How Can You Tell If (and When) The Real Estate Market has Hit the Bottom?
By Michelle C. Carr-Crowe, ABR, ALHS, ASP, PME, RECS, SRES
“I don’t want to buy when the market is still going down”…
“I want to wait and see if prices go down further before buying” …
“After the market hits bottom, then I’ll buy” …
Buyers tell me things like this every day. But how can you tell if (and when) the market has hit the bottom?
(Hint: You won’t like the answer.)
You can tell the market has hit bottom…only when it starts going back up.
Then a large number of Buyers miss the market – commonly by about six months – because of three things: they’re stuck in the waiting mode and fail to act quickly enough; they see it trend upwards and wait because they believe it will quickly come back down again; or after waiting too long, desperately chase the price back up before the properties they desire become financially out of reach…again.
Most people know Michelle C. Carr-Crowe and the Get RE$ult$ Team as the Lynbrook and Cupertino Area Schools Experts – I and my team specialize in that area, which overall has held amazingly steady values as compared to the rest of Santa Clara County, the Bay Area, California and the rest of the United States.
However, real estate is a people business and I consider myself a real estate consultant—someone who invests the time in learning what people need and want, educating them about the market and the process, and puts their needs before my own. As such, I help people in other parts of San Jose, Cupertino, Saratoga and Palo Alto—including foreclosures, pre-foreclosures, bank-owned properties and short sales.
For example, I have a short sale in Alum Rock – an appealing two-bedroom fixer-upper on a 6500-sf lot – located at 136 N. White Road (if you don’t know the area, it’s a busy, high-traffic street), right across the street from Pala Middle School and James Lick High School, two of the academically lowest-performing schools in the Bay Area.
The listing was a referral and the original asking price in November, 2008 was $350,000. Although we received about three weeks worth of initial interest, we had no serious interest or even showings until the professional negotiator came back with a pre-approved price of $208,000, and authorization to list it somewhere between $208,000 and $250,000.
I now receive multiple calls and showings daily on this property. Within one week, I had three competitive offers in hand. I’ve received three more offers – two of them this afternoon.
ALL of the offers are at, and in some cases, significantly above the $208,000 price.
ALL are pre-approved buyers with at least 20 percent down; at least one is all cash.
ALL are willing to deal with the lengthy and sometimes frustrating short sale process.
HALF of them have already written they are open to negotiating UPWARDS in price to get the home.
Does that sound like a declining market to you?
Certainly, the new price was more attractive. However, IF the market was truly still down and/or declining, we might have received new or renewed interest and showings, but few or no offers. If it was still down or declining, any offering prices would likely be BELOW the pre-approved price or at most, AT the pre-approved price, based on human nature, normal behavior in a true buyer’s market, and my 22 years of experience as a licensed REALTOR®.
As a former freelance journalist, (a notably cynical group), my natural instinct is to research and examine the facts and data to see the big picture before drawing any conclusions.
And in my opinion, what that data shows is a fascinating snapshot of a market in transition.
Back when I first took the listing, and throughout most of the listing period, there were, on average, 200 to 250 3 bedroom single family homes for sale in all areas of Santa Clara County.
Today, there are only 147.
Even more fascinating is this: In the past 26 days, 140 of those properties changed status from for sale to either pending or sold; and of those 140, 33 (or 23 percent, nearly a quarter of them) became closed sales.
The total number of homes available has decreased to a nearly balanced point in this group: 147 actively for sale now and 140 that changed into pending and/or sold in less than a 30-day period. When the number of homes going out of the market are nearly equal to the number of homes coming in, the market is in balance. That doesn’t mean every home on the market will sell in the next 30 days. It doesn’t mean some of the more difficult to move properties – such as one-bedroom condos, two-bedroom bungalows (like my listing), properties on busy streets or those with extensive damage – will all sell, and sell quickly for more than asking price.
