Take These Steps Towards a Successful Short Sale

Lenders and the federal government, prompted by the sheer volume of loan modification and short sale requests, have overhauled their systems and programs, making the foreclosure avoidance process much easier than in the past. If you haven't considered this option before, maybe now is the time to find out more.

If you are considering short selling your home to avoid the financial and emotional fallout of foreclosure, you should be aware of the five steps you should take to increase your chances of a successful transaction.

First, do you qualify?

You must:

1. Have a verifiable hardship, like unemployment, medical bills, or relocation

2. Must have a monthly income shortfall

3. Be insolvent (you have no cash or assets that can be sold to pay down the mortgage), or headed towards insolvency



If you meet these qualifications, follow these five steps to a successful short sale:

1. Contact me so we can identify your servicer, fill out a short sale packet for the lender, and assemble all the required information needed to list your home for sale

2. Gather financial information (i.e., bank statements, pay stubs) from at least the last three months

3. Keep your house in showcase condition for showings, and make as many repairs as necessary and that you can afford

4. Expect the lender, junior lien holders, and private insurance companies to request more paperwork, and try to gather requested information quickly to ensure transaction efficiency

5. Set realistic expectations and work with me, the lender, and the buyer to the satisfaction and benefit of all parties involved


For more information about how the short sale process works, or about any other foreclosure alternatives you may qualify for, call me today. I can help you alleviate the burden that the threat of foreclosure brings, and we can develop a strategy to help you breathe a little easier.

Seller, Please Take Yourself Out of the Picture

At Awkward Family Photos there's one thing you can see a lot of--the kind of kids pictures and engagement photos you really don't want showing on your walls when your property is on the market. I don't know what the people at the left were thinking of, and the photo at the right was showing off the kids modeling Dad's cabinetry with a much-loved family pet.

I know what you're thinking: That you don't have anything as crazy as these photos on your walls because your photos show much better taste. After all, they were taken by an expensive portrait photographer showing the close family gathered in formal attire in a classic setting as a beautiful holiday memoir--nothing goofy about that. Why wouldn't you want to proudly show off your family for buyers coming through your home?

Well, in a nutshell, photos in your home may represent you and your family members in a very personal way, and buyers read clues about you and possibly make opinions which may not help sell your home. Even if they do identify, or sympathize, with the Star Trek outfits because they have the same picture on their bookcase, is this the focus of their seeing your home? Because personal objects are usually a distraction to the buyer, a detour into personal aspects of the seller's live(s)that is best avoided if you want an offer soon. You want to present your property, not you and your family, to get it sold as quickly as possible for the best price. You are now selling a product, as cold as that may sound, into which the buyers are trying to see their pictures, furniture, etc. So, sellers, so after seeing the photos voluntarily submitted by those who are having a good laugh at themselves, http://www.awkwardfamilyphotos.com/ , then go around your home and take yourselves out of it as much as possible, so that someone else can put themselves into it. Oh yes, thanks for California Association of Realtors for leading me to this entertaining site. I might submit a photo or two myself.

Home Buyer's Fair, a Southern California Consumer Opportunity!

This weekend is the time to use your free time for your future advantage! Attend the free 3rd Annual Homebuyer Fair this weekend, March 13th and 14th at the Los Angeles Convention Center, sponsored by the Los Angeles Times and the CALIFORNIA ASSOCIATION OF REALTORS®. With more than 50 educational seminars and 65 booths, there will be many many opportunities to learn about navigating the home purchase process and the market.

This is for all buyers--first timers and investors alike, as well as homeowners, so the attendee will find information on home insurance, buying foreclosures and short sales, how to plan for your first purchase, finding a Realtor and finding a mortgage lender, how to negotiate your loan modification, and tax credits. Many seminars are also presented in Spanish.

See seminars at http://www.homebuyersfair.com/seminars and general information, including parking ($12) at http://www.homebuyersfair.com.

