SHORT SALE:
The nuts and bolts of a short sell are in it's name. The short being the loss on the loan the bank takes. The sale means that the homeowner has to sell the property at a loss, to repay what they can to the bank if they are unable to continue making payments. Not all lenders will go along with a short sale, and each lender will have it's own set of flaming hoops for the seller to leap through before it will give the go ahead. If this is something you are thinking of as an option, I as your Realtor would advise you to medicate yourself with whatever you have leftover from your last root canal and hang in there. There is no sugar coating beyond this point!
Before you foray into this part of your life I would really strongly suggest you take a long, stern look at refinancing, or asking bank to negotiate on a lower interest rate, or something along those lines. That is all I am going to say about that because I am not a lender either, and it is really none of my business (but really it is, so there. Don't tell anyone I told you!). If you can avoid the short sale process you really ought to. I would also suggest putting your home up for sale the minute you realize you can no longer pay for it. Find out your payoff from anyone who has a lien on the home and use that number to determine your sales price. Obviously this sales price needs to be at or above what you owe, and that also needs to be kept in mind while negotiating who pays for closing costs, allowances and so forth if the home gets an acceptable offer. THE TIME TO DO THIS IS BEFORE YOU HAVE MISSED ANY PAYMENTS ON YOUR MORTGAGE. Even if you have missed a car payment, a credit card payment or the vet is going to send you to collections, MAKE YOUR HOUSE PAYMENT FOR AS LONG AS POSSIBLE TO MAINTAIN A LITTLE LEVERAGE WITH THE LENDER! (Again, I'm no financial adviser so just disregard the bold nonsense above.)
If the sale of your home is not looking hopeful you need to begin the short sale process. Have a Realtor determine your market value, or have a Broker price opinion (bpo) done, whichever your lender will accept, to get an idea of what your home could realistically sell for. You will need to present this information, along with marketing plan, and proof of reason you can no longer make payments on the amount you borrowed. Your lender will get out the hoops and a lighter at this point and the show can begin. After the lender has agreed to participate, your Realtor will magically appear with a buyer. This might take a while, in all actuality, because short sales are notoriously long drawn out processes, filled with uncertainty and aggravation for everyone. It takes a special kind of person to decide they want to add more of that into the home buying process. However, this is also a way for a buyer to get a pretty good deal on a home, and there are plenty of patient people out there who know the wait is worth it. Your bank will take it's sweet time deciding if it will accept the buyers offer, or counter or just say no. Your Realtor will spend many an hour beating herself over the head with the phone on hold trying to reach someone who can tell them anything for you. This is all worth it. Once an agreement has been reached you as the seller are free of the burdens you were shouldering and your credit is still in the triple digits, the bank has recouped some of it's loan, and the new homeowner can move in knowing they paid a very reasonable price for their new home. This is not an easy process, and it happens to people for all sorts of reasons. One of the main jobs of your Realtor in this situation is to handle the brunt of the haggling and nitpicking that can be emotionally draining and defeating. You don't need to beat yourself up over this, and you really don't need to let any one else beat you up either. Let your Realtor get out her boxing gloves while you go take a nap.
Each situation is so unique, and depending upon the lender, the circumstances affecting your ability to pay, and the way things are handled can affect the outcome or even the ability to do a short sale. You need to sit down with your Realtor, your lender, and yourself and decide if it is an option for you
Tuesday, September 30, 2008
The F Word!
FORECLOSURE:
Foreclosure seems to be the f word anymore, neighborhood gossip, guilt & shame, the every body's doing it mentality. Yup, check all three off the list, we have a new f word! Even in our little hometown community, people are doing it. The similarities are shocking. If you ignore it, it will not go away! So, what's a girl to do when she has clients that are afraid the f word might happen to them? Maybe clients seeking out the f word as an exiting risk that may reap great rewards? I guess I'd better roll up my sleeves and delve in, because this f word is floating around reeking havoc among the uneducated and unprotected!
