Please Make The Industry Joke No Longer A Reality

Leave it to the National Association of Realtors to initiate a much needed change to the short sale process!

As anybody who has dealt with one knows, short sales should be renamed "long sales." But that could be changing. The chair of NAR's Conventional Finance and Lending Committee already has met with 10 mortgage bankers and servicers in Florida to address the problem.

Read the full story: http://www.floridarealtors.org/NewsAndEvents/n2-051109.cfm

Florida Votes Against New Septic Tank Rules

A septic tank rule opposed by FAR was voted down yesterday by a state advisory panel. The proposed rule covers the Wekiva River area of Central Florida, but it's also a possible blueprint for new septic system rules throughout the state. If enacted as written, one area of concern to Realtors is timing: It would mandate a septic system inspection as part of every home sale; and since most septic systems would fail the seepage test, they'd have to be replaced. While the advisory panel's decision carries some weight and is applauded by FAR, the vote is not binding. The Florida Department of Health will make a final decision later.

© 2009 FLORIDA ASSOCIATION OF REALTORS®

Possible Septic Sorrows

A move by the Florida Department of Health to limit nitrogen seepage through septic systems could force some homeowners to install new and expensive septic systems. However, questions remain, and one component worries Realtors: It calls for a septic inspection at the time of a home sale and a likely septic tank replacement. The Department will hold a meeting on Feb. 19 in Orlando, and the public may attend and comment.

Read the full story:
http://www.floridarealtors.org/NewsAndEvents/n2-021609.cfm.

Non-Vacant Vacant Homes

Some real estate pros encourage sellers of vacant properties to move house sitters in to ensure security and keep the home ready for showings. In Spokane, Wash., Diana and Kevin Uphus of Select Real Estate launched Diana's Home Sitting Services in 2000 to locate house sitters for clients. House sitters pay $400 per month to live in the home, and they also cover the utility bills.

When choosing a house sitter, the Uphuses perform background checks on candidates - whom must be able to leave at a moment's notice for showings, carry $100,000 in personal liability coverage, perform simple maintenance and keep the home clean. They also ensure the sitter's furniture is in good shape and complements the home's decor.

Source:Realtor (01/09) Vol. 42, No. 1, P. 18; Tracey, Melissa Dittmann© Copyright 2009 INFORMATION, INC. Bethesda, MD (301) 215-4688

Soon To Come... More Honest Appraisals

On Jan. 9, Fannie Mae and Freddie Mac announced revisions to their Home Valuation Code of Conduct. Starting on May 1, lenders that want to sell their loans to the two industry behemoths must follow new guidelines. Mortgage brokers and Realtors, for example, will not be allowed to choose appraisers.

Read the full story: http://www.floridarealtors.org/NewsAndEvents/n1-011909.cfm

RE-RE-REPOSITION

Most home sellers find that they cannot sell their properties for as much as they want, and real estate agents increasingly reposition the listings. "When a seller puts their home on the market on day one, they very well could be the best priced home in the best condition," says Tricia McEneaney of Coldwell Banker in Chicago. But if over the next 30 days,10 more competitively priced homes come on the market, then the seller's home may no longer be in a position to sell." Depending on the owner's motivation and price movement in their market, agents might discuss the latest market data with sellers every couple of weeks, or every 60 to 90 days.

Once the most up-to-date data is in hand, sellers and agents can decide whether to lower the asking price, provide incentives, undertake home upgrades, or hold off selling until the market improves. Agents often lower the price slowly over time so that the property shows up on hot sheets; and they might want to consider updating marketing materials with more information or better photos.


Source: Chicago Sun-Times (01/16/09) Smith, Daniel P.© Copyright 2009 INFORMATION, INC. Bethesda, MD (301) 215-4688

10 Tips for Generating Buyer Interest

Distraught sellers who need to generate more interest in house that has been languishing on the market for months should consider 10 steps from MSNBC financial guru Laura T. Coffey.

1. Can the clutter. Pack up knickknacks, pictures, piles of paper and furniture that makes the place look crowded.


2. Let the light in. Take down any heavy drapes.


3. Scrub-a-dub-dub. Shampoo soiled carpets, Scrub the front door. Repaint scuffed walls. Tidy up the lawn and trim the shrubs.


4. Get moving on the "honey do" list. Fix everything that is in need of repair.


5. Enhance the view. Erect a fence or plant shrubbery to improve or obscure the view of unattractive nearby properties or streets.


6. Try weeknights. Holding an open house on Wednesday may attract a different crowd.


7. Ask for criticism. Consult with buyers’ agents for their feedback.


8. Send the owners away. Ask them to vacate when potential buyers come around so they can talk freely.


9. Rent to own. Give a potential buyer a little credit. Becoming a landlord may keep you from having to shoulder two mortgages.


10. Drop the asking price. And figure out the lowest amount you're willing or able to accept.

Source: MSN Money, Laura T. Coffey (01/06/2009)

Biggest Buck For You Bang

For the second year in a row, Realtors report that exterior remodeling projects return the most money as a percentage of cost, as detailed in the 2008 Remodeling Cost vs. Value Report.

