Are Real Estate Owned Properties A Good Investment For First Time Homebuyers? – Libby Sosinski
On this episode of The Closing Table, we sat down with Libby Sosinski!
To watch the full episode, check it out on YouTube below. In the meantime, here’s a summary of the conversation…
Here’s what you missed from Libby Sosinski…
The conversation began with Libby introducing herself beyond the realm of real estate. A proud dog and cat mom, she dedicates her time to caring for six dogs and four cats, with four of the dogs facing various handicaps, including blindness, a physical disability, and diabetes. Despite the challenges, the care and maintenance of her pets bring immense joy to her life.
Now, shifting the focus to Libby’s current market, she is situated in Pittsburgh, Pennsylvania, a city synonymous with the Steelers and a strong sports culture that extends to hockey with the Penguins. Describing the economic landscape, Libby notes a significant increase in the average home purchase price over the past couple of years, rising from $225k to $295k. Pittsburgh’s market stands out for its unique emphasis on charm over square footage; a smaller house with character often outperforms a larger neighboring property. Charm holds considerable weight in the Pittsburgh real estate scene.
When asked about an unconventional client acquisition, Libby shares her affinity for garage and estate sales. Particularly with estate sales, she proactively inquires about the fate of the house, leading to several listings obtained by sharing her business card with the owners. While Libby benefits from having bank clients, forming the foundation of her listings, she has also engaged in estate sales for individuals and investment properties tailored to the needs of flippers.
Libby’s real estate journey has brought her face-to-face with properties harboring captivating histories or unconventional backgrounds. When asked about her experiences leveraging such intriguing aspects to generate interest, she reveals encountering properties with undisclosed murder histories. Despite Pennsylvania’s lack of disclosure requirements, the close-knit nature of neighborhoods ensures that this information circulates among residents. Libby vividly recounts one assignment where, years after a murder occurred, the house remained frozen in time, preserved in a somewhat eerie state.
Shifting gears, Libby’s impressive rankings and accolades in real estate prompt a discussion on challenging transactions. She shares a particularly memorable incident from a few years ago involving a high-end listing in Fox Chapel valued at $750k. During her routine inspections, she discovered her sign removed and the lockbox missing. Investigating further, she found a person who believed the property rightfully belonged to his family. This led to a complicated eviction process involving police intervention, movers, and subsequent legal entanglements. Libby humorously reflects on the ongoing saga of court appearances and postponed testimonies, spanning three years.
Delving into her expertise with REOs (Real Estate Owned), Libby traces her roots back to her early days in real estate. Starting as an assistant for a professional specializing in foreclosures and REOs, she gained valuable insights into the intricacies of these transactions. When her mentor exited the field, Libby, armed with her knowledge, took on unclaimed listings, gradually building trust with banks. Today, her portfolio boasts 20-25 different bank clients, a testament to her resilience and proficiency in navigating the challenging landscape of REOs.
Reflecting on her initial foray into real estate, Libby candidly recounts the errors made during her maiden transaction. In her eagerness to close the deal, she presented a cash offer while simultaneously requesting seller assists without realizing the nuances. Unfamiliar with the technicalities, she mistakenly assumed seller assists could be applied to cash deals. The revelation came from the listing agent, who clarified that seller assists were intended exclusively for financing. Libby acknowledges the inevitability of mistakes in a career but embraces the label of a “professional mistake fixer,” emphasizing the invaluable lessons learned from each misstep.
The conversation wraps up with Libby contemplating the prospect of entering today’s competitive housing market, considering her accumulated wisdom and leveraging contemporary resources. Drawing from recent experiences with clients navigating a challenging market, she expresses empathy for first-time homebuyers facing fierce competition, multiple offers, and soaring prices. Recounting a recent client’s arduous journey, involving a year-long search and several lost bids despite aggressive strategies such as bidding over asking price and waiving inspections, Libby emphasizes the difficulty of securing a home in the current environment. If faced with the choice today, she would opt to delay entering the market until conditions become more favorable, highlighting the persistent challenge of limited inventory and intense competition even amid higher interest rates.
Check out Libby Sosinski:
Facebook Business Page: https://www.facebook.com/libbysosinskiKW
Faceboook: https://www.facebook.com/libby.sosinski
Instagram: https://www.instagram.com/libby.sosinski.kw
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