Chuck and Anne Hanna

Many San Jose homes for sale on the Multiple Listing Service are now selling by way of a short sale. What is a short sale? A short sale can occur when the seller owes more in loans on the property than the current market value and sells their home. Completing a short sale takes lender cooperation as the lender(s) must be willing to take less than the actual amount owed on the loan(s) by the seller.

A breakdown of homes currently listed for sale in Santa Clara County indicates that a vast majority of San Jose homes for sale in the lower range of the market are on the market as short sales. It also reveals a trend for much stronger sales activity and that South Bay homes are selling at significantly higher rates.

San Jose Homes for Sale as of 11/13/2009:

Where South Bay homes median home prices are lower:

South San Jose: MLS Listings: 321, Sales Pending: 257 (79%), Short Sale Listings: 241 (74%) Central San Jose: MLS Listings: 312, Sales Pending: 185 (59%), Short Sale Listings: 169 (54%)

Where South Bay homes median home prices are in the middle range:

Blossom Valley: MLS Listings: 246, Sales Pending: 178 (72%), Short Sale Listings: 143 (58%) Cambrian: MLS Listings: 200, Sales Pending: 117 (59%), Short Sale Listings: 64 (32%) Santa Clara: MLS Listings: 205, Sales Pending: 130 (63%), Short Sale Listings: 84 (41%)

Where South Bay homes median home prices are in the higher range:

Almaden Valley: MLS Listings: 106, Sales Pending: 49 (46%), Short Sale Listings: 18 (17%) Willow Glen: MLS Listings: 264, Sales Pending: 123 (47%), Short Sale Listings: 64 (32%)

Until prices rise significantly, numerous short sales are here to stay. We should strive to eliminate the short sales that are on the market that are a waste of time for potential home buyers who have to compete with so many offers and wait so long for lender approval or denial.

We should eliminate the numerous short sale listings that are coming on the market at ridiculously low list prices just to generate activity for the listing agent that have no chance of lender acceptance at the list price.

The sales price matters to the lenders and equal or more importantly it matters to the all the other homeowners in the area whose property values are impacted by the sale of these short sales.

We propose that before a short sale listing can go on the Multiple Listing Service that the lender or lenders who have liens against the property, be required to provide written agreement of the list price, sales price and proceeds that they will receive. It is up to the Santa Clara County Association of Realtors (SCCAOR) and the California Association of Realtors (CAR) to get involved and initiate these changes with local real estate boards. Feel free to e-mail or write them with your concerns.

Look for further articles from Chuck and Anne Hanna regarding the effects of foreclosures and short sales on credit ratings.

Chuck and Anne Hanna

Two Real Estate Brokers, MBA, e-PRO, Attorney

Serving Our Community Since 1990

Direct: 408-426-7980

hanna@south-bayhomes.com

HOW TO INTERVIEW YOUR SELECTED AGENT(S)

Top Ten Real Estate Interview Questions

1. Has the agent priced your home correctly with a thorough market evaluation?

Correct pricing of your home is the key to getting the best results and is a direct indication of the agent's knowledge of the area, current market conditions and your property.

2. What will the agent do to market your home?

See Our RECOMMENDED MARKETING section below

3. What is their level of experience? How do they handle offers and multiple offers?

4. Can they show you client testimonials or referral contacts?

5. Who will you be speaking with during your transaction - the agent or their assistants and how and when will they be providing feedback and communication regarding your sale?

6. How will they help you in preparing your home for sale and if necessary staging your home for sale?

7. Who do they recommend for your termite, roof and property inspections and why? How do they handle all the disclosures, have they ever been sued or taken to arbitration in a real estate transaction?

8. What is their commission rate and what is the rate broken down between the listing agent and the buyer's agent? Verify that the rate being offered on the MLS is competitive with the competition on the market and of course get it in writing when you sign a listing agreement.

9. How long do they think it will take to sell your home and close escrow?

10. Have you made them aware of any additional concerns you might have such as pet concerns, attached items that you want to remove or take with you, or timing of your move in relation to selling your home?

