I feel like so much of my time these days is giving bad news to good people! It's tough! Buyers and sellers are getting bad news from me. But honest news.

Short Sale Sellers are hearing:

• The home value is so low that they have to do a short sale
• The Short Sale "might" result in an income tax bill
• There is a sale date scheduled
• The buyer walked

Equity Sellers are hearing:

• The real value of their home, not what they wish it were
• The home down the street is listed 30% less because it is a short sale
• We have an offer, a lowball offer

Short Sale Buyers are hearing:

• It's going to take a few MONTHS to hear back from the bank
• The listing agent just got a higher offer and has sent that ALSO to the bank
• The short sale approval doesn't include temite, or past HOA dues, or Hazard Reports, or title fee, or escrow costs, or, or, or
• The approval is 20% higher than our offer
• The approval is for 15 days and if we don't close there is a per diem charge

Buyers of standard sale properties are hearing:

• Just because the home down the street is listed 30% lower than this one, it's most likely not going to sell for that price....it's a short sale/bank owned.
• The sellers chose not to counter your offer because it was too low
• The sellers countered your offer to include "as-is" language
• The sellers will not pay for termite work

Just some of the many bits of bad news I have to discuss every day. It's not fun....for any of us. And each time I have to deliver this type of information, I worry. People don't like to spend time with "downers" and I feel like one.

But it's the truth....the unvarnished truth.

The current real estate market is complicated. I requires care and attention to navigate the various aspect of writing offers and getting them accepted...and of course closed. My clients are responsible adults who do not need to be babied, certainly cared for, but not lied to. We need to deal with reality as it is.....lies, distortions and omissions do not help anyone. On my part they violate the fiduciary duty I have for my clients. My job is to give the facts to the best of my knowledge and then allow my clients to make decisions......even if that means they want to work with someone who tells them what they want to hear.

I'm never going to tell a buyer or seller what they want to hear.....I'm going to tell them the truth.

I support this media campaign to make ASUS do the right thing. It shouldn't be about public pressure, it should be about customer service! I stand behind what I do....I bet you do also. It's not about what I promise in writing, it's about my reputation. ASUS got a quick sale from Gail? but will not have any more from any of us. Too bad.

Change, Change, Change

This is a major theme here on Active Rain lately, actually for as long as I can remember. I joined in January 2009 and I think they were talking about it back then also. (Can it really be 3 years already?)

As a people, we like things to stay within our comfort zone. The ironic thing is that Active Rain is filled with the most technologically advanced group of real estate professionals out there. Post after post about new tools, Internet sites and SEO techniques populate the blog roll daily. We are an advanced bunch.

So why when Active Rain tries to do something different is there so much push back? The one thing I really like about Active Rain is their responsiveness to the membership. I can send an email with a question or concern and get a quick response and often a fix. What's more....the person signing the email KNOWS me. That's amazing with a group of over 200,000 people.

I was thinking about this today...reading a couple blog posts lamenting the changes.

My son and I went to the same small Liberal Arts College in Illinois, Principia College.  In fact it's the same one that my parents went to also. The buildings date back to the mid 1930's built by the great architect Bernard Maybeck. Now that Principia College has been listed as a National Historic Landmark....there aren't many outward changes going on.

Which brings me to my point.

When my parents visited me in the early 1980s, they were surprised by the "changes." We had phone booths on every floor....can you believe it? PHONES! We could eat dinner in jeans and sweats (they were in coats and ties). I wore a pants suit to church....no gloves. The upper-classmen could have cars on campus. They felt that some of the charm had been lost and we weren't getting the same experience. But I loved it!

When I visited my son in the early 2000s, I was surprised by the "changes." They had wireless Internet in each room....and PHONES in each ROOM. They could use their dining credit in the pub, rather than just the dining room. They could stream the church service into their computer, if they couldn't get to chapel. They texted each other across campus rather than hanging out in the living rooms. They drove from one side of campus to the other. Boy....so much of the charm was gone. But he loved it!

I'm not sure if I made my point? But embracing change? It's probably just about acceptance and openess. One man's change? Well....you get it.

My dog is just staring at me from outside. She wants inside so badly...normally she sits at my feet while I do my morning work. Not today, I might just kick her.

I'm in a really bad mood!

There isn't a particular reason for it. It's not because I was having a nice dream when the alarm went off. It's not because I had to wake up my son who slept through his alarm. It's not because I had to gather my husband's clothes off the floor just to brush my teeth.

My husband thinks he knows the reason...idiot!

Oh and now the dog...giving me the sad face. Ugh...want to head back to bed.

But I won't! I can't afford to wallow, I'm in sales and service. My clients don't care (ok, they are great, and I'm sure they do care....a bit) about my bad mood. They look to me for calm reassurance. So that's what they are going to see today.

• I can't be frustrated with the home inspection
• I can't yell at the lender who hasn't gotten loan docs
• I can't complain to the negotiator about unrealistic "tasks" and appraisals
• I can't show irritation at another lowball offer for my favorite investor.

I just don't have the luxury of indulging my emotions....nor should I. My dog is grateful! So off I go...and hopefully, no one will ever know that I threw the phone across the room when we hung up. Maybe I should start my day taking a few punches at the gym?

Check out this video courtesy of the LA Times. Presented on behalf of "meaningless Internet spectacles," this is truly an amazing snack display. I think for my part, I'll go a bit smaller for our "Big Game" Party (Did you know you can't use the super word for commercial gain?). Although this has given me an idea for a cake...I think that's something I could pull off by Sunday. :) Enjoy the virtual weight gain!

