Agency Relationships

Michigan Law requires that we discuss and establish the type of Agency Relationship that best suits your individual needs, at our very first meaningful contact (such as a Bank Owned Property Tour). My associates and I, in conjunction with our brokerage, CENTURY 21 Town & Country, would like the opportunity to discuss with you the possibility of becoming your Buyers Agent. As such, we will be representing your interests in the purchase of your real estate, and not the interest of the bank or seller. This gives us the opportunity to negotiate the best possible deal on your behalf. The exception to this would be if you choose to purchase property which is listed for sale by our firm, CENTURY 21 Town & Country. Once we have mutually decided to work together under a Buyer Agency Agreement, and you then decide to purchase a home listed by our firm, we will proceed under a disclosed Dual Agency Agreement, in which any information that you have provided, will remain confidential. Under a Dual Agency Agreement, we have an obligation to provide equal treatment to all parties, complete disclosure, and diligent effort to uphold all contractual agreements. Agency information will be provided to you upon your first meeting with us. If you are already under an Exclusive Buyer Agency Agreement with another firm/agent, we cannot interfere with that relationship unless you provide us with a written request to proceed with representation by our firm. Please note that, regardless of whether our firm is acting in the capacity of a Buyers Agent or as a Seller’s Agent, should you decide to join our tour and we introduce you to a property that you then decide to purchase, you would be required to work with our team, and not your current brokerage, to prepare all contracts and negotiate the transaction.

Pre-Approval Process

Most real estate sellers and their representatives will not look at your offer with much confidence if it is not accompanied by a pre-approval letter. The bank’s asset managers will not look at your offer at all without one, in fact, many now require that you obtain a pre-approval through their own financial institution, so as to confirm your strength as a buyer before proceeding to negotiate with you. If that is the case for the home that you choose to bid on, be advised that you will still have the freedom to take your mortgage business anywhere you like, as long as you have met the bank’s requirement. A very valuable member of the Bank Owned Property Tour Team is Deanna White, a Senior Mortgage Banker with Cambridge Mortgage Corporation. Deanna has been in the mortgage business since 1980, and has worked in every aspect of the industry. Her depth of experience and her energetic "can do" attitude are the perfect combination of qualities to get the job done. Deanna will not stop at just getting you pre-approved, she will take the process to the next level. She will arm you with a full-blown mortgage approval, which will provide the highest level of confidence possible to the seller and/or seller’s representative. You’ll be ready to close before the seller is! Best of all, she will provide this to you free of charge. Apply today, so you too can shop with confidence.

Submitting Offers

Mike Galinac and the Bank Owned Property Tour Team, have drafted, negotiated and closed hundreds of real estate transactions, and have worked with a multitude of bank owned properties and their managers. When the time comes for you to "pull the trigger" on your real estate purchase, your mission will become our mission. Time is of the essence when you have made your decision. One extra day or even one extra half day can often be the difference between getting the house and losing the house. We will walk you through the entire contract, addressing all of your specific requirements as well as any requirements that the bank has set forth. For your complete protection, you should consider hiring an attorney to advise you with regard to specific bank requirements, as many banks have drafted their own contracts and attachments designed to cover their own interests and waivers of liability. State and Federal mandates come in to play as well. If we have mutually agreed that CENTURY 21 Town & Country and the Bank Owned Property Tour Team will represent you as your Buyer’s Agent, then we will go to work to negotiate the best possible deal for you, both in price and in terms. We will do everything in our power to expedite the process, but be aware that negotiating with some of the banks can be a slow, frustrating process, mostly due to the backlog of files and offers that every asset manager seems to be dealing with these days. You must also keep in mind that the very best opportunities available, even in a slow real estate market, can attract interest from more than just one buyer. Be careful not to submit an offer that is so low that it could not be taken serious by the bank, and may jeopardize your chances of securing that particular investment.

Home Inspections

Despite the fact that almost every bank addendum to the sales contract spells out very clearly that you are purchasing the home or condo in "as-is" condition, you will always have the right to perform a home inspection within a specified period of time, usually 7-10 days from acceptance of the contract. It is HIGHLY recommended by CENTURY 21 Town & Country and the Bank Owned Property Tour Team that you have any and all properties inspected by a qualified home inspector. Even if you have extensive knowledge of the inner workings of a home, two sets of eyes are better than one.  If you know an inspector that you trust, or know somebody who has used an inspector that they were happy with, you should consider hiring that individual. If you need assistance in locating a qualified, competent inspector, we will provide you with a list of names of inspectors who have a good track record with our past clients. Either way, don’t miss this opportunity to gauge any initial expenses you may be faced with upon taking ownership of your newest investment. Should you become dissatisfied with the results of your home inspection, you will have the right to terminate the sales agreement or negotiate for the items that have been divulged, as long as you decide to do so within the inspection period. Remember, the cost of a home inspection is a small price to pay for peace of mind.

Earnest Money Deposits

When you are ready to submit an offer to the bank, you will be required to provide an earnest money deposit in consideration of your proposal. If your offer is accepted, your deposit will be held in a non-interest bearing trust account, in accordance with Michigan law, and will be credited towards your balance required to close the transaction. The deposit is also used as security for the seller(bank) that you will proceed with the terms set forth in the sales contract. Should it ever be determined that you are in breach of contract, the earnest money deposit will become the target of seller to compensate them for lost market time and/or potential buyers. In most cases the agency that writes the offer holds the deposit in their trust account, however there are certain banks that require their representative agency to hold all earnest money deposits.  If that should be the case, know that you are protected by the laws governing the disposition of earnest money deposits, and that we will always guide you away from putting yourself at risk of breaching your contract.

It is often possible to submit an offer on a bank owned property with as little as $500.00, however be aware that the amount of you earnest money deposit is often viewed within the context of the "strength" of your offer. The smaller the deposit, the weaker it may be viewed. A strong mortgage approval, however, will always help to overcome a small earnest money deposit. Please be aware that deposit checks are cashed right away, and not held until the transaction closes. Insufficient funds will cause the requirement of cashiers or certified funds for you to be able to continue with the transaction.