“It’s the busiest year I’ve ever had in my 28 years in the business,” says Mike Weaster, a Realtor with Century 21 Excel.

Weaster sold 779 foreclosed homes — up from 680 in 2007 — for a total of $86.9 million in 2008, despite losing approximately 200 deals during Hurricane Ike.

Tracy Nicola, owner of Houston-based Nicola Real Estate, saw a similar surge in foreclosure sales. Her team recorded 532 transactions in 2008 worth $53.5 million on homes ranging in price from $15,000 to $1 million.

Nicola and Weaster both say sales would have been higher except for a decision by the Federal National Mortgage Association in November to suspend foreclosures until January.

Weaster sees even more of the same in 2009 and beyond.

“It’s steadily picking up right now and I don’t see it leveling off until at least 2011,” he says.

Nicola views prospects for the coming year with a mixture of anticipation and hope.

“I think this year is going to be even higher once the moratorium is lifted later this month,” she says. “But, I hope for the sake of economy that it’s not going to be as bad as I think it’s going to be.”

Market in limbo

Foreclosure listings for Harris County rose only slightly last year (see related box), but that could reflect the calm before the storm.

Nicola says the current state of the local foreclosure market is in a period of “limbo” due to the moratorium, but she expects a windfall of homes to be released over the next two months.

She says there’s no “rhyme or reason” to the local foreclosure market, noting that some subdivisions are being completely depleted by foreclosures while others haven’t even been touched.

Weaster says foreclosures are affecting every neighborhood and every price point in the Houston market.

He recently sold a foreclosed $4 million, 27,000-square-foot home on Lake Woodlands to Farouk Shami, owner of Houston-based Farouk Systems Group, for $2.6 million.

While some in the industry are hopeful that President Barack Obama’s new policies will have a dampening effect on foreclosures, Weaver thinks the situation goes beyond politics.

“It’s all based on the lack of movement of cash within the economy,” he says. “There are still buyers out there, but our biggest issue now is getting them financing.”

The bulk of foreclosures over the past two years involve owners who assumed mortgages they couldn’t pay to buy houses they couldn’t afford.

Weaster says the trend will continue as adjustable rate mortgages written in 2004 and 2005 begin to adjust, forcing more people out of their homes.

While lenders become more picky about financing, owners looking to sell their homes due to economic hardships will find it more difficult in a market where builders are reducing prices of new homes.

Nicola notes that a lot of homes on the foreclosure market were purchased by owners who took advantage of the 100 percent financing option during the hot housing market.

Says Nicola: “I believe that if you don’t put your own money in it, you’re not going to take care of it as well, and that’s why we’re seeing so many homes foreclosed on.”

Annual foreclosure figures tone down fanfare

While some Realtors have found a windfall in home foreclosure sales, the overall numbers suggest a far less volatile market.

The 2009 Foreclosure Forecast for Harris County issued by the Foreclosure Information & Listing Service shows the actual number was 11,837 in 2008, a miniscule increase of less than 100 over the 11,766 foreclosures in 2007.

The 0.6 percent bump is the smallest rate of increase year-over-year since 1999 when actual foreclosures declined 8.7 percent compared to 1998.

The Foreclosure Information & Listing Service owes the small increase to the moratorium imposed by the Department of Housing and Urban Development on areas affected by Hurricane Ike, along with the national moratorium on foreclosures imposed by the Federal National Mortgage Association in November.

The Woodlands-based firm makes the following forecasts:

• There will be some short-term moderation in foreclosure activity during the first few months of the year, thanks to on-going foreclosure mitigation efforts of both the financial industry and the government that started in October.

• Effects of an expected significant rise in unemployment will start impacting the Harris County foreclosure market in the second and third quarters of 2009.

Allison Wollam

Across the country foreclosures surged 48% in the month of May which is not encouraging. However Ohio saw a 7% drop in foreclosures compared to the same month in 2007. Hopefully this is the beginning of the reversal of a trend that sees Ohio’s foreclosure rate growing every year since 2000.

