Joe Capote

October 22, 2009 • 3:55 pm 0

When Does Moving Up Make Sense

I’ve been getting a lot of feedback from my earlier posts, where I dissect the housing recovery assertions and respond that the ‘move up’ market is missing, thereby causing a lack of available homes for first time homebuyers and a glut of high-end homes with few available move-up buyers. Just to recap, a move-up buyer would be a current homeowner looking to sell their current home and ‘trade-up’ for better home. Here are some direct answers, compliments of the National Association of Realtors.

These questions will help you decide whether you’re ready for a home that’s larger or in a more desirable location. If you answer yes to most of the questions, it’s a sign that you may be ready to move. 

1. Have you built substantial equity in your current home? Look at your annual mortgage statement or call your lender to find out. Usually, you don’t build up much equity in the first few years of your mortgage, as monthly payments are mostly interest, but if you’ve owned your home for five or more years, you may have significant, unrealized gains.

2. Has your income or financial situation improved? If you’re making more money, you may be able to afford higher mortgage payments and cover the costs of moving. 

3. Have you outgrown your neighborhood? The neighborhood you pick for your first home might not be the same neighborhood you want to settle down in for good. For example, you may have realized that you’d like to be closer to your job or live in a better school district. 

4. Are there reasons why you can’t remodel or add on? Sometimes you can create a bigger home by adding a new room or building up. But if your property isn’t large enough, your municipality doesn’t allow it, or you’re simply not interested in remodeling, then moving to a bigger home may be your best option.

5. Are you comfortable moving in the current housing market? If your market is hot, your home may sell quickly and for top dollar, but the home you buy also will be more expensive. If your market is slow, finding a buyer may take longer, but you’ll have more selection and better pricing as you seek your new home.

6. Are interest rates attractive? A low rate not only helps you buy a larger home, but also makes it easier to find a buyer.

Items number 5 and 6 and especially important in today’s market. Interest rates are low, and despite inflationary pressures should remain low for a bit longer. Number 5 is a harder answer, especially if buying a new home is contingent upon selling the old one. You will need to find a seller willing to let you buy based on the contingency, and then market and price your current home to sell, since the old housing market ain’t what it used to be. It’s not an impossiblilty, but both buyer and seller will need to be flexible, competitive and willing to compromise. If you are able to buy a new home without selling the old, then your options are a little better. You can lease out the old property until you fell comfortable selling, or you can sell it at your convenience given the buying the new home is not contingent upon the sale. In this scenario (given you feel positive about your income and ability to afford more home), moving up is a clear possiblity and may very well make sense for you.

For this and more stuff on buying or selling, visit www.JosephCapote.com. Really, my website analytics reports are so incredibly depressing. And my bounce rate would make Magic Johnson proud. Click the link… You know you want to!

Filed under: Buyer's Blog, Seller's Blog, , , ,

October 19, 2009 • 5:05 pm 0

San Mateo County Housing Data

This is a follow up blog to an earlier post,Economists Predict Housing Recovery, where I will use my mad market metrics skills to highlite some of housing data in San Mateo County in an effort to support the majorty of economists predictions that the housing market is on the upswing and recovery is nigh.

Here is the San Mateo County data. Lets take a look at home sales in single family residences within the 250k to 600k price range over the last year. Let’s start with the number of sold properties per month:

sold_props

Home sales in San Mateo county for this price range have been trending upward, but have been stagnant over the last three months. A lot of economists and real estate professionals attribute this to sales spurred by the first time homebuyer tax credit, set to expire at the end of November. While this number is a 35% increase over last year, we should be cautious before we all get giddy over the home sale numbers,. In fact, lets take a look at the homes for sale in the same data set:

for_sale_props_smc

So the amount of real estate ‘product’ on the market has dropped significantly over the last year, down 50% in the past year. So less homes on the market, more competition for homes by motivated buyers. This also results in fewer days on market, another key indicator being used in the “recovery is nigh” discussion.  

Here I am taking a look at supply and demand, or homes available vs. homes sold in any given month. According to this, available homes are trending downward while home sales trend upward.

supply_demand_smc

Supply is down 50%, and demand is up 35%. This all looks rosy, does it not?

