Venice Area Homes Blog

BPOs (Brokers Price Opinons) are normally done by real estate agents (or brokers). A bank will order a BPO before or during a foreclosure process, to get an estimate of what the agent or broker thinks the house is worth in today's market. The agent or broker may or may not be experienced in this kind of work! It is no more than a "guesstimate" of value, in most eyes.

The lender wants to agent or broker to give them an estimate of value, in case the lender must take over the property and sell it either to an investor or on the market. The lender usually will look on the internet for local agents, call one and order a BPO. Many firms pay an agent $25-75 to perform this task. The agent will go to the house, most times just drive by and take photos, then fill out a bunch of paperwork for the lender. The agent does it for the small payment, plus in the hopes that if the bank forecloses, the agent might get the listing. The lender is looking for an inexpensive way to have someone look at the property and report on its current marketability and value. Hungry brokers will take on this kind of work.

In some states (such as Pennsylvania) is is ILLEGAL for agents or brokers to perform BPOs. Yes many agents will do them. Either they don't realize they are illegal, or don't care. But the Commonwealth of Pennsylvania has declared that a BPO is a form of "valuation" and therefore only a licensed appraiser may do this kind of work. Agents and brokers MAY NOT do BPOs legally.

In our office, agents are forbidden from taking this kind of work. A close cousin of the BPO is the CMA, which stands for comparative (or sometimes "competitive") market analysis and involves an agent researching sales on the local Multiple Listing Service (MLS). The agent who hopes to now list your home compares your home to other homes on the market, and to homes that recently sold, and gives you a rough estimate of what it would sell for on today's market. An appraisal is a valuation of property done by a LICENSED appraiser.

Again, an appraisal can only be done by a licensed appraiser who is registered with the state. Period. BPOs may be used before a bank takes possession of a house, or to evaluate a short sale offer, but they are not used in lending situations when a buyer is purchasing a home. Why not? Because then a lender is serious and wants to make sure they are truly getting their money worth on lending money to the buyer. They want a licensed appraiser to value the property then, and will pay more for it than they will for a BPO to make sure an expert is looking at the property.

No matter what you say, a BPO, a CMA and an appraisal are still JUST OPINIONS. They are not set in stone and they are not the "word of God." They are one person's opinion. Now, how experienced or how educated that opinion is -- that is a very different point!

 

 

 

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Erica Ramus is Broker/Owner of Realty Executives in Pottsville, PA. If you're looking for a PROFESSIONAL to represent you in all of your Schuylkill County real estate needs, call Realty Executives at 570-622-6006. Serving all of Schuylkill County ... Pottsville, Orwigsburg, Schuylkill Haven, Auburn, Pine Grove, Frackville, Minersville, Ashland, Shenandoah, Port Carbon, Palo Alto, St. Clair, Barnesville real estate. Click on the link above to search Pottsville PA homes for sale or any Schuylkill County homes for sale. We have all properties listed for sale in the Schuylkill MLS on our website -- free search! No registration is required!

We also run Schuylkill Appraisal Services, for all your appraisal needs in the area. If you need an appraisal, we are your Schuylkill County appraisal source. 

Forgotten Real Estate The Right Of First Refusal is a consumer's tool you may never have heard of.

The right of first refusal, is a type of option agreement, unlike a normal option, the purchased right to purchase, where the seller is obligate to sell for a fixed price if and when the option is excised. The right of first refusal, neither obligates the seller to sell or sets a price if the seller agrees to sell! The right of first refusal, oblates the seller to offer the holder of the right, the opportunity to buy the property for and on what ever terms the seller is willing to accept from another willing buyer.

Why would someone want a right of first refusal? Simple! They might want the property, if the seller wants to sell at a reasonable price. The most common uses are:

Tenants may negotiate a right of first refusal into a lease so that if the seller should decided to sell they have the first chance to buy and retain the property.

You want a property for what ever reason, if the seller decides to sell.

You've rented a house for years, it's your home!

Your lease creates the value, such as an anchor tenet in a commercial project.

The property would add value to your existing property.

