.

I was taught early in my career that real estate is about a Win-Win for everyone involved, but with the way the real estate market is going, it doesn’t appear to be a Win-Win for anyone. Yes, technically it is still a Buyer’s Market as described by the real estate economist because they believe that there are only two options – Buyer’s Market or Seller’s Market. Which if we go back and remember what we learned in our high school or college Economy class it is all based on supply and demand – whoever has it at the time has the upper-hand. So, with this being said, it has created a Lease Purchase option for Buyers and Sellers who want to buy and sell but have extenuating circumstances as to why they can’t do it now.

I have had experiences with this “thing” called Lease Purchase, and I try to steer clear of it as much as possible. Why? Because I really don’t feel it is a good alternative for anyone. In the end, it rarely ever works. So, what is it?

A Lease Purchase is an optional agreement that a Seller and Buyer can enter into which will put the home under contract to sell and close one year out while the Buyer has the right to move into the home and lease the property from the Seller and pay rent until closing. Sounds like a good plan huh? Well, the intent is always good in the beginning, but the truth is that as a Realtor we see it as the Seller becoming desperate to find someone to come in and pay their house payment because they are in a bind and can’t continue to do it or don’t want to do it. Sellers tend to be stressed – especially now – because it is taking longer for their home to sell especially if they don’t price them to sell – they price them to sit. So when the opton of a Buyer comes along to lease the house out and pay the Seller rent saying they will close one year later, it sounds all too good to be true to a Seller who is stressed out about money.

Buyers who need to do a lease purchase are Buyers who just can’t buy now. If they could, they would. They have credit issues, or their home hasn’t sold or its tied up in a personal situation that prevents them from being able to buy. There are lots of reason why a Buyer may not be able to buy but the ones I have listed are the most prevalent reasons. So when they find a Seller who wants to lease to them through a lease purchase, their immediate goal is to get a home for their family right now – thinking that a year from now is a long time away to worry about. They think a lease-purchase is a way to move into a home and let their rent money court toward the balance of the sales price; however, it all depends on how the deal is put together.

Putting the deal together is critical when it comes to where this may be one year from now. The Buyer may not want the home in a year. They may not like the neighborhood or neighbors, or they may not have their credit worked out or their own home sold. They may decide to walk away from any non-refundable deposits to find another home they like better. Too many “What Ifs” come up during the course of a year. The Seller becomes a landlord and has to adbide by the Landlord – Tenant rules for renting out a home. They technically lose all rights to the property while the Buyer is leasing aka renting their home. If the Buyer fails to pay their rent, then the Seller has to work with the local Sheriffs Department or other jurisdiction to aid him in evicting the “tenant” – Buyer. If this doesn’t work out, the non-refundable deposit is not automatically given back in my state of South Carolina. The Buyer/tenant has to sign it over to the Seller/landlord and if they don’t – it goes to magistrate court depending on the amount. This means it becomes a legal situation for the Seller. A situation that the Seller never thought he would have to deal with. Then they call the Realtor asking why this happened? Well, we can’t predict the furture anymore than them…We just have to hope for the best like they did.

I don’t like to be the bearer of bad news. I like to help make things work out for the good of all involved, but I am a realist and I know that things happen we don’t always want to happen. I try to tell my Sellers – you are making a deal with a stranger and moving your family out of your home for a stranger. Are you sure you want to do this? Then I leave it up to them to make the best decision for them. I can only advise – I can’t make the decision for them. I tell them to look at the big picture and not worry so much about the now, but I understand that when you are stressed – all you can think about is the now.

So, what am I saying…I am saying to you – Who Wins in a Lease Purchase Agreement? If you really think about it – maybe no one does. That is why I ask you before you jump into something that sounds too good to be true – remember what they say…that it probably is…

If we lived in a perfect world where everything worked out the way it was supposed to work out, we wouldn’t even need lease purchase agreements, but since we don’t —I just say think before you do and make sure it is really right for you!
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All comments and opinions are strictly mine as taken from my own experiences in the real estate market and shared with you. They are not intended to be anything more.

If you need legal advice about your own personal situation, please consult your Realtor or a Real Estate Attorney in your area. – Cynthia Williams – Keller Williams Realty

It has been a while since I have written – mostly because I have been busy with this ever changing real estate market, and when I get home at night, I am tired.   However today, I experienced something I wanted to share that to me was a once in a lifetime opportunity.   The news has been filled with the death of Staff Sgt. Thomas Joseph (T. J.) Dudley – 29 years old  - a U.S. Marine who died Thursday in combat in Afghanistan when the helicopter on which he ran the crew started taking enemy fire. This  mission took place just two weeks before he was set to come home to his wife and three children.

