Sherman's Blog

Sherman Smith Successful Short Sale Secrets (Secret #5)

Sherman Smith (Sherman Smith & Associates) — Sat, 06 Jun 2009 17:37:20 -0500

Did Your Lender Get Your Package?

All of the pages? Are you sure? Several lenders have limits on how many pages their faxes will accept. They also contradict themselves in a way. They ask for a hardship letter, pay stubs, tax returns the offer the counter, financial statements, BPO etc (see Secret #3) but at the same time they limit the number of pages that they can receive. (Citi Mortgage 61 pages, GMAC 116 pages) So what do you do if you have more pages than they can accept? You need to break down your package into smaller packages and mark them 1 of 3, 2 of 3, 3 of 3 always referencing the loan number.

What if the fax receipt shows they received all pages? Within 24 hours you want to call and check to see if they received the package and (this is important) HOW MAMY PAGES DID YOU RECEIVE? If less then you sent you need to figure out which ones are missing.

How do I know this? I have closed over 120 short sales and you learn as you go. So remember how many pages did they receive?! Until the next secret.

Sherman Smith

Sherman Smith & Associates

Sherman@shermansmith.com

(714) 544-5445

Sherman Smith Successful Short Sale Secrets (Secret #4)

Sherman Smith (Sherman Smith & Associates) — Sat, 06 Jun 2009 17:32:36 -0500

Quick Approvals On A Short Sale!

Approval delays are caused by three problems! #1 A bad short sale package! (see Secret #3) This is the biggest problem. Also don't send ANYTHING to the lender until you have EVERYTHING! If you trickle things in it slows down the process. Every time something is missing it can add a week or two to the approval.

#2 Price. Lenders will accept between 93-85% of the REAL VALUE. Lenders aren't stupid and you can't steal the property. Only submit REAL offers at acceptable prices. If the offer comes in low, counter it! This shows the lender that you have their interest at heart. Even if the offer is a good offer but not at full price counter the offer. If the buyer won't come up in price you can tell them you will you will submit the lower price but the lender can you tried. This is important to getting the offer approved at the price you submitted.

#3 FAKE OFFERS. A lot of agents submit FAKE offers to see what the lender will take. You know the Real Value of the property (or you should if you have been in this business very long) so only submit offers that fit within the 93-85% range. Every lender could speed up their process if all of the fake offers were out of their systems. Plus it is not honest or morally right.

I have closed 120 short sales an get approvals like this: SLS-7 days, EMC- 9 days, ASC-12 days, Citi Mortgage 14-days, Wells Fargo-14 days, Homecommings-28 Days, Provident Funding-30days etc. etc. With the exception to WAMU/Chase & Countrywide/BofA none of my short sale approvals take more than 45 days, most less than 30 days.

Now here is the big surprise to most agent: ALL of the 120 were approved at the price I submitted them at!

How do I know this? I have closed over 120 short sales and you learn as you go. So remember the package is the key! Until the next secret.

Sherman Smith

Sherman Smith & Associates

Sherman@shermansmith.com

(714) 544-5445

Sherman Smith Successful Short Sale Secrets (Secret #3)

Sherman Smith (Sherman Smith & Associates) — Sat, 06 Jun 2009 17:17:03 -0500

Order! Order In The Court!

Order just makes things work better. In all parts of life order is important. Especially with a Short Sale Package. This is the key to a quick approval. (See Secret #4 for Quick Approval) Your package needs to be neat, clean and in the proper order. Think of a Short Sale Package as an un-approval loan package. You want to prove that your client is not capable of continuing to make his payments. Your package should contain the following:

Table of Contents

Short Payoff & Proposal Letter

Authorization of Borrower/Seller

Borrower/Seller Hardship Letter

Copy of 1st Mortgage Payment

Copy of 2nd Mortgage Payment (if any)

Copy of HOA Monthly Statement (if any)

Copy of Paid or Delinquent Taxes

Affidavit of Arms Length Transaction

Financial information Worksheet

Last 2 Employment Pay Stubs

Profit & Loss if Self Employed

Last 2 months Bank Statements

Last 2 years Tax Returns

IRS Form 4506-T Request for Transcript

Copy of Listing Agreement

Copy of MLS Print Out

Copy of Offer w/Counters

Buyers Pre-Approval Letter

Buyers Proof of Funds

Copy of Estimated HUD1

CMA or BPO Supporting the Price

Supporting Documentation (ie. Pictures)

I can hear it now... Not every lender requires all of that! Your right! Now tell me which ones do and which ones don't! Exactly my point. Since you don't know, send EVERY lender the same thing and they can throw away what they don't need. This is how you avoid delays. (See Secret #4)

How do I know this? I have closed over 120 short sales and you learn as you go. So remember Order! Until the next secret.

Sherman Smith

Sherman Smith & Associates

Sherman@shermansmith.com

(714) 544-5445

Sherman Smith Successful Short Sale Secrets (Secret #2)

Sherman Smith (Sherman Smith & Associates) — Sat, 06 Jun 2009 16:32:55 -0500

The Loan Number!

What is the big deal about the loan number? It is very important. First and foremost you want to see the most recent mortgage statement to obtain the loan number. The reason for this is with all of the new bank takeovers (ie. Countrywide-B of A, WAMU-Chase, Wachovia-Wells Fargo, etc) some loan numbers are changing. Some are adding digits to the loan number and others are changing all together.

Next, EVERYTHING the lender does is referenced by the loan number. That being the case, everything you send the lender should have the loan number on it. Yes everything, the sellers pay stubs, tax returns, the offer, counter, BPO etc. Remember if there are two loans on the property there are two different loan numbers so don't get them mixed up. (See Secret #10 for a time saving trick on changing loan numbers on documents)

How do I know this? I have closed over 120 short sales and you learn as you go. So remember the loan number! Until the next secret.

Sherman Smith

Sherman Smith & Associates

Sherman@shermansmith.com

(714) 544-5445

Sherman Smith Successful Short Sale Secrets (Secret #1)

Sherman Smith (Sherman Smith & Associates) — Fri, 05 Jun 2009 20:42:12 -0500

Do You Know How To Slow Down Your Short Sale Approval!

Many agents do it all the time and don't know that it is happening. Do Not Mail, FedEx, or Hand Deliver your Short Sale Package! I do not care how pretty it is or how much stuff you have in it, FAX it! That right fax it to the lender. Because of the volume that the lenders are doing they are utilizing high speed data imagining systems. This system takes the fax and converts it to a PDF then assigns the file to the correct loan number (loan numbers secret#2). If you mail the package it gets sent to the scanning department and someone else is going to fax your file to the imagining system. (I will bet you they don't care that much about keeping your file in order.) (order that's Secret #3)

I can hear it now, but my file is 128 pages! So! I have faxed short sale packages as large as 259 pages. This is how you get short sales closed Fast.

How do I know this? I have closed over 120 short sales and you learn as you go. So Fax them in! Until the next secret.

Sherman Smith

Sherman Smith & Associates

Sherman@shermansmith.com

(714) 544-5445

Attention ALL Lenders and Financial Planners!

Sherman Smith (Sherman Smith & Associates) — Tue, 08 Apr 2008 22:25:08 -0500

The Define Benefit Plan Dilemma

For those of you who know what a Define Benefit Plan is I need your help.

I have a client who wants to take $500,000 from his Define Benefit plan and buy 2 properties. He will spend $500,000 for each property and put 50% down in cash on each. A Define Benefit Plan will allow encumbered real estate in the plan as long as the purchase note and trust deed is a non-recourse note. The problem I am having is I can not find a lender who will loan on a Define Benefit Plan. I have found several who will loan on an IRA but not a Define Benefit Plan (DBP).

Here is the criteria:

No paperwork (none! Nada! Any!) can be in my clients name
The vesting and purchase agreement will be: "The Trust Company, Custodian for, John & Mary Doe Define Benefit Plan, Account #4567890"
All paperwork will be signed by the Custodian
No money from the client can be deposited into escrow (not even the deposit)
The deposit must come from the DBP
All loan documents must be signed by the Custodian
All future bills and payments will be made by the Custodian
After the purchase there must be 20% of the purchase price left in the DBP

As you can see this is a very good loan but I can not find anyone who will make the loan. I am seeking your help for a lender who is making this type of loan.

Sherman Smith

Sherman Smith & Associates

(714) 544-5445

Sherman@shermansmith.com

Short Sale Suicide...and How To Prevent It!

Sherman Smith (Sherman Smith & Associates) — Thu, 27 Dec 2007 01:57:54 -0600

Short Sale Suicide...and How To Prevent It!

Also How To Determine If A Listing Agent Is Committing Short Sale Suicide...

by Sherman Smith

I am about to upset some of my fellow agents but they need to hear this. However before I do, I want to give you my qualifications in regards to short sales.

I have been selling real estate in Orange County, California since 1978. I have my own brokerage company named, Sherman Smith & Associates, which I founded in 1989. At the time of writing this I have completed 105 closed short sales with a large variety of banks, savings & loans, finance companies, insurance companies and private note holders. I have negotiated as little as a $15,000 loss and as much as a $386,000 loss on a multiple unit building. Through these transactions I have learned what works and what does not.

With no further introductions here goes the upsetting information!

It is no wonder that 50% of all short sales do not close. It is because of the listing agents! Yes, the listing agent! They have no clue what they are doing; they have taken one of those short sale seminars given by someone who has never completed a short sale. I have seen these seminars/workshops that cost anywhere from $49.00 to $2,400.00. I have to say I could tell you everything you would ever need to know about a short sale in about 3 hours.

