Melissa Polce

High priced homes all over are getting a quick reality check in order to the best house available on the market. Homeowners need to have updated the kitchen, put in the best patio, or remodel the master bathroom at all costs. These folks know that whatever the price of a fabulous remodel will be will eventually pay off in the end when their house is the best and has the quickest sale.

One of the key ways to raise the value of an already valuable home is to do an extensive kitchen remodel. There is just nothing like a new Thermador range or that gourmet kitchen space. Thermador offers appliances from ovens to refrigerators to coffee machines. They are high-end items and add value to the home as well as making a fine presentation. In fact, a kitchen remodel can be the focal selling point in a luxury home.

Curb appeal goes a long way when it comes to a luxury home standing out from the rest. Concrete, for example, has been around for ages. However, stamped concrete is quickly becoming a designer touch that luxury homes use on their driveway, sidewalk, or patios. New stamping tools have made the designs of stamped concrete endless. It often takes a double take to tell the difference between quality tiles, slate, or concrete. Remodeling the outside of your home adds a special touch as well as value.

Many are willing to buy the upscale home and then do extensive remodeling once they take possession of the residence. People buying luxury homes are looking for something a bit above the rest and they want amenities in the home to reflect their leisurely lifestyle. They are open to adding any features that aren't already present in the home if they want it bad enough. These buyers have specific requirements in the homes they buy, such as elaborate security systems, gourmet or designer kitchens, home theaters to seat 6 or more, and even wine cellars. As a result, they are willing to do extensive remodels on their homes to raise their property value. They desire furniture and décor to match their lavish taste.

Luxury home owners are always looking for the best way to sell their home quickly and get the most value out of it. The market has an influx of luxury homes and to sell quickly is to know this market, what used to be priced at 3,4 & 5 million in value are now down around 1.5, 2 to 2.5 million now... Remodeling key areas of the home is a great way to make your luxury home stand out and price it correctly the first time!

If you are lucky enough to get an offer, work with it...if that buyer is a qualified buyer through a bank, they are solid...don't let them walk and if there is a proof of funds in front of you with an offer and you must counter offer, tread lightly...selling real estate in this type of market is much more like a dating service that I provide for buyers and sellers, it's really like starting a relationship with someone...definitely alot of dating, then a budding relationship and finally at closing, you have a marriage...anything less than that at the luxury level, and it will be a disaster!

Please Contact Me If You Are Interested in Viewing In One Of Charlott's Most Exclusive Neighborhoods

Melissa Polce, Broker/Realtor

704-450-4335

"Lake to Land, I've Got it Covered"

Specializing in Charlotte's Finest in Luxury Homes

If you have decided to hedge your bets and try and sell your home before you foreclose, you are in luck...as more and more banks are trying to work with homeowners who have their homes on the market. This is still a great option if you can't make payments, can't modify your mortgage or your just going to walk away(however quite a bit of leg work). A short sale will no doubt "ding" your credit for 12-24 months but in no way will it be a foreclosure on your credit for 7 years or more. If you are just opening your 1st filing note in the mail, you still have time.

The home is going to be on the market for less than what you paid...and we will work with the bank on this. You need to know once we get an offer the real work begins for you and your real estate agent...endless calls and paperwork are needed but if you are up for the challenge, it does and can work...

A question I have heard over and over is "Will I be in debt to the bank for the part of the mortgage not covered, or money not covered by the offer?' 2 things, 1 if it is your primary residence, NO you will not have to pay that money back. Most banks send out at the Short sale closing table a HOLD HARMLESS letter that an attorney(usually closing attorney) will have you sign, this is for your records and the banks...2...if your short sale is a rental/income property, you will be responsible or taxed on that money not covered.(please see a tax professional)...in the event(1%) that a bank sends you a 1099-c in the mail at the end of the year(which they claim because they have lost money-more than $500.00)...then you must file form 982(this form wipes that debt back out)....what is it? It states you have made nothing from a short sale on the property(again, consult a tax professional for all the details).

Now, getting to the place above... the closing table, A TON OF RED TAPE, but again if you have a good agent who has done these deals before, and you all stay on the same page together, it may be the best option to choose. All banks are different, being persistent and having those "Ducks in A Row" will no doubt help in getting the deal done. Also, keeping everyone in the loop as much as possible...the buyer and buyers agent may get bored with waiting, I always suggest a weekly phone call with any and all updates, even 2-3 times a week just to keep excitement up for the buy and also so that everyone knows we are working diligently to get to the same place as quickly as possible.

Lastly, as an experienced short sale agent, I must express frustration with the process as a whole, I do wish banks made this to be an easier situation(it is stressful enough for people but sometimes banks make you feel like they would rather foreclose than to work on the offer you have just sent them)...navigating and learning what each bank does and what each expects is sometimes a guess...my best efforts with getting short sales approved and almost everything I have ever done well in life is be such a pain in the A-- that people finally cave in and deal with me so that we all can move forward, just ask my husband, he would say that is true!

With an agents help you may be able to save your credit and sell your home before it forecloses, we will save you time, effort&money...making it easier for you to get on with the next chapter in your life. While many lenders will have varying requirements and may demand that a borrower submit different types of documentation, the following should be treated as a guideline of what is required in a pursuing a short sale. Aa real estate professional, I can help you every step of the way. Once listed, we should have 3-5 months to get your home sold, THE BANK DOES NOT WANT YOUR HOME!

