Taunton, MA

This market is overwhelmed with agents who haven't any experience in short sale properties. It can be a daunting experience for the sellers and the buyers.

My most recent short sale involved sellers who placed their home on the market with 2 different agents in 2 years prior to listing the home with me.

The first agent grossly overpriced the home, listing it as a regular listing. In the meantime, the sellers had such high hopes of selling for a price that never would be.

Hence, the listing expired, and in walks agent number 2 who also overprices the home giving the sellers high hopes of selling the home at a profit.

When the listing expired again, the seller called me. The first conversation with the sellers didn't go as well as they would have liked. Market statistics don't lie. If a home's market value is less than what the seller wants, it will not sell, short sale or not.

Long story longer.. the sellers owed the bank $100,000 more than market value.. YIKES! I listed the home at a lower price, reduced the price 3 times ( at the mercy of the sellers bank of course), then finally sold the home for full market value.. (not what the seller owed)

Sellers who are in financial trouble should be extremely honest with their agent. As professional agents, our responsibility is to protect your honor and keep conversations confidential.

Most sellers believe that their home will sell for a higher price than last year.. yes, even with all of the media stories on how our market is declining.

In this market, if an agent quickly agrees to list your home for what you want, without documenting and verifying market data, be cautious. Some agents just like to place their sign in the front of your yard for publicity only.

There is much education involved in the short sale process. I will be happy to provide a free, no obligation consultation.

You can reach me at 508-878-0917

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Lori Lincoln, Taunton Massachusetts area Realtor

Keller Williams Realty

email: lorilincoln@kw.com

http://www.LoriLincolnTeam.com

Lori Lincoln, Keller Williams Realty lists and sells property in Taunton, Rehoboth, Swansea, Somerset, Fall River,Bristol County Massachusetts and surrounding communities http://lorilincolnteam.com

There has been much chatter about the deals to be had in purchasing shortsale properties.

First, let me explain what a short sale is:

A short sale is when a seller places their home on the market subject to their banks approval to take less than what they owe.

For an example: Mary owns a property she is in danger of losing to foreclosure. The home has a mortgage note in the amount of $300,000. Fair market value is $250,000. The seller will need to obtain approval from their bank to take a lesser amount than what is owed. They would need to show hardship. 20% of short sales will be approved by the sellers bank.

All buyers need to know this information prior to making an offer on a property. The buyer also must know that the sellers lender may not accept the offer. When a buyer places an offer on a property, a good agent will give you a Short sale disclosure to sign.

Short sales can also take months to complete. Buyers must be patient when they decide to make an offer on a short sale property.

Other pitfalls:

1. Sellers usually aren't motivated to keep the property in perfect condition, so the buyer can be left with debris, garbage, and some of the sellers possessions.

2. The sellers bank usually wants what they want when they want it. The sellers bank is control, and the property must be bought "as is".

3. Beware of signing on with a buyers agent that doesn't know the every detail of short sale procedure.

Unless you prepare yourself emotionally for the short sale experience, don't even look at them. This could be the roller coaster ride of your life.

If you are a patient and flexible person, the BIG benefit of buying a short sale is usually instant equity.

I hope that I explained the basic process well enough for you to understand. If you have questions on short sales, foreclosures or anything real estate related, please call me at 508-878-0917.

You can also email me at lorilincoln@kw.com

My website is http://LoriLincolnTeam.com

Lori Lincoln is a Realtor with Keller Williams Realty and services buyers and sellers in Taunton, Rehoboth, Somerset, Swansea and All of Bristol County MA and surrounding areas.

Some analysts predict that market conditions will continue to deteriorate, as foreclosure activity mounts and more homes are sold at discount prices.

It's a simple supply-and-demand situation. We have an oversupply of homes for sale and unfortunately we have dwindling demand, not because interest rates are so high - they're not - but because buyers are cautious, especially first-time buyers. They don't want to buy a house and find out a year later that the price is 10 percent to 15 percent lower than they paid.

We have a lot of people sitting on the fence because they are concerned with what's happening with the economy.

But what we do have is opportunities. Every market has a cycle and every cycle is an opportunity for someone and this is a cycle for first-time buyers, especially because of new conforming loan rates!

Homeowners who are selling properties that appeal to first-time buyers also can benefit. You'll get less for the home you're selling but you'll be paying less for the home you're buying.

Bobbie Files
www.BerkleyMass.com
bobbiefiles@kw.com