Truly there is only one reason that a property won’t sell and that is price.  Obviously a lot of factors go into what you are going to net on a property but the fact of the matter is that if your property is not selling there can only be one reason.  People will buy anything if the price is right.  Why else would millions of Americans go to dollar stores and buy worthless things that typically only make it through one use. 

Of course you can always make changes or alterations to your real estate that will get you a better price.  But if your property is just sitting there and had very few showings then price can be the only real reason.  Lots of buyers are currently looking for properties.  Yours will be on their list if the price is right. 

For years it has been drilled into our heads that location, location, location is the key and to some extent that is right.  But we’re not talking about how to get the most money for your property.  We’re not talking about how to make your property more marketable.  The only thing we are covering is why your property is just sitting there the way it is now.  I’ve seen buyers purchase properties in some of the worst locations and in the worst conditions, even mold infested but they all had one thing in common - the price! 

If you are a seller sitting on a property that just isn’t moving then you really only have two options.  One - take it off the market if it can’t bring the price you need.  Or two - lower the price!  It seems like a no brainer but I can’t tell you how many times I’ve been blamed for someone’s property not selling when I’ve told them repeatedly that it’s the price not the salesperson.  No matter how good of an agent you have no one is going to buy an overpriced property especially in this market. 

It seems great doesn’t it?  The government jumping in to help the housing market by staying off foreclosures for a few months to help sellers regroup their financing.  The interesting part about that is if a person is already that many payments behind giving them a couple extra months does nothing but allow them more time to find a place to live.  Most mortgage companies by this point have tacked on so many late fees that it makes it impossible for a homeowner to catch up once they are behind.  But this little article isn’t really about ragging on mortgage companies.  At first they were applauded for getting so many people into homes.  A couple of years ago everyone was on tv shouting about how glorious it was the home ownership was at an all time high.  Now they are on the other end of the stick printing gloomy stories almost every day about how big the housing market pit is.

One part of the housing crisis I wanted to write about was the process of a short sale.  Now, from the surface this seems like one of the best deals around if you as a seller are getting ready to lose your home to foreclosure.  In a short sale the lender agrees to take less than what is owed on the home so that the seller is able to move the property.  Sometimes the properties are sold at just market value and other times they are sold for under the value.  If a seller is in a market that has had a rather large down turn since they purchased their home they could be looking at a pretty large decrease in value.  A short sale, if agreed to by the lender, would allow the seller to drop the price.

This sounds like a cherry in the midst of a disaster.  Who knew that while your American dream was going down the toilet your government would step in on the backside of this short sale transaction.  Now you are wondering what I’m talking about.  I’ll just have to give you an example.  Say you owned a property that you owed $280,000.  You’ve had misfortune and cannot pay your payments.  Your lender agrees to a short sale.  Yippee you think.  Your property is sold to another buyer for $230,000!  Wow, they got a deal!  And you think you are on the path to making things right and getting a fresh start.  But then a few months later a 1099 shows up in your mailbox from your past lender which shows you are liable for taxes on $50,000 which is the difference between what you owed on your mortgage and the price it was sold at.  Crazy?  You bet.  The IRS counts that money as a gift even though it truly doesn’t even really exist.  So, if you couldn’t pay your mortgage how on earth are you going to be able to pay the taxes on that? 

Your government isn’t completely concerned about correcting the housing market because they are going to try to squeeze money of struggling Americans either way.  They are going to hold thousands upon thousands of families who have lost their homes to paying taxes on money that doesn’t even exist.  That a seller never really had access to.  They are not only doing it on short sales but foreclosures and bankruptcies.  Unbelievable.  Why would they want to correct something that is another source of income for them? 

I’m all for people paying what they owe and trying to get their bills paid.  But if someone has honestly been trying but had a setback then I don’t think it’s appropriate for anyone to kick them while they are down.  In this instance it is like dealing with a wolf in sheep’s clothing. 

