Semantic Search Explained

When I was growing up, last century, buying or renting a house in the laid-back city of Brisbane was a relatively straightforward, low-key affair. You asked your pals who was the Realtor in their community and you visited their office sometime in the week.

There were two implicit statements in this approach that, with time, have been completely lost. First that the Realtor was the most trustworthy person to do business with in the community when it came to buying or renting property, they were the ones with all the knowledge, expertise and vested interest.

They knew the community inside out, knew their business and worked to build up their reputation. Second that the Realtor’s interests and yours were roughly aligned. Yes, they wanted to make money, but they were not out to rip you off and as long as you understood that then the entire relational exchange was a little like two friends agreeing on a deal.

In retrospect it all sounds naively rustic, counter-intuitive to how we expect the world to run today when every deal needs to be inspected from every side and even then there is a good chance that something had been missed. Trust and alignment of interests seem to be notions that belong to a bygone century, not our fast-paced, digitally-enabled world.

Yet that’s where we’re headed towards in the 3.0 phase of the web that’s presided over by Google’s semantic search. As search gradually transits from an engine that provides probably answers to a search query that we then have to go through individually, ourselves, to one that provides answers, trust becomes a key component.

To work semantic search needs trust. It needs our trust in the veracity of the results it gives us and it needs, itself, to be able to work out the trustworthiness of the answers it provides. So a search, for instance, using Google Voice on mobile for “the best Realtor in Hopkinton” should produce a handful of choices that don’t just happen to be Realtors but are actually “the best”.

The way Google’s semantic search does that requires activities on its part that entail such complicated concepts as “entity extraction”, “relational identification”,  specific “data types”, “strings”, “alphabet sets”, and “arrays”. The end result however is that when it provides an answer that answer is trustworthy and for the Realtor using search to get prospects that’s pure gold.

Disregarding all the technicalities of this new search the question from a Realtor’s point of view is what does one have to do to make the “trustworthy” list? The answer to that is much easier to get a fix on than the mathematics of semantic search:

Semantic Search For Real Estate

1. Establish Yourself. Not all Realtors are equal. Some specialize in rentals and others in high-end properties. Some will only deal with residential properties and others will focus on business properties. Your digital presence, anywhere, has to make this crystal clear.

2. Tell Google where you are. If you post content about Houston and happen to be active in Philadelphia you’re not really helping Google understand where you are no matter what you say. There are a number of ways to establish location including using Google Local for Business, your Google+ profile, your Google+ Page, your LinkedIn profile, your website, your blog and every digital presence you have which permits you to establish your location.

 A good example of what a Realtor can do to establish trust within their community and surrounding area is to create a community page that establishes their expertise. Check out this community page that covers Shrewsbury Massachusetts Real Estate, schools, demographics and other town data that a perspective buyer or seller may be interested in. Would you not agree that a page like this builds trust and expertise surrounding the town of Shrewsbury MA? If you are a Realtor this is one example of how you can build your credibility.

3. Tell Google what you do. If you’re buying and selling golf courses but only blog about the daily life of a Realtor you’re making it really hard for Google to establish your expertise. By all means write about your daily woes but also write about why not every golf course is a sound investment, for instance. How one goes about getting the finance necessary for buying a golf course and what are the signs that a golf course is a good investment.

4. Tell the world what you do. Don’t just write. In the age of connectivity time is critical and no one has a lot of it to spend on reading all the time. Videos, Gifs, pictures and Tweets, all form a rich tapestry of content that helps create a more granular picture of who you are and what you do.

5. Connect the dots. The semantic web is social. The sharing of your content across social networks, the connectivity you make between the people you meet and the content you share, all form part of a complex matrix where what you share, who you are and you do become part of a very detailed picture.

All of this of course presupposes two things (again). First that you have a very carefully worked out content creation strategy that allows you to slice-and-dice your ‘message’ and inject it into the content you create. Secondly that Google’s semantic search is good enough to piece it back altogether.

Google is getting there with the second. To win in the semantic web you’d better make sure you’re there with the first. Keep in mind while the example of semanti search here is a real estate agent, this works the same whether you are a lawyer, plumber, or other industry.

The real estate article above was written by David Amerland who is one of the foremost experts on the subject of search engine optimization (SEO). David Amerland is the author of ‘The Social Media Mind’ and the best-selling ‘SEO Help’, ‘Online Marketing Help’ and ‘Brilliant SEO’.

His books on online marketing, SEO and the social media revolution have helped thousands of entrepreneurs build successful online businesses. When he is not busy writing he advises companies and start ups on social media strategy and gives talks about the social media revolution on the web.

He maintains his own blog at http://helpmyseo.com where you can find practical SEO and social media advice and spends more time online than is probably healthy.

You can follow both David Amerland on Google Plus  and Bill Gassett on Google Plus where you will find both using this great social media tool to create relationship with others and share content worth reading. We both hope to see you there!

Closing A Short Sale

Short sales can easily take two to three times longer to complete than a traditional real estate transaction. Keeping this in mind it makes sense to be well prepared if you need to short sale a Massachusetts home. Follow the outline below and you will be well on your way to increasing your chances that you will end up at a closing table.

Hire A Realtor Who Closes Short Sales

Choosing a Realtor who understands the short sale process is a critical one. On of the biggest stumbling blocks to short sale success is hiring any ole real estate agent to represent your interests in a short sale. Trust me there are Realtors taking short sale business who are absolutely clueless. Even though it is against the code of ethics for a Realtor who has no knowledge of short sales to list them, it happens all the time. In other words don’t choose the short sale Realtor pictured to the right!

Some of the first steps of a Realtor representing a short sale candidate include:

• Conducting a thorough interview of the short seller
• Establishing whether there is a valid hardship
• Determining lender/lenders
• Figuring out approximate remaining mortgage balance
• Determine what type of loan i.e FHA, Conventional or Fannie Mae
• Finding out if the seller is in default
• If so finding out how long in default
• Figure out if the seller is motivated and cooperative

If the short sale agent you are interviewing is not asking these questions then this could be the first clue this Realtor is not the right agent for the job! Once an agent has done their home work on the seller and has gone ahead with listing the home for sale, they then have to perform the function of finding the right short sale buyer. Finding the appropriate buyer in a short sale is a lot different than a standard real estate sale. You MUST have a buyer that understands the short sale process and is completely invested in the home.

What does invested mean? You want a buyer that is willing to wait the time it takes to complete a short sale and also go ahead with completing their responsibilities just like any other real estate transaction. Responsibilities include getting a home inspection done, signing a purchase and sale, and procuring financing. All of these things should be done prior to short sale approval NOT after. One of the biggest reasons short sales do not close is because of the Realtor not understanding how to properly represent a seller.

Work With An Attorney Who Closes Short Sales

The attorney you use in your short sale can have a huge impact on whether or not you get to the closing and also get your desired terms. Just as a real estate agent should have experience in closing short sales so should the attorney if you have one. By the way in my opinion it is vital to have an attorney representing your interests in a short sale!

A real estate agent should not be practicing law which is exactly what happens when you have a Realtor who negotiates a short sale contract and approval letter. Luckily for me I have one of the best short sale attorneys in Massachusetts representing all of my clients! Here are some of the things a good Massachusetts short sale attorney will be doing to get short sale approval:

• Understand and maintain lender guidelines
• Secure forms for each lender and/or servicer
• Run a title exam on the seller’s property
• Identify any liens and/or encumbrances
• Identify all individuals on deeds and mortgages

Complete Short Sale Package

Once these things are done the short sale attorney will assist in sending a complete “short sale package” to the lender. The short sale package that is submitted to the lender will include the following items:

• A short sale “hardship letter” which will explain to the lender why the seller needs to complete a short sale
• The seller’s tax returns from the prior two years
• The seller’s current pay stubs
• An authorization letter from the seller stating the attorney will be communicating and receiving lender docs on their behalf
• The listing agents contract and purchase and sale if available

The completeness of the short sale package is vital in a short sale and often times can hold things up if the lender does not have all the documentation when they ask for it. A good attorney confirm the lender has everything they need when asked for it. Often times negotiators will claim they never received documentation that was already sent. The attorney will also keep all seller financial information updated and forwarded to the lender every 30 days or as they require.

One of the biggest roles the attorney has is maintaining a constant line of communication with the lenders negotiator. When a negotiator asks for a document the attorney needs to jump on it right away.

Short Sale Negotiation

From a seller’s point of view there is nothing more important than short sale debt removal. Whoever is negotiating the short sale for the seller plays the biggest role in a seller’s financial future. Again I would never recommend using a real estate agent to negotiate a short sale.  The attorney I use negotiates on my seller’s behalf and looks to get the best deal possible from the lender/investor.

For example lets assume for a moment that a seller is $75,000 short at closing. The role of the attorney would be to try to get the $75,000 short sale deficiency eliminated! Today it is a lot harder to get a short sale debt completely removed but that is the goal. In many cases the lender will not agree to a complete debt removal but will accept either a cash contribution at closing or ask the owner to sign a promissory note. In short sales the amount that a lender typically tries to collect is pennies on the dollar.

While every short sale is different, using the example above a lender could ask an owner to bring $5000 to closing and agree to waive the remaining $70,000 balance. Often times in a short sale an owner has absolutely no cash and it would be impossible for them to contribute anything at closing. In this case the lender may ask for a $15,000 note be signed at favorable terms. Again these figures are just examples but show the type of monetary contributions lenders ask for. Keep in mind lenders will check your finances and know when they can’t get blood out of a stone. One the flip side if they see you have money to contribute, the likelihood is strong they will ask for something.

Aside from the negotiation of the dollar amounts the short sale attorney should also be looking to eliminate the possibility the lender can come back after you in the future for any remaining mortgage balance. This should be completely spelled out in the short sale approval letter.

Short Sale Obstacles

Before you ever get to the negotiating table with a lender there can be obstacles that pop up along the way. One of the most common short sale problems is disputes over value with lenders. This is one of the more common issues and can easily derail the short sale if you are not familiar with how to tackle the problem.

In every short sale the lender will send out a representative who will evaluate the current market value. This is either done by an appraiser or another real estate agent. They will do an analysis of value and report their findings back to the lender. The lender unfortunately can treat this value as “gospel”.  You are at the mercy of whatever the agent or appraiser has to say as far as value goes.

Here is where the biggest problem occurs. Most of the time it is not an appraiser that will do the evaluation but a real estate agent that the lender chooses. Here is the rub. The agent who does this work for the lender generally gets paid $40-80 dollars to do hours worth or work evaluating the properties value. Can you guess what type of agent has the time or inclination to work hours and only get paid $40-80 dollars. If you guessed bottom of the barrel then you are right on the money. Sometimes the agent isn’t even from the area and knows nothing about local value and differences between neighborhoods. Pardon the French but it can be a real shit show.

When a lender is given an evaluation that does not make sense they will counter offer at some ridiculous value that makes absolutely no sense. This is where a skilled short sale agent comes in that knows how to dispute a foolish evaluation given by some nit wit who is practicing real estate part time on the side. I kid you not this happens far too often!

Picking the right short sale Realtor and attorney is a vital part of short sale success!

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About the author: The above Real Estate information on how to achieve short sale success was provided by Bill Gassett, a Nationally recognized leader in his field. Bill can be reached via email at billgassett@remaxexec.com or by phone at 508-435-5356. Bill has helped people move in and out of many Metrowest towns for the last 26+ Years.

Thinking of selling your home? I have a passion for Real Estate and love to share my marketing expertise!

I service the following towns in Metrowest MA: Ashland, Bellingham, Blackstone, Douglas, Framingham, Franklin, Grafton, Holliston, Hopkinton, Hopedale, Medway, Mendon, Milford, Millbury, Millville, Natick, Northboro, Northbridge, Shrewsbury, Southboro, Sutton, Wayland, Westboro, Whitinsville, Worcester, Upton and Uxbridge MA.

