If at first you succeed, buy, buy again!

We can show you smart ways to build your real estate portfolio!

 

Our Century 21 sales associates are experts at expanding and improving real estate portfolios. We always know where to find excellent investment opportunities. So if your first investment was a success, now's the time to add on. Our Century 21 office is just the place to do it. Call today for more detail on our FREE Real Estate Investment Seminar.

 

Free Real Estate Investment Class and HUD and Foreclosure Home Tour!!

Long Term & Quick Turnover

HUD and BANK Owned Property Tour to Follow

August 21, 2010 9am -1pm

2448 Lumpkin Rd

Augusta, GA 30906

Please call ahead or register online so we can plan accordingly. Seating is Limited.

(706) 796-0106 or www.century21jk.com

 

 

 

 

real estate, real estate investment, real estate investor, augusta ga, ga, foreclosures, hud, hud homes, expert, realtor, agent, show me homes, home tour, first time home buyers, first time home buyer tax credit augusta, ga

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Pending Home Sales on a Roll, Up for Sixth Straight Month

Posted By susanne On September 1, 2009 @ 4:04 pm In Home Buying 101, Real Estate, Today's Marketplace, Today's Top Story, Today's Top Story - Consumer | Comments Disabled

HOME::Business/Strategic-Planning X Do I Need Written Goals? By J Timothy Connor J Timothy Connor Level: Platinum Tim Connor is president of Rodeo! Performance Group, Inc., an Ocala, Florida based group of facilitators, consultants, and coaches working with all sorts of businesses, ... ... Article Word Count: 514 [View Summary] Comments (0) "I've got the goals I want here in my head -- I don't need written goals!" Sound familiar? Does it really matter? What's the big deal with written goals? Believe it or not, Mark McCormack laid out a study done with students of the 1979 Harvard MBA program that demonstrates results all business owners and executives would find interesting. In his book "What They Don't Teach You At Harvard Business School" Mark reviewed the original question asked the members of that class: Have you set clear, written goals for your future and made plans to accomplish them? 3 percent of the future MBAs answered "yes". 13 percent had goals, but those goals were not in writing. 84 percent of this elite group said they had "no goals at all"! 97% of the class had no written goals, 84 percent with NO GOALS AT ALL! Interesting, huh? It gets better (worse?). Ten years after the initial questioning the class members were interviewed again: the 13 percent who had goals, even though unwritten, were earning on average, twice as much as the 84% with no goals. The 3% who had written their goals, however, were earning (on average) ten times as much as the other 97% put together. Have I got your attention yet? Focus Why the astronomical difference? First of all, written goals do a better job of focusing you on your goal, especially when they include an action plan. When you write a goal down, you'll find yourself asking, "Is this how I want to write this - is this something I can really DO?". The actual exercise of writing forces you to think more carefully about what you are going to write. It makes you turn the goal over in your mind, probably rewording it several times, and in that process of re-thinking you will find that you better clarify what you're actually planning to accomplish. So right off the bat, you have a head start on the guy who isn't writing. Application Second, written goals, for some reason, have a built-in "push" behind them. Simply put, you are much more likely to complete something you've written down than you are something you've "just thought about". Don't believe me? Think about a goal you have had in your mind for the past few years - one that you have NOT written down. How much have you actually accomplished toward that goal? You've probably found yourself starting on it numerous times, depending on either guilt or periodic enthusiasm, but more than likely you've never accomplished anything lasting with it. It's interesting, too, that putting off WRITING goals down is one of the most common forms of procrastination. Git 'R Done Now is a good time to write your goals for the year ahead, and really, how long will it take? Half an hour to sit down and write them, another half hour to do some action planning to get you there? Are you willing to set aside that hour before closing time tomorrow? Do it, and see what a difference it makes by this time next year. The author of this article, Tim Connor, is president and founder of Rodeo! Performance Group, Inc., an Ocala, Florida-based group of facilitators working with businesses and executives who want to make their businesses competitive on a global scale. Tim can be contacted at timconnor@rodeopg.com, or by phone at 1-877-284-0009. Visit Rodeo! on the web at http://www.rodeopg.com Article Source: http://EzineArticles.com/?expert=J_Timothy_Connor

http://www.youtube.com/watch?v=m4Q9MJdT5Ds

Google Voice allows you to only have one phone number to find you.

First Month-Over-Month Increase in Unit Sales since 2005

For the first time in four years, the number of closed unit sales was up from the same period in the prior year according to REAL Trends, signaling that a floor may have been reached in the housing market.

Nationally, unit sales were up 2.8 percent in July 2009 over July 2008.  The Western region again showed the greatest strength with unit sales up 12.3 percent, while the Midwest region showed the greatest improvement with unit sales climbing 3.7 percent over last July.   The average home price declined 10.4 percent, a huge improvement over the decline recorded in June 2009 of 16.5 percent.  The Western region saw the biggest improvement with prices down 11.3 percent versus the decline of 26.1 percent in the prior month.  The Southern region also saw improvement with home prices down only 8.7 percent versus a decline of 9.7 percent in June 2009.  The Midwest remained at 10.9 percent while the Northeast continues to see softness in pricing with an average decline of 13.9 percent and increase over the decline of 10.9 percent last month.

"July 2009 is the first month in four years where unit sales increased over the same month a year ago. With June being nearly equal and July showing a small increase in unit sales there is evidence that home sales have found a floor. These results are very encouraging.  While home prices continue to decline they are doing so at a slower rate than at any time in the last year, another signal that, at least for the moment, the housing market shows signs of stabilizing," says Steve Murray, editor of REAL Trends.

"This is clearly the best month of results that we have seen since we first started publishing the REAL Trends Housing Market Report two years ago.  While we know that there are substantial challenges ahead, with a predicted rise in foreclosures and continued downward pressure on prices as a result, it would appear that we are closer to the floor of this recession in housing than we have been at any time in the last four years." 

Article provided by Real Trends, #1129, August 14, 2009

First-Time Homebuyer Credit: Scenarios

 

S1. If a single person (Taxpayer A) qualifies as a first-time homebuyer at the time he/she purchases a home with someone (Taxpayer B) that is not a first-time homebuyer and then later that year they marry each other, is the credit still allowed?

A. Eligibility for the first-time homebuyer credit is determined on the date of purchase. If Taxpayer A, a first-time homebuyer, buys a house and then later that year marries Taxpayer B, not a first-time homebuyer, the credit is allowable to Taxpayer A. Taxpayer A may take the maximum credit.

S2. Taxpayer A is a single first-time home buyer. Taxpayer B (parent) cosigns for A and does not qualify. Both names are on the mortgage. Can Taxpayer A claim the credit and, if so, how much? 

A. Yes. Taxpayer B is not a first-time homebuyer and cannot claim any portion of the credit, but A may claim the entire credit ($7,500 for purchase in 2008; $8,000 for purchase in 2009), if the home was purchased as Taxpayer A's primary residence.

S3. A taxpayer owned her principal residence. Several years ago, she decided to relocate to a rented apartment, but did not sell the former residence. Instead, she rented it out to tenants. Now the taxpayer plans to buy another house and make it her new principal residence. Does she qualify for the first-time homebuyer credit?

A. A taxpayer who owned rental property within the past three years is still eligible for the credit. The taxpayer cannot have owned and used a home as his or her principal residence within the last three years.

S4. If husband and wife wanted to sell the home that the wife owned when they got married, and the husband had not owned a home within the past three years, could he qualify as a first-time homebuyer for the credit even though the wife would not qualify?

A. No. The purchase date determines whether a taxpayer is a first-time homebuyer. Since the wife had ownership interest in a principal residence within the prior three years, neither taxpayer may take the first-time homebuyer credit. Section 36(c)(1) of the Internal Revenue Code requires that the taxpayer and the taxpayer's spouse not have an ownership interest in a principal residence within the prior three years from the date of purchase. The husband may not take the credit even if he filed on a separate return.

