Archive for April, 2008
Over the last month my buyers have seen the rejection stamp from more than one seller. In fact it seems they are collecting them in larger numbers than they did in 2003. Of course then it was because the offer didn’t escalate enough to be the highest bidder. Now the rejection stamp is coming because the offers are deemed to be to low to be a fair price for the property.
Last July when the market showed that it was going to slide downward and the first indications of lowering values really became apparent I penned a post entitled “You Want to Offer me What?” At the time it seemed like good advice to sellers who had their homes listed at “above market” values. Today the advice is just as valid and perhaps with added twists that weren’t apparent then.
Neighborhoods where foreclosure properties are rampant, neighborhoods where the builder is slashing prices to sell inventory and homes that are surrounded on either side by mega mansions are just a few examples of 
where last years prices are not going to hold up to buyer’s scrutiny in 2008. And that is before the buyer opens the door to your home. Once a buyer is inside if your price doesn’t reflect the condition of your home you can see the calculators working in their heads. But you say I just added a fantastic Jacuzzi tub, new bathroom tile and freshly painted the house! Did you over improve the house for the value of the neighborhood? Sometimes you can go too far and the value of what you added doesn’t add up to an over inflated price.
No matter how you cut it this market is hard for sellers to wrap their arms around. However homes are selling. Buyers today are savvier than ever. They know the value of the home; they’ve done the research and with the guidance of a good buyer’s agent are making realistic offers. Sellers who understand this end up with contracts, sometimes multiple and they are able to move on. For sellers who are still holding out hope for prices from the past they are finding it easy to stamp rejected on an offer and wait for the next one. And wait and wait and wait.
So sellers before you pull out that rejection stamp take another look at the offer in front of you. It might be painful to see but it might also be closer to reality than you know.
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An Optimists View Of Northern Virginia Short Sales
April 3rd, 2008 Categories: Auctions & Foreclosures, Buyers Corner
Yes Virginia short sales do get to closing. Is it the easiest route to homeownership? No the easiest way is to find an owner who is aware of the current market conditions in Northern Virginia and prices their home to reflect the market. Can a short sale work for buyers who are looking for a good deal and have patience to work through the process? Absolutely!
As an agent who has worked both sides of short sales there are some tips that I’ve learned along the way. For buyers who are considering making an offer on a short sale you need to be aware that no matter what you include in the Virginia Regional Sales Contract the lender will have their own addendums which will supersede just about everything you put in the contract. This doesn’t mean that you shouldn’t write a contract with the terms and conditions that meet your circumstances but it does mean you need to be prepared to be flexible about closing dates, inspections and closing cost credits.
If you are firm that it is your way or no way because this is a “buyer’s market” then a short sale will leave you feeling frustrated and angry. The processors handling short sales don’t really care about what you want. They are running the numbers to see how much they can walk away with at the end of the deal. It is strictly about the bottom line for them.
For agents who are thinking about making an offer on a property listed as a short sale there are a few key questions to ask before you write the offer.
Does the agent have permission from the owner to talk directly to the lender?
Has the agent been in touch with the lender and have appropriate contact numbers?
Has the owner completed the short sale package from the lender?
Has the owner prepared their hardship letter?
How many loans are currently on the property?
If more than one loan are they from the same lender?
Who is the lender (s)?
Have you done a pre-settlement statement for the lender?
How long do you estimate that the lender will take to provide an answer?
While buying a home listed as a short sale may be more time consuming in the end you will get a home a good price without some of the problems associated with properties already owned by the lender. If you are interested in learning more about purchasing a short sale or have a home that you are considering listing for sale give me a call. I’ll be glad to talk to you about the process and see how my team can help.
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