This problem I have is that I  disagree with the economists assessments that these are all first time homebuyers purchasing homes in move in condition. The amount of short sales and REO’s on the market, which tend to attract investors and not first timers, is significantly higher than traditional sales. What I think the economists are really missing here is granularity into home sales. For example, the decreasing amounts of homes for sale lead us to believe that move-up buyers, those who own a home but are looking to sell and move up, are not active in the market. I should also mention the moratorium on new REO’s for sale. This is a problem that causes a glut in the purchase market; first time homebuyers are ready, willing and motivated to buy, but there is no product to move them into. The move up buyers are not selling, and hence the product supply is down. And the investors are snapping up the short sales and REO’s with all cash offers, skewing the sales and average days on market numbers.

Moral of the story – Just because we, as realtors, can point at numbers like average days on market trending downward, home sales trending upward and supply/demand numbers getting closer to equilibrium, we need further granularity in these numbers to truly understand the big picture. Short sales still dominate the available product, and like it or not those make buyers and agents nervous. The move-up buyers(sellers) are watching the market intently and holding the rich vein of traditonal listings they offer with them. Average days on the market is tied to homes for sale, so less product equates to less time on market.

I’m feeling much better about things, but there is a lot more to look at before I’m ready to jump on the recovery bandwagon.

Filed under: Buyer's Blog, Market Data, Seller's Blog

October 16, 2009 • 2:11 pm 1

Economists Predict Housing Recovery

I just came across this article from the associated press:

Economic forecasters predict that 2010 will be the first year since 2005 for housing to contribute to the growth of the U.S. economy, according to a survey released by the National Association for Business Economics.  

Home prices are expected to rise 2 percent next year, but forecasters don’t believe the increase in prices will discourage homebuyers. 

More than 80 percent of economists surveyed by the NABE think the recession is over and recovery has begun, but they expect the expansion to be slow because unemployment persists. 

Source: Associated Press, Mae Anderson (10/12/2009)

For what seems like a little while now, a lot of enomists have been telling us that the recession is over and that recovery is nigh. Unfortunately, if this is the new global economy norm than we are in for one hell of an adjustment period. As of August, the California unemployment was at 12.1% (not seasonally adjusted, of course). The EDD is still so inundated with calls they cannot answer them fast enough. The outlook for job creation in Californa is less than rosy, as the California job creation index dropped 2.2 points in the month of September. Only 54% of polled workers had confidence in the future of their current employer. “The hiccup in this month’s California Employee Confidence Index can be attributed to a dip in confidence among workers’ personal employment situations,” explained Brian Veverka, senior branch manager for Spherion. “We were quite surprised to see that workers were feeling less secure in the future of their current employers, yet more confident in the health of the overall economy.”

Don’t get me wrong, I am quite happy to see the housing numbers going in the right direction. Traditionally, housing leads us in and out of recessions. I’m just not convinced that the recovery is on, until job creation and confidence is stable. Those who are out of work remain out of work, and those who are working aren’t inspired with confidence that they will continue to be. Until this turns around, it’s still a recession to me.

Posted via web from josephcapote’s posterous

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October 15, 2009 • 11:27 am 0

Supplemental Property Tax FAQ

Who doesn’t love supplemental property taxes? Despite the lack of popularity around the subject, it is good to know what the California Revenue and Taxation Code is all about. Here is a FAQ that will help you navigate the Supplemental Tax code waters. Good luck, and remember to read this with a strong cup of coffee or the caffeinated beverage of your choice!

Q. When did this tax come into effect?
A. The supplemental Real Property Tax Law was signed by the Governor in July of 1983 and is part of an ambitious drive to aid California’s schools. This property tax revision is expected to produce over $300 million per year in revenue for schools.

Q. How will Supplemental Property Tax effect me?
A. If you don’t plan on buying new property or undertaking new construction, this new tax will not effect you at all. But if you do wish to do either of the two, you will be required to pay a supplemental property tax which will become a lien against your property as of the date of ownership change or the date of completion of new construction.