First I would like to say, like any good Realtor, I am not an attorney, accountant, inspector, contractor, psychic, or your great uncle Fred. If I don't cover something you would be wise to seek the council of any of the above. I am going to tell you more than you want to know about the process of short sell, and the process of acquiring a foreclosed property. My scope of knowledge is limited to that of a Realtor, and I just couldn't possibly cram any more information into my poor little brain than that anyway. The next two posts are here to be helpful, and provide basic information. If you want advice on your specific situation give me a call and we can look things over.
Foreclosure seems to be the f word anymore, neighborhood gossip, guilt & shame, the every body's doing it mentality. Yup, check all three off the list, we have a new f word! Even in our little hometown community, people are doing it. The similarities are shocking. If you ignore it, it will not go away! So, what's a girl to do when she has clients that are afraid the f word might happen to them? Maybe clients seeking out the f word as an exiting risk that may reap great rewards? I guess I'd better roll up my sleeves and delve in, because this f word is floating around reeking havoc among the uneducated and unprotected!
First I would like to say, like any good Realtor, I am not an attorney, accountant, inspector, contractor, psychic, or your great uncle Fred. If I don't cover something you would be wise to seek the council of any of the above. I am going to tell you more than you want to know about the process of short sell, and the process of acquiring a foreclosed property. My scope of knowledge is limited to that of a Realtor, and I just couldn't possibly cram any more information into my poor little brain than that anyway. The next two posts are here to be helpful, and provide basic information. If you want advice on your specific situation give me a call and we can look things over.
Thursday, July 10, 2008
Nothing Better Than Free!
Even though we are not as economically hard hit as some areas of the country, I dare anyone to pass up something free! These are just a few websites that are FREE that I cannot live without. They help me learn, remain sane, organized, and productive! I hope you enjoy!
www.babble.com
A modern parents guide. Opinions, articles, product reviews, and a discussion board with a variety of topics to keep you amused.
www.bbc.co.uk/language
Free lessons in Spanish, German, as well as French just to name a few! They even e-mail you a little certificate once you have completed a twelve week course!
www.ocw.mit.edu
While you won't be able to say you graduated from MIT, you can say you've studied there (maybe?).
www.realsimple.com
While it is a very useful magazine, the website is almost as helpful, and free! This is also the source for several of the other free sites I have mentioned.
www.sba.gov
A small business owners guide. Provided information on business planning, financial resources, local services and other helpful stuff.
www.craigslist.com
I advertise listings, look for for sale by owners, and keep an eye out for things or services I could use. (I am also a huge fan of e-bay!)
www.allrecipes.com
You have chicken and grape jelly in your fridge. Go to this site, click on ingredients, and type in chicken and grape jelly. They provide you with hundreds (depending on the combination of foods you put in) of recipes using those ingredients. You can even exclude something specific, for picky eaters!
I might add to this as I go, but start with these and let me know if you have any free suggestions to add!
www.babble.com
A modern parents guide. Opinions, articles, product reviews, and a discussion board with a variety of topics to keep you amused.
www.bbc.co.uk/language
Free lessons in Spanish, German, as well as French just to name a few! They even e-mail you a little certificate once you have completed a twelve week course!
www.ocw.mit.edu
While you won't be able to say you graduated from MIT, you can say you've studied there (maybe?).
www.realsimple.com
While it is a very useful magazine, the website is almost as helpful, and free! This is also the source for several of the other free sites I have mentioned.
www.sba.gov
A small business owners guide. Provided information on business planning, financial resources, local services and other helpful stuff.
www.craigslist.com
I advertise listings, look for for sale by owners, and keep an eye out for things or services I could use. (I am also a huge fan of e-bay!)
www.allrecipes.com
You have chicken and grape jelly in your fridge. Go to this site, click on ingredients, and type in chicken and grape jelly. They provide you with hundreds (depending on the combination of foods you put in) of recipes using those ingredients. You can even exclude something specific, for picky eaters!
