Just spoke with two more REALTOR(R) friends today who are personally considering short sales, and are in emotional angst over it having come to this.

I asked them both: how would you advise a client who was in the same situation? For all of us, when it’s yourself on the line, our thinking tends to become muddled and laced with emotion.

There’s one common denominator with every short sale seller I’ve consulted– the first thing they all bring up is the moral dilemma of missing a payment and not honoring their original contract. But most of them are up against a wall financially and have run out of options. They’ve tried working with bank, they’ve pulled money out of savings, they’ve pounded the pavement looking for a new job, but the end of the road has finally come.

What I find amazing is the huge difference between the way human beings and a financial institutions evaluate basically the same scenario. The person thinks first and foremost of values and morals, and the financial institution bases their decision on whether their assets are toxic or performing.

Go figure.

Barb Fischer

San Diego, CA

619.339.1396

Post from: BarbFischer.com

Hello to all the buyers and sellers and investors who want the best home, the best price, the easiest/smoothest transaction, the quickest response time, loads up up-to-the-minute info AND a smart guide too–if this is you, may I ask:  would you trust your next surgical procedure to a part time doctor? Someone who has another day job and who does surgery in their spare time? Someone who does not have the time to keep up with and make sense of the flood of information and new regulations in this fast-changing market?

I’m probably talking about your buddy or your friend, someone you really like who just got their real estate license or who has had it for awhile but hasn’t made enough money to stay in the business. It’s noble of you to want to help them, but real estate is a serious, FULL TIME BUSINESS and you are putting your home purchase or sale– perhaps the biggest asset you will ever own– at risk. You need a full time professional, someone who knows today’s market and who can clear the path of hidden land mines.

Here’s how you can avoid hurting your friend, and hurting yourself and your finances too.Tell your friend that in this chaotic market, you feel it is in your best interest to hire a full time professional, and you would like a REFERRAL from them to a full time REALTOR(R) in their office, or someone they’ve worked with before. Agents can share referral fees with each other, so your friend will still financially benefit from your help, without having to spend the incredible amount of hours it takes to close a successful transaction these days. After all, does your friend really want to work 40+ hours a week and then have to spend every spare second working a second job? Time is money and you want them to have a life too. And everybody wins.

2010 Barb Fischer La Mesa CA

Post from: BarbFischer.com

Dear Seller, do you know how hard it is for a VA or FHA buyer to get an offer accepted in most markets today? All things being relatively equal, would you perhaps consider helping a vet, maybe as a way of thanking them for their service to our country?

Dear Investor, now that the FHA anti-flip rule is gone, you could create an entire niche of buying/fixing/flipping homes for an eager ready-made audience of FHA and VA buyers. Remember when you were struggling to get to where you are today? And now you’ve got money and you’re able to buy… it’s a great feeling to “share the wealth”.

Dear Bank, when will you please acknowledge that most buyers will not, and can not wait 5 months or more for your decision, and that prices will fluctuate during that time? And that short sale sellers would just love to get on with their lives.  Most of you only exist today because of a generous bailout. Collectively you now have millions and millions of extra dollars because the feds manipulate the rates… would you be so kind as to start lending again?

Dear Buyer, if you’re serious about buying a home, this is a long-term investment, so quit trying to “get a deal”, because you already are! Do all your financials upfront, know your criteria, see the house right away, write your best offer the first time, and respond to counters quickly.

Dear Agent, please quit listing homes for ridiculously low prices when you know it will up-bid for tens of thousand more. Please don’t collect dozens of offers when you know there’s no way you can respectfully manage more than a few. Oh, and P.S. We all love it when you answer your phone and return calls promptly.

Dear Everyone, emotions can kill transactions, and dreams. Don’t get into a tiff, and remain cool, calm and professional (buyers and sellers too). We all need to think big and keep our eyes on the goal ahead and get the results we all want. All of us are in this together, and this foreclosure market IS the new traditional market, for awhile at least. Let’s make the best of it!