Q. When and How will I be billed?
A. “When” is not easy to predict. You could be billed in as few as three weeks, or it could take over six months. “When” will depend on the individual county and the workload of the County Assessor, the County Controller/Auditor and the County Tax Collector. The assessor will appraise your property and advise you of the new supplemental assessment amount. At that time you will have the opportunity to discuss your valuation, apply for a Homeowner’s Exemption and be informed of your right to file an Assessment Appeal. The County will calculate the amount of the supplemental tax bill. The supplemental tax bill will identify, among other things, the following information: the amount of the supplemental tax and the date on which the taxes will become delinquent.

Q. How will the amount of my bill be determined?
A. There is a formula used to determine your tax bill. The total supplemental assessment will be prorated based on the number of months remaining until the end of the tax year. June 30.

Q. Can I pay my Supplemental Tax Bill in installments?
A. All supplemental taxes on the secured roll are payable in two equal installments. The taxes are due on the date the bill is mailed and are delinquent on specified dates depending on the month the bill is mailed as follows: (1) If the bill is mailed within the months of July through October, the first installment shall become delinquent on December 10 of the same year. The second installment shallbecome delinquent on April 10 of the next year.(2) If the bill is mailed within the months of November throughJune, the first installment shall become delinquent on the last day of the month following the month in which the bill is mailed. The second installment shall become delinquent on the last day of the fourth calendar month following the date the first installment is delinquent.

Q. Can you give me an idea of how the proration factor works?
A. The supplemental tax becomes effective on the first day of the month following the month in which the change of ownership or completion of new construction actually occurred. If the effective date is July 1, then there will be no supplemental assessment on the current tax roll and the entire supplemental assessment will be made to the tax roll being prepared which will then reflect the full cash value. In the event the effective date is not on July 1, then the table of factors represented on the following panel is used to compute the supplemental assessment on the current tax roll. The County Auditor finds that the supplemental property taxes on your new home would be $1,000 for a full year. The change of ownership took place on September 15 with the effective date being October 1: the supplemental property taxes would, therefore, be subject to a proration factor of .75 and your supplemental tax would be $750.

If the effective date is:                               The proration factor is:
August 1                                                         .92
September 1                                                 .83
October 1                                                      .75
November 1                                                .67
December 1                                                 .58
January 1                                                     .50
February 1                                                   .42
March 1                                                         .33
April 1                                                           .25
May 1                                                            .17
June 1                                                           .08

Q. Will my taxes be prorated in escrow?
A. No, unlike your ordinary annual taxes, the supplemental tax is a one time tax which dates from the date you take ownership of your property or complete the construction until the end of the year on June 30. The obligation for this tax is entirely that of the property owner.

Source: CLTA

Still awake? Then visit my website at www.JosephCapote.com for more information on this and other real estate topics.

Filed under: Buyer's Blog, Seller's Blog,

October 13, 2009 • 9:43 am 1

6 Ways to Stage Your Home for Less Than $1,000

Staging a home for sale is all about making it inviting to the largest number of potential buyers. If a home is vacant, a stager will haul in furniture and décor so buyers can imagine themselves living there. If it’s occupied, the stager will declutter, neutralize and decorate for the masses.

Staging won’t make a home sell for more than it’s worth. But it can set your home apart and boost the selling price to the top of the range for comparable homes. It can also cut the time on the market. Because nearly 90% of home buyers start their search on the Internet, staging is a good way to make sure online photos pop.

Home sellers spend an average of $1,800 to stage a home, but costs can range from a couple of hundred dollars to $5,000 or more. Here are six ways to stage your home for less than $1,000.

Virtually stage your vacant property. Virtual staging is aimed at online shoppers who may quickly lose interest in a slide show full of floors, ceilings and bare walls. Sellers or their real estate agents send pictures of the empty rooms — a 2- or 3-megapixel camera is all you need — to a virtual stager, who sends back images of the same rooms, tastefully furnished, for use online and in marketing materials.