I might add to this as I go, but start with these and let me know if you have any free suggestions to add!
Saturday, June 28, 2008
Why do you need a Buyers Agent?
Many times when a home catches your eye, you call the number on the sign in the yard or attached to the ad. Where's the problem? That is the person who is going to know the most about the property, right? Well, I guess you can look at it that way. But the way I see, the agent with the sign in the yard already has an iron in the fire. They have a contract to represent the sellers of that property, and while they can legally represent you as the buyer it is really not in your best interest! Even on my own listings, I would prefer to have another agent looking out for the buyers! True, I could take both sides, and create a fair deal for everyone involved, but that's a tall order. An agent who takes on that kind of a deal cannot aggressively negotiate for either of the parties involved, and cannot disclose information that another agent might be able to.
In addition to limiting the amount of information your shared agent can pass along, that agent is being paid the whole commission. The sellers typically agree to pay a percentage or dollar amount of the sales price of their home to the "listing agent" and to the "buyers agent". It is usually divided 50/50, but if it is all handled by one agent they are entitled to the whole pot! Motivation to get you as the buyer a lower sales price just goes right out the window!
By seeking out your own buyers agent you are:
a. protecting your interest in the property, and all relevant information.
b. not adding any cost to yourself, as it is usually a cost paid by the seller. (If your buyers agent has you sign any type of agreement make sure you are not being charged a retainer fee, mileage, and how they will be paid if you buy a for sale by owner or something similar.)
c. having someone working solely on your behalf to get you the best sales price and terms!
As for finding a buyers agent, I would suggest you go by referral. If you can find someone with something good to say about a Realtor(r), use that agent! Talk to a few Realtor(r)'s and find out what their plan is for you. Finding a home is a time consuming process, and you need to be on the same page with the person helping you look! Don't be afraid to fire your agent if you aren't clicking. Ask them for a referral to another agent, or if they have done something truly atrocious call their broker! If all else fails I'm availible! If I am not the agent for you, I know a few good ones!
In addition to limiting the amount of information your shared agent can pass along, that agent is being paid the whole commission. The sellers typically agree to pay a percentage or dollar amount of the sales price of their home to the "listing agent" and to the "buyers agent". It is usually divided 50/50, but if it is all handled by one agent they are entitled to the whole pot! Motivation to get you as the buyer a lower sales price just goes right out the window!
By seeking out your own buyers agent you are:
a. protecting your interest in the property, and all relevant information.
b. not adding any cost to yourself, as it is usually a cost paid by the seller. (If your buyers agent has you sign any type of agreement make sure you are not being charged a retainer fee, mileage, and how they will be paid if you buy a for sale by owner or something similar.)
c. having someone working solely on your behalf to get you the best sales price and terms!
As for finding a buyers agent, I would suggest you go by referral. If you can find someone with something good to say about a Realtor(r), use that agent! Talk to a few Realtor(r)'s and find out what their plan is for you. Finding a home is a time consuming process, and you need to be on the same page with the person helping you look! Don't be afraid to fire your agent if you aren't clicking. Ask them for a referral to another agent, or if they have done something truly atrocious call their broker! If all else fails I'm availible! If I am not the agent for you, I know a few good ones!
What does a Realtor(r) do for Sellers?
My Marketing Plan
Broken down into stages, this will give you an outline of the services I can provide to you in an effort to sell your home. Everything within this plan is negotiable, and this plan can certainly be added to if you feel something is missing. Keep in mind, your running the show; I’m just doing the work!
CMA: After researching to find the most accurate comps, I will present them in a way that clearly shows how value is determined. I will examine homes that have recently sold, homes that are currently listed, and homes that the market rejected and expired. This will help us keep your home competitive, priced realistically, and get it sold!