See exhibitors at http://www.homebuyersfair.com/exhibitors
Find me at Pacific West Association of Realtors Saturday afternoon after 2 pm!

How To Avoid the 10 Most Common Mistakes Sellers Make

If you are thinking of selling, you should keep these things in mind. They are not new, but sellers often overlook things they think are not important, when nothing could be further from the truth!

Top 10 Ways Sellers Can Guarantee Their Home Won't Sell

Paul Pastore’s Top 10 Ways Sellers Can Guarantee Their Home Won’t Sell:

"1. Be casual, not serious, about selling. A sage once quipped, “Money is only important when you don’t want something enough.” Actions speak louder than words in this market. Discretionary sellers should wait for a less competitive environment.

"2. Price it wrong. A home properly priced is half sold. No amount of full-color ads, glossy fliers, multiple photos, virtual tours, agent luncheons, Goodyear blimps, pom-pom girls or Saint Joseph statues will compensate for a wrong, timid retail price.

"3. Ignore your agent. Attorneys believe if you represent yourself, you have a fool for a client. Doctors don’t self-diagnose. Professionals use professionals. Even though many people believe they’re experts on raising kids and real estate, full-time, career pros usually know what’s best. Listen to them very carefully.

"4. Micromanage the marketing. If you sold cookware in college, carts in California, or carpeting in Cranston, it does not qualify you to second-guess your agent. If you had a real estate license years ago, save your stories about the “good old days” for your children. You can share your concerns and timelines, but leave the details to the listing pro.

"5. Reject staging suggestions. Someday shag multi-colored, sculptured carpeting will come back. Whitewashed cabinets, Navajo white walls, linoleum flooring, southwest decor, lots of personal photos, and Elvis paintings on black velvet need to go. Now.

"6. Let Fido loose. I recently entered a house and had two frisky, friendly black Labs run up to sniff me. Unfortunately, I had light-gray dress slacks on that day. Both wet stains lasted for hours. Until that day I didn’t realize dogs enjoyed chewing the tassels on expensive loafers.

"7. Talk to the buyers. Life gets lonely at times. Why not ask the buyers where they grew up? Or how much they qualify for. Tell them about the vacant rental next door. Maybe they could baby-sit next weekend! Why not share war stories, horror movies or meatloaf recipes?

"8. Sell personal items. Wow, maybe the buyers want to buy the patio furniture, rotary lawnmower, or life-size statue of Saint Anthony. You have only four more boxes of Girl Scout cookies to sell. Why not ask for a donation for the March of Dimes, the Humane Society, the local PBS station? Remember the saying, “loose lips sink ships.”

"9. Discount that smell. My house doesn’t smell of pets, baby diapers, curry powder, garlic, fried fish, coconut incense, cigars, manure, mulch, dairy farms or low tide. The buyer must be confusing my castle with a tract home.

"10. Dismiss feedback. What do buyers know anyway? They can’t possibly mind my barbed wire fence, heavy-duty rebar, backyard bomb shelter, airport runway views, lights from the power plant, hum from the high-voltage lines, railroad tremors, scorpion skeletons, termite mud tubes and pet snakes. What are they thinking?"

Copyright © 2008 RE/MAX International Inc. 2/4/08
long beach real estate 'Voice this!

The Things That Help a Listing Sell

In a market where the inventory is over 6 months in many areas, buyers have a lot more homes to view before deciding to make an offer to the seller. Sellers have much more competition. Buyers have more time to compare. In any market, however, it's always wiser for sellers to prepare their home for sale, and here are some photos of a refurbished house waiting for a buyer.