I was sitting in my office working and heard the sirens  going off.   I knew the funeral procession was coming down the street.   All of a sudden, I don’t know what came over me but I got up and ran out the front door of the office and up the street.    I was overwhelmed with what I saw.   There was a giant American flag flying in the air over the street – supported by  two fire trucks.   The street was blocked off and people were lined all the way down.   Some people had their hands over their hearts while  others had their hands in salute position.   As I approached, I felt like I wanted to cry – cry for this fallen soldier and what he scarificed for me and you – cry for his family and the loved ones he has left behind – cry because he is a real hero and I am touched by his honor.   I stood their in silence and placed my hand over my heart.   I felt it was my duty as an American to thank Sgt. Dudley for what he did for me. He gave the greatest gift for us all – his life.

As the hearse approached, it made it real.   There it was right in front of me.   The body of a fallen American Hero.   WOW – I was humbled at the sight.   It passed and then the family car came by me.   Looking out the window was a little girl staring at the crowd of people.   It was his daughter.   Her face simple and pale as if she didn’t understand what was going on.   Too young to understand the emotions of the day.   All she knows is her Daddy is not coming home.   I felt a cold sense of sadness.   So hard to imagine how this would feel.

As the funeral passed by, cars with American flags waving while people with sad faces looking out the windows.   i stood there with tears in my eyes thinking that with all the things in my life I get stressed out about, I have nothing compared to what these brave soldiers are facing everyday.   God Bless our American Soldiers.   God Bless Sgt. Dudley’s family and friends who will miss him forever.  Thank you Sgt. Dudley for your service to our country.   You did not die in vain.

Read more: http://www.charlotteobserver.com/2011/07/13/2450179/for-fort-mill-marine-funeral-everythings.html#ixzz1S2WejnNV

Story courtesy of the Charlotte Observer.

New York, Illinois and Louisiana are expected to lose more residents than they gain this year.

By Jenna Goudreau, Forbes.com

Dec 8, 2010

Provided by:

We’re seeing one of the lowest mobility rates in a century,” says Nathaniel Karp, chief economist for banking firm BBVA Compass. Karp says the recession has forced many people to stay put because they are unable to sell their homes, cannot find jobs or are unwilling to relocate for work if it means sacrificing a partner’s stable position.The slowdown makes the question of who’s moving and why even more significant than in years past. Using 2010 projections by Moody’s Economy.com, Forbes ranked the states in which people are leaving faster than they are arriving. Economists report several overlapping trends that may be forcing people out of certain states as much as they are pulling them toward others.

In Pictures: Top 10 States People Are Fleeing

At No.1 on our list, New York is expected to wave goodbye to 49,000 more people than it gains this year. The state has seen a steady loss of residents over the past five years, losing an average of 100,000 people per year. Karp explains that, because New York is a large state, it may report greater movement than others, but notes that population size is not the only reason residents are fleeing.

“In order to move, you need to be able to sell your home,” says Karp. “The housing market [in New York] has not gone through the meltdown that other states have gone through.”

While New York homeowners may have a slightly easier time selling their homes and moving to greener pastures, a competing trend is the number of unemployed renters who can no longer afford the high cost of living in and around New York City. Karp says the expensive lifestyle and high taxes may force the long-term unemployed to move on to more affordable regions.

The Prairie State came in at No. 2. Illinois is expected to lose 27,000 people this year, consistent with its average annual loss over the last five years. The losses are likely linked to the state’s economy and tax structure. Job losses in manufacturing and industrial machinery are likely pushing people out of the state, Karp says, adding that state taxes have also been “an issue” for many residents.

Midwestern states, in fact, are well-represented in the top-10 list. Nebraska (No. 4), Kansas (No. 5) and North Dakota (No. 9) are among the many central states projected to lose residents in 2010.

The movement may be related to broader structural changes. “For most of the decade people have been moving to the South and Southwest,” says Kenneth Johnson, a demographer and professor of sociology at the University of New Hampshire. He believes the trend is closely related to life cycle: Retirees are attracted to states with temperate climates, affordable costs of living, good health care and pretty scenery. For these reasons, Florida and Arizona are expected to receive an influx of hundreds of thousands of people this year.