At some point all of the adjustable rate mortgages will have reset and the home owner will either refinance a fixed rate they can afford, negotiate with the bank, sell their home, or foreclose. The question we in the real estate and mortgage profession is when will we hit bottom, when will we have moved past a point when all of the crisis mortgages have been flushed from the system and we can slowly begin to rebuild the housing industry based on sound lending principals and appropriate risk / reward tolerances. The end goal is to attract investors to buy up relatively bland, and previously dependable residential mortgage backed securities. Only then will we know the depth of the damage to the reputation of the housing industry as an investment vehicle.

The suit, filed in the Hamilton County Court of Common Pleas, charges Foreclosure Assistance USA Inc. and American Foreclosure Professionals Inc. with several violations of Ohio consumer protection law. 

“These companies have been sending direct-mail solicitations that specifically refer to the foreclosure lawsuit an individual consumer is facing by its unique case number,” said Cordray in a news release. “The companies said they could offer immediate assistance in saving the consumer’s home from foreclosure, but they failed to do so. They promised work-out agreements, but did not deliver.”

Cordray said an investigation of FA USA and AFP, which began in March 2008, found that the same person serves as president of both companies and that the two companies offer similar foreclosure assistance services to consumers facing foreclosure. 

In addition to direct-mail, AFP also advertises its services at www.helpstopforeclosurenow.net. 

The lawsuit charges the companies with violating Ohio’s Consumer Sales Practices Act, Credit Services Organization Act and Debt Adjusters Act. Cordray said his office currently has four unresolved complaints against AFP, with damages ranging from $700 to $900 each. 

The office also has four unresolved complaints against FA USA, with alleged damages between $900 and $1200 each. 

In the lawsuit, Cordray asked the court to prohibit FA USA and AFP from committing further violations of the law and to require the companies to reimburse consumers and pay civil penalties.

Home sales and prices continued to tumble in 2008 as a third year of housing market corrections ran their course in Greater Cincinnati and Northern Kentucky.

Existing-home sales dropped 15.8 percent in Greater Cincinnati last year compared to activity in 2007, while in Northern Kentucky, sales were off 14 percent, according to reports released Monday by local boards of Realtors.

Nationally, sales declined 13.1 percent over 2007 – the slowest sales activity since 1997, the National Association of Realtors said

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“The numbers are a bit sobering, but expected,” Johnny Hodge, president of the Northern Kentucky Board of Realtors, said. “We’ve absolutely noticed a tightening in credit and lending standards, which ultimately is a good thing, but we think the pendulum has swung a bit too far, and some parameters are so strict there is some overcorrecting going on.”

Experts also say the housing market continues to be thrown out of balance by an excess supply of lender-owned and foreclosed properties.

The impact is felt most heavily in sales prices, which have been dragged down as lenders move aggressively to shed troubled real estate from their portfolios.

“Take out distressed sales, and we had a pretty good market last year,” Paul Jacob, president of the Cincinnati Board of Realtors, said.

In Greater Cincinnati, the average sale price fell last year by 6.7 percent to $162,340, the Cincinnati Realtors reported. The median price – which is the point at which half the homes sell for more or less – fell 20 percent to $102,513 in December compared to the same month in 2007. A median price was not available for the full year.

Pricing was less affected in Northern Kentucky.

The average sale price remained relatively unchanged at $160,611, and the median price for the year dropped 3.3 percent to $132,324, according to Northern Kentucky Multiple Listing Services data.

• Check the Data Center for real estate tips.

Nationwide, the median price last year was $198,600, down 9.3 percent from $219,000 in 2007. The decline was the biggest since the national Realtors began keeping records in 1968, and experts said it’s probably the biggest drop in seven decades.

The sales report did contain good news. Sales in Greater Cincinnati rose 8.4 percent in December compared to November as more buyers entered the market to take advantage of low interest rates and favorable prices.

“Mortgage rates are on sale right now,” Jacob said, adding that the recent rates, which have hovered around 5 percent to 5.5 percent, are the lowest seen since 1963.

While the December sales spike was encouraging, experts said they don’t think that it indicates we’re at the bottom of the correcting market.

