Chico Buyers
Foreclosures: What you should know BEFORE you make an offer, Part 3
November 18th, 2007 categories: Anatomy of a Chico CA Real Estate Transaction, Chico Buyers, Chico CA Foreclosure Listings
This is part 3 in a series of helpful hints to purchasing foreclosures in Chico, CA.
Did you miss parts 1 and 2? Read here!
Foreclosures: What you should know BEFORE you make an offer, Part 1
Foreclosures: What you should know BEFORE you make an offer, Part 2
Chico CA real estate buyers and investors LOVE foreclosures.
The problem is, there aren’t that many to go around! Many areas of California have experienced a high influx of foreclosures thanks to the recent mortgage meltdown. Chico, CA however has fared a little better in terms of relative numbers of repossessions.
Chico CA buyers are competing to snatch up the bank-owned (REO) property when it DOES come along. It’s important to remember, however, that purchasing an REO property can be quite a bit different than a traditional Chico CA real estate purchase.
Before offering on a Chico, CA REO property, you should know:
1. It’s important to have a preapproval letter from your lender. Most of the banks I’ve dealt with require that the preapproval be submitted with your initial purchase offer. Without it, they won’t waste their time reviewing your paperwork. While this makes good sense anytime you are offering on a property, it’s critical for an REO listing.
2. The bank also wants to prequalify you themselves.
They want to see the letter from your preferred lender, but they won’t necessarily trust it! Oftentimes, you will be required to fill out their credit application just so they can verify that you do indeed qualify for the loan amount, or are otherwise financially stable. Although they would be happy to process your loan, you are still pursue a loan through the lender of your choice.
3. The bank is picky when it comes to title companies.
Typically, a buyer has some say about which title company they prefer, and even which officer they would like to work with. The bank really doesn’t care if your friend Sue is the best title officer in the county and her office is only 2 blocks from your new house. Most of the time, they already have a title company and officer designated, and the point is non-negotiable. The best part? The title company is usually out of the area, and unfamiliar with local practices.
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Still want to be part of the foreclosure frenzy taking place in Chico CA real estate? Contact me, and I will work to find you the perfect Chico REO property for your needs.
Sandi Bauman, Chico CA Realtor: 530-864-5407.
Related reads:
Short escrow? Get your ducks in a row BEFORE you make an offer.
What is the Difference between Prequalification and Preapproval?
Why Should I Get Preapproved for a Chico, CA Home?
Looking to buy or sell Chico CA Real Estate? Need a Top Producing Chico CA Realtor? Call Sandi Bauman 530-864-5407 or email [email protected]. Specializing in REO, residential, relocation, investment & ag property.
| Discussion: 4 Comments »
Foreclosures: What you should know BEFORE you make an offer, Part 2
November 16th, 2007 categories: Anatomy of a Chico CA Real Estate Transaction, Chico Buyers, Chico CA Foreclosure Listings
This is part 2 in a series of helpful hints to purchasing foreclosures in Chico, CA.
Did you miss part 1? Read here.
Bank-owned property (REO) is some of the most sought-after Chico CA real estate of all time. In a market where many buyers are sitting on the fence waiting for the bottom to fall out, savvy investors are picking up REO‘s as fast as Chico Realtors can churn them out!
It is important, should you be considering purchasing a bank-owned (REO) listing, that you understand up front what exactly you’re getting yourself into. For the uninitiated, a look into the world of REO can be quite surprising. (In case you’re wondering, I don’t necessarily mean that in a good way.)
Before offering on a Chico, CA REO property, you should know:
1. Most REO property won’t leave you feeling all warm and fuzzy.
First time home-buyers are often gleeful when they get their first look at the home they will eventually buy. “It’s just so CUTE!” they declare. They oooh and aaah over the carefully groomed, staged and scented home visualizing Thanksgiving Dinners and Christmas trees.
REO property often takes a little more imagination. You have to try to pretend that the yard is not dead, the house isn’t lime green, the walls don’t have holes in them, the kitchen appliances and fixtures are actually there, and the flooring isn’t all torn up. That is, if you can get past the unbelievable stench and filth of lives gone horribly wrong.
To be fair, there are nice, clean Chico REO properties to be had- there are. But oftentimes, an REO house is one that shows evidence of severe neglect and outright abuse on the part of an angry or desperate previous owner.
