All Forum Posts by: Kim Knox

Yes, if their net gain is bigger in making improvements, they will make improvements. They will have an appraisal. That appraisal will indicate "as is" value, and an "as repaired" value. Weighing the cost of repairs vs the gain will be detailed in the report for their consideration.

Additionally, Fannie Mae favors owner occupants. 97% or more owner occupants are purchasing with FHA Loans, which requires the dwelling to be in particular shape. A Fannie Mae property generally has to be on the market for 15 days before non-owner occupied purchaser's formal offers will be considered. Google "First Look Program".

Generally, Buyers should not be left unattended, your concerns are legit.....the reason behind this is that we need to watch over people to avoid any funny biz. Theft, vandalism, inappropriate behavior, etc..

Bad behavior is FAR more of an issue with Open Houses, when the Prospective Buyer's are unknown to the Agent.

It is possible that the Agent was asked to excuse himself so the Prospective Buyer's could have a private chat about what they were prepared to offer.

Some people are simply unsuspecting. I would guess he probably didn't have ill intent. A few years in Real Estate will cure anyone of their innocents. =)

Congratulations on your offer.

Ahhhh man, I hate to be the one with a different spin, but here goes. You will think this is because I am a Realtor. Your right, it is. =)

This is how I conduct my business. I don't work with Buyers that are working with other Realtors. No way. Sorry. I don't get paid by the hour, I get paid when I am successful. I am successful when I CLOSE sales.

If you want an Agents FULL attention, you have to be a loyal client. If I am always wondering if my Client will use another Realtor, he/she will never be my first call, will never get me to cancel dinner with my family to show that new listing, will never get me to search outside the MLS, will never get me to spend any real time on you, the risk is too high.

For my loyal Clients........I will cancel dinner, Christmas, my birthday, or whatever, to get them what they need. No problem.

Here is the question. Is it better to have the FULL attention of one GREAT agent, or partial attention of 5 agents? If your agent is not GREAT, find one who is GREAT and be loyal.

1. When under contract, the preliminary title report will indicate the lien amount of the Seller's mortgage. The Seller could also have liens outside of a mortgage, so the title report is your best security.

2. The rule, no. No rules should exist. Use comparable sales, not tax assessment values in a declining market.

3. Unless you are a Realtor or an Attorney, you cannot legally collect referral fees. If you are either, get it in writing, on a referral contract.

4. Probate letter......don't know. Are you talking about a probate solicitation letter?

I would invest 65% in real estate (that is what I do for a living) and 10% into my IRA, and 25% into having fun.

I list for banks (Realtor). They generally try to respond within a few days. Sometimes they have a particular inventor backing the loan that they have to get permissions from.

I always view it as a positive sign if it is taking a little longer to get a response. It means they have taken it to the next level for consideration. The next level generally has the liberty to consider lower offers.

If it is just a matter of your writing a full price offer the day it hit the market, it can be as simple as the REO requiring it be active for 7 days before response. This enables them to generate as much competition as possible.

If you have no prepayment penalty on your contact, what is to stop you from just paying your debt to the deed holder from the proceeds of the sale, so he will release the lien, so you can offer clear title. Most owner carry contracts, have a due on sale clause, requiring you to pay them off in the event you sell all or part of a property. At least, the smart Sellers do.

Here is the greater issue that your question highlights for me. What is the zoning of the property allow? Generally in my area, a lot split requires a homesite application. Lands the size of yours are generally referred to as "resource land". Resource land makes it so that an additional homesite approval is not necessarily an outright use.

Some people naturally assume (totally reasonable to make this assumption), that if you have a large property, you can sell a portion to someone else who wants to build. Your big chunk of property may have a single homesite approval. Just something to consider before you try selling part of your property. Call your local planning department and find out their approval process for your particular parcel to split and allow for a 2nd homesite location.

The main value in any piece of land is the ability to create a homesite.

I agree with Ned, plus any lender would require a confirmation of clear title. If a title issue exists, it will exist for any buyer, so it is your issue. If you can't provide clear title, that is a problem.

Hopefully when you purchased, they didn't overlook liens and judgements that were rightfully attached BUT if they did.....it appears to be a problem the title company will have to resolve. Afterall, it sounds like you got insurance for clear title when you purchased. I am curious to know if you paid cash, or if you got a loan.

If I were you, I would get right in the center of their investigation to make sure it is resolved. This buyer could absolutely be in earnest, but simply unable to close because of a title issue.

I really appreciate the effort you went to, to determine your rio.

However, contact a lender first. You are way ahead of yourself. Find out what you are approved for and have your credit ran. They should be able to tell you the interest rate you will qualify for.

Non owner occupied conventional loans and generally 20% down. Sometimes you can capture a more desirable interest rate if you offer 25% down. Both 20-25% down eliminates your mpi as well. If your focus point is roi, then you might be smart to weigh potential savings if you put another 5% down.

A desirable roi has been 10% historically. Your cash on cash is exceptional. In my estimation. Of coarse, I am generally happy if my renters are simply buying a home for me. You are getting a home bought for you and getting a nice return.

Check on your condo association. They generally have a max amount of (%) non-owner occupied buyers. They do this to create more of an owner occupied community, which helps maintain property values.

I wonder, by your post, if you might not already own a home yourself? If not, I would suggest looking into the tax benefits of buying a home, including tax free gain.

It depends. If you purchased an REO, make sure that you are allowed to transfer the title before considering a quitclaim. Some REO's have deed restrictions against transferring title within 90days of close of escrow.