But when a 63-year-old fixer upper on a busy street in Alum Rock goes from being nearly ignored for 100 days on the market to receiving six solid offers in less than 10 days, it shows that when properties are right-priced for their unique features and market, there are excellent, qualified buyers ready to take advantage of the opportunity—and willing to even increase the price to guarantee getting that particular home. As the bottom of the market felt the downward trend first, it only makes sense it will also feel the stabilizing trend first, as well as the upward trend first.
If it was just my opinion, that would be one thing. If it was only a balanced amount of homes in and out, that would be another single factor. If it was just that many of the homes selling were selling at or near asking price, that would be one more single factor.
But for the Buyers who keep asking, don’t say I didn’t tell you.
Michelle C. Carr-Crowe is a full-time real estate consultant and the leader of the Get RE$ult$ Team based in the Silicon Valley Bay Area. A licensee for over 20 years (DRE #00901962), Michelle and her team specialize in helping people buy, sell & invest in homes and properties in the San Jose Lynbrook, Cupertino, Saratoga & Palo Alto School Districts throughout Santa Clara County. She can be reached at 408.252.8900, info@lynbrookhighhomes.com or http://www.michellejudycarr.com/.
Interested in learning more about short sale opportunities in your area? Just send an email with your information, the area you’re interested in, specifics about the type of property you like, your timeline, and your contact information to shortsale@michellejudycarr.com. To see a list of current short sale properties in popular Cupertino, San Jose and Saratoga areas with Top Cupertino and Saratoga Schools, visit our Short Sale pages.
Just Call ... (408)252.8900 Michelle C. Carr-Crowe and the Get RE$ult$ Team, Your Lynbrook, Cupertino & Saratoga Schools Experts & Your Family's Real Estate Consultants for Lifefor more information and showings of these and other short sale, pre-foreclosure, foreclosure, bank-owned and traditional home opportunities.
Friday, March 27, 2009
Tuesday, March 24, 2009
The Questions (Most) Agents Pray You Never Ask!
The Questions (Most) Agents Pray You Never Ask!
by Michelle C. Carr-Crowe, ABR, ASP, ALHS, PME, RECS, SRES
As the market continues its fascinating twists turns, buyers and sellers need seasoned, experienced real estate professionals to help guide them safely to their destinations while avoiding numerous pitfalls, financial swamps and dangerous predators.
To help you choose the right real estate guide, first interview yourself, and ask the following:
What are the 7 most important things to me about buying or selling a home in today’s dramatically changing market? (Goals, timing, pricing, specific problems, motivations, needs or wants, etc.).
What 7 things am I looking for in a real estate professional? (Proven sales track record, personality style, characteristics, etc.)
Once you know what’s most important to you in the purchase or sale of a home, and what’s important to you in a real estate professional, use the following questions every buyer and seller MUST Ask ANY Agent before committing themselves to any contract. 1) Do you personally own real estate? Especially in this market, you want someone who truly understands the financial obligations of a homeowner. It’s even better if they own multiple properties – remember all of the investment salespeople who didn’t own any stock but tried to sell you on their portfolios?
2) Do you personally own real estate in my general area? You want someone familiar with your area, neighborhoods, as well as laws and other factors.
3) How long have you been a homeowner? Hint: the longer the better.
4) How long have you been a licensed REALTOR? Again, the longer the better, especially in today´s markets-you want a professional who´s navigated through a variety of difficult markets and can give you solid, not inflammatory, advice.
5) Are you a full-time real estate professional? They should be fully committed to this job, and to you. Two part-time agents don't necessarily equal one professional full-time agent, and especially don’t come close to being a local real estate expert.
6) Are you (not just your broker or company) a member of NAR, CAR, and local MLS & REALTOR organizations? This means they adhere to a specific code of ethics, as well as being in touch with new laws, education and training. It also means they at least have ~$2,000 to maintain those memberships. If they aren’t members, ask why not.
