Archive for March, 2009

Descriptive Terms in Real Estate Ads – More Definitions

Tuesday, March 24th, 2009

If you are buying or selling a home, the chances are good you struggle with the meaning of descriptive real estate terms. Here are explanations and definitions for more terms.

“Shed Dormers”

These are often seen in Dutch colonial style houses and are flat roofed dormers. Sometimes these dormers are single windows, but often they are two or three windows side by side with one flat roof.

“Blind Dormer Window”

Sometimes builders construct fake dormer windows to add architectural interest to new houses. They are at attic level but can’t be seen from the attic because the roof of the house covers access to them.

“Oversize Garage”

Ads often say how many cars a garage will hold. Then they add the word “oversize” as in “oversize 2-car garage.” What is usually meant is that there is room for storage, or a work bench in addition to space for the cars. Occasionally it simply means you can open a car door wide enough to actually get out with both cars in the garage!

“Gourmet Kitchen”

This phrase is intended to convey the idea that a very good cook can happily work here. That may or may not be the case, but it does usually mean that the kitchen is fairly large and attractive.

“Great Room”

I’ve seen this used in two distinctly different ways. The first is to describe a living room, dining room, and kitchen in a very open floor plan. The area typically has a high ceiling. The second way I’ve seen it used is when what we’d normally call a family room has a high, often coffered, ceiling, a fireplace with a dramatically massive mantle, and perhaps an upstairs balcony overlooking it. I think this may stem from the idea of a “great hall” in old English houses.

If you can get the verbiage down, you’ll be way ahead in the real estate game. Look for future articles on this subject or visit our site to read more terms.

Raynor James is with the FSBO site -http://www.fsboamerica.org – FSBO homes for sale by owner. Visit our home buying page – http://www.fsboamerica.org/buyer.cfm – to view and buy homes, houses, condos, land and real estate.

The Ultimate Short Sale Secret

Saturday, March 7th, 2009

Buying foreclosures can be extremely profitable for real estate investors. However, most of these homeowners are mortgaged to the hilt. They have no equity, and big loan payments. In fact, many actually owe more than the property is worth!

Most investors will walk away from these deals because they see no obvious profit. However, you can “create” your own equity by negotiating a “Short Sale” with the bank or lender.

Why Short Sales Don’t Work

However, even experienced investors fail to create successful short sales, because they do not know the most important secret of all when doing short sales. Without this secret, an investor with the greatest negotiating skill will fail. Without this secret an investor armed will all the right paperwork with fail. And without this secret, even an investor with an air-tight case of low value including repair estimates, etc. will fail.

It’s not that negotiating, paperwork, and a convincing case are not important. It’s just that you’ve overlooked, the most important element that lenders use to determine what they will take for a property in default. It is therefore

The Ultimate Short Sale Secret

Ok, I won’t keep you in suspense. Here’s the secret: In order to get big discounts from a lender on a property facing foreclosure, you must control the Broker’s Price Opinion. (BPO).

What is a BPO? In short, it is a value appraisal. When a short sale package is submitted to the bank, they send out a real estate agent or Broker to the property to judge its value.
The broker or agent handling the BPO is working with the bank. Their job is to simply visit the property and give their opinion on its value “as is”.

And here’s the key: it’s a broker’s price OPINION! And since opinions are subject, you have the ability to Influence that opinion. Learn how to do that and you can create $10,000’s in your bank account with little effort.

Step 1: Do Your Own Research

Before you’re ready to influence the BPO, you’ll have to start out with doing your own research and preparing your short sale package effectively. What should you include?

By this time, you should have already done a walk-through of the property. If you have not done so already, inspect the property (preferably with a home inspector or real estate broker of your own) and gather the following: