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FREQUENTLY ASKED QUESTIONS

If you don't find the answer to your specific question or would like additional information, please feel free to send me an e-mail at pamela@ask-pamela.com.

1. Q. How can I find out about the good deals before everyone else does?

   A. First you will want to define what a "good value" means to you and what type of property you are looking for. If you want to be one of the first people to see the new listings, it's best to have a good business relationship with an agent who is well informed about the current inventory in the neighborhood that you are focused on. Additionally, some of the best buys are properties that have been on the market for awhile. Those sellers should now have a better understaning of market conditions and may be more flexible in negotiations.

   If a buyer informs me that they are very concerned about purchasing at an advantageous price, I strongly recommend that they expand their field of choices and be willing to make offers on two or three properties as opposed to falling in love with one and then attempting to negotiate their way to a below market price. This is especially true if you are looking at Short Sales. The property simply may not be available for purchase at the listed price.

2. Q. What's a Probate Sale?
   
   A. A Probate Sale occurs when someone dies and leaves property that must be sold. Probate sales traditionally occur when the deceased did not put their properties in a trust and did not name a specific person or entity to inherit the property however this is a very simple description of a detailed legal process.
   
   You could be the successful bidder for a property that is sold through the probate court. Court mandated requirements make this process more exacting and detailed and some buyers do not want to participate in the probate sale process. Many, but not all, properties sold at probate sales are fixers.

3. Q.What’s an REO?
   
   A. REO stands for Real Estate Owned. These properties are sometimes referred to as “Bank Owned Properties”. These are properties that are owned by banks and loan servicers after a foreclosure. Most of these properties will eventually be listed with an agent and offered on the multiple listings service. Some banks are very aggressive about pricing these properties to sell quickly. Others are not. More on REOs

4. Q. What’s a Short Sale?
   
   A. Some properties are offered as a “Short Sale”.  This indicates that the owner and their agent are marketing the property at a sales price that will not be sufficient to pay off the lender in full and pay closing costs. For this reason, a Short Sale is always subject to approval by the lender. Lenders will make their decision based on a number of factors including the appraised value of the property and the borrowers financial situation. The lender will order a Broker Price Opinion (referred to as a BPO) and/or appraisal to determine the value of the property. More on short sales
   
   
5. Q. Are Fixer Uppers worth the trouble?
   
   A. Perhaps you are willing to buy a property with an outdated floorplan, structural problems or other significant issues. Serious construction defects definitely narrow the field of potential buyers. If you are willing to buy a property that looks horrible but has great potential, you will have a somewhat smaller group of competitive buyers to contend with. The reduced sales price for a fixer may, or may not, make sense if you are going to spend significant money to remodel. Properties in impeccable, move-in condition traditionally command a premium.
   

DISCLAIMER - Please note that I am a real estate broker and not an attorney. Information on this website is not to be construed as legal advice to any person or for any situation. Please consult with your attorney or a recommended attorney in your area for legal advice.