Ethical stagers won’t alter the color of floors or walls, improve the view, change light fixtures or fix imperfections. Nor will they work from photos of furnished rooms because they don’t know what lurks under the existing rug or behind the real-life sofa. Still, for buyers, it goes without saying that there’s no substitute for an in-person tour.

Virtually Staging Properties, in Atlanta, charges $225 for three virtually staged photos, $280 for four and $325 for five. Send in a high-quality photo (at least 5 megapixels) and for $50 you can get an 8-by-11-inch paper enlargement to mount on the wall so that open-house visitors can see an empty room’s potential.

Virtual Staging Solutions, in Cranford, N.J., recently offered three virtually staged photos for $197.

Pay for a plan, do the labor yourself. Many stagers work as consultants, touring your house and offering suggestions on how best to present it. Barb Schwarz, a longtime home stager and founder of the International Association of Home Staging Professionals, says the average fee for a consultation is $350 and often involves a tour of the property that lasts two hours or longer, photos and a 30- to 50-page report.

No Vacancy in Atlanta, Virtually Staging Properties’ sister company, charges $250 for a three- to four-hour consultation split over two days — the first to give you ideas and the second a couple of weeks later to suggest finishing touches. In Minneapolis, Lori Matzke, founder of Center Stage Home, charges $250 for a 90-minute walk-through. Customers are in charge of taking notes, so she encourages them to follow along with a video camera.

When working with a consultant, you do the cleaning, the decluttering and the trips to the dump, or rental of storage space. Load up an 8-by-8-by-12-foot or 8-by-8-by-16-foot portable storage unit from PODs, which will deliver the unit to your driveway for $75, transport it to a secure storage facility for another $75 and charge you a monthly storage fee of around $150, depending on where you live, the time of year and other factors.

Among the accoutrements of home you’ll need to jettison or stow: family photos, magazines, toys, cosmetics and other grooming supplies in the bathroom, and countertop appliances and cutting boards in the kitchen. “Pretend you’re camping,” says Schwarz. Leave only necessities, and store them in cabinets

Paint rooms in light, neutral colors, which are widely appealing and make your rooms look bigger. “Different-colored bedrooms are like Ginsu knives that chop up space,” says Schwarz. Put a touch of greenery in every room — preferably harvested from the backyard.

Negotiate a vignette. A staged home calls for scenery—for example, a ficus tree, a beautiful chair and a side table with accessories. If you don’t need furniture brought into an otherwise empty space, you may be able to negotiate for décor only — call it a pizazz package. No Vacancy will bring in wall art, area rugs, lamps and other accessories to neutralize and update a customer’s existing furnishings. The service runs roughly $250 per month, with a three-month minimum, plus one month’s fee for setup and breakdown. Center Stage Home charges just $600 for three months; adding heavy pieces, such as a sofa, tacks another $300 to the tab.

Focus on just a few rooms. Spend your budget on the entryway, main living area, kitchen and master bedroom. Many stagers charge an hourly rate — $75 to $125 is typical. Ignoring secondary rooms, or doing them yourself once you’ve seen how the pro works, can save hundreds of dollars.

Do tackle particularly challenging areas — say, an attic bedroom with odd angles and crannies or a pink-tiled bathroom in an older home. You needn’t go overboard. A soft, creamy paint color, such as a pale gold, on the attic walls and ceiling will downplay angles and make the ceiling seem higher. Tone down a Pepto-Bismol look in the bathroom with white and black — tie a white shower curtain on the rod with black-and-white ribbons, and hang black bath towels.

Shop at home. Scour the house, yard, garden shed and garage to carry out your home’s transformation. Schwarz recalls facing a challenging boy’s bedroom once, which had a broken curtain rod, torn drapes and a collection of disturbing posters. A tour of the shed, yard and garage yielded a trove of fishing equipment and—voilà—a new theme. A fishing pole replaced the broken curtain rod, and a sheet from the linen closet, tied back with rope, became the curtain. Atop the dresser: a tackle box, some fishing books and a lamp placed inside a cleaned-up fishing boot. The other boot became a planter for some alder branches from the backyard. The headboard was draped in a fishing net adorned with lures. Cost: virtually zero. And when the house sold, the buyers asked that the décor convey.

