10 Things A Seller Should Know About Short Sales

I am slowly but surely migrating to using ONLY my wordpress site for blogging.  So please visit me there: www.VickyChrisner.com/News.

Here are 10 things everyone who is “under water” on their home should know:

1. If you owe more on your home than it’s worth, you can still sell in most cases, even if you do not have the money to pay the balance of the loan. This is called a short sale.
2. If you do a short sale, in most cases lenders are processing these fairly quickly – from listing to close can be as little as 60 days, 90-120 days is more common.
3. Most lenders will stop the foreclosure process if you are working on a short sale.
4. Most sellers can get full debt forgiveness from their lenders (meaning after the sale they no longer owe their lender).
5. If you get debt forgiveness THIS YEAR (this requires you close your sale by 12/31/2012), most people will not have to pay taxes on that forgiven debt. (See information on the Debt Forgiveness Act here.)
6. A seller’s credit WILL be damaged; but it is temporary. Before you do the short sale, consider your credit related needs, especially as it relates to finding your next place to live.
7. Although high security clearances often require credit reviews, I have never had a seller have trouble renewing their security clearances because of a short sale. Especially in these circumstances, short sales are preferred over foreclosures.
8. Some sellers are eligible for financial assistance when they file for a short sale… It’s mind blowing and I know it, so let me say that one again: YES, some sellers receive CASH from their lender for doing the short sale.
9. Short sale sellers without extenuating circumstances can restore their credit to above 700 – in most cases – within 2 years.
10. Most short sale sellers can be eligible for a home purchase loan in as little as 3 years (via an FHA loan which only requires 3.5% down). Some sellers can get loans sooner.

These 10 things reflect “typical” experiences with short sales…. it does not account for every “what if” which may apply to you.  I am happy to talk with you more to learn about your circumstances and then I can provide you with information about what the most likely scenario is for you, should you need to do a short sale.

Vicky Chrisner, Fieldstone Real Estate

703-669-3142

MyAgentVicky@Gmail.com

How Can I Buy When I Still Need To Sell?

A consumer asked me... "If I have a house I need to sell before I can buy another home, how can I do it? What comes first?" 

It's sort of like the chicken and the egg conundrum.

In a buyers market, a buyer may be able to negotiate with a seller to enter into a contract that is contingent on the buyer selling their own home (this is called a home sale contingency). In these cases, though, it presents a risk to the seller, and their agent will help them to evaluate that risk so they can decide if they should take it. The evaluation will include conducting a market survey on the buyers home, among other things. Buyers will have to demonstrate to the sellers that they have positioned their property to sell in the current market.

In a sellers market, it's unlikely that the seller will agree to this. Instead, they will wait a few more days and take the next, non-contingent, contract that comes in. SO, then what? What's a buyer to do?

Well, in this post, preferred lender Marc Aymard has provided financing related alternatives to this, allowing the buyer to choose their new home first, and then sell their existing home, without having to make the contract for their next home contingent on the sale of their current home. Not all buyers are comfortable with this... some won't qualify, others just can't handle the stress.

So the next option is for one to put their home on the market, and secure a contract that contains a seller contingency called a "Home Of Choice" contingency. This is becoming more common. This contingency allows that seller to then go and find the home of their choice... and make an offer that is contingent only on the settlement of their home (which is much less risky than a full home sale contingency).

I guess the bottom line is there is not one answer that is always right... it depends on market conditions and the parties involved. An experienced and skilled real estate agent can help you evaluate risk, provide resources and alternatives and determine the best course of action for your family.

If you happen to be in this exact predicament, wondering how exactly you make all these puzzles pieces work together, well, you're in luck. I know how, and I can help you get the plan put together. Contact me today and let's set up our initial consultation...

Vicky Chrisner,Dulles Area REALTOR  

703.669.3142 

MyAgentVicky(at)gmail.com

Market Stats - May 2012 - Looking Good

I sell homes and land in the Northern Virginia/Dulles region and throughout Loudoun County.... and today I am looking for people who wish to list their homes - like yesterday - and get them sold today. 

Here's why:The May market stats were just released from MRIS our local MLS system. 

