[urbanrealtor]

You have a good point with that bit about education.
I have found with first-timers that often it is illustrative to let them low ball and lose the first few places.

Its painful for them and its painful to see as an agent (and as a friend). However, I think it is a necessary evil. If they are making offers that are below what the market will bear or what they really are willing to value it at, then changing that behavior really has to be endogenous.

I never want to be the agent who pushes someone to offer more than they are comfortable with. Losing a place can help some buyers really take their own temp as far as their interest.

[urbanrealtor]

You have a good point with that bit about education.
I have found with first-timers that often it is illustrative to let them low ball and lose the first few places.

Its painful for them and its painful to see as an agent (and as a friend). However, I think it is a necessary evil. If they are making offers that are below what the market will bear or what they really are willing to value it at, then changing that behavior really has to be endogenous.

I never want to be the agent who pushes someone to offer more than they are comfortable with. Losing a place can help some buyers really take their own temp as far as their interest.

[urbanrealtor]

SDR, that is a good model for thinking about it and good model for addressing the issues involved. The only caveat I would add is that generally title companies have records a few days out of date. Sometimes the getting a title policy does not cover claims arising from events between their last update and the issuance of the policy. For example there is a trustee auction on Aug 30. On Aug 29, your preliminary report and policy are issued. The title company files were last updated on Aug 25th. There was a mechanic’s lien filed on Aug 27th.

I don’t know if there is a title policy that would protect you from this. There might be. In fact, I don’t know what the procedure is for issuing policies for trustee sales. Do you happen to know?

So I have too many unknowns here to make an actual case for the danger involved. However, it has occurred to me before that an unethical contractor could just go around doing minor work on abandoned properties and filing liens that the bank would have to pay off down the road.

[urbanrealtor]

SDR, that is a good model for thinking about it and good model for addressing the issues involved. The only caveat I would add is that generally title companies have records a few days out of date. Sometimes the getting a title policy does not cover claims arising from events between their last update and the issuance of the policy. For example there is a trustee auction on Aug 30. On Aug 29, your preliminary report and policy are issued. The title company files were last updated on Aug 25th. There was a mechanic’s lien filed on Aug 27th.

I don’t know if there is a title policy that would protect you from this. There might be. In fact, I don’t know what the procedure is for issuing policies for trustee sales. Do you happen to know?

So I have too many unknowns here to make an actual case for the danger involved. However, it has occurred to me before that an unethical contractor could just go around doing minor work on abandoned properties and filing liens that the bank would have to pay off down the road.

[urbanrealtor]

SDR, that is a good model for thinking about it and good model for addressing the issues involved. The only caveat I would add is that generally title companies have records a few days out of date. Sometimes the getting a title policy does not cover claims arising from events between their last update and the issuance of the policy. For example there is a trustee auction on Aug 30. On Aug 29, your preliminary report and policy are issued. The title company files were last updated on Aug 25th. There was a mechanic’s lien filed on Aug 27th.

I don’t know if there is a title policy that would protect you from this. There might be. In fact, I don’t know what the procedure is for issuing policies for trustee sales. Do you happen to know?

So I have too many unknowns here to make an actual case for the danger involved. However, it has occurred to me before that an unethical contractor could just go around doing minor work on abandoned properties and filing liens that the bank would have to pay off down the road.

[urbanrealtor]

SDR, that is a good model for thinking about it and good model for addressing the issues involved. The only caveat I would add is that generally title companies have records a few days out of date. Sometimes the getting a title policy does not cover claims arising from events between their last update and the issuance of the policy. For example there is a trustee auction on Aug 30. On Aug 29, your preliminary report and policy are issued. The title company files were last updated on Aug 25th. There was a mechanic’s lien filed on Aug 27th.

I don’t know if there is a title policy that would protect you from this. There might be. In fact, I don’t know what the procedure is for issuing policies for trustee sales. Do you happen to know?

So I have too many unknowns here to make an actual case for the danger involved. However, it has occurred to me before that an unethical contractor could just go around doing minor work on abandoned properties and filing liens that the bank would have to pay off down the road.

[urbanrealtor]

SDR, that is a good model for thinking about it and good model for addressing the issues involved. The only caveat I would add is that generally title companies have records a few days out of date. Sometimes the getting a title policy does not cover claims arising from events between their last update and the issuance of the policy. For example there is a trustee auction on Aug 30. On Aug 29, your preliminary report and policy are issued. The title company files were last updated on Aug 25th. There was a mechanic’s lien filed on Aug 27th.

I don’t know if there is a title policy that would protect you from this. There might be. In fact, I don’t know what the procedure is for issuing policies for trustee sales. Do you happen to know?

So I have too many unknowns here to make an actual case for the danger involved. However, it has occurred to me before that an unethical contractor could just go around doing minor work on abandoned properties and filing liens that the bank would have to pay off down the road.

[urbanrealtor]

Question for SDR
It is my understanding that trustee auctions require substantial deposits (like 20%) and good funds within a few days. It is also my understanding that there is no inspection or contingency period. In other words, you go to the courthouse with a cashier’s check and close within a week or so.

Is this your understanding as well?
I ask because you mention a due diligence and investigation period. My understanding is that there is no such standard allowance.
If you understand differently please advise. I am curious to know if the practice on these is changing.

To Bubba:
Your post does not demonstrate understanding of current practices. Very few of existing REO sales are based on default valuations.
They are typically based on current market values (not always successfully though).

You have a point regarding rent though. It can serve as a semi-backstop to price declines.

[urbanrealtor]

Question for SDR
It is my understanding that trustee auctions require substantial deposits (like 20%) and good funds within a few days. It is also my understanding that there is no inspection or contingency period. In other words, you go to the courthouse with a cashier’s check and close within a week or so.