Why do I blame the listing agent? Well, let me tell you what they are not doing and what they are doing wrong. In other words, how they are committing short sale suicide and killing their own sale.

Seller does not qualify for a short sale:

The Numero Uno most important part of the short sale is: Does the seller qualify for a short sale? Is there a legitimate hardship? What is the reason the seller can't continue making the payments or why do they have to sell? This is the make-it or break-it part of the short sale. Don't waste your time if the seller does not have a true hardship. There is another way called "Hardball" if the seller does not have a hardship but that is only for experienced short sale agents. (Well talk about that another day.)

More than one seller on title:

If there is more than one seller on the property they better both have a hardship. If one has good income, other properties, etc and the other one has a hardship the short sale is not going to fly. Don't waste your time unless the strong one is willing to contribute to the loss.

All Payments are current: (Seller does not want a late on their credit report)

If the seller is not behind in their payments, the lender has no reason to expect that the seller will default. Your seller MUST be behind in their payments to get the lenders attention. Ask your seller this question: "If push comes to shove, will you let the property go to foreclosure"? If their answer is "No" they are not serious and don't waste your time on the short sale because it probably will not happen.

Listing the property with less than 45 days to the Trust Deed Sale:

The seller is in foreclosure and only has three weeks before the bank takes the property. There is no time to get things done unless you have a cash buyer for the property. Lenders will not hold up the foreclosure so you can find a buyer. I make it a policy that I need a minimum of 60 days but you can still do it in 45.

Pricing the property too low:

The property's real value is $450,000 in this market. You list the property at $350,000 to attract buyers and figure the bank can counter the price. Don't do that! List the property at $465,000 then after two or three weeks lower the price to $450,000 (given you have time). After another three weeks lower the price to $435,000 and so on. This way you are showing the bank that you are trying to get them the most money you can for this property. As you get closer to the Trust Deed sale, you must get more aggressive with the price but at the same time, you need to show the bank you are looking out for their best interest too.

Offering a selling agent commission above 3%:

I see this one all the time. As a matter of fact, this past week I saw a listing with an 8% commission to the selling agent. In the remarks it said "commission subject to the lenders approval and split 50/50". There is not a lender out there who will let you pay a selling agent anything above 3% so do not try to fool anyone with the exaggerated commissions. If you see it on a listing don't get your hopes up because it won't happen.

Telling the selling agent that their commission is subject to the banks approval:

Who wants to show a property to their client without knowing what they are getting paid? No one; you see it on almost 95% of all short sales. As I stated before, I closed 105 short sales. Of the 105, two or three sales I received less than 5% total commission. I would be willing to bet that on 75% I received 6% total commission and the balance I received something between 5 and 6%. Since I wanted other agents to show my short sale listings I promised them a full non-negotiated 3% no matter what I received. Bare in mind, I almost always received 5 to 6% and agents were not afraid to show my listings. If agents do not show your listings it won't get sold!

Forgetting who is your client:

Your client is NOT the bank! Your fiduciary relationship is with the seller. Yes, the bank must approve the shortage but your fiduciary relationship is not with the bank. You must look out for the best interest of your seller. Sometimes that means going against the wishes of the bank; I will explain below (See No Doc Loan (Liar loan) vs Tax Returns).

Offering to pay closing cost or carpet allowance:

Don't offer to pay closing cost or a painting allowance. The bank will not allow that cost. They won't allow you to pay anything above title, escrow, recording, back taxes and association dues. They won't even pay for repairs or a home warranty, so don't offer!

Not countering the offer:

You receive an offer on the property. The buyer has low balled the price, wants a long escrow, and wants the seller to pay $10,000 of the buyers closing cost. What do you do? You meet with your client (The Seller) and draft a counter offer eliminating the things you know the lender will not take and try to get the best price you can from that buyer. When you think you have done the best you can, you then send the offer along with the counters to the bank. The bank now can see that you have tried your best to protect their interest.

Sending more than one offer to the bank:

You receive more than one offer on the property. What do you do? NEVER! NEVER! NEVER! Send more than one offer to the bank at a time. Do I have to repeat myself? NEVER! You meet with your client and either counter both offers to get the best one or you pick one offer and send it to the bank. You have no obligation to present all offers to the bank. This only confuses the bank and slows the process. You have already countered the offers and sent the best one anyway. If another offer comes in while you have one at the bank it will become a backup offer in case the first offer goes away; but do not send it to the bank. Keep it until you know the status of the first offer.

Not sending ALL the required paper work at one time:

Most banks will not approve the short sale with out an offer. Some will, and by all means, do so, if you can. It is so much easier if they will start the process without an offer. However, since most banks will not, make sure that your client completes the documentation prior to you receiving an offer on the property. This will enable you to process the short sale faster. The bank will have a list of their required documentation. Be sure that you have it ALL and ready to go before you get the offer; when you send it to the bank make sure you have everything that they require. If you piece meal it, the short sale will be delayed or worst yet reject.

Organize your required paper work:

I would suggest that you have your lender help you put it in a file just like they were submitting it for a loan approval to an underwriter. The first time I did that the processor called me to tell me that it was so organized that she was going to process it right now! Now not all lenders will do that but it does help and it gets noticed because no other agents are doing that.

Not making a copy of EVERYTHING you send to the bank:

The bank will loose your complete package or at least part of it. Be sure that nothing is sent to the bank that you do not have a copy of. I can't tell you why but I can tell you that it will happen.

No Doc Loan (Liar loan) vs Tax Returns:

This one is delicate. Did your client buy this property with a "No Doc Loan"? If so, you may have a problem if the lender is requiring tax returns for the short sale and they don't agree with the original loan docs. I am not an attorney and don't give legal advice however this could appear to the lender as a little fraudulent (like being a little pregnant). This is where you have to advise your client to seek legal advice of refuse to supply the tax returns to the lender. This makes the short sale harder but not impossible.

Don't take No as a final answer:

Don't take a turn down as the final answer. Some lenders turn you down to see what the seller will do. Will the seller resume with their payments, make a contribution to the loss? There is always a reason to go back to the lender for another try. Don't forget the old saying "Threes a charm".

The Buyers Agent and Short Sales

Now I have told you what to do if you are the listing agent, but what do you do if you have a buyer who is interested in a listed property that is a short sale? Well first off, I try not to show any short sale listings that I have not talked to the listing agent first. Here is what I want to know:

Do you have an approval from the bank?
Do you currently have any offers on the property? If yes, how many and did you send them all to the lender. If there are offers and they sent more than one to the bank, forget the property.
Is there a true hardship and what is the hardship? If there is no real hardship forget the property.
How many owners are on title? If more than one are they all in a true hardship? If not forget the property.
How many short sales have you closed? If very few offer to help or do the short sale for them. It is probably the only way it will close anyway.
How many lenders on the property? Is there any equity for the second or third? If not how will you get them off the property? If no answer, forget the property.
Have they been in contact with the banks? If so what has the bank said? If not why? Consider forgetting the property.
Does the seller have all of the banks required documentation? If not things will be delayed.
If you were to receive my offer and another offer at the same time would you send them both to the bank? If yes forget the property.
Last but not least ask "What do you think the chances of getting this through are"? If the listing agent says 50% or less, consider forgetting the property. They have no faith in what they are doing.

Now you can see why 50% of all short sales fail to close. It is the listing agents fault for not doing their homework.

Notes: I use bank and lender synonymous with all type of lending institutions. The information here is not carved in stone. It is in generalities as to how short sales are done and yes there are exceptions to every situation. This is a guideline as to how to not waste your time on deals that can't be done.

Sherman Smith

Sherman Smith & Associates

1173 Irvine Blvd

Tustin, CA 92780

(714) 544-5445

Sherman@shermansmith.com

Short Sale Suicide...and How To Prevent It! (Part Two)

Sherman Smith (Sherman Smith & Associates) — Thu, 27 Dec 2007 00:11:51 -0600

Short Sale Suicide...and How To Prevent It!

Also How To Determine If A Listing Agent Is Committing Short Sale Suicide...

A Two Part Series Presented by Sherman Smith

Part Two

The Buyers Agent and Short Sales

Do you have an approval from the bank?
Do you currently have any offers on the property? If yes, how many and did you send them all to the lender. If there are offers and they sent more than one to the bank, forget the property.
Is there a true hardship and what is the hardship? If there is no real hardship forget the property.
How many owners are on title? If more than one are they all in a true hardship? If not forget the property.
How many short sales have you closed? If very few offer to help or do the short sale for them. It is probably the only way it will close anyway.
How many lenders on the property? Is there any equity for the second or third? If not how will you get them off the property? If no answer, forget the property.
Have they been in contact with the banks? If so what has the bank said? If not why? Consider forgetting the property.
Does the seller have all of the banks required documentation? If not things will be delayed.
If you were to receive my offer and another offer at the same time would you send them both to the bank? If yes forget the property.
Last but not least ask "What do you think the chances of getting this through are"? If the listing agent says 50% or less, consider forgetting the property. They have no faith in what they are doing.

Now you can see why 50% of all short sales fail to close. It is the listing agents fault for not doing their homework.

Sherman Smith

Sherman Smith & Associates

1173 Irvine Blvd Tustin, CA

(714) 544-5445

Sherman@shermansmith.com

www.shermansmith.com

READ PART ONE CLICK HERE

Short Sale Suicide...and How To Prevent It! (part One)

Sherman Smith (Sherman Smith & Associates) — Wed, 26 Dec 2007 23:59:41 -0600

Short Sale Suicide...and How To Prevent It!

Also How To Determine If A Listing Agent Is Committing Short Sale Suicide...

A Two Part Series Presented by Sherman Smith

Part One

I am about to upset some of my fellow agents but they need to hear this. However before I do, I want to give you my qualifications in regards to short sales.

