About Short Sales

Almost any real estate agent trying to work out a short sale deal with Bank of America will express frustrations with the slow and painful process. Bank of America is dealing with more short sales than any other company, in large part due to their acquisition of Countrywide Home Loans which was notorious for offering bad loans during the housing boom.

There are a number of things why a short sale transaction in Bank of America is rather difficult compared to other companies. One, Bank of America only approves a short sale file with only one agent. They don not allow the same agent to represent both sides of the transaction.

I’m sure they are doing this because they feel it will help them to get the best purchase price for each home they need to approve, and will help them stay out of potential legal issues. But, for real estate agents who have BOA short sales listed, this can be a royal pain when they have a buyer who is interested in a property they have listed.

Bank of America compels home buyers to be prequalified with BOA before they will accept a short sale offer even if they know they are already qualified. On the other hand, potential buyers and real estate agents find this requirement a mess. Indeed a smart move for Bank of America.

If we step back and look at short sales from the view of Bank of America, it is a really tough situation they are in. They are losing millions every day. And while the policy’s they have are annoying for real estate agents, as a business, they have to do what they can to try and make a profit, or at least reduce their losses.

Bank of America is wasting America’s money! In my state at the present, they have paid the attorney’s fees to foreclose approximately at a low end of $40K and surely will continue to face the same or worse market conditions.

For Short Sales buying tips, visit Bountiful UT Homes for Sale and Real Estate in Utah.

A common theme among home buyers today is the need to find a “deal” when buying a home. Almost every home buyer brings that up during our initial conversation. That desire is more apparent now than ever. That has to do with all of the pain in the current real estate market. There is pent up home buyer demand because many of them are afraid of buying today and having it worth less in the near future. Essentially, most or all home buyers are trying to buy at the bottom of the real estate market. Here are 5 tips to help you find a good value when making a home purchase:

1) Be Realistic – Everyone wants to buy at a wholesale price but it does not happen often. I watch the market closely all day, every day and see only a few transactions where a property truly sells at a wholesale price. The real estate market is pretty efficient. Buyers need to be realistic about what they can purchase a home for. If you analyze the market and see 3 similar homes sell for $400,000, $410,000 and $395,000 then you probably going to have to pay around these prices for a similar home in the same neighborhood. The chances of you getting the same home for $300,000 to $350,000 are slim to none. If you are looking for that kind of discount you could be waiting a long time.

2) Hire a Good Realtor – Buying a home could be your largest ever transaction so make sure you have experience and knowledge in your corner. Hiring a good Realtor will not cost you anything so make sure you do this. They can help you get educated on the real estate market by sending you what is for sale, what has sold and what homes have expired or failed to sell.

3) Become a real estate expert – How will you know what a good deal is if you don’t know the real estate market? You could be presented with a fabulous deal but if you know nothing about the market then you won’t know what is considered a good opportunity. Have your real estate agent email you what has recently sold, what is for sale and what failed to sell in the neighborhoods you like. It pays to be educated on the areas that interest you.

4) Preparation is needed – Get all of your ducks in a row ahead of time. You don’t want to find a deal and then lose it because you are not prepared. For example, get your financing or cash arranged. Lending guidelines have changed so get pre-approved for a mortgage. Waiting to do this until after you find a good value might cause you to lose it. Ready – aim – fire, not fire – ready – aim.

5) Act Quickly – Do not procrastinate. If you are educated on the real estate market, have a good Realtor, have prepared and a sweet value comes up don’t him and haw around. Act on it. Do not let paralysis of analysis cause you to miss out on a deal.

Follow these five tips and you will be stand a great chance of finding a good home value. People who find great values became experts, accepted a dose of reality, hired good help, were prepared and then acted swiftly.

Marc Rasmussen sells Sarasota FL Homes For Sale