Why Use a REALTOR® When Selling?

A real estate agent helps you understand everything you need to know about selling
By Ron Schmeadick



The selling process generally begins with a determination of a reasonable asking price. Your real estate agent or REALTOR® can give you up-to-date information on what is happening in the marketplace and the price, financing, terms and condition of competing properties. These are key factors in getting your property sold at the best price, quickly and with minimum hassle.


Marketing


The next step is a marketing plan. Often, your agent can recommend repairs or cosmetic work that will significantly enhance the salability of the property. Marketing includes the exposure of your property to other real estate agents and the public. In many markets across the country, more than 50 percent of real estate sales are cooperative sales; that is, a real estate agent other than yours brings in the buyer.

Your agent acts as the marketing coordinator, disbursing information about your property to other real estate agents through a Multiple Listing Service or other cooperative marketing networks, open houses for agents, etc. The REALTOR® Code of Ethics requires REALTORS® to utilize these cooperative relationships when they benefit their clients.

Advertising is part of marketing. The choice of media and frequency of advertising depends a lot on the property and specific market. For example, in some areas, newspaper advertising generates phone calls to the real estate office but statistically has minimum effectiveness in selling a specific property. Overexposure of a property in any media may give a buyer the impression the property is distressed or the seller is desperate. Your real estate agent will know when, where and how to advertise your property. There is a misconception that advertising sells real estate. The NATIONAL ASSOCIATION OF REALTORS® studies show that 82 percent of real estate sales are the result of agent contacts through previous clients, referrals, friends, family and personal contacts.

Security

When a property is marketed with an agent's help, you do not have to allow strangers into your home. Agents will generally pre-screen and accompany qualified prospects through your property.

Negotiating

The negotiation process deals with much the same issues for both buyers and sellers, as noted above under the buying process. Your agent can help you objectively evaluate every buyer's proposal without compromising your marketing position. This initial agreement is only the beginning of a process of appraisals, inspections and financing -- a lot of possible pitfalls. Your agent can help you write a legally binding, win-win agreement that will be more likely to make it through the process.

Monitoring, renegotiating and closing

Between the initial sales agreement and closing (or settlement), questions may arise. For example, unexpected repairs are required to obtain financing or a cloud in the title is discovered. The required paperwork alone is overwhelming for most sellers. Your agent is the best person to objectively help you resolve these issues and move the transaction to closing (or settlement).

Why use a REALTOR®?

All real estate licensees are not the same. Only real estate licensees who are members of the National Association of REALTORS® are propertly called REALTORS®. They proudly display the REALTOR® logo on the business card or other marketing and sales literature. REALTORS® are committed to treat all parties to a transaction honestly. REALTORS® subscribe to a strict code of ethics and are expected to maintain a higher level of knowledge of the process of buying and selling real estate. An independent survey reports that almost 85 percent of home buyers would use the same REALTOR® again.

You be the judge

Real estate transactions involve one of the biggest financial investments most people experience in their lifetime. Transactions today usually exceed $100,000. If you had a $100,000 income tax problem, would you attempt to deal with it without the help of a CPA? If you had a $100,000 legal question, would you deal with it without the help of an attorney? Considering the small upside cost and the large downside risk, it would be foolish to consider a deal in real estate without the professional assistance of a REALTOR®.


Copyright © by Move, Inc.

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Another reason not to leave your home

I just caught wind of this article from the NY Times newspaper and thought I would share.

http://www.nytimes.com/2009/03/30/us/30walkaway.html?pagewanted=1&_r=2&ref=patrick.net

Is your home fading away?

