Marysville Ohio Ask Your Agent

Extra Fees May Come As Surprise to Home Sellers & Buyers

Vicki Owens, ABR, CRS, GRI, SFR (Best Homes Real Estate) — Wed, 09 Feb 2011 07:30:16 -0800

Submitted by Vicki Owens, ABR, CRS, GRI, SFR, Best Homes Real Estate, Marysville, Ohio

Heads up to owners with homes on the market or anticipating a future sale in 2011. If you live in a newer home in a subdivided community, you may want to read the fine print from your builder about transferrable warranties as well as from your Home Owners Association about transfer fees.

If you live in a community that has a Home Owners Association, you may be paying fees annually, quarterly or even monthly to your association to care for common areas of your neighborhood. But did you know that when you go to sell your home, your association may likely charge a "transfer fee"? For years this has gone on with condominium communities and was expected. As more and more neighborhoods turn over responsibility for the operation of their association to professional property management companies, we are seeing these fees be put into place. Anywhere from $50 to $300 that will be the responsibility of the home seller. For what? To change the owner name in their database. Also, with lenders being more stringent in underwriting, we are seeing more and more fees also charged to them for documents held by the association, like rules, covenants and insurance policy records. If you receive notice about your home owners association, you may want to check this out and get a run down of extra fees they may have in place. If you have a recent addition of an HOA in your community, it is important that you read the fine print and details. It may sound like a drop in the bucket right now, but when you start adding up the costs to sell your home, this can make a difference.

Do you have a transferrable builders warranty? Some builders have recently put into place a transfer fee for the new owner to take over the warranty. Typically, the new owner would complete a card or go on line and register as the new owner with the home builder at no charge. These warranties are generally 20 to 30 years from the date of build and cover the structure and sometimes dry basement. A nice peace of mind thing to have and valuable selling tool for an owner. Now, a seller may end up spending $200-300 to transfer this warranty. It is worth making a call to your builder's warranty department to find out if there will be a fee. Certainly you do not want a detail like this to hold up the sale of your home.

If you are a home buyer, especially if you are looking at foreclosed properties, you want to check into these things where community and warranty are concerned. With home owners associations specifically, many do not file liens against the property that can be found by a title company prior to the home sale. So later, you get a letter or even a certified letter or a lien from an association that you may not have known even existed. They could be expecting you to pay transfer fees, back dues, late fees, etc. after you are in the home. We are seeing this more and more where new owners get this unwelcomed surprise. The banks have new owners sign many waivers and will not take responsibility to disclose this information to the buyers. And since a lien is not filed, it would likely not be covered by title insurance. Know that back association dues are a risk taken with foreclosed and short sold properties. Even agents have no true way to find out about this prior to the close of sale. Do your research on the neighborhood if possible prior to closing and see if funds can be escrowed for these fees and fines. In addition, do not assume that a builders warranty will automatically transfer with the home. If it is newer and you think their may be a warranty still in place from the original builder, call their service department directly to question this and find out about transfer and if there are any fees for that. Many home sellers may not be aware that there is any fee for the transfer leaving it to the buyer to pay after the sale to continue the warranty.

It is a jungle out there. With sales down and companies looking for new income streams, it is always good to do your homework so as a seller or a buyer, you are an informed consumer. There is little regulation on these types of fees, if any. And when it turns into a considerable amount that is in question, it can become a real headache that may even land in court. Real estate contracts become more and more complicated every day especially with a variety of attachments. You should consult with an informed real estate attorney when you are selling or buying to be aware of the details. Attorneys can interpret for you the fine print within contracts, waivers and addendums so that you are sure you are well informed of all costs and risks involved. Your Realtor should always advise you of your rights of attorney review and keep your best interest in mind.

Vicki Owens, ABR, CRS, GRI, SFR is a trusted resource in the Marysville, Ohio area and owns and operates the branch office of Best Homes Real Estate. Since 2003 she has been serving the Marysville and Central Ohio areas both as a listing agent and buyers agent. A multi-million dollar producer, Vicki actively stays in touch with the local market and changes effecting the industry. Contact her by phone at 614-440-5174 or 937-644-3385, A native of the Columbus area and Marysville resident since 1999. You can find reliable, informative resources on her website www.movetomarysville.com

Marysville Home Owners: What It Takes to Sell in 2011

Vicki Owens, ABR, CRS, GRI, SFR (Best Homes Real Estate) — Sun, 23 Jan 2011 10:08:23 -0800

Submitted by Vicki Owens, ABR, CRS, GRI, Best Homes Real Estate

Want to make that sale finally successful in 2011? Perhaps you have tried in the past years to sell with no luck or have been "waiting for the market to bounce back" to make your move or you have a need to sell due to personal circumstances. If you are reading this, chances are you are seriously considering making your move this year.

Contrary to bad media static or conversations with friends, family or neighbors, if you have a strong desire to change your lifestyle and move on, your home can be sold. Preparation and patience are a virtue. There is no doubt the competition is tough. Banks are releasing foreclosure properties at rock bottom prices, short sales are abundant and it is likely that you are seeing neighbors walking away leaving an empty home that at some point will be more competition. Just setting a random price and putting a sign out in your yard is likely not going to get the job done.

First and foremost you must check your finances. The balance of your mortgage loan may tell you that you need to stay, consider refinancing, or work out a way to get that balance to a level that will cooperate with the market. Agent success fees are not the only expense you will have as a home seller. In our market sellers are expected to pay for title insurance, search and closing fees, warranties as well as a pro-ration of property taxes due at the time of closing. With inspections and any repairs, it is best to think of that number as 10% of the selling price. In many successful sales, Sellers are assisting Buyers with $2000-3000 in closing costs as well. AND how much from the sale do you need to move on to your next home if you plan to buy? Consult with your local mortgage loan banker to see how you qualify. Being informed of the numbers is definitely the best step you can initially take to avoid being disappointed.

Look at your home from the Buyer's eyes. Think about what made you love your home when you bought it. Was it the location, floor plan, décor? Go onto the web and search sites like zillow.com, realtor.com, trulia.com and some local agents websites. Look at the photos and virtual tours. Check the prices. Which homes similar to yours do you think look appealing and which ones would you rule out? The hard question is realistically, how much would you pay for your home in today's market? Take inventory of the improvements like carpet, paint, flooring, fixtures that it would take to get your home into a condition where is might compete with a new home for sale, or some of the best that you see on line. Are you ready to start looking at your home as a product instead of as the place you live?

Consult with several agents. There should be no charge for a consultation. A full time real estate agent who is actively working your market area should be able to provide you with information about what has sold in the last 60-90 days, advise you on what you are competing with, and give you an estimate of what you can expect financially when your home sells. In addition, many times agents can recommend reliable lenders, technicians and resources to help you prepare. With such a big decision, surprises are not welcomed. Do not be shy to ask questions about the agent's track record, training, and fee flexibility especially if it is someone that is new in the business or unfamiliar to you in your market area. The marketing of your home is just the beginning and a part of the process. You will need assistance for every step and communication during the process. Do you trust that the agent you pick will work in your best interest and will really work with you to meet your goals?

What will it take for you to be "the one" that a home buyer chooses in this market? Keep in mind that today's home buyer typically does a lot of research. With access to public records it is likely by the time they come in to take a look that they know what the county auditor has on file including how much you paid and what the value for tax currently is. Likely that potential buyer is touring multiple homes and may have been for several months. Not only are they looking for the perfect place for them to settle in, but the best price available. Buyer's can choose to purchase a home that needs work and get loan options that assist with this. They are likely to add up any work that needs or has been done and consider that in the price. There are LOADS of fixer upper homes. If you feel yours has issues, price it accordingly. Allowances and excuses do not work well for buyers who want a move in ready property. In other words, a move in ready price requires a move in ready condition in order to succeed. Even builders are discounting and offering financial incentives for Buyers, so keep in mind you will be competing with them as well.