2. Don’t expect the bank to pretty it all up for you!
The banks usually prefer to sell “as is.” Minimally, they will do an initial “trash out” to remove the belongings left in or on the property. In addition, they will re-key, board up windows, and winterize. It is unlikely that measures will be taken to add appeal- if the sinks, lights, appliances and windows are missing, they are likely to stay that way. Exception: if the buyer’s lender requires a repair (or 10) to fund the loan, the bank may negotiate the cost of the repairs. In a competitive REO market, however, they won’t need to do any repairs- a cash buyer will snatch it right up in it’s current condition.
3. The bank won’t tell you what’s wrong with the house, because they don’t know.
A traditional seller is required to provide you with a laundry list of everything they know to be wrong with the property. In the case of an REO property, the seller has never even seen the property, let alone lived in it. The bank has no idea if the handrail is loose, if there are barking dogs next door, or if meth was manufactured in the second bedroom. Make sure that you do any inspections necessary to ensure that you have a good grasp on the condition of the property- very little information will be provided to you by the seller.
Coming soon! What you should know BEFORE you make an offer, Part 3.
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By the way, if you like the yellow house in the picture…. it can be yours for ONLY $79,900! That is $55,000 less than any other stick built home in Paradise CA!!
Give me a call right away 530-864-5407– it’ll be gone quick.
Looking to buy or sell Chico CA Real Estate? Need a Top Producing Chico CA Realtor? Call Sandi Bauman 530-864-5407 or email [email protected]. Specializing in REO, residential, relocation, investment & ag property.
| Discussion: 6 Comments »
Foreclosures: What you should know BEFORE you make an offer, Part 1
November 12th, 2007 categories: Anatomy of a Chico CA Real Estate Transaction, Chico Buyers, Chico CA Foreclosure Listings
This is part 1 in a series of helpful hints to purchasing foreclosures in Chico, CA.
“Foreclosure” sees to be the new buzzword around Chico, CA these days. Everyone wants to score that awesome Chico CA real estate deal, and people are looking to the foreclosures in Chico to make it happen. In truth, most people are actually wanting “REO” property. In other words… the bank now holds the title.
The process of purchasing an REO property can be significantly different than your average residential purchase. Not always, of course, but often enough that you should know ahead of time what you might run into.
Before offering on a Chico, CA REO property, you should know:
1. Not all REO’s are phenomenal deals!
Just because the listing agent labels it “foreclosure!” doesn’t mean that it is a steal. I work with a least one bank that takes the appraisal price and ups it by 5% to arrive at the asking price. Make sure that you are working with a competent Chico Realtor who can help you ascertain whether or not the property is priced competitively.
2 . The bank has no emotional ties to the property.
Unlike a typical homeowner, the bank is emotionally detached during the negotiating process- it’s completely impersonal. Truly, your offer is just one of many files sitting in a pile on somebody’s desk. The strategies that might help you score in a traditional transaction are unlikely to work with a bank employee located in Texas. They have a specific set of rules and time-lines to follow, and little else matters to them.
3. The bank operates on their schedule, not yours.
“Time is of the essence” in a typical transaction. If, as a buyer, you allow the seller 3 days to respond to your offer, they will usually respond as quickly as possible in order to facilitate the transaction. A bank may respond in an hour, or it make take several weeks to get an answer! Don’t make the mistake of thinking the bank isn’t considering your offer- sometimes the contract has to be approved by a series of 5 or 6 people at the company before you get the good news. Conversely, I’ve found that once an offer is approved, the bank will steamroll over anybody or anything that gets in the way of closing the deal on time. Usually, they want to close within the same month the contract is approved!
Coming soon! What you should know BEFORE you make an offer, Part 2.
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Have specific questions on the foreclosure process? I’m glad to help, whether you are a seller facing foreclosure, or a buyer looking to purchase. Give me a call! 530-864-5407.
Looking to buy or sell Chico CA Real Estate? Need a Top Producing Chico CA Realtor? Call Sandi Bauman 530-864-5407 or email [email protected]. Specializing in REO, residential, relocation, investment & ag property.
| Discussion: 8 Comments »
Short escrow? Get your ducks in a row BEFORE you make an offer.
November 2nd, 2007 categories: Anatomy of a Chico CA Real Estate Transaction, Chico Buyers, Chico CA Real Estate News, Chico Sellers, My Opinion on Things
There is no disputing the fact that Chico, CA is currently in what is commonly known as a “Buyer’s Market.”
