I am not going to discount the difficulty of purchasing a Short Sale.  However, when you have a good Real Estate Broker working for you it is not your hardship to bear.  With a little patience you may find yourself owning a home at rock bottom price. 

There are many causes behind the short sales that we are seeing on the market today, however, there is one truth to always keep in mind: Lenders do not want to see the home go into foreclosure.  This simple fact is what allows a skilled negotiator to assist you in purchasing the home for a discounted price.  However, there are also many misconceptions to keep in mind about short sales that you must be aware of. 

•·         Every short sale is NOT a good deal:  just because the seller is selling the home for less than they owe on it does not mean that you are purchasing the home at a discounted price.  It is important that you hire a Real Estate Broker that is looking after your personal needs not their own commission. 

•·         Many short sales are in poor condition:  I have heard over and over that agents tell people to stay away from short sales because there is no warranty and the house is falling down.  This is not always the case especially in this market.  This may be the case with a foreclosure as they often sit unattended for many months before the bank lists the home, however, short sales have been occupied.  Additionally, many of the short sales that we are seeing today are the result of over financed homes and devaluating property values; not neglect.

•·         Hard cash talks:  surprisingly, cash offers do not make a difference in short sales.  The lender is looking at the bottom line and if it does not balance they will not accept the sale.  However, lenders may want to see a substantial down payment to prove stability of the buyer.

•·         Sellers are not motivated:  My experience has been that sellers are extremely motivated in a short sale.  Sellers want to be rid of the stress and anxiety caused by the potential of losing their home.

The bottom line of purchasing a short sale is that you must be patient as they often take several months to complete and have a strong Real Estate professional working for YOUR best interests.  I would love to be the Broker to work with you through the process!

West Linn was one of the first Oregon cities to submit its application to receive a portion of the Federal Stimulus money for transportation upgrades.  Among the list of potential projects is the HWY 43 project and funding for the Willamette Falls Locks. 

The City is encouraging residents to contact Senator Merkley, Senator Wyden, and Congressman Schrader to encourage support of these projects.

The City of West Linn is working closely with Oregon's federal delegation in order to take advantage of every opportunity to receive a portion of the federal funds!

If you had purchased $1,000.00 of Delta Air Lines stock one year ago you would have $49.00 left. With Enron, you would have had $16.50 left of the original $1,000.00. WithWorldCom, you would have had less than $5.00 left.

But, if you had purchased $1,000.00 worth of beer one year ago, drank all of the beer, then turned in the cans> for the aluminum recycling REFUND, you would have $214.00 cash.

Based on the above, the best current investment advice is to drink heavily and recycle. - It's
called the 401-Keg.

A recent study found the average American walks about 900 miles a year. Another study found Americans drink, on the average, 22 gallons of alcohol a year. That means, on average, Americans get about 41 miles to the gallon. Makes You Proud To Be An American!

We are hearing about the many foreclosures affecting American homeownership but I have found that many sellers do not fully understand how they affect them individually.  They may feel sorry for their neighbors who have lost their homes but they do not realize that their neighbor's loss is theirs as well.

When a home enters into foreclosure the bank prefers to unload it quickly.  They do not have the resources to hold onto the home and rent it until the market returns and they have little interest in holding onto it to get the highest possible price.  Additionally, many homes that reach the point of foreclosure have been neglected due to the homeowner's lack of resources to make necessary repairs.  Some homeowners are simply frustrated and angry and take as much as they can before leaving the home which sometimes includes fixtures such as toilets and water heaters.  As a result, the home is sold for significantly less than "market value".

Let's say that you have three neighbors who have recently lost their home in foreclosure.  You have seen the effects of the market but you still have some equity in your home and you have maintained it well so you anticipate that your values are going to be much higher than the recent foreclosure sales.  After having it listed for awhile you locate a buyer who is willing to purchase your home for the price that you have set because the buyer also sees the value of your home.  This is where things can become sticky.  The buyer, who has a solid 20% down payment on your home, orders the appraisal and it comes in $10K less than the accepted offer because the most recent comparable properties in your area include the foreclosures.  As an agent, I am seeing this happen over and over in our market.  Some banks are requiring multiple appraisals before they will finance your home while others are leaning heavily on the side of caution and using appraisers who will appraise on the lower end of the price spectrum. 