Not everyone can or will pay a professional stager to set up their home, however, just getting the basics will take a seller a long way:

An uncluttered home that is clean, enough furniture to create the scale of the room or rooms, and the right size furniture so the room does not feel crowded; enough personal possessions so the buyer can identify with the space, yet not too many personal items such as a large number of family photographs that will snag or distract the buyer's attention away from the focus of viewing the house as their potential home; soft or neutral colors that create a background for the buyer to imagine himself living there with his furniture; shiny hardwood floors or a cleaned carpet; clean bathrooms and kitchens with shining counters; a coat of paint and well done repairs. Outdoors, fresh flowers and a raked and watered lawn or other landscaping creates "curb appeal" when the buyer arrives for the showing.

The home in this example is a 2 bedroom, 2 bath single family house listed for $869,000 and has been completely refurbished by the owners/listing brokers Laura and Richard Martin of Laurich Realty.

Long Beach long beach real estate 'Voice this!

Know Your Rights if You Are in Pre-Foreclosure

It's an unfortunate fact that certain loan borrowers have been unable to make their payments. On this blog there are many searches about information on foreclosure and pre-foreclosure.

If you're in this situation, please see my earlier post What Happens If You Are In Foreclosure?.

It's important for you to know that certain California statutes regulate the sale of homes on which a Notice of Default has been filed, that if you list your home with a California agent you should make sure your agent is aware of using the Home Equity Sales Contract form when a buyer presents an offer. This form specifically addresses particular issues as required by the California Civil Code Sections 1695-1695.17 which are designed to protect the seller from fraud and deception by unscrupulous buyers. Among other things, a sales contract under these circumstances would include the following language to prevent you from signing over the rights to your home under undue pressure:

"NOTICE REQUIRED BY CALIFORNIA LAW Until your right to cancel this contract has ended, _______ or anyone working for _______ (Name) (Name) CANNOT ask you to sign or have you sign any deed or any other document."

Read the Code sections linked above (they're not that difficult to go through) because they carefully spell out what the equity purchaser (your buyer) must do if you already have a Notice of Default filed on your property. An equity purchaser convicted of fraud under these laws is subject to damages and other penalties including jail time, and the seller has certain rights to bring action. If you are in doubt about someone you are dealing with, or have questions before you list your home, please take the time to get a second opinion from a qualified REALTOR, or seek advice from an attorney who specializes in real estate law and foreclosures.

October 12, 2007 addition from October CLTA News concerning rescission of a sale of a pre-foreclosure property:

"REMINDER --- DISTRESS SALES ARE HIGHLY REGULATED

"Homeowners facing foreclosure and buyers wanting a deal would seem a perfect match. But these matches face obstacles that both buyers and sellers may not fully understand. This is because the California Legislature stepped in a few years ago to crack down on fraud and created a whole new set of laws dealing with the sale of property in foreclosure. The law provides far-reaching protection to homeowners facing foreclosure. Once a notice of default is filed the law applies and sellers have specific legal protections, including the right to cancel a contract to sell up to five business days after signing a contract to sell the property. Not only can a seller cancel the contract before the sale but under certain circumstances the owner may rescind the sale within two years if a court finds the sale unconscionable. In addition, a court may award the seller damages and the purchaser could be criminally prosecuted.

"A representative of the seller is also treated harshly if they do not comply with the law. These representatives must have a valid real estate sales license and a bond. [MY NOTE: USING THE REALTOR'S HOME EQUITY CONTRACT FORM CORRECTLY ADDRESSES THE BOND ISSUE.] Both the purchaser and seller must be given a statement by the representative that they have the license and bond. Failure to comply means the seller may choose to treat the sales contract as void and can seek damages. There is some relief from all of these pitfalls. If a purchaser is going to use the property as their personal residence or the purchaser is the spouse or blood relative of the homeowner then the law does not apply. The bottom line in all of this is that both buyers and sellers and their agents should be aware of the law. With all of the attention devoted to sub-prime mortgages and foreclosures it is likely that the failure to strictly comply with the law will lead to serious title problems."

Long Beach long beach real estate

Counteroffers: What To Do

It's not unusual, whether you're a buyer or a seller, to start feeling that the other side is being totally unreasonable, or that the price is too low from a buyer or the seller is asking way beyond a reasonable asking price.

