What is a Short Sale?

Many sellers have many reasons why home selling is a part of a large decision in this current economy. The largest one is a question they ask themselves; “How do I sell my home for less than what it’s worth?” In this case – when a home owner cannot afford the monthly mortgage payment and they are facing circumstances where they want to take the right measures to sell to avoid foreclosure, this is called a Short Sale.

What is a short sale is – a homeowner makes an agreement with their mortgage bank to sell their home for less than what they owe. Mainly unforeseen circumstances are a part of the reason they need to sell. Some of these circumstances are divorce, death, job loss, income decrease, illness.

During a short sale process, a licensed real estate agent will walk the seller through all steps involved. First step is a current market value of a home using data from MLS (multiple listing services), which is accurate data – not a “zestimate” as seen on Zillow. Next step is authorizing a licensed real estate agent who has experience and specializes in REO/Short Sales to assist.

The common question – “If I need to sell my home under a short sale and the bank works with me to do so, how do you, the agent, gets paid?” Approaching the answer to this common question upfront in this article is like this: you agent is paid through the transaction and their brokerage firm will co-broke to a buyer’s agent via the terms of the listing agreement you, the seller, signs and a copy is given to the bank that is working with you to sell your home for less than what you owe.

It’s important to understand the bank will require the seller to remain and stay in compliance with them. Part of working with a mortgage bank to agree to sell your home less than what you owe is actually writing a letter of reasons why you are facing hardship. Also understand the bank does want to work with homeowners in these situations to sell the home and avoid a foreclosure action too.

It is wise to always seek and prepare the advice of an attorney as well. And not to fear – if you or someone you know fall under this circumstance, I have never seen anyone without a home to live in. Hardships are happening every day to millions of people because of the economy. But one fact of knowledge anyone who entertains to sell their home under a short sale agreement needs to also understand the bank is the third party approval via any offer that the seller accepts and the buyer(s) must also be in compliance with the bank as well along with understanding they are purchasing a short sale that is subject to the bank’s approval.

There is light at the end of the tunnel. Selling a home under a short sale agreement is not what I would advise to do on your own. Keep in mind when doing this, the bank will not allow a seller to keep any type of profit, meaning a seller who sells under a short sale agreement does not make any money from the sale.

I have seen sellers sell under a short sale agreement with their banks based on unforeseen circumstances and still make the mortgage payment until the home is sold and closed – resulting in a seller purchasing another home that is more affordable for them. But not every homeowner is able to keep up with this practice. The best knowledge to know and be aware of when can you buy a home again after you sell under a short sale agreement.

Contact Alan Barberino for all your Property Management, Leasing and Real Estate Sales needs.  Visit www.BarberinoRealEstate.com

Selling or buying a home in Connecticut? Research is key to knowledge.

Selling or buying a home in Connecticut? Research is key to knowledge..

Selling or buying a home in Connecticut? Research is key to knowledge.

It has been said “A mind is like a parachute. It works best when it’s open”. That same frame of thinking also applies when researching the market conditions in the areas of which any seller and buyer is looking to sell or buy. The Internet is filled with advice and knowledge, but the top of the knowledge base are those who hold the key to your sources. That being said, a REALTOR® .
Knowing the market in the Greater New Haven County towns in Connecticut, it is important to know market values verses listing prices. Many times we will see a property marketed for sale way above it’s actual market value – this is one thing you want to avoid in this market.
For example – when selling or buying a home, set your price and get the market value a home is worth.  That means the past time of “I will negotiate if an offer comes in” changes to “negotiating the best terms and conditions that fit the seller’s/buyer’s needs”.  As a seller, you want to be able to stay ahead of the selling market in your area by listing your property appropriately to the market conditions in your area – resulting more buyers to view and an offer you want to see.
This same rule applies to buyers. Know the market.  A real estate professional can and will help educate you in knowing the market values of the areas you search homes for sale in.  Don’t go above your pre-appoval limit your lending institution pre-approves you for. Stay within your financing means as well.
Part of selling and buying a home is reaching for a successful goal in your real estate decisions. Although we all may feel at times a home is worth more than what the current true market value is, keep in mind market values do change frequently – but the BEST investment anyone can and will make in a lifetime is the purchase and sale of real estate.
Remember, whether you are a buyer or seller, the job of a real estate agent is to negotiate and get the best terms and conditions that are suitable and fit your real estate needs and goals.

Visit www.BarberinoRealEstate.com or Click Here to begin your property search or request a home market value.

Your Source for CT Real Estate. Leasing, Sales and Property Management

Your Source for CT Real Estate. Leasing, Sales and Property Management

The Very First Step is Contacting a Real Estate Professional

To Find Out Your  Home’s Property Market Value.