What can you do to help the economy and devastating effects of foreclosure?  Encourage anyone that you may know to pursue a short sale rather than allowing their home to go into foreclosure.  Most banks would prefer to sell the home for less than what is owed if they see imminent risk of foreclosure.  This allows the homeowner to sell their home for much closer to market value while also saving them from the long term repercussions of a foreclosure.  Call me to discuss your situation or have your friends call to speak in more detail about what can be done to avoid foreclosure.

I am NOT your average agent and I am confident that you will discover that you can rely on my knowledge, experience and confidentiality.  My experience offers a sophisticated approach to analyzing your needs.  After years of observation, interaction and training in the real estate industry, I am able to help you through every aspect of the transaction.  This translates into a smooth move with a seasoned professional.  The market is changing and what used to be a hot market is becoming an "intelligent market".  The buyers today are thinking through their decisions more than they have over the past years and it is even more important to price your home correctly according to TODAY's market standards and have your home in top notch condition for showings.  It is equally as important to know which repairs are worth doing and which repairs will not make the difference in the sale of your home.

I have found that many people have a misconception about what it is to hire a professional to represent you in selling your home.  There are many agents to choose from and I have talked with many people who find the process daunting.  There is much more to selling your home than simply placing a sign in the yard and waiting for the right buyer to drive by.  In order to sell you home for the highest possible price you must expose it to the largest number of likly buyers.  This includes online exposure, offline exposure and target marketing.

Call me when you are ready to sell your home to see if my strategies are a good fit for you.  No pressure, no obligation!

Your home is most likely the largest investment of your life.  Therefore, the sale of it is perhaps one of the most important decisions you will ever make.  There is more to the home selling process than simply receiving an offer on your home and determining if it is a price that you can live with.  When preparing your home for sale it is important to understand that buyers do not simply look with their eyes.  Below are some tips to making your home an experience using all five senses... 

The Five Senses:

Sight:  Removing clutter makes each room feel spacious and comfortable.  Buyers do not want to see how you live in your home, they want to see how beautiful it can be.  A fresh coat of paint in a warm neutral color (not stark white) and house plants, whether artificial or real, give your home a sense of warmth.

Touch:  Make sure your home is dusted and the counters are clean.  Buyers will notice, whether consciously or sub-consciously, and make an assessment of your home based on this impression.

Sound:  "Psychoacoustics" is the study of sound and the effects it has on the human nervous system.  Soft music welcomes buyers into your home and creates a positive internal response to your home. 

Smell:  We all know how powerful our sense of smell is.  It is so powerful that there is an alternative medical profession surrounding the science of it (Aromatherapy).  The trick is to use the correct scents to stimulate a response and to not go overboard.  Recommendations:  Vanilla or Cinnamon Spice

Taste:  Ever wonder why we have such fond memories of grandmas house?  Perhaps it was the welcoming feeling of sitting around munching on cookies or the wonderful Thanksgiving spread.  Provide your buyers with a welcoming treat, whether it be a plate of cookies or a dish of candies.  This will make your home an experience that they will remember over the others that they have viewed.

Call me for a free consulation on how you can prepare your home for a sale! 

In recent months I have experienced a wide range of response from sellers regarding "short sales".  One end of the spectrum does not know what a short sale is while the other end knows a great deal about the process yet does not fully understand the process and what happens behind the scenes of a short sale.  Today, I would like to discuss some of the key factors to be aware of during the short sale process. 

What is a "Short Sale"?

A short sale occurs when the seller of a home owes more on the home than the current market will bring.  For example:  you owe $200K on your home yet the market value of your home is only $175K.  You are now short $25K.  Rather than going through the costs of a foreclosure, the lender may be willing to allow the buyer to purchase a home for less than what is owed. 

Who is eligible for a "Short Sale"?

A short sale is designed for people who truly need to sell their home to avoid foreclosure.  It is not an "easy out" to avoid credit issues or an option to reduce the price so that it will sell quickly.  Short sales will negatively affect your credit scores; in fact, many lenders will not even consider a short sale unless you are several months behind on your mortgage payment and nearing foreclosure.  Additionally, many lenders will require that your home be on the market for at least 3 months prior to considering any offers that have come in. 

You should also be aware that you may be taxed on the shorted amount to the bank.  The IRS may view the shorted amount to the bank as income.  There are certain circumstances that are exempt from this as a result of the Mortgage Forgiveness Debt Relief Act of 2007 so I recommend you consult your accountant. 