At the same time, young people in search of jobs may move to the regions to work in services and high tech, says Karp. Texas and North Carolina are home to some of the largest public companies in the country, like Exxon Mobil and Bank of America, and are also among the top-five most attractive states this year.

At least two states in the top 10 are victims of unfortunate circumstances. Louisiana (No. 7) and Mississippi (No. 10) are both expected to lose residents this year. In 2006, the year after Hurricane Katrina ravaged the Gulf Coast, almost 300,000 people left Louisiana and nearly 20,000 moved out of Mississippi. The projected losses this year, though much milder, could be related to the impact of the BP oil spill.

Though specific conditions are pushing people out of some states, economists say more people moving around would be a positive sign for the economy. “Mobility makes it easier to respond to economic cycles,” says Karp. “People are still living in places where there are no jobs. That’s one of [the] reasons why the unemployment rate remains really high.”

Top 5 States People Are Fleeing

No. 1: New York

Projected Loss: 49,000 people

Population: 19.7 million

Percentage Change: -0.25%

The Big Apple may lose more people than it gains in 2010 because of the depressed job market, high cost of living and an ongoing trend of retirees and job-seekers heading to the South and Southwest.

No. 2: Illinois

Projected Loss: 27,000 people

Population: 13 million

Percentage Change: -0.21%

Economist Nathaniel Karp says Illinois’ tax structure and loss of manufacturing jobs may be pushing people out of the state this year.

No. 3: Ohio

Projected Loss: 8,900 people

Population: 11.6 million

Percentage Change: -0.08%

Over the last five years Ohio has lost an average of about 30,000 people per year. This year its losses are projected to slow, but remain significant enough to put the state at No. 3.

No. 4: Nebraska

Projected Loss: 5,900 people

Population: 1.8 million

Percentage Change: -0.33%

Nebraska has seen steady losses since 2001. The projected number of people leaving the state this year is particularly high when considering its small population.

No. 5: Kansas

Projected Loss: 4,200 people

Population: 2.9 million

Percentage Change: -0.14%

The Census Bureau reports modest gains for Kansas since 2007. The losses expected this year are similar to those seen in the earlier part of the decade, when the state lost an average of 4,500 per year.

My thanks to Forbes for allowing me to share this important real estate information with you.   Cynthia Williams – Keller Williams Realty

Sellers sometimes want to know why their home is not SOLD yet.   I came across this internet article  (ABOUT.com) which clearly sums up the top 10 reasons way your house may not be sold yet.   These things cost no money to correct so  there is no  excuse for why you can’t do them.   With the end of the year coming, now is the time to get your home ready for 2011.  

1. Odors

House odors are number one on the home selling uh-oh list. And narrowing it down, odors from cigarette smoke and pets take top billing, with mildew not far behind.

If you smoke indoors–the house smells like cigarettes. If you have pets, the house might smell bad–even if you don’t notice it. Ask someone who doesn’t live there to take a sniff, and don’t get angry when they tell you the truth.

Eradicate the odors so that you can present potential buyers with a clean, fresh atmosphere–not a house that’s full of perfumes to cover up the odors.

2. Dogs that Meet You at the Door or in the Driveway

Dogs frighten some people and irritate others. You’ll have a much better response from showings if you control your pets–dogs, cats, whatever.

You say you plan to put them in a bedroom or garage and then ask people not to open the door to that area? Bad idea. Would you buy a house you can’t inspect? Of course not.

Remove pets during showings if possible. If you can’t, contain them in crates for their own safety and to show respect for the feelings of potential buyers.

3. Dirty Bathrooms

Grimy bathrooms are an instant turnoff. Scrub them, paint them, buy a new shower curtain, rugs and towels–do what it takes to make them shine. If you’re serious about selling the home, the extra work is a must.

4. Dimly Lit Rooms

Dark homes are a turnoff to most home buyers, so try to brighten them up:

• Replace dim light fixtures
• Install additional light fixtures
• Install (quality) sun tunnels or skylights
• Remove heavy drapes to let the light stream through windows
• Repaint some rooms with colors that reflect light
• Trim tree limbs that shadow the house

Dirty and fogged windows are another buyer turnoff. Clean them inside and out to bring in more light. If possible, replace any double-pane windows with broken seals. You can find them by looking for a foggy residue that cannot be removed.

5. A House Full of Busy Wallpaper

Busy wallpaper in every room turns off most buyers, and even people who love wallpaper rarely like what you’ve chosen. It’s a personal decorative touch that they want to select themselves.

