Last  post on Memphis Real Estate Buzz

Moving to http://Blog.Spake.com

Image by joespake via Flickr

If you have come to this URL – http://MemphisRealEstateBuzz.com for the last few years for my local and national real estate news and comments, thank you!  This is the last post on this blog.  No I am not giving up real estate blogging – just changing the blog’s URL and look.

I am integrating Memphis Real Estate Buzz as a sub-domain of my main site, http://spake.com.  From now on you can find my real estate posts, and hopefully other interesting posts at http://blog.spake.com.  This blog will be automatically redirected there.

Thanks for your support.  If you are an RSS subscriber, please go to http://blog.spake.com and subscribe there (all the posts from this blog are archived and searchable there).  You won’t be automatically subscribed at the new location.  You can use this link to subscribe right now.  If you would prefer to receive new posts by mail, use this link.

So, I will see you on the other side.  I will leave this site up for a while, to make sure all the permalinks to posts transfer properly to a new and permanent location.

Joe Spake is a Memphis, Tennessee based Consultant, Real Estate Broker, and Blogger. Call 901.214.5563 for a consultation or click to make a social connection.
If you enjoy this blog, please subscribe to the RSS Feed. 

If you use Google+, I have just started a brand new business page. Visit it HERE.

Plan for Sears mail order home

If you offer real estate Search on a real estate blog, it seems that the natural thing for visitors to do is Search, many times overlooking the brilliant insights of the Realtor/blogger in favor of  looking at glitzy presentations of available dream homes.

I did have a few posts that stood out from the pack in 2011.  My 2 most popular post here on Memphis Real Estate Buzz were originally posted in 2010:

1.  Your house may have come from Sears – is a primer on the Sears “kit” homes of the early 20th century, and an introduction to identifying if your house may have been shipped in on a train.

2. Memphis Lustron – Mid-Centrury steel – about one of a couple of intact, post-WWII, all-metal homes left in Memphis.

3.  Realtor Association gets deeper into politics (4/20/2011) addresses the National Association of Realtors increased political activity.

4. Practical use of QR codes in real estate (3/14/2011) – QR codes were a big topic in 2011. The 2-dimensional, mobile-scannable grids have not caught on on as much in Memphis as they have in other parts of the country, especially in real estate.

Lustron Home - Midtown Memphis

5.Ghost towns are the result of recession and the burst housing bubble (1/6/2011) -Economics, the housing bubble and the sluggish economy  have created ghost towns across America.

6.  Don’t overlook Midtown Memphis condos (7/28/2011)  Mention Memphis condos, and most people think of Downtown; however, Midtown has reasonably priced, convenient condos available.

Stick around in 2012.  I am sure there will be plenty of things happening in real estate.  The market might even improve, and I will be here to tell you about it.

One little housekeeping item:  I am trying to figure out a simple way to merge this blog with my updated main real estate site http://spake.com.  If you are an RSS subscriber, I have already addressed that.  Stay tuned, and check out the blog over at spake.com – It features re-posts from here, my other blog, and interesting real estate, social media and Memphis links.

If you have suggestions for topics you would like to see here, share your thoughts in the comments.

Joe Spake is a Memphis, Tennessee based Consultant, Real Estate Broker, and Blogger. Call 901.214.5563 for a consultation or click to make a social connection.
If you enjoy this blog, please subscribe to the RSS Feed. 

If you use Google+, I have just started a brand new business page. Visit it HERE.

This scam has been going on on Craigslist, and probably other sites for years, but it hit one of my listings yesterday.  Fortunately someone alerted me early that the listing was being offered for rent at about a third of market rent.  Of course it was a scam, perpetrated by someone off shore.  It generated 9 calls from my yard sign from people who had seen the ad and driven by the house, so, obviously, lots of folks search Craigslist for rentals and they all seemed to think they had found the ultimate deal on a rental.

I replied to the email address on the scam, and got back an email from “Kristina Kilgore” , who claimed to be the owner, written in poor English, with overseas phone numbers, the mention of Nigeria, and a Rental Application designed to get personal information.   At the end of the application, this:  ”Please do understand that, a refundable deposit of $600 MUST be put down first before receiving the keys and paper work from me as to secure the house for you while you go through.”

This scam is actually pretty transparent. It has been going on for quite a while.  Does that mean that it is successful enough that people are actually sending the deposits to foreign addresses to people they have never met,  to get a good rental deal on a property they have never been inside?

