In the vast majority of markets tracked by RealFacts, renters who didn't lock in rents for the long term are now pinned squarely behind the eight ball with little room to maneuver.
Apartment rents have been rising for more than a year in most markets and second quarter numbers reveal landlords are tightening the vise as year-to-year rent increases get larger.
The only remaining "in" for renters, perhaps, are falling occupancy rates in select markets -- a limited and temporary condition.
Wherever possible, renters renewing contracts or moving in for the first time, especially those who plan to sit on the owner-occupied housing market fence for some time, should negotiate for the longest lease feasible. Concessions are rare as many landlords have shut the door on move-in bonuses.
In the second quarter 2007, all but one of the 29 major metros in RealFacts database reported annual rent growth, with 10 of the 29 metros reporting annual rent growth of more than 5 percent.
However, most metros, 20 of them, revealed year-over-year occupancy declines. That's likely an ending trend as the rental market continues to absorb supply spilled over from unsold listings in the owner-occupied sector.
RealFacts keeps tabs on more than 12,000 rental communities of 100 units or more in metros in 15 states, most of them west of the Mississippi River, but also in Florida and Illinois.
The firm also keeps tabs on rental units by category, from studios, one-, two- and three-bedroom apartments to three- and four-bedroom town homes.
The big rental money makers were San Jose, CA, and Seattle, WA, both enjoying a 3.1 percent increase in rents from just the first to second quarter this year.
San Jose had the data base's greatest average annual rent increase -- 11 percent. Seattle enjoyed a 9.9 percent average annual rate of rent increases.
RealFacts projected an annual rent growth of 12.4 percent for both cities if conditions continue, a likely scenario given the owner-occupied housing markets tighter money trend forcing more people to rent. Both metros also reported strong occupancy rates, 95 percent for Seattle and 97.3 for San Jose.
In average annual rent increases elsewhere, Austin, TX; Portland, OR; Salt Lake City, UT; and the California metros of Fresno, Los Angeles, Oxnard, San Diego and San Francisco all had annual rent increase of more than 5 percent.
The highest rents were also recorded in California with the Los Angeles market, averaging $1,589; Oxnard, averaging $1,525; San Jose, at $1,522; San Francisco, $1461 and San Diego, at $1,328, rounding out the top five. Seattle rents came in at $1,044 a month, on average.
RealFacts reported that occupancy slipped a bit in many markets, but levels remained strong with every major MSA enjoying occupancy rates of 91.5 percent or more. All 11 of the quarterly occupancy declines were less than 0.5 percent, further demonstrating the overall stability of the markets. Thirteen of the 20 annual occupancy declines were 1.5 percent or less.
Nineteen metros reported occupancy rates between 93 percent and 96 percent.
Tulsa, OK, stood out, posting a 4.7 occupancy gain for the quarter, pushing it's rate up to 96.6 percent.
For annual occupancy growth, Salt Lake City was the leader with a 2 percent increase to 96 percent. Tulsa's annual occupancy rate increase was second at 1.8 percent. San Jose, with a 97.3 percent occupancy rate, had the data base's tightest rental market.
Thursday, August 2, 2007
Sunday, July 22, 2007
Grape Vine: A Web-based Consumer Real Estate Alternative
The Internet has materialized as the missing ingredient in the success of many businesses, not the least of which are enterprises that parallel traditional real estate services.
Before the dot-com revolution, information distribution -- reaching the largest number of qualified buyers -- was the greatest advantage of listing through the MLS or Multiple Listing Service® and the greatest barrier to selling privately. The Internet, originally welcomed as 'the information highway,' leveled this real estate playing field.
The Internet has bolstered the pre-existing MLS® system and opened it to consumers, where previously it was the exclusive domain of licensed members of real estate boards across Canada. The Web has also enabled new systems for distributing real estate information outside organized real estate.
