IS THERE SHAME IN A SHORT SALE?

In the early 90’s when real estate activity began declining along with home values, I began doing short sales. Lots of them. They were sad, painful, and tough to do. What would shock me was the homeowner’s reaction to being in financial trouble and how they handled it. At least 50% of the clients who contacted me did so long after they should have. When I asked why they did not deal with the issue sooner, most could not give any answer. Finally they would say “I thought there was a way out”. There was denial, and shame about what had happened.

Most of the shame has been eliminated in today’s market. Plus for one more year the government is giving homeowners a present if they do a short sale. They voted to extend the Debt Forgiveness Act until 01/01/14. What this means is that normally the homeowner would pay tax on the amount of debt that was forgiven in the short sale. So if your loan amount was $600,000 and the bank agreed to be paid $500,000, the $100,000 would be considered income. However, for this year the government is agreeing to forgive those taxes on that income. Depending on your tax bracket, you might owe $15,000-$30,000. Another reason for doing a short sale is you get rid of an investment that is worth significantly less than what you paid. How long will it take for that value to come back to the price you originally paid? Plus any money you put into that property could be put in another investment that earns you a positive return immediately rather than a negative one. Once I show sellers what they can save and how much further ahead they will be by doing a short sale, they see the financial sense. Plus get rid of the weight of being harassed by lenders or collection agencies. How could there be shame in that?

Why does your Realtor need to be a marketing expert in today's market?

          This market makes or breaks agents. To be effective they have to know what causes a home to sell, plus be able to advise the homeowner on everything from paint colors to staging of the home.

          There are thousands of ways to expose your home to possible buyers. These include the Multiple Listing Service, print media, internet marketing to the consumer, internet marketing to the agent, specialty advertising, niche internet sites for types of properties and buyers, social media, direct mail and much more.

Most agents put your home in the Multiple Listing Service, run a few ads in the local newspapers, put your home’s ad in their pretty glossy company magazine, and on their company and personal website. Using those methods the average Realtor sells a home in approximately 83 days*.

I and my Team have a comprehensive PRE-MARKETING CAMPAIGN AND PROPERTY PREPARATION TEAM that helps you with everything from what color to paint your home, what flowers to put in the front yard, what to fix, and how to stage your home to look like it came right out of a magazine; all cost effectively.

With our program, our average "days on market" is 38.

TIME IS MONEY. I GUARANTEE YOU THAT YOUR HOME WILL SELL MORE QUICKLY AND FOR MORE MONEY BY USING OUR PRE-MARKETING CAMPAIGN AND COMPREHENSIVE TEAM TO GET YOUR HOME “MARKET READY”.

What is the strongest skill your Realtor should have?

Is it the ability to market your property?  The number of years experience the Realtor has?  The number of transactions in the past year?  Actually, it’s how well your Realtor listens to you and communicates with you throughout the process of listing or selling you a home.  And, it’s their ability to negotiate with you and prospective buyers/sellers.

Why is this so important?

For many reasons that are both obvious and not so obvious.  A successful Realtor is involved in the details of buying or selling real property on a daily basis.  You’re not.  You want to work with someone who will listen carefully to your questions and answer them in a timely and detailed fashion.  The current real estate contract has a 17 day rescission period during which a buyer will inspect, investigate and evaluate your home.  You need to have someone who is on top of this process, negotiating solutions for termite work, roof work, chimney work, physical inspection items, escrow periods, times frames, costs, etc.  Each of these requires a real estate professional that listens to you and negotiates in your very best interest.

Dear Friends...

Dear Friends,

This time of year is wonderful for many reasons.  First, we should look back on some of the very trying times including our current economy, the recent wind storm, or the Station Fires. These incidents make us appreciate our homes and what we continue to enjoy when the day is done.  Also, It should cause each of us to reflect on the many blessings we have and all the special people that make our lives better.  This year, I am thankful for all the wonderful trades people that assisted my clients in making repairs or helping to get their homes ready for sale. Also, for the significant number of new clients and past clients who allowed me to assist them in buying or selling their properties. They put their trust in me and I value that.

My goal for 2012 is to have my most productive year yet and to continue to satisfy the dreams of my existing clients and new clients for the new year.  I would love to be your Real Estate Consultant for life.  To that end, please call me if you have a loan question, are considering refinancing, need trades people to do work at your property, or want to buy or sell.

I want to especially thank the following people for making this year rewarding, special and filled with gratitude.

