Hi all!  It's been HOT HOT with the temperatures in the mid-90's and heat index at 105 around here--GREAT weather for going to the beach, or water park, or just staying inside in the air conditioning.  Me, I'm having a yard sale this weekend.  It's amazing how you can finish a yard sale and keep finding even more stuff you could have/should have put in it to sell!

I find being a realtor very enjoyable in many ways, but as with any job a person has, there are always the bumps and bruises that go with it.  I have shown buyers houses, and when driving up to the home never even make it inside the home.  This is through no fault of the seller, as they've landscaped nicely, the house is in great shape, well cared for, BUT, the neighbor either next door, or across the street has so much "stuff" in their yard, that it looks like a permanent yard sale...except there's never a "sale" sign put up.

I had one listing at one point that showed VERY well--a paradise yet close to everything.  The feedback I got from every realtor that showed it had to do with the neighbor across the street.  Just one house made the entire neighborhood look run down and decrepit.  The owner didn't know what to do.  She didn't know her neighbor, they had strange hours, and she didn't want to cause waves (can't blame her!).

SO, how can you handle something like this?  Well, I'm sure there are MANY ways, and I would be interested to hear any ideas, but I will explain how I handled this one.  We had scheduled a weekend open house for this listing, and of course, the question was "how do we deal with the "yard sale look neighbor"?   Well, a couple of weeks prior to the open house, I went over to the neighbor's house, gave him my business card, and explained as nicely as I could (you never know what the situation is in someone else's life) that we were having an open house in a couple of weeks, and the realtors that have shown it have given feedback regarding "your" house saying that it would show better if these things (showing and naming specific things) were moved out of the yard.  I asked him if he could possibly move the things to the back yard until the house sold to help his neighbor out.

The gentleman was very nice, and said that yes, he would get it cleaned up.  It was all of his mother's stuff, and he never knew what to do with it.  Before the open house, not only did he move all the junk (I don't know where any of it went), he set up a little table and chair set on the front porch with flowers on the table!

My seller was SO tickled that this guy was so willing to do this without any issues.  When the open house was over, I took over a large plate of cookies to him and thanked him profusely, not only for me, but for my seller.  He was tickled over getting all the cookies!  Win-win for everyone.

SO--any ideas on other ways to handle a situation like this?  I'm glad this turned out well, but am always open for suggestions and improvements!

Until next time!

Valerie Sullivan
Broker/Owner, GRI, e-Pro
Sullivan Enterprises
www.ValerieSullivan.com
Valerie@ValerieSullivan.net

Hello all!

I hope this finds you all doing well! Well, I will get right to the point today...FULL DISCLOSURE is a must when it comes to selling your house. But what exactly, does FULL DISCLOSURE mean?...

Well, technically, we don't have to disclose crappy neighbors as a reason for selling our house (or do we?!) BUT, as a seller, if you've had burst pipes in your home, or a leaky roof, walls that spontaneously opened up with new holes, or a basement that is actually a pool in the spring, EVEN IF YOU HAVE TAKEN STEPS to repair these, should be disclosed when you sell the property. Also, if you've made updates, upgrades or major improvements to the property, it is best to disclose these as well.

When you list your home, your listing agent should have a seller's disclosure for you to fill out--whether you've lived in the home or not, I'm sure you would be aware of any issues in which you had to fix--so disclose them. Why? To avoid future litigation issues.

I'll tell you of close friends that bought a house with a finished basement--the sellers had finished the basement and claimed everything was up to code. After the closing AND beginning work to modify the basement in to an apartment, they found that permits were never pulled for the upgrade work already done, and the plumbing was too close to the walls according to the local codes. The sellers claimed they didn't do that work--so it turned in to a "he said, she said" thing because nothing was in writing. Then when my friends started pulling down drywall as they ensured everything was up to code, found the drywall stamped with the year it was made...which proved the sellers had done the work--and not up to code. The sellers then had to pay to bring things up to the CURRENT code requirements.