Craigslist provides scam warnings here.  Real estate listings all have a scam alert in the header which takes you to this useful information:

You can sidestep would-be scammers by following these common-sense rules:

• DEAL LOCALLY WITH FOLKS YOU CAN MEET IN PERSON - follow this one rule and avoid 99% of scam attempts on craigslist.
• NEVER WIRE FUNDS VIA WESTERN UNION, MONEYGRAM or any other wire service – anyone who asks you to do so is a scammer.
• FAKE CASHIER CHECKS & MONEY ORDERS ARE COMMON, and BANKS WILL CASH THEM AND THEN HOLD YOU RESPONSIBLE when the fake is discovered weeks later.
• CRAIGSLIST IS NOT INVOLVED IN ANY TRANSACTION, and does not handle payments, guarantee transactions, provide escrow services, or offer “buyer protection” or “seller certification”
• NEVER GIVE OUT FINANCIAL INFORMATION (bank account number, social security number, eBay/PayPal info, etc.)
• AVOID DEALS INVOLVING SHIPPING OR ESCROW SERVICES and know that ONLY A SCAMMER WILL “GUARANTEE” YOUR TRANSACTION.
• DO NOT RENT HOUSING WITHOUT SEEING THE INTERIOR, OR PURCHASE EXPENSIVE ITEMS SIGHT-UNSEEN - in all likelihood that housing unit is not actually for rent and that cheap item does not exist.
• DO NOT SUBMIT TO CREDIT CHECKS OR BACKGROUND CHECKS FOR A JOB OR FOR HOUSING UNTIL YOU HAVE MET THE INTERVIEWER OR LANDLORD/AGENT IN PERSON.

Don’t say you haven’t been warned!

For more on this type of scam, see Jay Thompson’s post Anatomy of a Rental Scam for his in-depth follow-up with the scammer.

Joe Spake is a Memphis, Tennessee based Consultant, Real Estate Broker, and Blogger. Call 901.214.5563 for a consultation or click to make a social connection.
If you enjoy this blog, please subscribe to the RSS Feed. 

If you use Google+, I have just started a brand new business page. Visit it HERE.

I have just listed this charming Victorian in the heart of Cooper Young, Midtown Memphis.  The home is celebrating its 100th birthday this year.

Check the tour

For more information go to http://923NewYork.com  or contact me directly.

Joe Spake is a Memphis, Tennessee based Consultant, Real Estate Broker, and Blogger. Call 901.214.5563 for a consultation or click to make a social connection.
If you enjoy this blog, please subscribe to the RSS Feed. 

If you use Google+, I have just started a brand new business page. Visit it HERE.

The sub-head, Couple dismiss Realtor’s warning, sees potential in foreclosure, probably made some of my colleagues cringe, but the Commercial Appeal real estate feature last Sunday reported an owner-occupant foreclosure purchase success story.  My clients got a good deal on a solid house, and overcame the obstacles I had warned them about.

Many home buyers feel that foreclosed properties offer the best “deals” in real estate, but few are prepared to deal with those 2 little words, “as-is”.  It is my duty as a representative of home buyers to point out the downside of any property purchase, as well as emphasizing the amenities and advising on value, financing, and the entire purchase process.  I write this post from the point of view of an agent who represents owner-occupants and not investors.

Purchasing a foreclosure is different in many ways from a normal sale.  If you are considering purchasing a foreclosure as an owner-occupant you need a agent who understands the processes for the different types of  foreclosures:  Bank, Fannie Mae, VA, HUD.  They are all handled differently by the sellers.

Some basic points to discuss with your agent:

Financing – Things are simple if you are a cash buyer.  You are not likely to be able to get a standard conventional or FHA mortgage on most foreclosed properties, generally because of condition issues.  There is usually no negotiation on repairs, damage, or missing items, which underwriters require to be remedied before granting a loan.   If you can qualify for an FHA loan, a good alternative is to look into the FHA 203K loan that allows you to finance required repairs and complete them after closing.  Fannie Mae’ Home Path program also has some useful financing alternatives.  Look into financing options BEFORE you start looking at foreclosures or any properties.

Value – Foreclosures often go on the market at prices comparable to recent normal sales.  The longer they are on the market the lower the price and the more negotiable the seller usually becomes.  If you are going to take an “as-is” property and go through the process, your agent needs to give you assurances that, indeed, you are getting a good deal.

The Offer – Different sellers have different processes for submitting offers.   HUD has a blind bidding process with a strict time frame and rules; VA requires using its contract which offers the buyer very few rights.  Agent experience is critical in submitting and following up on offers and guarding your rights.

Inspections – Once you negotiate a contract, you are responsible for all inspections on the property, including turning on utilities and turning them back off per seller specifications.  Be sure and complete all inspections within the time period stated in the sales contract.  Get the best inspectors you can find.  After the inspections, it’s your choice to take it or leave it.

Contractors / Repair people – For a lot of folks, do-it-yourself only goes as far as painting.  Your Realtor should be able to suggest some contractors, plumbers, electricians, etc. work with you as necessary.  It is probably a good idea to get the to have a look during the inspection period to get an idea of costs you might be facing in the future.

To be very honest,  most foreclosure transactions are pretty much of a hassle in one way or another.  So my advice is Be Patient and Be Prepared!

Good luck!

Related articles

• FAQ’s about HUD Properties (realtorkaera.wordpress.com)
• Bargain Hunters Can Make Themselves at Home in Foreclosure Segment of Metro Chicago Real Estate Market, Reports RE/MAX (prweb.com)
• Luxury home foreclosures a deal for well-heeled (planbmortgageblog.com)

Joe Spake is a Memphis, Tennessee based Consultant, Real Estate Broker, and Blogger. Call 901.214.5563 for a consultation or click to make a social connection.
If you enjoy this blog, please subscribe to the RSS Feed. 

If you use Google+, I have just started a brand new business page. Visit it HERE.