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Posts Tagged ‘listings’

Short Sale Pricing

13 Jan

If you find yourself in the short sale situation, then selling your home is a different story.

You might be receiving letters and postcards from Real Estate Agents talking about listing your home as a short sale.  After all, they have looked at the tax rolls which are public records and the notice of default shows up.   After you have missed 3 months payments the bank will file a notice of default with the county.

Interview 3 Agents to see what they can do for you.  All 3 should tell you the same thing – you must have a hardship to be able to short sale your home.  Without a hardship, the banks will not grant a short sale.  A hardship is loss of employment, death, divorce or illness.  In other words, an event that caused you to get behind in your payments.  Loss of equity does not qualify you to short sale your home.  Sorry if someone has told you otherwise but claiming a hardship and proving it will be necessary.  You will be asked to write a hardship letter that will be submitted to the bank(s).

If you have a true hardship, the banks will also require that you give them copies of your last 2 years tax returns, current paycheck stubs and two months bank statements.  Make copies and give them to the Real Estate Agent that you have chosen.  They will have to prepare a short sale package to go along with an offer.

When you go to price your home, the best advice I can give is to go with Market Value.  Some agents prefer to price a little under market value to create a buzz about your home so that you will have multiple offers to choose from.  During the time that you are waiting for your home to be approved for a short sale, the bank(s) will send out an appraiser.  The bank will want to know the value of your home.  Hopefully the offer you and your Agent have sent to the bank will be the same amount that the bank’s appraiser tells them that it is.  Otherwise, they will have you adjust it.

 

 
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Posted in Homes For Sale, Real Estate Update

 

Price Your Home At Market Value

11 Jan

Market Value – what is that?  Real Estate 101 defines market value as the price, a ready willing and able buyer is prepared to pay for a home.

Another definition:  The sale price at which a property would change hands between a willing buyer and willing seller, both having reasonable knowledge of the relevant facts.

And another definition:  Fair market value is the value of a property, based on what a knowledgeable, willing buyer would probably pay to a knowledgeable, willing seller in the real estate market.

The Realtor you have chosen to represent you in the sale of your Home has given you “the comps” which are the comparable recent sales of similar homes in your neighborhood.  Realtors know what appraisers know about comps – compare homes by similar square footage, age, amenities, bedrooms and neighborhood.   The comps don’t lie.  Review them with your Realtor.  Drive by the houses that you are comparing.  When you are comparing homes that are currently on the market that are similar to yours, ask your Realtor to show them to you.  It will open your eyes and you will begin to see what Buyers see.

When you feel sure that you have all the information you need to price your house, ask your Realtor to give you a price range that they think your home can be priced.  Think about where you want to be positioned in the Market.

Then price your home at Market Value – not above, that doesn’t work any more.  The homes that are selling right now are priced well.  You might be tempted to price high but you don’t need wiggle room, you need Agents to show your house to prospective, well-qualified Buyers.  You need your house to sell in a reasonable amount of time.  In the Inland Empire where the market is very fast and competitive, if a Buyer sees a home that has been on the market for more than 30 days the first thing they ask is, “What’s wrong with it?”

You need to move on with your Life – so price your Home at Market Value!

 

 

 
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Posted in FHA, Homes For Sale, Real Estate Update

 

Hiring a Real Estate Agent

10 Jan

Hiring a Realtor to sell your house is a big step.  Interviewing several local Realtors is recommended.  You might have notepads, pens, calendars and various marketing items that have been sent to your home over the years.  The agent that has been giving you these items is telling you that they “work the neighborhood” and know it well.  So be sure to include that agent in your interviews.

So what do you look for in a Realtor?  Same thing you would want in any other professional: Integrity, honesty and good work ethics.   All the Realtors you interview will have comparable sales for you to review.  These are facts that won’t change from one Realtor to the next.  They all should give you a marketing plan of how they will market your home.  This should include a detailed list of items they promise to do for you such as putting up a sign, making flyers and keeping a good supply in the flyer box, promoting your home at their office meeting, advertising in the local paper.   If you want your Realtor to hold Open Houses, then let them know.  Some Sellers don’t mind having a couple of Open Houses when the house is fresh on the market.  I would encourage you to allow your agent to do at least one.  I tell my Sellers that by doing an Open House I can get feedback from the Buyers.  Buyers are smart and they know what the market is like because they are out there looking.  They have the internet to search and once your home is on the market there are sites like Redfin.com that give information on the last time your house sold, taxes, schools and neighborhood safety.