Local officials said the inventory of unsold homes in Greater Cincinnati remains high, with a 10-month supply of houses. The figure – which is down considerably from 2007 levels – represents the amount of time needed to sell all of the homes currently on the market.

The excess inventory is an advantage for prospective buyers – but it’s still indicative of an unbalanced and correcting market, Jacob said. A balanced market – one that is competitive for buyers and sellers – has a six-month supply, experts say.

“We’re still going through the equation of supply and demand,” Jacob said. “When the supply numbers come closer to demand numbers, you will see a more stable real estate market.”

Meanwhile, local home builders continued to be hit hard last year by the declining market.

In Southwest Ohio, permit activity for new single-family home and condominium construction fell 39 percent last year over 2007, according to Home Builders Association of Greater Cincinnati.

Northern Kentucky saw a 31 percent drop for the year, the Northern Kentucky Home Builders Association reported.

“Builders are trying to diversify as much as possible,” said Dan Dressman, executive vice president of the Northern Kentucky HBA. “I’m not sure anyone knows what’s around the bend. We’re just taking it one day at a time and maximizing opportunities that do come our way.”

The New York Times contributed.

Foreclosure activity rose 26 percent last year in Ohio, a state that had one of the nation’s highest foreclosure rates, the report said.

The four states with the highest foreclosure rates last year were Nevada, Florida, Arizona and California. Ohio ranked 7th.

More than 1.1 million properties in those four states received a foreclosure notice, almost half the national total. And more than one in five of those households were in California, which is coping with massive job losses in the housing and mortgage industries as well as a rapid decline in home prices.

In December, more than 303,000 properties nationwide received at least one foreclosure notice, up more than 40 percent from a year earlier and up 17 percent from November, according to RealtyTrac.

Nearly 79,000 properties were repossessed by lenders in December, a 61 percent increase over a year ago.

In a speech at the University of Delaware, Charles Plosser said that the unemployment rate probably won’t drop anytime soon, but that he doesn’t expect it to rise to double digits, as it did during the recession of the early 1980s.

“I expect the housing sector will finally hit bottom in 2009 and the financial markets will gradually return to some semblance of normalcy,” said Plosser, adding that the current recession could be one of the longest in the post-World War II era.

Lorie Batdorf, the executive director of Hamilton based foreclosure consulting firm Neighborhood Housing Services, commented that when house owners vacates their properties because of foreclosures, those homes wouldn’t be maintained and so, there would be cases of people breaking in just to steal copper. This situation on foreclosure homes are totally discouraging for those people who are still living in the area.

Although, Cincinnati has 15 regions and has 27 zip codes but they have 100 bank-owned properties. Neighborhoods in Middletown, Mount Healthy and Price Hills have the highest rank in foreclosed properties and more than 7 percent of them in owned by lenders.

When foreclosed properties are closed, they can’t get loans for these properties and would just sit on the market that makes the price value of the repo homes down. A good example of this is what is happening in Southwest Ohio with the average sale price of homes sold declined to about 5.5 percent.

This also cause tension to both lenders and neighborhoods with foreclosed homes such as the evidenced of lawsuit filed by a neighborhood group, Price Hill Will, last July. They allege Deutsch Bank for failing to comply with city rules covering non-occupied buildings and ask them to pay $112,000 in fines and fees.

This situation on neighborhood activists and lenders with the mounting complexity of the mortgage markets are just but some problems the nation is facing. Deciding ownership is also difficult in foreclosure propertiesespecially those involving mortgage-backed securities. Although there are a lot of complexity in foreclosures.

Ken Smith, the executive director of Price Hill Will said that this is only an excuse given by property managers and that they have to deal with the problem. Such as what David garner is doing. He made a property management company, Turkey Asset Management Solutions LLC, to helpbank-owned homes for maintenance and prepared them for resale.

Homeowners anxious to unload their Indian Hill estate or downtown penthouse condo largely have two options these days – discount the price or wait.

On a list of 42 Greater Cincinnati and Northern Kentucky neighborhoods, these two communities ranked highest for monthly absorption rate. That’s the number of months it would take to sell all of the existing inventory in a community, based on the average of 12 months worth of sales there.