With no further introductions here goes the upsetting information!

Why do I blame the listing agent? Well, let me tell you what they are not doing and what they are doing wrong. In other words, how they are committing short sale suicide and killing their own sale.

Seller does not qualify for a short sale:

More than one seller on title:

All Payments are current: (Seller does not want a late on their credit report)

Listing the property with less than 45 days to the Trust Deed Sale:

Pricing the property too low:

Offering a selling agent commission above 3%:

Telling the selling agent that their commission is subject to the banks approval:

Forgetting who is your client:

Offering to pay closing cost or carpet allowance:

Not countering the offer:

Sending more than one offer to the bank:

Not sending ALL the required paper work at one time:

Organize your required paper work:

Not making a copy of EVERYTHING you send to the bank:

The bank will loose your complete package or at least part of it. Be sure that nothing is sent to the bank that you do not have a copy of. I can't tell you why but I can tell you that it will happen.

No Doc Loan (Liar loan) vs Tax Returns:

Don't take No as a final answer:

Sherman Smith

Sherman Smith & Associates

1173 Irvine Blvd

Tustin, CA 92780

(714) 544-5445

Sherman@shermansmith.com

http://www.shermansmith.com/

READ PART TWO CLICK HERE

The IRS Forgives You!

Sherman Smith (Sherman Smith & Associates) — Fri, 21 Dec 2007 14:00:19 -0600

President Bush signed into law today a new measure giving tax breaks to homeowners who have mortgage debt forgiven through a short sale or foreclosure. The current law states that the debt forgiven by a lender, such as for short sales and foreclosure, were generally taxable to the borrower as debt forgiven income. With the passage of the Mortgage Forgiveness Debt Relief Act of 2007, a taxpayer does not have to pay federal income tax on debt forgiven for a loan secured by a qualified principal residence.

This tax break applies to debts forgiven from January 1, 2007 to December 31, 2009. Qualified principal residence indebtedness is debt incurred through acquiring, constructing, or substantially improving the residence (up to $2 million for refinances).

For purposes of calculating capital gains, any debts forgiven excluded from income under the new law must be subtracted from the basis of the taxpayer's principal residence (but not below zero). However, taxpayers may generally exclude from capital gains income up to $250,000 (or $500,000 for married couples filing jointly) for properties owned and used as their principal residence for at least two of the last five years.

This is great news for the wave of homeowners who are facing a short sale or foreclosure because of the credit crisis. However there are other issues to deal with if this loan is a FHA or VA loan. With FHA loans you will never be able to obtain another FHA loan again unless you pay back the loss on you loan. With a VA loan you will never be able to obtain another VA loan again and you will loose ALL of your VA benefits unless you pay back the loss on your VA loan. The Good News Is! The IRS Forgives You!

Sherman Smith
Sherman Smith & Associates
www.shermansmith.com

Realtors® Make Too Much Money says the Antitrust Division of the Department of Justice

Sherman Smith (Sherman Smith & Associates) — Thu, 18 Oct 2007 21:55:12 -0500

Excerpt From CAR

NEW Dept Of Justice WEB SITE EXAMINES COMPETITION IN BROKERAGE SECTOR
The Antitrust Division of the U.S. Dept. of Justice launched a new Web site this week aimed at educating consumers about the benefits of competition within the real estate brokerage sector. The site, which is drawing heavy criticism from the real estate industry, offers user tools, such as a calculator to help consumers assess potential savings, maps of states with laws in place that the DOJ says inhibit competition within the industry, and links to government resource sites.

NAR characterized the site as a "flagrant disregard" for free competition, saying the Web site is being used as a promotional tool by the DOJ to push for a single, discounted brokerage services model, threatening to cut agent commissions in the process.

"The real estate market is very competitive," said NAR officials. "NAR encourages innovation and fair competition in real estate brokerage, and favors no business model." In addition, NAR added that real estate commissions remain negotiable across all sectors, driven by market forces to "attract clients and retain the best agents."

Here is the U.S. Dept. of Justice Release.

FOR IMMEDIATE RELEASE
WEDNESDAY, OCTOBER 10, 2007
WWW.USDOJ.GOV

AT
(202) 514-2007
TDD (202) 514-1888

ANTITRUST DIVISION LAUNCHES WEB SITE ON COMPETITION
IN THE REAL ESTATE BROKERAGE INDUSTRY

WASHINGTON -- The Antitrust Division of the Department of Justice launched a new Web site today to educate consumers and policymakers about the potential benefits that competition can bring to consumers of real estate brokerage services and the barriers that inhibit that competition. Among its features, the Web site includes maps identifying states with real estate laws that can inhibit competition, a calculator to help consumers tally their potential savings when brokers pursuing new business models compete for their business, and links to additional government resources. The address is: http://www.usdoj.gov/atr/public/real_estate/index.htm.

"Buying or selling a home is the largest financial transaction most Americans will ever undertake," said Thomas O. Barnett, Assistant Attorney General in charge of the Department's Antitrust Division. "This Web site will help consumers and policymakers understand the benefits of increased competition among real estate agents."

The estimated median commission paid by home sellers in 2006 was $11,672, according to the Antitrust Division. New real estate brokerage models have the potential to reduce that amount by thousands of dollars. For example, in states that allow open competition, some buyer's brokers rebate up to two-thirds of their commission to the customer, and some seller's brokers offer limited-service packages that let sellers list their homes on the local multiple listing service (MLS) for as little as a few hundred dollars.

Excerpt from their website

Home Prices and Commissions over Time

Brokers typically charge a commission based on a percentage of the home's sale price. Over the past decade the average commission rate has remained relatively steady between 5.0 and 5.5 percent. As a result, the actual median commission paid by consumers rose sharply along with the run-up in home prices.

Unless broker costs were also rising sharply during this period of time, competition among brokers should have held commissions in check even as home prices were rising.

Realtors® income rose 22% over the last 10 years.

Chart Non-supervisory Workers ( The Average Joe on The Street)

Non-supervisory workers income rose 33 to38% over the last 10 years

Our goverment is saying that it is ok for the average Joe to get a 33 to 38% raise over 10 years but if you are a Realtor® a 22% raise over 10 years is gouging the public and there needs to be more competition. I bet you the Antitrust Division of the Department of Justice received a raise larger than 22% over 10 years! What do you think?

Sherman Smith

Sherman Smith & Associates

(714) 544-5445 or shermansmith@pacbell.net

shermansmith.com

There are known and there are unknowns

Sherman Smith (Sherman Smith & Associates) — Thu, 06 Sep 2007 18:57:56 -0500

As we know, there are known knowns. There are things we know we know. We also know there are known unknowns. That is to say we know there are some things we do not know. But there are also unknown unknowns, the ones we don't know we don't know. -Donald Rumsfeld

Does this sound like Real Estate?

Foreclosures are now an absolutely trivial number in the context of a $14 trillion economy with net wealth in the realm of $60 trillion.

Sherman Smith (Sherman Smith & Associates) — Mon, 13 Aug 2007 14:34:16 -0500

Despite all the bad buzz about subprime mortgages, Ben Stein says the economy is strong and that the amount of foreclosures is small in relative terms.

Perspective is a great thing. It's especially good where money and the stock market are concerned.

Recently, there has been large movement, mostly down, as the stock market reacts to a large number of foreclosures on homes in the so-called "subprime" mortgage area. This is the place where higher risk borrowers got loans during the housing boom of the last three or four years. Now, to people who actually made those loans, it's a scary phenomenon to see those loans default, and the companies that made those loans are in real trouble.

But here is where perspective comes in, and is such a lovely thing: The U.S. mortgage market is immensely large, spectacularly large. Total foreclosures are a large amount in dollar terms, but a tiny amount in percentage terms. Foreclosures are now about 1 percent of loans. The lenders will sell the houses and recover at least fifty per cent of the value. That means the total loss may be about ½ of one percent of the mortgages made and probably less, and a lot of it is insured. This is an absolutely trivial number in the context of a $14 trillion economy with net wealth in the realm of $60 trillion.

This whole subprime mortgage mess is just an excuse for the gunslingers and river boat gamblers on Wall Street to use their tricks to move markets and make money. The economy is still very strong. The most cagey players on Wall Street like Goldman Sachs are now trying to buy - not sell - as much distressed merchandise in the mortgage area as they can. This is a good clue about where the smart money is going.

You can panic if you enjoy being panicky. But this will all blow over and the people who buy now, in due time, will be glad they did.

Anyway, that's my perspective.

"Which Way Is The Market Going?"

Sherman Smith (Sherman Smith & Associates) — Sat, 11 Aug 2007 15:54:04 -0500

If there is any one question I receive from my clients on an on going basis it is "Which Way Is The Market Going?"

Well here is my crystal ball view: Birth Rates and Spending Patterns

Before we look at where the market is going let's look at how it got to where it is. The answer is demographics and very low interest rates and liberal financing methods. The latter causes are demographic as well, as interest rates are low due to the rising productivity of the aging baby boom. The baby boom generation (From 1946 to 1964) is the largest in history, and it created a boom in commercial real estate in the 1970s as they entered the workforce. Then they created the next boom in multifamily housing and retail as they got married and had children, which then saw declines despite a booming economy and falling interest rates after 1985 when the boomers moved into the next stage. Then they created a boom in starter homes into the late 1980s that turned to bust with the recession of the early 1990s and the S&L crisis. But then trade-up homes started to boom, and that trend accelerated with speculation in housing, vacation homes and condos as investment flows created the next bubble after the stock market boom failed in 2000.

