Do your homework when it comes to tax liens
Q: Bob, we have been involved with buying tax liens for many years. I liked your “CAUTION: This is a high risk investment” in last week’s column.
Every year there are so many innocent potential buyers here in Lee County that expect to earn 18 percent, as advertised in the tax delinquency ads. When the auctions were held in Fort Myers, by the end of the first half hour, most potential buyers had left the auction, disappointed. The Lord only knows what they do now that the auction is on the internet, there are frequently over 1,000 bids for an item. In about the last 10 years with over 1,000 unpaid taxes usually were usually bid down to p of 1 percent. My concern is that your suggested 10-12 percent may mislead, rather than educate.
John L.
A: John, thanks for the e-mail and the update about my last column about Tax Liens (just keep reading the column). I got those figures from friends/brokers from several states from Florida to California. I purchased one in California. It has, apparently, changed a bit since then. That is why I used the word “CAUTION!” Thanks for the input, I can always use more (and learn from readers) information good or bad. In this market do your homework (as John mentioned) when trying to purchase Tax Liens. It isn’t as good/easy as in the past.
Q: Bob, we are thinking( going to do) about purchasing /selling, any suggestions about either or both ?
Tom
A: Tom, better home buying and or selling in this current market (in my opinion of course) are as follows: Buyers should drive a hard bargain, starting the bidding AT LEAST 15 percent below a homeowner’s asking price- consider buying from a builder (my real estate friends will not like this), many are offering substantial upgrades and low cost mortgages. Sellers should price a home right-consult (my real estate friends will like this) consult a qualified agent or visit open houses at homes like your house, decide what you would pay, then price yours accordingly. Hopefully the Realtors CMA will be close. If you don’t want to sell at today’s price or what the market will bring, think about (if you are in that position) renting out your home until the market for sellers improve.
When selecting a real estate agent, look for someone who has at least three years of experience in your market and who averages (depends on your area) 12 transactions a year- the more, the better. Avoid- high profile agents, such as the ones you see advertised on large billboards- you’ll likely spend a lot of time talking to their assistants.
Ask for client references. Pick someone with good pricing skills. Ask for a list of homes that the agent has listed and sold in the past year, with both listing and final sales price for each. Commissions are negotiable, but don’t opt for a less experienced associate- you may not get top dollar for your home. In this market and with the prices so low the agent isn’t making that much of a commission anyway.
Note: Look at agent’s listing companies, too. The best have great Web sites and other resources, such as good promotional advertising, a strong base of other agents who will add to your home’s listing exposure, and one-stop convenience for procuring mortgages, titles, etc.
Have a real estate question? Write, call, fax or e-mail:
Bob Jeffries, Realtor,
Century 21 Birchwood Realty, Inc.
4040 Del Prado Blvd., Cape Coral, FL 33904
239-540-6659 Office 239-542-7760 Fax