Has your listing expired?

In this market many houses come on the market and never sell, there are a number of reasons for this that can be overcome by your agent.  Market positioning is key, this means if your home is overpriced for the neighborhood you will not get the buyers you are looking for. Below is a check-list developed by Real Estate Marketing Experts that can help you discover the reason for your disappointment.  Go over it, answer the questions truthfully and if you have any questions or would like me to help make a marketing correction please feel free to contact me.

North Jersey Short Sales (Part 2)

Once you have decided to try to short sell your home call your lender and see if they have a pre-sale approval process.  Not all lenders do this but you can ask.  Most lenders will give you a short-sale information package to fill out.  This will include a hardship letter where you explain why you can no longer pay you mortgage, copies of the past 2 years income tax returns, a list of all outstanding debt, a list of all recurring payments you must make (utilities, water, groceries) pay stubs and other financial paperwork.  This package must be completely filled out and returned to the bank before you can accept an offer.  You can list your house with a realtor.  A short sale must be listed with a licensed real estate agent who has no relationship to the seller, all short sale transactions must be arm's length, which means that the seller, the agent and the buyer can have no relationship. 

North Jersey Short Sales (part 1)

If you are one of the many homeowners in North Jersey who is finding themselves underwater in their home you need help. Your first step should be to contact your lender and request a loan modification. If you really can't make your full mortgage payment every month and the recommended sales price of your home is less then you owe on it your bank may approve a reduction in your monthly payment. This is often the only help a distressed homeowner needs to move forward and continure living in their home.

If you are not approved for a modification and you can't make your mortgage payments you are risking foreclosure. In a foreclosure the mortgage holder takes the house back and you are forced to move. A possible alternative to foreclosure is short selling your home. In a short sale you maintain some control of the sale and the timing of your move.

If a short sale is the road you decide to travel keep in mind you will need a Real Estate Agent who is specially trained in short sales and a Real Estate Attorney who is experienced in the short-sale process.

I hold the SSFR designation which is the Short Sale and Forecloser Expert designation earned through the Board of Realtors. A short sale is anything but short and does have credit ramifications but in a desperate situation it is a viable alternative to foreclosure.

Problems with the home your selling-disclose

Sometimes sellers believe if they just put on a good face, no will know what's going on behind the scenes. These days, it's a crime to lie about things that are wrong with your home. While the buyer still has to prove you knew or should have known about these items, the damages (not to mention the defense) can be costly.

In the paperwork you receive from your realtor when you list your home, you are asked to fill out a seller's disclosure.  This is a form which asks about the current condition, past problems, repairs and improvements that have been made to the home over time.  Your are asked to check yes, no or unknown.  Sometimes your response requires and explanation and if you don't know the answer (what year was the roof replaced) unknown is a perfectly acceptable response.  This form should be filled out as completely and honestly as you are able.  It will be signed by the seller and the buyer and is a part of the real estate contract.  This disclosure relieves the seller of responsibility if a problem arises and it is addressed in the disclosure.  If the buyer has knowledge of a problem and purchases the home anyone he is accepting the conditon of the home.

If you're honest and upfront about past problems and steps you've taken to correct them, your seller disclosures will be a whole lot easier. If the house has current issues, tell the broker and the buyer what you're doing to correct them. Or, make it clear that the purchase price reflects these problems. Either way, honesty pays.

Why should a buyer use a Real Estate Agent

I often hear buyers state that they don't need an agent because they can find everything they need on the internet.  Finding the property that meets your needs is only the beginning of the home buying process.  Agents are trained to negotiate the best price for their client  unemotional negotiating will always have a better result.  Agents also have contacts with home inspectors, mortgage people and real estate attorneys to help you through the process.  When using an agent buyer's have the voice of experience on their side.  You will probably only buy a few homes in life, Agents do this everyday!  In addition, in New Jesey, the agent's commission is paid at closing by the seller so you basically get experience and education for free.  If you thinking about buying find an agent you trust today.


Gail Vinnal
Broker Assoicate
Realty Executives
gailvinnal@verizon.net

Ready to Buy?