Could this have been prevented? Maybe--they did get a home inspection, but the inspector didn't identify that these could be code violations, or an issue. Was it his responsibility? That depends on the state requirements for his licencing and what he is responsible for. In this case, he was not.

The sellers could have prevented the ENTIRE issue, though, prior to selling, by pulling the required permits before getting the work done and getting the required inspections to ensure they were up to code. It would have saved everyone a LOT of heartache.

In another instance, I had a buyer ready to buy a house, really liked the outside and the yard and called me to view the inside. When I called the listing agent to show the home, she informed me that the seller had built a garage on to the house without getting the required permits pulled...and as it turned out, he built his new garage on his neighbors property. As soon as my buyer heard about this, they didn't want to even deal with someone that couldn't follow the rules. I didn't follow up on the house, but that sellers options at the time were to take down the garage (lowering the value of his property), request a variance in the building--not easy to get when no permit was pulled to begin with, or buy the land from his neighbor. This seller could have prevented issues by pulling required permits.

SO--do you HAVE to disclose changes, or issues when it comes to selling your home? Well, gee, Wally, I guess you don't HAVE to, but golly, would it be the right thing to do? Wouldja really went to deal with all the potential litigation and lose any profits you might have gotten from selling the house?

But what about those crappy neighbors? Well--maybe they'll talk their friends (if they have any, that is) in to buying the house and they can live next door in harmony!

Until next time!

Valerie Sullivan
Realtor, GRI, e-Pro
Valerie@ValerieSullivan.net
www.ValerieSullivan.net

Hi all! I hope this finds you doing well!

With the housing market the way it is right now, I'm sure we either know someone, or are dealing with it ourselves the choice of having to sell a home or rent it out and trying to figure out what is the best option. Utlimately the decision IS yours as to what you do decide to do, but knowing some information, and the right questions to get answered can help a great deal.

I know there are many people that, due to a job transfer, have to leave their house behind. They've put the house on the market for six months prior to leaving, with little to no activity. And, like it or not, a house WILL sell at the right price. Sometimes the challenge is figuring out what that price is. And if you've only owned the home a few years, or took out a second mortgage on it, you probably don't have a lot of wiggle room to keep lowering the price.

SO, what are the options? Well, you can sell via a short sale, and deal with those consequences, continue to lower the price until it does sell, you can leave it vacant until it does sell, or just leave it vacant without having it on the market to sell, or you can choose to rent out the house. The choices are yours. If you have a mortgage, though, and your income won't cover a mortgage on this house, plus a mortgage on your next house (or rent if that's your choice), then you have to figure out where the money is going to come from to pay that first mortgage payment.

Renting can be an excellent option, but there are things to remember when you do rent out your house. First off, chances are, even if you have excellent renters, the house is not going to be in as good a shape as when you left it. There is going to be normal wear and tear, things wear out, settling happens. Granted other things can and do happen, whether it's the fault of the renter or not. You do have to realize that nobody will take as good care of your house as you do. This doesn't mean that by renting the house will be "ruined" forever. Sometimes some repairs are required, or painting, new flooring, things like that, but keep in mind, after living in the house for a few years yourself, you would likely be changing out the flooring and painting anyway.

When you rent, there are a couple of ways you can handle the renting. You can manage it yourself regardless of where you are. Some people see this as a hassle and don't want to bother. If you have a good rapport with your renters, though, it can work out wonderfully. The disadvantage, though, is that you can't see for yourself damage or issues--some issues that can be fixed are relatively minor and you can save money by doing them yourself. If you have a good tenant, they often take care of many minor issues themselves (I LOVE renters like this!). There are plenty of places that you can advertise your property for rent for little to no cost. Check out the area where you live, and where people go to look to find a place to rent.

