Monday, January 17, 2011
by Tom Stachler,ABR,CDPE - Group One Realty Team - Re
Buying distressed Ann Arbor Area real estate listings is not for the faint of heart or those wanting responses in 24 hours. Navigating through the minefield of a short sale or foreclosure takes time and dedication to find the right deals.
RealtyTrac recently reported that approximately 25 percent of all US transactions in 2010 involved distressed properties. Bank-owned (REO) and short-sale transactions will continue to be a major part of the real estate experience this year with short sales on the rise at the expense of foreclosures. Our present distressed property inventory is about 20% of the total inventory in the Ann Arbor Area. Check back or drop me a message for updates.
1. Is your agent trained to handle this business?
How many closed bank owned or short sales has the agent closed; ask for referrals. Do they have a CDPE (Certified Distressed Property Expert) designation? selling distressed properties needs skill and dedication. This means the difference between getting a house or not. This means saving thousands of dollars in negotiating or not.
2. Have an attorney review all bank addendums
Many lenders have incorporated language in their contracts that calls for a “blanket indemnification of the lender.” You forfeit your rights, so it is critical that an attorney review all bank documents and indemnification language.
3. Knowing How to Winterize, and De-Winterize and Access Utilities
If the utilities are on, make sure in the contract that they will remain on for inspections and the house is De-winterized for the whole house inspector. Likewise, with some REO's the buyer may have to pay DTE a turn on charge to get utitilies on.
4. Know How to Save Money and Protect Yourself
Make sure contract language states that all contingencies will start when upon receiving signed bank acceptance letter or documents.
Protect yourself by choosing experienced an experienced agent. I have the CDPE designation and years of experiences and references. Click here to Find the best foreclosures in Ann Arbor and the rest of Washtenaw, Wayne & Livingston Counties with using this Great Site.
Thinking about listing you Home using the Short Sale Process. Get started by clicking here
