You have heard the phrase “there is nothing short about short sales”. Recently, [I] received an inquiry from a buyer who was interested in pursuing short sale opportunities that went something like this

“I am interested in short sale properties. I am a serious investor looking for a home for my wife and myself. If I like the property, I’d offer 30% less than asking price….”

With all the information and misinformation that people are reading in the media, I understand that this buyer is looking for a good buying opportunity.

Short sales can provide these opportunities but only if they fit the situation and are right for that particular buyer.

It is important that buyers know what to expect and to develop a buying strategy that allows them to reach their goals.

I suggested a consultation to evaluate this buyer’s situation including his needs and preferences and to discuss the ins and outs of buying short sale properties.

Seven Facts Every Buyer Needs to Know about Short Sales

1. Properties offered as short sales are typically priced to sell and offered at a price below market value.

2. Low-ball offers don’t get buyers “in the door”.   Most likely, the seller will reject the offer.

3. Make your offer based on previous sales of similar properties in the area.

a. Seller will accept or negotiate your offer.
b. Seller’s lender will review and has to approve the contract. In this
process, the lender will obtain appraisals and price opinions based
on previous sales comparables.The lender will present these
findings to their investors for approval.
c. Seller’s lender has the final word and is not obligated
to approve.

4. Proof of funds (if cash) or mortgage approval are required with offer.

5. Show seller and seller’s lender that you are serious by making an above average “good faith” deposit and demonstrate commitment by getting inspections completed.

6. Short sales take time.  Be prepared for additional negotiations with the seller’s lender.
The entire short sale process could easily last from 2-6 months.

7. There is no guarantee for the successful outcome of a short sale offer even if seller and buyer agree on all terms.

Because of the substantial time commitment and involvement by buyer, seller, agents, title companies, attorneys, and lenders, contracts submitted for consideration need to be such that they have a reasonable chance of success.

Anything else will not be a productive use of your time and resources.

Thanks to Silvia Dukes of Tropic Shores Realty, Spring Hill, FL for the great post.

This should be encouraging not only to buyers but to sellers in the Denver metro area.   So– give me a call and we can explore your situation to see what’s the best solution for you.  My cell is 303-550-5089.  Just call!

There were 4,751 homes placed under contract in June, compared with 3,885 in June 2010. The percentage increase is the largest June-over-June increase on record” so says John Rebchook in “Inside Real Estate News”, July 13, 2011.

This is great news for home sellers who are depressed over their chances of selling in the near future. 

Call me for an updated Market Analysis for your home, and join the home sellers who are successful in achieving a sale.

Price it realistically from the start:

“Your largest number of showings will occur in the first two to three weeks,” says Mark .  . .   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 . . . put their . . .  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 . . . .

It gave them an X-ray of their market.

How you style the price is important. They 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, he says.

The result: A few weeks after the price change, they had a winning offer.

[Excerpt from Ris Media, June 14, 2011]

This is an excellent example of what I like to call “price point marketing”.  Understanding how buyers select their purchase price parameters is important to how sellers select the pricing for the marketing of their home.

Give me a call at 303-550-5089 for a Free Comprehensive Market Analysis for your home.

That’s the key finding of a recent survey of people likely to vote in 2012 that was conducted on behalf of the National Association of Home Builders (NAHB) by Public Opinion Strategies of Alexandria, Va., and Lake Research Partners of Washington, D.C.

“The survey results show that Americans see beyond the immediate housing market to the enduring value of homeownership,” says NAHB Chairman Bob Nielsen, a home builder from Reno, Nev. “An overwhelming 75 percent of the people who were polled said that owning a home is worth the risk of the fluctuations in the market, and 95 percent of the home owners said they are happy with their decision to own a home,” Nielsen says.

“Homeownership is worth the risk, pure and simple,” says Neil Newhouse, a partner and co-founder of Public Opinion Strategies. “Even though the market is weak, people who don’t own say they want to buy a house. Almost three-quarters of those who do not currently own a home, 73 percent, said owning a home is one of their goals. And among younger voters who are most likely to be in the market for a home in the next few years, the percentages are even higher,” Newhouse says.

One of the more striking aspects of the survey results is the intensity of sentiment among potential voters, according to Celinda Lake, president of Lake Research Partners. “People believe overwhelmingly that owning a home is an anchor to the American Dream,” she says. “It’s an anchor to your retirement, and it’s an anchor to your personal economic well-being.”

Among the other survey results:
• Homeownership and a retirement savings program are considered by voters to be their best investments.
• 80 percent of home owners would advise a close friend or family member just starting out to buy a home.
• Saving for a downpayment and closing costs is the biggest barrier to homeownership.
• Americans believe that owning their own home is as important as being successful at their job or being able to pay for a family member’s education.

“Owning a home isn’t just a policy to people,” says Lake. “It isn’t just a commodity to people. It is a core value.”

This national survey of 2,000 likely 2012 voters was conducted May 3-9, 2011 by Public Opinion Strategies of Alexandria, Va., and Lake Research Partners of Washington, D.C. It has a margin of error of +2.19 percent.

Public Opinion Strategies is a national political and public affairs research firm based in Alexandria, Va. Founded in 1991, it has conducted more than 6 million interviews with voters and consumers in all 50 states and over two dozen foreign countries.

Lake Research Partners is a leading public opinion and political strategy research firm providing expert research-based strategy for campaigns, issue advocacy groups, foundations, unions and non-profit organizations.

Did you also know that a bank can 1099 you for the difference between what you owe and what THEY sell your property for at the foreclosure sale?  Yes. check it out!

I can help you if you are upside down on your mortgage and give you the straight scoop.  I won’t tell you wrong!

Agents have resources to market your property to the public than you might be able to obtain through marketing on your own.  QR codes (what are they?) are a resource agents use to provide information to other agents and the public about your home.  To find our more about these valuable resources, call me  today!