Sometimes, buyers may get upset and refuse to make a second counteroffer back to the seller because they feel the seller just won't listen, especially if it concerns the price. It's important to keep negotiating at that point. Getting upset will only get in the way. Each party may have what they feel are totally valid reasons for their position, and if you can find out what those are (and this is where your Realtor works for you), at least you have an understanding of the other side even if you're ultimately not going to agree with them. Once the emotional level has dropped, it's easier to make a rational decision that you won't regret later if you do end up rejecting the deal.

If you feel you're backing down on an important issue, then don't. Explain why this is important to you so that it can be communicated to the other party. Possibly the other side will walk away at that point, but that possibility also exists during the contingency periods during escrow.

It's important that you know why you think as you do--it can make the difference between selling/buying the property or not.

Long Beach

Internet Home Searches

Trulia.com's March 2007 report about consumer online search behavior can sometimes be more about curiosity than serious looking:

According to Trulia's search data, consumers continue to search online for both "dream" and "deal" homes. Of the top 10 most viewed homes on Trulia.com, the most popular was a three-bedroom home in Rockingham, North Carolina listed at $18,590. Also on the list was a 15,000-square-foot Beverly Hills mansion listed at $24,950,000 - more than 1,300 times the price of the Rockingham home.

However, sellers should take note that industry data does substantiate that about 70% of homebuyers do start their search online, compared to about 10% just a few years ago. So that means the better presentation given on the the web whether through the online real estate multiple listing service or other listing services, the more you might find an actual buyer for your property. Not only does this reach a wider audience than print advertising, it also affords the prospective buyer a look around the property through multiple photos, but also the opportunity for instant mobility by e-mailing the listing to virtually anywhere.

Transferring Your Property Taxes, California Prop. 90

There seem to be many inquiries about property taxes in California, so I hope you find this informative.

California voters approved Proposition 13 in the 1970's. Ordinarily, when the ownership of California real property changes, the property is reassessed at its current fair market value and the new owner pays property tax based on the reassessed value. However, the law provides certain exemptions from reassessment and, in certain instances, allows a taxpayer to transfer the base-year value of the property to a subsequent property without being reassessed. As a result of Proposition 13, a taxpayer's base-year value could be much lower than if based on the fair market value of the property. (Note: California tax code sections are Revenue and Taxation Code Sections 63.1 (dealing with transfers between parents and children, as well as grandparents and grandchildren), 62 (dealing with transfers into revocable trusts), 63 (dealing with interspousal transfers), 69.5 (dealing with transfers by persons over 55 years of age or severely and permanently disabled persons).)

Property which has had major renovations is normally subject to property tax reassessment. However, California law exempts certain property improvements from reassessment. Revenue and Taxation Code Sections 74.3 and 74.6 (dealing with improvements for disabled access), and 74.5 (dealing with seismic retrofitting improvements). Consult your tax advisor for advice.

Proposition 90.

Ordinarily under Proposition 13, the value of a home for property tax purposes is re-assessed to market level whenever a change in ownership takes place, which usually results in higher property taxes for the homebuyer.

In November 1988, the state's voters approved Proposition 90, which is designed to induce greater turnover of homes owned by senior citizens. The measure provides anyone over the age of 55 with relief from Proposition 13 by allowing them to move from one county to another without undergoing a change in their basic property taxes. (Note: there are currently a minority of counties that allow this transfer, Los Angeles and Orange Counties being two of them.)

Proposition 90 is a "local-option" law; each county has the option of participating. If a county has adopted a Proposition 90 ordinance, it accepts transfers of property tax base assessments from other California counties. If the county that the homeowner is moving from does not have a Proposition 90 ordinance, this does not affect the eligibility of the homeowner. Homeowners seeking to transfer their property tax base assessment must verify that the county to which they are moving has a Proposition 90 ordinance. Go to this list of California Counties to find information from your county tax assessor.