You can't afford to buy the property today, but want it if the seller decides to sell it.

The seller doesn't want to sell today.

There are as many reasons to purchase the right of first refusal as there are to purchase real estate.

Like any other option there must be a consideration! The potential seller must receive something of value!

     The most common non-cash consideration is a tenant, where the right of first refusal is included in        a lease to induce tenancy.

     I've used the right of first refusal to protect my clients when buying part of a sellers property, as in buying a farm where the seller retains the homestead, this gives the buyer the potential to reunite the property. In which case the original sale is the consideration.

     I've used the right of first refusal to induce private lenders io invest in a property. Where the loan is the consideration.

     I've used the right of first refusal to induce investors into a minority position.

     I've used it to sooth family members when one heir inherits a family home. Here the settlement is the consideration.

Why would a property owner sell a right of first refusal on his property? Because they want the money! Because it cost them nothing, if they find a ready willing and able buyer, someone is going to buy.

What should be included in a right of first refusal?

You need to state the consideration and acknowledge it's recite.

You need to define the time allowed for the holder to exercise the option.

I've only once represented a seller offering the right of first refusal to the buyer, but I did once suggest offering one to a tenant for an extra $10,000.00 up-front.

From the buyer's point of view:

The right of first refusal must be recordable! Although, since I want signatures when I'm presenting the offer and rarely have a notary and witness available I included a paragraph allowing for me to record a memorandum.

          The right of first refusal must not be waived simply because it was not exercised on any given offer. If the proposed sale does not close your right continues.

(My REALTOR® friends are not going to like this one, but I'll make it up keep reading.)

Included that your right to purchase be based on the net proceeds from any offer, not including any concession, considerations, or brokerage fees! This will require the seller to exempt the holder on any future listing agreements, and accept any offers contingent on the right of first refusal not being exercised.

When you're acting as a REALTOR® I've included my commission, to be paid at closing if the option is exercised. (Am I forgiven?)

There is only two determents to a seller granting a right of first refusal.

     It will ad what ever time allowed for (normally 10 to 30 days) to the time necessary to close. The time to exercise the option starts when the fully executed offer is presented to the option holder.

    Some buyers are going to be put off by the extra time necessary to know if they've got a deal, but in this day of short sales taking months for approval the option period should pose little determent.

There is one big incentive, buyers knowing that a low offer will stimulate the option holder should make their highest and best offer.

Forgotten Real Estate. The Right Of First Refusal

is rarely seen today, it may be forgotten professionalism by residential REALTORS® that's a shame. Every one renting a single family house should ask for it.

Bill

William J Archambault Jr

The Real Estate Investment Institute

wja@reii.org  832-259-7078 or 702-516-1569

             

From my past: GRI 1975, FLI 1974, Catalyst from a client 1974 an agent that makes things happen, REII, The Real Estate Investment Institute 1995.

©William J Archambault Jr ©The Real Estate Investment Institute ©REII

Please help find Kimmie Daily!

Kimmie Daily was last seen leaving her home on South Hill in Puyallup, WA on August 17, 2010.  She never returned. 

Kimmie Daily is 16 with the mental capacity of a 12 or 13 yr old.  She was last seen wearing light blue T-shirt, black shorts and carrying a backpack. She was riding a green BMX bike.

She is described as 4-foot-9, weighs 97 pounds and has short brown hair and brown eyes.

If you have seen Kimmie Daily or know of her whereabouts please call 911.  The Pierce County Sherriffs Department is handeling this case.

Please share this information with anyone you may know in the South Hill Puyallup, WA area.  We need to bring this girl home.

Christa Hobart is "YOUR" #1 local real estate agent!  Call me TODAY 253-278-0997

or visit me at www.HomesAtChrista.com email ChristaHobart@msn.com

 

I've done real estate transactions for 25 years - as an attorney, broker and principal. And there is one negotiating mistake that I have seen over and over: People negotiating with the wrong party.

A common negotiation is between the seller and buyer of a house. The seller wants to sell his house, and the buyer want to buy a house (notice: 'a house,' not 'the house').