By late 2003 to 2005, the baby boom generation had peaked in its trade-up home buying spree. But speculation kept those markets going and naturally followed even more into the growing vacation home markets. More baby boomers considered "why not buy a vacation home or two given that real estate is the best area now for appreciation?" But that too came to a end.

We did not have the "Bubble Bust" in housing prices as many predicted we would. We just simply flatten out on sales and some areas have seen a decline in prices as well. Especially the higher-end areas in states like the Northeast, California and Florida. Will there be a decline or another growth spurt?

2008 to early 2010 will see a come back of real estate market as pent-up demand for housing grows. But as that demand levels off about early 2010-2011 and the slowing baby boom spending brought on by a retiring generation, this will finally precipitate a broad decline in real estate in nearly all sectors, especially the high-end. This occurred in the 1930s in the U.S. and in the 1990s in Japan.

But buyers and investors should realize that due to the consumer life cycle in real estate, there will always be sectors booming. In the next several years retail spaces and apartment rentals will make a comeback from the rising echo boom generation. Commercial and industrial should fare well due to the boom ahead and mildly rising employment. After the broader crash from around 2011 to 2014, vacation and retirement homes will make a strong comeback as will starter homes for the echo boom. These will be the best areas to own after 2014.

So "Which Way Is The Market Going?" This is my crystal ball view based on my 29 years selling real estate and that of Harry Dent a well-known author and the developer of The Dent Method, a forecasting approach based on changes in demographic trends. I hope that this is helpful to all who read it.

Sherman Smith

Sherman Smith & Associates

10 WAYS TO SPOT A MOVER YOU CAN TRUST!

Sherman Smith (Sherman Smith & Associates) — Tue, 24 Apr 2007 23:48:30 -0500

1. Call your local regulatory office to verify his license

Make sure the mover you are considering is duly licensed or authorized by your State's Department of Transportation or other regulatory body as required by law and that his certificate number is legitimate.

2. Check your local Better Business Bureau about constant complaints

A responsible mover might have a few complaints lodged against him but his record with the Better Business Bureau should show that he responds to and resolves complaints.

3. Ask if he carries Worker's Compensation Insurance

Most state regulatory bodies require such coverage. This adds to the cost of doing business but it protects you. Be suspicious of the very low bidder for he may be cutting costs by cheating on this needed protection.

4. Make sure his place of business really does exist

Paying a visit tells you something about the mover's integrity and professionalism, for you can confirm that his place of business is there and appears clean, organized and properly staffed.

5. Be wary of high-pressure tactics from Telemarketers

This could be a ploy simply to get a sales person into your home to give you an estimate. Be careful, do research and you decide whom to invite into your home, based on references.

6. Do not listen to sales personnel who tell stories

A high-quality firm with a good reputation does not need to knock the competition, or to criticize other moving firms in an attempt to make themselves look better.

7. Was the company listed in last year's Yellow Pages?

If not, it could be a legitimate new company. However, it could also mean the mover's DOT license was revoked and he is trying to operate under a new name or the name of another licensed mover.

8. You should be able to meet or talk to the owner

If you can talk to the owner of the business, even if only by phone, you will be able to develop a feeling of confidence that he is experienced and capable enough to assure a professional move.

9. It is a good idea to get a recommendation

A satisfied customer is the best sales pitch for a mover. Remember, even a mover with a big franchised name is still a local business who is only as good as his local reputation.

10. Ask if the company is a member of its local trade association

Most industry trade groups were formed years ago to build confidence in the local industry's moving industry. It checks a mover's "Certificate", Worker's Compensation insurance coverage, and reputation before accepting him as a member.

I found this article and thought that it would be very usefull. Hope you enjoy it and find it usefull.

"What they say isn't always what they mean."

By Edward Caldwell

"Don't worry, this is the most you have to pay! This is a binding estimate!"

This is true, however, the price is binding ONLY for the services listed on the face of the estimate and for moving the articles listed on the table of measurements (known as the "cube sheet" in moving & storage language). If you think you will get a deal because the sales rep forgot to include that oak bedroom set on the estimate, think again! The driver will pay close attention to reconciling what you show him or her to be moved and what the sales representative has listed on the Table of Measurements document. You WILL be charged extra for items that you want moved, but are not listed on the Table of Measurements document.

"Don't worry, the most you have to pay is the estimate, plus 10%"

This is true for a non-binding interstate moving estimate, the most you are required to pay upon delivery is the estimate, plus 10%, however, the fine print (that you usually don't read) says that you; "...are obligated to pay the balance of the total charges within 30 days." So, if the Tariff charges exceed the estimate by more than 10% you're responsible for the extra charges.

"This price includes insurance!"

This may refer to the $0.60 per pound, per article carrier's liability for loss or damage that is automatically included in an interstate moving estimate. If so, you are in for an unpleasant surprise at claims settlement time ($.60/lb x 2 lbs. = $1.20 for a valuable Waterford vase). Make sure you purchase additional "Carrier's Liability For Loss or Damage" or that you have "full value replacement coverage".

"We won't charge you for that ________...(flight carry, elevator, long carry, piano handling charge, extra pickup, extra delivery, etc...)"Be careful when you hear this.

With this statement, the salesperson has just taken money away from the driver. These "accessorial" charges are paid exclusively to the van lines' driver as compensation for the extra time and labor required to complete pickup or delivery of your goods. The driver may not be so cooperative when it comes time to honor this promise, a promise that he or she did not have the opportunity to approve. Do you really want an angry driver handling your valuable household goods; is it worth the few dollars you think you will save?

"Don't worry, this estimate is on the high side!"

Typically in the business world you get three estimates and throw out the high and low. You should, however, usually believe the high estimate. The discounts are all approximately the same and most major movers use the same Tariff (base price) to calculate their estimates.

"Don't worry, the driver will pad wrap that ________ .."(painting, glass top, marble top, grandfather clock, mattress, etc...) or "We'll pad wrap it"...

This is what will happen on move day: The van line driver won't load the item(s) because they aren't properly packed for transit and the van operator doesn't want to assume the liability that comes with accepting an improperly packed item into his or her care and custody. If an item is sensitive or fragile it needs to be properly packaged and if it's not done in advance the driver will do it and add the cost to the estimate.

"We'll bring you into storage on an local hourly charge basis. Then, we will move you out of local storage on interstate weight basis. This will save you money!"

It is true that local hourly-based charges into storage are cheaper than weight basis Storage-In-Transit (S.I.T.) charges,

However, if a claim occurs you will be faced with finger pointing between the van line (under whose interstate authority the final interstate move was performed) and the local agent (under whose local intrastate authority the shipment was moved into storage on). It's called "split liability", and while you probably don't understand it, it can make settling a claim an absolute nightmare. Guess who loses?

What is my weight???

Apartment Move - You are moving from a studio or 1-bedroom apartment. Assumed total weight of move is 2,000 pounds.

Small Move - You are moving from a 2- or 3-bedroom apartment or very small house. Assumed total weight of move is 5,000 pounds.

Small to Moderate Move - You are moving from a very large apartment or small house. Assumed total weight of move is 7,500 pounds.

Moderate Move - You are moving from a 5-7-room house. Assumed total weight of move is 10,000 pounds.

Large Move - You are moving from a 7-9-room house. Assumed total weight of move is 15,000 pounds.

Very Large Move - You are moving from a very large or cluttered house. Assumed total weight of move is 20,000 pounds.

IS IT REALLY INSURANCE?

This article deals with cargo protection and storage protection.

Insurance for your goods is referred to as cargo (or transit) protection. Moving companies carry many forms of insurance coverage, one of them being cargo insurance. What movers offer you is an option to be compensated for any loss or damage to your goods while in transit with them. They are not selling you insurance. They are selling coverage and accepting a degree of liability in return for a premium paid. Even sales representatives confuse the fact. Only insurance companies sell insurance. The movers ask you if you want to be protected under their policy or not and to what degree.

Damage and lost items do occur on moves. There is much that you can do to prevent loss or damage, much of which is described in other sections on this server. A moving company is required, by law (Canada) to accept some degree of liability when traveling the roads. This basic, standard protection is 60 cents per pound (per article). For example, if damage or loss occurs to an item weighing 50 pounds, then the carrier's (movers) liability is $ 0.60 X 50 lbs. = $ 30.00. This is fine for items that are cheap and heavy, but not so good for a $ 500.00 lamp weighing 15 pounds!

Here comes the first gray area of "insurance". Take a figurine weighing 10 pounds. It is packed in a box weighing 50 pounds. You did the packing of the box. Different companies have different weighs of interpreting the application of $0.60 per pound. Some will give you the rate on the damaged item only, while some will apply the rate to the cartons weight (50 lbs. in this case). Then, there are some who will not give you a thing because YOU DID THE PACKING. Read any contracts and ask the moving company this question. Quite often, if you do the packing, you nullify any insurance compensation from the movers. It is a fair practice. A mover and its insurance company cannot insure contents of boxes that they have never seen. They also do not know if the contents were packed properly. As a result, if you pack it, you take the risk. There are companies who will negotiate on this issue, but the general rule is, if you pack it (or unpack it) you nullify any insurance coverage.

This option often referred to as "basic" or "no insurance" should cost you nothing since you get very little in protection. However, this may be enough if you can arrange your own coverage through your household insurance. Ask your insurance company or broker, you may find you do not need any extra coverage through the movers.

In general, there is only one other kind of coverage, replacement coverage. However, there may be other kinds offered between the basic coverage and the replacement coverage. One such possibility is called "Added Value Protection". Here the company charges a premium and increases the coverage from $0.60 per pound to a greater value, say $2.00 per pound (may vary).