It’s the masses you must appeal to when you’re selling a home, so take a hard look at your wallpaper and decide if it should be removed and replaced with paint. Don’t paint over it, because it will be obvious that you did–and buyers know that makes removing it even more difficult.

6. Damp Basements

Dampness or damp smells in the basement throw up a red flag to buyers that the foundation leaks!

Most problems we see are not caused by faulty foundations. They occur because rainwater is being diverted towards the foundation instead of away from it.

• Clogged underground drains
• No rain gutters along roofline
• Downspouts aimed the wrong way

Go outside the next time it rains and determine where runoff water is going.

7. Bugs

Roaches, spiders, any insect that shouldn’t be in the house. Get rid of them.

8. Poor Curb Appeal

You must grab a buyer’s interest from the curb if you want to sell the home for top dollar. Home buyers often refuse to go into a house with an unkempt yard, sagging doors or peeling paint. You say you can’t afford to paint? Okay, but get that yard in tip-top shape and grab a screwdriver to fix those doors.

9. Gutters with Plants Growing in Them

I’m serious. Some people never clean their gutters, and it always makes buyers wonder what else hasn’t been maintained.

Remember the drainage issue in #6? Cleaning packed gutters might help.

10. Sellers Who Hang Around for Showings

Yes, you… leave the house during showings. Home buyers feel awkward about opening closet doors and lingering for a really good look at the house if the seller is home.

If you’re selling by owner, give them some space, don’t hover.

Most of the Top 10 problems are home selling issues you can correct without spending a lot of money. Do it now, before you put the house on the market, or if your house is already on the market do it now because if your house develops a reputation among agents as the house that smells, the house with the huge barking dog or the house where the owner won’t leave people alone, it will be too late. Your house will be last on their list to show potential buyers.

Again – thanks to ABOUT.com for allowing me to share this internet article with you. It is really great information and very true.

If you know anyone who is buying, selling, or relocating, please give me a call.   I can help you anywhere you want to go.   Cynthia Williams

I have written several times this year about the tough real estate market.    It is constantly the topic of conversation.   The first question I get asked when I meet someone is how is the market now?   Depending on the week I have had, I tell them my own personal opinion – good, bad, or indifferent.    And, I always try to give them good solid market facts that can be measured because  I know people want more than  my opinion about market conditions.   I will say that I am not one of those Realtors who believes the sky is falling.   Has it been hard on me?   Of course it has, but I believe that the end result of this experience will far outweight the journey it has taken me to get there.    Some days I can see it in the distance, and some days I have to keep on my journey to find it.   But, all in all, I believe things will get better.   I tell my  Sellers when they asked me if they should list or not, I tell them to Price the Home to Sell – not Sit, to Pray the right Buyer will come along, and to be Patient until they do.   I call it my three “P’s”.  

I spent some time the past  two weeks looking back at myself, and what this tough real estate market has done to me as a Realtor and as a person.   I have realized that it has made me thankful  - crazy I know but true.   I am thankful that I am tough enough to stick it out.   I am thankful that I am good at what I do – at least I think I am (LOL).   I am thankful that I have wonderful support from the community who continue to call me every day to help them with  their real estate needs.   Every time the phone rings, I am blessed.   Every Buyer and Seller I have – I am blessed.   I love what I do and am thankful that even though it has been hard I still love my career enough to go to work with a smile on my face knowing I will help someone today – even if it is just to give someone information.    

“Hard times require more energy, creativity, and commitment than boom times.” words spoken by Vicki L. Cox Golder –  National Assocation of Realtors President.   When I read this today, I realized this was the way I feel in a nut shell.   It is taking more energy to keep up the fight.    Some days I feel knocked down, but I keep getting up because the fight is worth it.   I have had to think out of the box and learn to be more creative.   This has been hard but it has been well worth it.   I may not have  changed some of my marketing and advertising strategies if  the market hadn’t been this way.   I think my business practices are better and strong because of it.   I have had to become more committed to my job by discovering more ways to meet people and put myself in front of them.   It has made me get out of the office more.   It has also helped me to know it is okay to  fail – as long as I know I tried my best.   However, I choose to fall  forward because  I refuse to give up.   I have wonderful clients  who believe in me, and I believe in them and myself.      

My favorite Bible versus is “I can do all things through Christ who strengthens me” Phillippians 4:13 – well this tough real estate market has strengthened me.   I am stronger because of it and a better Realtor.   So something good has come out of this for me.   I hope you can find your something good too.