Property owners intent on taking the For Sale By Owner or FSBO (pronounced "fizz-bow") route to the sale of their real estate now have choices. In the nation's capital, Grape Vine Home Marketing Consultants has carved a niche for itself by offering online marketing support to homeowners intent on personally selling their home.
"Prior to having the website, the only way that potential buyers could look at properties was through the MLS®," said Lorraine Brownrigg, founder and owner of Ottawa-based Grape Vine Home Marketing. "[Potential buyers] could look at private sales, but there was no central area for all of them. We have a large number of them; I'm not saying have all of them."
The attraction for consumers is successfully selling their property without "paying high real estate commissions." This in turn makes the cost of Grape Vine services important to client satisfaction. Rates have not increased for a number of years because of a number of cost-effective measures:
• This web-based venture does not require public offices since essentially "business takes place in the client's home"
• This online network is backed by a lean home-based organization where the office is separate from the residence, and questions and concerns have been anticipated in the marketing manual provided.
• The website is an "always on" information source.
• Sign installation, and photography are contracted out and are separately charged services. Professional signage is a big draw, but most sellers provide their own photographs. Property owners decide whether to include print advertising and take care of costs themselves.
"If you list in Ottawa, the standard real estate commission is 5 per cent and the Seller Agent gets 2.5 per cent and the Buyer Agent 2.5 per cent," explained Brownrigg. "It is common for Agents to call and say 'Do you cooperate?' which means 2.5 per cent, and some [sellers] cooperate and some do not. On a C$250,000 sale, sellers will save over C$6,000 if they cooperate and over C$12,000 if they do not ... . Everybody uses a different marketing price. Some price at MLS®, some discount and some knock the commission off if they want to sell quickly. We do not get involved in this as we are not agents and cannot be involved. If something outside our domain comes up, we suggest they call their lawyer."
Do some real estate transactions fail to close? Brownrigg says 'yes,' but emphasizes that these failures are not more prevalent since lawyers handle the paperwork and legal issues.
"The only problem is that negotiating is not always smooth," said Brownrigg. "I hear sometimes, 'It is tough to negotiate,' and some call and say 'I am waiting for the other shoe to drop, it was so easy.' Everybody is different."
The Grape Vine process begins with online registration. Marketing service packages range from website only at C$175 to a real estate broker-assisted premium package for a flat fee of C$695.
"[Sellers] prepare their house a head of time and, with all the TV shows out there, I find that homeowners who are selling privately have done their research and they are ready when they come to us," said Brownrigg, comparing their services to those of organized real estate. "[Sellers] have to prepare their write-up online and that is something different. They show the home themselves and take phone calls. If there are open houses, they do those themselves. They negotiate directly with the buyer. In our process, they take the paperwork to the buyer's lawyer and the [seller's] lawyer reviews it. This is the best part time job you can have -- if you sell completely privately, that's 5 per cent and if you cooperate, it is 2.5 per cent."
Brownrigg reports that, over the past few months, the Grape Vine site has received more than 200,000 hits per month and that in 2006, Grape Vine serviced over 1300 home marketing clients who had about a 68 per cent success rate. By comparison, the Ottawa Real Estate Board reported 1,651 home sales in June and 1,855 in May 2007. Not all MLS® listed properties sell either.
"We do not advertise a 100 per cent rate," said Brownrigg, adding that owners who do not sell privately often list with a real estate broker. "We usually advertise 70 per cent as that is for the whole year. If you sell in winter or mid summer or out of town, the rate is lower, so that is all encompassing ... . The market starts usually about March, but it started early this year and it has not slowed down, so I've had no time to do stats except that this year is better than '06."
Grape Vine began as a franchise based in southern Ontario. Brownrigg bought the Ottawa-Carleton territory with a partner.
"He had been a Realtor for a few months and found that it was not what he was looking for," said Brownrigg. "Then we saw this advertisement in the newspapers in 1990, and purchased it and quicklyopened in 1990. I bought him out 10 years ago. It was a niche that wasn't being filled and it looked like a nice way to be in the real estate market if you didn't want to be an agent. Obviously, it is a business but you are helping people save money. It is a win-win for people."
