does not meet the buyer's expectations from the inspection they can be released.

3. What does AS IS condition mean to the buyer.

The properties are sold in AS IS condition most of the time. Once the inspection has been completed the buyer accepts the property in its current condition with out repairs.

4. Having utilities turned on, and who should be the responsible party?

This should be the listing agent's responsibility. I do see on some MLS sheets lately the comment that it will be the buyer's sole responsibility to have utilities turned on in their name. When the listing comes in it typical instructs the listing agent to have utilities turned on in their name. Most of the properties will not have full utilities up and running. Water and heat are usually not on. In the winter months the properties are winterized. Some companies require the buyer to be responsible for de-winterization costs. This can be done by a contractor or a plumber. The cost for this service is around $100.00 Once the inspection is complete the seller will have it re winterized.

5. Seller concessions

Closing cost can be paid by the seller the same as a typical transaction. Sometimes the seller will make price concessions due to the whole house inspection. They most likely will pay for a termite treatment at closing. Or they may reduce the purchase price in a monetary amount for repairs from the inspection.

6. What to expect once the offer is written. And how much time will be needed for a response?

Some agents think it will take days for a response. Once the listing agent receives the faxed offer it is submitted on line to the seller's site. Response should be received within 24 hours, and most of the time it is the same day. Other than weekends, their work week is Monday through Friday. If you don't get a timely response from the listing agent make a call.

7. Offer worksheet.

Once the seller responds to the offer it will generate a work sheet that the selling agent will work from. It has the basic terms of the contract and is used until the terms have been accepted by both parties. This will typicaly come to the selling agents email from the listing agent. The listing agent will always be the one to input the counter offer from the selling agent. As a selling agent it is important to check email for the notification. . A lot of time these properties get into multiple offer situations. Most of the time the seller will ask for the highest and best offer from all parties, at which time the seller may counter more than one offer and does reserve the right to choose which offer they want to take. Be aware that if your offer is countered by the seller and your buyer accepts the counter does not mean you have a deal. The seller can still choose a different offer. The property is not sale pending until all paperwork has been signed.

8. Seller addendum.

Now that we have come to terms with the worksheet the seller(asset manager) will generate a pre printed seller's addendum. The addendum can not be altered in any way. If the selling agent or the buyer does not like some of verbiage it can not be scratched out or it will become null and void.
Most asset management companies require the selling agent's company contract and the seller's addendum to execute the sale. It is important to send all of this at once because nothing will be signed until it is received.

9. Per dieum.

All companies have a per dieum amount. This amount will vary with each company. The typical amount is $100.00 this is a daily charge to the buyer if the closing is delayed by the buyer. It could be the buyer's lender that causes the delay. Or it could be the buyer not providing information in a timely manner. If it is a seller delay the charge is waived. Seller (asset managment company)could have title issues, or the deed may not be recorded yet. Or the foreclosure was not done correctly by the attorney. If this is the case it could cause a six week or longer delay.
If the closing needs to be extended the buyers agent should simply write an extension for closing and ask for the daily per dieum to be waived. If it is presented in a timely manner and there is a good justification for the delay the seller more than likely will agree. They do not want to loose deals.

10. Title company, closing, and title insurance.

The seller has their own title company and encourages the buyer to use them. The buyer does have advantages by doing so. The sellers title company is already paying for the title search. They also pay for the buyers title policy. If the buyer chooses to use his own title company they will not get the title policy. The two companies at that point work together on getting the property closed. Some times the closing does not disperse at the table. The seller will want to make double sure all expenses have been paid on the property before releasing commission, and signing the HUD. So as the saying goes the check is in the mail!

By the time it took to sell one house you could have sold several REO listings. With offers coming in over your fax and by email. It is well worth it.
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