Deb's Lake Conroe Real Estate & Stuff! : Foreclosures In Texas Are Flying Off The Books! How To Counsel Your Buyer~

Foreclosures In Texas Are Flying Off The Books! How To Counsel Your Buyer~

I share this from actual experience. If I can share even one little point that helps with your sale I have done my job. Some positive and some negative. I learn by doing. We all do.

PRELUDE:  The girl scout pledge...on my honor I do pledge to do my duty to God and my country, to help other people in all ways and in all times and to obey the Girl Scout Laws...I've never forgotten that pledge and it is under my skin.Girl Scout Pledge

I took everything I pledged to heart and helped fold the American flag every day after school. I would help others drop it from the 18' flag pole and I was one of four chosen for this honor. 

To this day I obey the Girl Scout rules!

Today, I was contacted by a potential Buyer from a referral. He was so excited and wanted to see the Foreclosure he found on our MLS today at 3:00pm. This was about 9;00am that he contacted me. While he was on the phone with me I checked into the listing.

I noticed it had been on the Market for only *23 days. Of course, today was Monday...I had a bad feeling about the weekend just passing. 

I found myself becoming very demanding about his Approval Letter. "Get it today," I said. His response was one of "well, I want to see the house before we decide to place an offer. The wife works at a bank and we won't have any problems with it."

Off I went! "What you need to understand is that it's Monday and this weekend it could have shown a dozen times! We only get one chance at a solid and reduced Foreclosure and if you want it we must move today!" If this is the home for you it will be sold by the time we get the paperwork together. We must move quickly.

Whoa...he hesitated. He sounded almost offended that I would push him that hard but here's the reality...if you snooze in Texas, you lose in Texas! And, probably anywhere else if it's a really great deal!

The point of this post is to help you Qualify and lock in your Buyer.

If his ducks are not in a row...and yours, you will go in as a loser.Realtor's Ducks In A Row

There is more to this story but let's categorize the list of necessary moves...

  • When you are contacted about a foreclosure it is necessary for you to qualify in a tough way. Find out just how badly they really want a home. If they are Lookie Lou's...let them go down the line. It's a waste of time, energy, and gas...more energy! lol and, you are here to sell houses.
  • If they seem serious about the home they are calling on or any other home for that matter use our well renowned term: Time is of the Essence. Because it is.
  • Explain to the potential Buyer that there are multiple people wanting this home for themselves. They are putting themselves at risk of losing their choice if they are not prepared!
  • Also, explain to your Buyers that ALL FORECLOSURES ARE A MULTIPLE OFFER SITUATION. No one is going to disclose the highest offer and often times it is greater than the asking price.
  • So, ultimately, unless the house has been on the Market for a very long time, there is no negotiating room on the asking price. Your client needs to know that up front to save you a great deal of time!
  • If, by chance, the home has been on the Market for a while, the average dissention of price is 5% per 30 day period.
  • Be prepared. Walk in with the potential Buyer with full printed Addendums and cover them with the Buyer. Also fill your Promulgated forms in completely. Why? Because the Lender or Seller uses the forms as a guideline for the Addendums that are returned. Make certain that you cover everything.
  • Always ask for an Option Period or whatever it is called in your State to decline without penalty. This needs to be in your original paperwork to get the Seller to work with you on it.
  • If there is any request of "contribution" this must be in the original paperwork.
  • If there is a Selling Agent Bonus offered this also must be in the original paperwork. Do not leave a stone unturned. It will be JUST AS YOU OFFER...THEY USUALLY MAKE NO SUBSTITUTIONS.
  • If your client wants the house then get busy! Right away. Even if you have to hand write the offer. It's still an offer and with the signatures it's good. Don't wait for technology. Do it yourself!
  • Use your Phone...(yuk)...and send an email to the listing agent letting them know that you have an offer (a strong offer) coming in and you ask them to hold off on any acceptance for a couple of hours.
  • Then do it! Follow through. And, good luck. If you work quickly, you have a good chance.

 

Sounds like a lot of work? It is. Anyone that says a Realtor does not earn their keep...is simply NOT a Realtor! I am sure you will agree.

Oh, back to my story. I got hold of the Listing Agency and they informed me that there were 7...yes, 7 offers on the table for the house and they expected a reply from the Lender/Seller any moment. We did not stand a chance. I called the potential Buyer and he still said, "well, I still want to see it..." I told him I would call him soon enough...

And, I did. I told him the Lender/Seller had accepted another offer...I'm so sorry. Let's get prepared...

We will see. Qualify the daylights out of them. If they truly are Buyers they will fight for it.

If not...

Oh well. Next!!!

My follow up post will be for how to deal with the lender and make certain they can Really Qualify...that's a whole new animal.

I hope this helps some. Any questions? Just ask. I will tell you what I have learned so far. But, that's as far as it goes folks!

Love ya!

 

 

 

 

 

 

 

 

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 Some photos attributed                                     

 

 

 

 

Comment balloon 6 commentsDeb Brooks • May 16 2011 09:30PM

Comments

Hi Deb...It's very possible that he'll listen to your advice from now on.  At least we can hope so.

Kate

Posted by Kate Elim, Realtor 540-226-1964, Selling Homes & Land a (Dockside Realty) over 7 years ago

Yes Kate, I'm not sure it got through to him though. I just want to help. I keep having to explain to people that foreclosures are like a piece of candy from a broken pinata! Everyone jumps in to grab it. I hope I can find him something but I'm not going without that approval letter! No way!

Posted by Deb Brooks (Brooks Prime Properties Wichita Falls Texas) over 7 years ago

The ducks in the row is so on target with this one Deb. Foreclosures do not just sit around.

Posted by Gary Woltal, Assoc. Broker Realtor SFR Dallas Ft. Worth (Keller Williams Realty) over 7 years ago

Deb - It is to educate the buyers that some foreclosures receive many offers. Thank you for the quality blog.

Posted by John Pusa, Your All Time Realtor With Exceptional Service (Berkshire Hathaway Home Services Crest) over 7 years ago

The market is everchanging, isn't it?  Foreclosures are still sitting around here, most often, because they are simply not as nice as owner occupied homes.   

Posted by Susan Mangigian, Chester & Delaware County Homes, Delaware and Ches (RE/MAX Preferred, West Chester, PA, RS152252A) over 7 years ago

Great post!

 

Posted by Ann Heitland, Retired from Flagstaff Real Estate Sales (Retired from RE/MAX Peak Properties) over 7 years ago

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