Using Google+ As a Real Estate Agent

The following article is written by David Amerland who is one of the foremost experts on the subject of search engine optimization (SEO). David Amerland is the author of ‘The Social Media Mind’ and the best-selling ‘SEO Help’, ‘Online Marketing Help’ and ‘Brilliant SEO’. His books on online marketing, SEO and the social media revolution have helped thousands of entrepreneurs build successful online businesses. When he is not busy writing he advises companies and start ups on social media strategy and gives talks about the social media revolution on the web. He maintains his own blog at http://helpmyseo.com where you can find practical SEO and social media advice and spends more time online than is probably healthy. You can follow him on Google+ or Twitter @davidamerland.

There are few industries in the world that quite share as many challenges when it comes to online promotion as the Real Estate one. The busy realtor who struggles to carve up enough time to spend with potential buyers and sellers and still run his business, also has to contend with the demands made by the transition of marketing from traditional to digital.

There is a paradox here that must be addressed. While for most industries the transition from offline to online means greater opportunities and an increase in ROI due to the efficiencies achieved through the web, for the real estate industry as a whole it presents a real challenge. Real Estate, a proposition that is hyper-local, has to, somehow, also work on a global scale. Homes being sold in Texas may find buyers in Idaho. Villas in Florida can be bought by holiday home seekers in Britain.

Those looking to relocate from one State to another, or even one country to another, have to be able to find what they want outside their own search bubble. The realtor is expected to have a powerful presence in local search, achieve high rankings in global search and still run a business that has no regular hours and is plagued by a volatile target audience.

For realtors the only answer to the challenge represented by ‘online’ was to either specialize and hyper-localize in terms of both sellers and buyers in which case the issues raised by the complexity of being found through search became somewhat easier, or to put enough time and money into the digital part of the real estate business and hope the ROI worked. Either way the solution required curtailing the ability to work properly by either committing to a smaller, deeper part of the market or a greater expenditure of money. Both choices come with inherent risks.

Now however, there is another way.

The power that lies in “connecting the dots”

Google+ is frequently called in the media “Google’s Social Network” but it is a lot more than that. It is a set of powerful socialization tools that allow the creation of social signals right across the web. In order to quantify this a little let’s look at what is also frequently mentioned in the media as the “competing social network” to Google+ – Facebook.

The listing of a villa for sale in Florida posted on Facebook may get a little bit of interaction with some of those who see it, it may get re-shared a few times, particularly if it is a spectacularly appointed or expensively priced villa, but its finding a buyer has about the same chances that traditional, one-off print advertising offers or worse as at least the latter can lie around for a while the former will get buried in the stream within a couple of hours or so.

The chances then of the right person seeing it, at the right time, with the right mindset, are so slim that they hardly do justice to the effort involved in posting it. Now look at that same listing posted on Google+. The data is indexed by Google. The search engine notes that the listing is for a villa in Florida. It sees that those who interacted most with the listing come from Britain. It notes that the person who posted it frequently blogs about villas, engages in posts about real estate in Florida and interacts with realtors and clients who are based in the State.

The next thing you know a potential buyer doing a search on Google for moving services to Florida sees, in the suggested results on Google search, the name of the realtor who sells villas there. A different person using Google’s UK index to look for “luxury homes in the US” also sees the name of the realtor selling villas in Florida. And, if the realtor has done his homework and linked his G+ account with his website, they also see, each time, a thumbnail of his picture next to the suggested content that appears on Google search.

What has happened here is that by creating a breadcrumb trail of activity the clever realtor has engaged Google search to act as his personal real estate billboard, complete with publicity picture, when it’s relevant to the search query.

No more time wasters

The key here is relevance. Search only works when it creates what is increasingly called, contextual value. There is little point in having your real estate listings show up on a search for Florida someone is carrying out as a school project, for instance. Here Google+ and Google become almost synonymous in purpose and the bridging link is data. But the gift is not just granted, you need to work for it.

The data you input in your Google+ profile, the connections you make, the interactions you have and the posts you place there are all part of an increasingly visible digital footprint that begins to define ‘you’ as an entity in Google’s search. That means that what you do and how, locally and globally begins to now make sense the way humans would understand it and machine search, in the past, didn’t. Which also means that you are then more likely to have a targeted audience in Google search than ever before.

If all this sounds like you can finally begin to achieve more in the digital world, in real estate, with less it’s because that’s exactly what it is. The caveat is that you will need to invest time in a content creation plan that will, in its totality, help create as complete a picture of you and your business as possible, link your website to your Google+ profile and behave online with the authority and expertise and generosity of advice and engagement that you do offline.

Do all this and suddenly the job of being a realtor will begin to sound a lot less demanding than it currently is. The time for using Google Plus For Real Estate is here! If you are a Real Estate agent reading this article don’t get lost in the shuffle! Google Plus can be a Realtors best friend if you know how to use it properly!

If you are in the Real Estate industry whether is be a Realtor, mortgage broker, or home stager make sure you join the Google Plus Real Estate Community. There are great discussion daily on a wide variety of topics related to Real Estate and how you can grow your business!

Buyer’s Agent Representation For Short Sales

In every real estate transaction I am a firm believer of a buyer having representation. It makes perfect sense for a home buyer to have someone in their corner giving them guidance. Unfortunately when it comes to short sales I have found that so many buyer’s agents are not properly educated enough to do a proper job.

Short sales are not ordinary real estate transactions and as such an agent who has no knowledge should no even consider getting involved with one unless they have another agent who does mentoring them. While representing home owners who have needed to short sale their property over the last seven years I have noticed time and again real estate agents who don’t even understand the basics of short sales. If you are a buyer and are considering purchasing a short sale I am going to go over some of the basics below on what you need to understand before entering into one of these transactions.

Short Sales Take Time

If you are considering buying a short sale the first thing you need to understand is that they take far longer to purchase than a non-short sale. On average it takes around 90-120 days to get short sale approval. In some cases it can be a lot longer! For example if there is more than one loan on the property and both are “short” then you will need to get approval from both lenders. This will add time to the overall process of getting to the closing table.

It is also possible that the original  mortgage the owner had on their home was an FHA loan. If that is the case than you can prepare yourself for an even longer journey. As crazy as it sounds, it is quite possible it could take 6-9 months or longer to get to the closing table with an FHA loan. This is obviously a question your buyer agent should be asking right up front. Guess how many buyer’s agents have asked me this question over the last seven years? If you said zero you would be correct!