If I can help you with a real estate need, please visit my website at www.CynthiaWilliamsHomes.com to contact me.

I had an interesting meeting with a Seller client yesterday who is trying to decide whether or not to keep her home on the market or take it off until Spring.   She asked my opinion, and I answered “Your goal is to sell it, so I would say to keep it on the market.”   She looked at me and said “What about Days on Market?   “Won’t that turn Buyers away if they see a long Days on Market number?”  

It struck me as funny because the fear of “DOM” has always loomed over a Seller and a Realtor for that matter as being a bad thing because in a “good” market a house with a long days on market had a story to tell.   It may be that something is wrong such as the condition of the home is not good, the house is over-priced, the Seller is not motivated – which can still be very  true even in this market today.   However, with the market that we are experiencing right now  Days on Market seems to be a moot point.   I don’t think anyone can control the amount of Days on Market for any property.   Nor  should any Buyer or Realtor try to use it as a negoitation tool to low ball the offer price on a property when every home I currently see for sale has extended days on market numbers.    Buyers are few and the ones that are able to buy are scared to buy.

My answer to her was simple.   We are in a different time, and we must restrategize our methods, our thoughts and our practices to keep them in line with what the market is experience.   As circumstances change, our thoughts must change toward what is good and what is bad or should I say questionable?   I told my client that the best advice I can give is to continue to be postive and move forward with her plans.   To stay on her path and try to meet her goals as I try to help her accomplish them by getting her house sold.   It only takes one  Buyer to buy.   We must be on the market to get that one  Buyer  because if she takes her house off the market, it is no longer for sale.   This is not getting her to her goal.  

I am more focused than ever with “weeding out” Sellers who don’t have to sell right now.   If they are just “testing” the market, I tell them now is not the time.   This is a market for Sellers who have to sell.   This helps eliminate the “bottlenecking” of too many Sellers trying to capture just a few Buyers.   It is our job to get the market back in to an even flow or at least try to bring it back to a more managable level.   That is why Days on Market is not even something to be currently considered.   The numbers are so skewd for all different reason.   The  decline in our ecomony is a huge reason that Days on Market means very little right now.

 I feel that serious Buyers will buy the home they want regardless of Days on Market, and good Realtors will educate their Buyers that Days on Market  means nothing with what we are experiencing.   My advice to Sellers is  you need to stay on tasks and don’t let small things like the fear of Dom get you down.   Rely on your Realtor to analyze the market and bring out the most important things to deal with like pricing, motivation, and making sure your home is in perfect condition; so when that one Buyer shows up, you are ready.    So, don’t let the fear of Dom get in your way.   Move forward and Be Postive.

This has been one challenging Summer.   One of the most challenging I have ever experienced in my real estate career.   Emotions are high for both Buyers and Sellers while Real Estate professionals try to remain calm and confident in a market that even we don’t exactly understand how to handle.   The influx of Sellers putting their homes on the market for various reasons continues to climb as we try to sort through their motivations, needs, wants, and desires of how to help them achieve a sale on their property.  Patience has become the big “P”.   If you don’t have patience, then you best not attempt it right now.   I am doing everything I can to get the word out about my listings by doing what I can to “step outside the box” of my normal thought process even if it means spending money on internet companies who guarantee results to push your website to a higher ranking.   Whatever it takes is what I am willing to do if it gets a sale for my  Sellers.   I don’t believe you can be anything but proactive in this market to  stay on top and that is where I hope to remain.   But, all jokes aside, it is a jungle out there, and I am using a sling blade to tear down the weeds to see the green pastures ahead that I am hoping will open up – the sooner the better.  

Buyers are taking longer to make their buying decision which in some ways, unknownly, puts stress on them because the longer they wait the more confused they become.   It is sort of like the old adtage that if they buy now they might miss something wonderful – better home at a better price.   It reminds me of when I was younger and would buy something I needed for my home only to continue price shopping to see if I could have bought it cheaper somewhere else.   Now, I wasn’t going to take the one I bought back, so why did I even want to put myself through that just to see it cheaper at another store down the street?   It only made me feel bad when I should have been happy and enjoyed what I bought and not focused so much on saving a few dollars that in the scheme of things wouldn’t amount up to a whole lot anyway?   So, this is the kind of Summer I have been having this year.   Trying to educate Buyers that depending on their needs, etc. waiting on the perfect price for a home they really want won’t really gain them as much as they think if they do the math and calculate their monthly payments.   It just prolongs their lives and to be honest our economy.  