Another offer may be Market Value or Depreciated Value coverage. This option should be compared against the cost of replacement value. Here, the market value of the damaged item is considered for compensation. Determining the market value of a piece of furniture yourself can be difficult. As a matter of fact, most insurance companies offering cargo protection to movers deal only with replacement costs these days. Watch out for the mover that tries to tell you that replacement coverage doesn't exist. It does and there should not be an excessive premium for it.

What you will pay for transit protection.

As mentioned earlier, there are four possible amounts of coverage.

1. Basic $0.60 per pound (minimum)
2. Added Value
3. Market or Depreciated Value
4. Replacement Value

Basic coverage should cost you nothing. Nobody charges for this. It is included and is the minimum as required by law.

Added Value will cost more, but it varies depending on the increase in value. A typical charge is $1.25 per $ 1000 of declared value for coverage of $2.00 per pound.

Market Value coverage is going out of style. Typically, it would cost around $1.00 to $3.00 less per $1000 of declared value than replacement coverage. That would put it in the $4.00 to $6.00 per $1000 declared value range. You declare an amount of coverage. In the event of total loss of all your goods, you get back the total declared amount. In the case of damage to an individual piece, you would get back a maximum of the market value for that piece.

Replacement Value will fluctuate, as did market value coverage. Typical rates would be $7.00 to $9.00 per $1000 of declared value.

Did you catch all of that $X.00 per $1000 declared? It is tricky. Ok, this is how it is applied. As an example, let's say you are moving. Your moving consultant will ask you (among other things) ,"How much cargo protection do you want"?. Well, after considering all you have to move, you come up with $50,000 worth of goods. (See Inventory List). The consultant has also told you that all your goods weigh approximately 12,000 pounds. You look at your options.

Basic: Coverage @ $ 0.60 per pound x 12,000 pounds = $ 7,200.
Cost = 0 Maximum coverage = $ 7,200

Added Value: Coverage @ $2.00 per pound x 12,000 pounds = $24,000
Cost = @ $1.25 per $1000 declared value = $ 62.50

Market Value: Coverage against total loss is your declared value = $50,000
Coverage against loss or damage on individual piece is market value
Repairs covered up to cost of market value
Cost = $5.00 per $1000 declared = $250.00

Replacement Value: Coverage against total loss is your declared value = $50,000
Coverage on individual loss or damage is replacement value
Repairs covered up to replacement value
Cost = $7.50 per $1000 declared = $375.00

So you can see that the cost to get cargo protection in place for your move can get a bit pricey. Not only that, but each kind of policy will have some sort of deductible to go along with it. Some won't, but some can be as high as $250. For example, you may pay a premium of $300 for cargo protection and then face a $250.00 deducible on top of it.

What is never insured

Don't risk it. There are things that are not insured, even if you pay for coverage! The most common example would be jewelry. Best to pack them up and take them yourself. Other items not normally insured are coins, stamps, documents, and food. There is no insuring items of sentimental value. A photograph will only be covered up to the cost of the film, for example. The same goes for software data. The loss of data is not covered, so back up your disks before moving!!

Generally, the interior workings of appliances, televisions, stereos, etc., are not covered by the mover unless the mover does some obvious physical damage to the piece. If the item was handled properly and something does not work after the move, it's your responsibility. If there is obvious damage to the item, there is a 99 percent chance the internal damage was a result of the rough handling and the movers will pay (up to your protection selection) for the repair.

Again, contents of boxes are not covered under cargo protection policies unless the mover (or an agent of the mover) has packed and unpacked the cartons. Usually, the mover will cover goods (up to the coverage you selected) for clear mishandling of the carton. If there is obvious damage to the exterior, generally the mover will compensate you.

Sets of furniture and appliances are not covered. That is, if you have a matching couch, love seat and chair, and the chair gets ripped, the mover is only liable to repair or replace (up to your coverage selection) the one piece and does not have to touch the matching pieces, even though they may not match after repair, recovering, or replacement of the one piece.

Extraordinary Value

You will have to declare items of extraordinary value. For example, if the movers are taking your car, they will need a value for the car. You may have a painting or a sculpture worth a fair amount. The idea is, that despite all the cargo coverage there will be a limit on the amount the insurance company will pay out on one given item. Ask your moving consultant what the limit is. If you have any item in your place that exceeds that value, then you must tell the mover. The item(s) of extraordinary value will be noted on the bill of lading and you will be covered.

Dangerous Goods

Do not pack an item classified as dangerous goods. If any damage resulted from a dangerous good, your insurance would be void. You wouldn't even get $0.60 per pound. Ask your moving consultant where your local disposal site is.

Generally speaking, each moving company will charge you a premium for cargo protection. When you move locally, the rates and methods of assessing rates will vary from company to company. Some may charge you a flat rate, some will charge based on how long the move takes (hourly), and some include it in their rates. No matter which way you get charged, you should be asking some important questions.

1) What is the total coverage you get?
2) What is the limit per individual item?
3) What is the deductible?
4) Is the coverage market value or replacement value?
5) Ask who the company uses for furniture repairs. This will provide an idea of the quality of repair you can expect if you have damage on your move.

Storage Insurance

Generally, if your goods will be stored in a warehouse for an extended period of time, you will need separate insurance for this. This can be arranged through the storage facility, your mover or your own insurance company. Storage facilities generally charge between $1.00 and $2.50 per $1000 of declared value per month of storage. The rules about dangerous goods and items of extraordinary value apply here as well.

SHOPPING PRICE FOR INTERSTATE MOVES!

People who are moving are rightly concerned about moving costs and obtain many estimates in search of the best price. Unfortunately, the "best price" doesn't really exist in our business. Let me explain...

Most of the major movers use the same base rate book; for 1998 it's called "Tariff 400-M" and it is published by the Household Goods Carriers' Bureau. You will see Tariff 400-M listed as being used on each of your estimates. Tariff 400-M contains the charges for transportation, packing, storage, etc.. These charges are essentially the same for all of the major moving companies (if each has the same weight and mileage estimate). This being true, if you were to clone your move and ship your goods with each of the major movers, you would find that while you may have had four vastly different estimates, in the end each mover was just about the same cost (provided that each mover is giving the same level of discount).

So why were your estimates so different? "Low-Balling" (purposely giving a low estimate to mislead the customer) or "weight bumping" (over estimating) may be the reasons. Inexperienced estimators are another.

In the end, you may pay the actual weight and mileage charges, regardless of the estimate. So be aware of how it works; and hopefully, you won't be misled by a salesperson who cares more about commission than the safety of your goods and the accuracy of your estimate.

One of the best options for the consumer would be to obtain a binding or guaranteed quote. This way the moving company agrees to do a specific job for a specific price. As long as your inventory stays the same and there are no access problems, you know exactly what the cost will be.

Finally, our advice is:

1. Get everything in writing.

2. Do not believe everything you are told.

3. And understand that you are about to entrust everything you own and cherish to complete strangers during one of the most stressful times of your life. Take time to make a careful, informed and thoughtful decision.

THE HOUSHOLD GOODS DISPUTE SETTLEMENT PROGRAM

This program was developed by the American Movers Conference in 1981 as a less costly alternative to the court system to resolve disputes involving loss and damage claims that may occur during a move. Initially a voluntary program, it has been so successful that in 1996 the Federal Government made participation in a "Dispute Settlement Program" mandatory for all household goods carriers.

What Is Arbitration?

Arbitration is a substitute for going to court to settle disputes. Under arbitration procedures, two parties unable to resolve their differences submit their dispute to an impartial third person for a final determination. The proceeding is governed by rules and procedures agreed upon in advance by both parties.

Who Sponsors This Program?

The American Movers Conference (AMC) is a national trade association representing carriers and agents of the household goods moving industry. AMC is sponsoring this dispute settlement/arbitration program so that its member carriers may offer an effective, fair and expeditious way to solve disagreements in connection with loss and damage claims on household goods.

Who Actually Administers the Arbitration Procedures?

The program will be administered by the American Arbitration Association (AAA), an independent, non-governmental organization, not affiliated with either the American Movers Conference or its member household goods carriers. The AAA was chosen to run the program because it is recognized as the leading independent arbitration authority in the country. It is a public service, non-profit agency with 33 offices nationwide, which is dedicated exclusively to the resolution of disputes of all kinds.

Has This Program Been Approved By an Outside Agency?

The Interstate Commerce Commission (ICC), which regulates the interstate operations of household goods carriers, has approved this program. By law, the ICC is responsible for overseeing the functioning of any approved dispute settlement program.

What Are The Legal Effects Of An ICC Approved Program?

The Household Goods Transportation Act was passed by Congress on October 15, 1980. It provided guidelines to permit carriers to establish dispute settlement/arbitration programs, subject to ICC approval. In addition, the Act contains certain provisions relating to the legal effects on shippers (consumers) and carriers. You should carefully consider the legal effects of the following provisions of the Act before you decide whether or not to use the program:

1. To encourage carriers to participate in arbitration programs, the Household Goods Transportation Act of 1980 provides that where a court action is instituted to resolve a dispute between a shipper (consumer) and a carrier concerning the transportation of household goods, reasonable attorney fees must be awarded the shipper: IF the shipper submitted the claim to the carrier within 120 days after the date the shipment was delivered or the day on which the delivery was scheduled, whichever is later; AND, IF the shipper prevailed in the court action. In addition, one of the following must be applicable:

a. There was no ICC approved dispute settlement program available for use by the shipper to resolve the dispute.

b. A decision resolving the dispute was not rendered within 60 days of receipt of written notification of the dispute or an extension thereof as provided under the rules of the program, or under 49 USC 11711 (b)(8).

c. A court action is instituted to enforce a decision rendered under the dispute settlement program.