S5. Taxpayer purchased a home on April 24, 2008, while she was separated from her husband. Later in the year, they reconciled and were living together at the end of 2008. She has not owned a home since 2004 but he owned one which he sold in 2006. They remained married the entire time. Is the taxpayer eligible for the first-time homebuyer credit?

A. No. The purchase date determines whether a taxpayer is a first-time homebuyer. Since the husband had ownership interest in a principal residence within the prior three years, and the taxpayers were legally married, neither taxpayer may take the first-time homebuyer credit. Section 36(c)(1) requires that the taxpayer and the taxpayer's spouse not have an ownership interest in a principal residence within the prior three years from the date of purchase. While individuals do not have to be married to get the credit, marriage (and legal separation) imputes ownership of a previous home upon the other spouse. The wife may not take the credit even if she filed on a separate return.

S6. I have been estranged from my spouse for over three years and file married filing separate. I don’t know if my spouse has owned a main home in the last three years, but I have not. If I buy a house in 2009 that otherwise qualifies for the first-time homebuyer credit, can I claim the credit?

A. Section 36(c)(1) requires that the taxpayer and the taxpayer's spouse not have an ownership interest in a principal residence within the three years prior to the date of purchase. While individuals do not have to be married to get the credit, marriage (and legal separation) imputes ownership of a previous home upon the other spouse. If your spouse has not owned a main home in the last three years, then you may claim the credit.

S7. I am separated from my spouse and considered unmarried, and qualify for the unmarried head of household filing status. My spouse has owned a main home in the last three years, but I have not. If I buy a home on May 1, 2009, that otherwise qualifies, can I claim the first-time homebuyer credit?

A. No. Section 36(c)(1) requires that the taxpayer and the taxpayer's spouse not have an ownership interest in a principal residence within the three years prior to the date of purchase. While individuals do not have to be married to get the credit, marriage (and legal separation) imputes ownership of a previous home upon the other spouse. The taxpayer may not take the credit even if filed on a separate return.

S8. A qualifying taxpayer bought a home in August 2008 that needed a lot of work before occupying. They finished the renovations and moved in the home in January 2009. Can they claim the $8,000, since they did not occupy the home until 2009?

A. No. Taxpayers who purchase an existing home and renovate the property before moving in are eligible for the first-time homebuyer credit based on the date of purchase, not the date of occupancy.    

Related Items:

• First-Time Homebuyer Credit Questions and Answers: Basic Information
• First-Time Homebuyer Credit Questions and Answers: Homes Purchased in 2008 
• First-Time Homebuyer Credit Questions and Answers: Homes Purchased in 2009 
• First-Time Homebuyer Credit 

 

Pending Home Sales up for Fifth Consecutive Month

 On August 4, 2009 @ 2:05 pm In Today's Top Story,

Cash for Clunkers Program on Track to Stimulate Economy

Posted By susanne On July 29, 2009 @ 3:17 pm In Consumer News and Advice, Real Estate | Comments Disabled

Top 7 Reasons Why Buying Is Better Than Renting

Posted By susanne On July 29, 2009 @ 3:27 pm In Home Buying 101,

 

July 21, 2009-The U.S. housing market continues to show signs of stabilization with a drop in the number of Multiple Listing Service (MLS)-listed homes for the twelfth consecutive month. The number of single family homes and condos listed for sale according to MLS data decreased in June 2009 from May by 2.1%, bringing the total number of active listings in 28 major U.S. markets to 696,858, according to national real estate brokerage ZipRealty.<!--more-->

Additionally, ZipRealty tracked an increase in the median list price in the 28 markets to $270,440 in June from $270,027 in May. Despite the sequential increase the median list price still decreased 2.72 percent when compared to June 2008.

Other highlights from ZipRealty’s Housing Inventory Index, compiled from local Multiple Listing Service (MLS) data, for June 2009 include:

-Las Vegas, Los Angeles and Phoenix all recorded a decline in inventory which may have contributed to some homes receiving multiple bids.
-Median list prices have flattened or increased in Las Vegas, Phoenix, San Francisco Bay Area and Los Angeles, pointing toward stabilization in those areas.
-While South Florida has substantially fewer homes for sale than last summer, housing inventory there is plentiful. For example, Miami has 27.1% more homes listed for sale compared to Los Angeles even though Miami has a significantly smaller population than Los Angeles.
-California is seeing the most dramatic inventory declines with massive year-over-year inventory reductions: Los Angeles saw a 53.9% decrease year-over-year while Bakersfield/Fresno tracked a 56.2% decrease.
-Several major metros that have been hit hardest by foreclosures had limited inventory in June 2009, which is at levels not seen or experienced in years.

“‘Affordability’ has been the buzz word in real estate this summer, and with a significant number of listed homes bank-owned, we’re seeing instances in some areas of banks dropping prices to generate more offers from buyers,” said ZipRealty President and CEO Patrick Lashinsky. “If the number of home listings continue declining and buyer interest and activity remains strong, we should see sales prices and home values increase as we head into the fall.”

From the Brochure: "The Four R's of Short Sales...and More - The Transparent Approach to a Real Estate-Related Crisis"

Homeowners... Recovering and regaining control

Q. What are my options as a home seller when my property is in or heading toward default?
A. In the event that you have been delinquent in paying your mortgage or anticipate that you will not be able to make payments moving forward, your options will vary based upon several factors or variables that are specific to you and your property. Always remember that each possible resolution will be evaluated on a case-by-case basis by all parties involved. When considering your options, you should take into account:

• the amount of equity you have in your property compared to the outstanding loan balance
• the additional financial resources you may be able to bring to bear
• whether or not you live in a homestead state, and the nature and amount of the homestead exemption
• and/or the amount of private mortgage insurance you have.

All of these factors should be taken into account along with many other variables and special conditions.

The most important decision you need to make is to "make a decision." Typically, when homeowners avoid confronting the serious lifestyle and financial consequences of defaulting on their mortgage, they end up with a significantly more deleterious outcome than they would have, had they taken charge of their own destiny while they could.

Once you decide to take action, we recommend that you contact a lawyer and a real estate agent qualified to assist with your special real estate needs. Top 5 in Real Estate members are not just committed to helping you pursue the potential option of a short sale, but to encouraging you to fully consider all other options that may be available.

Early on in the potential foreclosure process, all homeowners should not only contact an attorney, but also research all potential guidance and assistance available from the government, including the U.S. Department of Housing and Urban Development (HUD). HUD's Guide to Avoiding Foreclosure may be particularly helpful. HUD's toll-free telephone number is (800) 569-4287. Not all homeowners, however, can qualify for certain HUD programs. Whatever guidance you seek as a homeowner, we recommend, at a minimum, that you also carefully consider each of the following questions and answers:

Questions What is a better or more likely outcome for me and why?

• A short sale or a foreclosure?
• A short sale or a repayment plan?
• A short sale or a forbearance plan?
• A short sale or a loan modification?
• In the case of an FHA loan, a short sale or a partial claim?
• A short sale or a short sale/assumption agreement?
• A short sale or a deed-in-lieu of foreclosure?
• A short sale or a bankruptcy?

Answers: Any and all of the above-mentioned options pursued by homeowners should take into account their:

• individual present and projected future financial circumstances
• short- and long-range lifestyle goals
• concerns over credit rating
• desire to remain living in their present home
• a complete understanding of the impact each available option might have in comparison to all other options being considered

In order to best contextualize or prioritize one's various opportunities or limitations with all other options, it is advisable that an attorney or other suitable counsel be engaged. Such counsel is vital in order to properly weigh all legal, financial, tax and lifestyle implications surrounding each option. Since this brochure principally focuses upon the subject of short sales as just one alternative, it is important to note that short sales usually benefit home sellers because they not only stop mortgage foreclosure, but typically prevent the lender from suing for deficiency. Deficiency refers to the difference between the outstanding loan amount and what the net proceeds are from the sale of the home, or in some cases, simply what the proceeds are that the lender receives from the sale of the home. During their short sale negotiating process, it is vital that homeowners have their attorney ensure that the lender agrees to forego suing for any monies that are written off due to the short sale.