Something else to consider is the appraisal. Nothing is more disheartening as to get the offer you have been waiting for to find that the Buyer's lender will not approve the amount. Appraiser's for the banks will look at sold comparables when arriving at the value of your home. The value you place on granite or a finished lower level may not match the value an appraiser gives it. Not because you did not do a great job, but because of what other homes are actually selling for in the last 6 months. Chances are that you can lose your buyer if you cannot match the appraised price. Buyer's are unlikely to pay more than appraised value. Would you? You can hire a licensed appraiser to provide you with a market value before going on to the market. However, the appraisal at the time of sale may not match another appraisal at a later date. Appraisals essentially are only good for the date and time they are performed.

Want to know more? Contact Vicki Owens, ABR, CRS, GRI, SFR with Best Homes Real Estate of Marysville. Highly recommended in the area and successfully assisting 40-50 clients a year with selling and buying residential property, Vicki can provide you with the information you need to plan and succeed in selling your home. Visit www.movetomarysville.com. Call 937-644-3385 or 614-440-5174 or email to movetomarysville@gmail.com

Time to Sell, Buy or Stay Put? Marysville Ohio Real Estate

Vicki Owens, ABR, CRS, GRI, SFR (Best Homes Real Estate) — Wed, 19 Jan 2011 10:38:54 -0800

Submitted by Vicki Owens, ABR, CRS, GRI, SFR, Best Homes Real Estate, Marysville, Ohio

Whether it's email, texts or phone calls, I get so much communication from clients, their friends and community residents alike who are seeking to know exactly what they can expect from the market. "Where are things really? I know that you shoot from the hip and will tell me the real story on what you are seeing out there in the trenches".

For Buyers: What a load of opportunity for first time buyers and those who have their home sold or have been paying out to that landlord for awhile and have maintained great credit. Your rewards are coming! The banks are FINALLY releasing many of the foreclosed properties that they have sat on for months or even years here! There are a lot of homes that need some TLC and ready for the right buyer. The USDA funds are back in Union County, which means you can get a home in great condition for $0 down and NO PMI in the payment! Move in ready motivated seller homes are out there and plentiful as well. If you want to buy a fixer upper, you might look in to Fifth Third Bank's 203K Streamline program. This one will allow a considerable amount of fix up money and do this all with one easy step with an estimate from Home Depot. The rates are still even below 6% on these types of programs that can cover appliances, flooring, and really turn a fixer upper into a move in ready place. Buyers, the early spring market is ripe and ready for you to get out there and start finding that home that you have been waiting for!! Sure enough wait till late spring and you will see some "not as motivated" sellers with pricing that may be a bit higher than those who have worked hard waiting for you this cold, long winter! We have seen MANY price reductions and a short sale that is in good condition could be well worth your wait for approval and get a lot of home for your dollar.

For Sellers: There is no doubt about it that if you need to sell you are going to be competing with A LOT of foreclosures and short sales this year. Your advantage is that if you have the ability to price your home competitively and are really motivated by that lifestyle change, you may be able to get into that next home for far less than you expected. So many people who have to make a move are considering renting the property. If you can find a great renter who will care for your place like it is their own and are underwater in the mortgage, it may be a good option. The key is to search your soul about being an "accidental landlord". Maintaining that property for tenants and making sure that you get a deposit that would be enough to replace things like carpet and re-paint are just 2 things to consider. If you do not have equity in the home and can wait a year or two, that may be an option.

For years now with the declining prices we have seen MANY sellers bringing cash to closing. When you look at your price, you will want to be sure that fees and all liens can be covered for your selling price. A good agent can give you a pretty solid estimate on what that would be so there are no surprises in the end. Nothing is more disheartening for sellers and buyers as not being able to close after all the steps of a transaction, or worse, legal trouble over it. For success, you must PREPARE, PREPARE, PREPARE. Financially & condition.

To compete, you want the buyers, who have SO many choices, to pick YOURS!! Check out the prices that new homes are selling for today, and look at what has actually SOLD in the last 30-60 days. Take a look at your home from "the buyer's eyes" and make it a place that you would buy all over again. Is it a lot of work? YES So only you can decide if you are up for the challenge of getting in the race. If you are relocating, find out what that new employer might do to assist you in the sale. Some programs may even cover some of the expenses you had in making improvements to the home over the years.

Whether you are buying or selling in 2011, your commitment truly needs to be your lifestyle/location choice as it is likely sacrifices will be made. Only you can decide if the time is right and you are ready to roll up your sleeves for the work, whether it is the load of paperwork the bank will ask of buyers, or the whipping the home into shape and finance issues faced by sellers. One thing is still for sure, the American Dream is alive and kicking regardless of all of the static in the news media. Home IS where the heart is and most folks really want a place of their own to settle in to.

Vicki Owens, ABR, CRS, GRI, SFR, with Best Homes Real Estate has been serving Marysville in Central Ohio since 2003 selling over 17 million in residential real estate. Visit her website at www.movetomarysville.com. Vicki offers free services to home buyers showing any home available, staging services & professional consultation to home sellers and FREE use of her moving truck for all clients within Ohio. Full service and reliable resources for clients. Call or text to 614-440-5174 or direct call to 937-644-3385. Email: movetomarysville@gmail.com

Marysville Ohio 2010 Single Family Home Statistics: The Year In Review

Vicki Owens, ABR, CRS, GRI, SFR (Best Homes Real Estate) — Tue, 28 Dec 2010 09:21:57 -0800

Submitted by Vicki Owens, ABR, CRS, GRI, Best Homes Real Estate

This year has proven to be an interesting one for single family home sales within the limits of our school district. As of 12/28/2010, there are 245 single family homes listed for sale. There are 39 homes indicated as pending sale or in contract. A little over 16%, or 44 of the 289, are indicated as either bank owned (foreclosed homes) or short sale properties (pre-foreclosure). The average days on the market for homes currently listed is 155 with an average list price of $202,516.

Closed and successful sales year to date show an average list price of $167,050 and average selling price of $161,230 with days on the market being 93. Of all 245 sold, 20.4%, or 50, are indicated to be bank owned or short sale properties. 135 of these homes closed by 6/30/2010, in time for the government stimulus offered for home buyers.

In comparison to 2009, the good news is that the average sold price improved a bit in 2010. However, the volume of sold homes declined. In 2009, for the same time periods 1/1-12/28, 301 properties had sold. The average list price was $161,218 and average sold price was $155,717, with days on the market averaging 88.

In comparison to 2008, the good news is that the days on the market improved in 2010. However, the volume of sales declined in 2009 and then again in 2010. In 2008, for the same time periods 1/1-12/28, 312 properties had sold. The average list price was $171,954 and sold price $165,863, with days on the market averaging 107.

It's interesting to note as well that no homes sold over for a price of over $400K in 2009 or 2010. In 2008, 4 homes had selling prices of over $400K with the highest being $635K that had a list price of $699K and was on the market 594 days. The highest price listing sold in 2010 did have a list price of $417,900, however was sold for $355K.

In all price ranges in the last 3 years there has been quite an adjustment compared to 2002-2007. In 2010, 56 fewer homes sold than in 2009 but at a 3.4% higher average selling price. The list price to sold price average remained a steady 96% in all 3 years (meaning that homes that did sell sold within an average of 96% of their listed price).

