The Holidays is a GREAT time to SELL your home!

While many people are taking their home off the market, because they believe that there are no home buyers out there, they are just making the odds of selling your home better.

Your home will never look better, or smell better.  With all the Christmas trimmings your home will invoke pleasant memories of happy times for potential buyers.

You may think that having your home on the market will interrupt your festivities.  But if you really think about it you are probably only entertaining one or two days during that time.  It would be better to decline and reschedule showings rather than to take the home off of the market for a month or more.

People looking during this season are serious.  Most people are very busy during this time and will not waste time looking at home unless they need to move.  So while you may have fewer showings they will likely be more serious buyers.

Many corporate relocations are starting new jobs in January as the new budget year begins.  These buyers will be looking in November and December, and there will be fewer homes to choose from, making the odds of selling your home better.

 If you are serious about selling you keep your home on the market until it sells.  You never know when the right buyer for your home will come along. 

My husband and I found our current home during the week between Christmas & New Years.  He had a little time off- as do many buyers during that time.  The holidays always reminded me that I wanted a larger home to entertain in- we ended up getting exactly what we wanted.  Had the home not been on the market, it may not have pushed us to act quickly.

Staging Your Home During The Holidays.

Selling your home over the holidays is a balancing act.  You want to enjoy the holidays with all of the trimmings; however you need to be careful not to clutter the house up so that buyers can see the features of the home.

We would suggest that you focus on no more than three areas of the home to decorate for Christmas.  The Front Door. 

A fresh wreath or some greenery will make a welcoming backdrop to the whiteness of winter.  A garland along the rail or over the door can be very attractive.  Stores now have smaller outdoor trees that they sell in pairs to place on either side of the front door. 

The Fireplace. 

If you are lucky enough to have a fireplace, this is a great place to add some greenery.   If not add a table cloth to the dining table and some seasonal trim that will accent the colours of your home. 

The Christmas Tree.

If your family has a Christmas tree make sure that it does not clutter up the room, you may need to make room by removing a chair or other item of furniture.  Make sure that it does not block any doorways.  Try to use a theme of no more than three colours for your decorating, such as red, gold and green or blue, silver and white.   If you wrap your gifts in these colors as well it will really add to the theme of the home.

If you do not have a tree, a poinsettia will add a splash of colour and warmth to any room and is also non-denominational. 

If you have time to bake your home will smell great for showings, if you are like most people and don’t throw some vanilla in a pot of water and let it simmer before a showing.  You can also touch the light bulbs with vanilla for a welcoming scent as buyers come in the front door.  Please avoid artificial scents as they just make people wonder what you are trying to hide. 

Remember to leave the lights on, especially at the front door.  With it being dark early you don’t want a buyer tripping as they come up the front steps. 

If you can wait until at least December 1^st (the 15^th would be better) before putting up the tree, and make sure that you have it down by January 6^th, you can have your traditional Christmas and have your home on the market,  just in case that RIGHT buyer shows up.

Do's & Don'ts of Outdoor Holiday Lighting

Driving through neighborhoods, admiring the bedazzled roof lines and ridges, it's easy to spot the eyesore that ruins it for the entire block.

It's the house with 10,000 blinking, multicolored lights set to Yuletide carols with a giant inflatable Rudolph in the front yard.

There will always be the "bigger is better" crowd when it comes to holiday decorating. They want wattage. Lots of eyeball assaulting, bright lights. But resist the urge to make it a National Lampoon's Christmas.

"I've always been a firm believer that less is more," said Bill Hughes, the manager for the lighting department at Amini's Home, Rugs and Game Room in Chesterfield. "Tasteful never goes out of style."

We consulted with some of the area's outdoor lighting experts for their tips on how to get the most bang for the least amount of money and effort.

More consumers are switching to LED lights for decorating outdoors, according to several local installers.

The upfront price is about twice as much as conventional incandescent lights. But the energy-efficient LED lights use less power and require far fewer repair and service calls, installers say. Over time, they can be a better investment.

Plus, the technology has improved, so the LED color, which used to cast a bluish hue, is truer to white.