In Northern Virginia, compared to last year, Sales Volume is up 10%, and inventory is DOWN 20%... That means I have 10% more people buying than last year, but I have 20% less homes to show them.  Simply put, more demand, less supply. And yes, that is putting upward pressure on pricing in our area. Prices in the region are up almost 7% compared to last year.

Interested in learning more?  I have charts, stats and tons of info... just go to my web site, and check it out.

If you are thinking of selling, this might be a great time.  I am waiting for your call or email.  Let's get together!

Vicky Chrisner
Selling Homes and Land in the Dulles area
703.669.3142
MyAgentVicky@Gmail.com

The Market Recovers, Appraisals Lag Behind

Today as I was discussing an appraisal issue with a couple of fellow practioners, I learned that appraisals are suddenly becoming more of an issue.  And, unlike a year ago, it's not really because appraisers that don't know the market place, but more because of the market changes.  A year ago, 6 months ago, we had a lot more distress sales in the market....and the "traditional" sellers had to compete with the distress sales in order to be able to sell.  But for the past 6 months things have been absolutely ROCKING and there has been upward pressure on sales prices... and we ARE seeing prices go UP.  (Sellers - this is where you cheer:  YAY!)

BUT, (and there's always a BUTT, isn't there?), appraisers are pulling comps of past sales... You know, from when we had so many distress sales, and when the market wasn't so hot.  As a result, appraisers are having a hard time justifying the new sales prices that the market is bringing.  THAT is a problem we haven't had for several years.  It's good news...."ish"... I guess.  Well, the cause is good.  The side effect - not so much.  (Buyers and sellers together:  Boooo!)  A low appraisal can kill an otherwise perfect real estate sale.

Honestly, I am frustrated.  I get it, but I am frustrated.  "Fair Market Value", is, by definition, what a willing buyer and seller agree to in an arms length transaction.  It is not what an appraiser thinks.  And yet, appraisals are holding back our market recovery.

So I am trying to be an optimist here, and focus on the positive - the market is strengthening.  And I will try to take the problems in stride.  Dear sellers, and buyers, I hope you do, too.  Real estate these days is not always a fun game to play.

In the mean time, take a look at theses posts:
To make you laugh:  Your Home, as seen during a real estate transaction.
To help you get your appraisal: Get the best appraisal for your home.
Interested in learning more about our market place?  Visit the Market Statistics part of my web site for the latest news, stats, and information.

Can I Have More Than One Agent?

A Consumer Asked: Can I have more than one agent?

Hmm... The short answer: Maybe, but not if you're *my* client.

But let's back up a bit.  When you begin working with an agent, there's an important discussion that should be had - right up front.  It's about the difference between being a client and a customer.  (Yes, there is a legal difference.)

If it's determined that you will hire that agent to be your agent, then you will likely be asked to hire them exclusively.  This means you will be asked to pledge your loyalty (in writing via a contract called a listing agreement or buyer/tenant agency agreement) to work with that agent, and only that agent, to help you with your real estate need (be it buying, selling or renting).

I admit I always laugh a little when we talk about loyalty in a brokerage agreement... it feels a little like asking a guy to go steady; except it's one sided:  "I don't want you to see other girls.  But, I will be seeing other guys."

Doesn't sound fair, but let me finish:

You see, REALTORs do not get paid by the hour, for their effort, for their gas, or the many tools that are required to do the job sufficiently.  Together, these things cost thousands of dollars every year.  We only get paid if we are successful in helping someone buy, sell, or rent a property.  As a result, it seems unfair for you to work with more than one REALTOR, since - unless you're planning to rent, buy, or sell more than one place - only one REALTOR can get paid for the job.

On the other hand, when you ask us to help you buy, sell, or rent a property, you're not guaranteeing us payment... You're just representing that you are ready, willing and able.  So, we can't only spend time with you... If we want to pay our own mortgages next month, we will have to have more than one client.

It is for that reason, that the REALTOR community has established rules that prohibit us from "stealing" another agent's client.  If you have a written agreement with another agent/brokerage, there are legal and ethical issues that prohibit me from being able to work with you while that agreement is in place.

It is also for that reason that I only work with people who are working exclusively with me and no other agent. I'll post more about agency later.  But since I got this question twice today, I thought it was an important post.  I hope the next time an agent attempts to explain exclusivity to you, it makes a bit more sense.