Proposition 60

Proposition 60 is a similar law passed by the state's voters two years prior to Proposition 90. It allows seniors to keep their property tax base assessment when they move within the same county. Proposition 60 does not require passage by a local municipality. It is state law.

Courtesy of Pacific West Association of Realtors

Baby Boomers, CA

California Property Tax Rates

I just found that someone was doing a search term for rates in Southern California. Actually, California has the same basic tax rate throughout the state. What varies are local taxes due to bonded indebtedness and other county or district taxes.

The basic property tax rate is estimated by multiplying the sales price by 1.25%. This is a the base rate of a tiered formula which does increase incrementally with time. When buyers are in escrow in California, the seller is required to provide a tax report to the buyer before the close so that the buyer can see all taxes due, whether or not certain ones are levied that year. That way, there are no unexpected surprises and the buyer is supposed to have full information. These reports are ordered through an outside source company paid to search all public records for the appropriate information in order to provide full disclosure on all taxes to the buyer.
See more California tax benefit information.

property taxes, CA

What Happens If You Are In Foreclosure?

Recently, California has experienced an increase in property owners who cannot seem to make payments. If you are one of those people who has received a Notice of Default from your lender, please read this.

You still have time to find solutions and avoid losing your property. Maybe your property isn't a mansion, but to you, it is. You should consult with your attorney for complete information on the foreclosure process, and your accountant for tax advice.

A non-judicial foreclosure under California Civil Code section 2924 allows lenders to foreclose upon real property without going to court. It takes approximately four months from start to finish. Once the sale auction is completed, it is final, but an IRS tax lien can cause a delay in the finality of the sale. The borrower must then vacate.

1. Your trust deed functions as the lender's security device for its loan. Lenders may hire a new trustee to replace the trustee named in the trust deed and then instruct the new trustee to issue a Notice of Default, and "NOD", in which you, the borrower, are warned to act or face the consequences. The NOD is recorded at the County recorder's office, and sends copies to the borrower and to any party who requested a Notice of Default form, to holders of junior trust deeds, to the borrower's successor in interest, and anyone else legally entitled, no later than one month following the recordation of the NOD.

2. You have the right to reinstate the loan by tendering to the lender or trustee your delinquent loan payments, plus the trustee's fees and costs. Upon receipt of that payment, the trustee is obligated to rescind the NOD, and the loan is reinstated to normal status, as long as it is reinstated until five business days before the scheduled foreclosure sale. Otherwise, the lender is not required to stop the sale, and the lender may demand the borrower pay-in-full the total outstanding principal balance and accrued interest on the loan, plus trustee's fees, right up until the moment before the sale is completed.

3. If three months pass following recordation and the borrower does not reinstate the loan, the trustee is instructed by the lender to set a time, date and place for the sale, usually three to four weeks from that time, hence, the total time of about four months.

4. The borrower will receive a Notice of Trustee's Sale, along with other entitled parties. The NOS must be mailed, posted in a public place, published in a newspaper of general circulation in your property city--all 20 days before the sale date-- and recorded at the County recorder at least 14 days prior to the sale date.

5. At the appointed time, the trustee conducts the sale at public auction.

You may have time to refinance (there are hard money lenders who will loan even though an NOD has been recorded) and even if at a higher rate, that is better than losing your home. When your situation has improved, you may be able to obtain a better loan. You may also contact your lender for arranging a "short sale". Lenders don't really want to take back properties, and are often willing to make an arrangement with the borrower who might otherwise be able to sell the property rather than going into foreclosure.

Above all, you should not ignore your situation, as difficult as it is at the time.

Please know that this is one of my most frequently read posts. Many people are facing this issue. If that could be you, or it is you, please know that (1) you may be able to refinance your way out of your situation, (2) you may be able to negotiate a short sale with your bank. If you need immediate loan qualification, or are considering negotiating a short sale, PLEASE CALL ME.
If you would like a market analysis of your property to try to sell it, please call me at 562-896-2609 or e-mail me ocean@surfside.net immediately.