On some short sales Fannie Mae or Freddie Mac is the investor holding the note. There are many buyer’s and agents who will ask the question who is the lender? Lets assume for a minute the lender is Bank of America (BOA). That does not mean that Bank of America is necessarily the decision maker. They may not actually own the note and are just the “servicer”  for the investor.

There could be 20-30 investors that own notes that BOA services. This is one reason why one BOA short sale could be a nightmare and the next smooth sailing.  This is true of most lenders not just BOA. On some loans there could also be mortgage insurance in which case the insurer also has to approve the short sale. Are you starting to get the picture here? Short sales are one big bureaucratic mess. If you were thinking that short sale approval was as simple as  some dude was sitting behind a desk making decisions then you are wrong!

The long and short of all this is that a buyer’s agent should not get a buyer involved with a short sale transaction unless they have the time to see it through until the end. Keep in mind that a seller going through a short sale is in a tough financial position. The last thing they can afford is an uneducated buyer thinking it is fine to bail on them after a month because they are tired of waiting for a short sale approval to be issued.

Be Prepared To Spend Money

In every real estate transaction there is risk. When you purchase a home some of the typical expenses a buyer should be prepared for are home inspections, hiring a lawyer for contract review, and applying for a mortgage. In many short sales I see buyer’s agent’s trying to structure the contract such that the buyer does not have to spend money on any of these things until there is short sale approval.

Sure it would be nice to go around in life to never have any risk in anything you do but that is not how it works when purchasing a short sale. Well actually let me rephrase that. This is not how it works in any short sale where I will be representing the seller! The goal in any short sale is to actually get to a closing. When you try to change the rules of real estate you increase the likelihood you will not be closing. There are reasons why a buyer should get their home inspection done, why they sign a binding contract and why they procure their financing prior to short sale approval. For a complete explanation of why a buyer should complete these tasks up front see reasons to reject short sale offers.  Being educated on the entire short sale process is vital.

Interview The Listing Agent

Why on earth would you want to interview the listing agent you may be thinking? The answer is real simple….you want to be able to find out what the chances are that you will actually close on the home you are interested in purchasing. Closing short sale transactions are far more complex that a regular sale. The listing agent in a short sale should have experience closing them! This can not be emphasized enough. There is nothing more important in a short sale than the listing agent having a track record of success.

For example if the listing agent allows you to do a home inspection after short sale approval do you really think they have any clue what they are doing? Would they be representing their clients interest to allow this? Do you think there would be plenty of short sales that bit the dust right before closing if this was allowed?

Here is a detailed list of short sale questions for a listing agent. These questions should be able to help you get a better grip on whether or not the Realtor knows what they are doing. You should at the very minimum be finding out how many short sales they have listed and how many of those have closed. You should also be making sure that if your offer gets accepted the seller signs it and the home is taken off the market. Remember without a signed contract, the seller can accept a better offer from someone else.

Short Sale Low Ball Offers

If you think short sales are an open invitation for you to offer some ridiculous price then you are wrong. The chances of a lender accepting something significantly under value is slim to none. What buyer’s agent and buyer’s need to understand is that the lender is going to verify that the offer the seller has accepted makes fiscal sense. The lender will either send out an appraiser or another real estate agent who will do an analysis of value on the home and send that back to the lender. The lender will use this information to form the basis of their decision on whether to accept, reject or counter offer.

It makes no sense for an owner to accept a low ball short sale offer. When a seller does this they have taken their home off the market for months and are almost assured that they lender will say NO! For a seller to accept a low ball offer would essentially be gambling away any chance they have for short sale success.

A short sale should be a decent value and more often than not slightly under market for what a similar property should sell for. Don’t expect the world though. Lenders are much tougher today with value and getting the most they can.

Short Sales Are “As Is”

Short sales are generally as is transactions. Don’t expect a seller to go out and make repairs after doing a home inspection. The whole reason they are doing a short sale to begin with is because they don’t have the financial means to keep the home. If you happen to do a home inspection and there is a major defect that you were not expecting what you should try to do is negotiate a lower sale price.

The listing agent will want to document the defect to the lender. They will do this by providing the inspection report to the appraiser or real estate agent who does the evaluation on their behalf. Do not expect to negotiate a bunch of silly “punch list” type of items from a home inspection. Go into the sale with an open mind knowing you will need to do some work.

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About the author: The above Real Estate information on educating a buyer looking to purchase a short sale was provided by Bill Gassett, a Nationally recognized leader in his field. Bill can be reached via email at billgassett@remaxexec.com or by phone at 508-435-5356. Bill has helped people move in and out of many Metrowest towns for the last 26+ Years.

Thinking of selling your home? I have a passion for Real Estate and love to share my marketing expertise!

I service the following towns in Metrowest MA: Ashland, Bellingham, Blackstone, Douglas, Framingham, Franklin, Grafton, Holliston, Hopkinton, Hopedale, Medway, Mendon, Milford, Millbury, Millville, Natick, Northboro, Northbridge, Shrewsbury, Southboro, Sutton, Wayland, Westboro, Whitinsville, Worcester, Upton and Uxbridge MA.

Underwater Nation: A Look at the New Year

The following article is a guest post from Jared Diamond who writes on a multitude of personal finance and economic topics. He enjoys sharing insights with broad audiences. Jared serves in a consultancy role with a dynamic set of personal finance companies. The views expressed in this article are those of Jared Diamond and do not necessarily reflect the views of Massachusetts Real Estate News.

According to a recent report from Zillow, more than 30% of the U.S. home-owning population is underwater on their mortgages. This is a grim outlook for the real estate market despite increasing property values, which we can attribute only to the shortage of homes built within the last 12 months. As 2013 looms, will these upside-down homeowners weather the rough economic storm or will they list their properties and try to move on?

The fed is desperately trying to come up with a solution to rescue those individuals who are drowning in negative equity in hopes to free up some of their finances. The logic is that those individuals will then turn to the marketplace with their newly freed funds and bolster the sluggish economy with it. But the fed may be in no position to bail anyone else out with the looming fiscal cliff.