7) What professional designations do you have? Ask which ones they have, what experience was required (some, like SRES, only involve taking a class and passing a test while others, like ABR and ALHS, require specific performance) and why they obtained them. Some examples include ABR – Accredited Buyer Representative, ASP – Accredited Staging Professional, ALHS—Accredited Luxury Home Specialist, GRI – Graduate, Realty Institute, PME—Property Marketing Expert, RECS—Real Estate CyberSpace Specialist, SRES (Seniors Real Estate Specialist), etc.)
8) How many homes have you helped people buy and/or sell similar to mine in the past five years? Find out who, when and how many. One sale isn’t as valuable as many sales. Five $40,000 sales in Detroit are not the same as ten $1,000,000 sales in Silicon Valley.
9) Do you specialize in my area? (They should have the statistics handy to prove it - #of sales, etc.)
10) Do you have a written home finding or marketing plan? (They may or may not have a printed one, however they should be able to show and/or outline the details for you.)
11) What is unique about your home finding or marketing efforts compared to others? It may be a team approach, specific software, Web sites, experience, negotiation skills, etc.
12) How many different selling or buying program options do you offer? This is often where conversations about commission come in. They may be general or specific (e.g. selling commissions range from 4 to 8%, depending on the program; we only represent full service at 7%; we only handle limited service 3% contracts, etc.)
13) Can you provide written references? This is really important. Ask for several names, with phone numbers and e-mail addresses, and be sure it’s okay to contact these people. Then call them!
14) Do you offer a written guarantee? Fewer than five percent of agents offer this; however those agents are historically in the top five percent of agents nationwide in terms of volume, sales and production. If you like their answers to the above, then these last 2 questions are critically important to you: 15) Do YOU like and trust this person? (Hint, if it somehow feels too good to be true, pay attention and disengage. You can figure out why later on.)
16) Do you truly believe this person (not just company) is YOUR BEST OPTION to help YOU buy or sell a home in today’s challenging market?
If the answer is no to either of these last two questions, or if it somehow feels too good to be true, pay attention to those feelings and disengage. You can figure out why later on.)
Once you do have a definite yes to both questions, you may have found the real estate professional to help you achieve your goals—and a guide you can trust to navigate you safely around the numerous obstacles and danger zones to your desired real estate destination.
© 2009 Michelle C. Carr-Crowe. All Universal Rights Reserved. No portion may be copied or re-distributed in any form without the express prior written consent of Michelle C. Carr-Crowe.
Michelle C. Carr-Crowe is a full-time real estate consultant and the leader of the Get RE$ult$ Team based in the Silicon Valley Bay Area. A licensee for over 20 years (DRE #00901962), Michelle and her team specialize in helping people buy, sell & invest in homes and properties in the San Jose Lynbrook, Cupertino, Saratoga & Palo Alto School Districts throughout Santa Clara County. She can be reached at 408.252.8900, info@lynbrookhighhomes.com or http://www.michellejudycarr.com/.
Just Call ... (408)252.8900 Michelle C. Carr-Crowe and the Get RE$ult$ Team, Your Lynbrook, Cupertino & Saratoga Schools Experts & Your Family's Real Estate Consultants for Lifefor more information and showings of these and other short sale, bank-owned and traditional home opportunities.
by Michelle C. Carr-Crowe, ABR, ASP, ALHS, PME, RECS, SRES
As the market continues its fascinating twists turns, buyers and sellers need seasoned, experienced real estate professionals to help guide them safely to their destinations while avoiding numerous pitfalls, financial swamps and dangerous predators.
To help you choose the right real estate guide, first interview yourself, and ask the following:
What are the 7 most important things to me about buying or selling a home in today’s dramatically changing market? (Goals, timing, pricing, specific problems, motivations, needs or wants, etc.).
What 7 things am I looking for in a real estate professional? (Proven sales track record, personality style, characteristics, etc.)
Once you know what’s most important to you in the purchase or sale of a home, and what’s important to you in a real estate professional, use the following questions every buyer and seller MUST Ask ANY Agent before committing themselves to any contract. 1) Do you personally own real estate? Especially in this market, you want someone who truly understands the financial obligations of a homeowner. It’s even better if they own multiple properties – remember all of the investment salespeople who didn’t own any stock but tried to sell you on their portfolios?