Q. Within the short sale packet presented to the lender, there is a hardship letter that homeowners must provide. How important is this component in causing the lender to approve the short sale?
A. It is absolutely critical that the homeowner be able to document that they do not have the income or necessary assets to continue making payments on their home. Homeowners must be meticulously honest in documenting and presenting their "hardship case" so they do not implicate themselves in mortgage fraud; mortgage fraud results from inconsistencies between what the homeowner is now representing compared to the information provided at the time of the original mortgage application. This is why it is vital to work with a qualified attorney in the area of pre-foreclosure/foreclosure law during this process.

Q. What types of hardships would a lender generally consider conducive to a short sale agreement?
A. In the context of consideration for short sale approval, "hardship" is not defined by law. As such, there is no one definitive definition upon which you can rely. One would, however, anticipate that a lender would expect a hardship to result from the loss of job or salary reduction, divorce or separation, debilitating illness, medical bills, business failure, excessive debt, mortgage payment increase or the recent loss of a close family member, such as a child or spouse. Consult with an individual lender to determine the duration of the hardship, as lenders are unique in this regard.

Q. What are the tax consequences of a short sale?
A. The tax consequences for individual homeowners regarding short sales are different depending upon your financial situation. For that reason, it is critical to consult with a Certified Public Accountant.

Q. What is the Mortgage Forgiveness Debt Relief Act of 2007?
A. Prior to the implementation of this act, the law required taxpayers to include discharges of mortgage indebtedness as income for the calculation of income tax. This Act provides an exclusion for discharges of some types of mortgage indebtedness. Check with your tax advisor early on as to whether your transaction will qualify for income tax exclusion.

Q: What effect will each alternative have on my immediate, mid-range, and long-term credit?
A: There is significant confusion regarding the precise and relative proportionality surrounding how various pre-foreclosure/foreclosure and bankruptcy options affect one's credit score. It is therefore advisable that all property owners first check with their lender(s)', credit bureaus, future lenders, government agencies, and an attorney in order to best gauge how each prospective resolution may potentially affect their future credit rating.

Credit rating impact should also be evaluated contextually by considering the role of your credit rating regarding future financial and purchasing plans.

Q. How do I know if my property and I may be considered for a short sale?
A. Eligibility for a short sale resolution is determined by your lender's short sale policy. Your lender will also direct you as to what you must do to comply with their process and procedure. You can either contact your lender directly or authorize an attorney, real estate agent or other representative to contact them on your behalf.

Q. If a lender agrees to the short sale option on my property, can the bank still proceed with a foreclosure?
A. The foreclosure could be considered as a separate and distinct action taking place, even though the lender has agreed to the short sale proposal. This can easily occur when different departments of the same lending institution are seeking different outcomes, or simply because the bank, after agreeing to a proposed short sale outcome, but before signing a contract, believes that foreclosure would represent a more favorable outcome for the lender.

The submission of a short sale package/kit to the lender does not automatically stop a foreclosure action. Once a lender initiates a foreclosure action, the homeowner should consider that the lender will most likely retain this position until the lender has a signed contract in hand, has agreed to the short sale proposal, and has closed on the sale of the property.

At the time the lender agrees to the short sale proposal, the lender may or may not choose to terminate or postpone the foreclosure. A foreclosure may also proceed in the case of subordinate lien holders not having agreed to waive their lien on the property.

Because of the multiple stakeholders involved, and the complex nature of the regulatory environment, qualified, licensed counsel can be critical in taking steps to prevent a lender from not following through with the short sale process, especially in the case of a lender who has the intention of opting for a foreclosure-based resolution.

Q. How would I initiate the short sale process?
A. To initiate the short sale process, contact your lender(s). Typically, the department to contact is your lender's Loss Mitigation Department.

Either you or your authorized representative needs to ask the lender for a short sale package or kit. Most lenders will make their particular processing forms and procedures pertaining to their required short sale documentation available to homeowners.

Unlike what many people believe, some lenders will also allow you to apply and get approval for a short sale even when the homeowner has never been late or missed a mortgage payment. Please note that lenders will typically only consider a short sale after the borrower has: missed two mortgage payments; has no means to continue paying the mortgage; provided all the necessary financial and hardship documentation to the lender; agrees that they will not derive any proceeds from the sale.

Q. Should I contact a real estate agent?
A. Absolutely. But before selecting a real estate agent to represent you, determine whether or not they are knowledgeable about preforeclosure, foreclosure and bankruptcy options. Your agent should not be giving you advice regarding your personal financial situation.

Any real estate agent who asserts that he or she is prepared to assist you as a homeowner in a potential short sale outcome must also be willing to follow the specific administrative procedures of the particular lender involved. In addition, the real estate agent should also acknowledge that they essentially confine their guidance to determining the property's value and how to best market the property, versus advising the homeowner on the best preforeclosure/foreclosure resolution.

Q. Should I contact an attorney?
A. Absolutely. We recommend that you contact an attorney with the understanding that the attorney needs to not only be well versed in real estate law and foreclosure law in your particular state or province, but also needs to be a proven negotiator on behalf of their clients. Not all short sales or other pre-foreclosure or foreclosure options are structured alike. Therefore, the role of a highly competent attorney in such matters-one who can skillfully negotiate on your behalf-can make a world of difference.

Q. How would multiple liens on my property impact short sale approval?
A. Each lender must recognize how it is in their best interest to approve a short sale resolution versus a more costly and protracted alternative. Here again, an attorney/lawyer or real estate agent who possesses experiential knowledge in this particular multiple-lien scenario can be instrumental in developing a multi-party resolution strategy satisfactory to all.

Q. Am I responsible to continue to make mortgage payments if I have intentions of applying for a short sale on my property?
A. Unless you have received information to the contrary from the lender in writing, you are responsible to continue to make mortgage payments.

Q. As a homeowner, what incentive do I have to assist in the sale of my property if I am not going to receive any proceeds from the sale?
A. The authors of this publication believe that homeowners first and foremost have an ethical responsibility to expend the necessary effort to support as high a sales price as possible-even though they will not experience a financial gain-when expecting the lender(s) to forgive any and all of the homeowner's outstanding mortgage debt.

We also believe that the higher the realized sales price, the more likely the lender will be in granting a short sale outcome for the homeowner and possibly either fully or partially waive a deficiency judgment. Moreover, we also advise homeowners to be wary of any real estate agent who, for the sake of facilitating a guaranteed sale in order to collect a commission before a property is foreclosed (ruling out any possibility of a commission), demonstrates a less-than-professional marketing commitment. Such real estate agents will often justifies this lackluster attitude by saying to a homeowner, "No matter what the home sells for, it really doesn't affect your pocketbook-only the lenders." This disregard for marketing on behalf of some real estate agents seeking to facilitate a short sale at all costs (but not to them) is one that lenders readily recognize.

We find that this unprofessional approach to real estate marketing, notwithstanding the special circumstances surrounding a proposed short sale outcome, is to the detriment of well-intentioned homeowners who are hopeful of gaining lender cooperation. Lender cooperation is, without question, influenced by how honorable they believe both the homeowner and the real estate agent are, despite the difficult circumstances facing the homeowner and the challenging marketplace facing the agent.

Q. Does a "Listing Agent" represent me (as the homeowner) or the bank if I have intentions of gaining short sale approval from the lender?
A. The Listing Agent does not represent the bank.

