AGAIN with the no electricity...

See this? This is a picture of Brian, Dana, and I trying to look at a house in the absolute PITCH DARK.

Apparently, light itself has become a novelty for not only bank owned properties, but also for pre-foreclosure properties.

I understand that people are losing their homes and all kinds of horrible things are happening to Sellers. I'm sure our ability to see their home, that they are losing, isn't really high up on their list of priorities. I also understand that they honestly may not be able to afford to keep electricity on at the property.

All I ask if for the common courtesy of a heads up when I make the appointment. A simple, "Daylight showings only" in the agent comments will suffice. There's no reason for me to show up at a house where we have to use the lights from our cell phones to navigate the stairs, lockbox, and house itself. It's a complete and utter waste of everyone's time, and quite honestly, pretty ridiculous.

Sure, it's good for a laugh, since hilarity always ensues, but it's not so great for selling a home.

If you're a listing agent with a home like this, please have some common courtesy for your fellow agents, and for our clients. It's a silly situation all around. It's dangerous for people who are looking, and makes our industry as a whole look bad.

Hey, Mr. Banker! Shovel your Walkway, Dude!

With the increase of Bank Owned Properties on the market right now, I send a plea to Mr. Banker...

Please, for the LOVE OF GOD, shovel your walkways and driveways.

And it wouldn't hurt 'ya any to buck up for some, let's say heat and electricity.

I set up showings for two bank owned properties that have been on the market for 90 and 185 days. The first property had no heat, and while my clients and I walked through with our breath puffing in the air, let's just say this: my clients weren't inclined to linger. We walked back to the gorgeous in-law suite only to find that the electric to that part of the house had been turned off. We think there was a jacuzzi in the completely dark bath. We're not sure.

As we entered the driveway to the second home, my truck slid sideways on the iceslick of a driveway midway up the hill to get to the home. My clients had made it to the top of the hill, but couldn't come down because I had closed off the driveway. I abandoned my truck and soldiered on up the hill, only to have my client wipe out getting out of his car and yelling down to me to forget it. There was no electricilty on - at all - at this house, so we couldn't see anything anyway.

It took me around 10 minutes to get my truck out of the driveway without sliding into a busy road, and I only did so by driving in a ditch and having pine trees rake the side of my car. I then had to park on the shoulder of the road with my hazards on and tell my clients when the road was clear, since they anticipated sliding down the drive into the road without being able to stop the car.

Since we haven't had any snow or ice since last week, I guess it's been that long since anyone, including the agent, had checked on the condition of the property.

Look, I get it. You're trying to minimize your loss. However, you're still allowing the house to be shown. In theory, you're still trying to attract a Buyer. All the basic tenets of showing a property still apply - even to bank owned properties. Lights are necessary. Access to the home is necessary. If you want people to actually take the time to look at the home, HEAT is necessary in the middle of winter.

Give me something to work with, and maybe I can actually sell your home. Whatever your pay for the minimal expense of basic courtesies for the Buyer will surely be outweighed by a shorter marketing period.

The Bank Owned Property Conundrum

To put it delicately, many of the bank owned properties need...

a little work.

However, there are wonderful deals to be found for the courageous Buyer. I currently have a home under contract around $130,000 UNDER comparable properties. Now, the home needs work, and some (but not all) of that built in equity will be eaten up by rehab costs. At the end of the day, my handy Buyer got a great deal on a home.

But, here is the conundrum...

It's very difficult to get financing for a property that is in bad condition. A tarped roof, broken windows, missing appliances, etc. will make getting a mortgage difficult. Your agent should be able to give you an idea if the property is "Mortgage-able" or not.

If the property is in such disrepair that you cannot get a traditional mortgage, you can pursue what's called a rehab mortgage. In this scenario, the mortgage company will loan you the purchase price + rehab costs, up to 80% of the estimated, post-rehab appraised value. These loans are pretty involved. You'll need a signed contract with a licensed contractor who can provide a resume and references to the bank. The bank will be involved in your rehab process, and may need to inspect the work prior to releasing the contractor's payment, etc. They may require permits be secured for the work, even prior to closing on the property.

You need to assess the viability of a regular mortgage vs. a rehab mortgage BEFORE placing an offer on the property. Due to the more complicated process in securing a rehab mortgage, you'll need to build in additional time to obtain the mortgage commitment and settlement.

Are you a courageous Buyer? If so, I'm your girl. I'll find you the deals AND the financing for them.