The business began as a part-time venture and built up very slowly in the pre-Internet days. A few years ago, Brownrigg bought out the original franchisor since her's was the only surviving office. What lies ahead for Grape Vine as real estate markets shift?
"We grew so fast when the market turned and we have been working full tilt for 5 or 6 years," said this entrepreneur who began her business at a time when interest rates were 13 per cent and real estate markets had stalled. "People look at it and say, 'Selling privately is good when the market is good,' but I don't think that is true. The way I look at it is in a bad market you can price your house more competitively since you are not paying commissions."
Before the dot-com revolution, information distribution -- reaching the largest number of qualified buyers -- was the greatest advantage of listing through the MLS or Multiple Listing Service® and the greatest barrier to selling privately. The Internet, originally welcomed as 'the information highway,' leveled this real estate playing field.
The Internet has bolstered the pre-existing MLS® system and opened it to consumers, where previously it was the exclusive domain of licensed members of real estate boards across Canada. The Web has also enabled new systems for distributing real estate information outside organized real estate.
Property owners intent on taking the For Sale By Owner or FSBO (pronounced "fizz-bow") route to the sale of their real estate now have choices. In the nation's capital, Grape Vine Home Marketing Consultants has carved a niche for itself by offering online marketing support to homeowners intent on personally selling their home.
"Prior to having the website, the only way that potential buyers could look at properties was through the MLS®," said Lorraine Brownrigg, founder and owner of Ottawa-based Grape Vine Home Marketing. "[Potential buyers] could look at private sales, but there was no central area for all of them. We have a large number of them; I'm not saying have all of them."
The attraction for consumers is successfully selling their property without "paying high real estate commissions." This in turn makes the cost of Grape Vine services important to client satisfaction. Rates have not increased for a number of years because of a number of cost-effective measures:
• This web-based venture does not require public offices since essentially "business takes place in the client's home"
• This online network is backed by a lean home-based organization where the office is separate from the residence, and questions and concerns have been anticipated in the marketing manual provided.
• The website is an "always on" information source.
• Sign installation, and photography are contracted out and are separately charged services. Professional signage is a big draw, but most sellers provide their own photographs. Property owners decide whether to include print advertising and take care of costs themselves.
"If you list in Ottawa, the standard real estate commission is 5 per cent and the Seller Agent gets 2.5 per cent and the Buyer Agent 2.5 per cent," explained Brownrigg. "It is common for Agents to call and say 'Do you cooperate?' which means 2.5 per cent, and some [sellers] cooperate and some do not. On a C$250,000 sale, sellers will save over C$6,000 if they cooperate and over C$12,000 if they do not ... . Everybody uses a different marketing price. Some price at MLS®, some discount and some knock the commission off if they want to sell quickly. We do not get involved in this as we are not agents and cannot be involved. If something outside our domain comes up, we suggest they call their lawyer."
Do some real estate transactions fail to close? Brownrigg says 'yes,' but emphasizes that these failures are not more prevalent since lawyers handle the paperwork and legal issues.
"The only problem is that negotiating is not always smooth," said Brownrigg. "I hear sometimes, 'It is tough to negotiate,' and some call and say 'I am waiting for the other shoe to drop, it was so easy.' Everybody is different."
The Grape Vine process begins with online registration. Marketing service packages range from website only at C$175 to a real estate broker-assisted premium package for a flat fee of C$695.
"[Sellers] prepare their house a head of time and, with all the TV shows out there, I find that homeowners who are selling privately have done their research and they are ready when they come to us," said Brownrigg, comparing their services to those of organized real estate. "[Sellers] have to prepare their write-up online and that is something different. They show the home themselves and take phone calls. If there are open houses, they do those themselves. They negotiate directly with the buyer. In our process, they take the paperwork to the buyer's lawyer and the [seller's] lawyer reviews it. This is the best part time job you can have -- if you sell completely privately, that's 5 per cent and if you cooperate, it is 2.5 per cent."