Now I do believe in getting the most for your money – especially when buying a house, but when it becomes a stressful event, I believe you should just step back and take a deep breath.   I have worked with a few clients this year that have been very emotional about their new home purchase.   Thus, making me emotional   about making sure they buy the right house for nothing more than resale value when the time comes.   Their stress has caused me stress and I don’t like stress.   It doesn’t do anyone any good.   No vacation for me this year.   Two days hooked on to a weekend is not really a vacation, but with the market the way it is, I am not about to leave my clients even for a few days.   I am committed to toughing it out with them.

Lenders have been extremely difficult this year.   Even with the interest rates at an all time 50 year low, lenders are cracking the whip to ensure that the Buyers are just about perfect.   Making sure that Buyers are really qualified to buy making even the highest credit score client feel inferior.   So, nothing has been easy this year.   However, I still believe in teamwork.   As hard as it may seem, we all need each other to get through the trials and tribulations of the real estate market.   This market has weeded out the weak in all areas while the strong is surviving.   I am surviving even through this difficult time.   So, what I am really saying is “Lets us give patience to each other and be kind and understanding of all of our situations.”   We must be empathic to each other in knowing that Sellers need to sell and Buyers want to buy.   Realtors are doing the best they can to bring it together and hold it together and Lenders are crunching the numbers to try to make it work.    So, when it looks like everything is falling apart around you, look up and know that God is in control of everything.   Pray for our leaders and our economic and get out there and use those low interest rates to buy your dream home.   And don’t forget…call me to help : )     Cynthia  

As I have often said, I love real estate.   I love everything about it – especially the things I learn that flip a light on in my brian (we call it having a light bulb moment).   Yesterday was a “Light Bulb Moment” for me.   I attended a certification class on Short Sales, Foreclosures, and Real Estate Owned (REO) properties and learned so much valuable information.   I have had my experience in dealing with all three transactions from both sides working with Buyers and Sellers, but the information I gained yesterday seemed to really blow me away.   It was taught by a man who has some expertise in the area as well as about a 30 year career in real estate; so I would say he has been around the block a time or two with the highs and lows of the real estate market.   He brought to light the question, “Is Getting the Best Deal in a Short Sale, Foreclosure, and REO property always in the best interest of a potential Buyer?”   Well, from a Buyer’s Agents perspection, my answer would have been yes before yesterday, but now I would agree and say No.   Why not?   Before I explain this, lets back this up a bit with some additional information to help you better understand.  

First, lets explain the difference between the three:   Short Sale is when the home is still owned by the homeowner but they are in a pre-foreclosure status.   Pre-foreclosure means they are behind or not making the mortgage payments anymore.   They are starting to receive letters from the lender stating their status is becoming delinquent.  The term Short Sale means the homeowner owes more money on the loan than what the sell of the property will likely produce.   A short sale provides a window of opportunity for the homeowner to try to sell the property to pay off as much of the debt as possible.   The lender will work out with the homeowner the deficient according to their lending rules.    Short Sales are complicated processes which require long periods of time to close. A Buyer who decides to buy a home in Short Sale should be prepared to wait anywhere from 3 to 5 months depending on the status of the home and then there is no guarantee the Seller’s lender will accept the deal.   I have had one fall thorough at the closing table, so a Buyer needs to be prepared to have a back-up plan – thank goodness we did.

A foreclosure is when the lender has exhausted all communication with the homeowner and has turned it over to the sheriff’s department to seize the property and evict the homeowner.   We tend to think they are just take backs from the bank, but no these are seized properties by the bank through legal proceedings.   We see a lot of foreclosures on the market, but I doubt or would hope that not all of these true foreclosures were legally seized but no one knows.   A Buyer purchasing a foreclosured home directly from the bank needs to be prepared to get the property “Sold As Is” with no guarantees.   The bank knows nothing about the condition of the property and makes no warranties to its condition.   I suggest you get your inspections and ask your own lender before you go to contract on a foreclosure if your lender will accept a “Sold As Is” property since lenders are very picky these days about loaning money on homes.   Make sure your lender approves this first.