Note: An initial brief interview by phone or e-mail prior to selection of agents to interview in person can save a lot of time and energy.

When you have selected a real estate agent or several agents to interview for the job of selling your home or investment property we recommend that all parties that have an interest in the property be present during the interview(s). It is very important that the real estate agent be able to communicate effectively with all parties and the decision on the right real estate agent for the job must typically meet with the approval of all owners.

RECOMMENDED REAL ESTATE MARKETING

AGENT AND SELLER MUST HAVES FOR BEST RESULTS:

ASSIST YOU WITH PROPER PREPARATION AND STAGING OF HOME FOR SALE

PRICE YOUR HOME CORRECTLY

PLACE/LIST YOUR OUR HOME ON THE MLS (Multiple Listing Service) WITH MULTIPLE PHOTOS AND PREFERABLY A VIRTUAL TOUR AS WELL

PROFESSIONAL COLOR BROCHURES

YARD SIGNS WITH A BROCHURE BOX

COMPUTERIZED LOCK BOX

OPEN HOUSES (AT LEAST ONE EVERY 3 WEEKS)

EXPOSURE ON MAJOR INTERNET WEBSITES

ALSO LIKE TO SEE:

Area Broker Tours, Office Tour

Newspaper, Real Estate Magazine Advertising

Real estate agent website advertising

Real estate agent and client networking

Agent Prospecting for potential buyers

Selecting the Right Real Estate Agent:

After interviewing the real estate agent(s) if the decision is obvious and you feel comfortable with working with the agent, communication is excellent between all parties and all your concerns have been addressed, go ahead and make the decision to work with the agent.

If it is a close decision between two or more agents, you can always use the Ben Franklin approach by noting the advantages and disadvantages of working with each and seeing which one stands out as the best after weighing out the decision and choosing the one that best meets with your criteria. If you do not feel good about working with any of the agents interviewed, keep looking! While selling your home can be stressful, you want to work with someone you can count on to help you make the right decisions with more peace of mind.

Look for experience, focus, dedication to your best interests, and outstanding marketing, negotiation and communication skills, knowledge of the area, current market conditions and your property.

Chuck Hanna

Real Estate Broker, e-PRO, MBA

South Bay Homes

e:mail: hanna@south-bayhomes.com

Website: www.south-bayhomes.com

When it comes to South Bay homes, your home or residential investment property is most likely one of the most important assets that you own. With San Jose home sales, choosing the right real estate agent to assist you can make all the difference in protecting your investment.

USE YOUR RESOURCES TO FIND THE RIGHT REAL ESTATE AGENT

What resources are available to you to find the right agent?

THE BEST:

Real Estate agents you know and like. An agent recommended by family or a co-worker or a friend may be good but you have to make sure they are a good fit for you.

A local Broker referral company who can listen to your needs, is familiar with your location and will help you find the best qualified real estate agent to help.

When you find an agent you think you would like to talk to, always consider going to their website first to see if they look like a good candidate for your consideration. They may have further information on Facebook as well.

NEXT BEST:

Look for signs nearby - check out the quality of the marketing brochures in the brochure box to get a better feel for that agent.

See if they are doing an Open House and go by and meet them. Observe the activity at the property, see how long it takes to sell and look at the results.

Note: Often the home is priced right and simply sold in a timely manner. If an agent in your area is selling homes in less than a week regardless of whether the market is hot or cold, it can indicate that agent may be under-pricing listings.

The Yellow Pages - read the marketing advertisements and call who you have a good feeling about.

Contact nearby office(s) - the problem here may be getting the right agent within this office to help you as it is probably not the agent answering phones during "Floor Time". Here it would be best to ask the Broker of the office for their best recommendation of someone experienced with selling in your neighborhood.

Agent mailers to your home - Make sure they are in color, look professional and offer something of value.

Perform your own MLS (Multiple Listing Service) search on the internet on an agent website or major property search website and find out agent contact information.

THE REST:

The major internet websites with agent contact information and agent ads and lead capture registration forms.