Hypothetically, let's say the seller asks for $1 million, but is willing to accept $950,000. The buyer offers $900,000. The seller counters with $975,000. The game is on.

Ninety percent of sellers make the following mistake: the universe shrinks to just this prospective buyer. The seller (for no good reason) believes that since the buyer offered $900,000, he's willing to go to $950,000.

From this point on, the seller is negotiating with the wrong party.

To win, the seller should consider the next buyer.

In a negotiation, each person must consider the possibility that the other party may walk away. What is the alternative? Roger Fisher and William Ury write about this in their best-selling book, Getting to Yes (Penguin, 1981).

"What is your BATNA – your Best Alternative to a Negotiated Agreement?"
In other words, what is the seller's position if the original buyer goes away?

Will there be another buyer at that price? Or will it be lower? Will something else materialize soon? Or will it come along in several months or more?

Our hypothetical seller should analyze the $900,000 offer against what would happen if the negotiation dissolved altogether for any reason.

Few people think of a negotiation that way. Most make it a personal battle with the other party. It becomes a game of chess - or will. This is a mistake.

I cannot count the number of times my client – seller, buyer, landlord or tenant - has said: "Jim, tell them my offer is $X. If they don't want it, they can go pound sand."

So I tell the other party, "It's $X or go pound sand."

And the other party goes and pounds sand.

Two days later, my client will call: "So where's the offer?"

"He chose to pound sand," I explain.

"Gee, I wasn't serious," my client responds. "See if he will meet me in the middle."

But, it's too late.

We were out showing homes and began wondering why so many occupied homes are not properly prepared for showings. The sellers knew we were going to show their home several hours in advance and yet most of them were not "show-ready" when we arrived.

What is "show-ready"? Here's a little background before we answer the question.

Homes sell on either emotion or price. Homes that create emotion with buyers sell faster and at a higher price. Many sellers hire a professional stager to help create that warm and inviting atmosphere. While professional staging is a great idea, we've seen staged homes that would look even better if they were "show-ready."

Most sellers know in advance that their home will be showing. When you get that call, it's almost show time! Have a plan of action to get your home in show-ready shape:

• Open all the blinds and turn on all the lights including the garage and walk-in attic. Homes that are light and bright appear larger and more inviting. If you have ceiling fans, turn them all on low.

• Have some soft music playing. If you have a media room, leave a movie playing with the sound turned down low.

• Scents are important to creating emotion. In years past, we would leave a drop of vanilla on a light bulb. When the agent turned on the light, the heat would release the vanilla fragrance into the air. Times have changed and now we can simply purchase small air fresheners. While some fragrance is good, too much can be overpowering. If you can, burn a candle until you have to leave. Candles often smell more natural than the artificial air fresheners.

• If you have time, run the vacuum cleaner over the carpets. Buyers notice when the carpets look like nobody has walked on them.

• While you may love your pets, many people are afraid of them and they often get in the way. Taking your pet with you during the showing is the best idea. Some dogs are crate-trained and sit quietly in their crate. However, there's nothing more annoying than listening to a dog bark the whole time you're viewing a home.

• Don't be there when the agent and buyers arrive. It's awkward and makes the buyers uncomfortable. Buyers want to be able to peek into closets and kitchen cabinets. They want to be able to discuss what they like and don't like with their agent and each other. If you're there, it will be a short showing! Leave the selling to the agent.

Many sellers assume the showing agent will arrive ahead of time to get the home show-ready. If I'm only showing one home, I often arrive early and get the lights on. However, if I'm showing 10 homes, I have the buyers with me and we both walk in at the same time for that important first impresion.

Buyers decide in the first 60 seconds if they like the home. Get your home show-ready and make the most of that minute!

 

 

Tom and Gina Branch, The Branch Team with RE/MAX Dallas Suburbs, service the greater North Dallas suburbs including Plano, Allen, McKinney, Frisco, Lewisville, and Carrollton.  While Gina concentrates on traditional listings and buyer/tenant representation, Tom specializes in assisting distressed homeowners to avoid foreclosure.  Tom and Gina have published two books (Achieving Rock Star Status and The Field Guide to Short Sales) and are available for speaking engagements in the greater Dallas - Fort Worth Metroplex.