"Within the last year, the color temperature and color rendering of the LEDs has improved," said Mark Sullivan, owner of Sully's Landscape Lighting and Design in Kirkwood. "People don't like that cool blue look."

For DIYers, he suggests choosing LED lights marked "warm light" rather than "cool light." The color rendering index should be above 80, he said.

Michael Rottler, president of Rottler Pest and Lawn Solutions, says he won't mix LEDs with incandescent lights because his wife can spot the difference.

"My wife notices little details," he said.

Sullivan says the advantage of wrapping tree branches in conventional lights is that they can be cut and thrown away at the end of the season, with much lower labor costs for those hiring professional installers.

But the trick is to put some time into planning and thinking about the design before bringing out the ladder and boxes of decorations. They don't have to be hung the same way every single year.

Here are the experts dos and don'ts of outdoor lighting to make sure your display spreads holiday cheer not eye strain headaches.

Dos

• Use more light if your house sits farther back from the street to enhance its curb appeal.

• Leave at least a foot between the edge of the driveway and staked lights when lining your driveway. If a driver backs out too close to the edge, he shouldn't take out a row of lights.

• Create a flow of light that moves the eye from one area to the next. Avoid "hot spots" of lights bunched in one area.

• Illuminate more than just the facade of your home to create depth.

• Use special lighting effects sparingly, such as a red or green gel pack that can filter the color of a white light.

• Incorporate seasonal lighting with your outdoor landscape lighting. Consider how the pre-existing lights can be used to enhance or complement the holiday lighting.

• Carry the design style from within your house to the outside.

• Add pre-lighted wreathes and garlands to doors and columns. Pre-lighted candles in windows are a classic look.

• Highlight architectural features such as roof lines, chimneys, peaks, windows and ridges.

• Get your spouse's input before installing. There's no quicker way to lose the holiday spirit than getting back on a ladder to redo the lights.

Don'ts

• Don't mix LED and conventional lighting, especially on the same structure. If you choose to do your house in LEDs, and wrap the trees or drape bushes with conventional lights, the difference in hue may not be as jarring.

• Don't stick with all green or red lights, which can look commercial rather than homey.

• Don't try to make hanging icicles work on a modern home. They look best on a bungalow-style house.

• Don't use as many lights if decorating with LEDs as opposed to traditional halogen lights. The lights are brighter, requiring fewer in number.

• Don't light everything.

Courtesy of STLToday, Aisha Sultan.

Sell Your Home in Todays Market!

While certain tips like properly staging your space will help get your home sold no matter what the economic climate, picking a talented real estate agent is one of the most crucial assets in getting your home sold fast and for the right price.
During the summer this is especially important to consider because buyers and sellers are less available due to vacations and kids being home on summer break. If you don’t have a dedicated agent you might not receive the customer service needed to get your sale closed.
Many agents are thriving in today’s market, so an easy way to find someone well qualified is to do some research- who is winning awards in your area and what are they doing to differentiate themselves from the competition? If you know someone that has recent bought or sold a home ask them for advice, or even a referral.
Before hiring your agent ask: What was your most challenging sale, what made it so difficult, and how did you ultimately get the home sold? This will tell you if the agent has experience and if they have the tools necessary to get your home sold.
Also, get realistic comps and price your home accordingly. If your home and a similar home across the street are on the market do something to differentiate yours from theirs whether it be lowering the price or putting some extra time, and perhaps a little money, into staging it properly.
Don’t take offense if you get an offer that is low, make a counter-offer. Let go of the emotion you’ve invested in your home. Be detached, using a business-like manner in your negotiations. You’ll definitely have an advantage over those who get caught up emotionally in the situation.
Ultimately, the best way to get your home sold in any economy is to know the market, work hard, and be realistic. By carefully choosing the right agent or team to make the sale you are setting yourself up for quick success.

Are Open Houses Still Worth It?