Surprises and Pitfalls:

Over the past year or so we have experienced a large number of foreclosures due to the drop in market value of homes across the country.  As a result, lenders have both streamlined and become stricter about the short sale process.  Lenders do not care if you made a bad purchase decision, became pregnant and can no longer work, or chose to move into an apartment.  The latter concepts are considered "lifestyle" decisions that typically do not sway a bank's decision in your favor.  Banks will consider unemployment, divorce, medical emergencies, Bankruptcy and death to be true "hardships". 

Interestingly, there is no set formula to tell us whether or not a bank will accept a short sale.  Not only do you have to prove to the bank that you are unable to pay, that they will likely see your home in foreclosure over the next few months, that this is the highest price that they will likely receive, etc.  The bank will also analyze the negative and positive effects to their personal business while making the decision.  For example:  your loan is considered a negative asset if it is in default.  In the past, banks did not want to maintain negative assets as they wanted to provide stronger portfolios to their investors.  However, due to recent legislation, it is actually to the benefit of some banks to show negative assets as it can potentially position them to receive government bailout funds.  There is absolutely no external way to forecast what a bank's decision will be on your short sale proposal.

What does this mean?

A short sale is something to consider if you are nearing foreclosure and have no other option to save your home.  There are no guarantees that the bank will accept your short sale offer, however, you may save your home from the long term effects of a foreclosure. 

As a Realtor I will admit that I am biased and feel that most people need the assistance of a Realtor when selling their home.  However, I also strongly feel that there are many people who are perfectly capable of selling their home on their own without the assistance of a Realtor so please do not view this article as "preachy".

Recently I read "Why Sell For Sale By Owner" at www.homesbyowner.com and have to admit that I received a good chuckle.  The web site answered this frequently asked question listing the following 7 reasons.  I have listed my responses after each point. 

1.        Less Hassle and Frustration: 

        a.       You don't have to leave the house when showing: the purpose of leaving the house during showings has proven psychological benefits to the buyer that actually make them more likely to purchase your home.  They are able to relax and openly express their feelings in front of their Realtor.  For example:  the buyer does not like the wood paneling on the walls and comments on it to their Realtor.  As a seasoned professional I would recommend options for the client to either remove or lessen the appearance of the paneling and re-direct them to items that they like about the home.  If the homeowner is not trained to direct conversations, the buyer may interpret the same response as a sign of desperation and low ball the seller or not ever make it past the walls and therefore not see anything they like about the home.

        b.      You can know when people are coming:  The majority of agents will notify you in advance of showings.  However, with the inventory as high as it is, if someone happened to be in the neighborhood and wants to take a look at your home I suggest you show it as it is a buyer's market and they just may be your buyer!

        c.       Your negotiation can be done in minutes:  This was perhaps my favorite.  Negotiation is a skill, an art form and yes, a special talent.  Every person alive has the ability to purchase but not everyone has the ability to purchase for the best price every person has the ability to sell but not everyone has the ability to sell for the highest price.  One of the primary principals of negation requires time.  Two cowboys in a shootout rarely turn around and start shooting immediately; they stare at each other eye to eye and watch for a twitch or a sign. 

2.       You Can "Sell" Your Home Better Than Anyone Else:  Are you kidding me!  You may be able to sell your rental property on your own but the house that you live in?  One of two things will happen (I know this from personal experience): 1)  you love your home so much and every time you see the sunshine yellow paint in your child's room you see their face.  Therefore, it is obvious that your home is worth $10K more than market value 2) you hate the neighbor and your dog is buried in the back yard.  You can't get out of the home fast enough and therefore your home is worth $10K below market value.  When option one occurs your feelings become hurt because you don't understand why no one will see what you see in your home.  When option two occurs the buyer can read that negative vibe that you portray and does not buy for fear of what is not being said.

3.       You Are In Control:  It is true that you have the freedom to advertise where and how you want to, schedule showings, etc. However, there is a reason that the system is designed as it is.  In a buyers market, it is all about the buyer and preparing your home in a way that a buyer will want to purchase it.  If you force buyers to play by your rules they simply will not bother to look.  Agents also know where to effectively market your home to maximize buyers many of which you may not even be aware of.  Ultimately, you spend a great deal of money in areas that will not attract the RIGHT buyer.