You’ve heard honesty is the best policy.  Well, it’s no different in real estate.  It will make your home buying experience go a lot smoother if you are honest and upfront with all those that are involved in your property transaction.  Often times if you speak with your agent before going out to look at potential homes about your credit and history they can help you get on the right track with your financing.  They can offer you alternatives or guide you down the correct path.  A good lender will also help you with this.  Eventually these professionals are going to find out your complete situation anyway.  So, it will save you time and money to lay it all out ahead of time.  This can also help you get a better interest rate and make a better offer on a property.  This will also allow you time to clear up any issues that may be on your credit report.  It’s always best to be ahead of the game so that, with the help of your real estate agent and lender, you can get the best deal possible on your new home and enjoy moving in!

With so many lenders and mortgage brokers along with an array of loan package programs it is easy to get frustrated with so many choices and options.  But a buyer will be better in the long run if they take the time to really understand the loan terms being offered to them.  And it is always best to start this process before shopping for that dream home.  Not only will this save you from looking at properties that are out of your price range but you will also know upfront what your costs are going to be in acquiring that new home.

These days it is pretty hard for most buyers to come up with their own down payments along with covering their closing costs as well.  Lots of lenders are providing down payment assistance programs that will allow a buyer to get in a home much faster than if they had taken the time to save up the money themselves.  The generic explanation of the program is that your down payment is taken care of by the seller and sometimes even your closing costs.  The full length explanation should be sought out so that you, as a buyer, will really know what is happening in this funky way of financing.

In general, your contract is going to be written up like the seller is kicking back or paying your down payment, which is usually 3%, and your closing costs for you.  But in reality you are really paying them.  What happens is the down payment and closing costs are balled up into your loan package and added on top of the sales price of the home.  The seller has a certain price they are wanting to net.  Your dpa or down payment assistance is added on top of what that price is.  These programs are great for first time home buyers and those that may otherwise not be able to get into a new home but a buyer also needs to be educated when participating.

A buyer may end up with a little bit higher payment than they were originally anticipated.  Buyers also may be required to pay a fee for participating in the program which typically runs around $500.  Buyers also may end up initially paying more than the home is worth.  If you are planning on moving within a couple of years this program may not be for you because when you go to resell the home you will not have any negotiating room on the price.  These programs work best with properties that a buyer can get at below market value.

I recently ran across some data that showed there are over 300,000 people moving around the United States each week.  Of course this number flucuates but that is an astounding number of potential prospects for real estate agents to tap into!  This means that somewhere between 15% to 20% of the nation’s population is on the go.  Stepping back from this new picture to take a better look at it gave me some insight on a new way to go about tapping into more of this segment of the market.  One needs to look at the picture as a whole.  These movers are going to need other services besides that of a real estate agent.  They are going to be looking at services that others offer in your community as well.  Obviously this is going to vary from area to area but the basics would still be the same.  Just a few of the services they will be seeking out are security or alarm systems, lawn care providers, childcare, education, health care, banking and financial services. 

As a real estate agent we could be taking advantage of this vital information.  Take the time to get to know those that offer these services around you.  These service providers are going to be coming into contact with people who will need the services that you offer as an agent and vice versa.  Building these relationships will allow you to receive business you might have only gotten by chance.  The businesses around you can help you build your business by giving your name out when they come into contact with someone who is looking to move into the area.  You will already have built a relationship with the provider and they can spread glowing recommendations about you with confidence because they know who you are.  And you, too, can return the favor by sending them business from those you help relocate.

In the long run, building a business on a solid foundation of referrals will keep your pipeline filled with transactions no matter what the market does.  This is what helps those still in the business weather the storms and ride the waves.

I love websites that offer practical tools that help with the tasks of being a real estate agent.  Sometimes I relate being a real estate agent to the profession of a doctor.  Now, I know that they are really on two different levels.  But, the application is still the same.  Doctors could spend more time actually doing the ‘job’ that they trained for if it weren’t for all the paperwork and little particulars of the trade that keep them tied down to a desk for part of their shifts.  Likewise, a real estate agent who has assistance with the small tasks of the job can do more out in the field of housing if only they were equipped with the right tools. 