That is FABULOUS news for all the buyers out there who have patiently been waiting for this day. The inventory is high, the prices have dropped, and the interest rates are still phenomenal!
Now is the time to get a great deal! 
A “Buyer’s Market” is a wonderful thing. A Chico, CA home that might have cost $400,000 in 2005 may only set you back $350,000 today. On average, prices seem to have corrected between 10 and 15 percent for residential properties.
I have noticed a growing trend with buyers. In an effort to get the absolute lowest price on a property, they attempt to entice the sellers with a very short escrow period. For some sellers, a quick sale in this market is a dream come true! They need out from under that house payment, and will gladly accept less than asking price just to be DONE.
However, when representing a seller, I have had to caution against signing the first contract we see, simply because the buyer promises to make it the pain go away with a 10 day escrow. The offer to close in 10 days is an empty one if the buyer has not done his homework.
The following items must be taken into consideration to close an escrow quickly:
- Is the buyer preapproved?
- Is the lender local and knowledgeable about our issues and resources?
- Is the lender willing to commit to closing on time?
- What kind of loan product is the buyer applying for? A VA loan, for instance, is highly unlikely to close in less than 30 days.
- What inspections does the buyer request? Well potability tests may require 14 days or more to obtain results.
- Can we get the appraisal completed immediately?
- Will repairs be required by the lender to fund the loan? If so, is there a contractor available to bid, complete, and final the work within a days notice?
An escrow that closes quickly can be a wonderful solution for both the buyer and the seller, but it doesn’t happen without forethought, preparation, and a willingness for all parties to be focused on immediate results.
If you are a buyer, hoping to get the best deal of the year by offering to close quickly, get your ducks in a row BEFORE you make an offer. No seller in their right mind will accept your offer if you aren’t prepared to close the deal.
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Shopping for Chico foreclosure property? Give me a call- I’m currently working with several REO departments on bank-owned Chico property. Sandi Bauman 530-864-5407
Looking to buy or sell Chico CA Real Estate? Need a Top Producing Chico CA Realtor? Call Sandi Bauman 530-864-5407 or email [email protected]. Specializing in REO, residential, relocation, investment & ag property.
| Discussion: 6 Comments »
Lenders beware: How to lose a Chico, CA Realtor (and therefore buyer) in 3 days.
October 7th, 2007 categories: Busy Girls Guide, Chico Buyers, Chico Financing, My Opinion on Things
I would say, as far as Chico CA Realtors go, I’m fairly easy to get along with. I typically play nice with my peers. My end of the work is done in a thorough manner, and on time. If, as a lender, you do your job well and respect my clients, I will happily recommend you to future Chico, CA buyers.
That is, I’m easy to work with UNTIL you tick me off.
If I feel that an unethical action (or lack of an ethical one) on your part has jeopardized my clients in some way, then be prepared to make it right. On the client’s behalf, I will hold you as accountable as I can. You probably won’t like it much…. just so you know. Once we get them taken care of, I won’t be bringing you any new business.
How to lose a buyer in 3 days (or less!)
1. Ignore phone calls and emails.
2. Intentionally leave off or reduce known fees on the good faith estimate.
3. Quote them one rate when you are fully aware that they won’t qualify.
4. Assure me that you can close the loan on time when you won’t be doing so.
5. Tell us that the buyers are prequalified for a specific loan, when in fact, you haven’t done the work.
6. Assure me that you have everything you need to close when you HAVE NOT received all documentation.
7. Bait and switch my buyers at the closing table. That interest rate better be pretty darn close to the quoted one!
8. Abandon us at the closing table. You should be there to explain any and all concerns the buyer has regarding his loan papers.
9. Be incapable of admitting that you don’t know, or have made an error. I’m not perfect, and don’t expect anyone else to be. If you make an error… just say so! Don’t run us around and waste more time.
Whew!! (I’m glad I got that off my chest).
It frustrates me to no end when a lender does not represent his or her clients with an ounce of honesty, fair dealing, common courtesy or professionalism. That client is supposed to be the one we are both protecting!!
Lenders: If you’re looking to lose a client, a Realtor, and any potential for future business, any of the above actions should get you there in no time at all.
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Buyers: If you need assistance locating a competent, Chico, CA lender to assist you in your home buying experience, feel free to call me for a recommendation! I can be reached at 530–864–5407. It’s wise to choose carefully, in order to avoid the nightmares, and save time later!
