In the real estate business it’s called a “White Elephant:” An excellent house for sale which just sits and sits.  Often you can recognize it by the tall grass and weeds overrunning in the front yard, an occasional broken window here and there… The cause of this blight is almost always the same – overpricing.

This situation is this:  your home is for sale and the prospective buyer wants to buy it, but says, “I like it, I want it.  But I will not have the money for a couple of months. Can I move in until we finalize the sale?”

Possession of a home usually changes from seller to buyer at “closing,” but in some cases a home buyer will ask the seller to grant possession before closing. Sellers make the final decision as to whether an early buyer possession makes sense, but you will find the seller’s agents RARELY encourage this situation.  Too many things can go wrong.

One of the best ways to kill a sale is to allow a prospective buyer to move in a considerable time before settlement.  Often when this occurs, it is difficult to get the buyer to go to settlement.  He may keep findings things wrong with the house, keep insisting they be fixed, or even worse demand that an adjustment be made to the price.  Can you imagine if the loan never gets approved and the buyer now is living in your home?  What if he trashes the house or makes unwanted changes?

Sometimes the result is even more disastrous.  The seller becomes disgusted with all the alleged complaints and calls the whole sale off.  Now you need to get the buyer out of the house, potentially do some cleaning, repairs and ultimately the seller must then start all over again!  

In my opinion, it is better to let a house sit empty than to let a prospective buyer move in before the closing date.  Although it is not good for a house to sit empty for a long time, it is still faster and a better way of selling it with the least amount of trouble. If you do agree to early buyer possession, it should most definitely be handled with a written agreement that describes the duties any responsibilities of both parties.  Protect yourself and your investment.

When you are showing the inside of your home to a prospective buyer, remember that first impressions are lasting and have an important effect on a potential sale.  It sends a clear message to potential buyers.  A clean, well-kept home shows a home that has had good care and has been propertly maintained.  Put yourself in the buyer’s shoes.

Re-paint the interior if it needs it, but use neutral colors, if possible.  This is not an expensive DYI project or even one to hire out.  An attractive, comfortable living room is a major attraction, but a sparkling clean kitchen will appeal to the prospective lady of the house and as we all know…her opinion carries the most weight!  It is the heart of any home, so keep it spotless.  NO dirty dishes.  Put away your soaps and towels.  Women are also sensitive about the bathrooms: keep them clean, orderly, and uncluttered.  Again, put away your personal items.

Bedrooms are important – arrange their furnishings neatly.  Shiny windows not only are a great asset but let sunlight in and brighten the atmosphere.  Clean out the clutter in the closets, basement, and garage.  If you have a pet please clear them out for the showings.

Bottom line:  de-clutter, organize, and clean.

PLEASE contact me if you have any questions regarding your home.

Monica McNamara

Fabulous West Ocean City location in the Marsh Harbour Community.  End unit townhouse duplex design w/2 car garage. A private deeded boat slip is included. Community pool and clubhouse for your use and enjoyment. Assateague Island bay views. Convenient to restaurants, shopping, but just minutes to the boardwalk.

In light of all the recent storms, hurricane’s, floods and earthquakes, it’s important that your home is protected.

In this article from TGM Group, LLC, they discuss the many issues you should address.

This is an article from Realty Times that is just so “right on” with their information, I felt compelled to share it in it’s entirety.

It has long been a motto of real estate, and the saying goes, “location, location, location.” It’s what sells a property, they say. But recent times have brought to light that the real deciding factor on how fast, or even if, your home sells all comes down to price.

It’s not that buyers are attracted by shiny, new things, but in a sense they are. When a home or condominium is newly listed it gathers a lot of interest. The listing agent may send out emails, webcasts, and virtual tours. They launch their entire marketing program. Even the MLS indicates the home as “newly listed.” After a few weeks, however, if no momentum has been built, the property will then face a must steeper challenge on the road to selling.

First, homes that have been on the market a considerable time lose their competitive advantage. A buyer may see a home hasn’t moved, and may come in with a low offer price. Depending on how desperate the seller is, they may feel obligated to take this offer.

Second, no one wants their home to sit on the market. It can interrupt plans to move and to buy. One of the best game plans is to price your home to sell.

This means taking a good, hard look at the area comparables. How much have homes been selling for in your area? How does your home compare in terms of amenities? Your real estate agent can be invaluable when it comes to correctly pricing your home. Sellers judgement can be easily prejudiced by emotional attachment to the home and hopes for certain profits.

If your area is experiencing a strong buyers market, that means you need to be even more competitive. You may need to price your home a little lower than you had hoped for. If you are in a sellers market, you can generally ask for a bit more in the asking price.

One tried a true method a REALTOR will use to snowball interest in a home is to actually underprice it. If your home is in a desirable location and you undercut the competition, you may find yourself fielding multiple offers. How does that work?

