October 25, 2010
Waitin' On the World To Change
Let's face it - buying bank foreclosures is an ugly business. Not ugly in terms of the people we deal with or the processes we employ, but ugly with regard to the actual properties. Some aren't too bad, most are downright scary.
Over three months ago, we bid a small package of properties in upstate New York. The seller didn't much care for our pricing, so we shrugged it off and moved to the next deal on our plate. Three months later, we are contacted by the same seller, ready to make a deal if we can just come up on our pricing a touch. Whoa, Nellie....hold on a minute!
In those three months, property taxes (which were already delinquent on a few of the properties) became more delinquent, new tax installments came due, and winter is literally knocking on the doors of these properties. And the seller wants us to INCREASE our prices???
So what has changed since our initial bid? Well, since we buy properties via Quit Claim Deed, we would now be liable for more in property taxes than we would have been three months ago. We also would have had time to make necessary repairs to the properties in the warm summer and autumn months. Winter doesn't really bode well for repairs, especially outdoor repairs, and the first thing we'd need to do is winterize the houses for the notoriously severe winter weather this part of the country receives.
So, while this seller keeps on a' waitin...(waiting)...waitin' for the world to change, the values of their assets continue to plunge with the mercury in the thermometer.
Sellers - unless you are ready, willing, and able to put even more money into your distressed properties to fix them up, and bring all those delinquent taxes current...you simply aren't going to get more money later as opposed to now. Essentially, the longer you wait, the more it will cost you! Weather-related damages happen, vandalism happens, and the taxman keeps pilin' it on as well.
If you have some properties sitting around getting more distressed by the day, stop waitin' on the world to change...change your way of thinking and call us today!
Make it a great week.
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