Looking to buy or sell Chico CA Real Estate? Need a Top Producing Chico CA Realtor? Call Sandi Bauman 530-864-5407 or email [email protected]. Specializing in REO, residential, relocation, investment & ag property.
| Discussion: 8 Comments »
How to Hire a Chico, CA Realtor and Make More Money!
September 16th, 2007 categories: Anatomy of a Chico CA Real Estate Transaction, Chico Buyers, Chico Sellers
It’s often fascinating to hear how people go about hiring a Chico, CA Realtor to represent them in the sale or purchase of a home. More often than not, I hear things like:
“Jeff has those big bulletin boards all over town- he must be REALLY successful!”
“Ann is our next door neighbor.”
“Bill is my co-workers son. He just got his license, and we thought we’d help him out.”
“Julie always has her picture in those real estate magazines, she must sell a lot of homes!”
Yikes!
A real estate investment is arguably one of the biggest, most costly financial decisions a person will make in their lifetime.
As such, it is critical to choose carefully the professional that will be guiding you through the complex transaction. As nice as it would be to give “Bill” an opportunity to learn the trade, are you willing to put your financial security on the line for him? “Ann” might be the best neighbor in the world, but the worst Realtor in town! One of the biggest mistakes I see people making when hiring a Realtor is ASSUMING that an agent is a top producer, simply because he or she is good at advertising. In truth, the agent might not have sold anything all year!
Ideally, you will find yourself a competent, proven professional who is knowledgeable about the industry, the local Chico, CA market, and your needs as a consumer. By doing so, you will make more money!
“How do I go about hiring the right Realtor?” you might ask.
I suggest that you conduct a minimum of 3 interviews with agents you are considering to represent you. That’s right– INTERVIEWS! Ask the tough questions, and take notes on the answers. Compare the experience, professionalism, and general attitude of each agent.
Here is a great list to get you started:
1. Are you a FULL time Realtor?
(IMHO you can find VERY good part timers… you should just know up front who you’re hiring.)
2. What is your total sales volume this year?
(Consider that an average Chico, CA house is around $350,000).
3. How many transaction sides have you closed this year?
(The top 20 producers in Chico, CA will close an average of 30 per year).
4. How do you rank in your company?
5. What price range does your typical listing fall under?
(If your house is worth $1 mill, you don’t want to hire a $200k agent!)
6. How do you rank in comparison to the other 400+ Realtors in the Chico MLS area?
7. Do you have a personal web site or blog site?
8. Tell me about your Internet marketing programs.
(Do you understand and cater to the 92% of buyers that utilize the Internet?)
9. Tell me about your traditional marketing methods.
10. Are you currently active in your local Board of Realtors?
(Do you keep yourself current on local issues and network with other Top Producers?)
11. Do you offer Exclusive Buyer Agency?
(Will you explain all levels of agency representation, how they apply, and how affect me?)
12. What real estate specialty designations have you received or are you pursuing?
(Do you find continuing education to be valuable?)
13. Before we agree to work together will you do a ‘listening presentation’ so you can learn about all of my ‘wants’?
14. Are you equipped with the newest tools of the trade?
(the latest in software such as Relay, smart phones, scanners … all of those high-tech things that will help you be an industry leader?)
15. Do you have systems in place to insure that you contact me regularly with useful information?
(Will you continue your relationship with me even when I am not buying or selling real estate?)
16. What percentage of your business comes from referrals and how important is this for you?
(In other words, how much time do you spend prospecting versus working on finding me a home?)
17. What sets you apart from all of the other Chico, CA Realtors that I know??
It stands to reason that a top producing agent has a certain level of proven skill, knowledge, and ability to work with people, all of which are crucial elements to getting you the most money possible from your sale or purchase. Your job, as a consumer, is to be aware and responsible for whom you are hiring to represent you. After all, you are the one who will inevitably suffer in the long run!
One last bit of advice: you need to genuinely like the person you hire! Throughout the course of a transaction, you may spend a considerable amount of time with your Chico, California Realtor. Make sure that you are comfortable communicating with the individual, and that you feel he or she truly has your best interests at heart. Many are great sales persons, but lack the personal connections that are critical.
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Looking to buy or sell Chico CA Real Estate? Need a Top Producing Chico CA Realtor? Call Sandi Bauman 530-864-5407 or email [email protected]. Specializing in REO, residential, relocation, investment & ag property.