Brownrigg reports that, over the past few months, the Grape Vine site has received more than 200,000 hits per month and that in 2006, Grape Vine serviced over 1300 home marketing clients who had about a 68 per cent success rate. By comparison, the Ottawa Real Estate Board reported 1,651 home sales in June and 1,855 in May 2007. Not all MLS® listed properties sell either.
"We do not advertise a 100 per cent rate," said Brownrigg, adding that owners who do not sell privately often list with a real estate broker. "We usually advertise 70 per cent as that is for the whole year. If you sell in winter or mid summer or out of town, the rate is lower, so that is all encompassing ... . The market starts usually about March, but it started early this year and it has not slowed down, so I've had no time to do stats except that this year is better than '06."
Grape Vine began as a franchise based in southern Ontario. Brownrigg bought the Ottawa-Carleton territory with a partner.
"He had been a Realtor for a few months and found that it was not what he was looking for," said Brownrigg. "Then we saw this advertisement in the newspapers in 1990, and purchased it and quicklyopened in 1990. I bought him out 10 years ago. It was a niche that wasn't being filled and it looked like a nice way to be in the real estate market if you didn't want to be an agent. Obviously, it is a business but you are helping people save money. It is a win-win for people."
The business began as a part-time venture and built up very slowly in the pre-Internet days. A few years ago, Brownrigg bought out the original franchisor since her's was the only surviving office. What lies ahead for Grape Vine as real estate markets shift?
"We grew so fast when the market turned and we have been working full tilt for 5 or 6 years," said this entrepreneur who began her business at a time when interest rates were 13 per cent and real estate markets had stalled. "People look at it and say, 'Selling privately is good when the market is good,' but I don't think that is true. The way I look at it is in a bad market you can price your house more competitively since you are not paying commissions."
Don't Go Overboard When Getting a House Ready for Sale
Tony Mascone has accepted a job offer in Colorado and has until December to sell his house in New Jersey. He and his wife, Liz, have been discussing what to do to get the place ready for the market.
Time is working both for and against them, real estate agents have told them. Inventory has not been increasing as fast as in the past 18 months, and if that trend continues, they will be dealing with less competition. The autumn market, which is the second most important of the year, starts right after Labor Day, so they have a few weeks to get the house ready to show.
There are other things working in their favor. The school district they live in is considered the region's best, and that attraction has been enough to offset some of the negative effects of the real estate downturn. Prices have continued to increase rather than decline, although only about 5 percent last year, compared with 15 to 20 percent in 2003 and 2004, which housing economists are calling a more "normal" rate of growth.
The house next door sold a few months ago for $375,000, which was 96 percent of the asking price and represented a profit of $175,000 for the owners. The Mascones paid $280,000 for their house four years ago, and have not needed to put very much into it, other than some landscaping in the front, which, Tony said "brought the front of the house in line with the other houses on the street."
When he accepted the job offer more than a month ago, Tony began coming up with projects that he believed would make the house more competitive with comparable houses on the market in the neighborhood. One of those projects was to renovate the kitchen, including putting in tile counters and backsplashes to upgrade from the laminate that served them and the previous owners well.
"This is something I can do," Tony said, "and I don't think it will take a lot of time. We're also thinking of putting in a new floor in the kitchen and perhaps change the appliances."
Liz emphasized, however, that the "we" Tony was referring to was actually "he," and turned to the real estate agent they had decided to work with for help.
"She talked him out of a wholesale kitchen renovation because it would take too much time and it really wasn't necessary," Liz said. "She said if Tony wanted to remove the old wallpaper from the kitchen and paint, and if he really had his heart set on repainting the cabinets, that would be fine."
Tony's plan for a kitchen renovation isn't motivated by a belief that he would get more money by doing so. He was, in his words, "looking at the other houses in the neighborhood and I thought that everyone's kitchen was nicer than ours and if ours was nice, too, we could sell it faster."