2) Do you personally own real estate in my general area? You want someone familiar with your area, neighborhoods, as well as laws and other factors.
3) How long have you been a homeowner? Hint: the longer the better.
4) How long have you been a licensed REALTOR? Again, the longer the better, especially in today´s markets-you want a professional who´s navigated through a variety of difficult markets and can give you solid, not inflammatory, advice.
5) Are you a full-time real estate professional? They should be fully committed to this job, and to you. Two part-time agents don't necessarily equal one professional full-time agent, and especially don’t come close to being a local real estate expert.
6) Are you (not just your broker or company) a member of NAR, CAR, and local MLS & REALTOR organizations? This means they adhere to a specific code of ethics, as well as being in touch with new laws, education and training. It also means they at least have ~$2,000 to maintain those memberships. If they aren’t members, ask why not.
7) What professional designations do you have? Ask which ones they have, what experience was required (some, like SRES, only involve taking a class and passing a test while others, like ABR and ALHS, require specific performance) and why they obtained them. Some examples include ABR – Accredited Buyer Representative, ASP – Accredited Staging Professional, ALHS—Accredited Luxury Home Specialist, GRI – Graduate, Realty Institute, PME—Property Marketing Expert, RECS—Real Estate CyberSpace Specialist, SRES (Seniors Real Estate Specialist), etc.)
8) How many homes have you helped people buy and/or sell similar to mine in the past five years? Find out who, when and how many. One sale isn’t as valuable as many sales. Five $40,000 sales in Detroit are not the same as ten $1,000,000 sales in Silicon Valley.
9) Do you specialize in my area? (They should have the statistics handy to prove it - #of sales, etc.)
10) Do you have a written home finding or marketing plan? (They may or may not have a printed one, however they should be able to show and/or outline the details for you.)
11) What is unique about your home finding or marketing efforts compared to others? It may be a team approach, specific software, Web sites, experience, negotiation skills, etc.
12) How many different selling or buying program options do you offer? This is often where conversations about commission come in. They may be general or specific (e.g. selling commissions range from 4 to 8%, depending on the program; we only represent full service at 7%; we only handle limited service 3% contracts, etc.)
13) Can you provide written references? This is really important. Ask for several names, with phone numbers and e-mail addresses, and be sure it’s okay to contact these people. Then call them!
14) Do you offer a written guarantee? Fewer than five percent of agents offer this; however those agents are historically in the top five percent of agents nationwide in terms of volume, sales and production. If you like their answers to the above, then these last 2 questions are critically important to you: 15) Do YOU like and trust this person? (Hint, if it somehow feels too good to be true, pay attention and disengage. You can figure out why later on.)
16) Do you truly believe this person (not just company) is YOUR BEST OPTION to help YOU buy or sell a home in today’s challenging market?
If the answer is no to either of these last two questions, or if it somehow feels too good to be true, pay attention to those feelings and disengage. You can figure out why later on.)
Once you do have a definite yes to both questions, you may have found the real estate professional to help you achieve your goals—and a guide you can trust to navigate you safely around the numerous obstacles and danger zones to your desired real estate destination.
© 2009 Michelle C. Carr-Crowe. All Universal Rights Reserved. No portion may be copied or re-distributed in any form without the express prior written consent of Michelle C. Carr-Crowe.
Michelle C. Carr-Crowe is a full-time real estate consultant and the leader of the Get RE$ult$ Team based in the Silicon Valley Bay Area. A licensee for over 20 years (DRE #00901962), Michelle and her team specialize in helping people buy, sell & invest in homes and properties in the San Jose Lynbrook, Cupertino, Saratoga & Palo Alto School Districts throughout Santa Clara County. She can be reached at 408.252.8900, info@lynbrookhighhomes.com or http://www.michellejudycarr.com/.