Experts are predicting that we will continue to see recovery of the market in 2011. Although the volume of sales were lower in 2010, the sold prices were a little higher. In our area, we are looking to some job growth and in 2010 did see a few more employee relocation packages for those owners leaving or moving into the area.

Location, location, location. Our location is just 20 minutes to the Dublin business district, in comparison to Hilliard, Dublin & Powell, area property taxes and average home prices are more affordable, good school & low crime ratings, a smaller population and a fairly easy commute for those wanting to leave the congestion of the larger city. In addition, the availability of the USDA financing program is a plus! It makes sense to many potential home buyers that a move to Marysville is a great decision.

Statistical data deemed reliable but not guaranteed from Columbus MLS for the Marysville Exempted Village School District for dates 1/1-12/28 for years 2010, 2009 & 2008. Vicki Owens, ABR, CRS, GRI, Realtor & Owner of the Best Homes Real Estate Marysville Branch Office at 127 West 5th Street in Marysville has served the Marysville area since 2003. A top ranking agent closing over 16 million in residential real estate transactions assisting both home buyers & sellers within a 30 mile radius of the area. A Marysville resident since 1999. To learn more or discuss your real estate goals, feel free to call her at 937-644-3385 or 614-440-5174, email to movetomarysville@gmail.com or visit her website www.movetomarysville.com for more information.

Marysville Ohio Real Estate Market Conditions September 2010

Vicki Owens, ABR, CRS, GRI, SFR (Best Homes Real Estate) — Tue, 07 Sep 2010 10:30:12 -0700

For 2010, statistics for home sales in the Marysville School district offers a mixed bag of news. Historically, from January 1 until September 7 of 2009, stats show that 210 homes were sold with an average list price of $158047, sale price of $151938 and market days of 95. For the same time period this year in 2010, 189 homes have sold, however the average list price was higher at $165324 with a selling price of $160005 and market days of 89. So less homes have sold, but in less time at a better price. It is undetermined as to whether the increase in price and shorter market days is due to the first time buyer tax credit that expired in April 2010.

As of September 7, there are 297 active listings for sale, 42 in addition to those are indicated as in contract. In years past, inventories within the district rarely indicated they were above 230. The more interesting part of this statistic is that of the 297 active listings, 52 are indicated as bank owned or short sale properties. So 17.5% of the current listings are a result of financial challenges. It is estimated that there are at least this many properties currently unlisted or "shadow" inventory. Homes that may or may not have foreclosed but that are yet to be listed for sale at some point and time. Sheriff's Sales are indicating that twice per month there are 10-20 homes on the docket and most are being re-purchased by the mortgage bank. We are seeing these homes put on to the market as REO or HUD properties at well below market prices months and sometimes even move than a year after the auction. Appraisers try to utilize "like" sales for appraisals for home owners, however, with the influx of foreclosures and challenged sales, this is getting more and more difficult and unfortunately has affected values compared to a few short years ago.

With so much inventory available, it is imperative that an owner that truly wants to get an offer from a qualified buyer in a reasonable amount of time (within 80-120 days) in this market must have the home in excellent condition and be prepared to get a little less for the home than they may have anticipated. With so many choices, home buyers can buy a "fixer upper" in reasonable condition or spend a bit more for a home in move in condition. Some sellers are disappointed that they may counter offer a buyer's offer and find that the buyer may just decide to walk away and go on to their next choice in a home. This happens especially in neighborhoods of production homes that seem to be hit the hardest with foreclosures.

Interest rates for home buyers have continued to come down, however, qualifying for a mortgage loan has become more stringent even within the last few months. This has resulted in a few "accidental landlords" or those who need to move from the area that are able to rent the properties to a buyer who cannot achieve a loan today. Many owners are in hopes of an increase in market values, some are contributing to the monthly payments on the mortgages after rent is collected due to high mortgage payments. This is not always a good option if the home is not maintained well or is damaged during the time a renter is in the home. Sometimes those owners end up with a home to sell in need of repair that they may or may not be able to facilitate in a market that may not have increased in price. Truly a gamble.

With an average list price overall of $205191, and an average selling price of $160005, it indicates that there are some owners "testing" the market to see if they can get an offer on there home and may not necessarily have to make a move. These owners may feel discouraged and have little traffic even though they themselves would like to take advantage of lower home prices to get to their next home. Buyers seem to be waiting on the fence for price reductions and are cautious about paying more than market price for a home. And because it has gotten more difficult for an owner to find a buyer, those owners who would buy a move up or move down property cannot go forward financially until they have a buyer for their current home. Real estate sites like zillow.com that show current market value changes daily seem to be getting a great deal of traffic and more and more smart buyers are seeking value information from county auditor records. Buyers in this market truly have to do their homework and provide what seems to be endless documentation to get approved for a home loan.

Employers do seem to be offering relocation packages again which is good news for the economy. In addition, we are seeing more cash buyers that may have had quite a bit of equity in the home they recently sold or are utilizing other cash resources, such as retirement savings, to purchase a home. Regardless of what the media is stating about the home market, people still have a need to move around, up, down, or want to enjoy the pride and benefits of home ownership. There are many wonderful homes available for today's savvy buyer enjoying the record low interest rates!

Vicki Owens, ABR, CRS, GRI, SFR is the owner/agent of the Marysville Branch office of Andy & Associates, Realtors serving Marysville and areas within a 30 mile radius since 2003. A multimillion dollar producer that comes highly recommended in the area for her track record and knowledge of the area's market. See www.movetomarysville.com and call her at 614-440-5174 or 937-644-3385 for assistance with buying or selling.

Getting Down to It; Today's Real Estate Market

Vicki Owens, ABR, CRS, GRI, SFR (Best Homes Real Estate) — Fri, 21 May 2010 07:17:52 -0700

When it comes to making important, life changing decisions about your home & finances, you need a professional that you can trust to guide you through. Someone you can count on to be there to answer your questions & provide dependable resources to discover and meet your goals. If you are buying your first home, you may not know what questions to ask or what the steps will be to find & successfully close a home sale transaction. If you have never sold a home, or it has been years since you have, you need to know what to expect in the process & what is happening in the market today.

Today's economy has established some real challenges for home owners. In years gone by, it was taken for granted that your home would appreciate in value. After the housing crash in 2008, things really changed. Home values have dropped considerably. For home buyers, this is good news. But for those wanting to move on, or with a true need to sell today, it can be downright scary anticipating the next step. Life changes such as job downsizing or loss, divorce, or medical issues can cause great anxiety & a struggle to make ends meet. With the foreclosure rate at an all time high, people who had even the best credit can be facing very difficult decisions. In times like these, you need a real estate professional who can present your options & viable alternatives. An agent that can follow through working in your best interest & not just put a sign in your yard providing false hope. With 30% ,or more, of home owners in distress, solutions are needed that can be far more complicated that a typical 20th century home sale.

If you have not heard the term "short sale", it is likely you have not turned on the news lately. The government has recently initiated programs that require lenders to provide work out programs for owners in distress. Those in financial hardship can request modification of their loan from their mortgage company. If the terms of the modification cannot work out & the mortgage gets behind a payment or two, the next alternative is selling the home for less than is owed, hence the term "short sale". It indicates "pre-foreclosure" or in other words, selling the home before it is foreclosed on. This is not a simple task & does require the assistance & hard work of an agent dedicated to making the process work for the homeowner. It is not a credit cure. It is a method to allow a home owner to get out from under the pressure of the burden of foreclosure & move on with their lives. Hope is not lost for those that may be more than just a payment or two behind, but the owner must be on board to be a partner in working through the details. There is no shame in standing up & helping yourself move on. There should never be any up front fee to you for this, beware the rescue scams. If it sounds too good to be true, it is. You should seek attorney advise as well.