Q. Is there a real estate commission paid in a short sale and, if so, who pays it?
A. Like all commissions, this has to be negotiated. Typically, the commission is paid from the proceeds of the sale. In the case of short sales, the home seller does not typically pay the commission. This is another incentive for a home seller to pursue a short sale remedy and use a qualified real estate agent. Moreover, many lawyers, although representing home sellers, are able to have the lender pay their fees. This makes it even more imperative that every homeowner considering any pre-foreclosure/foreclosure possibility-but especially where a short sale is the desired outcome-contact an attorney immediately. Homeowners should also encourage their attorney and their real state agent to meet as a group for the purpose of creating an effective overall short sale and marketing strategy.

Q. On average, how long does a short sale process take?
A. The time period will vary based upon circumstances, although the approval process and time to closing, in many/most cases, is longer than that associated with the sale of a property in a non "short sale" situation.

Q. Which process has a more adverse affect on my credit rating: short sale: foreclosure; bankruptcy; or deed-in-lieu of foreclosure?
A. It is critical that homeowners, either personally or through a representative, research their individual situation with the various agencies that determine credit ratings. Be careful of categorical representations and sweeping generalizations regarding the credit rating consequences of short sales, foreclosures or other homeowner options. There exists wide-spread confusion, oversimplification, and inadequate guidance presently being offered, especially by individuals purporting to be experts.

Q. What is a deficiency judgment?
A. A deficiency judgment is a court order authorizing a lender to collect part of an outstanding debt from foreclosure and sale of the borrower's mortgaged property or repossession of property securing a debt after a finding that the property is worth less than the book value of the outstanding debt.

Q. Should I take the word of my real estate agent if he or she tells me that I probably will not have a deficiency judgment, or should I have an attorney try to have this guaranteed as a condition of the short sale agreement?
A. Consultation with legal counsel on this matter is highly recommended.

Q. Am I more likely to be responsible for the deficiency judgment under a short sale or a foreclosure?
A. If we respond to this question with the belief and understanding that the waiver of a deficiency judgment would be a binding element in the short sale proposal and subsequent agreement, then the answer, of course, is that the homeowner in default of their mortgage would more likely be responsible for a deficiency judgment under a foreclosure. We recommend, however, that you consult with qualified legal counsel in this regard and investigate specifically whether or not steps can be taken to ensure that a waiver of the deficiency judgment can or cannot be incorporated into a final settlement. You should also determine whether or not the lender is likely to call upon a collection agency after the closing to pursue you for any outstanding sums due the lender. If you sense that an attorney should be representing your interests, we believe you instincts are correct.

Q. When is a bankruptcy preferable to a short sale or to a foreclosure?
A. This multiple choice question can only be answered after exhausting all possible outcomes as they relate to individual circumstances along with the meticulous advice of legal counsel.

Q. How important is the short sale package or kit when applying for a short sale to a lender?
A. Indispensible!

Q. On my own, can I prepare a short sale package/kit, and if so, how would I go about doing it?
A. The short answer is yes, you can prepare your own short sale proposal and submit it to your lender. Some lenders may even assist you in the process. Just like preparing your own taxes, however, you might need help in this critical process. Real estate agents experienced in short sales understand that the bank will want to find out what efforts have been made or could be made to market the property for the highest price and best use of the property. In addition, most lenders will require Broker Price Opinions and or Competitive/Comparative Market Analysis to determine benchmark pricing.

Q. Will lenders tell me what I need to have prepared in a short sale, or do they only make this information available to real estate agents and attorneys?
A. While it is advisable to have a real estate agent assume this very time-consuming and administratively complex responsibility, homeowners themselves are recognized by lenders as being capable of dealing with short sale matters themselves. Lenders, however, are very vigilant regarding the information they require pertaining to marketplace pricing and related real estate information, and rely heavily upon the expertise of high-caliber real estate professionals.

Q. In selecting a real estate agent, when the prospects of a short sale are desirable, is it more important to choose a real estate agent who is very competent in overall real estate sales and marketing, and not as knowledgeable in the short sale process, or is it better to select a real estate agent knowledgeable in the short sale process, but very inexperienced or ineffective in real estate sales and marketing?
A. Obviously, home sellers should want a real estate agent who possesses significant expertise in short sales and in real estate sales/marketing. The greatest emphasis, however, should be placed upon selecting a real estate agent who is highly competent in the areas of marketing, merchandising (staging), negotiating, networking and information technology. The lender-required processes and information, although critical, represent more of a service. The aforementioned skills are indispensible in putting forth the best and most credible effort regarding the sale of the property.

Lenders can discern the difference between real estate agents who only represent pre-foreclosure strategic advice and assistance-ee.g., the performing of the required administrative tasks-from leading real estate agents who can perform the required administrative tasks and who possess short sale acumen while representing world class real estate marketing-related skills.

Lenders . . . Recoup . . . To recover all or part of a loss

Q. When a real estate agent deems it necessary to alert cooperating real estate agents that their listed property is a potential short sale, so that the buyer does not unknowingly enter into a conditional negotiating process, how does this announcement prior to a lender's consent impact the marketing, property value, and ultimately the negotiating position of the lender?
A. This practice of announcing a potential short sale "Sale," before a lender agrees to the short sale conditions is considered by many real estate practitioners who represent home sellers as a method of undermining the integrity and market value of that particular property.

Clearly, one can argue that by not providing this potential status to prospective buyer agents and thus, their clients, deprives them of a form of disclosure; this is why great debate exists surrounding the handling of a short sale situation.

Q. Should a lender do business with a so-called Short Sales Specialist who strategically advertises "Stop Foreclosures" to homeowners, when their intended approach is either most likely or solely a short sale outcome? Does the practice of labeling properties as possible short sales before they officially enjoy short sale status undermine the value of all homes within that marketplace?
A. We leave it to lenders to determine how they respond to the growing practice of homes for sale being labeled as members of either the troubled or the distressed property category, even though the property itself, and thus both the homeowner's and the bank's potential proceeds, is not troubled or distressed, but rather the homeowner and the lender. By categorizing properties as being distressed or troubled, it essentially undermines the underlying loan that supports the market value of the property.

Q. How can a lender best identify evidence within a short sale package/kit that the listing agent has placed much greater emphasis on supporting a lower short sale agreed-upon price than they have upon marketing for a greater selling price?
A. Lenders should respectfully challenge any real estate agent who supports any proposed sales price or offer as to the appraisal method they employ along with the specific and customized off- and online marketing methods they have designed for the subject property. In other words, evidence-based marketing versus merely evidence-based pricing.

Q. How can a lender best determine how dedicated a listing agent truly is to not just "Selling" a home but selling a home for more, in a climate where almost all low offers can be justified or rationalized as representing the best or the only possible offer that could be brought to the lender?
A. Simply ask the real estate agent what methods they employ to market homes for more. Otherwise, attention might be diverted to how they sell more homes versus how they sell homes for more. This is a powerful distinction that lenders must demand real estate agents respond to in order to best determine if the offer, which is part of the short sale kit, represents either optimum marketing or instead a convenient rationale for a significantly lower price.

Q. What can lenders do to prevent the real estate industry from becoming a "foreclosure-prevention" industry instead of an industry of world-class marketers dedicated to bringing back property values for both presently challenged and future home sellers?
A. Again, by communicating to the entire local real estate marketplace that any short sale packet being presented for short sale consideration must include an evidence-based marketing overview of the property, and not just a dazzling display of pricing data supporting a self-fulfilling prophecy of lower prices.

Q. When should a lender who holds a subordinate lien on the property being considered for short sale agree to or choose to resist a short sale resolution?
A. It would be presumptuous to suggest that lenders, given what is financially at stake for them, have not carefully considered the bottom-line implications of each and any lien position they hold as it relates to short-sale resolution and all other options available to the lender(s).