Just Call ... (408)252.8900 Michelle C. Carr-Crowe and the Get RE$ult$ Team, Your Lynbrook, Cupertino & Saratoga Schools Experts & Your Family's Real Estate Consultants for Lifefor more information and showings of these and other short sale, bank-owned and traditional home opportunities.
Wednesday, March 11, 2009
Help Combat Hunger … One Day at a Time … One Child at a Time …Today
Help Combat Hunger … One Day at a Time … One Child at a Time …Today
Today, March 11, 2009, is Global Food Crisis Day. It’s not a holiday. It’s a call to action to recognize the current state of emergency in the lives of the world’s poorest of the poor.
Most people are aware of how the dramatic changes in the U.S., Asian and global economy are affecting them personally—reducing many 401(k) and pension funds by fifty percent, dropping stock prices, softening property values, making credit more difficult to obtain and increasing fears about job security.
But what about how it’s affecting people who have no retirement funds, stock, homes, credit or jobs? Coupled with the worldwide economic crisis, the numerous recent natural disasters, increased transportation costs and nearly doubled cost of wheat, rice and corn products, millions of people literally face the grim daily fact of no food. No food can mean no hope. No food and no hope can mean no future.
Compassion International, a Better Business Bureau Accredited Charity, reports the following shocking facts compiled from respected non-profits including UNICEF, ONE.org and the World Health Organization:
· 1 in 7 people worldwide go to bed hungry every night
· Of those 1 in 7, the number of children who go to bed hungry every night totals 300 million
· One-third of the world’s population is undernourished, increasing their chances of death by disease
· 25,000 starvation-related deaths occur every day
· Nearly half of those deaths – 12,000 – are children
· Every 7 seconds, a child dies of hunger-related causes
What can you do? Everyone can do something. Pray about it. Learn about it. Blog about it. Tell your friends about it. In Santa Clara County, Silicon Valley and the Greater Bay Area, listen to participating radio station broadcasts like Air1 (local stations 88.9, 90.7, 96.3 and 100.9 FM), and K-Love (local stations 91.1, 99.3 and 101.9 FM). Get your church, group or organization involved in it. Download free items from the Compassion website , such as widgets, banners, e-cards and bookmarks for posting to Web sites, and social networking pages such as FaceBook and MySpace.
Monetary donations are always welcome. Compassion International estimates about $13 USD per month feeds a child for about a month – or less money than most Americans pay for a delivered pizza.
Every year in Santa Clara County, real estate, mortgage and affiliated professionals like me who are members of the Santa Clara County Association of REALTORS® and the Silicon Valley Association of REALTORS® collect hundreds of thousands of containers of food for Second Harvest and similar reputable charities that distribute that most basic necessity—food. Most people don’t realize a real estate consultant like me is involved in this profession because we believe homeownership can be a huge blessing--when an individual or family has developed the financial strength, faith and tenacity to transition from surviving in shelter to thriving in stability.
Hunger is personal. Get personally involved. You may not be able to feed the world, or afford an annual sponsorship--but you can still help one hungry child today.
Founded in 1952, Compassion International successfully tackles global poverty one child at a time, serving more than 1 million children in 25 of the world's poorest countries through nearly 5,000 local churches. Recognizing that poverty is more than a lack of money, Compassion works holistically through local churches to address the individual physical, economic, educational and spiritual needs of children — enabling them to thrive not just survive. Their motto is, “Releasing children from poverty in Jesus’ name.” Compassion has been awarded seven consecutive, four-star ratings by Charity Navigator, America's largest charity evaluator.
Michelle C. Carr-Crowe is a full-time real estate consultant and the leader of the Get RE$ult$ Team based in the Silicon Valley Bay Area. A licensee for over 20 years (DRE #00901962), Michelle and her team specialize in helping people buy, sell & invest in homes and properties in the San Jose Lynbrook, Cupertino, Saratoga & Palo Alto School Districts throughout Santa Clara County. She can be reached at 408.252.8900, info@lynbrookhighhomes.com or www.michellejudycarr.com.
