Attorney & Short Sale specialist, Steve Wilde, (www.wildelawfirm.com), joins Kay Beran, broker/owner of the Prudential real estate company and host Bill Sahadi of Fore Properties to discuss all the basic information about the mechanics of a Short Sale to help Sellers & Buyers thru the process. Steve reviews his Eight Steps to a Successful Short Sale. The foundational information is not only valuable for Sellers, but also for Buyers who need to know what to expect if they indentify a home to purchase that must run the Short Sale route.
Lender Victoria Spannaus and real estate broker, Liz English of Fore Properties discuss the many facets of our lending world from both the lender’s & Realtor’s perspective. Victoria Spannaus has many years of experience & respect in the Moore County market. Her perspective and overview is a great primer for buyers & sellers. Liz English, in addition to being a real estate broker, has had over 10 years of experience in the lending field, and her skill set as a Realtor and former lender is a great benefit to her clients.
It’s always frustrating, if not maddening, when the appraisal comes in low on a sale of a home. Buying a home is very emotional for both buyers and sellers, and the last thing anyone wants is some appraiser telling the parties involved that the home isn’t worth what they agreed upon. Personally, I don’t know of any appraiser who likes coming in low on the sale of a home; frankly it’s a major headache. If there is a true arm’s length purchase agreement between a willing and knowledgeable buyer, and a willing and knowledgeable seller – that is the very definition of market value!
The challenge comes when buyers want to use someone else’s money for their purchase, the banks. Appraisers don’t make the market; they interpret it, and give their opinion of value based on that interpretation. But, any interpretation or opinion of value also has to follow standards set by: USPAP, Fannie Mae, Freddie Mac, HUD (FHA), investor guidelines (Wells Fargo, B of A, Flagstar, etc.), and the originating lenders guidelines. Then appraisers have to meet all of those guidelines, using a reduced number of available comparable sales.
What we have now is banks wanting appraisals with perfect comparable sales. They are also enforcing the strictest lending and appraisal guidelines in history. Add to that the fact that there are less comparable sales than normal, and buyers (and sellers) are at the mercy of the current “comparables.” It doesn’t necessarily mean that the home’s value is absolute, it just means that buyers can only borrow against what an appraiser can prove on paper. And, without a loan, there’s no sale. If a home is unique, it may be more difficult to find quality comps. In that case, the home may appraise below the contract price. Buyers are also learning that just because the appraisal is below the contract price, it does not automatically mean the price they agreed to pay isn’t fair. There are so many “it depends” situations in selling a home today, a good Realtor® can make the difference between simply getting frustrated with the process or getting your home sold.
For a seller, the best thing to do is to have an appraisal done first (and a home inspection). The most knowledgeable Realtors® will tell you that having an appraisal done, prior to listing your property, is just a necessary ingredient in today’s real estate process. If you really want to sell your home in this highly competitive market, you have to know upfront what a typical buyer may be able to borrow on your home. Pricing and condition are both critical to attract a buyer in this market. Real estate has always had cycles of buyer’s and seller’s markets. Today, it is a buyer’s market if there ever was one. They want it all, and they want it at a bargain price.
Right now, in most markets, the reality is there are more sellers than buyers. Sellers have set a realistic price to begin with, and find a Realtor® who understands what it takes to get a home sold in today’s marketplace. Sellers need to think like buyers. Have a pre-listing appraisal, look at the current competition, and price your home to move to the head of the class. You only get one shot at a first impression. No price reduction later ever has the same effect. If you want to sell your home today, you have to come armed with the ammunition to win the battle for buyers. By Michael Bolton & Hamp Thomas – Carolina Appraisers – Southern Pines, N.C. email@example.com.
A Recipe for Success in Today’s Market
by Bill Sahadi
If you could liken a successful residential offer and contract in less than two weeks, and at full price, to a carefully crafted meal, it might look a little something like this:
1 thorough up front market analysis & marketing plan
2 cups of PRICING ahead of the Market Curve
1 helping of full blown pre listing inspections & subsequent follow up repairs
1 sprinkling of a professionally drawn out floor plan with exact and verifiable heated square footage
1 spotless de cluttered interior
2 well manicured yards (front & back)
4 generous helpings of neutral interior colors
1 additional information packet about the home (utilities, warranties, informational booklets)
1 very well informed & savvy SELLER
Don’t stress how about they are combined or prepared. This is for your Realtor to do. Sit back and let them do their job.
All we are missing is to determine how much “pricing” we are going to add. Add too much and the indigestion and heartburn will stay with you longer then you can imagine. All the preliminary work you did could all be for naught and leave a bad taste in your mouth. Honor the current market data by adding the right price to the mix and you increase the odds of a enjoying a satisfying and rewarding banquet.
Final Note of Caution:
All ingredients are necessary to achieve the end result. By eliminating any one ingredient you are jeopardizing the overall presentation & quality to your guests and possibly to your ready, willing, able and preapproved diners. And just a heartfelt pre dinner prayer without the necessary preparation is no longer the automatic ticket to the finish line as it once might have been.
If you’re going to spend that much time in the kitchen, you might as well get it right the first time.
A professional full time Realtor has taken all the culinary classes necessary to help oversee and shepherd you thru this process. Let them help you find the right ingredients and the right procedures so they can shout it out to your dinner guests and to the entire world with the click of a few of their specialized utensils.
And to our savvy seller who only had their home on the market this past month for 12 days……bon appétit!
A job well done deserves a hearty round of applause and an after dinner drink of your choosing.
Bill Sahadi is the Broker/Owner of Fore Properties Realty Inc. in Southern Pines
Proven tips to increase the odds of getting your house sold in our market are brought to life by Bill Sahadi, CRS & broker/owner of Fore Properties Realty of Southern Pines, N.C.
In addition to actual experiences of other sellers that Bill shares in a free flowing and conversational format, Bill also gives potential sellers an insight into the psychology of today’s buyer as well as the role of a good buyer agent.
This overview gives today’s sellers specific advice and proven methods to enhance their chances of reaching a timely sale on their home.