Ms. Blaine-Haines Canyon, Tujunga                             Current Electric-Mike Delaney

Mr. & Mrs. Doyle-McConnell, L.A.                                Siftar Home Inspections-Paul Siftar

Mr. & Mrs. Stanton-El Tovar, Glendale                          InsideOut Window Washing-Jim Holder

Mr. & Mrs. Fisher-Mesa Vista, La Canada                     BRS Painting-David Lee

Mr. & Mrs. Steuben-Timberlake, La Crescenta              Valley General Contracting-Shawn Eshback

Mr. Trader-San Pasqual, Pasadena                              GlenPacific Floors-Tony Martinez                 

Ms. Frost-Old Mill, Pasadena                                       Landscaping-Paco Ortiz

Mr. and Mrs. Niero-Harriman, L.A.                                Staging-Teresa Romeu

Mr. & Mrs. Green-El Vago, La Canada                          Noteworthy Movers-Mark

Mr. & Mrs. Sanders-Saint Katherine, La Canada            Appraiser-Jim Ransford

Mr. & Mrs. Liss-Encinas, La Canada                        

Ms. Clark-Stocker, Glendale

Mr. & Mrs. Gonzales-Westminster, Alhambra

Mr. Faucette & Ms. Stallard-Henrietta, La Crescenta

Mr. & Mrs. Reichley-Galaxy Heights, La Canada

Mr. & Mrs. Diaz Harriett, Altadena

Ms. Lopez, Mr. Vicchi-Belgrave, L.A.
Mr. Coldwell-Eaglepoint, Glendale

I hope your holidays are full of wonderful surprises.  

Warm Holiday Wishes,

Jennie Manders

Will the FHA Become The Go-To Financing Option For Borrowers In High-Cost Areas?

Higher loan limits have transformed the FHA into a key financing source.  For more information on this check out the LA Times story using the above link.

Spotlight: Angel Flight West

 A cause close to my heart is Angel Flight West.  This nonprofit, volunteer-driven organization arranges free, non-emergency air transportation for people who need to access to health care and other critical services. Angel Flight West's volunteer pilots donate their time, talent, airplanes and fuel to make it happen.

My husband, Alan, joined Angel Flight West as a volunteer pilot in 1993 and went on to serve on the board for six years and as the Southern California Wing Leader for four years. I have also served on the board.  Alan is currently Angel Flight West's executive director.

Angel Flight West provides more than 4,000 flights each year in California and 13 other Western states. Besides flights to access health care, AFW arranges transportation for other needs as well -- individuals and families escaping domestic violence; injured military personnel taking part in therapeutic programs; prospective parents hoping to adopt a child; and flying youngsters and teens to special needs camps like those for burn survivors or kids with cancer.

And it's all free. Since the organization started in 1983, AFW has completed more than 50,000 flights -- flights for passengers like Michelle, who was a cancer patient. In a letter to the organization, she wrote, "

“Angel Flight West has helped to give me the one thing I’ve learned to cherish the most: time.  Time with friends, time to fight my disease, and most importantly, time with my three beautiful daughters.  One more hug, one more kiss, one more I love you Mommy.  I embrace each moment with appreciation and love in my heart for the wonderful people at Angel Flight West who helped give me . . . a little more time!"

For more information, please visit http://www.angelflightwest.org/

International Home Buying Activity in 2011

            Realtor.com the official website of the National Association of Realtors will soon go global.  They will feature listings from all over the world, translations for all listings in eight languages and currency and measurement conversion services. 

            According to NAR’s 2011 Profile of International Home Buying Activity, international buyers were responsible for 82 billion worth of purchases of US residential real estate, up from 66 billion the previous year.  Realtor.com president Errol Samuelson attributes it to the strength of the dollar and the value and desirability of US real estate.  Also homes in the US are viewed as secure long term investments as rentals or for the buyers own use. 

            Last year 62% of the foreign buyers paid cash, versus 8% of domestic buyers.   This makes the foreign transactions more streamlined and even more desirable, especially when so many domestic buyers are struggling at times to get financing.

            Realtor.com receives 900,000 hits from non US buyers each month and of the 82 billion in sales last year, 70 countries accounted for those sales.  This also means that there is a huge market sitting there for realtors, with 4-5 billion in commissions in the last 12 months alone.

I am currently updating my website in order to have a page dedicated to overseas buyers and ex-pats returning to the states.  Do you have any thoughts on information I should include?  What would you be looking for in a Realtor if buying in another country?