An REO property is a true take back from the bank.   It is called a Deed in Lieu of Foreclosure which means the homeowner agrees to give the property back to the bank in exchange for the bank’s cancellations of the mortgage note. Not all lenders can afford to do the REO process but if they can it is the best alternative for both parties involved.  The Seller walks away owning nothing and has no further responsibility, and a Buyer buying this home is dealing with a new owner “The Bank”.   They tend to be easier to deal with regarding repairs and price.   Good way to get a good deal and not have to worry so much about not closing the home or having any major hassle.

Now for some cold hard facts that affect you when buying a short sale, foreclosure, or REO property.    As I have said before, it is the Realtor’s job to get the best price possible for the buyer client on any home they choose, but one thing a Buyer should know is that homes in short sale, foreclosure, or REO status are already at a lower than market price when they are listed.   The reason is that banks are not in the business of selling houses and maintaining home inventory.   They are in the business of making money, so when they get back a home it is their job to get it sold as fast as possible.   Listing agents for these properties who work to help sell the bank’s asset management properties do a market analysis to see what the market value is for the home  under comparable conditions but price the home lower to get it sold faster making it a great deal to start with.  

However, when a Buyer makes an offer on one of these homes they always go lower because it is owned by the bank.   What they need to remember is a bank has a bottom line just like anyone else selling a home.   They are not going to give anything away and anything in good quality condition will be sold at a good price.   So, if you get something from the bank at a rock bottom price then let me warn you that the condition of the property will likely be bad.  

 The other thing I want to mention is that when a Buyer tries to get the home for too much less than the listed price which is already low they are setting the ceiling for the neighborhood and in some cases hurting themselves for future comps.   I know of one situation where the Buyer got a foreclosured home $30,000 off the already low foreclosed price and they were so happy telling me that they had paid the least for their home than anyone in the neighborhood.   What they did not realize is they had  killed the comps and two years later when they came to me to sell their home the market had not changed much and the price they paid was about the same as the price we would have listed it for.   When they asked me how could this be because the house should have gained equity, I had to tell them that they killed the comps and the next Buyer who came into the neighborhood after them decided they wanted to pay less on their foreclosured home too which created a sprial effect.   The potential seller told me “Well, I guess I never thought I would hurt myself on the selling end.   I was just worried about getting the lowest price on the buying end.”   We must always remember that everything we do has a cause and effect.   This was a perfect example of how Buyer’s drive the market on price.

So the next time you think about buying a short sale, foreclosure, or REO property, be realistic and get your Realtor to do a full market analysis and see where the true market price should be and where the real list price is and determine if this is enough to get you  the house at a good “fair” price that will enhance your selling power in the future – not diminish it.   We all want  a good deal but we need to look ahead and see what is really in our best interest going forward.   After all, its our money and as we have all heard, “Cheap is not always Best”.  

Visit my website at www.CynthiaWilliamsHomes.com or visit me on Facebook or Twitter at CWilliams_Rltr

It’s that time of the year again: Daylight Saving Time (DST). Time to set your clocks ahead and spring forward one hour. DST officially begins this Sunday, March 14, at 2 a.m. and will last until the first Sunday in November.

Use Daylight Saving Time as a reminder to do quick simple things around your home.    

*                     Replace your furnace filter

*                     Clean the kitchen exhaust hood and air filter

*                     Check your electrical system

*                     Check or replace your multi-purpose fire extinguishers

*                     Check the light bulbs in all your fixtures

*                     Review your emergency escape plan with your family

*                     Get a professional air conditioning contractor inspect and maintain system

*                     Check for roof damage or leaks

*                     Repair all cracked, broken or uneven driveways and walkways

*                     Protect your home from sewer or drain back-up losses

*                     Check your water heater

*                     Check the shutoff valve at each plumbing fixture

*                     Inspect, clean,  and change batteries of smoke and carbon monoxide alarms

These simple things can save you tons of money and prevent safety issues in the long run.   So, spend your weekend protecting your home.

Well today I heard something that just blew the top off my head.   I listened to the “Great” Gary Keller – Founder of Keller Williams Realty speak on one of my favorite morning shows – Good Morning America – about how to sell your home in “This” market, and there was something he said that summed it all up for me.   Let me share it with you….”This is a Good Buy/Bye Market”, (GK).  

As I was getting ready to leave for a closing, I stopped to  listen to him as  he is one of  Keller Williams Realty’s Biggest Mentors, and I am happy to be a member of the KW family.   He is sort of like the old E. F. Hutton commerical that used to air when I was growing up that said “When E. F. Hutton speaks – everybody listens.”   He gave five (5) sercret tips for selling your home in “this” market.  