PRICING YOUR HOME TO SELL!  The first step before staging. Put your mind in  the mind of the buyers, then prepare your home to present itself at the price  you listed it for. A realistic selling price and terms are perhaps the most  important considerations to a prospective buyer of your home. The price is based  on a Competitive Market Analysis drawn from research of comparable houses  recently sold within the area and those now for sale. Be sure you receive a CMA  with comparable sales that are within a year of when you are planning to list  your home for sale. The “comps” that are the most recent in market values and  within a one mile radious of your home reflects your home’s current market  conditions.

DON’T OVERPRICE! As a seller, you should be aware that an overpriced home  isn’t going to make money – it’s going to cost money. An inflated price tag is a  losing proposition for everyone: you lose time and money, and in the current  real estate market it may be challenging to aggressively promote the sale of  overpriced property. Prospective buyers will rarely consider a home that’s out  of their price range and a home that is overpriced for the location. The  unfortunate comes to life when you eventually decide to reduce the price to a  realistic figure; the buying public may recall how long the house has been on  the market and assume there’s something wrong with it or the location.

SET THE PROPER PRICE AND GET IT! Your choice in a Real Estate Professional  will work with you to determine a fair and realistic price. Based on the daily  familiarity and knowledge of current market prices, be certain you are choosing  the best qualified real estate professional that is a Realtor to establish a  proper price. The major concern is setting the best price that sells your home  and only a Realtor can access that information. Several Real Estate Companies  offer about the same type of services, the truth is, service begins with the  Real Estate Professional representing that company.

You can help sell your home faster for the best price with a little extra  effort on your part. The following tips have proved invaluable to owners and are  worth your special attention.

First impressions are lasting. The front door greets the prospect so make  sure it is fresh, clean, and scrubbed-looking. Keep the lawn trimmed and edged  and the yard free of refuse. Be sure snow and ice are removed from walks and  steps.

Decorate to sell. Faded walls and worn woodwork reduce appeal. Why try to  tell a prospect how your home could look when you can show him by redecorating?  Neutral colors fit with any buyer’s color scheme, and a new touch of paint will  often result in a quick, profitable sale.

Let the sunshine in. Open draperies and curtains and let the prospect see how  cheerful your home can be.

Fix the faucet! Dripping water discolors sinks and suggests faulty plumbing.  Repairs can make a big difference. Loose door knobs, sticking doors and windows,  warped cabinet drawers and other minor flaws detract from home value. Have them  fixed. (When prospects see things that need attention, they begin to worry about  things they can’t see.) Show from top to bottom.

Display the full value of your attic, basement and other utility space by  removing all unnecessary articles. Brighten dark, dull basements by painting or  washing walls.

Safety first. Keep stairways clear. Avoid a cluttered appearance and possible  injuries. Make closets look bigger. Neat, well-ordered closets show that the  space is ample.

Believe it or Not…Bathrooms help sell homes! Check and repair caulking in  bathtubs and showers. The Bathroom(s) sparkle is a terrible thing to waist.  Arrange bedrooms neatly. Remove excess furniture and use attractive/clean  bedspreads and freshly laundered curtains.

Can you see the light? Illumination is like a welcome sign. The potential  buyer will feel a glowing warmth when you turn on all your lights for an evening  inspection.

Three’s a crowd. Avoid having too many people present during viewings of the  home. Note – If you request your agent to be present at these viewings, they  have to be present. If there is too much of a crowd, the potential buyer will  feel like an intruder and will hurry through the house.

Music is mellow. But not when showing a home. Turn off the blaring radio or  television. Let the Realtor and buyers talk, free of disturbances.

Pets underfoot? Keep them out of the way–take them for a ride or put them  outside. If this is a difficult task for you and your pet, then hire a Realtor  who is pet friendly that can work with your pet prior to the prospective buyers  arriving.

Silence is golden. Be courteous but don’t force conversation with the  potential buyer. He/She wants to view your house for a potential purchase–not  pay a social call. Be it ever so humble. Never apologize for the appearance of  your home. After all, it has been lived in. A Realtor is trained to answer any  objections–this is their job. Stay in the background. The Realtor knows the  buyer’s requirements and can better emphasize the features of your home when you  don’t tag along. You will be called if needed.

Why put the cart before the horse? Trying to dispose of furniture and  furnishings prior to potential buyers view your home, makes a room appear like  an “empty nest”. Remember your three types of buyers; The Starting Out Buyers,  The Starting Over Buyers, The Moving Forward Buyers.

A word to the wise. If you hire a Real Estate Professional, let your Real  Estate Professional discuss price, terms, possession and other factors with the  customer and/or their agent. An experienced full time Realtor is eminently  qualified to bring negotiations to a favorable  conclusion.

Visit www.BarberinoRealEstate.com to search all homes for sale in Connecticut and request your home’s current market value before you sell.

Alan P. Barberino, President

Visit Us Today:

194 N. Plains Industrial Rd. Wallingford, CT 06492

Directions!

Office Number: 203-269-0284

 Management: 203-265-7534

Sales/rentals: 203-269-0284

[Article Source: Maggie Griffin]