A group of buyers are all looking for a home in your lovely neighborhood. Comparable homes to your are priced around $250,000. So, you price your home at $220,000. Buyers jump at the chance to get such a bargain deal …. buyers being the operative word. This can create a bidding war between buyers who have fallen in love with your property. In many cases, the final sale price ends up being more than you would have gotten had you listed at a higher initial price.

Have your upgrades priced you out of the competition? Renovating your home with upgraded fixtures and granite counters can be very appealing. But if homes in your neighborhood are basic models with Formica counters and fewer fancy upgrades, you may have a hard time finding a buyer who will shell out more. This is one way location is very important. You must make sure you’re aren’t overpriced for your location. Depending on your area, you may have to eat the costs of some of your previous upgrades in order to get a sale.

And finally, are you being greedy? Sometimes people have a magic number in their head of the profit they’d like to make by selling their house. They already have that money spent on the upgrades and toys they’ll buy for their next home. But selling is a time to be realistic.

Rely on your real estate agent to guide you in pricing your home. And good luck selling!

THANKS TO  Carla Hill of REALTY TIMES “From The Market To The Street”

The following information was provided by the State of Maryland, Department of Assessments and Taxation.

Assessment Appeal Process

Property owners sometimes feel that the department’s estimate of their property value is wrong.  The assessment appeal process is available to allow property owners the opportunity to dispute the value determined by the department. Property values rise and fall to reflect the market.  A property owner should file an appeal when they believe that their property is not valued at its current market value.

Appeals may be filed on three occasions:

1)   Upon receipt of an assessment notice;

2)   By a petition for review;

3)   Upon purchase of property between January 1 and June 30.

Appeal on Reassessment

Property owners will normally receive a Notice of Assessment every three years that shows the old market value as well as the new market value.  The new value reflects the market influence and other conditions affecting the property from the time of the last assessment.

If you decide to appeal, the first step is to reply to the Notice of Assessment by signing and returning the appeal form within 45 days of the date of the notice.  Following this, a personal or telephone hearing will be scheduled.  You have the right to postpone this hearing one time.  Appeals can also be made in writing, eliminating the need for a hearing.

Petition For Review

If events have occurred since your last regular assessment that you believe have caused your property value to decline or if you failed to respond to the Notice of Assessment within the required time  frame, you may file for a petition for review by January 1 of any year.  Petition forms can be obtained from your local assessment office or on the State of Maryland, Department of Assessments and Taxation web site located under Real Property.  After filing the petition, you will be scheduled for a hearing; or, if you prefer, your written submission can be reviewed eliminating the need for a hearing.

Appeal Upon Purchase

If you purchase a property and the property is transferred after January 1 but before July 1, you may file an appeal within 60 days of the transfer.  After filing a written appeal, you will be scheduled for a hearing; or, if you prefer, your written appeal can be reviewed instead of a hearing.

First Step – Supervisor’s Level

The first step of the appeal process, known as the Supervisor’s level, is informal.  You will present your case to an assessor designated by the Supervisor of Assessments.  Typically, hearings at this level take approximately 15 minutes.

You can obtain a copy of the worksheet for the property free of charge from your local assessment office.  The information on the worksheet will be reviewed at the time of the hearing to assure its accuracy.

For assistance in estimating the value of your property, you can obtain sales data from various sources, including:  property sales from the data search function of the Maryland Department of Assessments and Taxation web site; sales listings located in the local assessment office; commercially available sales reports and other information available at local libraries; local Real Estate offices; personal surveys of recently sold comparable properties in the area; and local listings of sales transactions in the newspaper.  For a nominal fee, worksheets of comparable properties may be obtained from the assessment office.

To be most effective, you should:

• Focus on those points that affect the value of your property.
• Indicate why the Total New Market Value does not reflect the market value of the property.
• Identify any mathematical errors on the worksheet or inaccurate information describing the characteristics of the property (such as the number of bathrooms, fireplaces, etc.).
• Provide examples of sales of comparable properties which support your findings as to the value of the property.
• Avoid the following issues since they are not relevant to the value under appeal; comparison to past values, percent of increase, additional metropolitan costs, the amount of the tax bill, properties in other taxing jurisdictions, and services rendered or not rendered.

Your first level hearing should be viewed as an opportunity to present evidence which would indicate that the department’s value of the property is inaccurate.

Second Step – Property Tax Assessment Appeal Board

Following the hearing, you will receive a final notice.  If you disagree with the decision, you can appeal to the next step which is to the Property Tax Assessment Appeal Board.  The second step appeal must be filed within 30 days from the date of the final notice from the Supervisor of Assessments.

There is an independent appeal board comprised of 3 local residents in each of the counties and Baltimore City.  Property owners generally need no assistance at this step, no fees are required, and they are free to present any supporting evidence.  You can obtain a list of the comparable properties that will be used by the assessment office before the Board if you file a written request to the assessment office at least 15 days before the scheduled date of the hearing.