Yes, these are difficult issues to read about & not those you might expect a real estate person to write about. It is unfortunate that the days of putting a sign in your yard & a fast, simple sale, putting that equity in your pocket to move on have, for now, pretty much become a rare event. If you have been in your home a long time, the nest egg you were anticipating could be a bit disappointing. To compete in the market there may need to be updates to the home to get the price you are seeking. If you have not been in the home longer than 5-6 years or have a second mortgage or equity line, it could be that after expenses to sell you may break even, get a few thousand dollars or, in many cases, are in a position that you would have to bring cash to clear the liens and expenses of selling. If you are in a must sell situation, obviously that can pose a problem. It is unfortunate, but since around 2006, in about 75% of sales, agents are seeing sellers need to bring cash to closing. It is a difficult reality that home owners need to know. Just asking for the bottom line number up front when pricing the home can save a lot of bad surprises later. Home owners deserve to be educated on the process and expected finances right up front. A good agent can provide market comparables that are used by appraisers today in home sales. This market will determine your price & if, or how quickly, you are able to sell your home.

No magic & no amount of fabulous marketing can sell a home that is priced too high for the current market. A tough question for homeowners always seems to be, "what would you be willing to pay for your home in today's market environment?" In addition, buyers face challenges that, just a few years ago, they did not. Credit scores truly need to be around 630 or higher & a down payment & some money saved in the bank will be required. Sounds like a no brainier? But in years past with zero down programs & stated income loans, just about anyone could purchase. That all contributed to the downturn of the market, but also made it much easier for an owner to sell. Now, there are less buyers & many of them are much more educated about home values as well as credit. Negotiating a purchase contract on a home & working through all of the lender requirements on condition & value have never been more challenging. Agents must work together harder than ever before. When one is representing the buyer, the other the seller, in order to get a home successfully from contract to closing is tough. An experienced Realtor with the knowledge to share in working through the many details selling regularly today is not as easy to come by. It is a lot more than just opening doors, going to meetings & sitting in open houses. More than ever, an agent must do their due diligence in performing their fiduciary duties to their clients. In other words, you need an agent that knows their stuff and has the track record to prove it.

Reality is a hard pill to swallow. With the economy & state of the real estate market, reality is a necessity when you have a need to sell or have a desire to take advantage of great prices to achieve a home of your own. The cutting edge word of the day seems to be "simplify". Whether that be to have less expenses, or in knowing the ins and outs of a process that you may only do 2-3 times in your life. Bottom line is, you need to have faith in the person doing the work for you & trust they are going to work in your very best interest. It could be disastrous if you think about having a part time person or "hobbyist" as a dentist, veterinarian or electrician? Why would you trust your most valuable asset or most expensive purchase to anyone that was not a full time, dedicated professional knowing your area?

All of this is just some "food for thought" for those of you having an interest in the real estate market. Regardless of what the media is saying, the American dream of homeownership is still alive, well & living in 2010. The market will make it & is making it through hard times. It will bounce back someday, but few are anticipating we will see the furious pace of buying & fast, high appreciation as in prior years. But people will want a place of their own to call home, to make memories in & take pride in. The cycle will improve in due time & solutions will find there way through to eventually remedy a down market. Improvement is happening, but just not at the pace we all would like to see.

This article submitted by Vicki Owens, ABR, CRS, GRI, SFR, Andy & Associates, Realtors, 127 West 5th Street, Marysville. A Marysville resident since 1999 and serving clients since 2003 as a full time real estate professional. Continuing with sales volume exceeding $16 million in residential sales and one of the areas most recommended Realtors. See www.movetomarysville.com or feel free to call locally 937-644-3385 or email direct and confidentially to vicki_owens@hotmail.com with questions, concerns or suggestions.

Vicki Owens Earns NAR Short Sale & Foreclosure Certification

Vicki Owens, ABR, CRS, GRI, SFR (Best Homes Real Estate) — Fri, 21 May 2010 07:09:45 -0700

Buyers and Sellers Benefit from REALTOR^® Expertise in Distressed Sales

Marysville, Ohio, May 2010 - Vicki Owens with Andy & Associates, Realtors has earned the nationally recognized Short Sales and Foreclosure Resource certification. The National Association of REALTORS^® offers the SFR certification to REALTORS^® who want to help both buyers and sellers navigate these complicated transactions, as demand for professional expertise with distressed sales grows.

According to a recent NAR survey, nearly one-third of all existing homes sold recently were either short sales or foreclosures. For many real estate professionals, short sales and foreclosures are the new "traditional" transaction. REALTORS^® who have earned the SFR certification know how to help sellers maneuver the complexities of short sales as well as help buyers pursue short sale and foreclosure opportunities.

"As leading advocates for homeownership, REALTORS^® believe that any family that loses its home to foreclosure is one family too many, but unfortunately, there are situations in which people just cannot afford to keep their homes, and a foreclosure or a short sale results," said 2009 NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth. "Foreclosures and short sales can offer opportunities for home buyers and benefit the larger community, as well, but it's extremely important to have the help of a real estate professional like a REALTOR^® who has earned the SFR certification for these kinds of purchases."

The certification program includes training on how to qualify sellers for short sales, negotiate with lenders, protect buyers, and limit risk, and provides resources to help REALTORS^® stay current on national and state-specific information as the market for these distressed properties evolves. To earn the SFR certification, REALTORS^Òare required to take one core course in addition to the SFR course and participate in three Webinars. For more information about the SFR certification, visit www.REALTORSFR.org or call 1-877-510-7855.

Call Vicki today as your local Short Sale & Foreclosure Resource in the Marysville area. She has assisted over 25 home owners in the last 2 years to either sell or buy a home in a pre-foreclosure status. In addition she assists buyers with bank owned as well as HUD owned properties. If Vicki can help you, don't hesitate to contact her at 937-644-3385, 614-440-5174 or via email at vicki_owens@hotmail.com.

Since 2003, Vicki has provided services to the area and is highly recommended by the community & local legal professionals to provide professional and confidential service. Since 2005, her branch office of Andy & Associates, Realtors is located at 127 West 5th Street, Marysville in the McCarthy & Cox Financial Advisors Building. Vicki is also credentialed through the National Association of Realtors as a Certified Residential Specialist (CRS) , an Accredited Buyer's Representative (ABR) and is a Graduate of the Realtor Institute (GRI) all that have required a great deal of continuing education in the real estate field. Visit her website at www.movetomarysville.com

Anyone Using Short Sale Commander Software?

Vicki Owens, ABR, CRS, GRI, SFR (Best Homes Real Estate) — Fri, 09 Apr 2010 06:50:26 -0700

I am seeing a lot of hype and testimonial posts on activerain about this software and now CRS is endorsing it. But it looks like the hype I am seeing is from the group making several hundred dollars to sell it to us agents. Is anyone actually using this software and does it deliver what it promises? (please, I would like posts here from agents who actually have used it, not from someone affiliated and trying to market it). Thanks!

More Lease Purchase Pitfalls

Vicki Owens, ABR, CRS, GRI, SFR (Best Homes Real Estate) — Fri, 12 Dec 2008 18:57:32 -0800

Submitted by Vicki Owens, ABR, CRS, GRI, Andy & Associates, Realtors, December 2008

With the market as tough as it has been, I have received yet more calls and emails from people who have had a lot of difficulty with their lease purchase arrangements. It unfortunately seems this always comes after the fact and always reiterates the reason why I always advise against these sort of agreements.