Industry watchers evaluate the practicality of holding open houses in today's market
By John Voket
RISMEDIA, Jan. 16, 2007-In this age of "virtual tours," "talking houses," and practically every real estate client using the Internet during some segment of their new home search, is the practice of hosting open houses becoming impractical?
While precise figures on the exact number of home sales directly resulting from open house visits remain elusive, it is clear that real estate professionals and industry watchers from across the nation believe the "open house" still plays a vital role in the overall strategy of marketing homes for sale.
Sharon Luther, a Realtor, mediator, and member of the Professional Standards Council, Bay East Association in Castro Valley, CA, bemoaned the lack of hard data to substantiate whether or not open houses serve any relevant purpose.
She suggested in the current market situations where time on the market is increasing markedly and buyers are driving hard bargains, sellers want to see their Realtor "working."
"I think this may be one of the primary reasons why many agents are forced to hold homes open," Luther said. "But in this day and age, most people are hooked in (to considering certain homes) by the Internet, and almost everybody seriously looking to buy a home is pre-qualified, so many of the reasons why we used to hold open houses are no longer applicable."
Delores A. Conway, Director of the Casden Real Estate Economics Forecast at USC's Lusk Center believes that in a hot market a seller has a lot of power because houses don't stay available for long.
"But in a slowing market, houses are staying on longer," she said. "Now the Open House serves as a showcase for the home, and highlights differences to the buyers who have many more options."
Conway believes if Realtors don't hold open houses, their clients will be at a disadvantage. While she concedes that buyers are doing a lot more homework on the Internet, she said open houses still provide a lot more information than the Internet listing.
"Open houses are typically used in normal times, and the cost to hold them is justified because of the competition in the market," Conway said. "While percentages of sales from open houses vary widely, some areas attribute a significantly higher number of sales (to the pratice)."
John Ansbach of RECON Intelligence Services agrees that in recent years, agents have been shying away from open houses as a networking and referral tool.
"None of our clients are stopping it, but it is no longer the consumers' exclusive experience. While in the future, it might be challenging to prove their value in the larger scope of the overall transaction, I think today open houses still earn their keep," Ansbach said. "For a vast majority of professionals it is still a viable experience, and an exhibit of value to both the seller and the buyer."
According to a 2004 survey by the National Association of Realtors, 87 percent of home buyers found open houses very or somewhat useful in their home search.
A 2003 NAR survey showed 72 percent of 3,000 buyers, "…drove by or viewed a house for sale as a result of an Internet search. While 46 percent walked through a house visited online.
Ann Garti, CEO of the Orange County Assoc. of Realtors said judging from the open house announcements in weekend papers in her region, she believes the practice still has purpose.
"However, I have no way of knowing the amount of traffic generated," Garti said.
She pointed out that Prudential Douglas Elliman do full page ads in the NY Times, and Weichert Realtors also use the full-page print advertisement to showcase open house opportunities extensively.
Ann Guiberson, President/CEO of Pinellas Realtor® Organization in Clearwater, Florida agrees with Garti.
"There has been a huge up-tick in open houses; however for years my members have said they are not really effective in helping to sell the home" Guiberson said. "They do it because it makes the seller feel good, and sometimes the Realtor who sits on the open house gets some leads."
Guiberson observed that overall, the real estate industry seems to be returning a era where they are trying to, "go back to the basics. But at the same time, (the industry is) resurrecting tactics that were not especially effective in the last transitioning or buyers' market," she added.
As far as Sharon Luther is concerned, open houses in a world providing a wealth of other electronic options potential buyers can access from the comfort of their own home or desk heavily weigh against this "old school" marketing practice.

Short Sales 101- Your Questions Answered.

"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.

RIS Media 7/19/11

3 Tips for the First-Time Home Seller

3 Tips for the First-Time Home Seller

By Dana Dratch

Today’s buyer-take-all bonanza is a boon for fence-sitters and buyers with great credit and deep pockets. But sellers are steeling themselves to new realities that include paying (rather than making) money at the closing table, providing extras to sweeten the deal, and spending more time and cash making the home camera-ready.
For first-time sellers who have never been through the process before, it’s a different world. One where the value of the house isn’t measured in the profit made on the sale, but by the enjoyment the owners had from living in the home.