* * *
In the mean time...Got real estate questions?  I got real estate answers.  Email me, sent me a tweet, post on my wall, text or call me.

Remember, with me, you've got a friend in the business.

Vicky Chrisner, REALTOR

MyAgentVicky@Gmail.com

Twitter: REWhisperer

Facebook: The Real Estate Whisperer

Text: 703.728.5766

Old Fashioned Phone: 703.669.3142

Sold 605 Valley View Ave SW Leesburg VA

Vicky Chrisner | (703) 669-3142 SOLD: 605 Valley View Ave SW, Leesburg, VA 4BR/3.0BA Single Familyoffered at $349,000SOLD FOR $352,000 Year Built 1986 Sq Footage 2,129 Bedrooms 4 Bathrooms 3.0 Floors Unspecified Parking Unspecified Lot Size 10,019 sq ft see additional photos below additional photos     Vicky Chrisner (703) 669-3142 Find more homes for sale in Leesburg at www.VickyChrisner.com FIND OUT ABOUT OTHER SALES IN YOUR NEIGHBORHOOD: www.20175HomeSales.com

Posted: March 09, 2012

Loudoun Real Estate Market Looking Good

If you keep up with my blog, you know my opinion of the market. If you keep up with the Loudoun County market stats posted on my web site (and updated monthly), then you have already seen the evidence for yourself. And if you read the newspapers, then you will see that a recent survey of other agents and area builders reinforces what I have been sharing: The Real Estate Market in Loudoun County is looking good! :) The hottest submarkets? Ashburn, Brambleton, Potomac Station, and Potomac Falls....and homes priced $400-500K, and just above $1m....but homes in Western Loudoun are selling, too! In general, Loudoun is rockin'! In fact, inventory is so tight, the sale of land is picking up again too, and custom home builders are seeing an increase in the number of their contract. This is of particular interest, as building a custom home generally requires more than a desire... it requires a significant down payment and to qualify for a loan, borrowers must have a high level of liquidity and financial stability. Interested in learning more about real estate in Loudoun County? I am here to help! Vicky Chrisner 703.669.3142

Refinancing Your FHA Loan Now

Yesterday I received another "Mortgage Minute" video from one of my favorite lenders, Pat Cunningham at Home Savings Trust. These videos are sent to his sphere of real estate agents so we can provide updates and information to our clients. In this video (as always) he gives some good information. But the most exciting news in this update won't even impact my real estate business. It could, however, impact your life.

Did you buy a home prior to May 2009 with an FHA loan? If so, this new deal effects YOU. Pat said they have a new option to refinance those loans - which are likely about a 5% interest rate - into today's loan prices (approximately 3.75%), and you will NOT have to pay the new mortgage insurance rates, there will be no appraisal, and no closing costs. For many of you, this could save a couple hundred dollars a month.

Watch the video yourself (note: He talks about this last, so you can skip to a little more than half way through the video if this is all you wish to hear.)

Want more information? Talk to Pat: Patrick Cunningham Main Number: (703) 766-4636 Fax Number: (703) 352-1289 Email: pcunningham@hstmortgage.com

 

I will be forwarding this post to several of my past clients... I hope you pass this on to anyone else you know. I want you to remember that I am always looking out for you, and will be sharing news that I think you can use whether you're in the market to buy or sell, or not. So, stay tuned to my business facebook page at www.Facebook.com/TheRealEstateWhisperer.

Also, if you're a client you may notice my web site has a new format... and I am loving it. It is a work in progress, I am still customizing things, so please explore and give me your feedback. What do you love? What do you think should be added? I want it to me the type of interesting web site that keeps you coming back to use resources regularly...and something you will likely be sharing with others.

As always, please know I rely on you, my friends and clients, to help feed my business. If you know of anyone who is looking to buy or sell a home in the Loudoun or Dulles area, be sure to connect me!

Vicky Chrisner, REALTOR

MyAgentVicky@Gmail.com

703.669.3142

So You Want To Be A Real Estate Agent?

I hear this from friends quite often... "I want to get my real estate license. I think I'd make a good real estate agent. I like looking at houses."

While the meat of the business is far more than looking at houses, the truth is that most agents fail because they can't find the people who want to look at the houses - or at least not the ones who wish to purchase them and are ready, willing and able.