SET UP AN INTERVIEW

After locating one or more agents you would like to interview, we recommend going to their website to see how they appear to you. Completion of an initial phone or e-mail interview with your list of possible agents can save you time and effort - consider asking:

1. Do they answer your phone call or your e-mail in a timely manner?

2. Are they familiar with your location and neighborhood?

3. What is there sales track record in your area?

4. What is their opinion of current market conditions?

5. Are you communicating on the same page with the agent? Are they good at listening to your situation and questions or just good at talking? Do you enjoy speaking with them? Are they pleasant and positive in their approach?

If they are familiar with your area, their website checks out and they sound good by phone or e-mail, the next step in the process is to interview the Agent(s) you have selected.

Ask them to complete a Comparative Market Analysis to determine the value of your home or real estate investment property. You can meet with the agent at their office or at your property.

HOW TO INTERVIEW YOUR SELECTED REAL ESTATE AGENT(S)

Determine Real Estate Interview Questions and Concerns

For a list of recommended questions, search activerain, real estate blogs, our website or a major real estate website for further information and be sure to ask the questions that are most important to you.

Chuck Hanna

South Bay Homes

E-MAIL: hanna@south-bayhomes.com

Direct: 408.426.7980

www.south-bayhomes.com

FREE Santa Clara County AGENT REFERRAL

As you may know, realtor.com, homegain, zillow or numerous other websites can take your information and may sell your information to the highest bidding agent or to those who pay them for leads and advertising. In these systems, you are probably going to be flooded with e-mails and phone calls from what is quite likely not the best person for the job.

We can help you locate the right real estate broker or agent for your situation, whether selling a home, relocating, buying a home or an investment.

We simply want to help you achieve the best results, whether you are working with our team, or as appropriate, working with someone else with more expertise in your specific neighborhood and or desired location.

With over 30 years combined experience in Santa Clara County, acquaintances with numerous top agents who care about their clients and access to all area sales information, we can help you locate the right agent for your specific area.

WE PROVIDE THIS ASSISTANCE TO YOU ABSOLUTELY FREE with no obligation.

Call Chuck Hanna today at (408) 426-7980 or

E-Mail: hanna@south-bayhomes.com

http://www.south-bayhomes.com/

BE AWARE: CALIFORNIA REAL ESTATE WITHHOLDING TAXES MAY APPLY

Real estate withholding is the prepayment of California State Income Tax for sellers of California real property. Real estate withholding is not an additional tax on the sale of real estate. It is a prepayment of the income or franchise tax due on the gain from the sale of California real property. The withholding rate is three and one-third percent of the gross sales price or an optional gain on sale withholding based on the maximum tax rate on the gain on sale as follows: 9.3% for individuals, 8.84% for corporations, 10.84% for banks and financial corporations, 1.5% for S corporations, 3.5% for financial S corporations

The withholding law applies to dispositions of California real estate by both residents and non-residents which close on or after 1/01/2003. The law requires the buyer (called the transferee) to withhold from what otherwise would be paid to the seller.

EXEMPTIONS: If you are an individual selling property, the buyer will not have to withhold from your proceeds if the sales price is less that $100,000, or you are selling your principal residence or if you are selling at a loss. Other exemptions are for tax deferred exchanges and involuntary conversions of property. The rules incorporate Internal Revenue Code Section 121 to determine whether the property qualifies as a principal residence and considered exempt from the California withholding requirements.

The seller is required to sign a statement under penalty of perjury to establish eligibility for the exemption.

The only way to recover the withholding is by filing a California State Income Tax Return for the year in which the sale occurred. The seller will be entitled to a refund in the amount that the withholding exceeds the amount of capital gains due by reason of the sale. For a complete summary of The State of California Real Estate Withholding Guidelines go to:

http://ftb.ca.gov/forms/misc/1016.pdf

The above is for informational purposes only and not meant to be tax advice or advice regarding your individual situation. Tax advice should be obtained from your real estate tax professional.

Chuck and Anne Hanna

Two Real Estate Brokers, MBA, Attorney

Serving Our Community Since 1990

Alain Pinel Realtors

hanna@south-bayhomes.com

www.sanjosemlshomes.com