One gal contacted me who was at the end of her 2 year agreement. I spoke to her way back in 2006 when she was contemplating a home purchase. At that time, she had been visiting many open houses and could not seem to get the price that she needed for a house the age, size and quality that she wanted. She went to a For Sale By Owner open house and the owner offered her a lease purchase agreement. Because there was no way at that time she could quality for a mortgage on the home at an asking price of $235,000, she loved the house and the idea she could move right in and signed right up.

She actually called me the week after she had signed the agreement back in 2006. I was familiar with the home which had been on the market for nearly 2 years and listed on and off with a variety of agents to no success. At that time, I commented that the home was priced awfully high for the area compared to others that had recently sold on the block, but welcomed her to the neighborhood. I was happy that she found something that she liked and wished her and her family all the best.

In her call now, two years later, she explained that she was at the end of her lease agreement and now it was time to purchase. She had now been approved for the loan! But the bank, after appraising the house recently, would not approve a loan for the contracted amount. The appraisal was just too low even after she had paid the owner nearly $35,000 (at $1400 a month and a deposit) and the sale price was still what it was when she signed the document 2 years before. She had redecorated, put in carpet, finished a room in the basement. The owner will not lower the price to what the bank would agree to finance for the home, now valued at under $200K due to declines in the market. He cannot afford to. He had 2 mortgages and the rent she pays covers just the first. After expenses to sell, even without a real estate agent, he would have to bring funds to the closing table to clear the liens, he just will not do that.

Now she is struggling to decide to stay and see what happens or go forward to buy another home. And she is actually leaning toward buying another home with the prices and interest rates so low now, but troubled about all that she spent on this one. In the meantime, the homeowner is getting lots of nice work done and gaining equity on the home as he makes payments. Hope he does not decide to take out yet another equity line of credit, or worse, quit making payments. Guess we will see what she decides and how it all shakes out.

Then an email recently. Another gal who signed a lease purchase agreement that was based on the fact that she could be financed once her home (that was on the market in another state) sold. Well, the home has still not sold and her year is up. So she is now moved out from the home that she had intended to purchase. She had put $1200 into new carpet and done some other renovations and redecorating in the home and made all of her monthly payments on time to the owner. In this case, an agent was involved representing the home seller attempting to sell the home with the sale of her current home a contingency to go forward with a true purchase. She did not mention what she was paying per month, but my guess is that she probably had spent $12000 minimum plus some sort of up front deposit/down payment.

Upon her move out, she had a walk thru with the agent that was assisting the seller who stated the home was in good condition and she moved on. Well, low and behold she has a bill at her new address from the owner wanting money for the renovations that he is now doing to get the home sold. My advise was that she needs to have her own attorney look over the agreement that she signed to see if in fact she is responsible and if she has any rights to recovery of the money that she spent. She admitted that she was more focused on the sale of her current home and relocating her family than what she was signing to get into this one.

Circumstances and emotions can be distracting, and a good buyer's agent or real estate attorney can be worth their weight in gold to avoid bad situations that can cost literally thousands for an unsuspecting home buyer. Slow down and get some professional advise BEFORE you sign because "hind site is 20/20".

Copyright 2008 Andy & Associates, Realtors. About the author: Vicki Owens is an experienced real estate agent in the Central Ohio area. Highly trained as an Accredited Buyers Representative, Certified Residential Specialist and Graduate of the Realtor Institute. An award winning multi-million dollar agent for Ohio and the Columbus areas and highly recommended locally. These opinions and experiences shared are from the standpoint of a Realtor and are meant as education for the public. None of the information within her articles or blogs should ever be considered as legal advise, an attorney should always be contacted regarding any real estate transaction. Email her at vicki_owens@hotmail.com and visit her website www.vickihelpsu.com for more blogs, professional assistance and information about her services. Cell direct 614-440-5174.

Getting Ready to Sell in Today's Buyer's Market?

Vicki Owens, ABR, CRS, GRI, SFR (Best Homes Real Estate) — Thu, 11 Dec 2008 07:15:27 -0800

Submitted by Vicki Owens, ABR, CRS, GRI, Andy & Associates, Realtors Marysville

Here it is, another holiday season. If your home is or has been on the market this year without an offer, you are not alone. So what does it take to win over that buyer in today's challenging market?

· See Your Home from the Buyer's Eyes by asking yourself one of the toughest questions that you can. If you were on the market to buy, what would you pay for the home today? Forget your memories there and the money you've spent to maintain or update. What would you honestly pay? Look at it as your product to market, not your home.

· Do Your Homework by looking at what homes comparable to yours, in your neighborhood or vicinity and what they have sold for in the last 90 days. Not last year, not the last appraisal, but what buyers are truly spending now for a home reasonably comparable to yours. (And yes, bank, corporate owned and short sales DO make a difference on where yours will be priced to win)

· Make It Sparkle by doing the hard things that no one wants to do. Wash the windows, pull the weeds, clean the basement, get rid of the clutter and junk. Buyers want a home that they can move right into. You may have to remove the wallpaper, paint, clean carpets, and store away some of your furniture. It needs to show like a model home that the owners have taken great care of.

· Get Quotes if your home needs repair. Take a good look at the roof. If it needs replaced, call a roofer and get a quote. If it needs windows, carpet or flooring, get a quote. Have in writing and face what needs to be done head on.

· Know Your Competition by looking at what is currently out there on the market that buyers will be touring when they come to see yours. Look at how long those homes have been on the market and keep in mind that you want yours to be the one they pick to offer on.

· Face Reality On the State of the Market and know that the prices have declined by as much as 20% in the last 3 years. If you purchased your home in 2004 or 2005, you may have paid more then than the market will bare today. You may only be able to get what you paid for the home or even less. If you have little equity and are not in a position to sell now you may want to wait longer with plans to move on if you can. Pricing your home too high by just a few thousand in this market can lead to disappointment. In fact, if you are ready to move fast, you may want to price a few thousand lower than your competition and showcase your home beautifully. Again, what would you buy??

· Call Some Professionals, have the home inspected by a home inspector for condition, termites or gas leaks. Call an appraiser to have the home appraised at today's fair market value. An appraisal by a qualified home appraiser who does work for the banks should be able to provide an unbiased assessment of your home's value. The appraisal you had done for a refinance or second mortgage a few years ago is not one that would be accurate for resale of your home and is only good for up to maybe 180 days.

· Talk to Several Agents to see what their strategies, track record and experience has been in servicing your area. Find agents that know the area, have experience with today's market, know the pricing, market aggressively and are currently selling homes.

Regardless of the peppered opinions of the press, the American Dream is still alive and being a homeowner is still desirable. Yes, many potential home buyers have been on the fence for quite awhile waiting to see what is happening with the market. They fear paying too much for a home, or worse, facing foreclosure. There are still many able folks out there who want to be the owner of a home but have been jaded by the media.

Keep the faith that this will change. Home prices are low and so are interest rates and they will find when they start their research that this is a great time to be buying. Homes are still selling, banks ARE still lending and buyers are buying, just at a slower pace. Patience is a virtue, but your home can be positioned correctly to sell and win in today's market. Your commitment to be a winner is essential to captivate the right buyer, unfortunately, that may mean some sacrifice for you to succeed in this market.

Vicki Owens is a top selling, full time real estate agent with advanced education, successful track record in our local market that comes highly recommended by clients. For a positioning analysis of your home call her at 937-644-3385. For more information, visit her website at www.movetomarysville.com Listed before and considering trying again? See www.listitagain.com

HUDS, Bank Owned & Short Sales, Oh My!

