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Unrealistic Buyer Expectations (Pt II)

I think I came down a little hard on some buyers the last time I discussed unrealistic expectations. Although I stand by my statements… I do understand that misinformation is the root of all of this. That being said… came across two other misconceptions we hear a lot in this business…

Foreclosure sale and Auction purchase as a first time home buyer.

Most people do not understand the auction protocol, and do not understand it is sometimes difficult to finance. Definitely not possible with traditional financing as auctions need money almost immediately, sooner than a traditional lender can provide.
Foreclosures are an awesome option for getting properties at a discount. Unfortunately Boston is extremely competitive and you are probably competing against cash buyers… you don’t stand a chance as an FHA buyer with these properties unless no investor wants it. 
 
Many first-time homebuyers have FHA pre-approvals, so they have other stringent property condition requirements to facilitate their lender. If you’re going conventional shoot for the stars. 
 
I think my favorite buyer is the one where every property is overpriced. I switch the question on them, and advise one day they’ll be there seller. Are they going to offer a deep discount. Probably not!
This is an off the cuff post so not as detailed as my last on this topic but still… let’s be realistic this  house hunting season.
 
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Real Estate Investment Company Searching For Intern | Start Immediately

Hi Wealth Builders,

One of our group members is searching for some assistance growing their real estate investment start up. They’re searching for a young, motivated professional eager to learn many different areas of the real estate business. The individual should be personable and enjoy working in a fast-paced team environment. If you’ve ever considered a career in Real Estate Investing, but never knew how to start, this is the position for you.

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• No cap on pay
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• Acquisitions
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• Foreclosure
• Short Sales
• Wholesale
• Traditional & Creative Financing
• & Much Much More

Requirements:
• Ability to work 30+ hours per week
• Valid driver’s license & personal vehicle
• Knowledge of basic computer systems
• Willingness to get your hands dirty
• Great attitude and desire to learn

If you’ve got a high level of ambition and are eager to start a new chapter in life, this is the internship for you. Serious Applicants Only – Please send resumes to Contact@USFlipFunding.com for consideration.

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Unrealistic Buyer Expectations (Pt I)

As real estate professionals, we hear A LOT about about what’s happening in the market and how to do our job. Fortunately for us, most of this “advice” and “input” comes from individuals with no knowledge of real estate or how to truly evaluate it… They watch a couple commercials, read a few blog posts and think that they are the expert. No hard feelings, I smile and nod, then I have a real conversation. Many times its a matter of educating people on our current market and what is actually happening versus what they think is happening. This is pretty easy to do since I work with DATA and FACTS that I have access to, which allows me to track trends. Short of the story…  Listen to your Realtor!

Below are some misconceptions real estate professionals hear all the time. Please do not be offended by my honesty. It is this same honesty that will get you the right home at the right price at the right time.

1. Buyer: “It’s a Buyer’s market.  The Sellers need me more than I need them.  My neighbor’s boyfriend’s cousin who has his real estate license but works at Star Market told me so.”

Realtor:  I can understand why you might think that but the market has flipped the other way, inventory is low, and we are seeing multiple offers out there, often over asking price… i.e. Seller’s market. Boston, particularly Jamaica Plain, West Roxbury and Roslindale are seeing offers sometimes $50,000 over asking because of bidding wars. That screams SELLER’S MARKET to me.

Everyone and their brother has got a real estate license these days… go by the FACTS they present and not just their opinion. 

2. Buyer:  “I can get a mortgage with no problem. Let’s go see these 10 houses first, and then I will get a pre-approval letter once I have found the one.”

Realtor:  We are about efficiency and results! How will we know the price range of homes you can actually look at without a pre-approval? It’s also gotten tougher these days to get a mortgage if you have some flaws on your credit report or high debt-to-income ratios, so its best to find out what’s on your credit report by doing the mortgage pre-approval up front.  Then you’ll be able to make an offer on the spot if you find “the one”. You would be pretty upset if you drove around to 25 homes, finally found “the one” then realized you had to get pre-approved and someone else put in an offer before you that was accepted… or worse…you could not afford it. My job is to get you into homes you can buy now if you wanted to. EFFICIENCY AND RESULTS!

Sell My Problem Property Quickly

3. Buyer: “What do you mean there are closing costs on top of the down payment for my mortgage?!  Can’t the Seller pay that?  I have $1000 saved – that’s enough, right?”

Realtor: Yes, there are closing costs too!  No, $1,000 is not going to cover it!  You’ll want to talk to your mortgage professional about how much you have saved towards closing costs and down payment.  Sometimes the Seller can contribute a portion towards the closing costs, but it depends on what type of loan you are getting, and generally Buyers will up their offer if they expect the Seller to pay closing costs.  The lowest down payment option available is on an FHA loan – 3.5% of the purchase price, plus closing costs can be several thousand additional. (Currently, Mass Housing has a 3% down program)

4. Buyer: “I would like to make the Seller an offer 50% of the asking price and don’t plan to go up a whole lot.”  

Realtor: If this is your strategy for every home moving forward… I can refer you to another great agent. (code for… get the heck outta here! Time is money honey!!) Most Realtors will not waste their time with a buyer who wants to make such lowball offers. Boston is largely a sellers market. Your offer gets laughed at and immediately discarded! Don’t be “that” buyer… give competitive offers. (Unless it’s an “ugly house” in which case… game on)

5. Buyer: “I want a rent-to-own home in Hyde Park. Preferably in the Fairmount area. Can you help me find a Seller that won’t ask me to put much money down?”

Realtor:  Probably not.  Lease options and Rent-To-Own scenarios are, in this Realtor’s opinion, not really beneficial in this market to the tenant and generally require a sizable deposit.  It can work if you find a seller who is not completely aware of the process and charges less than the normal fee for such transactions. Typically you pay an “option” fee of between $5,000-$30,000 that is NOT REFUNDABLE. In a Seller’s Market, you are losing for sure… why would I sell my house to you on a rent to own basis (collect small monthly payments over time) when I could easily sell to a ready and willing buyer with cash or a pre-approved mortgage (Fat wad of cash within months vs years).

There are many more “reality check episodes” to come but these are a few that we hear regularly. Let The Mandrell Company help you get into the home that is right for you today.

Schedule your consultation with one of our real estate agents.

 

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East Boston Real Estate Prices Are Shocking | Check Out What’s Selling

Are you in the market to buy, rent or sell property in East Boston? Before you make a move, understanding the local market condition can make all the difference. We’ve outlined below exactly what’s happening with Single Family, Multifamily, and condos in the area. All these number reflect what’s taken place over the last 6 months.

Single Family Listings
Total Homes SOLD: 13
Average Living Area by Square Feet: 1,623.57
Average Listing Price: $431,750
Average DOM (Days on Market): 49.15
Average Sales Price: $419,577

Condominium Listings
Total Condos SOLD: 53
Average Living Area by Square Feet: 933.04
Average Listing Price: $349,240
Average DOM (Days on Market): 49.15
Average Sales Price: $346,577

Multifamily Listings
Total Multifamily Buildings SOLD: 41
Average Living Area by Square Feet: 2,701.04
Average Listing Price: $602,240
Average DOM (Days on Market): 33.15
Average Sales Price: $595,438

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