Washington Real Estate Pro\’s Blog

Understanding our market can be challenging today so I wanted to touch base a little bit on short sales.  By now, you have heard the term short sales and simply put it means you owe more to the bank then your home can sell for. For all the homeowners who are upside down and can no longer make their mortgage payment (because of either a job loss, divorce, or an option ARM that™s resetting higher, etc), up to now the only option was, well, letting the bank foreclose. That™s not a good option since a foreclosure sticks on your credit record for at least 10 years. That™s where short sales come in. If your bank agrees to a short sale, you then hire an agent to find a buyer for the house, you sell the house for a loss, and with the bank™s blessing, they agree to eat the loss (although they  could still demand the homeowner make some kind of payment or share the loss), and be prepared that if your bank does absorb the loss, the IRS might treat that as taxable income so talk to your CPA to get all the facts on how this effects you. Short sales also leave a mark on your credit report but it doesn™t hurt as much a foreclosure. Just make sure you know all the facts and what your options are. I would also suggest going to http://www.irs.gov/individuals/article/0,,id=179414,00.html  to read about the Homeowner Forgiveness Act, it has some very good and important information.

Of course, the better option is to find some way to stay in the house”by first, seeing if the lender is willing to restructure the loan (called loan modification), or forgo a couple of monthly payments to help you get back on your feet. Apparently, more and more lenders are willing to make accommodations to avoid taking the property back. Banks hate to take over homes, especially in a declining market, so you shouldn™t underestimate the willingness of a bank to make concessions. The best thing you can do is call you bank, explain your situation and ask them what they can do to help you. Give me a call 360-631-2108 I would be happy to discuss the different options you have or email me at tamara@thelamoreteam.com and in the subject line put œoptions before Foreclosure. Also, please indicate if you would like a copy of the Homeowner Forgiveness Act.

Here are  some tips that will help get your home sold in a Buyers Market!  First, and probably the most important, “Price it right the first time”…When it comes to pricing your home correctly, review properties in your neighborhood.   Look at the homes that have sold in the past three months.   Price your home below the lowest sale price (except for distressed sales).   If there are active listings in your neighborhood the price you select should be below that of the most comparable home to yours. With so many choices out there you want to be the best so you are the Buyers first choice!The second most important thing to do to insure your home is salable is to be “Model Perfect”…Make your home the neighborhood showplace.   Have you ever been to a new construction “Model” home before? The less clutter the better.  Professionally shampoo nearly new carpets and replace all worn and stained areas with new carpets.   If possible, add a new coat of paint to your home™s interior (keep it neutral).   Examine the exterior of the home and repaint of necessary.Thirdly,  take a look at the “First Impression” through buyer™s eyes…Enhance your home™s curb appeal and get buyers excited the moment they pull into your driveway.   Simple plantings of colorful flowers, manicured bushes and a healthy green lawn will draw attention.   Make certain the yard is manicured throughout the selling process. One thing I suggest to all my Sellers is to walk out in the street and look, really look at your home. Make notes and then make the changes to make it the best looking in the neighborhood.Number 4 on your list, “Declutter”…Remove all furniture you do not absolutely need.   Your home should feel open and easy to walk through.   Bulky furniture and crowded rooms will turn buyers off.   remove personal items, including family photographs.   Prospective buyers want to imagine themselves living in your home not you and your family. Now some agents say to remove all personal pictures, I don’t necessarily agree with that. What I tell my clients is to trim down…maybe one or two family photos not 25!Ok, you are on the right track, now  ”Set The Stage”…You can hire a  professional to œstage your house before prospective buyers begin coming through your door.   Staging companies carefully arrange home furnishings so buyers can envision their own furniture in the house.   An experienced stager can add a touch of class to your home. It is well worth the investment.   This year, I became a certified home stager, I can come by and give you tips and suggestions on how to make your home shine in a buyers eyes.The last step, and sometimes overlooked is to find, “Financial Incentives”…If possible, offer buyers™ agents a four percent commission rather than the traditional three percent (not always necessary ask me why and when it is more important to do this), along with closing cost assistance to buyers.   Closing cost assistance is especially attractive now that credit has tightened significantly and 100% loans are next to impossible to obtain. In a Buyers Market, some sellers are even offering incentives like, “a 42″ flat screen TV, “with a full-price offer the pool table stays”, etc. There are so many different ways to “attract” buyers and at the end of the day that is the goal. Get as many buyers through the front door as possible!Remember “Seller Mastery”, master these steps to make your home stand out and get SOLD!

Welcome to Washington Real Estate Pro’s Blog! This blog will provide you with valuable information, tips, and general insight into the real estate market in  Washington.