Today, March 11, 2009, is Global Food Crisis Day. It’s not a holiday. It’s a call to action to recognize the current state of emergency in the lives of the world’s poorest of the poor.
Most people are aware of how the dramatic changes in the U.S., Asian and global economy are affecting them personally—reducing many 401(k) and pension funds by fifty percent, dropping stock prices, softening property values, making credit more difficult to obtain and increasing fears about job security.
But what about how it’s affecting people who have no retirement funds, stock, homes, credit or jobs? Coupled with the worldwide economic crisis, the numerous recent natural disasters, increased transportation costs and nearly doubled cost of wheat, rice and corn products, millions of people literally face the grim daily fact of no food. No food can mean no hope. No food and no hope can mean no future.
Compassion International, a Better Business Bureau Accredited Charity, reports the following shocking facts compiled from respected non-profits including UNICEF, ONE.org and the World Health Organization:
· 1 in 7 people worldwide go to bed hungry every night
· Of those 1 in 7, the number of children who go to bed hungry every night totals 300 million
· One-third of the world’s population is undernourished, increasing their chances of death by disease
· 25,000 starvation-related deaths occur every day
· Nearly half of those deaths – 12,000 – are children
· Every 7 seconds, a child dies of hunger-related causes
What can you do? Everyone can do something. Pray about it. Learn about it. Blog about it. Tell your friends about it. In Santa Clara County, Silicon Valley and the Greater Bay Area, listen to participating radio station broadcasts like Air1 (local stations 88.9, 90.7, 96.3 and 100.9 FM), and K-Love (local stations 91.1, 99.3 and 101.9 FM). Get your church, group or organization involved in it. Download free items from the Compassion website , such as widgets, banners, e-cards and bookmarks for posting to Web sites, and social networking pages such as FaceBook and MySpace.
Monetary donations are always welcome. Compassion International estimates about $13 USD per month feeds a child for about a month – or less money than most Americans pay for a delivered pizza.
Every year in Santa Clara County, real estate, mortgage and affiliated professionals like me who are members of the Santa Clara County Association of REALTORS® and the Silicon Valley Association of REALTORS® collect hundreds of thousands of containers of food for Second Harvest and similar reputable charities that distribute that most basic necessity—food. Most people don’t realize a real estate consultant like me is involved in this profession because we believe homeownership can be a huge blessing--when an individual or family has developed the financial strength, faith and tenacity to transition from surviving in shelter to thriving in stability.
Hunger is personal. Get personally involved. You may not be able to feed the world, or afford an annual sponsorship--but you can still help one hungry child today.
Founded in 1952, Compassion International successfully tackles global poverty one child at a time, serving more than 1 million children in 25 of the world's poorest countries through nearly 5,000 local churches. Recognizing that poverty is more than a lack of money, Compassion works holistically through local churches to address the individual physical, economic, educational and spiritual needs of children — enabling them to thrive not just survive. Their motto is, “Releasing children from poverty in Jesus’ name.” Compassion has been awarded seven consecutive, four-star ratings by Charity Navigator, America's largest charity evaluator.
Michelle C. Carr-Crowe is a full-time real estate consultant and the leader of the Get RE$ult$ Team based in the Silicon Valley Bay Area. A licensee for over 20 years (DRE #00901962), Michelle and her team specialize in helping people buy, sell & invest in homes and properties in the San Jose Lynbrook, Cupertino, Saratoga & Palo Alto School Districts throughout Santa Clara County. She can be reached at 408.252.8900, info@lynbrookhighhomes.com or www.michellejudycarr.com.
Tuesday, March 3, 2009
About Short Sales
Buyer Education Series
Third in a series of ten educational articles
About Short Sales
by Michelle C. Carr-Crowe, ABR®, ALHS®, RECS®, SRES©
A short sale is a simple concept with a sometimes complex process that can end in a pleasant result - at least for the buyer–a nice home in relatively good condition at a very fair—and often low–price. A short sale is when the seller is "short" of money to close the sale. The amount "short" is determined by the current market price a willing, able and qualified buyer is committed to pay at any given time.
