A Life Lesson…You Are What You've Done, Not What You Own

I earn my keep selling people houses, but I am In the fourth quarter and need to keep thing in perspective.  Susan was one of my consultants when I owned Software Usability Specialists and we still keep in touch.  I sent this post to my four kids:

Experiences vs. Possessions: You Are What You've Done, Not What You Own
Click on   http://bit.ly/15UKNS6

I would love to help you buy a home in Florida that will bring positive, happy experiences into your life.  And the commission will bring some into mine!

Talk To Ted !

My Home Buyer is Pre-Qualified…So What!

Two big changes have happened since the real estate bust.  Three out of ten Americans don’t qualify for a mortgage.  And lenders are not giving out many Pre-Approval letters.

It has been traditional for buyers of homes to get themselves “Pre-Qualified” when they are putting an offer in to purchase a home and adding a mortgage contingency clause.  "Pre-Qualified" letters are relatively easy to get from mortgage lenders.  They don’t mean much; just that the lender has run the numbers the potential borrower has given to him and, without verifying the data, calculated how large a mortgage the borrower should be able to get. 

On the other hand, I ask for a potential buyer to present a “Pre-Approval" letter.   This indicates his lender has checked out all the  income, assets and other data the borrower has given to him and has pre-approved the loan.  It gives my seller  a comfortable feeling that, if he accepts an offer with a Mortgage Contingency Clause and the buyer  provides a Pre-Approval letter, then the buyer should be able to get a mortgage and buy the home.

Times have changed!  Here are two good articles from FloridaRealtors.org.  One is about credit scores and qualifying for a mortgage and the other about the slow death of Pre-Approval letters:

Getting a Mortgage 

  http://bit.ly/18Yajtj

Getting a Pre-Approval Letter 

http://bit.ly/1aiWa8v

 

BUY AT THE FORECLOSURE AUCTION

I am attending the foreclosure auction at the Courthouse this morning.  I want to reconfirm it is still a good way purchase property.  Purchasing a house at a foreclosure sale is tricky, however…“As Is” can involve a lot of risk.

On the other hand, my specialty, purchasing and selling residential lots, is much simpler:  Determine if it is in a great location.  Check out how expensive the site preparation is likely to be (Clearing, fill dirt, etc).  Examine the numbers.  And get a good attorney to work with you (I am meeting with one this evening).

There are four lots going at auction in May. Three decreased in value our property appraiser’s estimation.  One increased!

Here are some quotes from Wikipedia and RealtyTrac…who are getting smothered with bad reviews about their “Free 7 day Offer"!

Wikipedia:“In the case where the remaining mortgage balance is higher than the actual home value the foreclosing party is unlikely to attract auction bids at this price level. A house that has gone through a foreclosure auction and failed to attract any acceptable bids may remain the property of the owner of the mortgage. That inventory is called REO (real estate owned). In these situations the owner/servicer tries to sell it through standard real estate channels.”

RealtyTrac: “A reasonable purchase amount at auction is at least 20 percent below full market value, and much better deals are often possible. Other factors to consider are the rate of real estate appreciation in the area and the potential for increasing the property’s value by making repairs and improvements.”

If you would like me to help you find a good residential lot that fits your home site or investment needs, please leave a comment here and I will contact you.  Same goes if you would like more details about the four lots being auctioned in May or have some experience with purchasing lots at auction you would like to share.