Q. When properties are promoted as being distressed or as potential "short sales," does such labeling stigmatize not only the subject property but all other properties, and does this practice potentially damage the lender's greater loan portfolio as well as the asset value of all homeowner properties? If so, should lenders communicate their concern to the real estate industry regarding how properties upon which they hold mortgages are being marketed given our economic climate?
A. We believe lenders should make it known to the real estate industry that certain marketing practices, which seem intended to exploit the current marketplace, are not being overlooked and will influence which real estate agents are selected to represent bank-owned/REO properties.

Q. Since a home seller does not stand to receive any money from the short sale, how can they best be motivated to enthusiastically support a marketing effort designed to realize an optimum sales price of their property?
A. As we responded to this question in the section for homeowners, the authors of this publication believe that homeowners first and foremost have an ethical responsibility when expecting the lender(s) to forgive any and all of the homeowner's outstanding mortgage debt to, in return, expend the necessary effort to support as high a sales price as possible (even though there is not a financial gain to the homeowner). We also believe that the higher the realized sales price, the more likely the lender will be in granting a short sale outcome for the homeowner and possibly either fully or partially waiving a deficiency judgment. Moreover, we also advise homeowners to be wary of any real estate agent who-for the sake of facilitating a guaranteed sale in the hopes of generating a commission before a property is foreclosed (where they might not gain a commission)-demonstrates a less-than-professionalor lackluster marketing posture or commitment. Such agents justify this attitude by saying to a homeowner, "No matter what the home sells for, it really doesn't affect your pocketbook, only the lender's."

This less-than-professional marketing commitment on behalf of some real estate agents seeking to facilitate a short sale at all costs (but not to them) is one that lenders readily recognize. We find that this unprofessional approach to real estate marketing, notwithstanding the special circumstances surrounding a proposed short sale outcome, is to the detriment of well-intentioned homeowners who are hopeful of gaining lender cooperation. Lender cooperation, without question, is influenced by how honorable they believe both homeowners and real estate agents are in spite of the difficult circumstances facing the homeowner and the challenging marketplace facing the agent.

Q. Should a lender be concerned when a real estate agent is representing both sides of the transaction against the backdrop of a seller desperately seeking to avoid foreclosure and a bank's predisposition towards short sales, versus the protracted, costly and legally cumbersome foreclosure/REO alternative?
A. Yes, lenders, more than ever, need to be circumspect regarding the individual circumstances surrounding how their mortgaged property is being recommended to "closure."

Buyers . . . Reap . . . Create Reward from the Benefit of A Short Sale

Before buying a property marketed in a "short sale" context, consider the following:

Q. How much less should I offer on a property once I learn that the real estate agent has "labeled it to fellow agents" as a possible short sale, even though the bank hasn't yet classified the property in such a fashion?
A. For the same reason that it most likely is not in the best interest of a lender or the ultimate sales price of a property when it is marketed as being "under duress," it oftentimes is to the significant benefit of the buyer when a property is being labeled as a potential short sale.

Any offer on any property in any marketplace should be made only after the buyer satisfies the need to thoroughly research what properties are selling for, how long properties are taking to sell, which way prices are trending, and to the degree possible, what pressures to sell might be facing the owner(s) of the property in question.

Along with this approach to a proper pricing/offer strategy, it is recommended that the buyer be as aggressive as possible and anticipate an inevitable negotiating process. To that end, if a property is labeled as a potential short sale that might enjoy a stronger negotiating position, that will be reflected in your offer. At the same time, it is unwise to risk a great sales price (especially when one is seeking the lifestyle benefits of a particular home for sale) by pushing too hard and too unrealistically.

It is recommended that when packaging the offer for a property that is being advertised as representing challenging circumstances, that the buyer make his/her case by understanding the position of the lender regarding a short sale outcome versus foreclosure or bankruptcy. The key is to not appear exploitive, but rather to appear as one who is willing to make a prudent decision, even while most others remain on the sidelines.

Q. Do some real estate agents make it a practice of building in preprogrammed or time-interval-based price reductions, and if so, can I assume that the longer I wait, the greater the discount I will enjoy?
A. Some agents do build in strategic price reductions to come at specific intervals and they see it as their earnest attempt to help their homeowner-client win the race against a foreclosure.

Other agents, however, view this systematic concession as a lazy method that doesn't require aggressive marketing (which is self serving to the agent who does not want to risk losing a sale before a foreclosure), even if it means contributing to the downward spiral of home values. If possible, buyers should try to determine if a particular real estate agent makes it a practice to systematically include interval-based price reductions when considering how to best "time" their offer, so it coincides with the agent's willingness to concede to a lower price as a foregone conclusion.

Q. As the contract is subject to third-party approval, who is the seller of the property and with whom am I doing business?
A. You and the agent representing you are doing business first with the home seller and marketing agent regarding your offer, but must realize that ultimately the business decision will be made by the lender(s), although the home seller does not have to agree with the lender's terms for the short sale approval.

Q. How can I, as a buyer, best determine whether or not the seller of a so-called potential short sale property significantly overpaid when they purchased the property?
A. Each property-although conveniently considered a comparable to other properties-is truly distinctive, and therefore, all pricing is subjective. Consequently, in order to best understand the relative value of a property and whether or not somebody overpaid or underpaid requires marketplace sophistication and savvy. The necessary marketplace information that is required to make the determination of what a property should have been bought for requires more than Internet-based research and statistics, but a thorough understanding and appreciation of the physical, exterior and interior condition and esthetics of a large number of properties that fall within the same range as the property being considered for purchase. We believe that an experienced real estate agent (like a Top 5 in Real Estate Network® member) can help buyers save tens, if not, hundreds of thousands of dollars by assisting them in determining how to best buy property in a financially challenged marketplace.

Q. Since short sale properties are expected to be purchased in as-is condition, given the lack of financial interest of a home seller regarding the outcome of their property, and considering the potential adverse physical effect that these circumstances have on the value of the property, how late in the negotiating process should my appraisal be in determining market value?
A. Any buyer for any property should be willing to pay for all relevant and necessary inspections and appraisals of the property, and have a pre-closing walk-through contingency as part of the sales agreement.

You should consider making any offer subject to the existing lender's acceptance to include not only a general home inspection contingency, but also, where applicable, satisfactory inspection reports for lead-based paint, natural hazard disclosure, pest/insect report, underground storage tank, septic/sewer inspection, well water and seller (conditions) disclosures. All of these contingencies should be in addition to the typical mortgage, appraisal and title contingencies.

Q. How should a buyer negotiate with a lender on a short sale property when the lender typically is not subject to property condition disclosures and the seller, given their financial situation, may not be a viable party regarding future recourse?
A. Buyers, especially with certain types of homes (e.g., age and condition), should most definitely include disclosure concerns as they prepare and present their offer to the lender and as an overall part of their overall negotiating strategy.

Q. How can I find out about subordinate liens or other claims to the property, and how will this impact my negotiations and the time necessary to close?
A. Ask your agent to have a title search conducted; it will include all the necessary information regarding lien holders. This should guide you regarding the estimated time it will take before a closing might be possible. Further research into the short sale practices of each lien holder, and the institutions they represent, might also reveal their relative willingness to accept lower offers. It is also recommended that the buyer title the property with title insurance, although without a strategy to remove all liens, no closing will be possible.

Q. Please explain what options, other than a short sale, the primary lien holder has with regard to the disposition of this property.
A. The other options include deed in lieu, loan modification, forbearance and foreclosure.

Q. When is a short sale the bank's better option, with regard to the disposition of the loan on this property?
A. When a lender deems that all other options are either too costly or carry with them a high level of financial uncertainty, the short sale represents closure and finality.

