The home has 3BR and 1BA with a nice yard.  It is listed for just $84,000!  Rents in that area are going conservatively at about $1,095 per month and the tenant pays all utilities. Where else can you get a return like this for such a small investment? 

Bring us your offers

Weekly Statistics

The chart below shows new listings for the week.

08/29/2010 – 09/04/2010         

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In Folsom in the past 12 months 22% of the homes sold were short sales. In El Dorado Hills during that same term, 23% of the homes sold were short sales. In that respect, the numbers in the Sac Bee article were pretty close.

What this tells us is that even in highly desirable areas like Folsom and El Dorado Hills, homeowners are in trouble. They are reaching out for help by listing their homes as a short sale. What is important to note is that not all short sales are the disaster that the Sac Bee article claims. 

When you choose an agent that understands how the short sale system works and what it takes to be successful in a short sale, the process is not always the nightmare as described. Why? Because when the buyer is informed about the truth of the situation by a qualified agent, they know what to expect.

Sadly, many agents who list a property as a short sale are not qualified. You can know prior to listing your home how likely it is that the bank will accept your home as a short sale. It's a simple formula.  

As for the agent representing the buyer, does that agent ask the listing agent the right questions to know how viable this deal is?  If that buyer's agent knows the questions to ask and what the answers mean, they can prepare their buyer for the truth about the likelihood of this home being accepted by a bank as a short sale.

When buyers and sellers know the questions to ask as well as what the answers mean, they will know if the home they seek is likely to be a smooth transaction as well as how long the transacation is likely to take. Knowing the truth makes it more palable.

Not all short sales are nightmares. There has never been a time when choosing the right agent has been more important than with a short sale. When your home is at stake, you deserve the best representation.  Choose wisely.

I.  TRY TO SELL THE HOME YOURSELF

The National Assn of Realtors tracks statistics and they show that when you compare the price a seller gets when they list the home with a Realtor can be as high as 20% more than when the seller attempts to sell the home themselves.

Though shocking at first, it makes sense. After all, the agent is a professional skilled at selling homes. Selling a home is more than just putting a sign in the yard and listing it in MLS.

Marketing 101 says that you have to be everywhere because you don't know where your buyer is. Buyers know that they get the services of a Realtor for free and that Realtors have access to 99%+ of the homes on the market.  With that in mind, why would a buyer not work with a Realtor?

In a market where prices are decreasing every month, when you don't have proper exposure, you potentially have to mark the price of your home down, repeatedly. When you finally list with a Realtor because selling it yourself did not work, the price is almost always lower than it would have been if you'd listed it with a Realtor in the beginning.

II. CHOOSING THE WRONG AGENT

In point #1 above, we address the importance of marketing the home and giving it maximum exposure. The negotiating skills of the agent have a lot to do with how much money you will get from the sell of your home. This is why choosing an agent with exceptional negotiating skills puts more money in your pocket.

An important statistic to know when choosing your listing agent is what is their average sales price as a percentage of the list price.  In Folsom, the average agent sells at about 98% of the list price. In El Dorado Hills, the average agent sells at about 97% of the list price. How do the top agents compare to the average agent on this statistic?

Some are below the agent average, according to the statistics. What might this mean to your bottom line? If we assume a $400,000 list price, with one of the top agents in our market, you would get just $363,400. Choosing another agent for the sale of the same home could garner you $394,120. That $30,720 is money you could have lost by choosing the wrong agent.

Selling your home is a huge financial decision that is worth taking seriously. Since you want the most money from the sell of your home, choose the right agent. It pays to choose wisely.

Weekly Statistics

The chart below shows new listings for the week.

08/22/2010 – 08/28/2010         

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Weekly Statistics

The chart below shows new listings for the week.

08/15/2010 – 08/21/2010         

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In Folsom, of the 45 homes that sold in July 2010, 8 of them were short sales and 9 were REO (real estate owned otherwised known as bank owned). When you compare that to July 2009 when 71 homes sold, 20 were REO and only 5 where short sales.

In El Dorado Hills, of the 52 homes that sold in July 2010, 10 of them were short sales and 12 were REO.  In July 2009, 74 homes sold in July, 23 were REO and 10 were short sales.

Clearly the total number of homes and the number of REO homes that are selling went down significantly during the past year while the number of short sales sold are flat or slightly up depending on the area. Buyer's, if you want to consider all homes that are available, consider short sales as they are an increasing part of the available inventory. When you work with an experienced agent, buying a short sale often does not take much longer than a traditional sale.

We had a listing of a home at $27,500. The market value of the home was about $65,000 based on what was selling in the immediate area.  How much do you think the home home sold for?  The answer is $75,000.

You see by listing the price so low, an auction effect was created thus driving up the price.  We received over 50 offers on this home.  What can  a seller learn from this story?

Buyer's decide what to pay for a home and seller's decide if they will accept what the buyer will pay. If the seller says yes, they have a sale. If the seller says no, the home remains with the seller. 

In Folsom in July 2010, only 45 homes sold while 248 were listed. That means only 18% of the homes that were listed actually sold. Did the 45 that sold "give their home away"?  No, they decided that they were going to sell and they accepted the "market" price that buyer's offered. They also moved on to the next phase of their life.

In El Dorado Hills during that same time, only 48 homes sold of the 289 that were listed. That's only 17.7% that sold. The point is that when you need to sell, listen to the "market". Otherwise, you can remain where you are, essentially the buyer of your home rather than moving on with your life.  

If you are one of the myriads of people who are having trouble making their mortgage payment, there is one critical thing you must decide before taking action to resolve your situation.

Do you want to remain in the home? 

The answer to this question is key because there are several potential solutions available to a distressed homeowner. People typically jump to foreclosure as the only option to someone who cannot pay the mortgage. However, did you know that there are fully 10 other possibilities? The key is to choose the one that is best for you and your family. 

If you want to stay in your home, there are 6 possibilities to consider.  If you want to leave your home, there are 4 possibilities. Remember Steven Covey's habit of "begin with the end in mind"? That is especially good thinking for the distressed homeowner.

A second question to ponder is

For How Long? 

Many people make a decision based on an unrealistic time frame.  You may want to stay in the home for another year and then leave. If this is you, be aware that it is important to know the ramifications of that 1 year time element.   

There is no one right answer and yet, having the facts can help you make the best decision. Take heart that this is not a forever situation. There is light at the end of the tunnel.

Weekly Statistics

The chart below shows new listings for the week.

08/08/2010 – 08/14/2010         

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Weekly Statistics

The chart below shows new listings for the week.

08/01/2010 – 08/07/2010         

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Monthly Statistics

The chart below shows new listings for the month.

07/01/2010 – 07/31/2010         

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Weekly Statistics

The chart below shows new listings for the week.

07/25/2010 – 07/31/2010         

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