Let’s talk about lockboxes.  I highly recommend that you have one on your home.  Why?  Because if a buyer’s agent has 5 or 6 homes to show and yours is the only one that doesn’t have a lockbox and has limited viewing times then be prepared for your home to sit on the market for a long time.  If you can’t see it, you can’t sell it!   After all, you have packed up all your valuables and readied your home for sale, put a lockbox on it -  they give your Realtor information about what time your house was shown and who showed it.   I know there are special circumstances, small children’s nap schedules and dogs that need to be put in the dog run but if you really want to sell, you will figure out with your Realtor how to get arrange these things.

Last but not least – pick a Realtor that you LIKE.  That’s right, you need to feel comfortable calling, texting and emailing your agent.  They need to be there for you.  Ok, I’m getting on a tangent here but if you see your agent on a billboard, they probably aren’t the agent for you.  Why?  Because you will probably only see that Realtor once – when they come for the interview.  After that you will be dealing with an assistant.   In my opinion,  you deserve better.  There are many intricate details that can get lost in translation if you are dealing with assistants.   Selling a home is a personal thing that most people go through only a couple times in their lifetime.  Hire the Realtor with a heart and you won’t go wrong.

 
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Posted in FHA, Homes For Sale, Real Estate Update, Title

 

What Are Your Plans for 2012?

09 Jan

Is this the year you will sell your Home?   What’s the next step?

Its been 5 years into this current economy and you have waited long enough for the market to stabilize.  You are tired of waiting for prices to go up and have heard that they probably won’t in the next couple of years.  So you want to sell and move on with life.

Are you going to take advantage of the great prices and move up?  What you will find is that between the unbelievably great interest rates and low home prices, this is quite possibly the best time ever to move up.  Call a lender to check your financial position.

Will you downsize to a condo or smaller home?  What about renting?  Renting  takes away the responsibilities of homeownership such as painting, fixing, yard work.  Do you want to free up your time to travel, take on a project or pursue a new career?

Whatever you decide, get the wheels turning in the right direction.  Make a list of things to accomplish and give yourself a time limit.  Will it take 30, 60 days or longer to put your house on the market?  Start reading everything you can about selling a house.  Talk to your accountant and tax person.

Looking at Zillow.com and Trulia.com is a good idea too but don’t bank on their numbers.  You will get a good idea what your house is worth but call a local Realtor and make an appointment to get a better idea about what your home can sell for.

If you find yourself selling your parent’s home which many Boomers are doing, then this is an especially important crossroad.  It’s not easy to do.  I have assisted many clients and friends take this journey and all I can say is “take it easy” unless you have to rush due to financial reasons.  On average I find that it can take a year or so to accomplish.  It will all come together but usually there are siblings and other family members that need to weigh in on what the right thing is to do.  Keep the family peace by having a “talk” early on.  Have one or at most two decision makers that live closest to the home in question.  That decision maker can communicate to family members the progress of the sale.  And don’t hesitate to rely on your Real Estate Agent.   They can be a wealth of knowledge and help get you the answers you need.

 
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Posted in Escrow, FHA, Homes For Sale, Real Estate Update

 

Happy New Year 2012! Is This the Year to Sell Your Home?

03 Jan

It is a hopeful time of year – New beginnings are on all of our minds as we start this first week of the new year.

Is this the year to sell your Home?  Have you been “waiting out the market” hoping for better prices?  Five years have come and gone since the “good old days” of high prices.  Reality has set in and we now know that a house is a Home first and foremost.  Everyone needs a place to call Home.

So if you are thinking about selling in 2012, here are 5 things to do to get ready:

1.  Clean up – no one likes a dirty house.

2.  Fix anything that is broken.

3.  Figure out what is your next step – will you down-size, move up, rent?  Get your plans together

4.  Hire a Real Estate Agent that you like and that understands Your needs.

5.  Price your Home at Market Value – don’t be tempted to go higher – it does not work anymore.

 

 
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Posted in Escrow, FHA, Homes For Sale, Real Estate Update, Uncategorized

 

Top 5 Blogs Posts of 2011

30 Dec

  2011 was my first full year of blogging.  I kept my resolution and posted sometimes twice a week!