Long Beach, CA, Foreclosure

If More Information About Teeth Became Publicly Available, Would You Fire Your Dentist?

Something that a lot of internet users have a misconception about is that property listings that are available for public viewing on the internet are not in the public record, as some people actually have told me they believe, i.e., they won't be found at the court house as a recorded property deed is. Furthermore, they don't seem to realize that sellers have a choice as to whether or not to put their listing into internet sites or just keep it within the local MLS of their agent, as advantageous as wider internet exposure may be for them.

The proliferance of sites that supply listings, i.e., Trulia and Zillow, just to mention two out of what are probably hundreds if not thousands, are not necessarily a complete databsse of REALTOR-listed properties through an MLS system. Again, they can be a viable source of information for everyone, but they depend on property tax records, which ARE public records and therefore available to anyone, and manual entry of listings by owners or agents. MLS's cooperate with various sites to allow their listings to be shown on other internet sites, and brokers may have an opt-out capacity. Why? Because a listing agreement belongs to the listing broker and is a contract between a seller and his/her listing broker/agent, not a public document to be found in the public record. That is what is behind every REALTOR's representation of a property. With the spectacular rise in real estate values and internet use came many others who wished to be a part of the REALTORs' business of representing their clients like never before. This leads into the current debate going on about MLS's and control of them, as housing values and sales are currently a huge factor, if not a driving force, of the economy.

In the United States, but not necessarily in all other countries, we no longer live in a world where showing a property means driving over to a listing broker's office to get their list of properties, and then driving on to another broker's office to get theirs. That's why the multiple listing services came about as far back as the 1930's--before an internet was even conceived of by the average person. The merging of MLS's, even if there is one national MLS, will still not eliminate the need for professional assistance in viewing, buying and selling homes. Or I may as well start drilling my own teeth and fire my dentist.

Long Beach, MLS

It used to be we had the book, and they had to come to us for information.”

That quote from Rob Levy, a real estate broker in Portland, Oregon refers to the MLS book, an artifact from ancient past history as long ago as the late '90's, a piece of history that by now is probably little known to younger prospective buyers entering the market for the first time who are used to quick access to information. That was back when a trusted Realtor was considered the major source of information about homebuying and selling. Fast forward now to a time when real estate information is everywhere in print and on the internet, it's so much everywhere from so many sources, that choosing the right information from the right source takes labor, time and a lot of self-education for the buyer. It's becoming important to know where to look.

Like the buyers in the article, "Buyers Who Go It Alone" by Buck Wargo, REALTOR® Magazine Online, they may think it's easy because maybe their first transaction was smooth. But different real estate cyles have a tendency to change situations, plus new laws in real estate impose additional requirements and disclosures, which may leave both buyers and sellers in quandry in the middle of a transaction if they decided to leave a qualified REALTOR® out of the mix.

Internet tools, such as MLS searches on REALTOR® websites and other online media article, are great resources not available in the past, and a non-pressured way of looking. But I'm also finding in this market that there are those who have done very little prior research and would rather come into the open house and talk personally with a Realtor, and I'm wondering if there isn't so much universal information to be sifted through, that despite media publications to the contrary, most prospective buyers and sellers want "local, up close and live" talk from a professional whose business it is to provide specialized expertise and knowledge accumulated from experience and competence.

Long Beach, CA, open house, homebuyer

What Is The Current Time On Market

What’s the time on the market. A quick check in our local MLS for houses in 90803 (Long Beach near the coastline and adjacent neighborhoods) shows 117 single family residences at an average active list price of $1,444,122, with 25 in escrow: That means about 4.68 months inventory on the market for houses. Some people don’t think this shows an extraordinary supply vs. demand, although it certainly provides a much better opportunity for buyers to see what’s on the market and having some time to think it over before making an offer. With 76 condos (not including lofts or own-your-owns), on the other hand, at an average price of over $581,000, there is almost a 7 month supply in the same area. Still a great buy for buyers to be near the ocean in an area where a house would be unaffordable for them. Search properties at http://www.juliahuntsman.com.