Contact your lender immediately

We will need to make the effort to find the right person responsible for handling a potential short sale. We all will want to talk to person in charge of loss mitigation for the lender and who is assigned to your loan, you want a supervisor's name, the name of the individual capable of making these kinds of decisions, fax and phone numbers. We need to let them know the property is listed and get you any and all paperwork to expedite the short sale.

Submit a letter of authorization

Your lenders will not want to disclose any of your personal information without written authorization to do so. When you entrust us with your home to list we will need to signed on as authorized users on your loan account. All information is kept private between us. See, you will receive better cooperation if you write a letter to the lender giving the lender permission to talk with us and those specific interested parties about your loan. You should include the following information: name, address, loan number, third party agents involved and contact information on both the agents and yourself. Once added, I can help negotiate on your behalf.

Preliminary estimate of your lenders proceeds

Your bank will require that I complete a preliminary guestimate HUD-1 settlement statement that indicates the sales price you are under contract for and all the costs of sale, unpaid loan balances, outstanding payments due and late fees, including real estate commissions, which I negotiate with the bank. The bottom line should not indicate any net proceed to the seller. And, then the other half of our job comes in to play...YOU OWE ME NOTHING, YOU PAY ME NOTHING. Some agents don't like this, but at the end of it, I am happy I was able to help!

Your circumstances, in the form of a hardship letter

You will need to a complete description of the facts that brought you to this financially challenging situation and why you have a valid reason for the lender to accept less than full payment(the worse off that it sounds, the easier it is to get the bank to forgive the loss). Lenders can understand many circumstances are unavoidable, loss of job, death, divorce, etc. The other thing you will need to accept is that the home will sell for less than you paid for it, understand, it is just the market we are in currently and it is our job to help you quickly.

A complete financial statement

Be truthful about your current financial situation and disclose your assets and liabilities. Provide information on savings accounts, money market accounts, stocks or bonds, cash, real estate or anything of tangible value. Your lender will need to be assured that you cannot pay back any shortfall in the short sale transaction. BANKRUPTCY: Also, we can handle a bankruptcy filing, there are methods in place where we can petition the home out of bankruptcy if we can prove to the trustee that they will not gain from the sale of your home.

Proof of valuation

Many homeowners caught by the current downturn of the real estate market have lost significant equity in their home. Most homes in this market are not selling for what they were originally mortgaged/purchased for. The lender will order a Broker Price Opinion to give final value. The agents working with the bank will present current value. Most banks will take 80-85% of the current homes real value, most of the time allowing a short sale.

Your purchase agreement and listing agreement

The lender should want a copy of the executed offer, along with a copy of your listing agreement. If your package is complete, the facts are accurate and the circumstances speak for themselves, the lender will approve your short sale. Within the ongoing communications and negotiations, you should ask that the lender not report any adverse credit references to the credit reporting agencies, although they would be under no obligation to accommodate this request. I look forward to hearing from you soon and helping you get the best results for your situation.

HELP FHA HUD and Working With Banks On Hardships!

OK-need help for this situation...have client who have moved out of their home they stopped paying in Oct. 08, home prices are falling in the neighborhood, hit also with foreclosures, they have an FHA loan, and now owe more than home is worth...their bank (Midland) tuned down the shortsale hardship paperwork stating "they did not live in the house any longer"-they do still have belongings in the home and are currently renting something else...I have told them get a superviser on the phone from the bank and to also call HUD, can HUD make a judgement call if their is a offer on the table and my sellers dont have any other money to bring to closing to deliver clear title? Meaning, can HUD demand that the bank that gave the FHA loan in the 1st place make them do a short sale? Any input would be helpful!

Help

Melissa

mjpolce@kw.com

I am still awaiting all these comments and mail that you are susposed to get when you blog...I feel I do it just to see myself write, I am probably not the only one...Anyhow, You gotta believe in what you sell, right? Well, I always felt that our Local Real Estate Industry was strong, small declining numbers, but nothing like what you see in other parts of the nation. And you know what, Charlotte finally got its recognition...Take a look at this... http://finance.yahoo.com/real-estate/article/105075/Charlotte-Named-Best-Place-to-Live that is right, Best Place to Live in America...

I sell alot of property in very diverse locations that our local MLS covers, having listings in 5 Counties, I see alot of action still going on...as I do think we are in a bit of a slump, I think the market was due for a correction. People need to be able to live in their home, not be house poor, & be able to not only make their home payments but to be able to really comprehend what it means when they are signing all those closing docs. I mean, Who are the Jones' & why do we need to compete with them? I think the average investor should not exist, it takes alot of skill & risk & should be left to people who really can "invest in a risk" and possibly lose.

I also never gave it much thought to people who wanted to list their homes so much over current market value that it would just sit there...when agents bring buyers out to a home and it's overpriced, they are not nice in letting you know you have wasted everyone's time...no one likes a greedy person, so take the slice of pie that best suits your appetite, don't think that you deserve the whole pie just because you maintained your home and did some minor upgrades..My best Philosophy on selling a home and helping sellers determine price is easy "If you Loved your home, it will Love you back...don't take advatage of that Love!"

Lastly, for all the people who will look at what Charlotte has to offer by way of purchasing Real Estate remember, we already own property in the #1 place to live and just because a home has been listed more than 30 days does not mean you offer half of the list price...do your homework buyers, after all not every home around here is a foreclosure...Lets all work together towards a common goal, look at all the factors before you write up that offer to purchase!

So that is it, We have lots to do here, lots to offer, lots of reasons to relocate to Charlotte...now we have even been ranked #1...we have alot to live up to; so sellers take note, buyers are out there, they are looking to buy your home & live in your neighborhood...I will be bringing them by soon!