Many buyers find themselves in the situation of looking at distress properties – short sales, foreclosures, and bank-owned properties. It may be because you specifically want to purchase this type of property, or that may be all that is available in your price range.

Some things you need to know as a prospective buyer if you get through the offer process and the short sale, foreclosure or REO is approved by the bank:

BUYING THE HOME AS IS:

Generally these are homes you must purchase “as is.” Be aware that you will be the one taking the responsibility for making repairs, not the lender. So find out what defects there are upfront by having a thorough inspection. In some case some repairs may be negotiated but don’t expect it. If the costs are high for these, factor this into your thinking about whether this is the right property for you or not.

Depending on the issues, you may want to have one or more tradespeople in to evaluate the defects (say plumbing and electrical) so you have an idea of how much the repairs might be. This additional information MAY be helpful if you are attempting to negotiate repairs (a good idea even in the case of a typical sale where you are dealing directly with the homeowner).

TERMITE ISSUES:

Here in California it is common for properties to have termite issues (this may not apply to those of you in other parts of the country).

In the typical sale the seller will complete a termite inspection and take care of infestation and termite damage as part of the negotiations (There are exceptions). A termite clearance MUST be provided before your lender will allow closing to occur. In the case of these distress sales you will often find that the seller, because of financial hardship, will not be responsible for termite repairs, but may pay to have the inspection done (they are pretty inexpensive). In the case of REOs, however, banks often will not do the inspection either. The Catch 22 is that your lender might require a termite inspection as well as a termite clearance.

If the bank is not willing to pay for this then you will need to do so. It is a good idea to have your own termite inspection if the seller will not so you are aware of any issues and can take care of them accordingly.

Be aware that with short sales and REOs, you may have to take care of the termite problems yourself in order to obtain the clearance and meet your lender’s requirements.

It is smart to work with an agent who has some experience with short sales and similar transactions so you get the guidance you need to make the right decisions.

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If I can provide more information about Carlsbad and surrounding areas, or the housing market in general, or otherwise assist you in your homes search, please contact me by

phone or text at (760) 840-1360 or email me at JDowler@remax.net.

All content copyright © 2008 Jeff Dowler

As a seller with a property to sell as part of your relocation, you have a huge task ahead of you. Selling your current home in order to buy a new one is a big piece of this.

If you are like many folks, you NEED to sell in order to buy another home. And in many markets this is a challenging undertaking given inventory levels, competition, pricing shifts and more. So how does one accomplish this successfully.

Working with a REALTOR who has the CRS designation (is a Certified Residential Specialist) is one of the best decisions you can make. Here are some reasons a CRS will benefit YOU, the homeowner.

An agent with the CRS designation must complete a number of intensive 2-day classes on a variety of real estate topics to benefit consumers (a favorite class is the one on listing strategies - all the things that we can do to help you market and sell you home effectively; another is technology - kearning all about the many ways technology shuld be used to effectively makret a home, commununicate, and run a successful real estate business).

There is significant time commitment on the part of an individual who decides to gain this designation, and the training classes are some of the best available in the real estate world.

We must pass an exam for each class we take, so you can't just sit there pretending to learn but must demonstrate this before being awarded credit for the class toward the overall CRS designation.

Classes involve significant interaction among attendees so there is a huge opportunity to further learning from others in the business

All candidates for the CRS designation must meet certain production requirements, either a minimum specific number of transactions (the minimum is 25 transactions, or $8 million in production with a minimum of 10 transactions within a 2 year period). This means you MUST have substantial experience as a real estate agent in order to become a CRS. Another great benefit since you will be able to work with someone who has demonstrate significant real estate experience.

Having a CRS is likened to having a Ph.D., and it's considered to be THE most rigorous designation (only about 4% of all REALTORS posses this certification). And many CRS  agents continue to attend classes or to repeat classes as they are revised,  and to participate in the CRS organization either nationally or at the local level (as I do on the Board of Directors for the Southern California Chapter of CRS).

Don't you want someone who has the best knowledge and training, and can provide the competitive edge YOU need to sell your home?

One last thng to consider. You will need someone in your new location to help you BUY a home. A CRS can make the right connections to other CRS agents around the country and find you the best person with THE SAME training and experience.

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If I can provide more information about Carlsbad and surrounding areas, or the housing market in general, or otherwise assist you in your homes search, please contact me by

phone or text at (760) 840-1360 or email me at JDowler@remax.net.

All content copyright © 2008 Jeff Dowler

Buyers in our area, and others, are now confronting a new issue in their real estate transacation - the APPRAISAL.

Having a home appraisal is NOT new, of course, and most buyers (and sellers) typically anxst over the appraisal until it is completed, since the bank will not issue a loan commitment until the underwriter has the complete file and reviews the appraisal.

Today's market, wtih declining prices in many areas, and the increasing number of short sales, foreclosures, and REOs (bank owned properties) is creating problems in many communities with appraisals which are, increasingly, coming in below the agreed-upon purchase price. Banks are tightening standards (only 3 months allowed for comparables, not 6) and appraisers themselves are being more closely scrutinized.

You may be relocating to a market very different from your current one and may find this to be more of an issue, or possibly less.

Is this a concern?

In many markets it should be. And as a prudent buyer there are things you should know, and do.

Read There's a New Source of Anxiety here.

This is just one more GOOD reason to make sure you are working with an agent in your relocation who really knows the local market and can help avoid some of these issues.

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If I can provide more information about Carlsbad and surrounding areas, or the housing market in general, or otherwise assist you in your homes search, please contact me by

phone or text at (760) 840-1360 or email me at JDowler@remax.net.

All content copyright © 2007 Jeff Dowler