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Jason Nedrow
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    Top 21 Regional Producer for 2005-2008
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Archive for April 2009

It Is a Crazy Time For Lending

Wednesday, April 29th, 2009

Wow, it is a crazy time for lending. There is money available but if you are looking at investment property you better have some capital to work with. I am working on closing two income properties that total an assessed value of approximately 200k. We are purchasing these properties for 160k out of probate. They are great rentals and have existing tenants in the homes. However, the bank even with great credit, has required 25% down and won’t allow the seller to pay more than 2% in closing costs. That is a lot of money out of pocket to purchase something that far below market value but it is the new Fannie Mae Guidelines. It is just something we have to deal with. In this environment you need to be creative with your financing. There are tons of deals out there but you may limit yourself as far as what you capital availability is. If you would like help thinking outside the box and structuring deals please feel free to give me a call or visit my website. There are several ways to overcome this capital requirement you just have to be creative. Maybe I can help you think “outside the box”.

Difference Between Realtors?

Thursday, April 23rd, 2009

Is there really a difference between Realtors? Are you kidding, of course there is.  In any business there is a difference in the professionals you employ.

Did you know that approximately 1% of Realtors do 90% of the business?  Why does that matter to me?  Well you are trusting your biggest asset to be sold by someone you haven’t even checked out?  Would you do that with your retirement?  Why would you trust that type of transaction with anybody else but the best? Ok, so here is what makes a Realtor the best. You should never judge on commission.  You should judge on competency.  You should ask for documentation along with references.

If a “star Realtor” cannot provide references or documentation of sales ability you should never entrust your home to them.  You should also ask for a complete and concise marketing plan.  Do they market on the internet, and how do they market on the internet.  The reason this is important is because over 80% of home buyers are looking online for their next home.  That would probably be an integral part of the marketing plan.  Don’t you think?  Just because they have a website does not mean they are internet savvy.

Any Realtor worth their commission will have an extensive line of marketing encompassing several different avenues in which to market your home. There is never one “secret” marketing outlet that will work to sell your home.  You want the broadest exposure you can receive.

Another myth in the real estate industry are those wonderful home magazines.  Although, they do have some value, most Realtors will tell you they market in them to either build branding or to appease their seller.  I guess the question for you would be do I want my home sold or do I want to see it in a pretty magazine that is most likely outdated and will likely never generate a buyer.  If you have questions on how to market your home, a market evaluation, or would like a list of my “recent” references please visit my website or give me a call at 405-922-2968.

The Real Estate World Is Getting Crazy

Thursday, April 16th, 2009

Well if you don’t know it is getting crazy in the real estate world right now. It is definitely the spring season and with the low interest rates and government stimulation the buyers are coming out in groves. Don’t be fooled if you are a buyer in the Norman or Moore Oklahoma market. The likeliness of you finding the “deal” is becoming more uncommon. I just had a home here in Norman that was priced at the top of the market.

In other words, we probably can’t get it appraised for more that we had it priced at. Within five days and 20 showings we had four offers. Although the realtors were told to bring their best offer their buyers still thought they could make a low offer. Needless to say there was only one that came to the table with their game on. We rejected the other offers and accepted the one that was acceptable to the seller. That’s right no counteroffers.

What is the lesson to learn from here? If you are looking at a home, and are very excited about it, so are other buyers. If you are told that you are competing, make your best offer. You have protection from overpaying. You simply cannot finance a home that will not appraise. At that point you can negotiate with the seller on the difference in price and appraisal. Do not be scared to pay for what you want….. If you are a buyer or seller and need expert advice please visit my website.

As The Spring Real Estate Markets Starts to Heat Up

Friday, April 10th, 2009

Opportunities like the current event come once in a lifetime.  As the spring real estate markets starts to heat up there are still “steals” out there.  However, the homes that I am referring to may lack some of the features a typical buyer would want.  The pricing will reflect that.  Otherwise, the market is starting to gain momentum.  If you are thinking of purchasing a new home you better get a move on.  The reason is while everyone has talked about the declining housing market, cost of building has gone up.

Your best chance of making a deal is on existing “spec” homes.  The builders are selling for a discount and cannot build the same house for the same cost.  This will not last long.  Once these homes are absorbed we will see a significant difference between new construction and existing homes.  This is unlike the market we seen in 05′, 06′, 07′.  There are still some of these spec homes available now but I don’t see it lasting longer than around August.  If you would like a list of the homes I believe you can make a GREAT deal.

Homeowner Financing

Friday, April 3rd, 2009

If you would like to differentiate yourself from the competition, and are in some sort of equity position you should possibly consider owner financing.  If you position your house in this arena you will be surprised at the buyers that come out of the woodwork.  Although every case is different here is a basic example of how to accomplish this and make more money than you would on your local CD at the bank.

Free and Clear:  Let’s say Rob owns his home “free and clear” – that is that he owes no money on the home.  Rob agrees to sell his property to Angel for 100,000. Rob simply sets up the terms with 5% down and owner financing for the additional 95%.  This can be a basic promissory note executed by Rob and Angel.  From this position Rob finds a local title company he likes and set up a closing.  The promissory note is tied to the mortgage and filed with the county which gives Rob the right to foreclose if Angel breeches contract.  It is really quite simple and positions you as the bank.  Have you ever seen a  truth in lending statement?  Notice, the amount of money the bank makes off of a Home loan?  Why not position yourself to make this money rather than taking what the bank will give you on deposit?

This is just one option on owner financing.  All cases are different.  However, this can be done with partial equity and full equity.  For a specific question please email me at Jason.nedrow@century21.com or visit my website.

Market Recap

  • Avg. Sales Price: $129,441 *Reflects Entire Norman Area

  • Avg. Days on Market: 80

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