Lenders also often favor short sale resolutions because they are not in the business of, nor do they have expertise regarding, managing or owning properties. Moreover, short sales are typically less expensive for the lender than the foreclosure process.

Q. Where do you see my opportunity to reap a reward in the purchase of a property that is hopeful of a short sale resolution?
A. When your offer represents a quicker, cleaner and clearer financial outcome to the lender than the other options available to them.

Q. Under what circumstances would the bank reject or not consider my offer to purchase a short sale property?
A. The offer will not be accepted when it is considered to be either too low or not in the best interest of the lender. Mortgage preapproval, if possible by the lender, or a full-cash offer can eliminate the lender's concerns regarding last-minute credit issues. A high loan-to-value ratio will also offer the seller/lender a higher level of comfort, especially if their institution will be the mortgagee for the transaction.

Q. Strategically speaking, what can I do to best ensure the bank's acceptance of my offer to purchase the property?
A. From the lender's perspective, the greatest qualities of the short sale resolution are closure and finality. By accepting your offer, even if the price is lower than market value, due to the situation, the lender can close the file and move on. To best ensure a smooth transaction, do not muddy the waters with contingencies and time frames inconsistent with conventional closing times. The lender will likely need to take time to deliberate prior to accepting an offer. Once the offer is accepted, anticipate that the lender will want to close within 30 days. Consider including language in your proposal and contract that provides the lender with the time they need to review the offer and reach a decision. Then include an iron clad means of closing (i.e., paying for the property on your part). When you remove obstacles in any real estate transaction, you pave the way to a smoother closing.

Q. With regard to price, what would you recommend to best ensure that the bank accepts my offer, and at the lowest possible price?
A. By the time you come to realize that a given offer on a given property makes sense for you, either as a personal or as a business investment, you should have completed a significant amount of research. Your research, or the research of your highly skilled and specialized real estate agent, should be able to help you arrive at a point where you have a rationally supportable negotiating range in mind, based upon market conditions, market prices, the investment you'll be making and the return you are anticipating. We recommend that you consult with your real estate agent on how to best present your pricing rationale within the lender's context. If you are going to make an offer because it is a good investment in today's market and your offer is too low, the lender will likely reject the offer so they can gauge your perspective as a prospect.

Share your reasoning with the lender so they can see your perspective as a buyer or as an investor. Creditworthiness notwithstanding, when the lender/seller understands your rationale they will also understand why they should not likely be able to anticipate a better competitive offer. When their other, more ambiguous options are not financially viable (e.g., foreclosure, bankruptcy, deed-in-lieu), and when your offer makes sense, you will have the best opportunity to have your offer accepted at the lowest possible price.

Q. What is the bank's decision-making process in the consideration of my offer to purchase, and how long should I expect this to take?
A. The decision-making process varies, based on the institution. Here again, a highly skilled real estate agent experienced in this area can offer specific details regarding the details of the process in your situation.

The lender/bank needs a rationale to justify any write-downs/write-offs. This can often be subject to internal lender protocols, and this can add time to the approval process. The lender will need to rely upon appraisals and broker price opinions that they will most likely order themselves. Both can be developed quickly. Some lenders will have a monthly meeting in which they review proposals. If a short sale package/kit is incomplete, expect it to be rejected or returned to you for clarification or review. This can delay your process up to one month or more.

Lenders will generally need to negotiate to obtain releases from secondary lien holders. Anticipate that the time required for this process and subsequent negotiations have the potential to become protracted.

Anticipate that a "simple" title search should be expected to take approximately three to five days.

Remember, each lender has established their own rules for their short sale process, including what percentage of a debt-to-balance (ratio) payoff they will accept. The lender should also be expected to have internal guidelines for how much commission they will pay for real estate brokerage services and for attorney fees.

Q. What is an REO property?
A. The letters "REO," stand for real estate owned. These are properties owned by a lender, in most cases a bank, and become classified as REO typically after an unsuccessful foreclosure auction when the title to the property reverts back to the lender. Some banks, given the number of properties they now own, have established their own REO departments. In many cases, leading real estate agents have developed relationships to create opportunities for buyers and investors. Buyers/investors can also contact the REO departments of lending institutions to learn about available properties or visit various bank-created websites, which list their bank-owned or REO properties for sale.

Q. In general, would a buyer benefit more from buying a bank-owned (or REO property) or a short sale property?
A. There is no general rule that can, with any degree of certainty, state which category of real estate buying results in a more favorable outcome for a buyer. It is important, however, that buyers understand that lenders are extremely motivated to sell when they own the property (REO). As a buyer, it is also easier to identify the true condition of an REO as the property should be vacant.

Banks do not want to own properties and have a great incentive to not only sell their properties, but will actually offer credits to buyers, in some cases, if the buyer agrees to fix defects or perform renovations on the property.

Short sales offer many advantages as well as evidenced throughout this information; but again, it is very difficult for anyone to categorically assert that either foreclosures or short sales represent the best opportunity for a buyer.

Q. What is the estimated time between the acceptance of my offer and the closing?
A. There are no norms with which we can guide you. Each jurisdiction has required time frames for notification of the intent to foreclose and for the various steps in the process. Once again, we recommend that you work with qualified, licensed professionals, including attorneys with local experience in your market, for specific guidance in this are. As a generality, however, it is not uncommon for a lender to consider a proposal for approximately 60 to 120 days and anticipate closing 30 days after they accept your offer.

Q. Is it worth the wait?
A. In many cases, yes, it is worth the wait, but this depends upon each person(s) circumstances.

Q. What is the benefit of buying a short sale property as opposed to buying a conventional property?
A. For the buyer, it is a better or lower price, resulting from a stronger negotiating position; for the seller/lender, it is the opposite.

Q. How do I learn about the relevant local real estate market during the last year or so, and how can I get predictive data regarding estimates of future prices?
A. Contact a real estate agent and ask them to provide all past and present pricing data, absorption rate data (where available) and all other contextually relevant information they can make available to you.

Q. Can I benefit from buying a property that was marketed as a distressed or short sale property, and then turn right around and sell (flip) it for more by removing this stigmatized label?
A. When real estate prices were escalating rapidly, properties were being purchased and refinanced as the market continued to rise. This practice created equity leveraged by credit debt. Fearing a reversal of this trend and the resulting under-collateralized loans that would inevitably follow, the Federal Housing Administration (FHA) implemented "anti-flipping" regulations as a condition of the loan, which, under specific circumstances, require the owner to hold the property for a fixed amount of time prior to selling it once again. As of right now, these regulations have been temporarily waived. Check with qualified counsel for details on how this may or may not affect your investment decisions.

Benefiting from the purchase and subsequent sale of a distressed or short sale property would depend more upon what your purchase price was than on how the property was labeled. However, because the property was "labeled" and viewed by the marketplace as being a "distressed" property, it may have very well led to a much lower price when you bought it. Fully consider the tax implications as well.

Ask your CPA about the $250,000 home sale exclusion. In the case of an owner-occupied residence, under the current IRS regulations, you would have to live in the property for two out of the first five years of ownership to qualify for the $250,000 home sale exclusion. We highly recommend that you consult with qualified licensed professionals prior to making such purchasing or investment decisions.

Limit of Liability/Disclaimer of Warranty: The information and opinions expressed herein are presented with the understanding that they do not represent any or all of the opinions of the Top 5 in Real Estate member making this publication available to you. The information contained herein is not intended to be a comprehensive discussion of the strategies or concepts mentioned. Nor is any information or data discussed intended as tax, investment or legal advice. In pursuing any concept or idea presented, you should rely on your own due diligence and on your own attorneys, accountants and other professionals to determine if such ideas or concepts are appropriate for you. Although information herein has been obtained from sources believed to be reliable, RISMedia, Inc., the Top 5 in Real Estate Network® and its local member do not guarantee its accuracy or completeness and accept no liability for any direct or consequential losses arising from its use. RISMedia, Inc., the Top 5 in Real Estate Network® and its local member assumes no responsibility for any errors, omission or damages arising from use of information contained herein.