2. Additionally, to discourage shippers from filing non-meritorious claims in court, the Household Goods Transportation Act provides that a carrier may be awarded reasonable attorney fees where a shipper has brought court action in "bad faith," either:

a. After a decision has been issued under an approved dispute settlement program; or

b. After a shipper has instituted a proceeding under such a program but before a decision resolving the dispute is rendered, provided the dispute is finally resolved within the 60-day period allowed or a valid extension is granted as stipulated by the program.

When Would I Use This Arbitration Program?

This program was established for the settlement of disputes involving loss and damage claims on interstate shipments of household goods. Under ICC regulations, a claim for loss and damage to your household goods during a move must be filed with the carrier within nine months after delivery. However, the above mentioned legal effects may be affected by the date a claim is filed. The carrier must acknowledge any claim within 30 days of receipt, and within 120 days must deny or make an offer in settlement of your claim. If you and the carrier cannot resolve a dispute in connection with your claim, you may request arbitration procedures administered by the AAA. First, however, be sure you have exhausted your remedies through the regular claims process and the carrier has made its final offer.

How Does The Arbitration Program Work?

This arbitration is voluntary and optional, and neither the carrier nor you-the shipper-is committed to arbitrate a claim dispute until both complete and sign the prescribed forms to initiate the procedures. Either you or the carrier may request arbitration from the AAA. However, neither party may force the other to arbitrate a disagreement. Arbitration is voluntary, and each party must agree to it. If a carrier does not agree to take a dispute to arbitration, the reason for that refusal will be clearly stated.

After both carrier and shipper agree to arbitrate and sign the official "Submission to Arbitrate" form, they appoint the AAA administrator of the arbitration. The AAA then appoints an arbitrator from its national panel of arbitrators who will render a decision that is legally binding on both the carrier and the shipper. AAA arbitrators are trained and experienced volunteers from all walks of life. They are never in any way connected with either party in a dispute they are arbitrating. The arbitrator's decision is based on all statements of fact and documents relevant to the claim. The standard procedure is "desk arbitration" where the arbitrator conducts the arbitration on the basis of written documents submitted by both parties. Prior to the arbitration, both parties are provided with copies of everything that the arbitrator will base his decision on.

An optional oral hearing of the evidence in a dispute can also be arranged at an additional cost where both the carrier and the shipper agree to the oral hearing and the date, time and location.

How Much Does Arbitration Cost?

AAA arbitrators are not paid for settling disputes under this program. The AAA does, however, charge an administrative filing fee to institute the standard "desk arbitration" procedures. That fee is paid by the carrier when it agrees to a shipper's request to take a claim dispute to arbitration. The AAA charges an additional $100.00 each to both carrier and shipper for an optional oral hearing as of January 1, 1992. The cost of an optional oral hearing is subject to change at the discretion of the AAA.

What Can An Arbitrator Award And What Is The Legal Status Of That Decision?

The arbitrator may grant any remedy or relief the arbitrator feels is just, equitable and within the scope of the agreement between the parties and the rules of the program. In general, the amount of any award may not exceed the carrier's liability under the Bill of Lading. In reaching the decision, the arbitrator considers applicable federal law, ICC approved tariff rules, as well as applicable usage and practices of the moving industry. Under the rules of the program, the arbitrator does not have jurisdiction to consider claims for consequential or incidental damages, mental anguish, loss of wages, punitive damages, alleged fraud, violations of the law or any claim which cannot be arbitrated under the law, such as allegations of criminal activity. The arbitrator's decision is legally binding on both parties and can be enforced in any court having jurisdiction over the dispute.

Under rules of the program, there is a limited right to appeal on the arbitrator's award; however, courts will usually not revise findings of fact or law in a binding arbitration award.

How Do I Request Arbitration?

A shipper may request arbitration by writing to the American Movers Conference, ATTN: Dispute Settlement Program, 1611 Duke Street, Alexandria, Virginia 22314- 3482. Your letter of notification to the American Movers Conference must be sent within 60 days after a final offer or denial on your claim has been made in writing by the carrier.

In addition to your name, address and phone number, the following information should be included in your letter to the American Movers Conference: the name the shipment moved under, identification number of shipment, dates and location of pickup and delivery, and any assigned loss and damage claim number. The American Movers Conference will promptly send written notice of your request for arbitration to the carrier. The carrier must then respond to you within 15 days by either sending three signed copies of the required forms and the program rules to you, or by advising you in writing that it declines to arbitrate the dispute. If a carrier does not agree to take a dispute to arbitration, the reason for that refusal will be clearly stated.

How Is An Arbitration Case Opened With The American Arbitration Association?

You have 15 days from the date of receipt of the forms and information from the carrier to elect to initiate the actual procedures. The shipper accomplishes this by completing and signing the "Submission to Arbitrate" and "Claimant Questionnaire" forms, and mailing them with other supporting documents to:

American Arbitration Association

Attention: AMC Household Goods Dispute

Settlement Program

140 West 51st Street

New York, New York 10020

How Long Before a Decision Is Announced?

The arbitrator will make an award in each case no later than 60 days after receipt of all necessary forms and documents, or in the event of an oral hearing, within 30 days after the arbitrator concludes the hearing. The arbitrator may, however, extend the time period in order to obtain additional information to resolve the dispute.

How Do I Obtain More Information About This Arbitration Program?

You may request program rules and sample forms from either the carrier or the American Movers Conference.

American Movers Conference

1611 Duke Street

Alexandria, VA 22314-3482

Sherman Smith & Associates

MLS Statistics

Sherman Smith (Sherman Smith & Associates) — Wed, 21 Feb 2007 19:36:36 -0600

I've included some info below that you may find interesting:

Orange Countly MLS Statistics for properties Under $5,000,000:

Jan1 - Feb15 2007 $731,437 / 2,200 Sales / 1,754sf avg. size
Jan1 - Feb15 2006   $730,110 / 2,689 Sales / 1,668sf avg. size
Jan1 - Feb15 2005 $631,595 / 3,762 Sales / 1,670sf avg. size

Oct1 - Dec31 2006   $709,995 / 5,944 Sales
July1 - Sep30 2006  $728,087 / 6,842 Sales
Apr1 - June1 2006   $742,639 / 8,131 Sales
Jan1 - Mar30 2006   $733,181 / 6,642 Sales

As you can see above, average prices are relatively flat compared to last year (although average
size of home sold is approx. 80sf larger). Volume is down a little compared to last year (about
18%) and down about 41% compared to 2005.

Inventory:
2/15/07    12,091 For Sale
1/1/07      11,207 For Sale
12/1/06    13,379 For Sale
11/1/06    14,789 For Sale
10/15/06  15,429 For Sale
10/1/06    15,481 For Sale
9/01/06    15,864 For Sale
8/01/06    15,720 For Sale
7/01/06    15,004 For Sale
1/1/06       6,976 For Sale

Inventory levels decreased somewhat toward the end of 2006 and have not gone up substantially
since the beginning of this year.

The accuracy of all information regardless of source, including but not limited to square footages and lot size, is deemed reliable but is not guaranteed and should be independently verified through personal inspection by and/or with the appropriate professionals. Copyright SoCalMLS.

I Can't Complain, My Tenant Is Putting My Kids Through College!

Sherman Smith (Sherman Smith & Associates) — Mon, 19 Feb 2007 19:56:27 -0600

I Can't Complain, My Tenant Is Putting My Kids Through College!

It was 1981 and my second daughter was just born. I now had responsibilities above and beyond the day to day cares. I had two kids that would someday need to complete four years of college. How would I ever be able to save enough money to pay for this? I looked at several options. I could save my money. I could try my luck in the stock market. I could buy an annuity or mutual funds. In any event, I was going to need $15,000 to $30,000 per child, per year, for at least four years of school.

I had been selling real estate for about three years at this time. I knew that real estate was a good, long term investment and we had just gone through a down turn in the real estate market. Now would be the time to buy a long term real estate investment that could be used to help pay for my kids' college education.

Would I buy a condo, house, duplex, triplex or multiple units? The answer was easy. I had very little money. I needed to find something that I could buy with very little down and would come close to carrying itself with the rents.

Shortly after I started to look, I came across a one bedroom condo in Lake Forest, California. The real estate market had caused prices to decline and the owners of this condo now had no equity. As a matter of fact, they were in a negative equity position. They owed more on the property than it was worth. Because of their position, they were willing to sell the property on a contract of sale, just to get out of the property. What this meant to me was that I could buy the property with four or five thousand dollars down and not have to qualify with a lender. The benefit to the seller was that they could sell the property and move on to bigger and better things. The benefit to me was that I could buy a rental property with less than 10% down. It was a win win situation. Yes, there were risks, but we were both willing to take them.

The rents on the property almost covered the expenses of the property. After the tax benefits were figured into the equation, it was a real break even. I bought the property. Within a month, the neighbor upstairs from the Lake Forest condo called me to ask if I would like to buy her condo the same way. Having two daughters that would need to go to college, I said yes.

I purchased both properties on a land contract and held them for about five years. At that time I refinanced the properties on fifteen year loans. With the drop in interest rates, the rents still covered the expenses.

There have been times when I wondered why I have tenants. Then I remind myself that I can't be mad at my tenants, they are putting my kids through college. Not only are the tenants putting my kids through college, but I have enjoyed the tax benefits of rental property. This has saved me thousands of dollars over the years. With the increase in rents over the last few years, I was able to accelerate my payments and pay off both of my condos.

In 2001 my oldest daughter graduated from USC with no student loans. In 2004 my youngest daughter graduated from Westmont College with no student loans. Both of these colleges were $30,000+ per year. I must thank all of my tenants for their support because they put my kids through college.