In today's real estate market you are not alone if you are experiencing periods of financial instability and facing numerous hardships in trying to keep up with your mortgage payments and paying your monthly bills.
Each day can be a struggle trying to cope with the unbearable stress and heartache knowing there is a possibiity that you might lose your home to foreclosure or may have to file for bankruptcy.
Do you know that foreclosure is not the only option? Don't let his happen to you because you didn't know what they are.
An alternative to foreclosure is pursuing the option of a short sale. A short sale is the sale of your home negotiated with a bank or mortgage compnay to accept less than what is owed on the property
Did you know that banks prefer to do a short sale over a foreclosure? Banks are not in the business of owning property and do not want to foreclose on you.
In order to qualify for a short sale, you must have a demonstrable financial harrdship. You will have to prove this hardship through a signed letter that will be submitted toyour mortage company along with other documentation.
What is an Acceptable Hardship?
A hardship can be defined as a material change in the financial situation of a homeowner that is or will affect their ability to pay their mortgage.
Examples of acceptable financial hardship are:
1. Loss of Job
2. Business Failure
3. Damage to Property
4. Death of a Spouse
5. Death of family members
6. Severe Illness
7. Inheritance
8. Divorce
9. Mandatory Job Relocation
10. Medical Bills
11. Military Service
12. Payment Increase or Mortgage Adjustment
13. Insurance or Tax Increase
14. Reduced Income
15. Separation
16. Too much debt
17. Incarceration
If you are finding yourself is a situation where you need to sell, owe more than your home is worth or have been late with your mortgage payments a short sale may be an option for you.
Disclaimer: This post is not intended to be or to provide legal advice. We recommend that you speak to your attorney and your tax accountant regarding specifics and to find out if this is the best option for you in your situation.
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Compliments of Donna Bigda

Are you prepared to live in Your Parent's Basement?

Its been awhile since I posted so I owe you 2 posts:)

Ok, so the title is a scary thought to most of us, and I won't say that the picture I am painting applies to all, but there are some reading this or others you know that will be experiencing this reality soon.
The Economy
Watching the news lately is painful and everyday it seems to get worse.
Two days ago it was about the stock market dipping below 7,000 points. Today, two stories are dominating the news. First Citigroup's stock has fallen under $1 per share, which considering their 52 week high was over $27, is simply ridiculous. Citi has its hands in so many pies, the destruction of this company would have consequences that are hard to imagine.
GM was also in the news today. An accounting firm basically said that there survival is doubtful the way they are going. Bankruptcy seems likely, the company ceasing to exist is a possibility.
What does this mean for Housing?
If any or most of these things come to fruition it means job losses. It means foreclosures. It mean bankruptcies. This is very good news for the financially stable as they will continue to be able to buy homes at prices that seem way to good to be true. But where do the jobless and homeless turn? Mom and dad might be the answer.
Mom and Dad, can I come back?
Most of us would never dream of having to move back in with our parents, but for many in America this is becoming a reality. A sad, terrifying reality for many, or at least an embarrassment for most. It is tough to "fail" and have to go back to the place where you were taken care of as a child, only to have to be taken care of again.
In other cultures this is actually not that big a deal. Many people live with their extended families to save money and it is considered somewhat normal. A crowded house to some is a good thing.
The larger question that should be asked is why do I no longer own my home and my parents still have theirs and in many cases it is paid off?
The answer lies in a generational shift that has occurred from our parents to us. Debt was frowned on more when our parents were originally buying homes. Banks actually wanted you to put some of your own skin in the game (they are getting back to this now.) Once they were in them, they stayed in them. My parents have lived in the same house for 30 years. The generation before them was even more removed from us today. My mother grew up in a household of 7 people with one bathroom and about 1000 square feet. People made due, they got by somehow.
Today is different. We need BIG, we need a room and bathroom for everyone in the home. When we can't pay for things we charge them and hope for money tomorrow to pay the bill. What happened to us? When did enough not become enough anymore?
The reality is I think this country has spent its way back into how things use to be. I am sensing a shift in thinking towards small is okay and big is unneeded.

Can you PASS this Test- Something for FUN!!

Do you know when to start packing? How is the "Rule of Three" applied? What's the best way to make the laundry room appeal to buyers? What can you do to make the room look larger? What is an affordable item that can be used throughout the home for staging?

I found this quiz to test your Staging savviness on Realtors.org. Its short and fairly easy, for stagers anyway. Some questions make you think twice, however. Barb Schwarz, of Stagedhomes.com, help create this quiz.

If you score 100% rest assured you have a talent for staging and should use that talent to help sell your home in a shorter time period and for top dollar.

FORECLOSURE DEFICIENCY JUDGMENT or SHORT SALE PROMISSORY NOTE or BANKRUPTCY? - REVISITED

Whether to agree to a negotiated promissory note in a short sale or allow the house to go to foreclosure is one of the most discussed topics around. It deserves a simple comparison.

