Great, this is where the “fun” begins. After you have scoured our Paris911 Real Estate search resources, and you have come up with a list that you want us to Recon – our work begins.
Actually, we do scouring of the real estate listings multiple times per day for our clients.
How we work the listings we find and those our clients send us:
- We look at the agent(confidential) remarks: Those are the “sensitive” remarks the general public is not made aware of. They could include the following items that may hinder a specific buyer:
- Showing by appointment only.
- No showings period – only written offers accepted subject to inspection (typically with tenant occupied properties and those short sale sellers that are not in a hurry) This is not the BEST way to purchase real estate!
- Showing at some future time – only for a two hour block. This builds steam for the agent and their “internet leads”. It could be attributed to a property where the tenants are not helping the owner sell their home. That tenant issue can create problems all of it’s own when wanting to purchase a home. i.e. what if the tenants don’t move out?
- Several Loans and More Money upfront to close the deal. Short Sales are famous for this. The first wants a certain amount of money. There is a second that is not going to get any $$$ from the first and wants the buyer to pay cash to make them happy and allow for their Blessing to let the short sale go through. There may be a third loan as well. Back Home Owners Dues, Tax Liens, and other types of bills that need to be remedied before the buyer can purchase the home. With short sales – the seller has a hardship and usually is unable to pay anything.
- The home will not finance for certain loan types: VA and FHA are the most critical. Conventional loans at less than 20% can be critical too. Critical, pertaining to what the Specific Appraiser will allow for with regard to financing. Case and Point – Carpet missing and slab exposed can shut down a VA and FHA buyer(there are many more exceptions that we cover in our Crash Course on Real Estate) – those appraisers for those loan types will not allow for the home to appraise. When the seller is unable to contribute, the deal cannot be completed.
- Cash Only Offers: This cuts out everyone that is not a cash buyer. It could be that the property is in such horrible shape, it will not finance. It could be that the “seller” needs a quick close. There are a number of reasons as to why a property may be a “cash sale” only.
- We then contact the Listing Agent: This is where the rubber meets the road. Where we call and utilize our Real Estate expertise and use Verbiage to find out the “Rest of the Story”.
- Do you have any offers: This can limit a buyer when wanting to purchase a property. If they have offers on the property, let us say 7, it may limit the chances for certain buyers. Especially if the financing of those offers is superior to theirs. We also do our best to glean where they are in amounts with regard to the offers that have been received. While it is not the case we always get the “truth” with regard to this question – it does not hurt to ask.
- Why has the home been on the market for such a long time with no offers? This usually separates the men from the sheep. Depending on what the listing agent tells us, will depend if we truly think this is a valid choice for our clients, always with our client’s needs in our minds.
- Why is the seller selling? Not able to be answered in most cases and who knows if what the agent is telling us is the truth. However, we can glean some insight if this is told. Some times the listings that are on the market are merely “TESTS”. An agent telling a seller than can get X amount of Dollars for their home. They actually list the property, market it, and work the leads, with no intention of selling the home, EVER!!!
- Is this home truly active? While is may be showing up as active in the MLS – it may not be. It may have an accepted offer on it. It could be that it was only returned to active as an attempt to motivate the buyers that are currently in escrow to perform. There is a possibility that the listing was never changed the listing from “Active” to another category on purpose(to generate more leads for the agent) or because the agent forgot! BTW – not changing the status of a property becomes a violation with the Board of Realtors if not done so in 48 hours. There is some overlap with that rule!
- The Test of a Lender – We have questions for them too!
- If the Buyer has certain “finance issues” – We need to make sure the subject property will work for them. Issues as they relate to the loan type they are using. FHA and VA have more strict guidelines than do 20% down Conventional loans. We want to make sure the property fits the profile of the buyer and will be allowed to finance. There could be Mello Roos and Assessments – HUGE HOA fee’s – they all need to be factored into the buyer’s bottom line.