Set Best Selling Price: Your home is worth what someone will pay for it. By using the CMA, we will be able to see what people have paid recently for homes similar to yours. If you need to sell the home quickly, we can price the home slightly under market value, if you have the luxury of time, we can place your home slightly above market value to maintain leverage in negotiations.
Home Staging: Part of my job includes going through every bit of your home and neutralizing it for buyers. I try to remove anything that may cause a negative impression of the home. Buyers can be swayed by things that have nothing to do with the actual property, such as personal belongings. It is so important for every buyer who tours your home to have a generally good impression. I am to the point on this issue, and will tell you if your home has an odor, needs to be cleaned; pictures need to be removed, and so forth. Please don’t take these suggestions as personal attacks on your home or family, I am doing my job in making sure your home shows to its potential!
Pre- Listing Inspection: This is an added expense for you as a seller, but in some cases can encourage buyers who have concerns about the condition of the home. A hired inspector will go over the major systems of the home such as heating, cooling, plumbing and electrical, as well as the structure of the home. If there are repairs to be made it can be beneficial to take care of them before the home is placed on the market. If a buyer see’s a home is need of repair they immediately start deducting from the price and that is not what we are after!
Take Photos: After your home is staged to be placed on the market, I will take several photos of both interior and exterior features. I make sure I have at least twenty photos for the MLS and internet advertising, as well as print brochures and other marketing tools.
Custom Brochures: I create custom info sheets featuring your homes most valuable assets to place in the home, as well as the sign in front of the home. I mail this info to your twenty closest neighbors, as well as all real estate offices in town. I want everyone to see how great your home is!
House for Sale!
Once the contracts have been signed I will place a sign out in your yard, a lockbox on your door, and a directional sign at the nearest high traffic intersection. This is just the beginning of the marketing of your home, and while basic it is important that your home be clearly marked as for sale to anyone who may drive by.
Office Tour: An office tour allows my Broker and fellow agents from Bricks and Sticks to view your home and give feedback. If there is anything we have overlooked they will catch it! I use this opportunity to double check the staging and pricing of your home. Any feedback given, positive or otherwise will be passed along to you. Tour is done on a Tuesday morning, and takes about ½ an hour.
MLS and Internet Marketing: I will place your home and all relevant information on both public and professional MLS sites. I will also advertise your home nationally on REALTOR.com, and at Bricks-Sticks.com. Increasing numbers of buyers are searching out homes online before they even contact a Realtor. Both photos and detailed descriptions will attract internet searchers to your home.
Local Advertising: Your home will be advertised in the Journal of Homes, and Homeseekers, both are widely distributed and utilized by buyers in our area. In addition to the print flyers I distribute to neighbors, potential buyers, and other agencies I am also selling your home in person at every opportunity. Contacting other Realtors showing homes in this price range, and encouraging them to show your home. Unique to Bricks and Sticks is the digital billboard on the Yellowstone overpass. Advertising your home on a billboard will get it in front of as many potential buyers as possible.
Realtor Lunches: As soon as possible I will host a lunch in your home. I provide a catered lunch, and invite all Realtors, lenders, and anyone else affiliated with the Pocatello Association of Realtors. This is one of the most effective forms of getting your home in front of people who can sell it, and the turnout is usually large. Allowing agents to spend time in your home, and enjoy a nice lunch provides me an opportunity to really sell them on the features of your home and get them exited to show their buyers. If an agent is exited about a home, it tends to rub off on the buyer.
Public Open House: Open houses are really most effective during the spring and summer. Buyers are at their motivated peak, and eager to spend their Saturday looking at homes without the perceived obligation of using a Realtor and making an appointment. I will have a lender put together some financing information, or try and have a lender attend the open house with me to give interested buyers as much information as possible. I will also deliver invitations to your twenty closest neighbors, encouraging them to bring a friend or family member who may be interested in the neighborhood.
