Anna Rose

Agents / Sellers / Buyers- How much do you know about Short Sales?

My office recently had an office meeting about why it is important to get educated in knowing and understanding the market of Short Sales. I found it very interesting that a lot of agents will do a short sale, but don't know much about the process. I recently looked over the MLS and noticed exactly how many short sale properties were on the Tri-County market. It amazed me on how many agents put the wrong language within the "Agent Remarks" section. If you're an agent and you plan on doing a short sale, please do everyone a favor and get educated on these types of transactions. Short Sales can hurt a seller more vs. helping them if you don't know what you're doing.

If you're a seller in need of a short sale or a buyer wanting to purchase a short sale- make sure you hire an agent who is Short Sale educated. I find myself coming across a lot of agents who can never answer my standard questions regarding short sales.

This indicates to me that: (1) The seller's agent doesn't really know the process of a short sale, (2) Because of the lack of knowledge the process on the Short Sale can take a lot longer then the standard 2-3 months, (3) The seller & seller's agent will still try to get other offers on the property along with my buyer's offer.

As a CERTIFIED Short-Sale Professional through NAR, when I sense this-I WILL ADVISE MY BUYER TO LOOK AT OTHER PROPERTIES. In most cases, buyers who look at short sales see a DEAL. However, they will need financing. If the buyer locks on an interest rate, they will possibly lose the rate lock because the transaction can be a long drawn out process. This wouldn't be great for the buyer or for both of the agents! Difference in payments because of a re-lock can be HUGE! In some cases, buyers who's interest rates have expired and are in need to re-lock-might not be able to afford the adjusted mortgage payment.

It's okay for an agent not to get Certified in the market of Short Sales. It's okay for an agent to advise the seller to hire a 3rd party to negotiate on their behalf. However, the lack of knowledge is not professional nor is it helpful is all aspects of short sale transaction.

LISTING AGENTS- If you include an addendum to contract that reads: "Buyers understand that the short sale approval process can take anywhere from 2 weeks to 3 months to complete. During this period the property shall remain in "ACTIVE" status until all underlying lien holders accept the conditions of the short sale." You will be in violation of the CODE OF ETHICS. Reason, the contract is "RATIFIED" once the buyer and seller sign off on it. Status on the MLS needs to be changed to either a "PENDING" or "A/C". The 3rd party approval is just like any other contingency. Receiving other offers on top of a ratifed contract is unethical and against the law of real estate. HOWEVER, if the seller's lender request that you include this addendum to be signed, it's your responsibility to get the lender to understand the CODE OF ETHICS and how a short sale is a benefit for them. That is why agents need to be EDUCATED!!!

SELLING / BUYER AGENTS- If you see an addendum to contract that reads: "3rd Party negotiator has been hired by the seller(s) and real estate broker(s) as a fiduciary advisor to the Realtor(s) and sellers(s), specifically to facilitate the short sale transaction between the buyer(s), seller(s) and lender. Seller(s) hereby agrees to compensate the 3rd party negotiator" I would advise you to find out if the seller is paying this negotiator out of the total real estate commission or a commission on top of the real estate commission. This will help you understand why your commission isn't what was originally stated.

The bottom line on my point of view on Short Sales is this: Everyone who is doing or in a Short Sale transaction needs to be educated. If you're a listing agent and you're not getting an offers on the short sale property-it's probably the comments or the addendums that you're putting on the MLS. If you're a Selling / Buyer Agent, make sure you read over all comments an addendums to the property. Talk to the listing agent FIRST, before any offers and make sure they know how to do a Short Sale. Ask questions and get answers. If the listing agent doesn't have the answers, then find the way to get your questions answered. Once again, this is why it's important to be educated!!!

Let me know your thoughts by commenting.

If you have any questions, e-mail me at your convenience at: annarose@carolinaone.com

Thanks for reading,

Anna M. Rose

Agents / Sellers / Buyers- How much do you know about Short Sales?

My office recently had an office meeting about why it is important to get educated in knowing and understanding the market of Short Sales. I found it very interesting that a lot of agents will do a short sale, but don't know much about the process. I recently looked over the MLS and noticed exactly how many short sale properties were on the Tri-County market. It amazed me on how many agents put the wrong language within the "Agent Remarks" section. If you're an agent and you plan on doing a short sale, please do everyone a favor and get educated on these types of transactions. Short Sales can hurt a seller more vs. helping them if you don't know what you're doing.

If you're a seller in need of a short sale or a buyer wanting to purchase a short sale- make sure you hire an agent who is Short Sale educated. I find myself coming across a lot of agents who can never answer my standard questions regarding short sales.

This indicates to me that: (1) The seller's agent doesn't really know the process of a short sale, (2) Because of the lack of knowledge the process on the Short Sale can take a lot longer then the standard 2-3 months, (3) The seller & seller's agent will still try to get other offers on the property along with my buyer's offer.

As a CERTIFIED Short-Sale Professional through NAR, when I sense this-I WILL ADVISE MY BUYER TO LOOK AT OTHER PROPERTIES. In most cases, buyers who look at short sales see a DEAL. However, they will need financing. If the buyer locks on an interest rate, they will possibly lose the rate lock because the transaction can be a long drawn out process. This wouldn't be great for the buyer or for both of the agents! Difference in payments because of a re-lock can be HUGE! In some cases, buyers who's interest rates have expired and are in need to re-lock-might not be able to afford the adjusted mortgage payment.