Is this your understanding as well?
I ask because you mention a due diligence and investigation period. My understanding is that there is no such standard allowance.
If you understand differently please advise. I am curious to know if the practice on these is changing.

To Bubba:
Your post does not demonstrate understanding of current practices. Very few of existing REO sales are based on default valuations.
They are typically based on current market values (not always successfully though).

You have a point regarding rent though. It can serve as a semi-backstop to price declines.

[urbanrealtor]

Question for SDR
It is my understanding that trustee auctions require substantial deposits (like 20%) and good funds within a few days. It is also my understanding that there is no inspection or contingency period. In other words, you go to the courthouse with a cashier’s check and close within a week or so.

Is this your understanding as well?
I ask because you mention a due diligence and investigation period. My understanding is that there is no such standard allowance.
If you understand differently please advise. I am curious to know if the practice on these is changing.

To Bubba:
Your post does not demonstrate understanding of current practices. Very few of existing REO sales are based on default valuations.
They are typically based on current market values (not always successfully though).

You have a point regarding rent though. It can serve as a semi-backstop to price declines.

[urbanrealtor]

Question for SDR
It is my understanding that trustee auctions require substantial deposits (like 20%) and good funds within a few days. It is also my understanding that there is no inspection or contingency period. In other words, you go to the courthouse with a cashier’s check and close within a week or so.

Is this your understanding as well?
I ask because you mention a due diligence and investigation period. My understanding is that there is no such standard allowance.
If you understand differently please advise. I am curious to know if the practice on these is changing.

To Bubba:
Your post does not demonstrate understanding of current practices. Very few of existing REO sales are based on default valuations.
They are typically based on current market values (not always successfully though).

You have a point regarding rent though. It can serve as a semi-backstop to price declines.

[urbanrealtor]

Question for SDR
It is my understanding that trustee auctions require substantial deposits (like 20%) and good funds within a few days. It is also my understanding that there is no inspection or contingency period. In other words, you go to the courthouse with a cashier’s check and close within a week or so.

Is this your understanding as well?
I ask because you mention a due diligence and investigation period. My understanding is that there is no such standard allowance.
If you understand differently please advise. I am curious to know if the practice on these is changing.

To Bubba:
Your post does not demonstrate understanding of current practices. Very few of existing REO sales are based on default valuations.
They are typically based on current market values (not always successfully though).

You have a point regarding rent though. It can serve as a semi-backstop to price declines.

[urbanrealtor]

hey Rus

The irony in the situation that you describe is the importance most people (agents included) put on asking price. The asking price of a property only serves one purpose. It is an advertising tool. If it is not drawing offers, it is a non-functioning tool and needs to be adjusted.

The strategy you describe is most effective when there is a relative disconnect between buyers and sellers. In that case sellers can become frustrated more easily and be willing to opt for speed over financial prudence. In the case I described there was some element of that happening.

Some buyers really think that because the market favors them, they should just knock 10% off any asking price. This is dumb. Sometimes knocking 20% off is a good idea and sometimes adding 10% is a good idea.
For example, a 2 br condo in North Park listed for 300 is a case of the former and a house in Kensington listed for the same is a case of the latter.
A buyer really needs to call his own shots and make decisions based on fundamentals.

On a personal (and cynical) note:
Everyone thinks they will be the one who gets the crazy deal. This is always unlikely. The vast majority of deal are within 1 standard deviation of sheer market. Hoping to be outside that deviation is like hoping to be the one freshman assigned to the girls’ dorm.

[urbanrealtor]

hey Rus

The irony in the situation that you describe is the importance most people (agents included) put on asking price. The asking price of a property only serves one purpose. It is an advertising tool. If it is not drawing offers, it is a non-functioning tool and needs to be adjusted.

The strategy you describe is most effective when there is a relative disconnect between buyers and sellers. In that case sellers can become frustrated more easily and be willing to opt for speed over financial prudence. In the case I described there was some element of that happening.

Some buyers really think that because the market favors them, they should just knock 10% off any asking price. This is dumb. Sometimes knocking 20% off is a good idea and sometimes adding 10% is a good idea.
For example, a 2 br condo in North Park listed for 300 is a case of the former and a house in Kensington listed for the same is a case of the latter.
A buyer really needs to call his own shots and make decisions based on fundamentals.

On a personal (and cynical) note:
Everyone thinks they will be the one who gets the crazy deal. This is always unlikely. The vast majority of deal are within 1 standard deviation of sheer market. Hoping to be outside that deviation is like hoping to be the one freshman assigned to the girls’ dorm.

[urbanrealtor]

hey Rus

The irony in the situation that you describe is the importance most people (agents included) put on asking price. The asking price of a property only serves one purpose. It is an advertising tool. If it is not drawing offers, it is a non-functioning tool and needs to be adjusted.

The strategy you describe is most effective when there is a relative disconnect between buyers and sellers. In that case sellers can become frustrated more easily and be willing to opt for speed over financial prudence. In the case I described there was some element of that happening.

Some buyers really think that because the market favors them, they should just knock 10% off any asking price. This is dumb. Sometimes knocking 20% off is a good idea and sometimes adding 10% is a good idea.
For example, a 2 br condo in North Park listed for 300 is a case of the former and a house in Kensington listed for the same is a case of the latter.
A buyer really needs to call his own shots and make decisions based on fundamentals.

On a personal (and cynical) note:
Everyone thinks they will be the one who gets the crazy deal. This is always unlikely. The vast majority of deal are within 1 standard deviation of sheer market. Hoping to be outside that deviation is like hoping to be the one freshman assigned to the girls’ dorm.

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