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200 East Edgewood Drive Friendswood, TX. 77546 Phone Direct: 832-372-6388 Fax: 281-692-0817 Licensed Texas Real Estate Broker # 0536837
James Potenza, ABR®,EBA REALTOR ® Broker/Owner Relocation Specialist Exclusive Buyer's Agent Pearland - Friendswood - Manvel - Clear Lake - League City - Seabrook - Webster - Kemah - Alvin - Houston - NASA
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REO-Watch
Real Estate Owned
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Pearland, Friendswood, Clear Lake Area Foreclosures, REOs, and Short Sales.
Sign up for the FREE Foreclosure list below
Banks are not in the business of owning Real Estate.
They are overwhelmed by the current foreclosure market and need to sell their REOs fast.
Many homes are selling way below market value.
Your Foreclosure TEAM
Buying an REO is very different than buying a home the traditional way. There are risks associated with buying a property "as-is" and without any disclosures. You need to assemble an experienced team of Real Estate professionals, starting with an experienced Foreclosure Buyer's Agent. Some foreclosures can be a money pit and cost you thousands of dollars after your purchase while some just need a few minor repairs.
Get QUALIFIED
In order to be able to have your offer even considered, you will need to get pre-qualified by a mortgage lender (assuming you will not be paying cash). You will need a pre-qualification letter stating that you are qualified to purchase a home up to or above the offer price on the home. Most times, banks request that you go through their internal pre-qualification process to ensure you can buy the home.
RESEARCH the Property
James Potenza will help you assemble your Real Estate team to find a truly good deal, starting with overseeing the inspection process and doing a complete market analysis. You will also need to know the ARV (After Repair Value). Banks calculate this into their strategy when they put the home on the market. They usually know what repairs are needed and market the price of the home accordingly. Some repairs only include carpet and paint while others are much more involved and costly. You should know what the ARV of a home is BEFORE making any offers. You will also need to consider that your lender will not usually allow you to borrow more money than the house is worth. Unless, of course you can prove to your lender that the ARV is more than your loan amount. Then, your lender could make you sign an affidavit stating you will make the repairs. If there are many structural repairs needed, you might have difficulties getting insurance unless these items are repaired before you close. In some cases, your insurance company will allow you to sign an affidavit stating that you will have the items repaired by a certain date after you close. James can help you determine what structural repairs are required by most lenders and insurance companies.
James does his market analysis the same way a Real Estate appraiser would do. He finds as many comparable homes in the same neighborhood that have recently sold and meticulously compares each aspect of the homes. An average price per square foot is derived from the list of comparable homes sold but it does not stop there. Some homes sell at a higher price per square foot than others. Some homes have been completely updated or have more amenities than others. So, a straight up price per square foot analysis only gives you an average market value. James digs deeper into the actual market value of a home by adjusting for the true marketability of the home by adjusting for home conditions and amenities and other features that can affect the true market value of the home. James also understands the TRUE value in upgrades and repairs. Some home improvements can increase the value of a home while others do not. James can counsel you on each home improvement item that will give you the best bang for your buck.
DELAYS
When Buying an REO, you must be prepared for delays. Banks only do business during the week. The loss mitigation department is usually overwhelmed and their response time can be long. Before you decide to pursue foreclosures, make sure you are in a position to wait a few months or more before taking possession.
Making the OFFER
Be prepared to compete with other offers. The really good deals will have multiple offers to contend with. You need to be extremely prompt and organized when presenting a competing offer. Usually when the banks recognize a multiple offer situation they will ask for the BFO (Best and Final Offer) from all parties. They don't want to take the time to counter any offers. The bank sets a deadline for all offers to be sent in and they choose the most attractive offer. Making an offer more attractive is James' specialty. Sure the price is one of the biggest deciding factors in getting the offer accepted but there are many other tactics to use to make the offer more attractive. Utilizing an experienced and organized Foreclosure Buyer's Agent is critical to getting your offer accepted.
Be the first to grab the good deals. Get on the Pearland REO-Watch list today !
Plus, you will receive the monthly Houston area Market Report, FREE.
James Potenza will be able to show you the homes of interest and guide you every step of the way to buy a Foreclosure in today's Real Estate market.
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Colossians 3:22-24
Ph: 832-372-6388 OUR SERVICES PEARLAND FRIENDSWOOD
Information About Brokerage Services
Pearland, TX
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