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Short sales: learn to anticipate what to do next

Short sale transactions can be a frustrating process, but you can win the game by anticipating all of the possible moves on the board.

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short sale

How a short sale is like chess

There’s no question that a listing agent needs to understand the nature of his or her listing. Not only must the agent know the number of bedrooms, bathrooms, square footage and lot size, but the agent must also understand much more about the property and anticipate any issues that may arise in the future sale.

A good chess player can look at a chessboard and anticipate the opponent’s next move. A good chess player also prepare for that future move well in advance. The same goes for real estate. Like a skilled chess player, a savvy agent can anticipate the direction of the sale and prepare for any hiccups or hurdles well in advance. While this is certainly the case with all real estate transactions, it seems even more important with short sale transactions.

Three things to anticipate

Want to improve your short sale game? Here are three things that you may want to anticipate well in advance:

  1. Will the property require significant repairs? If the property will require significant repair work (such as the need for a new roof or a new oil tank) and this impacts the market value, then the listing agent will need to prepare a packet of information for the short sale lender that demonstrates the issues at hand. This packet should include multiple bids and photos of areas needing repairs.
  2. What kind of buyers will be able to purchase the property? Based on the location and the quality of the home, it’s possible that the property will not qualify for certain types of financing—such as FHA, for example. If that’s the case, then it’s important to keep that in mind when reviewing offers with your seller.
  3. Is the home located in a Homeowner’s Association (HOA)? If the home is in an HOA, then the buyer’s lender may look at the HOA’s financials before permitting the buyer to obtain a loan on the property. If there is a low owner-occupancy ratio or a high delinquency rate, then any buyer obtaining a loan may run into some trouble. In this case, it may be better for the seller to review cash offers on the property.

There’s nothing worse than working on a short sale for five months and obtaining your short sale approval letter only to learn that the buyer doesn’t qualify to purchase the property. Sadly, because of the nature of the short sale process, most lenders require that the short sale listing agent (or short sale negotiator) start the process over from the very beginning with the replacement buyer. So, if you don’t want to add another three months to your short sale, it’s best to win the short sale game by anticipating all of the moves well in advance of the end of the game.

Melissa Zavala is the Broker/Owner of Broadpoint Properties and Head Honcho of Short Sale Expeditor®, and Chief Executive Officer of Transaction 911. Before landing in real estate, she had careers in education and publishing. Most recently, she has been able to use her teaching and organizational skills while traveling the world over—dispelling myths about the distressed property market, engaging and motivating real estate agents, and sharing her passion for real estate. When she isn’t speaking or writing, Melissa enjoys practicing yoga, walking the dog, and vacationing at beach resorts.

Austin

Austin tops the list of best places to buy a home

When looking to buy a home, taking the long view is important before making such a huge investment – where are the best places to make that commitment?

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Looking at the bigger picture

(REALUOSO.COM) – Let us first express that although we are completely biased about Texas (we’re headquartered here, I personally grew up here), the data is not – Texas is the best. That’s a scientific fact. There’s a running joke in Austin that if there is a list of “best places to [anything],” we’re on it, and the joke causes eye rolls instead of humility (we’re sore winners and sore losers in this town).

That said, SelfStorage.com dug into the data and determined that the top 12 places to buy a home are currently Texas and North Carolina (and Portland, I guess you’re okay too or whatever).

They examined the nerdiest of numbers from the compound annual growth rate in inflation-adjusted GDP to cost premium, affordability, taxes, job growth, and housing availability.

“Buying a house is a big decision and a big commitment,” the company notes. “Although U.S. home prices have risen in the long term, the last decade has shown that path is sometimes full of twists, turns, dizzying heights and steep, abrupt falls. Today, home prices are stabilizing and increasing in most areas of the U.S.”

Click here to continue reading the list of the 12 best places to buy a home…

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Housing News

Average age of houses on the rise, so is it now better or worse to buy new?

With aging housing in America, are first-time buyers better off buying new or existing homes? The average age of a home is rising, as is the price of new housing, so a shift could be upon us.

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aging housing inventory

The average home age is higher than ever

(REALUOSO.COM) – In a survey from the Department of Housing and Urban Development American Housing Survey (AHS), the median age of homes in the United States was 35 years old. In Texas, homes are a bit younger with the median age between 19 – 29 years. The northeast has the oldest homes, with the median age between 50 – 61 years. In 1985, the median age of a home was only 23 years.

With more houses around 40 years old, the National Association of Realtors asserts that homeowners will have to undertake remodeling and renovation projects before selling unless the home is sold as-is, in which case the buyer will be responsible to update their new residence. Even homeowners who aren’t selling will need to consider remodeling for structural and aesthetic reasons.

Prices of new homes on the rise

Newer homes cost more than they used to. The price differential between new homes and older homes has increased from 10 percent traditionally to around 37 percent in 2014. This is due to rising construction costs, scarcity of lots, and a low inventory of new homes that doesn’t meet the demand.

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Housing News

Are Realtors the real loser in the fight between Zillow Group and Move, Inc.?

The last year has been one of dramatic and rapid change in the real estate tech sector, but Realtors are vulnerable, and we’re worried.

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zillow move

Why Realtors are vulnerable to these rapid changes

(REALUOSO.COM) – Corporate warfare demands headlines in every industry, but in the real estate tech sector, a storm has been brewing for years, which in the last year has come to a head. Zillow Group and Move, Inc. (which is owned by News Corp. and operates ListHub, Realtor.com, TopProducer, and other brands) have been competing for a decade now, and the race has appeared to be an aggressive yet polite boxing match. Last year, the gloves came off, and now, they’ve drawn swords and appear to want blood.

Note: We’ll let you decide which company plays which role in the image above.

So how then, does any of this make Realtors the victims of this sword fight? Let’s get everyone up to speed, and then we’ll discuss.

1. Zillow poaches top talent, Move/NAR sues

It all started last year when the gloves came off – Move’s Chief Strategy Officer (who was also Realtor.com’s President), Errol Samuelson jumped ship and joined Zillow on the same day he phoned in his resignation without notice. He left under questionable circumstances, which has led to a lengthy legal battle (wherein Move and NAR have sued Zillow and Samuelson over allegations of breach of contract, breach of fiduciary duty, and misappropriation of trade secrets), with the most recent motion being for contempt, which a judge granted to Move/NAR after the mysterious “Samuelson Memo” surfaced.

Salt was added to the wound when Move awarded Samuelson’s job to Move veteran, Curt Beardsley, who days after Samuelson left, also defected to Zillow. This too led to a lawsuit, with allegations including breach of contract, violation of corporations code, illegal dumping of stocks, and Move has sought restitution. These charges are extremely serious, but demanded slightly less attention than the ongoing lawsuit against Samuelson.

2. Two major media brands emerge

Last fall, the News Corp. acquisition of Move, Inc. was given the green light by the feds, and this month, Zillow finalized their acquisition of Trulia.

…Click here to continue reading this story…

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