Thursday, April 12, 2012

Short Sales: They've Always Been Good, But Now Are They Getting Even Better?


For those looking to get a 20-30% discount on the purchase of a home, the short-sale market holds potential for some very good deals. Likewise, on a distressed property owner’s end, a short sale is a much better option than a foreclosure. Unfortunately, the price for some of those deals is mountains of paperwork, unresponsive banks, and an overall lengthy process. This may seem counterintuitive—shouldn’t banks be eager to sell these houses, rather than let them go into foreclosure, where they 1) often sit on the market for long periods, and 2) eventually sell for an even greater discount—i.e., banks get even less of the money they are owed? But I digress…

There may be some good news though. A new bill was introduced which would oblige mortgage companies to respond more quickly to inquiries about potential short sales.  The bill, aptly entitled, The Prompt Notification of Short Sale Act, would require mortgage companies to give a written response to home owners within 75 days about whether or not their home could potentially be sold as a short sale. This is also good news for potential buyers.

Currently, a short sale generally takes between four and nine months from start to finish. Because of the length of this process, it’s not uncommon for a home to be foreclosed on, even if a short sale is in progress. A shorter response time would potentially decrease the number of foreclosures.

Will the bill pass? Stay tuned…

Tuesday, April 3, 2012

Real Estate Season


Birds are singing, flowers are blooming, the sun has decided to make a more regular appearance…so what does that mean?

It’s real estate season!

Probably not what you were expecting me to say, but since we’re on the subject, let’s talk about it…


Relal esltate sealson [ree-uhl, reel ih-steyt see-zuhn]: adjective

1. A term used to refer to the time of year, primarily March through early August, when the greatest number of home purchases and sales occur. 




Now what we’ve established what real estate season is, let’s talk about what that means for you as a potential homebuyer or seller.

Buyers: First of all, as we enter real estate season, your choice of homes is likely to dramatically increase. The weather is getting nice, the school year is coming to a close, and you may have a tax return coming that could be a potentially used as a down payment.

According to Bankrate.com, the greatest number of home moves occur during the summer. As a potential homebuyer, this can be either an advantage or a disadvantage.  Due to the fact that there are so many more homes for sale during “real estate season,” your choices will drastically increase. This gives you a better chance of really finding a home you like. Unfortunately, there are also a lot of other potential homebuyers looking for homes as well, so if you find something you like, you may need to act quickly so you don’t miss out.

Sellers: For the same reasons mentioned above, real estate season is a great time to put your home on the market. Similarly, there are both potential advantages and disadvantages to selling a home during this time of year.  Due to an increased number of potential buyers, you may have more offers on your home, so you may be able to afford to be a little more picky about which offer you accept. But you also take the risk of being too picky, and not selling your home.

Do everything you can to put your home in “selling condition” (more on that later!) so that it stands out. Do a few things to increase your home’s curb appeal. Highlight the things about your home that would make it appealing to potential buyers. Does it have a great view? Make sure that’s not obstructed. Gourmet kitchen? Clean it up and really make it sparkle.  (“Freshly baked”—but not overpowering, smells don’t hurt either!) Swimming pool or Jacuzzi? Make sure they’re clean and at their best!


Regardless of whether you’re a potential homebuyer, or a potential home seller, know that this time of year holds some great opportunities. Take advantage of them!