In the main living areas, though, themes are best avoided. “The whole idea is to appeal to as many buyers as possible,” says Matzke. “Themes can be distracting.” Think flexibly as you rearrange furniture: a nightstand can be an end table, a bureau can be a buffet, and a hutch can double as a bookcase. Cardboard moving boxes can stand in for a bed in an unfurnished bedroom. Cover with a gorgeous spread and pillows and no one will know. Still missing something? Shop Craigslist.org, or ask family and friends for a loan.

Step outside. Clean up debris and pull dead plants or shrubs. Trim remaining greenery, especially anything blocking a window. Banish planters, barbecue grills and toys from the deck. You can’t paint your home’s entire exterior for less than a grand, but you can refresh the front and garage doors with a coat or two; ditto for the shutters and trim, especially window ledges, and the mailbox. Clean up rust spots or streaks on downspouts while you’re at it, and repaint or restain the fence. Typical cost for exterior touch-up, including repairs to chimney, gutters, roof and porch: $660 to $940, according to HomeGain.com, a home-marketing Web site. 

 I came across this article while researching better ways to stage some of our listings. I thought they wer nice and easy ways to add value to your home for sale.

Posted via web from josephcapote’s posterous

Filed under: Seller's Blog,

October 12, 2009 • 11:10 am 0

U.S. Begins to Crack Down on Loan Modification Scams

Source: by Mike Webb, Pro Publica & NBC Los Angeles
Posted on: 12th October 2009
 

21st Century Legal Services, Fidelity National Legal Services under federal investigation

You’ve probably heard ads on the radio from those companies that promise to get your mortgage payments slashed, sometimes in half. They’re called loan modification companies.

Authorities say many of them are scammers and con artists, but they haven’t always been able to shut them down. NBC investigative reporter Joel Grover exposes how one of the biggest loan modification companies has managed to stay in business, even though authorities in several states have tried to stop it.

The company has been widely known as 21st Century Legal Services, and its ads say it can get you a lower monthly payment and lower interest rate on your home mortage.

Joanne and Dave Steffin signed up with 21st Century, because they say the company promised to help them avoid foreclosure on their Rancho Cucamonga home. But the Steffins say all 21st Century did was take their money and not deliever on its promises.

“It’s not even the fact that they took your money. It’s the fact that you may lose the home still,” Joanne Steffin said.

In the last year, 21st Century became a giant in the loan modification business, operating out of a business park in Rancho Cucamonga, with dozens of employees working the phones, signing up homeowners desperate to avoid foreclosure. But two ex-employees tell NBC that the majority of 21st Century clients never got their loans modified.

“You were told to promise (clients) that they could get their loan modified?” Grover asked one of the former employees.

“Yeah, 100 percent,” the ex-employee answered.

Four states have sued 21st Century, and the Better Business Bureau says 21st Century has more complaints than any other loan modification company in business. But that didn’t stop 21st Century from signing up more and more clients.

Those two ex-employees explained to NBC about how 21st did business. The company always asked homeowners to pay them a hefty fee upfront, supposedly to get their loan modified.

Joanne and Dave Steffin had to fork over $3,500, and were told that 21st Century would be “working diligently with their lender” to try and get their payments cut in half.

“I just felt that if this is what they’re going to do and they can do this, we’re stupid not to do it,” said Dave Steffin.

But months later, the Steffins say 21st Century had cashed their checks, wouldn’t return their calls and didn’t even contact their lender.

“Do you feel like you were scammed?” Grover asked the Steffins.

“Yes, very much,” said Dave Steffin.

And those ex-employees interviewed by NBC say the customers they signed up kept calling them, saying things like, “You’ve taken my money,” “Nothing has been done to help my home,” and “Now I’m in foreclosure.”

Complaints like those caught the attention of the attorneys general in Ohio, Indiana, Arkansas and North Carolina. All four states banned 21st Century from doing business in their states.

But authorities say 21st Century Legal Services changed its name to Fidelity National Legal Services and continued signing up new clients.

Ex-employees say Fidelity was run out of the same office as 21st Century; was owned by the same woman, Andrea Ramirez; and even used the same ads to snare customers.