Kate Burton, a spokeswoman for CertainTeed, the building products' manufacturer, said that Tony's original and unnecessary plan for wholesale kitchen renovation was not uncommon.
"It is often difficult for homeowners to look at their houses objectively and come up with remodeling ideas on their own," said Burton, who suggested that neighbors and family members are often more objective.
Veteran real estate broker Joanne Davidow suggested that too often, people who are focused on selling their houses quickly often come up with a list of projects that create lengthy delays instead.
"They end up missing the window of opportunity to sell," she said. "In addition, most of the projects are completely unnecessary to the sale or reflect their own tastes rather than those of the majority of buyers in their market."
Her favorite example is the man who added a $60,000 kitchen addition that didn't increase the value of the house and was bulldozed within six months of the purchase by the new owner.
"Cosmetic changes are important," said longtime agent Bari Shor. "If the rooms look dark and small, a lighter paint can make them look bigger. That can go for the kitchen, too. With so many houses on the market these days, buyers do have a lot of houses from which to choose and are taking their time deciding, but you can't anticipate what will make them stop at your house and stay there with any degree of certainty."
Real estate agent Diane Williams makes use of stagers to help her with the tough houses. Because she has been selling houses for so many years, she can pretty much walk into a house that has been lingering on the market and suggest changes that will move it.
"Then I hand them a list of stagers that I've used and suggest they contact them," she said. "My job is to figure out the problems, but the staging professionals are designers who can do the work."
So far, she's had great success.
Tony has been spending the last couple of weekends following the real estate agent's suggestions.
"It's going really well," she said as she loaded their two boys into the car. "We, however, are spending these weekends with my mother."
Time is working both for and against them, real estate agents have told them. Inventory has not been increasing as fast as in the past 18 months, and if that trend continues, they will be dealing with less competition. The autumn market, which is the second most important of the year, starts right after Labor Day, so they have a few weeks to get the house ready to show.
There are other things working in their favor. The school district they live in is considered the region's best, and that attraction has been enough to offset some of the negative effects of the real estate downturn. Prices have continued to increase rather than decline, although only about 5 percent last year, compared with 15 to 20 percent in 2003 and 2004, which housing economists are calling a more "normal" rate of growth.
The house next door sold a few months ago for $375,000, which was 96 percent of the asking price and represented a profit of $175,000 for the owners. The Mascones paid $280,000 for their house four years ago, and have not needed to put very much into it, other than some landscaping in the front, which, Tony said "brought the front of the house in line with the other houses on the street."
When he accepted the job offer more than a month ago, Tony began coming up with projects that he believed would make the house more competitive with comparable houses on the market in the neighborhood. One of those projects was to renovate the kitchen, including putting in tile counters and backsplashes to upgrade from the laminate that served them and the previous owners well.
"This is something I can do," Tony said, "and I don't think it will take a lot of time. We're also thinking of putting in a new floor in the kitchen and perhaps change the appliances."
Liz emphasized, however, that the "we" Tony was referring to was actually "he," and turned to the real estate agent they had decided to work with for help.
"She talked him out of a wholesale kitchen renovation because it would take too much time and it really wasn't necessary," Liz said. "She said if Tony wanted to remove the old wallpaper from the kitchen and paint, and if he really had his heart set on repainting the cabinets, that would be fine."
Tony's plan for a kitchen renovation isn't motivated by a belief that he would get more money by doing so. He was, in his words, "looking at the other houses in the neighborhood and I thought that everyone's kitchen was nicer than ours and if ours was nice, too, we could sell it faster."
Kate Burton, a spokeswoman for CertainTeed, the building products' manufacturer, said that Tony's original and unnecessary plan for wholesale kitchen renovation was not uncommon.
"It is often difficult for homeowners to look at their houses objectively and come up with remodeling ideas on their own," said Burton, who suggested that neighbors and family members are often more objective.