Post from: BarbFischer.com

Lost out on an offer or two? Here’s one of the #1 reasons buyers lose a house they really want: they get there first (that’s good) , they put in the first offer (also good) but then, because nobody else has made an offer yet, they either start to doubt how much they really like it, or its value diminishes (to them) because there’s not a frenzy of other people pursuing it.

You’ve got to fight this facet of  human nature! Whether it’s at a department store sale or on a playground, people tend to disregard an item until they see that someone else really wants it, then its value suddenly shoots up.

So how does this behavior apply to purchasing a home? If there is only one offer, chances are the bank or the seller will submit a counteroffer, but if  the buyers don’t stick with their gut feeling and act quickly, they don’t respond to the counter right away and guess what, a few more offers come in. Then their interest shoots up again, but for many buyers, it’s too late. They’ve either been outbid, or the seller chooses another offer.

Please, go with your gut feeling. Ignore what other people think, it’s going to be your house, not theirs. If you love it, if you can afford it, if the comps make sense, go after it quickly.  You’ll be glad you did!

© 2010 Barb Fischer San Diego

Post from: BarbFischer.com

Short sales, REOs, multiple offers,  non-responsive banks, imploding escrows… whether you’re a buyer, a seller or a real estate agent….you get the picture. It’s all in a day’s work, but these days I think we need a little extra TLC to make it through. Here are my top 10 stress-busters– please add yours!

1. Take a 3 weekend. Plan it now. And actually go on it.

2. Read a novel; business books don’t count.

3. Try a new recipe and cook it yourself. Enjoy a sit-down meal with family or friends.  NO TV!

4. Play a board game, charades, pictionary, anything fun and creative will do

5. Do a craft. If you can’t think of anything, make a paper airplane, buy a coloring book or do a crossword

6. Go outside. Listen to the birds, enjoy the flowers. Sit still for 5 minutes and relax your body inch by inch.

7. Go on a “field trip”. With your kids, your friends or by yourself, be a tourist for a day or even just a few hours.

8. Go say hi to the animals at the shelter, or volunteer, anywhere

9. Go dig in your garden, plant flowers or pull weeds.

10.Think of 10 things you’re grateful for, and 10 nice things you can do for someone else.  Repeat 1-10 frequently.

I really want to know what YOU do to stay calm, refresh and recharge.

Post from: BarbFischer.com

For the past 4 months, we’ve been fostering Gus, a very delightful dog whose owner no longer has a home or the means to care for him. I loved Gus the minute I saw him. My dog-loving son, however, has remained a bit detached, knowing that at any time, Gus might have to leave us and go back to his former owner. More than once, he’s asked: “Do we really have to give him back?”

We’ve adopted many animals before, and most are older and are only with us a few years anyway. But Gus is 3 and full of life and bounce and joy.

It made me think– if any of us knew that a loved one would die in just a few months, would we draw back and start to separate… or would we leap in and enjoy every single moment?

Post from: BarbFischer.com

Short sale addendums for both buyers and sellers are so important. Most people review them initially, but  when things go south, most buyers/sellers seem shocked.

Sellers can’t believe it when the bank or investor denies a short sale. But from the first day they elected NOT to make a payment, the foreclosure process begins, and unless payments are made current, the bank does retain the right to foreclose after the prescribed default period ends.

Buyers have a tough time understanding why we can’t control a seller who suddenly decides on a loan mod or a bankruptcy instead, or why the bank doesn’t accept their offer.

Here are my 2  strategies to help you cope with this lengthy process:

1. Every Friday is already “Foreclosure Friday”, when I consistently followup with all banks for listings and all offers for buyers. When I report back to you, I am also going to briefly re-review the highlights of the short sale addendum.

2. I will remind you of what we CAN control during the transaction, and what we CAN’T control during the transaction. At least this way you’ll know what can happen, and what to expect.

