Michele Herndon

It seems like only yesterday, summer vacation was winding down and backpacks, notebooks and pencils filled our shopping lists. Costumes, candy, ghosts and ghouls... Halloween has come and gone. The "Holiday Season" is officially here! Whether you have gone to the mall or large retail chain in recent days, you have seen the Christmas decorations and gifts loading the shelves. As we start our holiday preparations, it is really easy to get tunnel vision, only seeing what impacts us personally. I challenge each of you to make a commitment to think outside of your family when you go shopping. There are many organizations that help those less fortunate by providing food baskets, holiday meals and presents for the children, helping is easier than you think. Donate food items to your local food bank, contact the Salvation Army to sponsor a child this Christmas, donate new toys to the Toys for Tots program in your area, these are just a few suggestions. If you aren't able to make a monetary donation, please help by volunteering. Together we can make a difference to those who are in need.

Remodel or Buy?
Which is Right for You?

The decision of whether to remodel an existing home or buy another one has become more difficult because of the price of real estate declining across much of the nation. A few years ago, the benefits of remodeling were quite simple due to the cost savings. Today it isn't as straightforward.

The following are some things to think about when deciding whether to remodel or purchase a new property:

Lifestyle: Does your home continue to reflect your lifestyle? Experts agree the home should reflect anticipated lifestyle changes for the next five to seven years. If not, it might be a good idea to consider purchasing a new property.

Maintenance: Does your home require more maintenance and upkeep than desired, especially compared to newer homes? New homes offer the ability to "right size" the levels of yard work, repairs and other needs associated with home ownership.

Cost and Value: There are many factors that can weigh into the cost and value of a given property, including tax credits/write-offs, long-term appreciation, current level of depreciation, access to amenities, property taxes and insurance, utilities, maintenance, and much more. If you are not sure how to properly evaluate the true cost and value of your current property compared to a prospective property, ask your agent to provide estimates of principal, interest, taxes and insurance for comparable properties in the same neighborhood.

Community: Access and affiliation with friends, family and the local community are important when deciding whether or not to remodel or buy new, yet they are easily overlooked by many homeowners. Depending upon the age of the neighborhood, it may be difficult or even impossible to find other properties in the immediate area. On the other hand, over time many communities experience a decline in desirability as crime rates, traffic and other problems start to creep in.

What you need to know about Short Sales.

If it seems like short sales have suddenly exploded in the real estate arena, it's not your imagination. Once considered relatively rare, short sales have become a common phenomenon in the past 18 months, thanks in large part to the banking and mortgage crisis. To find out if you can benefit from a short sale, here's some helpful information about the practice.

What Is a Short Sale?

Short sales occur when the bank and seller agree to a purchase price for real estate that is less than the original mortgage amount and does not cover the entire cost of the existing debt obligation.

Who Benefits?

Depending upon how the deal is structured, everyone can benefit from a short sale. The seller benefits from the ability to save his or her credit rating and avoid bankruptcy or face a mountain of debt, the buyer benefits from acquiring a property at below market price, and the lender benefits from a sure sale that reduces the risk of a property going to auction or of having to foot the bill for foreclosure and additional expenses.

Considerations and Consequences

Short sales are not without consequences, so take time to carefully weigh all options before making a decision. Sellers need to carefully review the terms prior to signing a final contract.

Some lenders expect the seller to make up the difference between the selling price and the full amount of the original mortgage. Buyers should also proceed with caution, as many properties have additional liens, deferred maintenance, back taxes or other expensive fees that become the obligation of the buyer.

Additionally, short sales may require substantial time before obtaining final approval, which can make it difficult to lock in favorable rates or result in the loss of other prospective properties.

Poor curb appeal

Buyers won't even go inside if the outside of the house looks unappealing. So clean up your front yard by tidying plants and pulling up weeds. Make sure the outside of your home looks well cared-for by painting the trim, mowing the lawn and placing attractive potted plants by the door.

Unpleasant odors

You may not even notice bad odors, but buyers surely will. Smoking and pets are the prime causes, so smoke outside while you are selling your house and consider what to do with your animals. Allow the house to air out thoroughly before viewings - don't just try to mask the odor with another scent.

Loud and scary pets

Apart from the odor of some animals, a big dog or noisy bird can be off-putting to some buyers. So keep your dog away when you have viewings so your potential buyers aren't distracted or, worse, scared.

Signs of damp

Problems with damp are a big turn-off to many buyers. Make sure your basement doesn't smell damp and there are no signs of damp on the walls. It's much better to fix problems now than wait until buyers point them out to you.

Dirt and grime

Although dirt is usually only cosmetic, it deters buyers, who will start to think the house isn't well cared for. So make sure your kitchen and bathroom, in particular, are clean.

Bad décor

Although your home's décor shouldn't matter, to many buyers it does. That's because many want a house they can move into right away. So replace any tired or out-of-date carpets or wallpapers with a more neutral, modern scheme.

Wrong price

If your house it too expensive compared to similar properties on the market, you'll turn away viewers. So take your agent's advice when it comes to setting a price for your home.

Is it really possible to make a short sale any tougher than it already is? Last year, banks were supposed to be responding to a short sale request in 4.5 weeks, now they are demanding 9.5 weeks for a response. Why is that? With the majority of their losses already written off and the supposed "up-turn" in the economy, banks are backing away from short sales, forcing sellers to pay extra at closing or demanding promissory notes for amounts due.

With an estimated 1/3 of borrowers owing more than their homes worth, a prolonged response time to short sale request and the banks reluctance to negotiate on short sales, realtors are sure to become more frustrated and our clients feeling more like hostages.

Approving short sale requests, negotiating a short sale, or dealing with more foreclosures... What is to gain by making an already horrible situation even tougher?