Showings: It is up to you when the home is shown, if there are days or times of day that just won’t work please let me know. Usually in an occupied home we will request that the showing agent call, and if there is no answer go ahead and show. However if you would prefer an appointment be made that can be arranged as well. It may be an inconvenience at times, but it is best to be as cooperative as possible about the showings of your home. I have included a checklist to make sure your home shows its best, look it over and try to keep your home in the best showing condition possible!
Quick Tips for Showing Your Home at its Best!
1. Leave the home! The buyer is trying to imagine themselves living there, and will be self- conscious about thoroughly inspecting things if your there! The Realtor will make sure the buyer isn’t unnecessarily snoopy! You will want to take pets with you if it is to cold for them to be outside during the showing!
2. Turn on the lights and open the curtains! A dark house can be intimidating, difficult to really see, and give an empty impression. I even suggest leaving closet lights on, as well as garage and exterior lights if it is dark out.
3. Make it “homey”. Set the table; arrange logs in the fireplace, leave classical or instrumental music playing in the background and your buyer will feel right at home! Keep the home at a comfortable temperature as well, you don’t want buyers rushing through because they are uncomfortable.
4. CLEAN CLEAN CLEAN! Take out the trash, put the dishes in the dishwasher, and hide laundry in the washer and dryer! Walk outside, and then come back in. Does your home have an unpleasant scent? If you cannot just open the windows, put some cinnamon sticks in some simmering water on the stove. Avoid scented candles, or air fresheners, the artificial smell might signal that you are covering something up!
5. Wipe down any reflective surface with glass cleaner. Faucets, mirrors, appliances, and windows tend to grime up easily, and it shows! By wiping them off with glass cleaner, you create a clean sparkle, and give the impression that the home is immaculately kept. If you have time quickly vacuum or sweep if needed.
Broken down into stages, this will give you an outline of the services I can provide to you in an effort to sell your home. Everything within this plan is negotiable, and this plan can certainly be added to if you feel something is missing. Keep in mind, your running the show; I’m just doing the work!
CMA: After researching to find the most accurate comps, I will present them in a way that clearly shows how value is determined. I will examine homes that have recently sold, homes that are currently listed, and homes that the market rejected and expired. This will help us keep your home competitive, priced realistically, and get it sold!
Set Best Selling Price: Your home is worth what someone will pay for it. By using the CMA, we will be able to see what people have paid recently for homes similar to yours. If you need to sell the home quickly, we can price the home slightly under market value, if you have the luxury of time, we can place your home slightly above market value to maintain leverage in negotiations.
Home Staging: Part of my job includes going through every bit of your home and neutralizing it for buyers. I try to remove anything that may cause a negative impression of the home. Buyers can be swayed by things that have nothing to do with the actual property, such as personal belongings. It is so important for every buyer who tours your home to have a generally good impression. I am to the point on this issue, and will tell you if your home has an odor, needs to be cleaned; pictures need to be removed, and so forth. Please don’t take these suggestions as personal attacks on your home or family, I am doing my job in making sure your home shows to its potential!
Pre- Listing Inspection: This is an added expense for you as a seller, but in some cases can encourage buyers who have concerns about the condition of the home. A hired inspector will go over the major systems of the home such as heating, cooling, plumbing and electrical, as well as the structure of the home. If there are repairs to be made it can be beneficial to take care of them before the home is placed on the market. If a buyer see’s a home is need of repair they immediately start deducting from the price and that is not what we are after!
Take Photos: After your home is staged to be placed on the market, I will take several photos of both interior and exterior features. I make sure I have at least twenty photos for the MLS and internet advertising, as well as print brochures and other marketing tools.
Custom Brochures: I create custom info sheets featuring your homes most valuable assets to place in the home, as well as the sign in front of the home. I mail this info to your twenty closest neighbors, as well as all real estate offices in town. I want everyone to see how great your home is!
House for Sale!
Once the contracts have been signed I will place a sign out in your yard, a lockbox on your door, and a directional sign at the nearest high traffic intersection. This is just the beginning of the marketing of your home, and while basic it is important that your home be clearly marked as for sale to anyone who may drive by.