But the feds might finally be catching up with the owners of 21st Century and Fidelity. The FBI recently served search warrants on the home of Ramirez and searched the company’s offices. The FBI says the company is now under federal investigation. The company’s lawyer didn’t return our calls for comment.

NBC did this investigation with help from the non-profit investigative journalism organization Propublica.

California homeowners can get advice avoiding scammers at Attorney General Jerry Brown’s website.

Posted via web from josephcapote’s posterous

Filed under: Buyer's Blog, Seller's Blog, ,

October 1, 2009 • 10:42 am 1

Loan Modification Attorneys Under Investigation

In a recent newsletter courtesy of the California Association of Realtors, the California state bar has launched numerous investigations into the practices of a number of attorneys with regards to loan modification practices. The attorneys have taken fees for loan modification services, but have failed to perform any services to date. Worse, they have failed to communicate with their clients who face the possible loss of their homes.

Not all attorneys that offer loan modification services are unscrupulous. However, it is good to see that the C.A.R and the California state bar is taking this matter seriously. It also serves as a reminder to me (as it should to all Realtors) that we should be careful when dealing with and advising our clients regarding loan modification. Additionally, scam artists have been known to align themselves with attorneys to lend credence to their fraudulent schemes. The list of attorneys under investigation can be found HERE.

I recently published a post on the five steps to help avoid loan modification schemes. That post can be found HERE. The number one tip is NEVER pay upfront fees. Go figure.

For more information on this and other exciting topics, visit my site at http://www.JosephCapote.com.

Filed under: Seller's Blog, , ,

September 18, 2009 • 11:37 am 0

5 Tips to Avoid a Loan Modification Scam

There has been a lot of talk about loan modifications and loan mod scams in the news lately. Recently, law firms as well as credit specialists have jumped headfirst into the fray, working with (or possibly preying) on good people in bad situations. While loan modifications are possible and can help many borrowers make it through these tough times, here are five tips to help you avoid a possible loan modification scam.

1. DON’T pay up-front fees. Foreclosure consultants are prohibited by law from collecting money before services are performed.
2. DON’T ignore letters from your lender or loan servicer. Responding to those letters is your best bet for saving your house.
3. DON’T transfer title or sell your house to a “foreclosure rescuer.” Beware! This is a scam to convince homeowners they can stay in the home as renters and buy their home back later. It might also be part of a fraudulent bankruptcy filing. Either way, a scammer can then evict the victim and take the home.
4. DON’T pay your mortgage payments to anyone other than your lender or loan servicer. Mortgage consultants often keep the money for themselves.
5. NEVER sign any documents without reading them first. Many homeowners think that they are signing documents for a loan modification or for a new loan to pay off the mortgage they are behind on. Later, they discover that they actually transferred ownership of their home to someone who is now trying to evict them.

Courtesy of the State of California’s Attorney General, Department of Justice.

For more information, visit the Short Sales Center my website at http://www.JosephCapote.com.

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September 15, 2009 • 10:42 am 0

Take the Stress Out of Homebuying

When it comes to real estate, there is a lot to know and a lot to think about. It’s no wonder that buying or selling real estate can be an extremely stressful situation, for many reasons. Here are some tips to keep the stress level down, and keep the buying/selling process as comfortable as possible.

Buying a home should be fun, not stressful. As you look for your dream home, keep in mind these tips for making the process as peaceful as possible.

1. Find a real estate agent who you connect with. Home buying is not only a big financial commitment, but also an emotional one. It’s critical that the REALTOR® you chose is both highly skilled and a good fit with your personality.

2. Remember, there’s no “right” time to buy, just as there’s no perfect time to sell. If you find a home now, don’t try to second-guess interest rates or the housing market by waiting longer — you risk losing out on the home of your dreams. The housing market usually doesn’t change fast enough to make that much difference in price, and a good home won’t stay on the market long.

3. Don’t ask for too many opinions. It’s natural to want reassurance for such a big decision, but too many ideas from too many people will make it much harder to make a decision. Focus on the wants and needs of your immediate family — the people who will be living in the home.