Vicki Owens, ABR, CRS, GRI, SFR (Best Homes Real Estate) — Sun, 07 Dec 2008 08:27:36 -0800

First & Foremost you need to know as a home buyer that buying one of these repossessed homes take a great deal of PATIENCE. Unfortunately, banks are not in the "instant gratification" business. We are so used to things happening fast. When an offer is made on one of these homes, it has to pass through MANY hands. The banks are overwhelmed with work with so many foreclosures available for sale. Because they are NOT in the real estate business, many systems have not been streamlined to provide timely answers to home buyers.

If you are right for it and do not have a deadline that you must make your move in, you can get great deals but it will take patience on your part, and tenacity on mine. There is risk involved for you financially and a lot of work to be done when offering on a property such as this, and you need to be fully committed to your decision to buy and provide all documentation and sign all waivers needed. It is risky, many of these homes are sold as is with no warranty and no disclosures. Buyers for these homes sign many rights away.

Defining the Difference for you:

A short sale is when the lender is willing to accept less for a home than what is currently owed by the homeowner. Across the country most real estate markets are feeling the pinch. Most sellers who find themselves in this scary position often think their only option is giving the property back to the bank and going into foreclosure. The Short Sale is a far better option for many sellers, but may take a longer time for the bank to make their decisions on what kind of losses they are willing to take. If the home owner has a first and a second mortgage, both have to be negotiated. BUT in most cases, these homes will be in much better condition than the other challenged properties we will visit. SO THEY CAN REALLY BE WORTH THE WAIT FOR A BUYER, and can take as long as 90 days to negotiate and close.

A bank owned home is when the home has been through the foreclosure process completely, it was financed with a conventional loan by the former owners. Chances are this home has sat vacant for some time with no utilities before the bank bought back the home, cleared the title and listed it (most likely from the local Sheriff's auction). Sometimes as long as 12-18 months. Many times they need cleaning and repair. Contrary to popular belief, the banks rarely negotiate a low offer on a home. They list them at what they feel is an aggressive price and will allow them to sit on the market for months before reducing the price. They rarely accept much less than full list price and may or may not pay some of your closing costs.

A VA owned home is when the home has been financed by and repossessed by the Veteran's Administration. VA loans have more lienient guidelines for credit and no private mortgage insurance. They charge an up front fee for insurance on the mortgage when the home is originally sold. This home too typically has sat vacant for many months with no utilities and chances are it is in disrepair. The process of purchase involves a lot of special paperwork that I can acquire for you and response times from VA seems to be less in negotiations. There is some room for price negotiation with VA owned homes. If you are a Veteran, you should ask your lender to compare your VA loan option with others available to see what works best for you.

A HUD owned home is simply a home that was financed with an FHA loan thru the Federal Housing Administration. FHA insured the mortgage and has repossessed the home. It too may have sat for many months with no utilities and be in disrepair. There is an on line bidding process with a formula for successful offers generally below the price listed (unless there are multiple competing bids - however, it is essentially an on line silent auction). You must work with an agent who is registered to do HUD bidding who has a key to let you tour the property. You cannot go on-line and bid on the property yourself, an agent must help you. For FHA buyers there is currently a loan program that offers $100 down payment and up to 3% closing costs paid for the Buyer. However, earnest money as a certified check is required with paperwork that MUST be received by HUD within 48 hours of an accepted bid or the bid is canceled. The sale requirements for obtaining a loan or having cash to buy apply for HUD properties. They may offer escrow money for repairs to those who want to occupy the property and finance thru FHA. HUD homes are not Section 8 housing or offered to those who cannot quality for a mortgage loan. Inspections should be done, HUD however will not pay for repairs as a result of those inspections and the potential buyer must pay for utilities to be turned on for inspections as well as pay for all inspections.

Corporate owned homes are generally homes that an employer has bought from one of their associates so that they could relocate to another area. A relocation company is most likely involved. Many times relo will pay for customary closing costs and repairs needed after inspections for buyers. Utilities are generally left on, the homes for the most part are in good condition and have been inspected and may have had repairs or improvements completed. A "lowball" offer will be considered and generally a response will be received within 10 days or less of the offer. There is also a host of paperwork including liability waivers and property disclosures required stating that the owning company has no legal liability for the home.

Again, buying a home for sale like these can be a GREAT buy for you, but is risky. You should ask your agent about a third party home warranty and be sure to have good home inspectors in for a look. When you apply for a mortgage with your lender, you should ask about how any possible repair escrows would be handled if needed and if they are willing to finance any of this with specific programs. Some homes may be eligible for USDA financing and you should ask your mortgage lender about this type of loan and the property and income requirements as it is one of the few zero down payment options available now heading into 2009.

Copyright 12/2008 by Vicki Owens, ABR, CRS, GRI, Andy & Associates, Realtors. Operating in the Central Ohio real estate market within a 30 mile radius of Marysville (In Union, Frankin, Delaware, Madison, Champaign and Logan counties) Contact Direct: 614-440-5174 website www.vickihelpsu.com This information is provided from the views of a Realtor and is not in any way indicating legal advise to the public. An attorney should be consulted about contracts and legal obligations.

Short Sale or Not to Short Sale

Vicki Owens, ABR, CRS, GRI, SFR (Best Homes Real Estate) — Sun, 07 Dec 2008 07:55:59 -0800

That IS the question. So What Is A "Short Sale" Anyway?

A short sale is when the bank agrees to take less than what they are owed on a mortgage and forgive some of the debt in order to avoid foreclosure. The key is "to avoid foreclosure".

In this 21st Century market, many home owners that purchased their homes anywhere from 2001-2006 have come to find out that their values declined. VERY disappointing when so many were promised appreciation by super charged sales reps, real estate agents and mortgage lenders. But the best thing to do if you can ride out this market is NOT TO MOVE - at least for now. Homes historically are a long term investment. Inflated appreciation during those years was a way of the market, not the representative. Pay your mortgage on time and stop bellyaching that your timing was off and you purchased a home in an up market. You made the decisions, signed the papers and own your home - or at least you pay for a mortgage on the home and the bank holds your deed. It is easy to point fingers are whomever sold you the home, but what is done is done.

Another reason for distress for home owners losing value was the "second mortgage" boom. Home equity lines of credit, consolidation loans that use your home as collatoral - once upon a time these were called "second mortgages" - and they still are. In order to sell your home, your current home MUST be paid off (at least in Ohio). This means that you used up your equity. If you did not have that loan to pay off, you would be taking away that money today in a sale.

When home owners think about making a move, it may come as a big surprise to them that they owe more than they will get on today's market. And there are expenses to sell as well. About 8-15% generally (or to put it simply 8-15 cents on every dollar). So with this discovery and the desire to move for whatever the reason, home owners are getting angry. Angry at the bank, lender, appraisers, Realtors, tax man - whoever. But the only answer now is to look at the whole picture and see if moving on is a good route now.

SO, many are tuning into the web and news to learn about "this short sale thing". And some are even so angry that they go to extremes to not pay their mortgage, wreck their credit and anticipate foreclosure. Anger at market conditions is not a reason to consider short sale. Pay your bills, improve on your home and stay put. This whole "just walk away" hype (if you've seen it) is childish and irresponsible. It's as silly as not making your car payment because gas prices are too high or screaming at the clerk at the mini-mart for the same. As unfortunate as it is, many people are really stretched in their budget now.