Oh, there is one other side benefit to this plan. When my daughters graduated from college I gave them the keys to their first condo. Their only payment will be to pay off the loan that helped put them through school.

Grandma Does Not Want To Move!

Sherman Smith (Sherman Smith & Associates) — Mon, 19 Feb 2007 19:45:44 -0600

Grandma Does Not Want To Move!

Try Thinking in Reverse!

Deloris is a sweet, 68 year old grandmother with a problem. Money, or more accurately, a lack of it. Through no real fault of her own, she finds herself as an unemployed widow with a $ 787 per month house payment and a life savings of just under $14,000. She has refinanced her home, so much of her available equity has already been put to use just meeting her living expenses. Not exactly a glowing formula for a comfortable retirement that could see her living another 20+ years. Deloris did not want to sell her favorite home but could no longer afford to stay where she is.

What can she do asked her daughter Linda? After giving it a few minutes Sherman Smith of Sherman Smith & Associates suggested that we think in reverse. A Reverse Mortgage that is. For senior home-owners (age 62+), a Reverse Mortgage can be a blessing because it allows her to continue living in her present residence without making another house payment. With the Reverse Mortgage program, available equity is turned into tax-free available cash (or monthly payments for life) that can be used in any manner she chooses. Home improvements and repairs, a new car, funds for medical insurance or medications, a vacation home, or that vacation cruise-of-a-life-time.

For Grandma Deloris, the reduced equity in her home wouldn't make a cash payment plan possible, but the Reverse Mortgage did mean that her existing mortgage was paid in full and her related payments stopped, for good. Deloris now gets to live in her favorite home for the rest of her days and has an additional $ 787 per month that she can devote to living expenses. Or maybe that cruise she always wanted to take. If you know a special someone who can use help like this please contact Sherman Smith at (714) 544-5445 or email at shermansmith@pacbell.net.

Do You Really Need A Termite Inspection?

Sherman Smith (Sherman Smith & Associates) — Mon, 19 Feb 2007 19:25:45 -0600

Do you really need a termite inspection?

Do not treat lightly your opportunity to have the house inspected for termites. First of all, if you need a mortgage to buy the house, you'll find that institutional lenders REQUIRE that a termite inspection be done. Your lender is concerned - and rightly so - that it might be lending its money to buy a house that is infested with insects that have or will harm the house's structure. If that were the case, the mortgage loan that is being given to you could never be recouped by the lender since the house will be devalued greatly by the little pests. YOU should be just as concerned, because the house that you've contracted to purchase for $500,000.00 may be worth a lot less with termites in it.

NOTE: "Termite" or "pest" inspection is the popular term. However, the inspection actually encompasses all "wood destroying insects". Termites happen to be the most prevalent of these pests.

Most houses do not have a termite problem, but a substantial minority do. Termites are usually a hidden but potent problem. They literally can destroy a structure without revealing visible signs. You'll be carrying your new television downstairs and fall right through the third step. Why? Because termites have burrowed through the wood and weakened the stair case. For these reasons, a good Contract of Sale (Purchase Agreement) is contingent upon the results of a termite report.

Most often, there is a provision placed into the Contract of Sale (Purchase Agreement) giving you, the buyer or seller, a short time period within which to have the house inspected for wood destroying insects. I usually give buyers fourteen days from the full execution of the Contract of Sale (Purchase Agreement). In other words, immediately after receiving a fully-signed Contract of Sale (Purchase Agreement), you should make an appointment with a licensed inspector or extermination company to go to the house and inspect for termites. Ask your Realtor® to refer a company he trusts, or look in the yellow pages, call a few companies and compare their fees. When you've chosen a termite inspection company, you then have to arrange for the company's access to the house, just like with the home inspector. If there is a real estate broker involved in your purchase, let the broker arrange a time with the seller for the inspection.

One of three situations could result from a termite inspection. First, "no evidence" of wood destroying insects on a report means what it sounds like it means - that the inspection revealed no evidence or trace of wood destroying insects, dead or alive, and no evidence of their damage to the house. The inspector will provide you, the buyer, with a report to this effect, and you frequently are asked to provide a copy of the report to your lender.

Second, "evidence of damage" means that the inspector found damage to the house which likely was caused by wood destroying insects. However, in this scenario, the inspector has found no "active infestation" or rather no evidence that the damage is currently being perpetrated by live insects. In this second scenario, you should ask the termite inspection company to issue to you a one-year guaranty against active infestation, in addition to the report itself. Some lenders will be satisfied that there is no active infestation on the date the termite report is issued, but a number will require a guaranty from the termite inspection company that extends for one year.

In the third scenario, the inspector finds an "active infestation". It sounds bad, and it is, but a good Contract of Sale (Purchase Agreement) will cover this situation as well. Remember, a Contract of Sale (Purchase Agreement) is a flexible document, not just a form. You and your Realtor® can negotiate almost anything into it. Contracts of Sale (Purchase Agreements) may permit you, the buyer, to back out or terminate the contract if there is evidence of an active termite infestation. A better Contract of Sale (Purchase Agreement) will give the seller an opportunity to remedy the termite problem by having it treated within a reasonable period of time, usually at the seller's expense, and having any termite damage repaired.

Not to sound redundant, but . . . most houses are made substantially of wood. Thus, termites are the arch enemies of houses, and you should be sure to protect yourself against the risk they pose. In California "it is not if you have termites, but when are you going to get them"!

Why Housing Hasn't Hit The Skids

Sherman Smith (Sherman Smith & Associates) — Mon, 19 Feb 2007 19:02:35 -0600

This is a re-print of February 19, 2007 Businessweek.

Why Housing Hasn't Hit The Skids
Low rates are a major factor

So this is the much-feared "housing bust"? Bust Lite is more like it. Existing-home prices are as high as they were a year ago, while sales have receded only to 2003 levels. The only extreme decline is in construction: Builders are trying to get rid of the houses they've already built before they put up more. The overhang of unsold homes could be back to normal by around midyear.

The credit goes, at least in part, to low interest rates. Fixed-rate 30-year mortgages averaged a modest 6.2% in the last quarter of 2006-well below a decade ago. That, combined with income growth, means houses in most areas remain affordable even though prices rose more than 50% nationally in the past five years. The affordability index of the National Association of Realtors is still over 100, meaning a family making the median income can afford to buy a median-priced house.

The market began gaining momentum in 2001 when the Federal Reserve started lowering rates to end a recession. Corporations cut back on borrowing, but homebuyers exploited the low-cost money. Says Citigroup economist Steven Wieting: "The housing sector acted as a bottom feeder, taking advantage of cheap capital flows."

The surprise is that low rates are still keeping a floor under housing. Thirty-year mortgage rates are no higher than in June, 2004, even though the Fed has since pushed up the federal funds rate by 4.25 percentage points. It's the same in Britain, where long-term rates have actually fallen since 2004 despite short-term rate hikes by the Bank of England. No surprise: After a brief lull, Britain's housing market is booming again.

Globalization and financial innovation are two key factors in keeping rates low. Investors know more about the loans they're buying, so they will pay more for them. "It's become a much more attractive asset class, hence more dollars are chasing the mortgage market, hence lower rates," says Bryan Whalen, a portfolio manager at Los Angeles-based Metropolitan West Asset Management. As recently as three years ago, he says, investors in mortgage-backed securities received two-page summaries of the portfolio. Now they get data on each loan.

Credit default swaps, which let people bet for or against a bond or loan's creditworthiness, have also improved transparency. If investors bet heavily against an issuer's securities, its lending costs are driven up. "This pushes out the marginal lenders," says Whalen. That creates a healthier market-and ultimately, lower rates.

What Sellers Should NEVER Say to Buyers

Sherman Smith (Sherman Smith & Associates) — Fri, 09 Feb 2007 13:15:51 -0600

"OPEN MOUTH, INSERT FOOT ..."

The door bell rings, you grasp the knob, and throw one last glance around. As your daughter quickly puts the vacuum cleaner away, you open the door with a big smile. There stands an agent and prospective buyers.

" Hi! ... How are you?... Come In." You say.

Those are probably the last three unsolicited comments that should pass your lips for the remainder of the visit. The real estate field is littered with stories of potential sales that were killed by sellers who inadvertently uttered the wrong thing.

Before continuing, you should understand that the types of 'better left unsaid' things discussed here have nothing to do with the Seller's Disclosure Addendum, or hiding anything from a potential buyer. To the contrary, all of the suggested "DON'T SAY IT!" topics presented here are based on personal preferences. Being human, sellers often find it difficult, if not impossible, to keep from offering opinions or information that they think makes them appear credible to the buyer. Without knowing the life's experiences and propensities of each buyer you see, how can you keep from opening your mouth and inserting your foot?

Please don't talk about:

How many kids are or are not in the area. Even if the buyer has children, you have no way of knowing whether or not they want gangs of them banging down their door on Halloween.
The huge stone birdbath in the backyard that is visited by HUNDREDS of birds each year. How could you know the wife is deathly afraid of birds?
How great your church is. They might be of different faith
How quiet the neighborhood is. They may want a more social atmosphere, and look forward to making new friends.
The 'newness' of items in the home. New is most definitely a relative term! What you consider 'new', may be old to others. For example, an item that is two years-old may be 'new' to someone who has lived in the house for 15 years, but may be old to a buyer who thinks of new as anything in place for less than less 6 months.
Information on existing warranties. They may expire before the new owners close on the house, or they may not be non- transferable.
How many 'showings' you've had. Buyers could interpret this as "No one else wanted the home, why do I ?" or "I wonder what's wrong with this house?"