4. Accept that no house is ever perfect. If it’s in the right location, the yard may be a bit smaller than you had hoped. The kitchen may be perfect, but the roof needs repair. Make a list of your top priorities and focus in on things that are most important to you. Let the minor ones go.

5. Don’t try to be a killer negotiator. Negotiation is definitely a part of the real estate process, but trying to “win” by getting an extra-low price or by refusing to budge on your offer may cost you the home you love. Negotiation is give and take.

6. Remember your home doesn’t exist in a vacuum. Don’t get so caught up in the physical aspects of the house itself — room size, kitchen, etc. — that you forget about important issues as noise level, location to amenities, and other aspects that also have a big impact on your quality of life.

7. Plan ahead. Don’t wait until you’ve found a home and made an offer to get approved for a mortgage, investigate home insurance, and consider a schedule for moving. Presenting an offer contingent on a lot of unresolved issues will make your bid much less attractive to sellers.

8. Factor in maintenance and repair costs in your post-home buying budget. Even if you buy a new home, there will be costs. Don’t leave yourself short and let your home deteriorate.

9. Accept that a little buyer’s remorse is inevitable and will probably pass. Buying a home, especially for the first time, is a big financial commitment. But it also yields big benefits. Don’t lose sight of why you wanted to buy a home and what made you fall in love with the property you purchased.

10. Choose a home first because you love it; then think about appreciation. While U.S. homes have appreciated an average of 5.4 percent annually over from 1998 to 2002, a home’s most important role is to serve as a comfortable, safe place to live.

Finally, my personal favorite, eat lots of M+M’s. These really do a lot to soothe any stress associated with buying or selling real estate. Chocolate or Peanut (or even Almond) is a personal decision, of course!

For more information, check out my website at http://www.JosephCapote.com.

Filed under: Buyer's Blog, Seller's Blog, , ,

September 5, 2009 • 10:04 pm 0

Benefits of Working with a Certified Short-Sale Professional (CSP)

Benefits of Working with a Certified Short-Sale Professional (CSP)

As a certified short-sale pro, I realize that short sales are a sensitive time for the parties involved. Sometimes folks may feel vulnerable and look for advice from any source. It’s been my experience that there are distinct benefits in working with a certified short-sale pro when listing your short-sale. I’d like to list them here for your convenience.

Short Sale Benefits for the Seller:

1. The CSP is well trained in the short sale transaction. The short sale is different from a regular real estate listing. Many agents take a short sale and learn “on the fly”. The short sale adheres to a very tight timeline, and agents learning on the job can make mistakes that can cost the seller the transaction. The CSP has been trained and is well versed in all aspects of the short sale process. Whether it’s writing an effective hardship letter, understanding foreclosure timelines, proper market pricing, and package documentation or closing the short sale, the CSP has been trained on all areas of the short sale process.

2. The CSP has developed relationships with the lenders. The CSP has been working with lenders, and can use that relationship to better negotiate the short sale. An inexperienced agent my not have that established relationship, nor understand the differences in lender requirements for a short sale.

3. The CSP understands the difference between a likely short sale and an unlikely short sale. Inexperienced agents will take the listing without realizing the likelihood of the success of the short sale. This can cost a seller time and money, possibly risking the success of the transaction. A CSP can be upfront with the seller regarding the chances of the sale, and be honest with the seller regarding the likelihood of the short sale’s overall success.

4. A CSP understands the necessary marketing tools and tricks to achieve a better rate of success while selling the short sale property. The short sale needs to be marketed differently than a traditional sale, and the CSP has been trained market this property for the best possible success. The inexperienced agent will often market the short sale as a traditional transaction, which can ultimately reduce the chances of the success of the short sale.

5. A CSP understands the requirements of successfully closing a short sale. There are many aspects of a short sale that differ from a traditional sale. The CSP understands that working with lenders, escrow, title, appraisers, buyers and other Realtors differs from a traditional sale. The CSP knows he/she must adjust strategies accordingly to account for the overall short sale process.

For more information, go to www.JosephCapote.com.

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