See this post on Trulia, where someone posted, "I recently got my license, activated it and got my MLX lots of money invested.. I signed on with a brokerage that supposedly has one of the best training's out there but all they have told me is to send out cards and call my family..seriously...is there any brokerage firm that will actually say "hey agent here is a property go sell it or here is a buyer find them a house? or do i practically walk around in the dark questioning why i ever decided to make this my career and feel completely alone?"

Sadly, this agent will not likely make it. You see, the brokerage hired you to find business... not the other way around. And the brokerage was right when they told her to talk to the people she already knows - Are they willing to hire you? Refer you?

In this market, I know I would not hire someone who is new. Buying or selling a home a HUGE investment decision and very complicated and when you hire a real estate agent, you're relying on their expertise. Expertise you get from doing business. In some cases a new agent may not know as much as their consumer. It takes years and years of experience.

Luckily, when I entered the market as a new agent, I was not new to the business - I'd been working in real estate for decades, and so the transition was easier for me.... but it still took adjusting. I wasn't used to having to ask for business or referrals either. My advantage was once I had the "lead" I had the experience to justify them hiring me. But what if you were a home maker or negotiated labor contracts for a living? Not only are you not used to having to "find" your next client, but once you have them you're not really sure what to do.

Sure, some people get lucky - and I am often surprised by some of the people that make it in this business. It can defy logic. Maybe that will be you. But if you're that lucky, maybe you should just play the lottery.

Bottom line, here is my advice to anyone who wishes to get into this business... You are starting a new business, you are self employed, you are not getting a job. It is not the same. And, the projection on what you should make the first year... Here's how you figure it out:

How many people do you know RIGHT NOW who will buy or sell a home in the next 12 months? Of those, how many people will hire you to help them? Multiple that number by 75%, and those are the clients you'll have this year. Guesstimate your income per transaction based on sales price and the normal commission charged in your area, and then take out the costs for your broker, taxes, and expenses. (Generally an agent gets to keep 30% of their gross earnings.) That is what your projected income will be in the next 12 months. Are you excited? Probably not so much, but it's the truth that no one else wishes to tell you.

Yes, marketing helps, but the cold calling, bulk mail, door knocking, etc. can only do so much. It's a drop in the bucket, because everyone who talks to you will not hire you. Some will. Many won't. Once they do, if you do a great job, then they will refer you and use you again. That's why it's worth it. It's never about today's sale. It's always about tomorrow's.

Having shared all of this info, I have a message for my friends, family, and clients: I hope now YOU realize why I need your referrals, why I need your business, why I work hard to try to be the smartest, best, most loyal, most helpful, most competent real estate agent you know. If I have managed to establish that impression in your mind, take a moment to think about who you know that needs my help, and then connect me. I will be forever grateful. Without the support of my friends, family, and past clients, I would have no business. Thank you, thank you, for your continued support.

***

Vicky Chrisner, REALTOR

703.669.3142

MyAgentVicky@Gmail.com

www.VickyChrisner.com

I Love My Docusign

If you’ve known me for a long time, then you probably know I am not a gadget geek. I do not own the latest greatest techno-toys and I don’t buy the first release of anything. New gadgets and systems slow me down because I have to adjust, and I do not like slowing down… especially if I am going full speed and quite content. But, some things have an advantage that is so great, so obvious, so clear, that I think anyone who doesn’t embrace it from the start is really shooting themselves in the foot. Docusign is one of those things.

Docusign is a web based program that allows electronic signatures. In most real estate transactions, it’s perfectly acceptable, and the law has been adapted to ensure enforceability of electronically signed contracts. And, oy, it saves so much time.

I still know some agents that get every signature in person. I wonder how that is possible? Do they turn away clients who live far away?

Many agents are still stuck in the days of faxes… Faxes were “the thing” back in the early 90′s (newsflash: that was TWENTY YEARS AGO). I can remember thinking “Wow, this makes things so much easier… No pony express or personal courier! Woo hoo!” And the speed of business got faster.

Then we started to use emails – and send documents that way… that happened not long after faxes became commonplace, and became the norm around the turn of the century. But, that still required an internet connection, email, a printer, paper, a pen (for signatures) and then either a fax or scanner so you could return the documents. Still, better than the pre-90s alternatives but “Pfft!”.