It all started somewhere. And yes, some people were misled to believe their monthly payments would be less than they anticipated by ambitious or misinformed sales people. Some ambitious lenders qualified home buyers on the start up lower payments available with special loans and not for the payments they would maximize out at a few years later. Some ambitious lenders provided loans for far more than the homes value with the second mortgage boom. Some ambitious lenders qualified buyers on what they told them they had for income (fudged the numbers) and did not thoroughly check out the real numbers. At the time, no one thought twice about it, the programs were available, the government insisted that lenders have programs for credit challenged potential homeowners and it was common in the business. And everyone wants the American Dream, we all want what we want and we want it now - instant gratification.

The Short Sale IS an option for someone truly in hardship. Whether is was due to one of the above "just plain in over your head" loan reasons, a divorce, job loss, illness - the truth is that when a person gets behind on the mortgage and wants to work it out and save some face and credit the short sale may be the answer. The process IS NOT an easy one, there is no "instant gratification" answer. A short sale is not the "silver bullet" to easily relieve you from your debt. As a consumer, the first step to take when you see truly you cannot pay the mortgage is to call your lender. Ask for the loss mitigation or loan work out department. Please be leary of companies that are charging an up front fee and including the negotiation of your home's short sale in their program to consult or consolidate you out of debt. That is a brand new industry with no regulations - you should consult an attorney to review your rights.

Take out that envelope you have not looked in since you closed on your house and read over your mortgage. See what sort of penalties that you may be facing and what can happen when you are in default on the mortgage loan. Banks do not want your house back! Many times they are now refusing deed in lieu of foreclosures. Ultimately, they would like to see you get up to date and some may re work you loan to make it more affordable if you have not moved out of the home. The foreclosure process for lenders is extremely expensive. And today, they are overwhelmed with requests - be patient in working to reach the right person and ask for a short sale package. If you do not get it in a week, call back again - and get on the horn to some of the best Realtors in your area to see if they will consider taking on the short sale with you.

It takes tenacity and team work between you and your agent to get to the right person at the bank who will help you get the job done. Do you know why you need an agent to help you? Because not only will you need someone to market and sell your home quickly at a very competitive price, but the agent will have to communicate with your lender(s). The agent can help you put the package of paperwork together to prove your case on why the bank should take less than you originally agreed to pay. A hardship letter, net proceeds of the sale, prove market conditions through professional analysis, bringing offers the bank will review and accept with their requirements. A long list and hard work. Many times with larger banks, it can take 6 weeks or longer just for the completed package (which can be a challenge in and of itself) to be assigned to a negotiator to work out the loan.

And just to note too, the agent is taking a risk that they will get a reduced fee paid to them, or not be approved at all, yet with a lot of extra work. It takes a dedicated agent that knows the market, has strong communication skills and what they are doing. Not a job for your friend who just got their real estate license or for a part time agent who has never done a short sale. The bank will be taking a loss, but only if they agree to do it. The bank takes time to look at offers because they have to weigh how much the short sale would possibly save them rather than having the home go to sheriffs auction* repairs and fees to re-sell. You must be honest with your agent it you know that your home is on the way to sherriff's sale. (And if someone promised to pay you for something they were using of yours, you would be reluctant to take less too, wouldn't you?) Keep in mind, "the big bad banker, builder or agent" did not force you into this situation. When you call for help, be kind. You know the old saying "you get more flys with honey".

(*a side note here to buyers on sheriff's sales - generally the bank will start the bid and send reps to buy the homes back to acquire the deed. The homes are not open to look at and inspect to buyers or Realtors, are generally in awful condition from sitting vacant for months or even years and can have liens that must be paid by the buyer - a good deal for investors and handymen with financial resources, but not in "move in condition" to live in right away as a general rule. And if you win the bid, you must have 10% down and a financial plan to pay on auction day)

Something else you should know is that you, the former owner, can be taxed as income on the amount that the bank forgives you. So as an example, if your $180K mortgaged house sells for $160 and their are selling expenses too, you may end up taxed on as much as $30K or more. The government is trying to work through some programs that may provide relief for this, but so far, not a definite unlimited yes. You may owe the IRS when you file your taxes that year - and that is something you most certainly do not want to tangle with. Be sure at your closing to ask the bank, title rep and a tax professional about this. Surprises are not good when you are trying to bounce back financially - and I am sure you have had your share of "bad surprises" if you are reading this.

If you have a second mortgage or equity line, this complicates matters more and essentially you and your agent must do the whole process twice. The second mortgage lender may or may not forgive the loan and you may be left having to finance your debt into an unsecured loan (a signature loan) if you have the credit and resources to do it. If you do not have the resources to do that, the second lien holder can stop the sale by not forgiving the loan. They have to be convinced too on the idea this is a better answer for them than foreclosure. And your credit will suffer, but not like a foreclosure or bankruptcy on your credit history. With lessons learned, you can be back on track in as little as 2 years as long as you pay your bills on time and watch your spending.

Sounds like a lot of work and trouble, doesn't it? But consider the alternative. If you are foreclosed on, with the recent tightening of lender requirements, it could be 10 years before you are eligible to buy another home. Do you know where you will be in 3 years, 5, 7, 10 years? You can have judgments and other liens against you for years too. Doesn't it make sense to put yourself to work at something that will get you out of that dark cloud and let you move on with your life sooner? Isn't it a shame that it is so much harder to get out of it than it was to get in? Such is life. And I know from working for years with many people that good work ethic and pride does still exist here. Taking a temporary ego hit beats every time a decade of getting denied for credit and financial worry.

For buyers in this market the short sale can be a great opportunity. HOWEVER, it will take patience on your part as a home buyer for the process to work. A short sale IS NOT for someone that needs a place to live in 30 to 45 days, it is generally NOT FAST. Homes that are short saled are sometimes some of the very best buys because they are generally in move in condition and priced below market. The home owners have loved their homes, are sad to go, but thankful for qualified buyers willing to wait while the details are worked out with their bank. Buyers agents too must know what to expect, not over promise and bring the buyer's offer with a preapproval from a mortgage lender. The offer cannot be contingent on the sale of a buyers current home. Much of the waiting will be out of control of the seller or their agent. And sometimes a buyer's agent may have to share in the income loss by sacrificing some of their fee as well. So it also takes a dedicated, experienced buyers agent and understanding home buyers for this to work. Short sales are not a playground for ruthless negotiations and demanding time constraints. The selling bank will really be the one in charge and all parties will have to be willing to let that happen and go with the flow to end with a successful closing.

And one more thing. . .in today's market, when you are a seller, whether you are fortunate to take away some equity, can come up with your own money to clear the debt OR have help from the bank with a short sale package. . .you cannot take personally low offers on your property. Being offended by low offers is self defeating and will not lead you to meet your goals. You need to buck up and get over that and counter offer as reasonably as you possibly can. Especially with short sales, you do not know what the bank will accept and until you get their go ahead after the extensive package and contracts are presented. Remember, with short sale you are getting assistance and just barely escaping foreclosure if you are fortunate enough to get the transaction completed. Buyers WILL see short sale as desperation to sell. You MUST put your personal feelings aside and cooperate as a team member with agents and the buyer to get the job done. This will include maintaining the property, including the expense of utilities, whether you are living there or not until the sale process is complete.

Hopefully I have shed some light for you on what the process is, is not, and some details on how it works. There is a lot of gray area, no monitored regulations on the banks to promptly respond, and can be surprises for even the most experienced agent. I am no way offering this information as an attorney or member of the legal profession, but from the perspective of a Realtor. Again, you should get the assistance of a good attorney to answer your questions if you feel a short sale is for you.

This information was put together as a reply to many of the questions that I get daily. If I can help you within a 30 mile radius of the Marysville, Ohio area, feel free to call me at 937-644-3385 or 614-440-5174 or send an email to me at vicki_owens@hotmail.com All information is kept confidential and there is no need to feel embarrassed or alone. This is the state of the real estate market and a natural economic correction. You are definitely NOT alone, should set the ego and emotions aside, get the bull by the horns and take some action.