A negotiated promissory note is ALWAYS better than a deficiency judgment resulting from a foreclosure। Here is why:
Deficiency Judgment -
1. You have a foreclosure judgment against you and if you fill out most applications about your background you will have a question on if you had a property foreclosed upon you.
2. You have a deficiency judgment which is a money judgment against you which means ANYTHING you buy is subject to attachment by the creditor, be it a car, a toaster, or a new swing-set for your kids.
3. Your wages can be garnished.
4. Your bank accounts can be frozen and attached - without any notice in advance to you.
5. You will be subject to periodic depositions in aid of execution and have to provide copies of all of your financial matters - several times a year. If you repeatedly don't show up the court can hold you in contempt of court and even put you in jail (YES - JAIL!!) until you comply.
6. In Florida (check other states) you can enjoy each of the above for 20 full years before the judgment is no longer enforceable.
7. The judgment usually carries interest. Check your state for the rate. For judgments rendered in 2009 the Florida statutory rate is 8%.
8. FANNIE-MAE underwritten mortgages cannot be obtained until 5 years after the foreclosure judgment.
Negotiated Promissory Note -
1. You pay an agreed amount according to the promissory note, which is usually monthly and often at no interest.
2. If you no longer can pay you may be able to negotiate a new payment amount or abate payments for a period of time.
3. You may be able to re-negotiate the terms of the promissory note in the future.
4. The promissory note is not a judgment so it does not show up on the credit report.
5. If a foreclosure suit was entered, even if it went to a foreclosure judgment (but not a sale), the lender will likely dismiss the suit and vacate the judgment, clearing your record - even before you start paying on the promissory note.
6. If you stop paying on the promissory note the note holder can then seek a money judgment for the unpaid amount.
7. FANNIE-MAE underwritten mortgages can be obtained after a short sale in just 2 years.
8. Once you repay the promissory note the lender should remove degrogatory credit report postings regarding the payment of the mortgage for "less than the agreed amount", instantly repairing your credit score.
Bankruptcy -
Many people speak to me about Bankruptcy as the better option. It is an option - but when it should be used is a big issue.
Declaring bankruptcy is a LAST RESORT. In a chapter 13 (personal reorganization) you are effectively "betting the farm" that you can perform for the 5 or so years of planned payments. If you default you revert to either a dismissal or a chapter 7 total liquidation- and you cannot refilefor many years. Bankruptcy also is a final chapter so to speak. There are no further remedies available to you for protection from creditors. It is like one bullet in a pistol - you need to decide when is it absolutely, positively without any doubt necessary to pull the trigger. You need to expand your horizons to not just today, but tomorrow and maybe thousands of tomorrows (days) before you can walk back into bankruptcy court. Chapter 13 and Chapter 7 have their useful purposes but they must be used prudently and carefully. A bankruptcy is the worst hit you can give your credit report.
If a promissory note just does not work out and the lender is relentless and THEN gets a judgment for payment of the note amounts, you will then be in no worse situation than if there was a deficiency judgment. In my opinion you will be in a better position if you weigh the positive and negatives of each position and work your way slowly and methodically through the available remedies step by step. If at the end of the line it did not work out, then you have the bankruptcy alternative remedy. But without giving each step an opportunity to work for you makes no sense - don't throw your self overboard!
Copyright 2009 Richard P. Zaretsky, Esq.
Be sure to contact your own attorney for your state laws, and always consult your own attorney on any legal decision you need to make. This article is for information purposes and is not specific advice to any one reader.
Richard Zaretsky, Esq., RICHARD P. ZARETSKY P.A. ATTORNEYS AT LAW, 1655 PALM BEACH LAKES BLVD, SUITE 900, WEST PALM BEACH, FLORIDA 33401, PHONE 561 689 6660 RPZ99@Florida-Counsel.com - FLORIDA BAR BOARD CERTIFIED IN REAL ESTATE LAW - We assist Brokers and Sellers with Short Sales and Modifications and Consult with Brokers and Sellers Nationwide! Shortsales@Florida-Counsel.com New Website http://www.florida-counsel.com/. See our easy to find articles at Need Short Sale Information? - These Articles Probably Answer Your Question