Recently, I found such a tool that I think is going to be a great asset to our team.  One of the things that I struggle with is keeping on top of getting feedback from other agents that have shown the properties we have listed.  Not only is it time consuming but it usually is a task that takes two or three attempts to even get anywhere.  I’ve been guilty myself of putting off calling back other agents regarding feedback on their properties simply because there are not enough hours in the day.  By the time I get done with the actual necessities that have to be done it is usually too late to be calling people back to tell them what I thought or what my clients thought about a property.  Maybe this goes on the back burner because it is really only beneficial to the party requesting the feedback.  They are doing it for one of two reasons.  It’s either they are truly interested in hearing your opinion and will use it to better market their house OR they feel obligated to do so just to appease their seller.  Let’s face it… if your clients had liked the house that much they would have tried to buy it.  But, either way, I’ve ran across a website that offers a product that will not only make it easier for the listing agent to get feedback, but it will be easier for the buyer’s agent to give it, and it will even be easier for the seller to get the third party opinion.  HomeFeedback.com has been around a while but it’s one of the best kept secrets in my opinion.  There system will take care of emailing other agents for feedback, collecting the data, and also contact your seller with the information.  Wow, what a time saver already.  That saves you at least two phone calls right away.  Best of all your seller will think your right on top of gathering all the data necessary to effectively help them sell their home in the fastest possible way at the best price.  And the price isn’t bad either!  What would you pay an assistant to help you make all the calls, receive the calls, gather the information, and contact your clients with it so they can report back to you?

Check it out….  a little help goes a long way and it’s only a click away.

Don’t just run from your mortgage issues.  Work with your lender!  You may be surprised at how they can work with you.

1.  Getting a Reinstatement - Bring your mortgage current. This option is rarely attainable. The lender will add late fees on top of your back payments.

2. Forbearance - Arrange a payment plan based on your financial ability.

3. Loan Modification - Adjust the terms of the loan to meet your financial situation.

4 Partial Claim - Have the repayment amount applied to the end of the current loan and resume normal payments.

5. Refinance - You may be able to refinance if there is enough equity available.

6. Sell Your Home - You can sell your home before the foreclosure date. This is not an option if the seller cannot get the needed sales price. A short sale may be negotiated with your lender. The lender may take less than what you owe on the loan to avoid the foreclosure process.

7. Deed-in-lieu of Foreclosure - You simply give the home back to the lender and walk away.

8. Bankruptcy - A last resort. This will only save your home temporarily and if you miss one payment during this process the lender will put you right back into foreclosure.

9. Foreclosure - The home may be entered into foreclosure. The lender will take your home and all of your equity. If there is no equity they may come after you to pay the shortage. This is the most damaging to your credit.

…if you don’t have a real estate website and you are a real estate agent then you are missing out on a very fast growing segement of the real estate market.  Over half the buyers who are looking for properties to purchase are starting out on the internet.  It’s one of the best return on investments you’ll ever have as a realtor and best of all it’s so easy!

It would be impossible to know all the laws, statutes, and tax guidelines that make up our government.  That’s pretty sad in a way that it has gotten so complicated and so overwhelming that no one can know everything that is expected as well as offered.  But, one needle in the haystack could help you out with your past and future tax bills if you hurry and take advantage of it before then end of this year.  Please seek the advise of your personal accountant to find out how the following real estate investments could benefit you.

Under the GO Zone Act, taxpayers are now allowed an additional depreciation deduction equal to 50% of the depreciable basis of qualified Gulf Opportunity Zone property for the first year the property is placed in service. This additional first-year depreciation deduction is calculated after any Section 179 deduction, but before the regular depreciation deduction. The following conditions must exist in order to qualify for this additional depreciation:

• The property acquired must be qualified GO Zone property (see list below).
• Substantially all of the use of the property must be in the GO Zone and be in the active conduct of the taxpayer’s trade or business.
• The original use of the property in the GO Zone must commence with the taxpayer on or after Aug. 28, 2005 (but the property may have been used property outside of the GO Zone prior to the taxpayer’s acquisition).
• Must be placed in service before Dec. 31, 2008, for residential and non-residential real property and Dec. 31, 2007, for all other property.
• Must elect out if not deducting in the current year.
• No Alternative Minimum Tax depreciation adjustment.

Qualified property for the GO Zone bonus deduction includes:

• Tangible personal property with a MACRS or ADS recovery period of 20 years or less
• Computer software other than software that would be amortized over 15 years
• Water/utility property
• Qualified leasehold improvement property
• Non-residential real property
• Residential real property