Here are three things experienced sellers would tell you, if they could.
Price it realistically from the start
“Your largest number of showings will occur in the first two to three weeks,” says Mark Ramsey, a broker in Charlotte, N.C. One reason: “The (multiple listing service) systems and the Internet tend to drive the majority of showings,” he says. Many buyers are plugged in electronically. So the minute something new pops up that meets their criteria, they want to see it.
Take advantage of that sweet spot by pricing the house competitively right out of the gate, he says.
When first-time sellers James and Emily Foltz put their Oklahoma City home on the market last summer, their agent gave them a comprehensive list of the initial asking prices of nearby homes like theirs, along with the final selling prices. “Some varied by $30,000,” says James Foltz.
It gave them an X-ray of their market.
How you style the price is important. The Foltzes first marketed their home for $155,000. But lowering it to $150,000 meant the listing appeared within the computer search parameters that buyers commonly used in that price range, Foltz says.
The result: A few weeks after the price change, they had a winning offer.

Be prepared to lose some money
Want to sit with a house that won’t move? Be the first-time seller who insists you can get the appraised value, the tax assessor’s estimate or whatever you paid a few years ago.
“It seems like there’s no relationship between your assessed value, taxable value and the actual market value of our house,” says Pat Vredevoogd Combs, past president of the National Association of REALTORS®. “There doesn’t seem to be any correlation.”
The truth is that your house is worth what buyers are willing to pay. No more. “This is a true market that Adam Smith would have loved—totally based on supply and demand,” Combs says. That means many buyers should be prepared to lose some money or hang onto the home until the price rises.
“We did end up taking a loss,” says Foltz, who wrote a check for $3,000 at the closing table. The good news is that the couple sold their home in less than two months.
Beware the agent who promises big profits, Combs says. That person may just be after your business. “Don’t go with anyone who doesn’t use comps,” she says. And study sales prices, not asking prices, for real estate.

Promotion, promotion, promotion
One question to ask yourself and pose as you interview agents: How will you reach the home’s target market?
“You have to consider who your most likely buyers are for what you’re selling and cater to that group of people,” Ramsey says.
Targeting 20-somethings who live on their smartphones? You need to effectively access the networks your buyers are tapping to find their next home. One big trend: QR (or “quick response”) bar codes that allow smartphone users to access property information electronically, he says.
The typical starter home can also appeal to downsizing empty nesters, says Ramsey. To serve their needs, you might also want to have a phone number that instantly reaches someone who can provide details and answer questions, he says.
And don’t neglect the modern version of curb appeal: using lots of photos on real estate listings’ websites. However you market your house, you need a good number of clear, well-lit, professional-quality pictures that show your house at its best.

RIS Media 6/14/11

Nearly Half of Home Buyers Surveyed Don’t Understand Essential Information about Mortgages!

As the housing market continues to struggle, home buyers appear ill-prepared to take out a mortgage, answering basic questions about mortgage information wrong nearly half (46 percent) of the time, according to a Zillow® Mortgage Marketplace survey. In fact, 44 percent admitted they are not confident in their knowledge of mortgages or the mortgage process. Zillow® Mortgage Marketplace, with Ipsos, surveyed prospective home buyers, asking them to gauge their own knowledge of mortgages, and asking basic questions about mortgage facts.
More than half (57 percent) of prospective home buyers who were polled do not understand how adjustable rate mortgages (ARMs) work. When asked if interest rates on 5/1 ARMs always reset higher after five years, the majority of home buyers answered yes. In fact, the interest rate will adjust to the prevailing rate after five years, even if rates have declined. Currently, many borrowers whose ARMs have recently reset have lower interest rates than they did when they took out the loan.
Additionally, one-third (34 percent) of the respondents who are prospective home buyers do not understand that lender fees are negotiable and that they vary by lender. They believe lenders are required by law to charge the same fees for credit reports and appraisals, when in fact home buyers can save money by shopping for the lowest fees.
“Most people wouldn’t jump out of a plane if they didn’t know how to use a parachute, yet each year many buyers commit to the largest loan they will take out in their lifetimes without understanding essential information about mortgages,” says Zillow Mortgage Marketplace Director Erin Lantz. “By simply spending a few hours researching how a mortgage works, and by shopping around for the most competitive rates and fees, buyers can save a lot of money.”
Additional Survey Findings
• Nearly half (45 percent) of polled prospective home buyers believe that they should always buy mortgage discount points when obtaining a mortgage. However, because mortgage discount points are simply prepaid interest, the decision should depend on how long you intend to own the home. In some cases, you may not plan to remain in the house for long enough to break even after buying points.
• More than half (55 percent) of prospective home buyers in the study do not understand that mortgage rates vary throughout the day. In reality, mortgage rates can change rapidly, similar to how stock prices can change throughout the day. To get the optimum rate, it is important to monitor rates and shop around.
• More than one-third (37 percent) of prospective home buyers who were polled believe that pre-qualifying for a loan means they have secured financing. In fact, “pre-qualification” is used to describe the earliest step in the process when a lender approximates how much you can afford, but does not run your credit or request any sort of documentation to verify the information you provide. Although there is not a reliable industry standard definition of pre-qualification, it is not until a lender has approved your loan application without conditions that you can rest assured that the lender has committed to financing your loan.
• More than two in five (42 percent) of the polled prospective home buyers do not understand that Federal Housing Administration (FHA) loans are available to ALL buyers. Instead, they believe only first-time buyers qualify. FHA loans can cost less for many buyers, including repeat buyers with low to average credit scores and with down payments of less than 20 percent.