Veteran real estate broker Joanne Davidow suggested that too often, people who are focused on selling their houses quickly often come up with a list of projects that create lengthy delays instead.
"They end up missing the window of opportunity to sell," she said. "In addition, most of the projects are completely unnecessary to the sale or reflect their own tastes rather than those of the majority of buyers in their market."
Her favorite example is the man who added a $60,000 kitchen addition that didn't increase the value of the house and was bulldozed within six months of the purchase by the new owner.
"Cosmetic changes are important," said longtime agent Bari Shor. "If the rooms look dark and small, a lighter paint can make them look bigger. That can go for the kitchen, too. With so many houses on the market these days, buyers do have a lot of houses from which to choose and are taking their time deciding, but you can't anticipate what will make them stop at your house and stay there with any degree of certainty."
Real estate agent Diane Williams makes use of stagers to help her with the tough houses. Because she has been selling houses for so many years, she can pretty much walk into a house that has been lingering on the market and suggest changes that will move it.
"Then I hand them a list of stagers that I've used and suggest they contact them," she said. "My job is to figure out the problems, but the staging professionals are designers who can do the work."
So far, she's had great success.
Tony has been spending the last couple of weekends following the real estate agent's suggestions.
"It's going really well," she said as she loaded their two boys into the car. "We, however, are spending these weekends with my mother."
Tuesday, July 10, 2007
Short Sales Not Just About Cancelling Mortgage
We're hearing a lot about short sales these days (summer 2007). The key words in the Multiple Listing Systems around the country are "third party approval required," or "bank approval required," which is a signal that the property you're looking at is actually being sold by the mortgage holder rather than the deed holder.
Before you get involved in one of these transactions, understand what they are not: a short sale is not simply a sale of a property for less than the original purchase price. It is not necessarily a "pre-foreclosure." It is not always a good deal.
What a short sale is: A short sale is a pre-foreclosure only in the fact that the lender has decided to receive payment on the note for less than the face amount. The sellers have determined there's no way they are going to get as much for the house as they owe and they can't stay in the property for one reason or another. The terms of such sales will differ lender to lender. Some require that the owners demonstrate they can't afford the house (that they're broke, in essence) and that there's no money to bring to the table to make up the difference.
It's a sticky situation for the sellers/owners. They don't want to hurt their credit or go into foreclosure, but they have to move because they've been transferred, lost a job, took a new job or are overextended, but they don't have the cash to pay the marketing costs, closing costs and pay off the mortgage.
Some short sales are real diamonds. I've seen some that look great, offer closing costs, priced aggressively and offer selling bonuses just to get the house off their books.
Conversely, they can also be some of the toughest deals to get through to settlement if the lender has lost too much money already and just wants to wait out the buyers until one comes along who's willing to buy the house in disrepair with no closing costs.
If you're writing a contract on a short sale here are a few tips to keep in mind:
Be patient. Because of the current default situation on mortgages, the lenders are inundated with many of these type properties. You're offer is one of many and the processor will get to it in turn. Don't expect a response in a day -- maybe not even two to three days. Sometimes a week is not out of the ordinary. Putting in language such as "response required within 24 hours," may just be a waste of time, rather than a stimulus to get a faster response.
A good comparative market analysis is imperative. Be sure to hit the price right on the head and offer close to it. Most lenders have already lost enough money, they don't want to lose more with a really low offer. If it's overpriced, then offer right at the CMA amount. But if it's right on, offer the full price.
Pile on the contingencies. This works well if you're writing a full price offer. Those would include inspections (home, pest, radon, etc.); appraisal; financing; etc. Ask for a lot and expect nothing.
Be on top of your walk through. Most short sales don't like home inspections, thus be aware of the condition of the property. If possible, test all the systems (electrical, plumbing, heating/air). This is as simple as flushing toilets, using a socket tester (available at hardware stores); and turning on the furnace/heater/air. You may even want to turn on the washing machine and dishwasher – but ask the listing agent beforehand. (PLEASE DON'T BRING YOUR OWN LAUNDRY AND DIRTY DISHES).