A “healthy” national absorption rate? About six months, according to the National Association of Realtors.

With 19 and 27 months of inventory, sellers in Indian Hill and downtown must either be aggressive on price or willing to wait for the housing market to turn around, said local Realtors.

Compiled by the Greater Cincinnati and Northern KentuckyMultiple Listing Services, the list gives a snapshot of the local market.

Mount Lookout, for example, holds seven months of inventory while its neighbor Columbia Tusculum averages 13 months.

The Cincinnati communities of Oakley and Pleasant Ridge held the lowest monthly inventories on the list, at just more than five months.

These numbers are likely higher than past years, although the boards don’t track historical absorption data. Local home sales hit a record of 33,499 in 2005 but have since declined to 28,185 in 2007.

Realtors point to several reasons for the differences in inventory. It could be price point or quality of homes in a particular neighborhood. Communities attractive to first-time home buyers, for instance, are sitting prettier than move-up communities. And in some areas, the sellers may be more realistic on price.

“When it’s not a competitive market, the supply keeps building up,” said Lee Robinson, owner of Robinson Realtors in Hyde Park. “The prices in some communities have not adjusted sufficiently to meet demand.”

It’s a buyers market

The National Association of Realtors sets a benchmark for absorption rate – about six months worth of inventory equals a balanced market. Locally, an absorption rate of 4.5 months has traditionally signaled the balance, said Karen Schlosser, president of theCincinnati Area Board of Realtors and sales manager at Re/Max Unlimited.

If the number of months of inventory dips below that figure, it’s a seller’s market. If above, it’s a buyer’s, she said.

Schlosser uses absorption rate to determine prices for the homes she’s selling.

“If I have a house to sell in Indian Hill, and I want to sell more quickly, I have to be a whole lot sharper in price and condition,” she said.

Two years ago, what drove up the value and interest in older homes in luxury markets like Indian Hill and Mount Adams was the demand for new ones. With a glut of both new and old homes on the market, and a lower number of available buyers compared to the general market, supply now outweighs demand.

“The run-up was just ridiculous, so Indian Hill is getting killed,” said Peter Chabris, an agent with Keller Williams Realty.

“The luster momentarily is off,” Robinson said.

It’s a different story downtown. Because it has so many units under construction and is generally geared toward the downsizing buyer, it has been hurt by the poor suburban housing markets, said Robinson Realtors agent Cynthia Dammel.

Yet sale prices have not adjusted in either case.

Sellers are often still running up the list price to leave room for negotiation, a frustrating trend for Schlosser.

“It is not a market to be fishing for a price,” she said. She’s not factoring 2006 or 2007 appreciation into most of her list prices, especially in luxury markets.

“There are homes in this market selling with multiple offers at full price because those properties are priced appropriately,” she said.

lbaverman@bizjournals.com | (513) 337-9431

That is a question that is unfortunately becoming all too common. The idea of facing foreclosure sends trembles into anyone who is currently in, or soon to be in foreclosure. Just the word itself is frightening. Much of that is due to the common misunderstanding of what that actual word foreclosure means, how the process works, and what potential remedies you have at your disposal, such as mortgage default assistance. 

Foreclosure - A situation in which a homeowner is unable to make principal and/orinterest payments on his or her mortgage, so the lender, be it a bank or building society, can seize and sell the property as stipulated in the terms of the mortgage contract. Source: investopedia 

The key word in that definition is, “can” seize and sell the property. It is on that word, “can” that you must capitalize on. The foreclosure process is just that…a process. Contrary to what the letters you may have received from the collection department state, there are ways to protect yourself. However, you must absolutely know and understand the process. How long will the foreclosure process take? Will you have to leave your home? Will it be through the courts? Will you be legally liable for anything? If you don’t stop the foreclosure, what will your tax liabilities be? What will this do to your credit scores, and for how long? Most importantly, how do you stop the foreclosure? You may be able to receive mortgage default assistance, but before trying to educate yourself on all these important questions, you should take certain and precise steps so that you’re not taking too steep of gradient in trying to master this complicated matter. 