Office Tour: An office tour allows my Broker and fellow agents from Bricks and Sticks to view your home and give feedback. If there is anything we have overlooked they will catch it! I use this opportunity to double check the staging and pricing of your home. Any feedback given, positive or otherwise will be passed along to you. Tour is done on a Tuesday morning, and takes about ½ an hour.
MLS and Internet Marketing: I will place your home and all relevant information on both public and professional MLS sites. I will also advertise your home nationally on REALTOR.com, and at Bricks-Sticks.com. Increasing numbers of buyers are searching out homes online before they even contact a Realtor. Both photos and detailed descriptions will attract internet searchers to your home.
Local Advertising: Your home will be advertised in the Journal of Homes, and Homeseekers, both are widely distributed and utilized by buyers in our area. In addition to the print flyers I distribute to neighbors, potential buyers, and other agencies I am also selling your home in person at every opportunity. Contacting other Realtors showing homes in this price range, and encouraging them to show your home. Unique to Bricks and Sticks is the digital billboard on the Yellowstone overpass. Advertising your home on a billboard will get it in front of as many potential buyers as possible.
Realtor Lunches: As soon as possible I will host a lunch in your home. I provide a catered lunch, and invite all Realtors, lenders, and anyone else affiliated with the Pocatello Association of Realtors. This is one of the most effective forms of getting your home in front of people who can sell it, and the turnout is usually large. Allowing agents to spend time in your home, and enjoy a nice lunch provides me an opportunity to really sell them on the features of your home and get them exited to show their buyers. If an agent is exited about a home, it tends to rub off on the buyer.
Public Open House: Open houses are really most effective during the spring and summer. Buyers are at their motivated peak, and eager to spend their Saturday looking at homes without the perceived obligation of using a Realtor and making an appointment. I will have a lender put together some financing information, or try and have a lender attend the open house with me to give interested buyers as much information as possible. I will also deliver invitations to your twenty closest neighbors, encouraging them to bring a friend or family member who may be interested in the neighborhood.
Showings: It is up to you when the home is shown, if there are days or times of day that just won’t work please let me know. Usually in an occupied home we will request that the showing agent call, and if there is no answer go ahead and show. However if you would prefer an appointment be made that can be arranged as well. It may be an inconvenience at times, but it is best to be as cooperative as possible about the showings of your home. I have included a checklist to make sure your home shows its best, look it over and try to keep your home in the best showing condition possible!
Quick Tips for Showing Your Home at its Best!
1. Leave the home! The buyer is trying to imagine themselves living there, and will be self- conscious about thoroughly inspecting things if your there! The Realtor will make sure the buyer isn’t unnecessarily snoopy! You will want to take pets with you if it is to cold for them to be outside during the showing!
2. Turn on the lights and open the curtains! A dark house can be intimidating, difficult to really see, and give an empty impression. I even suggest leaving closet lights on, as well as garage and exterior lights if it is dark out.
3. Make it “homey”. Set the table; arrange logs in the fireplace, leave classical or instrumental music playing in the background and your buyer will feel right at home! Keep the home at a comfortable temperature as well, you don’t want buyers rushing through because they are uncomfortable.
4. CLEAN CLEAN CLEAN! Take out the trash, put the dishes in the dishwasher, and hide laundry in the washer and dryer! Walk outside, and then come back in. Does your home have an unpleasant scent? If you cannot just open the windows, put some cinnamon sticks in some simmering water on the stove. Avoid scented candles, or air fresheners, the artificial smell might signal that you are covering something up!
5. Wipe down any reflective surface with glass cleaner. Faucets, mirrors, appliances, and windows tend to grime up easily, and it shows! By wiping them off with glass cleaner, you create a clean sparkle, and give the impression that the home is immaculately kept. If you have time quickly vacuum or sweep if needed.
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