Once you have a mortgage pre-approval in hand you know what price range you will be looking in but that is not all you need to know to find your dream home.  You need to decide what area you want to look in, what type of home you want, are you willing to do some work and if so how much.  You can then contact your realtor and tell them what you are looking for.  I always ask my buyers to make a list of 10 things they want in a home in the order you want them.  Please keep in mind very few buyers find 100% of what they want in the home they buy.
 Narrow you location choice to a few towns but try not to be too specific, it is fine to want to live in a certain town or a certain school district, looking for a home a a specific street makes finding you a home almost impossible.  Also, be open to looking a a home that does not seem (on paper) to be what your looking for you could be surprised!  Many buyers refuse to look at a certain style of home but if they walk in it is a perfect fit.  I don't advise making you agent show you hundreds of homes but I do suggest that you look at a broad spectrum of homes that meet your needs.  In my experience when you find the right home you know it almost as soon as you walk in the door.  Don't be afraid to ask to see any home you may like this is the biggest purchase of your lifetime and it is the agent's job to find the right fit.
Keep an open mind, trust your Real Estate Agent and have fun if you make the right purchase you may only do this once in your life!

Buying a Short Sale

When you are searching for your new home you will undoubtably come across a number of homes listed as short sale, don't be afraid, if you have time to wait a short sale can be a very good choice. This is a home that the owners are still living in so it usually has not been allowed to fall into major disrepair. Short sales take time. As the buyer you submit your offer through a real estate agent just as if it were any other listing. The offer goes to both attorneys for attorney review as any other sale. Once you finish the attorney review period the seller's attorney sends the offer to the bank and the buyer starts the waiting period. This wait can be anywhere from a few weeks to a few months, the bank will send out agents to make inspections and come up with the "fair market value" of the home and review the seller's information to re-evaluate the need for a short sale. All this time the buyer can do nothing but wait, many get impatient and walk away from the deal but if you really want the house hanging in there is your best option, nobody is trying to put one over on you, it is just a long process. Once the bank receives all the information they need they may accept the offer, counter with a different sales price or refuse the offer. The counter is not necessarily their lowest number so feel free to have your negoitiater (either your attorney or your agent) come back with your counter. Banks to not usually counter again so make sure that this is your highest and best price and be aware that the bank has a bottom line already and nothing you do will make them change it. Your attorney and your real estate agent can advise you on the counter you plan to make but the final offer price is your decision.

After your offer is accepted thing are expected to move very quickly, the buyer is usually responsible for the scheduling and expense of all city inspections (CO or Dwelling certificate) and you can do a home inspection. The bank will not make any repairs on a short sale so your home inspection if for your information only. I strongly suggest that you do an inspection because, in the case of hidden defects, you can ask for the repair to be paid or you can cancel the sale if it is something you don't want to pay for yourself.

Short Sales

A short sale is a home that is on the market for a price that is below the mortgage amount currently owed. A short sale is usually caused by the seller's inability to pay his current mortgage but the home's value has fallen below the amount owed. A short sale must be approved by the lender who currently holds the mortgage. Not all short sales are approved, if the seller cannot show financial hardship and is found to be able to pay the current mortgage payment (or a reconfigured payment) the bank is not going to take less money then is owed. The purpose of a short sale is not to allow the seller to recoup value lost in the home but a way for the bank to avoid a foreclosure proceeding.

The first thing a homeowner must do before listing his home is to contact his lender. There is a large amount of paperwork required by the bank, they will ask for your last 2 years income tax returns, your last 4 pay stubs, a hardship letter, bank statements for at least 6 months, an accounting of all money you owe and a list of your monthly expenses. If any of these are not submitted or, if the numbers don't add up you will be denied the opportunity to sell short. When calling your lender DO NOT call the customer service department or the collection department, these people are paid to collect money they do not want to help you, ask for the loss mitigation department, if you receive voice mail leave a message, but continue to call, nothing can be done until the loss mitigation department reviews your documents so be a pest, don't wait for a call back.

You may be contacted by people who call themselves "short-sale negotiators", you don't need them and they will ask you to pay them. What you need to sell your home short is a Real Estate Agent who is experienced in short sales and a real estate attorney who has worked short sales. Do No Pay Anyone but your attorney , the real estate agent is paid at closing through the proceeds of the short sale and the attorney will probably ask for a retainer up front but will attempt to be paid out of the proceeds of the sale. Most attorney's have a set fee they charge and you can ask what that is before you start working with them.