Copyright 12/2008 By Vicki E Owens, ABR, CRS, GRI, Andy & Associates Realtors. For more information about my services, visit my sites at www.vickihelpsu.com, www.listitagain.com and www.movetomarysville.com Direct: 614-440-5174

Lease Purchase Pitfalls

Vicki Owens, ABR, CRS, GRI, SFR (Best Homes Real Estate) — Sun, 30 Nov 2008 08:10:12 -0800

Submitted by Vicki Owens, ABR, GRI, Andy & Associates, Realtors

Allow me to begin with a story: Mary Jane and Doug are really nice people. They have 3 children and have relocated into a new area for Doug's work nearly 2 years ago. When they moved here, they had a home to sell back home and decided it would be best to rent an apartment until their home sold. There home did sell about 4 months ago and they have a little money in the bank saved for a down payment.

Over the coarse of the year, they had to trade both of their older cars for newer ones because they had a longer commute to work and their vehicles were starting to show a lot of wear and costing a lot for repair. In addition, 5 months ago, Mary Jane got a new job and used some of their credit cards so that she could have a new wardrobe for her improved position with the employer. Then Christmas came and went and they charged some toys for the little ones and gifts for their families.

About a year ago, they began looking to buy their new home. They found a home that they absolutely loved. They wanted to make an offer and went to talk to some mortgage lenders to find out what their payments would be. After meeting with several lenders who had looked at their credit, they realized that their credit scores were lower than they expected. The debt they had taken on and a few late payments on those credit card bills had put them in a position that they could not quite afford the house they loved. Houses in a lower price range that were available just were not large enough for their family or were in such poor condition that they could not move right in. Both working, they just didn't have the time, skill or cash to rehab a home. Needless to say, they were very disappointed. They would have to wait awhile longer and work on their credit.

While driving around on a Sunday afternoon, they spotted a beautiful home with a sign that stated "For Sale By Owner Lease/Purchase Available Bad Credit OK". They called the number on the sign and the owner came and showed them the home. It was just stunning. The owner, Jack, had recently divorced and was struggling with his home improvement business and could no longer afford to live in the home. Mary Jane and Doug knew that this was much more home than they would be able to afford to buy outright, and signed a lease purchase agreement with the owner feeling they were getting a great deal. They could paint, improve the home, do anything they wanted to do because they had a purchase agreement with Jack.

They used all but $1000 of their savings to give the owner a $5000 down payment to move in. They agreed to pay Jack $1700 a month for the home. They moved in and their was plenty of room for the kids, their things and Doug even bought the new big screen TV he's wanted since they moved to town. Mary Jane got some beautiful light fixtures that they installed in the home and decorated the kids rooms so cute. Oh how they just loved this house!!

About 6 months after moving in, the sump pump in the finished basement stopped working during heavy rains. Doug opened an account at the home depot, and replaced the sump pump, the damaged carpet and trim and ended up with quite a bill to pay for the repairs.

In the 7th month, Mary Jane noticed they were starting to get urgent looking mail for the owner of the home, Jack. She called him, but had a hard time reaching him as his cell phone was disconnected. When Jack came to collect their payment for month 8, 3 weeks later, he was quite distressed and told the two that he had been unable to pay the mortgage for several months. His divorce was finalized and he had big child support payments now. He explained, nearly in tears, that the bank may foreclose on the home and they will have to move out. Jack apologized profusely to Mary Jane and Doug and drove away.

Stunned, Mary Jane did not know what to do. She was in a panic. She made a call to her real estate agent that they had dealt with when they were looking for homes previously and asked her what to do. The agent advised Mary Jane to contact an attorney. Doug was just plain mad. They had paid and paid and even had debt on the home, done all of these repairs and improvements, and for no fault of their own had to move out? Mary Jane called Jack's mortgage company to see if maybe they could assume toe loan or make up payments, and found out that even the property taxes were behind and that and homeowners insurance needed to be caught up. With late fees all to the tune of over $20K!! They knew there was no way a mortgage lender would approve them for a loan on this home, it was worth way more than they ever shopped for. They started to look for places to move.

And if you are on the edge of your seat to find out what happened. . .well, it's a fictional story, but points out what a major pitfall can be to the lease purchase option. What if Mary Jane and Doug just decided one day they didn't really like the house enough to buy it? If they were leasing from an investor or builder, the builder may say fine, move right out. And the owner of the home may never have had any true intention of selling, just renting with a big deposit up front, knowing they would have to go in and clean it up to do it all again. Again, Mary Jane and Doug are vulnerable as they have no way to get a refund of the down payment or for any improvements they added to the home without paying attorneys and going to court. .

In lease purchase you don't own it until the deed is in your name. Most of the time, at least here in Ohio, this is when the final payment is made to the owner, whether that be with a mortgage loan up the road or actually paying him for years. Paying lease payments to Jack doesn't show positive on your credit, does not show that you own anything and you cannot take out an equity line of credit or gain tax deductions benefits on a house you don't own.

I understand folks with not so good credit who are just so anxious to be in a house they will agree to almost anything. Many times, I've helped people be patient and work through those credit issues, sometimes for years or through several loan resources, and to not be as emotional about what is essentially a huge business decision for your personal finances. With us being such an instant gratification society, so many people who have bumps in their credit do not want to take the time to untangle the knots and make it better. I know it's hard, yes, it takes effort. It is so wise to calm down, get a reality check and find a resource you can trust to help resolve things. Whether that be with your banker or financial advisor. You need to take this dream seriously! Otherwise, you are open season to expensive lenders, hungry vendors and opportunists who see you as another way to make a quick buck and not give it a second thought about your well being. The old saying "if it sounds too good to be true, it probably is" applies here.

Also, something else to think about is the recent falling values of homes. I get many calls from folks who have been in that lease now for 12-24 months and are finding that the price they committed to is too high. The appraiser comes in and the home does not appraise for what they have it in contract for. Sometimes the owner is extending the lease, sometimes the price is renegotiated, but many times the folks holding the lease move out and look for something else, losing anything they paid or updated in the property.

And yes, I've had some people who contact and question me about lease purchase be absolutely nasty to me treating me as the enemy when I explain I do not accommodate these types of contracts and suggest resolving the credit problems and getting a mortgage. Well, you asked and I answered, sorry you did not like the answer. If you want someone to take advantage of your vulnerability, not care, and not discuss the options and pitfalls with you, you've called the wrong agent.

Maybe I "shoot myself in the foot" by not doing all I can to take advantage of people and hooking them into something that they cannot afford, but I have to sleep nights folks. They will find someone else to "help" them I am sure with just a few more calls. And we wonder why there are so many foreclosures? I want my clients to know that I have their best interest in mind and feel comfortable passing my name along to a friend, co-worker, neighbor or family member as an agent that has patience, does the right thing and keeps her client's best interest in mind. That's the backbone of my business. So far, so good. Thanks for reading.

Vicki Owens is a top producing real estate agent in the central Ohio area offering both buyers and sellers top of the line, highly recommended, service for the past 5 years running. For more information about the author, Vicki Owens, ABR, CRS, GRI, and services offered from her with Andy & Associates, Realtors, visit her website www.vickihelpsu.com. Feel free to email vicki_owens@hotmail.com with questions, comments and your experiences to vicki and see her website blog at http://www.vickihelpsu.com/blogs/frequentlyaskedquestions/privaterss.aspx or call 937-644-3385 or 614-440-5174.