In the higher-end markets throughout Santa Clara County (Silicon Valley), such as Palo Alto, Saratoga, Cupertino and parts of San Jose with Cupertino Schools, short sales have historically been rare until relatively recently.
There are two ways of being "short"" 1) the seller doesn't have enough money left over after paying off all of the loan(s), tax bills or other liens to cover the other standard closing costs.2) the home is worth less in the market than the existing loan(s) on the property, so there isn't enough money to pay off the loan(s) and the closing costs.
A short sale requires lender approval of any offer, regardless of whether the seller has accepted the offer. If there are two loans, (even if they are both with the same lender), they are originated in two different departments requiring two different approvals. Again, the lender(s) must approve any offer before it can truly move forward to close.A pre-approved short sale is when a lender has already authorized acceptance of a particular price on a home, either thru the efforts of an agent, the seller, or a professional short sale negotiator – OR due to a prior approved offer where the buyer backed out prior to completion.
Pre-approved short sales are usually based on approving a particular buyer and their qualifications for a specific property. Sometimes a negotiator is able to obtain a pre-approved price subject to a qualified buyer being found after the fact. While a pre-approved short sale can speed up the process, some lenders insist on starting all over again when a new buyer comes in, even if they write an offer at the same exact pre-approved terms.
With short sales, the existing lender(s) have the legal right to, and commonly require, the new buyer to submit a loan application and all documentation for their review, just as if applying for a loan with that lender. (Some that frequently do this include Countrywide, Wells Fargo and Bank of America.) However, the existing lender(s) cannot require the new buyer to actually obtain the new loan with them.
Things to keep in mind: this can be a long process – sometimes as fast as 30-45 days, other times as long as 9 months. The process is impersonal and governed by people at the lending institution for whom the home is just a file, and there is no urgency on the lender’s end to complete a deal in any particular time frame, even when they are losing money or the buyer is losing interest. Some lending institutions, such as IndyMac, require additional signatory approvals after receiving the basic approval – often from a bank officer, CEO, CFO, etc.
For a buyer with the time and patience to endure the slow process, a short sale can be a blessing in the long run. A great real estate consultant can help prepare, educate and guide you through the process. If you think of the short sale purchase as navigating through the jungle, you’ll be better able to cope with the surprises, frustrations and scares that occur along the way.
Interested in learning more about short sale and other buying opportunities in your area? Just send an email with your information, the area you’re interested in, specifics about the type of property you like, your timeline, and your contact information to shortsale@michellejudycarr.com. To see a list of current short sale properties in popular Cupertino, San Jose and Saratoga areas with Top Cupertino and Saratoga Schools, visit our Short Sale pages.
Michelle C. Carr-Crowe is a full-time real estate consultant and the leader of the Get RE$ult$ Team based in the Silicon Valley Bay Area. A licensee for over 20 years (DRE #00901962), Michelle and her team specialize in helping people buy, sell & invest in homes and properties in the San Jose Lynbrook, Cupertino, Saratoga & Palo Alto School Districts throughout Santa Clara County. She can be reached at 408.252.8900, info@lynbrookhighhomes.com or www.michellejudycarr.com.
Just Call ... (408)252.8900 Michelle C. Carr-Crowe and the Get RE$ult$ Team, Your Lynbrook, Cupertino & Saratoga Schools Experts & Your Family's Real Estate Consultants for LifeFor more information and showings of these and other short sale, bank-owned and traditional home opportunities.
Michelle C. Carr-Crowe’s unique qualifications include being an ABR® (Accredited Buyer Representative), ALHS® (Accredited Luxury Home Specialist), RECS® (Real Estate CyberSpace Specialist), and SRES© (Seniors Real Estate Specialist.