Please don't OFFER the following statements as the reason you are selling:

The death of a family member. Some people have a phobia about moving into a home where someone died.
How you've outgrown the house. If a buyer has the same number in their family, they may have second thoughts about their need for such a large home.
How the home is too small for you. The buyer might feel that your home is 'plenty big', until you tell them how small it is for you. Your comment may give them the push to look for more expensive (bigger) homes.
Your recent divorce. Potential buyers may be having marital problems. This could easily turn them off.
That you bought another home. If a buyer knows there is urgency, this can be used against you in negotiating

If you get the distinct impression that everything you say to a potential buyer could get you into trouble down the road then you have correctly interpreted this article. Since you are under contract with a real estate agency, the best course is to make yourself scarce after the greeting. In fact, a good course of action might be to say: "Please take your time viewing my home. And if I do not see you before you leave, thank you for coming. You'll have to excuse me, but : important phone call, helping kids with project, deadline at work, etc." This extricates you from a potential "foot-in-mouth" encounter later, and does not make you appear to be avoiding the buyer's questions. Any Questions?

Deducting Mortgage Interest On My 2nd Home

Sherman Smith (Sherman Smith & Associates) — Wed, 07 Feb 2007 21:59:41 -0600

Q-My wife and I are looking into buying a second vacation home in Palm Springs. I know the rules have changed over the years, but can I still deduct my mortgage interest on that home?

A-You probably can. Here's the way it works. The second home must be a "qualified residence," which means it must have a permanent toilet, kitchen and sleeping facilities. I'm going to assume your home will qualify, but for folks looking to buy an RV or a boat as a "second home," things could be different. Under current law you can take the mortgage interest deduction on your primary residence and ONE other residence. So your second home in Palm Springs should be fine. But if you also decide to buy a cabin in Mammoth in a couple of years you will have to choose which of the two you want to designate as your "second home" for tax purposes. Obviously the one with the higher mortgage interest payment would make the most sense.

If you have a real; estate question of your own that you would like me to answer, please click here or send your questions to: shermansmith@pacbell.net .

The housing market may not be so bad after all.

Sherman Smith (Sherman Smith & Associates) — Mon, 05 Feb 2007 21:27:32 -0600

So, What About the Housing Market?

For a few months now the conventional wisdom is that the housing market is in a tailspin. The problem is that recent data is refuting such thoughts. So what is going on? Well, the housing market has slowed, as any realtor or new homebuilder will gladly tell you. But mortgage interest rates are still quite low and were even dropping again until recently. This continues to make the housing sector desirable, especially as prices are declining in a softening market.

If you own an existing home and you want to sell now, you probably won't fetch as much money as you would have a year ago. In fact you will probably have a hard time getting people to even come and view your house as inventories rise and the market is tilting heavily toward buyers for the first time in about five years.

All in all, U.S. home sales are down about 8 percent over the past year. But it's important to remember that the decline follows a red-hot housing market that was destined to cool off eventually. And even then, the numbers continue to contradict themselves. For example, the Commerce Department reported this week that spending on private residential construction projects fell for the ninth consecutive month in December, pushing total construction outlays down by 0.4 percent. But for all of 2006, construction outlays were still up 4.8 percent.

And the number of mortgage loan applications rose in January, even though the figure is down from a year ago. So what's the message? Well, certainly those who watch the housing industry like to think that they have hit bottom. And the Federal Reserve Bank even hinted at this in its message about the economy yesterday. But that may be a lot to expect. Housing surged so much over the past few years that a little correction may not be enough. Nevertheless, as long as interest rates remain low (and kudos to the Federal Reserve Bank on that note), the cost of financing a new home will still be affordable for most Americans.

If pricing remains soft, as it has been in much of the country, people will continue to buy homes. They may not buy as many new half a million dollar homes, but they will buy homes. If you are a home seller, the thing to remember is that the easy days may be over for a while. No longer can you list your home and hope for competing bids. So if you need to sell, consult with your realtor about how to make your house more attractive on the market. The short list: paint. It's the cheapest and best thing a seller can do. And look at any deferred maintenance that might come up in an inspection report. A new water heater, clean carpets, even a thorough scrubbing of the kitchen and bathrooms can make you money. And that money becomes your profit.

Your home is a big investment. And if you need to sell right now, the environment has changed. Do your homework and be willing to make your property stand out from the rest. The good news is that when you look to buy you will find the most favorable environment in years. Every thousand dollars or so you make on that transaction is money you can put toward retirement.

Zillow "Buyer & Seller Be Ware"

Sherman Smith (Sherman Smith & Associates) — Wed, 31 Jan 2007 17:29:34 -0600

You have heard the expression "Buyer Be Ware"! Well when it comes to Zillow it is "Buyer & Seller Be Ware". Despite warnings, many people are still getting burned using Zillow as a guide to property values. Buyers are backing out of their purchases because of wrong values that were determined by Zillow. Sellers are asking over inflated values because of wrong values that were determined by Zillow. Yes, sometimes Zillow is right on.

Here are a few examples:

My own home appraised in the last 30 days had a value of $1,3 million vs Zillow at $717,000

I just closed on a condo in Anaheim at $435,000 which was the clear market value but Zillow told my seller that it had a value of $460,000

I have a listing in Irvine listed at $585,000 ( sales range at $575,000 to $615,000) Zillow says that the value is $513,000.

How about a $1.5 million dollar condo that Zillow says is worth $400,000

Newport Beach condo valued at $1. 1million, Zillow shows that it is 550 sq ft (actual 1,900 sq ft) and has a value of $1.435,000.

These are example of the erroneous values that Zillow comes up with that could effect a buyer or sellers decision. The problem is Zillow, the laughingstock of the real estate business, is just grossly inaccurate. And it cuts both ways, often coming in outrageously high or low, depending on the property. So use Zillow at your own risk if at all.

Now a word from my attorney: This is just the opinion of Sherman Smith and is not to be relied on as to the accuracy of Zillow.

Sale By Owner...Is It Right For You?

Sherman Smith (Sherman Smith & Associates) — Wed, 31 Jan 2007 16:50:16 -0600

Sale By Owner...Is It Right For You?

Many homeowners believe that to maximize their profit on a home sale they should sell it themselves. At first glance, they feel selling a home is simple and why should they pay a broker fees for something they could do themselves? In fact, close to 15% of all the homes sold last year in Orange County were sold for sale by owner (FSBO).

However, almost half of the FSBO's said that they would likely hire a professional next time they sold their home. Thirty-five percent said they were unhappy with the results they achieved by choosing FSBO. Why?

Here it is. Many FSBO's say that the time and selling process, paperwork and everyday responsibilities involved were not worth the amount of money they saved in commissions. For others, the financial savings were even more disappointing. By the time they figured the amount of fees paid to outside consultants, inspectors, appraisers, title companies, escrow and loan officers, marketing, advertising... they would have been better off having paid the broker's fee which would have included many of these charges up front.

Selling a home requires an intimate understanding of the real estate market. If the property is priced too high, it will sit and develop a reputation for being a problem property. If the property is priced too low, you will cost yourself serious money. According to the National Association of Realtors (NAR), FSBO's get 11% less money doing it themselves. FSBO's discovered that the lost money as a result of poor decision of not using a professional trying to save a few bucks in commission.

Before you decide to sell FSBO, consider these questions and weigh the answers of assuming the responsibility versus employing a professional. A little time spent investigating up front will pay off tenfold in the end.

Questions To Consider:

Do I have the time, energy, know-how, and ability to devote a full forced effort to sell my home?
One of the keys to selling your home efficiently and profitably is complete accessibility. Many homes have sat on the market much longer than necessary because the owner was unwilling or unavailable to show the property. Realize that a certain amount of hours each day is necessary to sell your home.

Am I prepared to deal with an onslaught of buyers who perceive FSBO's as targets for low balling?
One of the challenges of selling a home is screening unqualified prospects and dealing with lowballers. It often goes unnoticed... how much time, effort and expertise it requires to spot these people quickly. Settling for a lowball bid is usually worse than paying broker commissions. You see most buyers already know going in that you don't have any real estate commissions to pay, so they tend to start out lower. Plus they feel you really don't know the market value of your home anyway.

Am I offering financing options to the buyer? Am I prepared to answer questions about financing?
One of the keys to selling, whether it's a home, a car... anything, is to have all the necessary information the prospective buyer needs and to offer them options. Think about the last time you purchased something of value, did you make a decision before you had all your ducks in a row? By offering financing options you give the home buyer the ability to work on their terms and open up the possibilities of selling your home quickly and more profitably. A professional real estate agent will have a complete team, from lenders to title reps for you to utilize...they'll be at your disposal.

Do I fully understand the legal ramifications and necessary steps required in selling a home?
Many home sales have been lost due to incomplete paperwork, lack of inspections or not meeting your states disclosure laws. Are you completely informed of all the steps necessary to sell real estate? If not, a professional would be a wise choice. Making a mistake here could be disaster.

Do I have the capability of handling the legal contracts, agreements and any disputes with buyers before or after the offer is presented?
Ask yourself if you are well versed in legalese and if you are prepared to handle disputes with buyers. To avoid any disputes it is wise to put all negotiations and agreements in writing. Many home sales have been lost due to misinterpretation of what was negotiated.

Have I contacted the necessary professionals....title, inspector (home and pest), lender and Title company?
Are you familiar with top inspectors and Title companies? Don't randomly select lenders, inspectors, and title reps. Like any profession there are inadequate individuals who will slow, delay and possibly even cost you the transaction.

If you have any other questions concerning selling your home, you will find many FREE Reports by visiting http://www.shermansmith.com/.