It's okay for an agent not to get Certified in the market of Short Sales. It's okay for an agent to advise the seller to hire a 3rd party to negotiate on their behalf. However, the lack of knowledge is not professional nor is it helpful is all aspects of short sale transaction.

LISTING AGENTS- If you include an addendum to contract that reads: "Buyers understand that the short sale approval process can take anywhere from 2 weeks to 3 months to complete. During this period the property shall remain in "ACTIVE" status until all underlying lien holders accept the conditions of the short sale." You will be in violation of the CODE OF ETHICS. Reason, the contract is "RATIFIED" once the buyer and seller sign off on it. Status on the MLS needs to be changed to either a "PENDING" or "A/C". The 3rd party approval is just like any other contingency. Receiving other offers on top of a ratifed contract is unethical and against the law of real estate. HOWEVER, if the seller's lender request that you include this addendum to be signed, it's your responsibility to get the lender to understand the CODE OF ETHICS and how a short sale is a benefit for them. That is why agents need to be EDUCATED!!!

SELLING / BUYER AGENTS- If you see an addendum to contract that reads: "3rd Party negotiator has been hired by the seller(s) and real estate broker(s) as a fiduciary advisor to the Realtor(s) and sellers(s), specifically to facilitate the short sale transaction between the buyer(s), seller(s) and lender. Seller(s) hereby agrees to compensate the 3rd party negotiator" I would advise you to find out if the seller is paying this negotiator out of the total real estate commission or a commission on top of the real estate commission. This will help you understand why your commission isn't what was originally stated.

The bottom line on my point of view on Short Sales is this: Everyone who is doing or in a Short Sale transaction needs to be educated. If you're a listing agent and you're not getting an offers on the short sale property-it's probably the comments or the addendums that you're putting on the MLS. If you're a Selling / Buyer Agent, make sure you read over all comments an addendums to the property. Talk to the listing agent FIRST, before any offers and make sure they know how to do a Short Sale. Ask questions and get answers. If the listing agent doesn't have the answers, then find the way to get your questions answered. Once again, this is why it's important to be educated!!!

Let me know your thoughts by commenting.

If you have any questions, e-mail me at your convenience at: annarose@carolinaone.com

Thanks for reading,

Anna M. Rose

Crowfield Plantation
***StoneHurst***

118 E. Hartwick Ln
Goose Creek, SC 29445

Sunday March 29th, 2009

From 2pm to 5pm

In the April 2009 issue of the REALTOR Magazine, there's an article regarding "9 Ways to Beat Negativity". I found this article interesting so I decided to share it with all of you if you haven't read it already.

9 Ways to Beat Negativity

1. Tell yourself a Positive Story- Life is a story. The story we tell ourselves and the role we play in that story determines the quality and direction of our life. The best real estate professionals are able to overcome adversity by telling themselves a more positive story than the rest.
2. Model yourself after success- It's okay to ask for help! Even in today's market, there are real estate practitioners succeeding. Seek out those people and ask to meet with them. Learn from their advice and model their attitudes and actions. If they can succeed, so can you.
3. Focus on the important stuff- Tune out the negative voices and start making positive choices. Every morning, ask yourself this question: *"What are the three most important things I need to do today that will help me create the success I desire?" Focus on marketing your business, taking care of clients, and building loyal relationships.
4. Replace "have to" with "get to" - This simple word swap can change your mind-set and your approach to work and life. It turns a complaining voice to an appreciative voice, and acknowledges that life is a gify-not an obligation.
5. Refuse to participate in the recession-Take the opportunity to charge forward. Professionals who've thrived during past recessions continued to go about business as usual regardless of market conditions. You should too.
6. Boost your marketing and advertising- It may seem counter-intuitive to spend more money on advertising and marketing right now. But with so many of your competitors cutting back in these areas, this is a great opportunity to build your brand and gain market share. People are still buying and selling, and they will buy from those whom they trust and see in the marketplace.
7. Create a positive vision- Instead of being disappointed about where you are, make the decision to be optimistic about where you are going. Create a positive vision for your future and the future of your team. Vision helps you see the road ahead and it gives you something meaningful and valuable to strive towards.
8. Invite others on your bus- Invite colleagues and customers to board your bus for a positive ride. Send them an e=bus ticket at www.TheEnergyBus.com. Share your vision with team members and ask them to join you in making this vision a reality. Be a Positive Influence.
9. No more complaining-Abide by the "No complaining" rule. When you realize you're about to complain, replace your thoughts and words with positive actions. Let your complaints help you identify what you don't want so that you can focus on what you do want. The key is to turn complaints into solutions.

These are all great tips!

Thanks for reading!

Anna M Rose

Visit my website at: AnnaRose-RealEstate.com

How quickly will the stimulus plan work?

"The massive inventory overhang in the market and the surge in foreclosures mean prices will continue to fall rapidly. The administration's rescue plan will, in time, slow the rate of decline, but it won't happen immediately."

-Ian Shepherdson, chief U.S. economist at High Frequency Economics in Valhalla, New York

Source: Bloomberg.com 2/24/2009

"In the most optimistic scenario, if the government stimulus took effect today and put the complete brakes on home price decline, the market would still need roughly a year at the very least to display any kind of recovery in home value."

-Mark Fleming, chief economist First American CoreLogic

Source: Seeking Alpha 2/10/2009

What's your thought on this issue?

Thanks for Reading!!!

Anna M. Rose