Don’t Let the Listing Price Trick You!

Posted by Robin Camacho | Uncategorized | Tuesday 29 November 2011 8:40 PM

Neighborhood Realty continues to be in the spirit of gratitude. We would like to thank all of the staff, clients, lenders, title companies, insurance companies, and especially our families for making our success possible. Real estate can’t be done by one person, you need a team of people in and out of your company to help a transaction be successful and smooth for everyone involved. Taking that into consideration, as a buyer you should make sure you have the right team working for and with you on your investments.

As your trusted advisors, we encourage you to have a trusted and reputable agent, lender,title and insurance company who will help you navigate the process of purchasing an investment property. Just because a home is bank owned or might be facing foreclosure, it doesn’t mean it is the best deal out there for you. You might be comparing them to what they previously sold for and thinking: wow, I’m saving over $50,000. Please consider what are the rest of the homes being sold for and why, the condition and problems of the others. Have an agent that knows what he/she is doing create an extensive Competitive Market Analysis. He or she will put in as much details of the home, including damages and improvements, to let you know what is the estimated value of the home.

The best advice I can give you is to think above and beyond the listing price. A home that is selling at a lesser price than the home next door might have some hefty expenses attached to it. For instance, that home may not be free of judgments, liens, and there might be improvements that will raise the cost in the future. Are all the extra expenses and time worth it to you? Definitely don’t forget that sometimes banks will not carry some of the closing costs, you might also have to pay that out of pocket as an investor.

Just remember, the cheapest investment deals, don’t necessarily promise the highest return.
For any additional concerns or questions about investing, call our office at 702.949.0790.

Tracy Castro,REALTOR(r)
Neighborhood Realty
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Finding the Best Deals on HUD Foreclosures

Posted by Robin Camacho | Uncategorized | Wednesday 16 November 2011 6:48 PM

With nearly 70% of REOs expected to be HUD-owned homes soon, this is a great time to talk again about the “ins-and-outs” of buying one of these homes. Neighborhood Realty recently sponsored a class on buying HUD homes, and on 203k rehab loans. The class was a real eye-opener.

From a buyer’s perspective, HUD homes are a great way to go if you need to find a home quickly. I can show a buyer a home, write an offer by 10 PM, and have a response the following day. No multiple counter offers, no “highest-and-best” requests, no waiting a week to learn if your offer was chosen.

Many agents find selling HUD homes too difficult. It isn’t difficult at all. I’ve sold HUD homes to several buyers who’d worked with another agent who talked them out of looking at HUD homes. This is a disservice to the buyer and I love it when these buyers call me! Agents who haven’t taken the time to learn how to show and sell HUD homes will often tell buyers “you don’t want to look at HUD homes” when they should be saying “I don’t care to learn anything new”. And therein lies the second reason you should be looking at HUD homes – with fewer agents showing these, there is less competition among buyers.

Every HUD home is listed with a “property condition report” which details any problems the HUD inspection has uncovered. This should not substitute for your own home inspection, but it can be very helpful to know what to look for when you view the home. HUD homes also include an appraisal amount.

So how does one find the best deals? I’ll let you in on a little secret: look at homes in “extended” status. These homes did not sell during the initial bid phase (open to owner-occupants only), and you are much more likely to get an offer accepted for less than list price. It’s best to call and let me help you, but you can do your own research on HUD Homestore if you prefer. When searching properties, select “Investor” as the Buyer Type. This will direct you to houses in “extended” bidding stage.

Many HUD homes are eligible for a 203k rehab loan. There are two types of FHA rehab loans, and I’ll cover this in a future post. For now just know that you have no reason to fear fixer-uppers. In fact, you can have the home you really want with a rehab loan.

If you have any questions, please submit them to my assistant at tracy@NeighborhoodRealtyVegas.com or post it on Neighborhood Realty’s facebook page.  I’ll be sure to respond as soon as I get a chance!

Neighborhood Realty