It’s great that home prices are rising, but it will provide little relief to the still-crippled real estate market as we move into 2013. Although some markets are seeing sales gains, the current environment may not have enough of an effect on potential buyers as they weigh the pros and cons of investing in a home. Primarily, will the property’s value increase enough to outweigh any potential for negative equity?

But as property values go up, even slightly, so do the ambitions of property owners who may feel they can capitalize by asking for higher selling prices or increasing monthly rents. As such, commercial and residential renters should look to lock in low monthly payments by securing long-term occupancy contracts before prices go any higher in the upcoming year.

“That might be problematic for some rent-to-own properties,” says Brian McNerma, credit consultant with rent to own property listing service, HomeStarSearch. “Sellers will try to make up for their financial losses by passing the negative equity on to potential homeowners.” But not all property owners are underwater on their mortgages, he insists, and he urges those interested in lease-option to research the contract and the seller carefully.

Renters unable to escape higher monthly rents, however, just might consider making the long-awaited home purchase.Record-low interest rates and affordable prices are definitely enticing to new home buyers, but they do little to help those currently upside-down on their mortgages. Therefore, the number of home sales in 2013 – while trending upward slowly but surely – will be greatly limited by those who can’t afford and cleanly walk away from negative equity and start anew.

In fact, those affected most by negative equity are young owners who purchased homes with low down payments and didn’t have a chance to see equity improve before the housing bubble burst. Now they’re left with financial security enough to maintain the mortgage, but not enough to get out from underneath it.

Despite rising property values, the market is far from healthy. Even with seeming upward trends in major markets, it’s important to look at the other factors that influence those trends prior to making the assumption that things are going well.

The slow growth however, is good long-term as it allows potential buyers to establish down payments, build credit, and take advantage of various financing options without housing becoming too unaffordable. The market depends on this type of behavior, which is much more stable than the easy credit days prior to the recession.

Selling a Massachusetts home today is not like it used to be back in the middle of this decade. Quite honestly when you needed to sell a home back then it was as easy as convincing a dog that table scraps taste better than what’s in his bowl. Boy has the Real Estate landscape changed!

Back then the 3 P’s of marketing always worked…Put a sign in the yard, put it in MLS and pray:)

When you are selling a home today in Massachusetts you better be darn sure you do your homework on who will be representing your best interests in the sale.

Selecting a great Realtor to market your home should be one of your 1st considerations.

As a Realtor who has been selling Real Estate for almost twenty five years, I can tell you with certainty that the Real Estate agent you select will have the greatest bearing on whether you will be happy a happy camper or not. In the Real Estate industry there are some very good agents and some that have no business holding a license.

One of the things that puzzles me the most about the my business is how lackadaisical people are about selecting a Realtor. When people need a good doctor, lawyer, auto mechanic or a host of other things they do their proper research. Decisions are not made lightly. On many occasions this does not hold true with selecting a Realtor even though you would think it should given a home is often times a persons largest asset.

From being in the business I can tell you with certainty that there are three traits that you most successful agents have mastered.

These include the ability to price a home properly, a well designed marketing plan, and someone with effective communication skills.

Lets face it we all want our homes to sell for the most money. It is human nature. We all think our home is better than the guy that just sold down the street. Many home owners make their biggest mistake by going with the Realtor that gives them the highest price.

Guess what…there are unprofessional agents that know some people make decisions based on emotion and not logic. There are a certain segment of Realtors that will tell you what you want to hear to get your business.

Once the agent has you under contract and the home has been on the market for a while they start to badger you for price reductions or worse say nothing. You may be thinking what is the point of having an overpriced home? Some agents just don’t care because they are using your home as a means of drawing calls from buyers that could lead to  sales elsewhere.

So how do you avoid making a poor decision picking a Massachusetts Realtor?  Here are a few tips:

• Ask good Realtor interview questions. Look for a Realtor that has a good track record in both seller’s and buyer’s markets. Past success is usually a great indicator of future success. Ask the agent for a few references. I would suggest asking for some of their most recent sales and not from some hand picked list that you know will be giving them glowing reviews.

• Look over the market evaluation of your home very closely. Do the comparable sales look similar to your property? Remember you need to be looking at this information through the eyes of a buyer. If a similar home down the street had a brand new top of the line kitchen and other updates don’t expect to be getting the same price if you don’t have them.

• Picking a Realtor based on the price they give you is really double whammy because more often than not you will be stuck with a lousy agent and an overpriced home. Even an outstanding agent will have difficulty selling an improperly priced home. There are countless homes that come up expired each week. The common denominator is most often the wrong list price!
  

The 2nd trait that most exceptional Real Estate agents have is the ability to market well. What this really means is the ability to market on-line. The days of people finding homes by looking in the classifieds and magazines are over! Almost 90% of all buyers find their homes by doing some kind of on-line search.

As a home seller you should be looking for a agent that has a very strong web presence. By web presence I don’t mean putting it into the Multiple listing service (MLS) and Realtor.com. While these things are important they are what every Realtor does.

The Realtor you select should have their own website and it should come up in local Real Estate searches. The ability for the site to come up in searches is of the utmost importance. A Realtor could have a very attractive website but if it does not come up in competitive searches it will not help YOU sell your home.

For example if I am a buyer and I am going to be looking for homes or condos on-line, I am probably going to go to Google and punch in something like:

• Hopkinton MA Real Estate
• Holliston MA homes for sale
• Real Estate Ashland MA

or something similar. A Realtor that can come up on the 1st page of Google for these terms knows what they are doing, as these are the most competitive terms to rank for. All the National Real Estate portals such as Realtor.com, Homes.com,  Zillow, Trulia, and Yahoo Real Estate spend lots of money to make sure their sites are on the 1st page of Google because they know that consumers use these kind of terms to find property. When a Realtor can get their website to the 1st page of Google guess what happens?

Lots of traffic and many more eyes viewing the homes they have listed for sale!

When doing these kind of searches today you will also notice that the agents that really know their way around the web 2.0 have started a Real Estate blog to market their properties.

Google loves blogs because they are not static like websites. The best blogs are updated on a weekly basis and will be used to showcase a homes best attributes. Search engines love fresh Real Estate content!