Third in a series of ten educational articles
About Short Sales
by Michelle C. Carr-Crowe, ABR®, ALHS®, RECS®, SRES©
A short sale is a simple concept with a sometimes complex process that can end in a pleasant result - at least for the buyer–a nice home in relatively good condition at a very fair—and often low–price. A short sale is when the seller is "short" of money to close the sale. The amount "short" is determined by the current market price a willing, able and qualified buyer is committed to pay at any given time.
In the higher-end markets throughout Santa Clara County (Silicon Valley), such as Palo Alto, Saratoga, Cupertino and parts of San Jose with Cupertino Schools, short sales have historically been rare until relatively recently.
There are two ways of being "short"" 1) the seller doesn't have enough money left over after paying off all of the loan(s), tax bills or other liens to cover the other standard closing costs.2) the home is worth less in the market than the existing loan(s) on the property, so there isn't enough money to pay off the loan(s) and the closing costs.
A short sale requires lender approval of any offer, regardless of whether the seller has accepted the offer. If there are two loans, (even if they are both with the same lender), they are originated in two different departments requiring two different approvals. Again, the lender(s) must approve any offer before it can truly move forward to close.A pre-approved short sale is when a lender has already authorized acceptance of a particular price on a home, either thru the efforts of an agent, the seller, or a professional short sale negotiator – OR due to a prior approved offer where the buyer backed out prior to completion.
Pre-approved short sales are usually based on approving a particular buyer and their qualifications for a specific property. Sometimes a negotiator is able to obtain a pre-approved price subject to a qualified buyer being found after the fact. While a pre-approved short sale can speed up the process, some lenders insist on starting all over again when a new buyer comes in, even if they write an offer at the same exact pre-approved terms.
With short sales, the existing lender(s) have the legal right to, and commonly require, the new buyer to submit a loan application and all documentation for their review, just as if applying for a loan with that lender. (Some that frequently do this include Countrywide, Wells Fargo and Bank of America.) However, the existing lender(s) cannot require the new buyer to actually obtain the new loan with them.
Things to keep in mind: this can be a long process – sometimes as fast as 30-45 days, other times as long as 9 months. The process is impersonal and governed by people at the lending institution for whom the home is just a file, and there is no urgency on the lender’s end to complete a deal in any particular time frame, even when they are losing money or the buyer is losing interest. Some lending institutions, such as IndyMac, require additional signatory approvals after receiving the basic approval – often from a bank officer, CEO, CFO, etc.
For a buyer with the time and patience to endure the slow process, a short sale can be a blessing in the long run. A great real estate consultant can help prepare, educate and guide you through the process. If you think of the short sale purchase as navigating through the jungle, you’ll be better able to cope with the surprises, frustrations and scares that occur along the way.
Interested in learning more about short sale and other buying opportunities in your area? Just send an email with your information, the area you’re interested in, specifics about the type of property you like, your timeline, and your contact information to shortsale@michellejudycarr.com. To see a list of current short sale properties in popular Cupertino, San Jose and Saratoga areas with Top Cupertino and Saratoga Schools, visit our Short Sale pages.
Michelle C. Carr-Crowe is a full-time real estate consultant and the leader of the Get RE$ult$ Team based in the Silicon Valley Bay Area. A licensee for over 20 years (DRE #00901962), Michelle and her team specialize in helping people buy, sell & invest in homes and properties in the San Jose Lynbrook, Cupertino, Saratoga & Palo Alto School Districts throughout Santa Clara County. She can be reached at 408.252.8900, info@lynbrookhighhomes.com or www.michellejudycarr.com.
Just Call ... (408)252.8900 Michelle C. Carr-Crowe and the Get RE$ult$ Team, Your Lynbrook, Cupertino & Saratoga Schools Experts & Your Family's Real Estate Consultants for LifeFor more information and showings of these and other short sale, bank-owned and traditional home opportunities.
Michelle C. Carr-Crowe’s unique qualifications include being an ABR® (Accredited Buyer Representative), ALHS® (Accredited Luxury Home Specialist), RECS® (Real Estate CyberSpace Specialist), and SRES© (Seniors Real Estate Specialist.
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