The first thing you need to do immediately is to take a deep breath. Realize that you are not alone. There are currently millions of homes throughout our great nation that are in default of their mortgage or in foreclosure. Many of these homeowners have similarities to you. They too are hard working. They too suffered hardships. They too desperately do not want to either lose their home, or have a foreclosure on their credit report. However, it is an interesting phenomenon that some homeowners are able to resolve their situation, and yet others aren’t. So what is the difference? Why are some homeowners able to survive the situation and get current on their mortgage default, while others end up losing their homes? 

In order to stop a foreclosure or receive mortgage default assistance, you must first understand what led you there in the first place. It could be said that a foreclosure on your home is not the only thing that is closing in on you. Often times people facing a foreclosure are going through marital problems as well. Still others are not satisfied with their employment, which has led them to depression. If that’s the case, use this as a time to heal. Problems in your personal life are no different than why you now find yourself in foreclosure. If you think about it, not communicating to your partner, not communicating to your employer and not communicating to your lender all have one common thread…Lack of communication. Finally, are you communicating to yourself? Have you taken the first step? You see, the first step is to confront the situation you are facing head on. Make the decision to fight for your survival. This is your home, so don’t lose it! 

Okay, you’ve taken the first step. You are now confronting the situation and have decided to stop the foreclosure. Next, if you are in a committed relationship, communicate effectively with your partner. Talk openly about the situation and that you may need mortgage default assistance. Find out what triggered this. Not the air conditioning unit going out, but rather what caused your finances to be so tight in the first place. Why are you living paycheck to paycheck? Go over your budget with a fine toothed comb. Look for any areas that you can spend less. Perhaps there is some many that is currently being spent on items that you don’t necessarily need. Every dollar you can save, is another dollar you can put towards your “mortgage default fund.” This fund that you create, will establish money that you can put toward your arrears to get your home out of foreclosure. 

Decide that you are better than this and deserve more out of life. Make a decision that once you stop this foreclosure, you will not only get back on your feet but conquer your life. You will make more money. After all, a lack of money will surely cause problems in your personal life. Money can bring many things to your life, and reduced stress over your mortgage payments is one of them. There are many plans that your lender can offer you to help you out, but before your lender will attempt a work out plan to stop the foreclosure, they will want to know that you have a firm grip on your personal finances, which begs the question…do you? Most Americans are having a difficult time handling their financial affairs. This is due to many reasons, but often times leads back to not properly managing your funds. Of course there are things that happen in life that you have no control over, such as an unexpected transmission going out on your automobile. However, your budget should be set up in a way that you properly allocated “emergency” money, so that most hardships can be covered without endangering your mortgage payment. 

Now that you’ve done that and had this proper conversation with yourself and or your partner, look at this through your lender’s eyes. Why are they foreclosing on you? Is it just the fact that you are late on your payments? Or is it due to the fact that you did not call them and explain your situation in a timely manner when you first got behind? Understand that once you are in foreclosure, your lender assumes that you cannot afford your mortgage payment. For that matter, they may also assume that you simply don’t care. After all, they figure that if you could afford your mortgage payment, and if you cared about your home, then you would have contacted them to tell them so. Also, there may very well be a sheriff sale date at this point, and if that’s the case, quite possibly expensive attorney fees. So ask yourself this…If you were your lender, would you give yourself a second chance? Would you offer mortgage default assistance to you? If so, why? Write down the reasons why you deserve assistance with your mortgage. 

Once you have taken all these steps, you must know what your options are. There are various repayment plans that you may qualify for to stop the foreclosure. They range from loan modifications, which may put your arrears onto the back end of the loan or even stretch your loan out further and reduce your interest rate, to a forbearance agreement that could spread your arrears into many months or even a partial claim which is a program offered through HUD. Or you may qualify for a foreclosure bail out loan that could catch you up on your past due payments. But you would have to qualify for any loan program of course, and that would most certainly require either the right amount of equity, good credit scores or both. Once you know what programs you are going for, then it is time for you to negotiate with your lender. To receive mortgage default assistance with your loan, you can either do it all by yourself, or you can contact a professional consulting firm to that knows how to implement the package and has experience in working with all the parties involved. However, you must act quick! Time is not on your side. To stop the foreclosure, you must take action right now. You can do this but remember the first and most vital step. You must confront the situation! ]]> http://webuycincyhomes.net/?feed=rss2&p=31 0 http://webuycincyhomes.net/?p=29 http://webuycincyhomes.net/?p=29#comments Thu, 08 Jan 2009 00:37:10 +0000 http://webuycincyhomes.net/?p=29