Tip #1 – Pricing is Critical –  Buyers are looking for a good buy, and Sellers need to price their homes to sell.   Your Realtor should be looking at recent past SOLDS and then pricing your home even less than the last home that sold. This is critical if you want to sell your home quick.    

I am constantly consulting with Sellers weekly about home pricing and I typically use the phrase “What is a sales price that will make you cry?” If I sense they want to sell their home but are reluctant to price it right this is what I ask them.   What I mean by this is if we get the price to a point that will sell the house,  is this a price that is going to make you cry?   No – I don’t want to make anyone cry – especially my Sellers.   I just use this phrase so they can tell me what their crying point is should they get close to an  amount that may result in a  loss  if it were to come to that  - that is the number I try to (if at all possible ) stay away from without over-pricing  the house to where it won’t sell.   We want to sell it, so what is it going to take to sell it  quick?  Gary Keller says “We are not in a market where a Seller should think he is going to make money off the sell of his home.”   This is a market for Sellers who have to sell for some reason or another.   If you don’t have to sell, get out of the market.   It is not a market for testing the waters.

Tip #2 – Condition of Property – In this market, your home has to go beyond the decluttering and maintaining  phase.   You need to work with your Realtor to “Stage” the property or hire a professional stager.   Your home needs to be decluttered, carpets cleaned, refresh paint, landscaping, furniture strategically arranged, too many wall pictures removed,  use slip covers to cover old couches or chairs and add new fresh assessories, new window treatments or bed  linens, etc.  - and oh yes, the take down of all the refrigerator magnets.  Remember, whatever you need to buy to get your home sold can be taken with you to your new home; but until then, do what you need to do to stage it and make it look great.

If your kitchen appliances are old and needing replacement, buy new appliances.   It doesn’t matter if they still work.   It is about the look of them and not so much the functionality of them when selling your home.   Staging your home can decrease the days on market tremendously. Make it look NEW!

Tip 3# – Make a picture or information book to leave on the Dining Room or Kitchen table.   Show the different seasons so potential buyers can see the beautiful flowers, the bubbling pool, the green trees, the beautiful snow covered front yard – focus on pictures for whatever season you are not in.   If it is winter and everything in your yard is dead, you need to use pictures that will show the Buyer how beautiful your home is in the summer. This book is the only way they will know what to expect if they buy the home.   Show before and after pictures of remodeling or renovation projects so they can appreciate the value of the home with what you have done to improve it for THEM!

Tip #4 – Do Repairs – If you know there are repairs to items in your home that need to be done – DO THEM!   Don’t wait until the last minute – especially if it is a repair a potential Buyer can see such as dirty grout around a tub.   Every home I have ever sold had something even if it was small.   Hire a home inspector and do a pre-home inspection to check for items that need to be repaired and do them now!

Tip #5 – Be Present for Showings – yes, you heard right – I have mixed emotions about this one as I know that some personality type people  tend to be overly chatty and may just give away “the farm” to a potential Buyer, but we are in a different market and it takes the effort of everyone  to achieve a sale.   I just had this  experience with my Buyer on a home sell.   The Seller was at the home for our showing and was talking to us about  what he would be willing to do if my Buyer bought the home.   We just went back to the office and wrote up all of the “Freebies” he told us about.    His Realtor nor his wife were happy.   So, be careful about how much information you are willing to share. Always keep in mind to never share anything that will hurt your negotiation strategy.   Share things like updates you have made, school information, why you enjoyed living there, etc.

I will be the first one to tell you a  Seller can sell their house better than anyone because it is their house.    If you have a property that is unique, has  upgrades, or has been updated, you should encourage your Seller to stay for the showing.   A  potential Buyer will want to know these things and the Seller is  the best person to share that information.    When the Realtor and Buyer are ready to leave, you can  say “Do you mind if I share some important things with you that I want you to know about my home?”   The Buyer will always say YES!   Going this extra step may get you a sell faster, and we are in a market where we know it takes the Realtor and the Seller working together to get the job done.

Most importantly, winter is one of the best times to sell because there are fewer homes on the market meaning you have less competition.  

To watch Gary Keller’s GMA interview on 5 Secrets to Selling Your Home,  http://abcnews.go.com/GMA/YourMoney/selling-house-real-estate-market/story?id=9948405

If you would like a personal consultation, please give me a call.   I would be happy to come and talk with you about getting your home SOLD!