“Hi Gary, We would like to find something before we sell, so we are not left with nothing. I don’t believe what we want exists in our price range, but perhaps you can tell us. Our requirements are…”

Answer:
To be realistic, you face some big challenges:

1. Few sellers (and no bank selling a foreclosure) will take an offer contingent on the sale of your home.
2. I can’t say what you want is impossible to find, but it may be.

Here’s my best advice:

Step 1: Look hard to determine if what you want exists
Step 2A: If it doesn’t exist, change your criteria or give up
Step 2B: If it does, then put your home on the market contingent on being in the position to close on the home you want
Step 3: Get your home in escrow
Step 4: Make an offer on a home contingent on closing your escrow. Remember, foreclosures are out as banks will not accept this contingency.

Hope that helps…

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“I’m looking at a home that needs lots of work. Is it possible to get a carpet allowance so I have some of the money to take care of the work?”

Answer:
Great question.

It amazes me that every few weeks a supposedly professional real estate agent will send me an offer asking for a “carpet allowance”.

Lenders do not allow credits for “carpet allowances” or any kind of repair or upgrade. Lenders only allow credits for actual closing costs. You can’t call it anything else.

Possible exception: VA allows the seller to pay off some of the buyer’s debts.

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“Can I just sell my home As Is and not have to make any repairs?”

Answer:
Try this fun game:

Ask your significant other, “Do you promise you won’t get mad if I tell you something?” If they agree, then say, “Those pants make you look really f—a—t.” After the yelling subsides and you’ve slept on the couch a couple of nights, ask why they broke their promise. Their response will be, “Sure I promised, but I didn’t know you were going to say THAT.”

So if you can’t trust your significant other to keep a promise without knowing the details, why would you trust a stranger?

My point:

Even if you get a buyer to agree to take a home “As Is”, it’s almost impossible to legally bind them to it up front. And if they agree in good faith to buy As Is, they’ll usually ask for some repairs, saying, “Yes, but I didn’t know about these problems when I agreed.”

As Is sounds like such a simple and easy solution.

Many agents valiantly promise this to their clients, only to disappoint them later.

If you hire me to sell your home, part of my job is setting realistic expectations. I’ll advise you that making a few repairs is a normal part of selling a home today. When we get a repair request, we look it over and sensibly negotiate it. Then we offer a credit or have the repair made, and close your escrow.

By the way, there’s another downside to marketing your home As Is.

“Hmmm, what’s wrong with the home that they don’t want to fix?” wonder many buyers and their agents. Logical or not, I’ve seen buyers pass on a home just for this reason.

I’d like to tell you the magic bullet is just saying, “Sold As Is.” But it isn’t. If it was, everyone would do it.

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“I’ve made seven offers on foreclosed homes and lost every one. I’m getting an FHA loan. Do you think that’s the problem?”

Answer:
Yes.

FHA loans are an issue for 2 reasons:

First, we’re seeing more and more FHA appraisers call for repairs to be done to make the loan. This causes either A) unplanned expenses and closing delays for the seller or B) the sale to cancel.

Banks selling their foreclosures loathe both possibilities.

Second, FHA has become the dumping ground of hard-to-finance buyers. Too many marginal mortgage brokers try to get FHA loans for marginally qualified borrowers. And many of these people are denied on day 44 of a 45-day escrow, canceling the sale.

Banks selling their foreclosures loath that too.

So after a bank has say, 1,000 sales of their foreclosed homes have delayed closings, unexpected expenses, or cancel with FHA buyers, they become a tad hesitant to sell with FHA financing.

Bottom line:

While none of my bank-clients flat out refuse to sell with FHA financing, it’s a big factor or tiebreaker when there are multiple offers. Usually the cash or 20% down conventional buyer gets the property if the prices are at all close.

So my solution is either come up with 20% or be persistent.

You WILL get a home if you keep trying.

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“Gary, with all the homes you sell, are you too busy to give me good service?”

Answer:
There’s an old saying:

“When you want something done, ask a busy person.”

My success selling homes show that I’ll probably be successful when you hire me to sell your home. Further, it gives me the resources to effectively market your home. And it means I can afford an expert staff to help me take care of you and give you the personal service you deserve.

Consider this. If you were due in for heart surgery tomorrow at 8am…

…Would you want a doctor who had plenty of time for you because he did surgery occasionally and had few patients?

…Or would you feel more comfortable trusting your future to a respected doctor with a high success rate who knows how to handle any complications?

I’m guessing you chose the latter.

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