The greatest asset you can own is your home. Unfortunately with today’s economic downturn, the increasing unemployment rate and the tightening of credit, many are facing foreclosure. As unpleasant as this situation is, there are ways to deal with it.

Your first option is to sell. Before making this decision there are several things to consider. First, you need to have some idea what your property is worth. One broad stroke is to review your estimated tax statement that is mailed to you each year. Markets will vary but as a general rule, the actual value is closer to twice the amount shown on this statement. You can also look online. Websites like zillow.com and others can provide some sales data in your area and estimate what your property would sell for in today’s market. Another and more accurate way to determine a property’s worth is to consult a real estate agent in your area. Most of them will do an assessment or market analysis report for free. Of course they do this hoping to list your home if you do decide to sell. Knowing this information will help you determine a selling price and negotiate as offers come in.

Once you’ve decided to sell, I recommend hiring an experienced agent that understands your community or suburb. The right agent will know your neighborhood, calculate the ideal price for your home to sell quickly and provide honest feedback on your property’s condition. However, before signing a listing contract with an agent, make sure you understand how he/she will market your property. Ask them for a marketing plan. Time is of the essence so having someone with a well thought out marketing plan will get it sold quicker. Once you’re satisfied with their plan, ask them for an estimated “net sheet”. This will break out all of the expenses related to the sale of your property so you’ll have an idea where you stand financially when the property sells.

You’ll also need to understand the listing contract. A good agent will walk you through all aspects of the contract and explain what each part means. If you don’t understand all of it, DO NOT SIGN IT. As with most contracts, there are many aspects to them and your understanding is essential. If you’re in doubt, ask someone else to read through it, including a real estate attorney. Most will charge a minimal fee for this, but it could save you money in the long run.

Another option is to sell it yourself. The general guidelines set up by realtors and other real estate experts can be managed by a motivated seller doing it on their own. However, your focus is to market the property in every way imaginable if you’re going to succeed.

Needless to say, the best time to take advantage of selling your property on your own, (known as the FSBO method) is during a “seller’s market”. During these conditions, there are not enough homes to supply all of the available buyers. You can pretty much write your own ticket when it comes to setting a fair market price for their home. You can also get the buyer to pay for inspections and appraisals on the property, and perhaps other expenses that might normally be your responsibility in a more balanced market. The money saved by not hiring a real estate agent goes directly into your pocket, along with any other perks conceded by the buyer.

Keep in mind that is a challenge to sell your home in any market. When you represent yourself, the challenge is a bit tougher. Sellers that use the FSBO option invariably start out optimistic, but they often lack the knowledge needed to sell their home effectively. The real estate business has a lot of rules. Laws are constantly changing with regard to closing procedures and property disclosures. Failing to abide by even one regulation can have a buyer breathing down your neck in a court of law. No one wants that.

A motivated seller can try to learn the ins and outs of the real estate business, but that takes time you’re facing foreclosure, chances are good that you do not have time to learn what is needed. If you choose to move down this path, keep in mind that the most crucial period of time for a newly-listed home is its first few weeks on the market.

Sellers who represent themselves are also more likely to commit common sellers’ mistakes, the most common of which is misjudging the value of their home. Market trends, location, and time of year all factor prominently into the final-sale-price equation. A home in a nice neighborhood, near good schools, and kept immaculately could sell for below-market value during the winter months in a buyer’s market.

Therefore, overpricing a home can be a slow death. The house will gain interest in the beginning, but buyers will see other similar properties that are selling for a lower price. Instead of pursuing an offer with the higher-priced seller, they’ll look for more moderate pricing.