RIS Media 5/5/11

4 Things First-Time Home Buyers Need to Know about Home Inspections

4 Things First-Time Home Buyers Need to Know about Home Inspections

RISMEDIA, April 21, 2010— A professional home inspection can not only provide a great education about the home’s systems, but also be a crucial tool in negotiating the most equitable price on the home, according to HouseMaster, one of the first and largest home inspection franchisors in North America.
“Our experience and research shows that approximately 40% of resale homes have at least one defect that can cost a home buyer a minimum of $500 to repair,” said Kathleen Kuhn, President of HouseMaster.“A home inspection by a professional and qualified home inspector is an excellent tool to encourage home sellers to make repairs or make further price adjustments as a result of conditions noted in the inspection report.”
According to the National Association of Realtors (NAR), in 2009, a record 47% of homes sold were purchased by first-time buyers. Tax credit incentives from the federal government of up to $8,000 and historically low mortgage rates continue to attract first-time buyers to the market. A professional home inspection not only educates buyers on the condition of the home but can minimize costly surprises down the road. HouseMaster provides the following tips to ensure that first-time buyers make an educated decision when purchasing a home and get the best price possible.
1. Inspect the Inspector. Only hire a home inspector with an excellent reputation and credentials. Ask how long the company has been in business, ask about specific formal training and ongoing education the inspector has and verify the inspector carries professional liability insurance also known as “Errors & Omissions” (E&O). If the company doesn’t carry this insurance, it could indicate a poor track record or lack of experience.
2. Ask for a sample of a report. The credentials of the inspection company and the quality of the final inspection report will be important. A poorly prepared report without pictures or clear, concise details addressing all the various systems and accessible elements of the home is less likely to be taken seriously by a home seller.
3. Inspect ancillary systems. It’s hard for first-time home buyers to know what they need, so be sure to ask what additional services the company offers. If the home you are considering has a septic system for example, a professional home inspection company may offer septic system inspections or can coordinate that service for you. Generally, the company will offer you a multiple services discount as well as the added convenience of only having to attend one inspection appointment. Other common services offered by home inspectors are termite inspections, mold screening, water testing and radon testing.
4. Go along on the inspection. Ask the inspection company if they encourage buyers to tag along on the inspection. If the inspector discourages you from going along and asking questions, find another inspector. A home inspection is not simply a laundry list of what is wrong with the home. In addition to documenting issues and needed repairs that may exist, a professional home inspector will also show the new buyer how to operate the various systems in the home and provide tips on improving energy efficiency and maintaining the home in general. And being present during the inspection will make the final written report that much more meaningful.

RIS MEDIA 4/21/10

Clean Your Kitchen!