Most experts agree that 2010 will be the year of the short sale.  And most will close successfully. Please call me with all your short sale and foreclosure questions. I’m here to help you!

Post from: BarbFischer.com

Real Estate Auctions– What Buyers Don’t Know Can Really Cost Them– If you’ve been tempted by the “great deals” you’ve heard that “somebody somewhere” got at an auction, please go in with both eyes open. Here are a few auction basics which many people are not aware of.

1. Know the difference between Trustee Sale auctions (usually held at the steps of the courthouse), and private auctions. Trustee sales are CASH only. You don’t get to preview the property, and it may come saddled with any number of liens, including mechanics liens, back taxes, IRS liens, all of which you will become responsible for. Private auction companies, like REDC and Hudson Marshall, will allow you to finance the property, and will also charge you a 5% buyer’s premium on top of your winning bid amount. You can bring your REALTOR(R) and pre-register. You can also preview the property prior to auction, and all liens have been satisfied. Tax auctions happen more infrequently and information can be found on the county website.

2. Banks are notorious for setting the opening bid to equal the amount they are owed, plus legal fees, etc. This price is usually far above the current fair market value, so it isn’t surprising when nobody bids. In this case, the property will revert to the bank, and you’ll see it reappear later as an REO (real estate owned). At this point, it is priced more reasonably, and hopefully priced to sell. REOs can be a good buy, but lately we’ve seen most receive multiple offers, thus driving the price up.

3. Expect postponements at the Trustee Sale. The last few auctions I’ve attended had over 60 properties on the docket, but only a half a dozen were actually auctioned. The rest were postponed; reasons vary, everything from bankruptcy to mutual agreement, short sale, etc.

4. You can order a preliminary title report from your title company, and get the heads-up on outstanding liens and other property issues which will affect the value, and how much extra money you will have to kick in to end up with a property that’s free and clear. Plan to spend about $350-$400. This is an essential step if you are going to bid at a Trustee Sale.

5. Before you buy, atttend a few auctions and observe. You will notice a few regulars at each auction. These are the professionals. Listen, watch and learn. Do your homework upfront, as the basics change by state. Go to www.realtytrac.com for good basic definitions and explanations of the foreclosure process.

6. Call me!

Post from: BarbFischer.com

It never ceases to amaze me the vast amount of personal information that people spew forth on various channels of social media. If the government, or anyone, asked us directly for this, we would be absolutely furious!  But because it’s our choice, we give it out freely.

I think we’ve all had occasion to wish we wouldn’t have tweeted, youtube’d or posted something. Once it’s out there, there’s no retracting it. So I wonder if we will become a culture with a little more grace now, and be a little more forgiving and understanding with each other.

We’ve seen this happen to politicians for years– with everything they’ve ever said being publicly displayed and  endlessly rehashed. This is probably the reason why lots of good people avoid running for public office. Maybe this will change, too!

Post from: BarbFischer.com

Remember last year when every news report seemed to point the finger at those “irresponsible” homeowners who’d taken out a mortgage they “didn’t deserve”?!?  What?? Those prices were the admission ticket to homebuying then, and everyone I worked with bought at the lowest price they could. So if our Depression continues and a loaf of bread goes up to $10, will we be “irresponsible” for buying at that price?

When I started in RE 11 years ago, I admit that I did judge those in financial trouble. Now with a little seasoning, I have seen so many different scenarios of financial distress, and have still yet to meet someone who maliciously, purposely tried to scam the system. Yet I just had coffee with an agent who was very critical of anyone doing a short sale, no matter what they reason. What a mixed message society we live in. It’s fine and dandy for the banks to dump their toxic assets that are a strain and no longer make economic sense (and get government funding to do so), but when it comes to the little guy, it’s not OK in many circles.

I’m hoping we can move beyond all this condemnation and heal our economy from the inside out.

Post from: BarbFischer.com