YESTERDAY'S ROADBLOCKS ARE TODAY'S DETOURS:

You may or may not remember the day when a homeowner could put a sign in the yard, their listing in the MLS, and close in 90 days without any delay or setbacks. Buyer's didn't need to show proof of income, didn't even need a down payment to get into a home. Appraisers and underwriters were a buyers and seller's best friend, not to mention the real estate agent, attorney and title agents as well. WOW; that was just 5 years ago and that run had a string of 20 plus suscessful years. Now look what has taken place since then; buyers need a minimum of 5% down for conventional loans and thats only if they have exceptional credit and acceptable debt ratios. FHA has taken their share of the mortgage market but their qualifying credit scores have risen of recent months and may continue to rise. Appraisers and  underwriters may still be friendly with each other, but everyone else in the above groups are looking to reconnect within this circle of the real estate transaction. The appraisal/underwriting rule of thumb before 2006 was that the price of a home must be worth what the buyer is willing to pay for and what the seller is willing to accept at. Get the "Clear To Close" out to everybody and move this puppy. Here are some seller tips if you don't want to waste your time in this market, but more importantly, if you don't want to lose value in the upcoming market. 

1. MAKE SURE YOUR HOME IS PRICED RIGHT THE FIRST TIME:   Appraisals are brutal in this market and an agent’s Comparative Market Analysis (CMA) has to be as accurate as can be to close a possible deal. More importantly, the starting price of your home needs to be within the lower to middle tier of the CMA the agent submitted during their Listing Presentation. This is the biggest mistake and the costliest one when first entering the market and the seller can prevent this by his or her faith in the Listing Agent’s ability; after all that’s why you chose them to represent your home.    

 2. VISIT YOUR COMPETITION:
See who you are competting with and take notes. CMA's are only pictures and limited details and we believe touring the competition is a real educational piece of our business. Market time is important in a declining market and this must be highlighted with your competition so you can avoid their mistakes. 

3.  SELLERS NEED REGULAR MARKET UPDATES FROM THEIR AGENT:
Yesterday's closings affect today's listings and this has never been more true in any recent era of real estate. The market is starting to fluctuate in certain areas so it's very important for an agent to keep an eye on the activity in your general market. This watch includes new listings, closed listings, price reductions, back on the market listings and contingencies. Improvising is more important than you realize and the main reason why sellers cancel their listing or let their listing expire with one agent and list their home with another agent a few weeks later. APPRAISERS AND UNDERWRITERS DEPEND ON STATICS TO APPROVE SALES, and this will not change anytime soon.

4.  GET AN APPRAISAL BEFORE LISTING:
Yes, you will get a bonafide CMA from most agents, but agents aren't appraisers. You'll get a detailed report that may include antisipation, or what your home could sell for in the next 12 months based on the appraiser's statistical data. This should only cost you about $250.00 to $275.00 dollars but we'll reimburse you this cost at the closing table as your Listing Agents, so this is really a wise investment for all sellers. We suggest using an FHA Approved Appriaser so that any FHA issues can be addressed immediately, as the FHA Appraiser is also the FHA Inspector for FHA buyers. You didn't know that, did you? All agents should submit a practical CMA to perspective clients, but having an appraisal on your home gives credibility to your listing price, and we can note that in the MLS if it warrants the remark.

     Price, condition and location are the deciding factors respectively in this market. There has never been a time that the Real Estate Industry has been impacted this much by foreclosed and short-sale properties, and somtimes these properties have to be used in an appraisal report. Every buyer's lender realizes the risk their at when originating a loan in a down market. Their loan is really only as good as the next sale in that area, not the last sale in that area as it was in the past.