Amy Gerrish, Realtor (Phx to San Tan Valley)

I must say 2009 has been full of short sales and with more ARM's adjusting in 2010, I have a feeling there will be more in my future. I felt prompted to write something on short sales when I received a phone call from an agent in my brokerage. She said that she had been researching agents within our brokerage, which has 3000+ plus agents. She was looking for agents that are successful in closing short sales in a certain part of the city. She said, that my name came up a couple times as a "successful" short sale agent.

Wow! I am honored, and my head was so big for a few hours after the phone call. But, now worries, I'm back down to earth and my head can fit in the same room with my kids and hubby. With that said I wanted to share a bit about my short sale experience.

1. When I take a short sale listing I interview the home owners. I try and weed out people who may not qualify. I also educate them on the process and the uncertainty of the outcome. I never guarantee that I can get an approval, but I will do everything in my power to get your file in front of the right people at the bank/lender.

2. I interview the buyer's agent over the phone. I want to know if their clients are in it for the longhaul, and if they are willing to compromise if the bank/lender isn't willing to pay certain closing fees.

3. I eat, breathe and sleep short sales. I educate myself on each bank and learn their process. Every bank/lender has a different process and it helps to know where the file is, and where it will go next.

My favorite banks/lenders to work with have been Wells Fargo, GMAC, and Aurora Loan Servicing.

My middle rated bank is JP Morgan Chase. I find it is really hit or miss with them. BOFA/Countrywide is at the bottom of my list. They are so slow!!! I don't care I how well I interview the buyer's agent, they are never prepared for their snail like pace.

I am just learning about CitiMortgage and hope to have a positive experience with them.

If you are in the Phoenix-Metro area and think that your only option is a short sale please give me call. If you list with me you get more than 1 agent, you get the whole Phoenix Metro Group - brokered by HomeSmart.

Visit the Phoenix Metro Group at http://www.Phoenix-Metro.com. I am the group manager and would be happy to talk to you about short sales.

Ok – so for the most part most banks had ended their moratoriums at the beginning of spring. In my market Queen Creek/San Tan Valley, 95% of home sales results from a REO (bank owned foreclosure) or a short sale (owner owned pre foreclosure). As a result of the moratorium, REO’s slowly disappeared and short sales began to pick up. Even the lenders were banging out short sale approvals more quickly. And, for those of us that don’t list REO’s having listings that sell in this market is a great feeling!

So, my listing’s were selling, getting offers within 8 hours of hitting the market. As a result, I knew we were under priced. I started increasing my listing prices. And guess what? Even they sold in 8 hours!!!!

Now, I’m a little miffed. The buyers are really getting frustrated because they see all the low prices and after being out bid on 10 -15 homes they are not understanding that our market is way under priced!!! They want the home that’s listed at $50k for $50k – not $65k. Now that REO’s are picking up, it’s the banks that are grossly under priced. I know they want to unload their REO inventory to sell quickly, but it’s getting a little ridiculous. When the listing says “Home must be on the market for 5 days before we can submit offers”, it tells me that they are ready for the multiple offer situation. Why not just increase the price instead of playing games with the buyers??

You Can Buy This Home - Asking $7

Creative Financing Available

(This is not an offer to sell real estate - mearly a joke people)

I don’t mind writing up offers on homes, but even when they are offering full asking price plus almost $10k and we still lose out something has to change! Even after educating them on the market situation they still don’t want to pay the increased price. They are totally disillusioned and want the house for less. Sometimes even less than the asking price.

What I’m afraid of this – after educating them on the market, it’s going to turn into the scenario that we see so many times with sellers. You know – you’re home has been on the market for 3 months with no lookers. Perhaps your home is a little overpriced. You back that up with the comps from the house that sold down the street for $20k less. You show them all the details but they still don’t believe you. Then when the listing expires you find out they list with someone else and reduce the price!!! I’m afraid that I’m going to start losing buyers to other agents that “convince” them to start increasing their offers. How can I retain buyers like this?? Do I even want to? Of course I want to! My job is to help buyers turn houses into homes and if I didn’t want to I wouldn’t be so upset about this.Where is the middle ground - is it in sight yet??

I also know that this is not just a phenomenon here in the extreme south east valley. As a part of the Phoenix – Metro Group, my partners are relaying the same thing happening in Gilbert, Scottsdale, Phoenix, Surprise and so on. Who’s got the Aleve? The rest of 2009 is going to be busy bumpy ride!

At the end of June, M&I bank announced that they are extending their foreclosure moratorium until September 30th, 2009. Don't expect to see their REO inventory anytime soon.

Fannie and Freddie had quietly lifted their moratorium back in April. The homes that were unable to get modifications or short sell are still facing foreclosure and should be hitting the auction block. If they don't sell at the courthouse, buyers should be seeing more and more of those as REO's available.

The Phoenix Metro Group|www.Phoenix-Metro.com|480-294-8680

Open Mic Night - Friday, July 3rd 8-10pm - PARTY!!!!

Independence Day Party on July 3rd during Open Mic Night at Blackbird Music & Art Center on Friday July 3rd from 8-10pm.

Snacks available, raffles and fun for all ages. P.A. Provided - just bring your instrument and your amp and your groupies!

Blackbird Music & Art Center is located at 18911 East San Tan Blvd. Queen Creek. 1/2 mile East of Power.

Visit www.SanTanEvents.com for Queen Creek/San Tan Valley Events

Amy Gerrish | www.Phoenix-Metro.com | 480-294-8680