Copyright 2009-2010 - The Branch Team
Texas Real Estate Broker 0513551 | NMLS 341963

 

Tom Branch, Broker Associate, RE/MAX Dallas Suburbs, http://www.thebranchteam.com

"I have to short sale my house. I am so embarrassed.  I don't want my neighbors to know. I don't want a sign.  Can you keep it out of the MLS?  Do you have to TELL people it's a short sale? I just don't know what to do anymore, Please help me.'

WOW _ the above SPILLED out of the mouth of the caller when I answered my phone today.  Not even a breath to ask who was calling, how they reached me, just an over whelmed seller who FINALLY decided to ask for help.

As reported by the National Association of Realtors 40 - 60% of homeowners are upside down.  My guess is in parts of California, specifically Northern California,  and more directly Tracy and Mountain House, CA these numbers are probably higher.  In additon to the numbers of people who are upside down the latest studies show that 70-80% of ALL foreclosures NEVER EVER ask anyone for advise or help.  WOW - that number astounds me.

So First - Congratulations on taking a step to lesson the effects of a terrible situation.  Most homeowners are very skeptical, the bank calls non-stop, they are scared, tired, frustrated and no longer want anything to do with their home.  However, it does not HAVE to be so hard.  Part of my job as a Successful Short Sale Realtor is to lesson your stress.  Sometimes when you start taking back control of the situation it helps to elivate that stress.

Second - there is no need to be embarrassed.  You need help.  Make no mistake, your neighbors probably know what you paid for you property and wonder who you are keeping your head above water and WHY.

Third-- your neighbors probably already know.  They will definately know when the bank starts taping notices to your door.

Forth - a SIGN is not required, it does help us to find a buyer more quickly.  Once we have a buyer and an accepted contract we no longer have to show you property, unless YOU want to.

Fifth - we could keep it off the MLS if you signed a waiver, however the point is to avoid foreclosure by securing a great offer that the bank will accept.  If we don't put it in the MLS, don't hang up a sign, how will anyone know it's for sale?

Sixth - We don't have to put a rider on the sign that says "Short Sale".  We don't have to put "Short Sale" on a flyer, we do have to classify it as such in the MLS.  If someone really wants to find out, all they have to do is ask a REALTOR.

Seventh - that is the special lucky number -- I can help!  I can reduce your stress!  I have options for you!  I don't need you need help unless you CALL ME, EMAIL ME, TEXT ME, TWITTER ME, FACEBOOK ME.... however you are comfortable -- contact me.  All calls are confidential.  You PAY NOTHING to sell your house -- you pay NOTHING to call and talk to me.

What are you waiting for?  There is no need to be embarrassed, mad, frustrated, etc-- I can help

Cell: 209-914-5573 | Direct: 925-679-5573 | Fax 925-226-4645
email: Susan@SusanGoulding.com| website:  SusanGoulding.com
Tracy & Mountain House, CA  | License Number 01490605 | Keller Williams Realty

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About the Author...This article  was provided by Susan Goulding, a Nationally recognized Realtor and Certified Short Sale & REO Specialist.  Susan can be reached via e-mail at Susan@SusanGoulding.com by cell phone or text message at 209-914-5573. Susan has helped hundreds of people buy and sell their home.  For Northern California real estate and homes see www.SusanGoulding.com.   If you need to Short Sale your Tracy or Mountain House, Northern California home please contact me for more information or visit www.ShortSaleMyTracyHome.com

Specializing in the following Northern California Communities: Tracy, Mountain House, Livermore, Brentwood, Oakley, Pleasanton, Danville, Patterson, Lathrop, Manteca and Ripon.  Keller Williams|Tracy|Mountain HouseTracy, CA |Homes for Sale Tracy CA |Short Sale Tracy CA |Foreclosure Tracy CA |Tracy Real Estate | Mountain House Real Estate | NorCal Real Estate

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