There’s also a lot of extra responsibility involved in selling a home yourself. For example, you’ll need to set up escrow accounts. The escrow company that will represent the parties in the sale is charged with holding onto certain documents and funds until such time as conditions are satisfied for those items to be released. Additionally, you’ll be in charge of your own marketing strategy. Failure to market a home in the proper way will result in outright failure to sell your home or selling it for less than you expected.

Things to do

Even in the toughest market, there are things you can do to promote the effective sale of your home. It takes more effort and time, but these tips will help to put you on the road to your final goal, getting a fair price for your property in a reasonable amount of time.

It all begins and ends with the home. That “lived in’ look won’t do when it comes to showing your house to potential buyers. You’ll need to make some changes if you want anyone to be impressed with your cozy dwelling. And you’ve got to start somewhere, so get rid of the clutter. Take an honest look at those piles of papers, boxes of toys, and bags of unused clothing. Don’t just hide them in the closet. Most people, when examining a house for possible purchase, look to see how much closet space there is. Boxing everything up and storing it in the garage is not a good idea, either. Hold a yard sale to get rid of all that stuff or donate it to charity. Or, temporarily rent storage space to hold what you decide to keep so that it’s not around for visitors to accidentally find.

Once you’ve dealt with all the clutter, it’s time for spring cleaning of the entire place – from top to bottom. But, don’t neglect the yard. As potential buyers drive by or get out of their cars you don’t want them to see clumps of brown grass and dead flowers all over the place. The yard is an extension of your home. It needs as much time and attention as the inside of the house. After all, the vast majority of buyers want the total package, and they aren’t looking for a fixer-upper. Hire a comprehensive lawn service if the yard has been neglected for some time or has serious problems.

Making repairs to your property is also a part of getting it ’show-ready.’ Choose which repairs you will make. Major structural problems should be dealt with or they will become points of negotiation by the buyer in an effort to lower your selling price. Flaking paint and other cosmetic touches are inexpensive and will enhance the look and feel of your home.

Advertising options

Use the money that you saved on the agent’s commission fee to beef up your advertising. If people don’t know that your house is for sale, they won’t come to see it. Marketing is the biggest responsibility of the do-it-yourself home seller. Start with the obvious. Put up a noticeable sign in the yard. This lets people know that your home is on the market. It’s also a signal to potential buyers that you’re ready for visitors, so make sure that the house is ready to be seen before inviting potential buyers in.

Many home buyers today look to the Internet when searching for properties. The Internet provides a quick way to establish parameters that meet one’s particular specifications. In a few clicks, the buyer can see listings of the homes for sale within his or her price range and desired area. You as a seller can take advantage of this trend to get greater exposure for your property.
Online listings typically include much more information than the traditional newspaper ad, so make use of all of it. There’s also room for pictures to be uploaded. Take five to ten flattering shots of the exterior and any special features inside the home. If you have the money, hire a virtual tour company to create a 360-degree view of your home for the web listing.

You needn’t disregard the newspaper, however; it’s still a good place to advertise locally. Although circulation is down in favor of Internet-accessed news, many people will still usually buy the Sunday newspaper, especially for the coupons and ad sections. Include a color picture in your to enhance your description and set your ad apart from the others. And try not to use too many abbreviations in your text; people tend to think they’re reading shorthand and will give up if it gets too cryptic.

Showing your home

Without a realtor, this part of the process is also up to you. If you’re an outgoing sort, this is a chance to hobnob with potential buyers. If you’re not very outgoing, well, put on your best “Welcome to me home!” face. You can showcase your home by appointment only or as an open house. In the beginning you might consider an open house or two – works best when buyer interest is high.

One thing to be careful of, however, is talking too much about your home. Buyers will begin to think the home is ‘too good to be true’ if that’s all they hear you talk about. As you show the home, answer questions about the features if asked, but talk more about the amenities surrounding the neighborhood than the house specifically. Remember, location is a big, big selling point. Put out the sign advertising the showing at least half an hour before the start time. Advertise too early and you’ll get people knocking on your door before you’re ready. They’ll say they were in the neighborhood so they just decided to stop by.

