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Short Sales & Foreclosures, What A Tragedy

November 9, 2011 By Leave a Comment
by: Ken Smith

How would you feel if losing your home were imminent, your credit were about to be trashed, and your personal pride destroyed? For homeowners who have gotten way behind on mortgage payments, there are alternatives to foreclosure and financial devastation. A “short sale“, aka, “pre foreclosure” is one option that can provide a positive outcome.

A pre-foreclosure could be a good time to create a win-win situation for everyone involved. This is the point at which both lender and homeowner can agree to some terms, and the family does not have to vacate the property. It also means the property won’t sit empty, and end up becoming a below market sale. There have been cases where the previous owner is able to recover and then return to making the payments.

A foreclosure occurs when a short sale fails to happen, the owner defaults on his mortgage, and the bank takes ownership through a court ordered sale in a public auction. Once the lender is deeded the property, it becomes known as an REO (Real Estate Owned). This can be avoided if the owner, prior to a foreclosure is able to sell their home, for less than what is owed the lender, with the mortgage holder’s permission.

When a property is presented as a below market opportunity, as a foreclosure, it means the lending institution needs to get it off their books, and the property may have been sitting empty for an extended period of time. In these cases, there could be considerable repairs, and other work involved, in bringing the property back up to codes. These are the properties which could be considered a good deal by investors.

Foreclosures and short sales don’t have to be viewed as bad words. There are plenty of properties that end up in foreclosure & pre-foreclosure that was not a result of trashy people failing to make the mortgage payment. Often these properties can be purchased at reduced prices, and there are some possibilities of assistance to the homeowner, under certain financial conditions.

Learn more about Ken Smith and luxury homes for successful investing, and for taking advantage of below market opportunities. We also provide insights on how to help homeowners & sellers avoid costly mistakes in pre-foreclosure.

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Don’t miss this “Once in a generation” Home Market

July 25, 2011 By Leave a Comment

“…this may be a once-in-a-generation buyer’s market.” Yes, that’s what CBSMoneyWatch.com last month suggested we are seeing as they joined other real estate experts in recommending that those who are in a position to buy a home — especially those who want to stay in their homes for 5 years or more — take advantage of one of the best buyer’s markets we’ve seen.

Mark Zandi from Moody’s Economy.com said it well when he told NPR (Nt’l Public Radio) earlier this month: “I think the arithmetic is such that if you plan to live in your home five or more years, then you should really consider buying a single-family home in most parts of the country at this point in time.”

Here in the Raleigh area, homes for sale trends are certainly in line with these national stats, at virtually every price point from starter homes to luxury estates.

Speaking of prices, the graph at right shows the projections JP Morgan and Macro Market Survey are making for home prices over the next 4 years: slipping a little more through the end of this year (note that refers to the market average overall in large part because of distressed properties, selling at reduced rates, working their way through the system — this doesn’t necessarily mean that all individual home prices will drop so precipitously). But note the expectation that they (and others) share: we should return to steady appreciation as we move forward into 2012, 2013 and 2014.

Since mortgage rates on average have been climbing for the past year, and that’s not expected to change, your best balance of home price and mortgage cost (which combine to make up the TRUE COST of buying a home), is during this year’s window of opportunity.

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Follow Up for Selling Success

July 25, 2011 By Leave a Comment

Who likes to follow up on a sale that hasn’t converted? Successful sellers, that’s who! There’s a long-standing truism in sales of all kinds — maybe you’ve heard it? — “the fortune is in the follow-up.” Here are some of the follow up lessons I’ve learned:

During the follow-up call, you can help yourself stand out and/or be more memorable than competitors; do it well and you’ll also be creating an opportunity to extend the conversation and open doors — with this prospect, and others too.

Your aim here is not just to sell that prospect, but to have an interaction that helps you learn whatever you can about the factors the prospect is considering during their decision-making process. The more you know, the more you have to discuss, and often the more you can learn about the way your product, service or, in our case, our client’s home, is being regarded. Which will improve your ability to position your product, service or home next time.

What sort of follow up techniques are most successful?

  • Ask meaningful questions;
  • Listen well;
  • Act on what you learn.

Open-ended questions (those that can’t readily be answered with a simple yes/no), are best. Go beyond a vague “So, what did you think?”; prompt them to share their reactions to specifics. Even something as simple as “what did you find most appealing?” can begin to draw a genuine prospect out. Without turning the discussion into an inquisition, be curious about people’s feelings, motivators, reactions — really focus on genuine interest and learning about that person’s experience of whatever you’re selling.

When we’re selling a home, we typically follow up with the agent by phone or email; we also often work with a service that provides a short feedback form, which we review and also share with the home seller. Through it we ask several key questions that can help us gauge the buyer’s interest, and also get valuable feedback on the property itself. Gathering and acting on this information, no matter what you’re selling, is critical to success!

In our business we’re in partnership with the seller, so part of our job is to help clients evaluate the feedback and decide what actions to take. By obtaining in-market observations on the condition of a home and its pricing, we can keep strengthening our client’s position in the market and increase the likelihood that the home will sell at the best price.

To boost your own selling success, use the insights you gather to build on your strengths, and find ways to downplay your weaknesses.

However you choose to follow-up in your business, keep an open mind and a genuine curiosity and you’ll be increasing your odds of selling success. And if you want professional help selling your home, of course I hope you’ll call me to learn about our full-service, pick-your-rate commission structure, where follow-up is always included!

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