I learned a lot about what my audience is looking for when it comes to real estate information.  You want to know the steps for buying a House!

In January 2012  I will start blogging about Selling a House giving step by step information on what to expect in this ever changing market.   I think 2012 will be the year that Sellers finally “get it”.  Meaning that prices are not what they were 5 years ago and they won’t be for many years to come…..sorry about that!

Here are the top 5 blogs of 2011:

5.  12/5/11 Walk Thru

4.  9/23/11  House Hunting – Short Sales

3.  9/5/11  Find A Realtor

2.  9/2/11  What do I need to know when Buying a House?

1.  7/23/11  Not All Homes listed for sale are for sale?

p.s.  If you haven’t already seen my intro video – here it is!

Thanks for following me this year – see you in 2012!

 

 

 
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Posted in Escrow, FHA, Homes For Sale, Real Estate Update

 

Close of Escrow

09 Dec

Step 16

Congratulations!  Escrow has closed!

You’ve been waiting for your Realtor to say this for the last 30 days!  Your lender has “funded the loan” for your new home and escrow has reported to your Realtor that the grant deed has been recorded at the county recorder’s office.  That event signals that Escrow has closed!

It seems that this time period has lasted forever but soon it will be a story that you will be sharing with your friends and family for years to come – you survived buying a Home!  You have accomplished the All American Dream of Home Ownership!

Hope you have been packing because tomorrow is moving day!

 

 

 
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Posted in Escrow, FHA, Homes For Sale, Real Estate Update, Title, Uncategorized

 

Home Appraisal

14 Nov

Step 13

As soon as you have acceptance of your offer, your lender needs to be notified so that he can order an appraisal.

The appraisal process has changed in the last couple of years. Let’s suffice it to say that the appraiser is randomly picked from a pool of appraisers.

The appraiser will meet with the listing agent at the property. They measure the dwelling and inspect the neighborhood and recent sales. The buyer will be given a copy of the appraisal.

Once the appraisal is back at the lender’s, the lender will put in motion the final “conditions” of the loan process.

Should the appraisal not come in at the agreed upon price, then that opens up negotiation again. Both Seller and Buyer will have to agree to go with the appraised value or escrow “falls out”.

 
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Posted in FHA, Homes For Sale, Real Estate Update, Uncategorized

 

Multiple Offers

09 Nov

I sort of skipped over the multiple offer situation but would like to talk about it now.

For most of my career in real estate in the Inland Empire I have been more of a Buyer’s agent. During these years what I have experienced is multiple offers on most homes for sale.

There is a huge demand for homes and the proof is the fact that every time, and maybe you think I’m exaggerating but it is true, every time I write an offer there are other offers on the same house. It doesn’t matter the price of the home, it can be $125,000 or $950,000 and there are more than one offer that my Buyer has to compete with. So that is the word I want you to remember – compete.

Because the number of homes for sale is low, the demand is high, there is no place for low-ball offers. If the house proves to be well priced, then offer your best. Especially when you are dealing with a bank owned home. The bank will always come back to the listing agent and ask for “Highest and Best”.

Yes, I know you say you don’t want to get in a “bidding war” but if you want to buy a home in this area, you will be competing. Read some of my earlier posts and you will find that competing is not only about price but the terms of your offer.

 
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Posted in Homes For Sale, Real Estate Update

 

Acceptance of Your Offer

24 Oct

Step 10

After negotiating the details of the offer, you have what is referred to as Acceptance. The date of acceptance is the key to escrow. The date of acceptance will be used and referred back to throughout escrow.

For example, 17 days after the date of acceptance, is the time allowed for in the contract(California contract) for you as the Buyer to conduct all inspections of the property. This is very important because at the end of the 17 day period the Seller will ask you to remove this contingency.

Let’s talk about contingencies, there are 3. You have the inspection contingency, the appraisal contingency and the loan contingency. This means that the house needs to pass inspection, the appraisal has to come in at the agreed upon value and the loan must be in place and ready to “fund” by your lender of choice. If any one of these contingencies do not happen, then the escrow “falls out” – no sale. Now you know what it means when you hear that a house has “fallen out of escrow”!

 
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Posted in FHA, Homes For Sale, Real Estate Update

 
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