When a home is sold as a short sale, it means that the seller has made arrangements with his lender to sell the home for less than what he owes on the mortgage. A short sale is different from a foreclosure in many ways. The short sale helps to save the seller's credit and in many cases, properties that are in a short sale situation are kept in better condition than those that have been foreclosed on because the seller still has vested interest in the property.

A foreclosure occurs when the owner has no longer been able to make his mortgage payments and the bank has taken back the property. Many foreclosure properties for sale are in abominable condition. Often times the people who owned the home wreck the house before leaving it, tearing out appliances, punching holes in walls and ceilings, and allowing animals to defecate on the carpet.

There are some good deals to be found with short sale and foreclosure properties, but it is the buyer's responsibility to understand exactly what he is agreeing to when purchasing a home in either of these situations. Also noteworthy is mentioning that offers to purchase short sale and foreclosure properties can take weeks, if not months, to receive a response from the lender, so if you are on a specific timeline, be sure to take this into account.

Looking for a good deal? Check out our picks for this week's Best Buys.

Thinking about buying a foreclosure or short sale property? Take advantage of our Free Foreclosure Lists. Once you sign up for this free account (and we won't bombard you with emails), you can search for distressed properties anywhere in the United States.

Wishing you sunshine everyday and the home of your dreams,
Jeri

As realtors, it is our job to bring buyers and sellers together and make the sales transaction a win-win for both parties.

I am constantly amazed, however, at the number of agents who become personally involved in a transaction and actually get in the way of a sale.  It is our responsibility to remain objective about the situations that arise in a real estate transaction and provide sound guidance to our clients so that they can make reasonable decisions about their purchase or sale.  We are supposed to be using our skills to solve problems; not create them.

This brings to mind a recent transaction where, during a pre-settlement walk-through, the buyer’s agent was hanging out the window of the house pointing out what she thought was a problem with a tile on a slate roof.  Keeping in mind that the roofing contractor who just fixed the roof was still at the house and told the agent that in his professional opinion the roof was in satisfactory condition and no additional repairs were necessary, the agent created maintained that there was a problem and actually created an unnecessary obstacle for the buyer and seller.

Being a realtor means that we are experts in matters regarding the value of real estate, marketing real estate, and writing and negotiating contracts in which real estate is being bought or sold.  We are not home inspectors, appraisers, lawyers, accountants, or roofing contractors.  Although we may have been in the presence of some of these folks regarding real estate transactions from time to time, it does not make us experts in those professions and we should not be offering our advice regarding those issues.  And, if there is a problem outside our area of expertise, we should suggest that our clients hire the appropriate professionals to look at those situations.

We realtors need to remember that we are supposed to help solve real estate problems for our clients in a way that makes it a win-win for everyone.

Thinking about buying a home?  Check out this week’s Best Buy picks or Search Like an Agent with a FREE Listing Book account.

Looking for a bargain?  See of list of properties in foreclosure, short sale, or auction.

Wishing you sunshine everyday, the home of your dreams, and a realtor with his/her ego in check,
Jeri 

When discussing fair market value and pricing strategy with sellers, the phrase that makes me want to jump out of my skin is, “I’m not going to give away my house.”

I wish I had a nickel for every time I heard a seller make this statement – I’d be filthy rich.  Let’s face it, folks.  Realtors are not asking sellers to give away their homes, or give away profits that could be realized.  After all, the more money we can get a seller for his home, the more money we earn.

However, when determining a price for a house we must consider its fair market value - the price that a buyer, willing but not compelled to buy, and a seller, willing but not compelled to sell, would agree on.  This number is based on similar type properties in close proximity to the subject home that have recently sold or are under contract.  It also takes into account the properties that are currently active on the market – your competition.

A seller can put any price he wants on his house, but ultimately it is only worth what a buyer is willing to pay for it.  Buyers are savvy.  They have more resources at their fingertips today than ever before.  With only a few clicks of a mouse, they can easily figure out if a house is appropriately priced or if it is priced too high.

This brings me to the second phrase that makes my blood boil.  “So what if I price my house high.  Won’t a buyer make me an offer at the price he thinks it’s worth?”  The answer to this question is, “In most cases, no.”

Writing an offer to purchase a home takes a lot of time, research, and thought.  Buyers have learned the pitfalls of insulting sellers with offers far below the list price.  They’ll either wait for the seller to reduce the price to fair market value before making an offer, or they’ll find a home that is appropriately priced and make an offer on that house instead.

Want to sell your house for the most amount of money that the market will bear?  Then price it right from the start.  The most motivated buyers will want to see it when it’s fresh on the market.  Typically, the longer you wait to price it right, the less you will get for your house.

Want to know what fair market value is for your house?  Use our FREE tool to search recent home sales in your neighborhood.  Or sign up for a FREE Listing Book account and keep track of all sales in your community just like realtors do!

Wishing you sunshine everyday and the home of your dreams,
Jeri

Good news!  Thankfully our government recognized the positive effects of the First-Time Buyer Tax Credit and decided to not only extend it, but expand it as well.

Now called the Homebuyer Tax Credit, not only first-time buyers benefit, but current homeowners buying a new principal residence get a tax credit as well.

Stabilization of the housing market is a critical component of our economic recovery and this is certainly a step in the right direction.

So, if you’re thinking about taking advantage of this tax credit and want to see what’s out there, sign up for our exclusive Listing Book account.  This free account will allow you to search for properties just like realtors do and it gives you information on pending and sold properties that no other real estate search engine offers.  And the best part is that it is updated every 30 minutes!

Looking for a deal?  Check out our list of foreclosure and short sale properties, or see which properties we picked as this week’s Best Buys.

Wishing you sunshine everyday and the home of your dreams,
Jeri