Besides a website and a blog you want to make sure that your home is found in the places where most people searching for a home visit.  One of the things I am most proud of as an agent is my ability to have my clients homes or condos all over the place on-line. Here is a list of the most visited Massachusetts Real Estate sites for selling a home or condo.

Let me say with great emphasis that there is a big difference between just being in these sites and doing a great job making your home stand out from the competition! What you want to see for your home is multiple photos taken with a high end camera, well thought out descriptions highlighting the best features, and video tour that takes a buyer through the home.

Lastly, you want a Realtor who communicates with you on a consistent basis. Most sellers want to know what is going on with the process of selling their home. Who wouldn’t! Make sure the agent has a plan to keep you informed. Does your Realtor call every agent after the home is shown to see what are the agents/buyers thoughts?

How is this information relayed back to you? One of the things I do for my clients which they really appreciate is a feedback report that can be viewed on-line. We give the client a password to the site and they are the only ones besides us that can see it. It keeps them in the loop on what buyers are saying and they just love it! The feedback helps us as well because if we see a pattern in the comments we can make suggestions to address the issue.

If you find an agent that does these things and you do your part keeping the home clean and making it easy to show, you will have a blueprint for a successful Massachusetts home sale!

Other related Real Estate articles:

• Massachusetts for sale by owner
• Real Estate communication skills

Why Is FHA Financing So Popular?

I am excited to announce guest blogger Michael Dunsky from Guaranteed Rate Mortgage who will be covering some of the terrific benefits to FHA financing when you are purchasing a condominium. Michael has been one of my preferred loan officers for years and always does an exceptional job with his clients. Check out Mike’s terrific article on why you may want to consider using FHA financing when buying a condo.

Let’s say that you want to buy a home but are not looking forward to shoveling snow or taking care of the yard. Or, perhaps you are looking to buy in an area where single family homes are too high for your budget. A great alternative is a condominium. Condominiums typically sell for less than single family homes and offer home ownership opportunities without having to worry about general maintenance and upkeep.

There are plenty of home loan options available to those purchasing a condominium but one particular type of home loan, FHA (Federal Housing Administration), offers the least restrictive qualifying criteria. FHA loans are government insured loans designed to help more people qualify and achieve the American Dream of owning their own home.

FHA allows for low to moderate income buyers to buy a property who may not meet conventional loan guidelines or may have been denied for conventional financing. In recent years FHA loans have become very popular given the absence of those more “flexible” loan options that have gone by the wayside in the mortgage meltdown a few years ago. FHA financing basically opens doors to folks who might not otherwise qualify for financing.

Many condominiums buyers are first time buyers and most first time buyers share similar characteristics that FHA appeals to. Usually, first time buyers don’t have a sizable down payment, there is often higher debt for student loans and simply not having much time in the workforce to save much, as well, their credit scores may not be that high due to length of time having active credit. FHA loans seem to have modeled their guidelines to these specific traits.

Qualifying for FHA Financing

FHA allows for the following:

• Only 3.5% down payment instead of the traditional 5% down payment required on conventional loans

• 100% of the down payment can be a gift, compared to a conventional mortgage that requires borrowers to verify they have at least 5% of the purchase price from their own funds

• Lower minimum credit score than conventional loans. Most lenders allow for a minimum score of 640 for a FHA loan while conventional loans can require significantly higher scores depending on the amount of down payment. Some lenders will allow for scores lower than 640 under certain circumstances

• More flexible with the amount of debt a person is carrying compared to that of a conventional loan.

The other aspect of buying a condominium with FHA financing is making sure that the condominium project meets FHA’s requirements. This would be one of the questions to ask before buying a condo. There are specific guidelines in place to ensure that the condominium meets FHA’s criteria for a project to ensure it’s long-term viability. In keeping up with the times, FHA recently updated their criteria for certifying a condominium project as there were certain guidelines in place that were outdated for our current economic climate.

For instance, if you are looking at purchasing a condominium unit in a city then it would not be uncommon for the building to have some commercial space (retail stores or possibly professional offices). It was not that long ago that FHA only allowed for 25% of the condominium project to be allocated for commercial space. The revised criteria now allows for exceptions up to 35% commercial space which will free up more projects to become FHA certified and, therefore, open the door for more home buyers.

Another guideline FHA addresses, and has recently amended, is to allow for greater flexibility for one or more investors who can now own up to 50% of the entire project. Previously, this was limited to just 10%.

The owner occupancy ratio should always be looked at when contemplating buying a condominium. The owner occupancy ratio is a simple formula, the number of units lived in by their owners divided by the total number of units in the project. FHA will certify a project as long as the percentage of owners renting their individual units does not exceed 50% of the entire project.

A condominium project is run just like any household or business. There are costs associated with running the project and there are fees that the unit owners pay in order to cover these expenses (commonly referred to as condominium dues or homeowner association fees- HOA fees).

One area that is closely evaluated is the condominium project’s budget. In order to add further protection to a condominium project and to ensure that there are sufficient funds available for general maintenance and upkeep of the building, grounds, and common areas, FHA requires that each condominium project have a line item for reserves in their budget of no less than 10% for additional maintenance and repairs.

One aspect of managing the finances of a condominium project is to ensure that no one runs away with the money. What’s to stop a trustee, the homeowner’s association, or independent management company responsible for all of the condominium project’s finances from mishandling or stealing the money from the budget?

FHA directly addresses this by requiring Fidelity Bond Insurance, also known as “Employee Dishonesty” or a “Crime Policy” is put in place for all condominium projects with 20 units or more. This is yet another protection for the unit owners to help sustain the viability of a project. The last thing you want as a unit owner or potential buyer of a condominium is to find out is that there are insufficient funds in the budget to keep the property looking fresh and clean along with upkeep and general maintenance.

In hard economic times some unit owners may fall behind on their HOA dues/fees and if a significant numbers of owners fall behind paying their HOA dues then this can materially impact the finances and viability of the entire condominium project (not to mention all of the unit owners that may, in fact, have to cover those costs at some point).

Part of FHA’s criteria for certifying a project requires that no more than 15% of all unit owners can be over 60 days delinquent on their condominium dues. This is one area that should be looked at closely prior to any purchase of a condominium. There are many more guidelines that FHA has in place for the sole purpose of good lending practices but these are the most pertinent in today’s lending environment.