The Big Game Snack Food Stadium - Watch More Funny Videos

I got my hair done yesterday. At my age, and with my amount of hair, this is a long process. Base color to hide my roots, highlights to pretend it's sun-streaked, trim, style...you get the idea.

I do enjoy it though...the salon I go to is filled with friends of mine. These are women that my kids have gone to school with and clients and personel all have a great time.

Yesterday, however, one poor woman was having major color correction done. She had been "impatient" (her word not mine) and a bit "cheap" and had tried a box of color on her hair. Nothing wrong with this....we've all used boxes for our color during tight times....tight on money or tight on time. This, however, was her first effort and she decided to spice it up even more by going lighter....ie, it had a lot of bleach in it.

Yes, it was a mess!

Orange in some places, still gray in others, dark underneath....pure disaster. To top it off, this was an expensive correction. We were all laughing about it....including her...but doing it right the first time would have made a lot more sense.

Later that afternoon (remember I told you how long my hair takes?) we were talking about real estate and how things were going. I said "great" which is true. One lady said that she knew people who just weren't paying for the commissions and listing on Craig's List and just "doing it on their own."

I couldn't resist reminding them that earlier they were dismayed that someone would try and color their own hair....but selling their own home? The paperwork, the disclosures, the title, the lending, the appraisals? Allowing unknown people (from a Craig's List Ad) into your home? Really?

A "do-it-yourself" real estate mess is a lot harder and a lot harder to correct than a bad hairdo.

This tickled me this morning. Nothing worse than finding that your morning pants listing doesn't fit anymore. Or maybe it never did. :) Clever post, enjoy!

It has finally happened...after 24 years. My youngest child left the house under his own power....well, our power, a Toyota Truck. I am no longer responsible for getting ANY child to school. No more carpool!

It's been a long time since the morning was completely my own (although I did get up out of habit and try to make him breakfast).

My husband and I raised 5 children. My oldest began preschool at about 2 years old. That was 24 years ago. Since then, I've been involved in some form of child-transportation. My step-kids went to school near their mom (she worked at the school) so often I would drop one of mine here and then hoof it 15 miles up the freeway to drop them off...and reverse it in the afternoon.

The past couple years has been a shorter commute...but still by the time I picked up the other boys, it was still about 45 minutes each morning.

Of course it's rewarding to pick up teen-aged boys in the morning! :) For my effort I was greeted with a series of grunts and growls depending on the question and/or the perceived prying. "How was the game last night? Did you guys win?" ...... "grunt, growl, NO..." Oops :)

This morning, I'm sitting at the coffee table (such a gorgeous sunrise that I brought my laptop out of the office to enjoy it). I'm having my second cup of coffee in my PJs and enjoying the quiet. Ah.....finally, I'm done. 24 years after I started!

So much of the Mission Viejo Real Estate Market is short sales. In fact, all of Southern California seems to be listing short sales. It's a sad situation that those who purchased or refinanced during the "boom" period a few years ago now find themselves stuck when they need or want to move.

In an effort to help these short sale sellers as well as the housing market in general, Washington DC had passed the Mortgage Tax Relief Act. This included the provision in which the federal tax consequences were not applied for a period of time.

Did you know that normally the amount of debt forgiven on a mortgage would be considered ordinary income to the tax payer?

For example: If you owed $400,000 on a mortgage but could only sell it for $300,000 in a short sale, the difference ($100,000) would be added to your income.

You would pay tax on an extra $100,000!!!

Obviously the intent was to help those who were already struggling financially to avoid additional burden.

Once someone decides to sell a home in a short sale...typically the seller does not pay their mortgage any longer. (I'm not suggesting this, I'm not a CPA nor attorney and these decisions should be made with professional advice) The goal being to save for the next chapter of their lives. They also expect a long time frame for short sale approvals. This is in essence rent/mortgage free living.

Sometimes this is the only thing which allows the seller to save enough to move forward.

Adding to the normal length of short sale approval is the lack of motivation for the seller. They are living free at the moment, and the longer that lasts, the more they can save. Often they are also hoping for a child to finish a school year, or job offer to come through. This can make the showing availability very limited.  They lack a desire to show at all....let alone at inconvenient times. Embarrassment can also limit typical marketing activities, like a yard sign or open house. 

However.....if you have been considering a short sale in Mission Viejo, or anywhere in Southern California, this might be the time to act. As of now, the Mortgage Tax Relief Act expires in December, 2012. 

Maybe this seems like a long time away....but it's not. Most short sales go through a buyer or two and long approvals on each. There are many contributing factors; Buyers change their minds, the bank comes back with unrealistic approval price or terms, lack of attention from new buyers due to the length of time on the market, and some buyers will just avoid short sales altogether. Perhaps you don't need to list in January....but by March I would suggest some urgency, if you want to be safe.

Now maybe the Act will be extended, I know that would be a positive step for helping our market...and frankly, it's an election year. But if it's not...then closing January 1, 2013 vs December 31, 2012 could mean thousands of dollars of tax debt. Not a gamble I'd like to take.

If you are feeling that a short sale might be a good option.....talk to an agent. Get some information and direction. We can help....but don't come to us at the last minute, when it's too late.

I really loved this post....by a relative new-comer. It makes the point that when we can create an environment here where new bloggers can feel confident to participate. Something we can all remember in our rush to comment. Think about how much better our entire Active Rain Community will be if we all think about this.

If you agree....go to the original post and suggest, like I did. I really liked this.