© 2009 RISMedia's Top 5 in Real Estate Network®

Positive News: U.S. Housing Starts up Second Straight Month in June

Posted By beth On July 19, 2009 @ 1:07 pm In Consumer News and Advice, Real Estate | Comments Disabled

First-time Home Buyers Grabbing Houses and Tax Credit

Posted By susanne On June 3, 2009 @ 3:54 pm In Consumer News and Advice, Home Buying 101, Today's Marketplace

My Credit Score Dropped 87 Points Because of Me

Posted By susanne On June 9, 2009 @ 3:53 pm In Consumer News and Advice, Finance and Economy, Today's Marketplace |

First-time Home Buyer? Get an Inspection

Posted By Kayla On July 8, 2009 @ 2:22 pm In Consumer News and Advice, Home Buying 101, Today's Top Story - Consumer | Comments Disabled

It’s Harder, but Still Possible, to Get a Loan

Posted By beth On February 18, 2009 @ 4:00 pm In Consumer News and Advice, Financing a Home, Home Buying 101 | Comments Disabled

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Article printed from RISMedia: http://rismedia.com

URL to article: http://rismedia.com/2009-02-18/its-harder-but-still-possible-to-get-a-loan/

URLs in this post:

[1] realestatemagazinefeedback@rismedia.com: mailto: realestatemagazinefeedback@rismedia.com

[2] 9 Trends Not to Miss for Your Home: http://rismedia.com/2009-01-26/9-trends-not-to-miss-for-your-home/

[3] Do Your Homework before Refinancing Mortgage, Experts Say: http://rismedia.com/2009-01-19/do-your-homework-before-refinancing-mortgage-experts-say/

[4] 10 Real Estate Resolutions For Buyers and Sellers: http://rismedia.com/2009-01-08/optimize-your-clients-results-10-real-estate-resolutions-for-buyers-and-sellers/

[5] Image: http://www.addmarx.com

HUD To give special attention on offers submitted

HUD will consider all offers submitted for properties that have been on the market over 120 days. Bids for these properties should be submitted through normal channels and there are no additional requirements. The morning after the bid deadline, these offers will be handled with “special attention”.. This is effective immediately and will continue until further notice

For a list of HUD homes click our HUD homes tab!

When the Goin’ Gets Tough - Find Some Calm, Get Organized

Posted By susanne On July 7, 2009 @ 2:42 pm In Business Development, Coaching, Training | Comments Disabled

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Article printed from RISMedia: http://rismedia.com

URL to article: http://rismedia.com/2009-07-07/when-the-goin-gets-tough-find-some-calm-get-organized/

URLs in this post:

[1] realestatemagazinefeedback@rismedia.com: mailto: realestatemagazinefeedback@rismedia.com

[2] 4 Easy Ways to Cultivate First-Time Home Buyers: http://rismedia.com/2009-06-30/4-easy-ways-to-cultivate-first-time-home-buyers/

[3] 5 Tips to Help You Create a Culture of Greatness Through the Recession: http://rismedia.com/2009-06-28/5-tips-to-help-you-create-a-culture-of-greatness-through-the-recession/

[4] Mapping, Google’s Local Business Center & Going Mobile: http://rismedia.com/2009-06-28/mapping-googles-local-business-center-going-mobile/

[5] Image: http://www.addmarx.com

Things to Consider When Searching for a Home

Before deciding which house to buy, think about your lifestyle, your current and anticipated housing needs, and your budget. It’s a good idea to create a prioritized list of features you want in your next home – you'll soon discover finding the right house involves striking a balance between your "must-haves" and your "nice-to-haves." To start, consider your lifestyle. If you love to cook, you'll want a well-equipped kitchen. If you're into gardening, you'll want a yard. If you're planning your office at home, you may want a room for a separate library or work space. If you have several cars, you may require a larger garage. Use this list as your search guide. Next, think about what you might need in the future. As you consider your housing needs, it's important to consider how long you may live in your home. If you're newly married, you might not be concerned with a school district right now, but you could be in a few years. If you have aging parents, you may want to look at homes that offer living arrangements for them as well as you. It’s important to think about your new home’s location just as carefully as you do about a house’s features. Location is a huge part of any move. In addition to considering the distance to work, you need to evaluate the availability of shopping, police and fire protection, medical facilities, school and day-care, traffic and parking, trash and garbage collection, even recreational facilities. Perhaps the most important decision is deciding on the type of home you want. Do you want a condominium or a co-op? A town house or a detached single-family home? Do you want brick, stone, stucco, wood, vinyl siding, or something else? Do you prefer a new home or an older one? Through all of this, make sure to talk to your real estate professional about where you want to live. While more buyers now use the Internet to gain access to listings, or available properties for sale, it is still a good idea to use an agent. The agent brings value to the entire process: he or she is available to analyze data, answer questions, share their professional expertise, and handle all the paperwork and legwork that is involved in the real estate transaction. CENTURY 21 professionals have the expertise to help their clients narrow down their choices by sharing market trends and local information.

https://sweepstakes.century21.com/promotion_is_over/

 

Century 21 Path To Your Dreams Sweepstakes

Official Winners List

Place Name City State Grand Kimberly G. Dalton GA First Ronald A. Pewaukee WI First Joseph S. Las Vegas NV First Joni C. Erie PA First Dawn R. Roseburg OR First Willie A. San Angelo TX First Jeff P. Cheshire CT First Curtis M. Rohnert Park CA First Denise N. Kannapolis NC

Congratulations to our Century 21 Sweepstakes winners!

Official Rules

Get off the fence – you’ll be glad you did! Already own a home? REALTORS® are your best resource to explore your options if you’re thinking about selling or refinancing. Call your REALTOR® today! Don’t already have a REALTOR® on call? Click here to locate one.

New Tax Credit Available
A tax credit of up to $1,800 is now available to purchasers of an eligible single family residence in Georgia for homes purchased between June 1 and November 30, 2009!

Up to $8,000 First-Time
Homebuyer Tax Credit
The American Recovery and Reinvestment Act of 2009 provides for an $8,000 tax credit that would be available to first-time homebuyers.

The credit does not require repayment, and it will be claimed on a tax return to reduce the purchaser’s income tax liability.

If any credit amount remains unused, then the unused amount will be refunded as a check to the purchaser.

Unprecedented Incentives for New Homes
Builders are offering unprecedented incentives for new homes such as flooring upgrades, new appliances, and discounted financing.

Don’t just dream about purchasing a home; make your dreams a reality. Right now is the right time to “Get Off the Fence!”

It's a Buyer's Market
Buyers who are pre-approved have incredible negotiating power.

Financing options are available for those with a steady income and good credit.

Sellers are pricing their homes more competitively.

Lower prices also mean a wider range of options from which to choose in a variety of locations.

Historically Low Interest Rates
Interest rates are at historical lows – lower rates equal lower payments, or a larger home – you choose.

Contrary to perceptions, conventional mortgages are available at favorable interest rates for homebuyers.

Buyers with good credit, a steady income and a realistic view of what they can afford are excellent candidates for a mortgage, even in this market.

Building Wealth with Homeownership
Historically, homes are a solid long-term investment. For the past 40 years, real estate has delivered the most consistent positive return over any investment.

When you buy a home, you are building equity and adding to your assets. According to the Federal Reserve Board, the average renter’s net worth is $4,800, while the average homeowner’s net worth is $171,000.

Finally, you’ll see a sizable difference each year when you claim the mortgage interest deduction on your taxes.