Read the full story: http://www.floridarealtors.org/NewsAndEvents/n2-120308.cfm

Countrywide Short Sale Basics & Details

I just received this info from Pam Voorhees, an awesome Countrywide home loan consultant. It's super informative for anyone involved or thinking of getting involved in a short sale regardless of the bank holding the mortgage note(s).

One out of every four homeowners has a Countrywide Home Loan. With the growing number of short sale requests, we have established a support team to handle inquiries and status calls from borrowers or their agents.

Short Sale Process Example

Customer and/or authorized real estate agent contacts Short Sale Support Team at 1-866-880-1232 to request information on the process and documents needed for the short sale program.

• The customer and/or agent faxes signed purchase contract, listing agreement and Preliminary HUD-1 to dedicated short sale fax at 1-888-491-4947.
• The Short Sale Support Team contacts the customer and/or agent within 48 hours of receiving the fax.
• An appraisal is also ordered within 48 hours of receiving the faxed offer.
• The appraisal vendor contacts the customer and/or the agent to schedule the appraisal within five days of the offer.

Each potential short sale is reviewed on a case-by-case basis. Customers with accounts whose payments are completely up-to-date and current will not be considered unless there is an imminent default or hardship. Additional borrower information may be required, including:

• An explanation of hardship
• A copy of the most recent month's income verification or last three months of profit and loss statements, if self-employed.
• A copy of the most recent month's bank statement.
• A copy of the most recent year's income tax return.

The decisioning time varies based on the ability to obtain access to the property for an appraisal and on the financial situation of a particular customer.

The Short Sale Decisioning and Timeframe

A typical short sale decision can take 30-60 days from the date the offer is received. Several factors contribute to this timeframe:

• Day 1: Receive a legitimate offer (This includes the listing agreement, copy of MLS, preliminary HUD-1, hardship letter and a signed purchase contract).
• Day 2-15: Order appraisal (Timeframe to obtain the appraisal is approximately 10 days).
• Day 15-25: Analyze (Obtain necessary financial documentation from the borrower to determine hardship and ability to contribute to the loss, dependent upon input from the borrower).
• Day 25-30: Negotiate delegated decisions (Be advised that non-delegated decisions will take an additional 30-60 days. Many investors such as Fannie or Freddie and insurers such as FHA, VA, or Mortgage Insurance companies, do not delegate the short sale decision and require their explicit approval. If there are any subordinate liens, then there must be a negotiation with them to accept a reduced payoff amount to release their lien).
• Day 30-35: Approve or decline.
• Day 35-80: Receive successful approval of the offer and close.

All timelines noted herein may vary based on the volume of short sale activity, thoroughness of packages and the particulars of the specific transactions. They are meant to be utilized as guidelines and as a means to set appropriate and approximate expectations.

Countrywide's analysis of a potential short sale will include the owner's ability to participate in the loss, the purchase price, the current value of the home obtained by Countrywide and the short sale loss as compared to foreclosure/REO loss.

For more information, call or email me or Pam (941) 586-8079 Pam_Voorhees@Countrywide.com.

New Rules For Pricing A Home

How do you price a home in this market? Pat Hiban of the Pat Hiban Real Estate Group in Ellicott City, Md., says comparables are irrelevant these days. “You want to price it less than the active competition,” he advises. He dismisses the notion that someone who is less eager to sell a home quickly can set the price a little higher. In this market, the lower price is “realistic,” Hiban says.

He suggests looking at the three most competitive active listings that the seller will be up against. If there are no real differences between those houses and your seller’s home, undercut the competition on price. If the house you’re trying to sell has something that the competition doesn’t — say a finished basement — then go with the same price.

Source: The Baltimore Sun, Jamie Smith Hopkins (12/14/07)

8 Tips For Sellers In A Buyer's Market

It’s a buyer’s market, but sellers can increase the chance of a sale in today’s climate by working with a Realtor and considering these eight things.

1. Don’t count on open houses to sell your home. According to the California Association of Realtors, less than 5 percent of buyers find their home at an open house. An open house should never be the center of a prospective real estate agent’s marketing plan.
2. Target your marketing. Know what buyers in your area look for and emphasize your home’s appeal accordingly. This includes everything from the description (whether you highlight transportation and parks, or restaurants and nightlife) and how you stage the home (whether the third bedroom becomes an office), to where you advertise the listing (a newspaper in addition to online).
3. Tour similar homes in the area to better understand the competition – what a home sold for 12 months ago, or even six months ago, may not be a good estimate for today.
4. Consider staging your home. Although not always necessary, staging can make a difference in how your house is viewed and compared to others.
5. Offer prospective buyers a neighbor “reference” list. Make a list of your best, most reliable neighbors, so that buyers can reach out to get a better feel for the area, the locals, and what makes the neighborhood a truly unique place to live.
6. Photos posted online should be taken on a sunny day with a wide-angle lens. Approximately one-third of buyers who responded to a recent survey said they would eliminate homes they saw online if they had too few or poor quality photos.
7. Consider a pre-inspection to give you a selling edge. Include information about any repair work you’ve completed since you bought the home. If you don’t market your improvements, you won’t get as much return for them.
8. Once your house is on the market, accept feedback and tweak as necessary.

ORLANDO, Fla. – July 1, 2008 © 2008 FLORIDA ASSOCIATION OF REALTORS®