Although the process for FHA certification of a project can seem a little excessive, I fully believe that any soon-to-be buyer of a condominium will appreciate that FHA has their best interest at heart.

If you are considering buying a condo and want to work with someone that is very knowledgeable about mortgage financing, has great service skills and competitive rates, I would give Mike a call!

Michael Dunsky can be reached at Guaranteed Rate, Inc which is located at 38 Pond Street, Suite 208  Franklin, MA 02038

Phone 508.528.1800

Michael.dunsky@guaranteedrate.com

Maximum Real Estate Exposure in Massachusetts

As a top Massachusetts Realtor, one of the things I am constantly keeping aware of is how to make sure my clients properties and my business itself are marketed to the fullest. There are so many Realtors that don’t pay any attention to SEO or Social media. Anyone who uses social media and has an understanding of SEO knows that it takes a lot of time and effort.

There are many so many Real Estate agents that just don’t want to bother with it. Their mantra when marketing a home for a client is I will put it in the multiple listing service (MLS) and hopefully it will sell. Not this guy! In order to be the best in your field you have to stay two steps ahead of the competition. My repertoire consists of using multiple blogs and websites to draw traffic to my clients homes.

Maximum Real Estate Exposure is a combination blog/website that I designed with the intent to provide my clients with online Real Estate exposure they could not find anywhere else. In the Real Estate industry the internet has become a dominant search tool for those who are looking to purchase a home. Survey after survey says that over 90 percent of all buyer’s find their next home by doing some kind of online search.

Real Estate Exposure Via Google Searches

As a Realtor who always tries to stay up to speed with the latest innovations and technology, I recognized this trend years ago when search engines started to become a popular vehicle for folks to find a home. As a casual observer one of the clear signals of how the Real Estate business started to evolve was the move away from print media. If you looked at a newspaper five years ago on a weekend it would be filled with Real Estate advertisements. If you look at that same newspaper today there is barely anything there.

Clearly print media is not the place people go when they are searching for a home. The internet changed all of that! A buyer looking to purchase Real Estate today will more than likely do one of two things when they are first starting to look for a home. Most buyer’s will either go to one of the popular Real Estate search portals they have heard about like Realtor.com, Zillow.com, Trulia.com or will do a Google search and punch in something like the town, state and the word Real Estate or homes for sale.  A buyer may also find the address of a property they are interested in and just punch that address into Google.

Search engines have revolutionized the Real Estate industry because consumers are now empowered with most of the information they need at their finger tips. Years ago when I got into business this was not the case. Back in the 1980′s Realtors were the gatekeepers of info. When a buyer started their home search they typically would give their search criteria to their Real Estate agent and based on those needs and wants the Realtor would suggest the properties they should look at.

Today on most occasions they exact opposite occurs. Buyer’s today will more often than not tell the Realtor they are working with what properties they would like to visit. The Internet changed how the Real Estate industry works and how a Realtor conducts their business.

As a home seller this makes it vital that your home looks it’s absolute best online.  There are vast differences in what Realtors do to market properties. Unfortunately many seller’s find out the hard way that all Realtors are not created equal. If you want to maximize your chances of selling your home for the most money in the least amount of time, you are going to want to make sure you have hired the very best to represent you. Just like any other industry there are some very good agents and some you may find do not live up to anywhere near your expectations.

As a home seller one of the most important things a Realtor should focus on is the presentation of the property. You should expect that the photography the Realtor provides is outstanding. There should not only be an abundance of pictures taken of both inside and out but the quality should be exceptional as well. This is an area you do not want to skimp on.

You have one chance to make a great first impression online. You should also expect that the description of your home is well written and depicts accurately all the best features you would like to emphasize to a buyer. Lastly buyer’s today love video as a medium for looking at homes. You should make sure the Realtor you choose has some kind of video presentation.  In a sea of competition you want to make sure your home stands out from the crowd.

Exposing Real Estate Through Social Media

Once the photography is done and the ink is dry on the descriptions of your home a web savvy Realtors job has just begun. While search engine exposure is vitally important, the next area you can’t discount is all the social media tools that are at a Real Estate agents disposal. Without a doubt the number one tool in for creating maximum online exposure is a well indexed Real Estate blog.

A blog forms the back bone of all of my social media efforts. A good way to describe a blog is a mini website for a property. With a blog you can do almost anything you can think of. What I like to do is create a place where buyer’s can visit and find out just about anything they would want to know about a property I am marketing. You will see exceptional descriptions, photography, a link back to my website, a video tour and an embedded Google map showing the exact location of the home. See Walden Woods Milford Massachusetts for an example of the type of marketing I am referring to.

Once you have the content in put together you then start work on your social media campaign. Some of the places you will find my clients properties exposed besides my own websites and blogs include:  Google+, Facebook, Twitter, Linkedin, Youtube, Active Rain, Daily Motion, and Pinterest.

The combination of search engine optimization (SEO) and social media are very important part of any Realtor who expects to be at the pinnacle of their industry.  Without a doubt having well optimized websites and blogs have been one of the biggest factors in my success as a Real Estate agent.

If you are thinking of selling your home or condominium we represent sellers in the following communities scattered in and around the Metrowest area including Ashland, Bellingham, Blackstone, Douglas, Framingham, Franklin, Grafton, Holliston, Hopkinton, Hopedale, Medway, Mendon, Milford, Millbury, Millville, Northboro, Northbridge, Shrewsbury, Southborough, Sutton, Wayland, Westborough, Whitinsville, Worcester, Upton and Uxbridge.

Whether you are selling a condominium under a 100,000 or a million dollar plus home we treat everyone the same. We expect that our marketing is going to be top notch.

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About the author: The above Real Estate information on Maximum Real Estate Exposure was provided by Bill Gassett, a Nationally recognized leader in his field. Bill can be reached via email at bill@remaxexec.com or by phone at 508-625-0191. Bill has helped people move in and out of many Metrowest towns for the last 25+ Years.

You can see my Google+ Business page for Maximum Real Estate Exposure here.

Home Warranties vs Home Insurance: What you need to know.

