All Forum Posts by: Kim Knox

Total Agree @Brandon Moffitt

It is rare that a full service listing Agent does not post a plethora of photos, details, and virtual tour in my area.   

Hi @Samantha Klein

I think it is important to find an Broker that better understands your requirements, you should feel like the advice and help you are getting are of value.  A Broker not only needs to be smart and market savvy, they need to be available when you need them.   If you find someone you can rely on, I would suggest committing to them.  Lots of good Brokers to select from.   

Someone mentioned working with several agents is a good idea. As a Broker myself, if a Buyer tells me that they are working with other agents, I am not going to invest my time and money into locating a purchase for them. If a Buyer is just working with me, I will pitch what they are looking for at the MLS and Broker meetings, I will find FSBO sales, I will advertise to Sellers, I will send out mailings, I will call strangers. If they are working with other agents, I will just keep them in mind if something should come up.

I do think it is smart to have a Buyer's Agent.  Someone mentioned working with the Listing Agent and asking to pay half the commission, so I thought I would address that too, just to add a Brokers  perspective.  If a Buyer asks me to work for half the commission because they utilize my services, I always find that strange. Ask yourself this, would you work twice as hard and take on twice the liability, for half the pay?  I doubt it.  My Seller isn't making any more money, because you are deducting your savings from the offer amount too.               

About your specific scenario, it is hard to judge your Broker for his inability to get a quick response.  The only answer you could really get is if the Listing Broker is certain the Seller is firm on price, and often, we are not really sure, and should not guess.  I would definitely not present a verbal offer to my Seller from a Broker who didn't even take the time to show my listing.  A typical response to a verbal offer from a Listing  Broker should be, "put it in writing, and I am happy to present." I would even encourage your Broker to write an offer conditioned upon your viewing the home, that is no problem. Just formalize it.  An offer is also accompanied with a verification of funds, to show that you are an actual cash Buyer. You would be surprised how many unqualified Buyers call to make verbal offers, and I am not involving my Seller in that emotional roller coaster.         

Often a short selling bank will include a recorded deed restriction with these terms.  Short selling banks do this because they don't want to encourage discount purchasers and fraudulent short sale activity.

Please review the exact deed restriction, or verbiage used for the deed restriction.  You might be restricted to not enter into contract until the date the deed restriction is lifted, so I would be pretty careful to make sure.  

To sell to an FHA borrower, you need to have acquired the property for 90 days anyway, so this deed restriction doesn't hurt you that much. You cannot even execute a contract with an FHA purchaser until 90 days has passed within your ownership. There are exceptions to this rule, but just mentioning in case you don't know FHA has limitations like this.

I mention this because even if you can put the home on the market after 60 days in hopes to close shortly after your 90 day period, be careful about entering into contracts with FHA borrowers prior to 90 days. Make sure it is allowed in your circumstance.

FYI, I wanted to be sure to mention. Many government owned REO's offer a first look program because they actually prefer owner occupants over cash investors. Neighborhood revitalization.

A cash offer can offer a quicker close, but REO's generally offer 30 days to close even on cash. Same holds true on short sales. The only time cash really helps you, is when a home is not financeable because of condition.

I have facilitated a lot of short sales, and reo listings, representing the seller.  Cash is not king, net is king.  

I have had only a few occasions when an asset manager on an REO accepted a lower cash offer, over a higher conventionally financed offer. I suspected it was at the end of a quarter and sales needed to close for the AM to get a bonus. Rare occurrence when NET isn't the top priority.

Fannie Mae often has a first look period (15 days) that allows only owner occupied offers. I am talking about open market REO purchases through the MLS.

The First Look period enables owner occupant purchasers the ability to beat out cash investors.  Owner occupants are expected to keep better care of their home and property than a tenant would, so it is hoped that this initiative would get financially capable people out of renting and into home ownership, revitalizing and improving neighborhoods.         

After the first look period expires, investors are eligible to submit offers. There is no getting around it, and I have heard that they do verify occupancy and pursue any fraudulent activity. Asset Managers I have worked for in the past. I would avoid anything that could be considered defrauding the government. Not sure about the Buying in an LLC and selling the LLC, I have heard that before in these forums, but not sure how it works out. I am curious, but I don't know if people can post to Biggerpockets from Crowbar Hotel. LOL.

Currently, not only does the purchaser have to sign an affidavit indicating they will be occupying the property, the Realtors also have to sign.  Meaning, the Agent is on the hook too for fraud.   

I would be careful about throwing in items that were visibly apparent when you wrote the offer.  Sellers always find that irritating.   

Sometimes the reason a home has been on the market for 200 days is because they refuse to be reasonable. =)

If you think it is a matter of them not believing you about the cost of your unexpected findings, I would supply bids along with your reduction request.    

Not all E&O insurance covers self represented transactions. Realtor investment purchases are an increased liability, so they might actually decrease your split.

However, it is important to tell the Agency what you have in mind, so you know out of the gate, if they even allow you to represent yourself.         

A brokerage may have limitations on you conducting Real Estate activity without the involvement of the brokerage, while you are licensed and active. Regardless of using your brokerage for a transaction, the moment you are actively licensed, you lose some of your ability to "take advantage" of an opportunity. When you interview with Brokerages, tell them what you have in mind. Their E&O insurance often does not cover self represented transactions, so you must find out their company policy on self represented transactions.

Hi All!  I wanted to let you know the prescheduled walk-through (just a routine check to insure the home was being cared for) went as scheduled.  We took a video.  

You helped me to understand that although their was drug related activity, that being the cause for a 72 hour notice may be subject to criticism because he was not cited nor was our tenant the one that had overdosed.  

We decided to just give him 60 day notice to vacate, to minimize our legal risk of being considered unfair.  He will be gone March 1st.  We didn't mention anything about the recent police visit.  My dad did go to the police station to see if they planned on taking any action against the tenant.  They do not have any plans to further investigate.  With the fact that the police have no concerns about his herion use, this further prompted our willingness to give him 60 day notice (in Oregon, 60 days are required if a tenant has occupied for over a year).

Thanks for all of your advice.