Be sure to post a sign-in sheet near the front door. As guests arrive, have them sign their name and wait for the tour. A family member stationed at the table can ensure that each visitor complies. One downside you’ll have to deal with when showing your home is that there will be people who’ll show up just to see the house but aren’t really serious about buying. Unfortunately, nothing’s perfect. And as a precaution during your preparation, remove all valuable items from plain sight and out of the rooms that you’ll allow your visitors to see.

When the show is over and everyone’s gone, use the sign-in sheet to follow up with the attendees within 24 to 48 hours. Tell them that it’s a courtesy call to solicit feedback for the home or the show. To make it easier, have a list of questions typed out and fill in the answers on a separate sheet of paper for each person.

Negotiating the Purchase Contract

As a For Sale by Owner property, the seller must negotiate the contract with the buyer or their agent, if the buyer has representation. Buyers will submit offers to you for your consideration. Check with a local realty company to see if there is a special form on which to submit offers (some locales may by custom use a particular one). Expect that some buyers will try to lowball you, especially in a buyer’s market. Don’t just reject their offer outright, even if it is ridiculous. You can always submit a counter offer to the buyer. He or she could just be testing the waters to get the ball rolling and counter you again with a legitimate offer for the property. Again, consider all offers that you receive. Remember, this is the negotiation phase, where you really get down to business. For the offers that really interest you, ask the buyer to submit an earnest money deposit to show his or her intent.

Before negotiating with anyone, however, hire an inspector to look over the house and land. You’ll want to know if there are any major problem areas before entering into actual negotiations. Any known structural problems must by law be disclosed to the buyer, who might hire his or her own inspector to check out the home. In some areas, a pest control report may also be required. All repairs that are needed do not have to be completed before the home sells. Major damage should, of course, be attended to but small things can be disclosed and negotiated as a part of the purchase price.
Home warranty plans guarantee certain appliances and other structures in the home by covering their cost of repair or replacement. Most often included are the kitchen appliances, ducts, electrical wiring, and heating and air conditioning units. As the seller, you can purchase a one-year plan for the buyer that includes coverage for these and other items.

The important thing to remember is not to be intimidated during negotiations by the buyer or their agent. You might consider hiring your own agent that offers hourly rates for services for such as contact negotiation and closing. Since you’ve done all of the other work, this is a small price to pay for their expertise at such a crucial stage of the process.

If you need more help or suggestions, simply drop us a note.

There are many different ways to avoid losing a home to foreclosure. Let’s take a look at five different ways that in selling your property in opposed to foreclosure.

Are you currently facing-“negative equity” where you owe more than your house is valued at? Presently your burdens of debt are high; you’re facing long term financial troubles. Maybe your household income has been cut greatly.

There’s what we call a “Deed-in-lieu” of foreclosure. This works by the homeowner avoiding foreclosure and agree signing the deed over to the lender and agrees to move out of the house. With this type of agreement between homeowner and lender, both parties benefit.

This option benefits the homeowner with the relief of further loan obligations and delinquent payments. The lender benefits include time management and legal fee costs saved. It’s an all around win-win scenario for all parties involved. This type of sale is also referred to as a homeowner selling the home to the buy and is not obligated to pay off the existing mortgage.

Or, the buyer is purchasing property “subject to” any previous existing loan.

In this case the purchaser agrees to bring the current mortgage payments up to date. Than continue the mortgage contract according to its terms until it is paid in full. Or the purchaser refinances or sells to a third party.

Using the “subject to” selling option to avoid foreclosure can be easy. It can rescue your credit with current mortgage payments and selling your property. Plus the time frame from sale to closing is reasonably short. Subsequently, there is a drawback, even though someone else is now living in your house and paying that bill; the mortgage is still on your credit report. And you don’t own it.

If the new owner doesn’t make the payment, you will still have to make it just to save your credit. A “subject to” sale has another problem. If you have a “due-on-sale” clause in your mortgage contract, a “subject to” sale would be in violation of contract. A clause “Due-on-sale” gives the lender the right to request payment in full if the borrower doesn’t hold up his end of the contract.