Third Step – Maryland Tax Court

If you are dissatisfied with the decision made by the Appeal Board, you can file an appeal within 30 days of the date of the board’s decision to the Maryland Tax Court.  The Maryland Tax Court is an independent body appointed by the Governor.  Although the proceedings are more formal than the first 2 levels, it is still considered to be an informal, administrative hearing.  Property owners who are in disagreement with the Tax Court’s decision can appeal further through the regular judiciary system.  Here you will probably need legal counsel.

Summation

The assessment appeal process is a mechanism intended to assure an accurate property valuation.  If you believe that the value placed upon your property is higher than it should be and if you can provide supporting evidence (such as sales information for properties comparable to your own), then it is in your best interest to appeal.

Don’t foreclose! Do a short sale

Short sales are the hottest thing going in the distressed-property market, and the trend is expected to get even hotter in coming weeks, when the government starts handing out cash to encourage lenders to close these deals.

“Banks have ramped up short sale approvals,” said Duane Legate of House Buyer Network, which connects short sellers with buyers. “They’re hiring a lot of the people who once worked in the mortgage-lending industry and moved them over to short sales.”

These transactions, where lenders allow homeowners to sell their houses for less than they owe, accounted for 17% of all residential real estate sales in February, up from nearly 13% in November, according to a monthly real estate market survey by Campbell/Inside Mortgage Finance.

And Bank of America (BAC, Fortune 500), the country’s largest mortgage servicer, has more than doubled the number of short sales it processed in recent months.

Elizabeth Weintraub, a Sacramento, Calif.-area real estate agent who handles many short sales, was amazed at how quickly a recent deal went through. “Bank of America approved it in 24 days,” she said. “That flipped me out.”

This is a huge change from even just six months ago when the short-sale market was stalled and most people would describe the process has real estate hell. Because lenders stand to lose so much on these transactions, they have been reluctant to make short sales happen, often waiting months before getting back to potential buyers.

Beware: You lost your house but still have to pay….
“In the past, many short sales would never come to fruition and the ones that did averaged over half a year to complete,” said Chris Saitta, CEO of Equator, which produces short sale software.

“Things would just fall into a black hole and not come out again,” added Weintraub.

And even when banks did agree to the sale, the process could be further complicated if the original owner had a second mortgage.

In most cases, the first lender is repaid in full before any money flows to a second-lein holder. And because most distressed borrowers are severely underwater, there’s usually nothing left to send on. As a result, second-lein holders are left holding the bag and have been killing many deals.

But that has been changing. For one thing, banks realize that they make out far better financially with a short sale than a foreclosure. “The lenders lose 50% on a foreclosure and only 30% on a short sale,” said Glenn Kelman, founder of the real estate Web site Redfin. “And short sales offer a way to get distressed properties off their books quickly.”

And on April 5, lenders and mortgage investors will have even more incentives to offer troubled borrowers short sales instead of foreclosing.

Under the new Home Affordable Foreclosure Alternatives program, borrowers will earn a $3,000 “relocation incentive” and servicers will get $1,500 for handling a short sale.

The investors who actually own the mortgage notes will get $2,000 in exchange for sharing proceeds of the short sales with any second-lien holders. And, finally, those second lien holders will receive up to $6,000 for releasing their claims.

Lenders participating in the program must also determine the market values of properties early on and inform the owners of just what price they’re willing to accept. Then, if owners come back to the lenders with bonafide offers, they have to be accepted within 10 days.

Equator’s Saiita anticipates a short sale explosion in response to the new program. “The challenge will be handling all the volume,” he said.

The company has already tweaked its software, which 58 servicers use, to handle the new HAFA rules. And that should help reduce the time it takes to execute a sale, which currently averages 88 days.

The boom in short sales may accelerate the end to the foreclosure crisis by cleaning out the overhang of borrowers in distress and replacing them with more stable homeowners.

Plus, these sales are better for distressed borrowers because their credit scores suffer less. Going through a foreclosure can knock 200 points off a FICO score, twice as much as the penalty for a short sale.

Re-Print of Article from CNN Money.com

We are pleased to announce that Kevin (my husband, best friend and co-worker) has earned the National Association of REALTORS newest certification for Short Sales and Foreclosures (SFR). As these type of properties become more and more a part of our marketplace, we felt it was imperative that we be able to deliver the highest level of service to our clients and customers.

We can assist home sellers to navigate the complexities of a short sale, and also help home buyers pursue short sale and foreclosure opportunities.  These types of transactions are not for the faint of heart, but as a SFR certified agent, Kevin can assist with the following:

- Qualify sellers for short sales.

- Direct distressed sellers to finance, tax and legal professionals.

- Negotiate with lenders.

- Protect property buyers.

Kevin and I continually strive to stay abreast of the latest market trends so as to provide our buyers and sellers with only the very best service!