10 Tips for a Cleaner, Safer Kitchen

By Kathleen Purvis  Print Article

The first day of spring has come and gone. To get the cleaning season started right, we looked for the best advice on cleaning the busiest—and maybe dirtiest—room in the house: the kitchen.
For a list of what we should clean, how and when, we asked a bunch of germ experts.
The biggest surprise? People with pets are six times more likely to get salmonella-based infections. The culprit is pet bowls, particularly the water bowl. We often dump it in the sink before we start handling food.
Want to sanitize?
Professional kitchens use a sanitizing solution made with one teaspoon household bleach in four cups of water. It’s sprayed on counters and cutting boards. Experts disagree on the need to use it at home, but if you do, do it correctly: Let sprayed surfaces air-dry—drying with dish towels may recontaminate the surface. Always clean before you sanitize. If chlorine comes in contact with dirt or soil, it can no longer sanitize. Don’t use more than one teaspoon chlorine—stronger isn’t better. And change it about every five days. Chlorine dissipates quickly.
1. Microwave
Fill a bowl with two cups water and a whole lemon, cut into slices. Place it inside and microwave for two minutes, then wipe it out with paper towels. The hot water softens food spills and the lemon cuts grease and keeps the microwave smelling fresh
2. Stove and oven
Spray stove spills with an all-purpose cleaner and let stand 10 minutes for easier cleaning. Oven spills aren’t a food hazard if you regularly heat the oven to 400. Cover a fresh spill with salt until you have time to clean it.
3. Counters
Clean regularly with an all-purpose cleaner. Spray with a weak bleach solution and air-dry if needed.
4. Dishes and dishwashers
If you hand-wash dishes, be sure to air-dry them in a rack as dirty or wet dish towels can recontaminate clean dishes. To reduce soap buildup in a dishwasher, occasionally fill the soap dispenser with baking soda or place a small cup of vinegar on the top shelf, then run the dishwater empty.
5. Sink, drain and faucet handle
Clean regularly with household cleanser, especially after washing or rinsing raw meat. Don’t forget to clean the faucet handle.
6. Refrigerator
Every day, wipe down the handles, including the underside. Every week, throw out anything that’s past its date or shows age. Every three to six months, empty shelves and clean the inside with 1/4 cup baking soda in one quart warm water, then spray with a bleach solution and air-dry. Remove drawers and clean under them. Before you return the food, wipe jars to remove drips. Clean the rubber gasket inside the door to ensure a tight seal. Vacuum the coils in the back and empty and clean the drip pan if necessary.
7. Pet bowls
Find a place besides the kitchen to clean turtle or frog habitats and empty pet bowls, or clean and sanitize the sink before you start washing fresh food.
8. Cutting boards
Most scientists believe wooden cutting boards are safest, as long as they are kept clean, sanitized and dry. Studies have shown wood hampers bacteria growth, while bacteria thrive in scars on plastic. Either way, keep them clean by running them through the dishwasher, or sanitize by spritzing with a weak bleach solution. Always change boards or clean with soapy water after preparing raw food—even vegetables. They grow in dirt, after all.
9. Sponges and dish towels
Change dish towels daily, or more often if they’re wet or dirty. You can microwave a wet sponge for two minutes, but the time varies depending on the power of the microwave (and if the sponge is dry, it could catch fire). Instead, put sponges on the top rack of the dishwasher at the end of every day.
10. Cross-contamination
You know you’re not supposed to put cooked food on the same surface you used for raw food. But it’s not just a problem with cutting boards. You touch all kinds of things while you’re handling raw food: Salt and pepper shakers, cabinet handles, etc. Pay attention to what you touch so you can wipe things down. Tip: It’s not necessary to rinse raw meat and chicken—it just spreads bacteria.

RIS Media 4/14/11  Thanks to our sources: Benjamin Chapman, the extension food-safety specialist for N.C. State; David Sweat, foodborne-disease epidemiologist with the North Carolina Division of Public Health; Douglas Powell, professor of food safety at Kansas State University; and Dean Cliver and Linda Harris with the University of California-Davis.

How to pick an (experienced) Realtor!

Finding a good real estate agent / broker is essential to enjoying a painless real estate transaction. The saying is "20% of the agents do 80% of the business," and it is true. The question is how can you find a good real estate agent? The best agent for you doesn't necessarily work at the largest brokerage, close the most transactions or make the most money. The best agent for you is an experienced professional who will listen to you, conduct herself in an ethical manner and knows your market.