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What is the Difference between Prequalification and Preapproval?
September 16th, 2007 categories: Chico Buyers, Chico Financing
The difference between a pre qualification and a preapproval, my friend, would be like buying a discount store handbag vs. a Prada or Gucci handbag.
A prequalification is a very preliminary estimate of how much you can afford to pay for a Chico California home. The lender will base his opinion on the information you provide. However, your credit and employment information typically aren’t validated for prequalification, so the results can only be considered a rough idea of what size payment, and what type of loan you might qualify for. Please be forewarned that prequalification letters are not often highly regarded by people “in the know”. All too often, a lender is unable to get the final loan approved, despite the fact that he or she has issued a prequalification letter to his unsuspecting buyer. The more reputable and educated the lender, the better the chance that the pre qualification letter is a valuable step in the process.
Still, a prequalification letter can be a useful tool until you have the opportunity to substantiate your information. Like the discount handbag, it will get you by for a while!
A preapproval is a written commitment from a lender or mortgage broker to finance your home purchase up to a specific amount. This indicates that the lender has scrutinized your financial history including employment verification, rental history, credit reports, pay stubs, W-2’s, tax returns, etc. Preapproval indicates to sellers that you are a pre-screened, serious home buyer. Once you have obtained a preapproval, you can shop with confidence, knowing that your odds of obtaining your desired loan are good.
**It’s important to note that neither a prequalification or preapproval letter is a guarantee that you will be given the loan. Even with the preapproval, there are certain details like a finalized sales contract, inspections, and appraisals that must come into play prior to the bank’s funding your new loan.
Don’t hesitate to give me a call if you’re ready to take that all important, first step to becoming a homeowner: getting prequalified. You will surprised at how quick and painless it is!! It would be my pleasure to match you to a lender, one that both you and I can trust to provide you with the information you need to get you on your way to buying Chico California real estate! I can be reached at 530-864-5407.
All important, related must reads!
WHY Should I Get Preapproved for a Chico, CA Home?
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Looking to buy or sell Chico CA Real Estate? Need a Top Producing Chico CA Realtor? Call Sandi Bauman 530-864-5407 or email [email protected]. Specializing in REO, residential, relocation, investment & ag property.
| Discussion: 6 Comments »
Why Should I Get Preapproved for a Chico, CA Home?
September 10th, 2007 categories: Busy Girls Guide, Chico Buyers, Chico Financing
It’s important to be preapproved BEFORE you start searching f
or a Chico, CA home
Time is always of the essence. There’s no use fooling around doing things the hard way when you can go straight for the gold. By investing a very minimal amount of time before you start shopping for a house, you will save yourself immeasurable time and grief later. Trust me.
1. If you don’t get preapproved, how do you know what price range you should be shopping in? There is nothing worse than spending months looking for the PERFECT house, only to find out later that you can’t make it work financially. Save yourself the pain- don’t guess!
2. It’s best to try to keep your Realtor happy! Like you, she’s busy. The last thing she wants to do is spend endless hours trying to find you a house that you can’t afford. To get the most attentive, personalized service from your Chico, CA Realtor, make sure that you’re ready to pass “GO”. Provide her a preapproval letter so that she knows what your ideal price range is. You will find that she will be dedicated and expedient in exposing you to all of your options, thereby saving YOUR time.
3. Make yourself more appealing to the seller of your dream home! When you put an offer on a house, one of the first things the seller will want to know is whether or not you can afford it! The seller will be less excited about accepting your offer if there is a question about your loan getting approved. After all, he doesn’t want to pull his home off the market only to find out 30 or 60 days later that your loan won’t go through. He would be jeopardizing his chances of securing another buyer.
Also, consider this: If the seller were to receive 2 identical offers, with one buyer being preapproved and the other NOT, which buyer do you think will ultimately have their offer accepted? Of course! The buyer with the preapproval letter.
Call me today at 530-864-5407 for assistance in getting preapproved for your Chico, CA real estate purchase. I can put you in touch with a lender immediately to get the ball rolling.
Getting preapproved is the best thing you can do to get started on the path to home ownership!
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Looking to buy or sell Chico CA Real Estate? Need a Top Producing Chico CA Realtor? Call Sandi Bauman 530-864-5407 or email [email protected]. Specializing in REO, residential, relocation, investment & ag property.
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