Pricing your home-- 3 questions to ask yourself

What would make my home more desirable over a foreclosure or perhaps a short sale?

If my home were to be appraised, why would an it be valued more than a short sale or a foreclosure property?

What things could I do to make the exterior look more desirable than all other property's in my direct neighborhood?

In this competitive market you must present your home as "the best deal". That means getting your home in tip-top shape and priced with in the price point of other homes in your neighborhood especially if they are distressed sales. If you offer the best, a buyer is going to gravitate to your property and seal the deal.

The flip side to all of this is that if you have a similar home that is bank owned and needs 20k in work then you might want to increase your home price accordingly. This levels the playing field without loosing $$$'s against a bank owned property.

In my opinion buyers want a combination of things. What tops my list are property's that have excellent value and do not need costly improvements to fit their needs.

Short Sales & Second Mortgages

Great Blog I found a wealth of information-- Written by J.Philip Faranda


New HAFA rules are forcing home sellers to negotiate directly with subordinate liens, or, in common terms, second mortgages, on their own, according to Bankrate.com. The way the rules are written, there is a financial incentive for the 2nd mortgage to settle and release the lien, but the onus of getting assurances that the bank will settle rests on the borrower, which seems incongruous with the intent of the law. If the law is that the bank gets $3,000 from the government to settle, then it is the government who should be getting written assurances that they will indeed settle, not the borrower. The article points out that distressed sellers are already bleaguered and beaten up and in no condition to play hardball with another bank.

I agree. Distressed home sellers ought not do this on their own. They need an advocate, and a 3rd party with experience is very likely going to get a better result than a beaten up home owner. This is what we do, but rather than make this post a commercial I’ll also add that here in New York, the attorney should be on the front lines dealing with the 2nd mortgage as well as the first. The attorneys that we have on our team are excellent; the sellers can rest assured that the arrangements they help negotiate are the very best that can be agreed to. They also read the “fine print” with a fine tooth comb. The devil is in the details in these things, especially in New York.

All short sale agreements from lenders should be in writing, and all short sale agreements from lender should specify that they will not go after the borrower for the difference after closing. Anyone can get a short sale with no assurances of financial security after the closing. It takes a professional to ensure that the seller’s obligations in a short sale end at closing with no residual debt. That is our job, and that is how we do our short sales.

Doing a short sale on your own invites peril. We have done dozens, and that puts you in good hands compared to the guy in the mirror.