1. REALTORS® and Real Estate Agents

Big Stock Photo

All Realtors® are licensed to sell real estate as an agent or a broker but not all real estate agents are Realtors®. Only Realtors® can display the Realtor® logo. Realtors® belong to the National Association of Realtors and pledge to follow the Code of Ethics, a comprehensive list containing 17 articles and underlying standards of practice, which establish levels of conduct that are higher than ordinary business practices or those required by law. Less than half of all licensees are Realtors®.

2. Referrals

Most real estate agents stay in business because satisfied clients refer them to friends, family, neighbors and coworkers. Ask the people around you who they have used and ask them to describe their experiences with this real estate agent. Successful agents make customer satisfaction their number one priority and put their customers' needs before their own. Try to find an agent who goes above and beyond her responsibilities. She'll be the agent whose praises your friends sing loudest.

3. Search Online for Agent Listings

There are plenty of Web sites that will refer agents to you but that is no assurance of quality. The agents they refer are those who have paid the Web site owners a fee to be listed in their directory. A better bet is to Google the top real estate companies in your area, go to those Web sites and look up profiles of individual agents at offices near you. Agents who are experienced will tell you.  Look for customer testimonials.

4. Attend Open Houses

By going to open houses, you can meet real estate agents in a non-threatening working environment and interact with them. Collect business cards and make notes on them. If you're thinking about selling your home, pay attention to how the agent is showing the home. Is she polite and informative; appear knowledgeable? Does she hand out professional-looking promotional material about the home? Is she trying to sell features of the home? Or is she sitting in a corner reading a book, ignoring you?

5. Track Neighborhood Signs

Pay attention to the listing signs in your neighborhood. Make note of the day they go up and when the sold sign appears. The agent who sells listings the fastest might be better for you than the agent with the largest number of "for sale" signs. Results speak volumes.

6. Using Print Advertising

Real estate agents run real estate ads for two purposes. The first is to sell specific real estate. The second is to promote the real estate agent. Look in your local Sunday newspaper for ads in your targeted neighborhood. Then look up the Web sites of the agents who are advertising. These agents could be specialists in your neighborhood. Call and ask them about their experience.

7. Recommendations from Professionals

Ask other real estate agents for referrals. Agents are happy to refer buyers and sellers to associates, especially if the service you need is not a specialty of the agent who is referring you. Some agents specialize in residential resales while others work exclusively with new home builders. Other agents sell only commercial or investment property. Mortgage brokers are also a resource for agent referrals as many brokers have first-hand knowledge of exceptional agents. Pros tend to refer pros.


Whatever you decide.  Make sure that the agent you choose is experienced!  This is not an easy profession.  Knowledge comes with experience.  How can you trust an agent to assist you with your most important asset, if they haven't had the experience needed to advise you properly?  Check their track record.  It could be the most important decision of your transaction!
_{At the time of writing, Elizabeth Weintraub, DRE # 00697006, is a Broker-Associate at Lyon Real Estate in Sacramento, California}

Selling your home this Spring?? Listen up on how to improve your curb appeal- quick!

Add flowers for instant curb appeal!

The experts all agree that curb appeal is one of the most important aspects to consider when selling your home. When selling, it's the appearance from the street that will very often determine whether potential buyers come in to see the inside, or never get out of their cars.

Flowers are one of the easiest and least expensive ways to make the front of your house look inviting and instantly increase the curb appeal of your home.  Without any real landscaping at all, flowers can transform a rather drab and dreary looking front yard into one that looks colorful and lush.  When selling you should have lots of color to entice prospective BUYERS!!!  Surveys show that RED is the best color of flowers for your front yard to attract buyers.  

You should choose colorful flowers that will be in bloom during the time you're selling your home.   You don't need to have a green thumb, or spend a lot of money to get great results either.  Visit your local home improvement center or nursery and they will be happy to advise you of the best flowers and plants for your purpose.  For under $100.00 you can make a huge difference in the curb appeal to your home.  In a Buyers market, you want to attract every prospective buyer you can-- and it's easy!

One of the nice things about using flowers in this way is that you'll see the results immediately.  And so will buyers visiting your home!