Get Off the Fence in 2009
Prices are right, rates are low and there are plenty of homes on the market NOW.
As the economy improves and more people look for homes, prices will rise.

If you’re playing the waiting game, remember that the market will come back around – it always does – and you could miss your opportunity for a fantastic deal.

Take advantage of today’s market - you’ll be glad you did. Get off the fence and into a home!

Talk to Market Experts: REALTORS®
Not only can REALTORS® help you find your perfect home, they are an invaluable resource for selling your home as well.

Did you know there are over 180 steps in a typical real estate transaction? It’s not worth navigating such a complex process by yourself.

Get organized and informed and get ready to get off the fence – contact your REALTOR® today!

 

Century 21 Jeff Keller Realty

706.796.0106

Here are some of the factors that appraisers Joni L. Herndon of Real Property Analysts/Gulf Coast in Tampa, Fla., and John A. Hillas of Hulbert & Associates Inc. in Modesto, Calif., say they consider when determining value.

 

• Incentives and concessions. Most of today’s buyers expect to pay the lowest possible price and still get some extras. Sellers and home builders are offering money toward closing costs, remodeling and decorating, upgrades, and association dues. The price set initially may not be the final price once concessions are factored out. Appraisers care about that final number.

 

• Closing date. Forget what comparable neighborhood houses sold for a few months back. Appraisers want prices from the most recently closed transactions. “If a sale was more than 45 days ago, even 35, the price may be irrelevant,” Hillas says.

 

• Condition and curb appeal. Appraisers typically find several properties with similar interior and exterior features to determine value. When markets are healthy, blemishes matter less, but when markets soften, problems—a dated kitchen or barren lawn—can reduce prices and deter buyers. “The difference in value is not just the repair costs but the time and hassle to make them. It’s better for sellers to do work in advance,” Hillas says.

 

• Foreclosures. Appraisers technically shouldn’t consider neighborhood foreclosures when valuing a home, since foreclosures don’t meet the Appraisal Institute’s definition of a property reasonably exposed in a competitive market, says Herndon. “But when several neighborhood homes are abandoned, it’s hard not to caution sellers that this is a troubling trend and may affect home values,” she says.

 

• Changing demographics. If a house is in an up-and-coming area, the value can be expected to rise. A location that’s perceived as safe also may help attract the increasing number of single female buyers.

 

• Economic clouds. If there’s an oversupply of comparable homes for sale, or if the local job market is suffering, buyers may be hesitant to invest. Hillas advises setting prices aggressively from the get-go.

 

• Chemistry. It’s hard to account for those times when buyers fall in love with a house, despite a high price, poor condition, or tough economy. “Emotional attachment is a factor that can’t be predicted,” says Herndon. Hillas agrees, “It’s what makes it harder to appraise homes versus commercial buildings, where buyers care more about the bottom line.”

Help Your Messy Sellers Clean Their Ways

By Melissa Dittmann Tracey

Styled, Staged & Sold caught up with real estate pro Cheryl Kirby, co-creator of a new instructional staging DVD for real estate professionals — “Get Ready, Get Set, Get Sold!” — to talk about the simple things you can do to spruce up a property, and when you might need to intervene to stop a seller’s messy ways.

Why did you produce the video “Get Ready, Get Set, Get Sold”?

KIRBY: My associate-Cari Gililland-and I are both REALTORS®. We always go on home tours and put our listings on home tours too. We’d go through some of these homes and go “oh my gosh, they really think they can sell this home with all of this dirty stuff all over the place! Don’t they understand what they need to do to sell a home?”

We kept talking about producing a video for real estate professionals because some get really uncomfortable saying to their clients: “Your house is dirty, and you really need to clean it.” So we wanted to be able to offer them a tool to give to their clients to show them here’s what you need to do to compete in the market.

How bad of a condition have you seen properties in?

KIRBY: I’ve seen homes that smell so bad you can’t even walk in, the carpet is stained, and the walls need touch ups. The garbage is overflowing, there’s laundry scattered on the floor in the bedroom, pet hair all over, and junk all in the yard. You name it, I’ve seen it!

So what are some of these important things that sellers can do to get a home ready to sell?

KIRBY: Smell is huge. Smoke, cooking certain foods, and garbage overflowing can really make a home smell bad. The minute a buyer opens the door: The smell is there and can be a quick turn off.

Empty the garbage often. Don’t open the windows; the wind can carry in smells to the home.

If someone is a smoker, they need to first eliminate all smoking in the house, or even outside of the home when the doors are open. Get an ionizer, which is great for removing  smoke smells.

Also, remember that it might not be a good idea if someone might see your house tomorrow to cook lamb, broccoli, garlic or fish the night before. You won’t be able to get those smells out of the house in time before a showing. Also, make sure to take the garbage out often.

If you can’t make cookies every day to improve the smell of the home, then get a very subtle plug-in air freshener. Make sure to have it set to the lowest setting. The No. 1 scent is cinnamon; No. 2 is vanilla. Just don’t put them all over the house — it will be overpowering! If you have a two-story home, put one upstairs and one downstairs.

Real estate professionals also need to tell their clients to dust — clean the fans and dust the windows. Vacuum the furniture, not just the floors. Open the blinds on the windows, remove any pet dishes, and have the home set to a comfortable temperature.

A yard that is plain Jane with not a lot of wow can easily be spruced up with just two potted flowers, for example, in purple. The cost? Only $20 each. You can put it in the entry way. Get a new welcome doormat and make sure all the front doors are clean.  The minute buyers get out of the car is when they start looking and a pot of fresh flowers and a new welcome mat can go a long way.

How much of this really falls on the real estate professional’s responsibility though?

KIRBY: I kind of hold the real estate professional responsible too, as much as the seller. It’s the real estate professionals’ responsibility to advise their clients. And one part of the job if you want to sell for the best price and least amount of time is you need to roll up your sleeves, dig in, and ask what you can do to outshine competition and win a buyer?

We tell them in the video that there’s basically three reasons people buy a home: Location, price and condition.  We can’t do anything about location, and price is determined by market, but you can work with a real estate professional on the condition — that’s one thing you have control over. If the condition is good, you can sell at the higher end of the price bracket and sell faster.

Should you completely de-personalize the home?

KIRBY: You should not have it all lined with family photos, but at the same time, I’m not one of these that say you have to get rid of everything. A photo here and there makes it feel like a home. A family photo on an end table or entertainment center –one or two is totally OK. Even model homes, have family photos displayed. It warms up the home. But you probably wouldn’t want to have the entire hallway lined with family photos.

Make sure all the clutter is removed. Don’t have kids toys piled in the living room or on the floor. You don’t need to make it look like no one lives there but you want to make sure that it shows that the people who do live there, live neatly.

How about for vacant homes? How critical is it to stage a vacant home?

KIRBY: Staging doesn’t have to necessarily be bringing in furniture. It doesn’t have to cost you to get ready for a showing. You don’t need to go in and have designer paint colors all over.

Bringing in nice accessories, some photos, and a few pieces of greenery can make a huge difference. You would be amazed at how these simple touches can change personality of a house and liven up a cold, empty house.

Do you consider staging even more important now in a softening housing market?

KIRBY: Absolutely! A lot of people think staging is just rearranging furniture and bringing in a lot of pretty things and painting. But those things are not going to make up for the basics: cleaning and organizing.

There is such a need for sellers to understand what it will take to get a buyer. It’s not just sticking a “For Sale” sign out in the yard. If the home is disgusting, buyers will go find another home. No one wants to move into dirt.

For more information on Kirby and Gililland’s 20-minute instructional staging video, visit www.getreadygetsetgetsold.com. Kirby and Gililland are real estate pros with Keller Williams Integrity First Realty in Mesa, Ariz.

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Daily Real Estate News  |  July 2, 2009  |   Share