The other option is to get a property management company to manage the rental. They usually charge 8-10% of your monthly rent (some will be higher or lower--vacation rentals are considerably higher). Some companies also charge a fee for getting a renter in to the property. This could be a flat fee, or a partial month's rent once the renter does get in there. They show the house to respective renters, let you know what the current market rents are, and a good price for your house if you want to get it rented quickly. With the market flooded with so many properties that are not selling, the rental market is now getting flooded as people think it is a great option--except right now you have to either have a house that is highly desirable, or a great price. Both will ensure it rents quickly.

What's the best way to determine a price to rent? Look around to see what people are asking for properties similar to yours, in the same neighborhood, and see how long those houses have been on the market for rent. To get yours rented quickly, lower it from what everyone else is asking. Think about it, if you were going to go rent a house, and you saw two that were identical, same neighborhood, both in great condition, and what you are looking for, which house would you pick? My guess, the one that's priced lower. Granted, you won't make as much of a profit, however, getting most of your mortgage paid due to a lower rent amount is better than getting none of it paid because you have no tenant.

Things to ask your property management company; if you haven't personally witnessed how they've handled rental issues previously, you'll want to know. How do they handle when the rent is late, what do they do if someone violates the lease in other ways? This could be something as minor as, you thought it was a husband, wife, and small child renting from you, and you find out later it's actually 8 adults in a 2 bedroom house. While some families have no problem with doing this, it may be in violation of the lease--so find out what your management company would do in that case. I would personally be concerned about this, because even if the rent is on time, chances are that my property is not being taken care of as well as it should be if they are violating the lease agreement.

Screening tenants. You obviously want to know you have tenants that are going to pay rent, so how does the company determine that will happen? Some companies will let anyone rent as long as they have the needed cash to move in. Others will do a credit/background check, and of course, there are scenarious everywhere in between. If it's important to you to have a check done, ask the questions.

Eviction. What would constitute an eviction, and how does that work? I know it varies with the state. In the state of Florida, I can have a tenant out of my rental in 23 days if I do things immediately and by the book. As an owner, I can also file a judgement against a renter for damages, and past due rent. A property manager is limited--they can file eviction paperwork and take back possession of the property, but they cannot represent you, or file for monetary issues. If you want to sue the tenant for money, you will either have to show up yourself to do the paperwork, or hire an attorney.

I have seen some leases that do have a provision for illegal activity at the house--in those cases, eviction can happen within 24 hours. This could be a tenant getting arrested for illegal drug activity in the house for example.

In other states, it takes longer to get a tenant out, so you will need to know the landlord tenant laws of the state your house is in. A local property manager can help with educating you on how things work in your state. You can also do a search on the internet for the state statutes, and read through them yourself if you are so inclined.

Rent it or sell it...that is the question...if you're still not sure, if you're sitting on the fence, and not making a decision because you don't know what is the best way to go, sit down and write down on a piece of paper all the facts, and the pros and cons of doing both. Write down a list of questions that may help you with your answer. Can you lower the sales price any more? Is a short sale an option? As you get more and more "no's" on your list, you'll find what your options are, and be able to make a better decision as to what to do.

Good Luck!

Valerie A. Sullivan

Broker Associate, GRI, e-Pro

Hi!

I know it's only been a day, but I thought it was worth posting again so soon because of the new program HUD has just rolled out called Hope for Homeowners.

If you go to www.hud.gov it has fact sheets that explain the details, but in short, this program is designed to help homeowners that want to stay in their homes, but can no longer afford the payments, but if they sell the home, it will have to sell through a short sale.

It is designed to work through your current lender, with HUD, to refinance your existing mortgage to 90 percent of the current appraised value through a new fixed 30 year FHA mortgage.  There are restrictions, of course.  It must be your primary and only home, and when you do sell, you share the equity in the home with FHA, but considering you would walk away with NO equity in a short sale, this could be a great option for you if you qualify.

If you, or someone you know are in a position where you are unable to pay your mortgage, take a look at the website above and go to the information on Hope For Homeowners.  Check out the qualifications and see if you qualify. 

All-in-all, it looks like a good program that could help a lot of homeowners in trouble right now.