Docusign has revolutionized the way I do business. It’s the best money I have spent on my business. And, shockingly, most agents still haven’t embraced it.

With Docusign, anyone with email can sign without printing the document… so no printer, paper, pen, scanner or fax machine are needed. Many people get emails on their phone and although proficiency with that still varies, some of my clients can sign a contract on their phone. But, whether using a laptop, iPad or phone, I have had people driving or flying cross country who have signed documents in a car, train, or airplane. No fuss, no muss. Presto magic their contract is ratified, their property sold, their dream home officially promised to them.

My clients LOVE it! LOVE, LOVE. It’s the way business is done today. Real estate might be “local” but all the people aren’t always local… and even if they are, compare the inefficiency of me driving to someone’s home or office and waiting for them to be available, flipping through the papers to get a signature, then having to figure out how to get them a copy while I am there, and then driving back to the office or to someone else’s office to facilitate getting it to the other party. We’re talking hours. Now, contracts can literally be ratified in minutes.

I know of some other electronic signature options, although I understand they are more buggy than Docusign, and I don’t want to fix what is working so well. (Remember how I said I hate slowing down to learn new stuff when I am running full speed? Still true.)

And last night I felt like a complete geek. It was Saturday night and I was excited about an upgrade to this program. I got an announcement from Docusign that more improvements are on their way, with 2 that make me particularly happy! MORE people will be able to use their phones to sign the documents thanks to some changes. There will also be a portal so clients don’t even have to wait that extra 30 seconds for their email to come through – they can just log right in and sign docs the way I can. I am SO excited!

To agents reading this that haven’t signed up – now’s the time.

I have already gotten one client because of Docusign. They had an agent selling properties for them, and I presented an offer via Docusign. Because of the seller’s schedule, the listing agent asked if I could send the contract to the seller via Docusign to sign, and of course I did. The contract ratified immediately. The seller, shortly thereafter, took the first out to pull the remaining listings from his then agent and asked me to list those properties….which I did. The seller simply said he needed someone who did business at his speed.

The rest of my clients didn’t discover the beauty of Docusign until we were well within the process, but they love it and I get fabulous feedback. Even a 80 year old lady with limited techno-knowledge had no issues with signing via Docusign when she was contracting for a house in Virginia from her Texas home. None. She was thrilled when she did not need to buy another ream of paper and more ink for her printer, or wait on a Fed Ex package.

To potential buyers and sellers, here’s your take away: I believe in old fashioned service, and that means delivering to clients the type of service that most benefits them. If you are not the jet setting kind, and you don’t even really “get” email, then this may not be for you. Rest assured that I will happily meet you in person, and will always deliver the type of service that you want and need….but I will have a plethora of resources that I use so I can provide that service to you. And even YOU will benefit from Docusign. When I am not driving all over the region to get signatures from others, it means I will have time to to spend, face to face, with you.

EVEN REALTORS MOVE!

Even REALTORS have to move sometimes... and the time for me has come!

I am pleased and proud to announce that I have completed my transition from a national franchise brokerage to a local boutique brokerage based in Loudoun County called Fieldstone Real Estate.  

As a result of this change, you'll be seeing some differences in marketing materials but clients who have been working with me for many years can already attest that there has been no change in the service level being received.

I have a great new web site that is being published for the first time later today... You can find it at the same old URL:  www.VickyChrisner.com

Like any good real estate web site, you can search for your new home right there.  Unlike many other real estate sites, this web site is updated hourly with a direct feed from the MLS system... that means when my web site says the house is available, it is!  Imagine that!  No more lost time drooling over listings of homes that are no longer available!  Plus, when new listings come on the market, you'll see them listed here within the hour!  With the market heating up and the best homes often selling within days, you don't have time to be leafing through old listings.  

I'll be adding lots more info to this web site in the coming days, weeks and months and look forward to your feedback.  If there are some real estate resources you'd like to see, email me at MyAgentVicky@Gmail.com.

My "New" Contact Info is basically the same - only the logo and email address has changed.  Reach out to me anytime for the real estate info you need.

Vicky Chrisner

REALTOR (R) 

Serving Loudoun County and the Dulles Area

703.669.3142

MyAgentVicky@Gmail.com

www.VickyChrisner.com

Facebook.com/TheRealEstateWhisperer