4.       More Money In Your Pocket:  Yes, it is true, the concept of the total commission can be daunting.  However, I don't think I need to say much more than what was said in 1c. and 3.  You only save the money if you negotiate the best possible price, sell it in a reasonable time frame (saving monthly mortgage payments) and don't advertise in the wrong places.  Additionally, did you know that the National Association's Profile of Buyers and Sellers shows that sellers who sell on their own typically sell for 15% less than those properties that are listed?

5.       You Can Sell Faster:  Unless you determine the fair market value of your home and reduce the price by at least 7-8% you are not likely to sell your home faster.   You see, buyers are knowledgeable about commissions as well and expect to save money by not using a Realtor.  Therefore, they are naturally going to expect a reduced price.  Extremely savvy buyers also know how to make your home to appear to have more issues than it actually does or more serious repairs than they actually do therefore reducing your price even lower.  It is also likely that you are lacking the marketing exposure and we all know that multiple offers bring in a higher price.  Interestingly, multiple offers still exist in a buyer's market.

6.       Less Uncertainty:  If your Realtor is doing their job you should not have any feelings of uncertainty.  I send each of my clients written weekly updates on the market (as well as regular direct conversations).  These updates include any market changes, what buyers as well as other agents have said about their home, suggestions for improvement, etc.  Again, going back to the negotiation topic in 1c. it is not about what the buyers and their agents say, it is about what they don't say and knowing how to read between the lines.

7.       Easy To Do:  Ok, I promise this is the last time I will say this.  Anyone can purchase something the question is did they purchase it for the right price and anyone can sell something the question is did they sell it for the right price.  Negotiation, negotiation, negotiation...

As I said, I am certain that there are many people who are completely capable of selling their home on their own and if you are one of them I truly wish you the best of luck.  However, make sure you honestly asses your personal negotiation skills, personal attachment to your home, and pricing strategy.  If you decide that it may be more than you want to deal with, call me and we can sit down and talk about the best strategy to get your home sold at top dollar!

I have to admit, I have not had so much fun with politics in years.  In fact, despite the fact that I worked for two Congressmen in the past, I don't know that I have ever had so much fun with politics!

In just a few short weeks we have experienced a drastic change in cultural, political and economic attitude and nothing substantial has changed.  I have experienced an overwhelming sense of cross cultural connections and new bonds that are being created in the effort to achieve a common goal.  I am amazed that we are now hearing of both Republican and Democratic joined efforts to work together and expedite passage of legislation after years of hearing of Bill's that likely will not pass because of disagreement on how they should be structured.  Most importantly, I am finally hearing a sigh of relief stating that we may have hit bottom and that things will begin to turn around.  

It is amazing what a figure of hope can bring to our overall outlook.  President Obama has not come in and waved a magic wand.  In fact, he has not signed all that many Executive Orders (which I have to admit I half expected).  What he has done, however, is build our confidence by effectively communicating his plans, promising transparency of government and going straight to work! 

While listening to Obama's inaugural speech this morning I was struck once again by his perspective that our country is not going to turn around simply because there is a new President in office.  His focus is, and always has been, teamwork.  We as a nation need to work together to create change.  President Obama is going to do his part to create avenues for us to prosper but it is up to us to use those avenues for the greater good. 

What has made the United States a country that people desire to become a part of, to the extent that they leave their own countries to create a new life here, is the hope of the American Dream.  Many of us who have lived in this country our entire lives have forgotten what that is.  According to Wikipedia the definition of the American Dream is: 

"The freedom that allows all citizens of the United States to pursue their goals in life through hard work and free choice."

Obama is challenging each and every one of us to support this dream.  The question I asked myself this morning is how I can participate in supporting the American Dream.  What can I change about my daily routine to contribute to the bettering of our country? 

For me, the answer was clear.  I can't think of anyone working harder to pursue the American Dream than the local "mom and pop" shops scattered throughout our country.  They range from coffee shops to drycleaners to butchers to builders.  If we all made a personal decision to support our local businesses our countries success would grow exponentially.  Our job market is overcrowded and the unemployment rate is high; much of this could be remedied by supporting those around us who are working hard to create their own American Dream. 

This is not always easy as it forces us to drive farther out of our way, pay a little more and get out of our cars rather than using the drive through.  However, I have challenged myself and challenge you also:  choose to support your local neighbors whenever the opportunity arises and watch how our country grows!