Good luck!

Hi all! It's been a hectic time the past couple of weeks with summer in full swing!

I've talked with many buyers as well as sellers the past couple of weeks and interestingly enough, a question that stood out from both sides had to do with the homes that are still occupied and whether or not the seller should be at home during the showing(s).

Some sellers may not think it is an issue to be there and to answer any questions that might come up, however, I don't think it is a good idea to be at home if your home is being shown for a variety of reasons. First of all, every buyer I've spoken with prefers to be able to walk in and get a "feel" for the house on their own terms. I've shown some homes where the seller remains in the house, and while helpful, respectful and friendly, the buyer is there to scrutinize the house, not visit. A buyer does not feel comfortable to open cabinets and closets if the seller is "hanging out" in the other room, and it quickly comes off their possibility list.

Also, while a seller must disclose known issues with the home, they do so via a seller's disclosure. If in the home when a potential buyer comes through, and the subject comes up of "why are you moving" and then the seller proceeds to explain all the reasons why--one of them being "well, it's just too far from town and with gas prices we just can't afford to be running back and forth..." While this may be honest, now you, as the seller, have brought to light gas prices and the distance to the nearest amenities. This may not have been an issue for these potential buyers, but now you have them thinking about it, and that may be the only reason they do cross it off their possibility list.

Another reason, buyers are working with their agent, who has gotten to know them and what they're wants and needs are in a home. When they view your home, they discuss with each other what they do and don't like about the home. They do not feel comfortable talking negatively about your home if you're in the other room, or in the room they are in for that matter.

If a buyer has questions that are not answered by the listing itself, or the seller's disclosure, then they let their agent call the listing agent to find out the answer.

I understand that sometimes it is not feasible to leave the home--especially if there are pets or small children involved, however, in a case like this, it is best to walk out of the home when the buyer and buyer's agent arrives, and either take the pets for a walk, or play with the kids in the back yard, or even the neighbor's yard if that's possible.

Hi all!

I hope all of you were able to enjoy the wonderful weather we had here this last weekend! I know I did!

I had a conversation this last week with a good friend of mine about short sales. She's in the military and is up to transfer sometime in the next year. Unfortunately, when she bought her current house, it was at the top of the real estate boom 2-3 years ago. Renting out the house was not an option, and she's well aware of the fact that to sell your home quickly, you have to price your home ahead of the market (meaning what the price will be 30 days from now--not yesterday or today), but to do that, she would have to price it lower than what is owed to the bank--which--as I've mentioned before, is called a short sale.

As any well-informed consumer does, though, she educated herself on the ramifications of short saling her home. She knows what she is and is not willing to do to sell her home. As it turned out, she decided it was worth it to come out of pocket and show up at the closing table with whatever was owed to the bank instead of doing a short sale. And believe it or not, in the 1970's it was not unheard of to bring money--as a seller--to get your home sold. Back then there was no such thing as a short sale.

Anyhow, so why did my friend decide this route? Because she didn't want to take the hit on her credit report. I found an excellent article that explains how much credit scores drop when doing a short sale, as well as a foreclosure, or deed in lieu of foreclosure (signing the deed over to the bank, give them the house, and walk away).

Making the decision between going into foreclosure and doing a short sale is like deciding if you want to get hit by a train or a bus. Hmmm. A foreclosure AND short sale will drop credit score ratings 200-300 points. Someone with an outstanding credit at 720 could see it drop to 420. WOW! So if I have "good" credit at 650, it can drop to 350--what a punch in the gut! I can't say I blame my friend for her decision! But either way, it is a personal decision for everyone, and only you know what the best option is for you. Make sure as a seller, you are informed about all of your options. Talk to an attorney if you have to.

If you would like to read the full article--which also discusses time frames before a lender will even consider giving you another house loan, go to

http://brokeragentpro.com/viewArticle.html?ArticleID=1147

As always, keeping you informed!

Valerie@ValerieSullivan.net