Some Housing Update: Not All Pessimism

With the housing inventory on the market, it's not a time when buyers have to turn to FSBO's to find just the right house, contrary to the photo in the New York Times article. Buyers and sellers continue in a standoff while sellers are having to adjust to not being in total control as they have for the past few years. Though prices are basically holding, sales volume has decreased in most local zip codes, down by over 26% in 90803 compared to this time last year. Mortgage rates are still lower, while it may take the rest of the year to move the rest of this current inventory. This is definitely a good time for buyers, as they can now take adequate time to select their next home. See www.juliahuntsman.com for search for Long Beach and Orange County properties.

The Return to a Normal Market?

This Los Angeles Times article (July 23, 2006) may not stay available online much longer, but it's a good discussion of the current Southern California market picture. People afraid of a return to the '90's recession may be worrying unnecessarily. As has been stated often, the market fundamentals today are vastly different than those of the '90s, says John Karevoll of Dataquick Information Systems. He, and many other economic sources including California Association of Realtors, still predict an overall appreciation in the median home price of 6% or more, in the Southland and statewide. While one simply cannot know all the future events, Karevoll is willing to be quoted saying in a worst-case scenario, homeowners should not lose more than 7% of their homes' value. So the current standoff between buyers and sellers, with buyers waiting for a huge drop in prices, is not supported, not in this article anyway. Areas with overbuilding in condos have seen a drop, but that does not mean all condo prices in all areas are losing. Some sales figures, or lack thereof, reflect a dropoff in activity after a long held back huge demand has been met, and then overmet. The frenetic activity from selling a home in a week or two has definitely slowed, but many younger buyers see that as a "drop in the market" because they never experienced anything else, or what the historical "norm" has been of 30-90 days on the market.

Cooling Home Market Spurs Interest in Foreclosure Sales

With a slowing in the market, perhaps a stabilizing in the real estate market, foreclosures seem to have a little more allure. But there are things to know: websites listing foreclosures may be out of date, or may list properties that haven't yet met all the legal requirements for sale. In other words, approach foreclosure properties and foreclosure websites with care. Just because it's listed on a website doesn't mean the property will actually sell; and if a buyer does purchase at auction there are significant risks involved. The thought that a foreclosure property can be bought below market doesn't work out that way, because if a bank finally takes it back after completing the foreclosure process, those properties are usually listed at market. Why would the bank sell for less? Read the Wall Street Journal article for their complete story on investigating this sector of real estate sales.

What's a Seller To Do?

In a market where inventory is building up and sellers are waiting a little longer for an offer, it's time for sellers to think once again about the best improvements to make--and not to make--to get their homes sold. Pools, for the post-baby boomer generation, may not be the right improvement--geographic demand, location, lot size, and maintenance should all be considered. According to the National Association of Realtors, house siding, and kitchen and bathroom upgrades are among the top four best improvements for bringing the best return. Surprisingly, a home office did not bring as high a return on the investment. Regular maintenance is very important, as buyers will move more quickly on a home that does not have deferred issues. In a somewhat slower moving market, a return to standard preparation for home selling will obtain a better offer and a more satisfied buyer.

What About the CLUE report?

This article is another reminder to be careful about claims on your homeowner insurance. All buyers and sellers should be aware that a previous owner's, not just the current owner's, claims may affect the current buyer's ability to get certain insurance coverage on their new home purchase. The Comprehensive Loss Underwriting Exchange is the insurance industry's database about claims history, especially related to water and mold problems. This article should emphasize the point of vigilance about home maintenance issues to prevent the unexpected as much as possible.