If you're on the selling side of a short sale, keep in mind you're not the one in control anymore. The buyer/agent is going to be dealing with the listing agent and the lender more than anyone else. You may want to be involved in the sale, but you're mainly there to agree to the terms set forth by the lender. Sign the paper work. Move your stuff -- out. They want their money and your home is the only thing standing in the way.
So you're out of trouble, right? Not so fast. The bank could come after the rest of the balance separately from the sale, just like they can with a foreclosure. On top of that, any cancellation of debt above $600 is supposed to be reported as income to you through Form 1099-C (Cancellation of Debt) to the IRS. For instance, let's say you sell your house for $30,000 less than you owe, that 30-grand could be additional income the IRS will want to tax.
Before you get involved in one of these transactions, understand what they are not: a short sale is not simply a sale of a property for less than the original purchase price. It is not necessarily a "pre-foreclosure." It is not always a good deal.
What a short sale is: A short sale is a pre-foreclosure only in the fact that the lender has decided to receive payment on the note for less than the face amount. The sellers have determined there's no way they are going to get as much for the house as they owe and they can't stay in the property for one reason or another. The terms of such sales will differ lender to lender. Some require that the owners demonstrate they can't afford the house (that they're broke, in essence) and that there's no money to bring to the table to make up the difference.
It's a sticky situation for the sellers/owners. They don't want to hurt their credit or go into foreclosure, but they have to move because they've been transferred, lost a job, took a new job or are overextended, but they don't have the cash to pay the marketing costs, closing costs and pay off the mortgage.
Some short sales are real diamonds. I've seen some that look great, offer closing costs, priced aggressively and offer selling bonuses just to get the house off their books.
Conversely, they can also be some of the toughest deals to get through to settlement if the lender has lost too much money already and just wants to wait out the buyers until one comes along who's willing to buy the house in disrepair with no closing costs.
If you're writing a contract on a short sale here are a few tips to keep in mind:
Be patient. Because of the current default situation on mortgages, the lenders are inundated with many of these type properties. You're offer is one of many and the processor will get to it in turn. Don't expect a response in a day -- maybe not even two to three days. Sometimes a week is not out of the ordinary. Putting in language such as "response required within 24 hours," may just be a waste of time, rather than a stimulus to get a faster response.
A good comparative market analysis is imperative. Be sure to hit the price right on the head and offer close to it. Most lenders have already lost enough money, they don't want to lose more with a really low offer. If it's overpriced, then offer right at the CMA amount. But if it's right on, offer the full price.
Pile on the contingencies. This works well if you're writing a full price offer. Those would include inspections (home, pest, radon, etc.); appraisal; financing; etc. Ask for a lot and expect nothing.
Be on top of your walk through. Most short sales don't like home inspections, thus be aware of the condition of the property. If possible, test all the systems (electrical, plumbing, heating/air). This is as simple as flushing toilets, using a socket tester (available at hardware stores); and turning on the furnace/heater/air. You may even want to turn on the washing machine and dishwasher – but ask the listing agent beforehand. (PLEASE DON'T BRING YOUR OWN LAUNDRY AND DIRTY DISHES).
If you're on the selling side of a short sale, keep in mind you're not the one in control anymore. The buyer/agent is going to be dealing with the listing agent and the lender more than anyone else. You may want to be involved in the sale, but you're mainly there to agree to the terms set forth by the lender. Sign the paper work. Move your stuff -- out. They want their money and your home is the only thing standing in the way.
So you're out of trouble, right? Not so fast. The bank could come after the rest of the balance separately from the sale, just like they can with a foreclosure. On top of that, any cancellation of debt above $600 is supposed to be reported as income to you through Form 1099-C (Cancellation of Debt) to the IRS. For instance, let's say you sell your house for $30,000 less than you owe, that 30-grand could be additional income the IRS will want to tax.
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