Elkhorn, NE

It is shocking...APPALLING, how insanely slow the short sale process is. I just had buyers write up a stellar offer, one that honestly, I didn't really even condone because they wrote it for more than the home sold for in 2008 (of course they were asking for thousands in closing costs, but still)...They were going against another offer, really wanted the house, so chose to write a pretty amazing offer...

Let's take a step back and explain what a "short sale" is: The seller owes more on the home than the home can be sold for due to market conditions, so they ask the bank to eat the difference because the seller is broke. This definitely will ding the seller's credit for future credit needs, but everyone gets out with the least cost

We waited 3 weeks with absolutely no word. I obviously know how this process works and that most people can wait as long as 3 months to even hear a single thing on where their offer stands, which naturally I always let the buyer know about this little caveat. Short sales are great in theory, to avoid the dreaded foreclosure, but very few buyers have the patience to wait that long, in limbo, about where they are moving, whether they should be planning on it...It's just not easy on a person to withstand. (Are you listening bank executives, the process has a serious, fatal flaw!)

For any buyer I am first taking out, I always explain short sales to them so they can decide if we should even bother looking at them. Most of the time, the buyers opt out because of the time issue. Short sales do offer the allure of being (usually) a great deal, so there is some incentive there...But time is money, and if the deal isn't going to go through, the buyer doesn't want to lose out on the opportunity that another "great deal" of a home is passing them by. Days, weeks, and months of waiting usually breaks the person. There are some really great deals in homes that aren't short sales, which is exactly what my buyer found, rescinded their offer, and now will get the exact same home for less, without the hassle. I feel better for my clients. They are happier all around.

This particular mortgage was held by Citibank. I am always shocked over and over that the banks have not streamlined this process to allow for a timely transaction. I can understand giving them a week, even two, but months is really too long. For as many times Citibank or any bank has to go through this, you would have thought they would have figured out a better system! The issue of short sales has been exacerbated by the recession and crash, but there are always short sales in any market, so this is not some new ballgame they are trying to figure out.

It is best for everyone, the bank, the seller, the buyer to buy the home through a short sale rather than foreclosure...So come on bankers, let's figure out a way we can allow a buyer to buy, a seller to sell, and the bank to cut their losses, where everyone wins.

Short sales in my opinion are far better for the bank because...

They usually sell the home for more. The seller is still living in it, taking care of it, so the cost alone of the home still being in good shape is paramount. Anyone that has been around for a while has seen one too many foreclosures that have their pipes burst from not being "winterized" in a timely manner from when the property is vacated, here in Nebraska where we have very harsh, drastic changes in weather...

Mold then flourishes, smells, damaged interiors all result...If the water penetrates the foundation then we have a structural issue. And oh the smell of mold... Its a smell imprinted on my brain. They all smell the same, those foreclosures. I get the great joy of being reminded of its true potency every time a happy, jolly, naive buyers takes a peek through a foreclosed home and shudders as they step through the entrance.

Short sales are such a great idea to cut the banks losses, retain some dignity of the property, give the buyer a good deal, relieve the seller from the burden of their home...Except the process is fatally flawed to allow for a smooth transaction. What is taking the banks so long to figure out that their system needs revamping???

Just another rant on real estate provided by your local Omaha stellar, amazing, beautiful, hilarious, confident, top notch, real estate agent.. (no stop, now I'm blushing...oh wait, I'm writing it ; )

Colleen Lang Woodward

REMAX The Producers

www.ColleenWoodward.com

Oh inspectors, you are so delightfully thorough! I don't think buyers or sellers know what to expect when it comes to the home inspection. Sellers should be nervous and buyers need to keep the inspection into perspective.

The inspector has every obligation to the buyer to note every possible thing about the home and its property, down to the handle that jiggles funny, the light bulb that's out, the window that squeaks when it opens, and every settling crack found on the concrete. I love that inspectors do this because buyers only spend about an hour maybe two in the home before they own it. That is not very much time at all when you think of this being the home you live in. Inspectors go in and do all of it for you. Even in a small home, the inspector I use spends a good three hours in the home. There is a lot to find out.

Sellers should be worried because yep, he's going to find every little thing you have lived with and not thought about as being an "issue" and he is going to find probably a lot of things you don't even know about because after all when was the last time you climbed in your attic with a flashlight or walked your roof looking for concerns or looked to see how clean your A/C or heating unit is?! The inspector will find it, otherwise he isn't doing his job AND he is held liable (as in: can be sued for not finding and disclosing it) for disclosing everything big and small to the buyer.

I was writing up an addendum to a home inspection that needed a radon mitigation system, which runs about $1000 bucks and a new fuse panel along with grounding all the outlets for 3 prong wiring in the home...This is an example of some pricey repairs. The buyer asked, " Do most people ask for repairs like this," and after thinking on this, I said yes. Even if the repairs in general are nothing and the worst the inspector could find was that the A/C needed cleaned, well that is the worst repair to the buyer, so the buyer wants it fixed, so it all becomes a matter of perspective. Major things should be asked for because the thing to ALWAYS keep in mind is that as soon as something is found in the inspection it becomes the seller's legal obligation to disclose it to EVERYONE so if they are going to have to fix it anyway, might as well fix it for you! And the buyer has to realize if they don't ask for it to be fixed and it needs it, that liability is now in their hands once they own the home and will have to deal with it when they go to sell it.

Buyers need to realize that the inspector HAS TO mark everything down that is even the slightest of concern, but do they really need to ask for the light bulb to be replaced and the handle that jiggles to be tightened with a screw before they move in? I suppose it depends on the buyer, but every home, even new construction will have their issues and most of what the inspector is there for is not these nit-picky things, but the meat. Inspections are meant to be for major defects, these are the things that matter and affect the purchase of the home. A light bulb being out or a screw being loose are not going to make one home more valuable than another. I consider a major defect to be one that does affect the value and demand for a home. A home that has radon would scare people off, thus affecting the value of the home by limiting its pool of buyer's further.

For both buyers and sellers, I would say to take a deep breath and really consider what is found in the inspection. The inspector will note everything, so do not be pulled in by all the red ink that notes a crack as a "falling hazard". REMEMBER: They have to be sure they note every hazard possible because of the liability of their work, not because any normal person believes that it's a "falling hazard", it's kind of silly the things they have to note. So weed through and be sure to focus in on the true hazards, don't get sidelined and confused by things that don't.

Sellers: If it's a major defect, might as well fix it because once you have seen the documentation that something is an issue, you have to put it in your seller disclosure for the next buyer and trust me, buyer's do not want to see anything that is a problem before they even buy a place, it makes them think that less obvious things lurk beneath. They get a little jittery and scared of what else you may be hiding and not fixing. Fix it and move on.

Selling Homes in the Omaha Area Metro: Good Ole Nebraska Pride

www.ColleenWoodward.com

REMAX The Producers: Top Agents

I want to thank Doug Steinkruger at NP Dodge for assisting in the sale of 20129 Douglas St. in the Elk Valley subdivision of Elkhorn. Doug represented the buyer and did a fine job of staying on top of the details. Working with a good agent makes my job much easier; it is time consuming selling 50 homes a year, but working with good agents makes transactions easier.

Trumm Team - Alliance Real Estate, Omaha, NE

Your Home Sold within 120 Days or I will Buy It!