The following article is a guest post from Kaitlin Ziessler who is a blogger for American Home Shield. Her goal is to inform readers about the differences between home warranty and insurance plans. Other topics she blogs about include appliance repair tips and home care advice for homeowners and new home buyers.

Protection, security, a good night’s sleep — home warranties and home insurance provide them all. Though it might be tempting to skip the fine print of coverage in favor of a general sense of reassurance, it pays to know the particulars of these two products.

To get the right combination of coverage, home buyers need to understand the possible benefits each offers and also what sets warranties and insurance apart. Such information can prove to be a blessing for consumers needing to make use of the safety net warranties and insurance provide.

Meant to prevent or ease a financial hit if something goes wrong, warranties and insurance operate in different circumstances. Warranties prevent home buyers from having to shoulder the cost of something wrong with the home or its components.

Insurance protects against outside forces that wreak havoc on a property. Another difference lies in coverage time: insurance provides ongoing protection, while warranties expire after a certain specified period.

Homeowners often come by warranties and insurance through different means. While home buyers purchase their own insurance, warranties are often supplied by someone such as a builder. Builder warranties give peace of mind to buyers of newly constructed homes. After all, no one wants to have bought a home riddled with defects. Sellers of existing homes may include a warranty with the sale to nudge a would-be buyer into a purchase. Indeed, if a buyer has a warranty on a house, it can be an advantage in selling a home since the warranty is transferable.

Even when a home buyer isn’t the one providing the warranty, researching warranty companies is a good idea. When the time comes to purchase, the home buyer can then request that the seller goes with a warranty company of the buyer’s choosing. The new homeowner will then already know the specifics of the warranty coverage, how to make a claim, and how claims will be handled.

Home warranties aren’t a blanket promise to resolve problems that arise. Instead, they provide limited coverage on the workmanship or materials of certain elements of a home, including windows, plumbing, and heating, ventilation and air conditioning. How long these items are covered differs from element to element. Components such as plumbing, electrical systems, and HVAC are often covered for two years, according to the Federal Trade Commission. For newly built homes, meanwhile, elements such as drywall, siding, trim, doors, and paint are usually covered for one year. For new construction, this provides owners a sort of break-in — or, perhaps more aptly, break-down — period that ensures buyers purchased the quality home they expected to get.

Owners purchasing or receiving a warranty for an older home might receive coverage on appliances, which builder’s warranties don’t typically include. Knowing the extent of the coverage helps owners not only choose the right warranty, it also lets them plan ahead for future breakdowns and problems a warranty won’t cover.

To choose the right warranty or get to know the one supplied by a builder or seller, buyers should look into the following:

•   What items the warranty covers and for how long

•   What kind of damage is covered — wear and tear, defect, breakdown or age

•   Whether or not pre-existing problems are covered

• Service fees and deductibles

• How repairs will be made and who will handle them

• Caps on what will be paid

•   Claims procedures

• Whether you can purchase a replacement item with help from the warranty company instead of having it repaired

• How complaints will be resolved if whomever handles the repair does a poor job

As they would for warranty coverage, homeowners should also shop around for home insurance, not only to get the right blend of coverage, but to save money. Costs vary according to company and by things such as the home’s age, location, construction, and proximity to fire stations.

Consumer guides, state insurance departments, and the National Association of Insurance Commissioners can provide direction to those shopping. These sources can also alert consumers to complaints against an insurer and sometimes have information on rates.

Once a homeowner has a short list of insurance companies, the next step is to call around for quotes. According to USA.gov, discounts may be available for those over 55, long-term customers, and safety features in the home. Safety features include items such as dead bolts, storm shutters, and alarm systems.

When buying insurance, keep in mind that the policy doesn’t need to cover the value of the home including the land — the land won’t be lost in, say, the case of a fire. The value of items within the home, however, ought to be covered, allowing a homeowner to replace them as well as a house.

An insurance policy doesn’t typically cover the loss of a house due to floods or earthquakes. To get the benefit of that coverage, separate insurance must be purchased. For those in flood-prone areas, the National Flood Insurance Program provides protection.

What homeowners insurance does typically cover is property: the home, items inside the home, and detached structures such as tool sheds or garages. If the worst happens and a home is lost, a policy can provide “loss of use” coverage, which helps to defray living expenses while rebuilding. Insurance policies also cover liability if a non-resident sustains an injury on the property and the homeowner is responsible.

Besides standard coverage, consumers can buy extra insurance to extend coverage. For instance, homeowners may need to add coverage for belongings since there are limits on how much a standard policy pays out for those.

Home insurance is a more complicated affair than warranty coverage, but in both cases, taking the time to become an expert in a particular homeowner’s needs and what coverage is available to fulfill those needs is a must. The time to do this is in advance of purchase or at least before a homeowner needs to make a claim.

The extent of the benefits gained from coverage depends on smart consumer decisions. Becoming an expert allows consumers to get the maximum benefit with the least amount of trouble should the need to use a home warranty or insurance arise. It also lets homeowners sleep better at night.

Other Real Estate articles worth a look:

• Massachusetts home warranties

Negotiation With Short Sale Lenders

In working in the short sale arena for the last five plus years, I have seen lenders do just about everything when it comes to negotiating short sales with home owners. There really is no “standard” in short sales. The way one short sale file at one particular lender is handled can be totally different on the next.

One of the biggest reasons for this is that every lender has different investors that actually own the loans. There could be more than twenty five different investors that have interests in loans at one lending institution. So for example just because Bank of America may have done something for a home owner in one circumstance does not mean they would do the same thing for another home owner in the exact same circumstance.

More often than not this is because one investor may not have the same needs or requirements as another investor.

There are basically three scenarios for a seller when completing a short sale. They are a:

• Cash contribution to the lender at closing.
• Signing a promissory note to pay back some portion of the short sale debt.
• A combination of these two things.
• A complete debt removal.

The biggest consideration for most home owners completing a short sale is debt removal. My goal of course in any short sale is to get the most favorable terms and conditions for the seller which is a complete debt removal. Going back five years ago getting complete short sale debt removal was a lot easier than it is today. Many lenders today want sellers to have some kind of  “skin in the game” if they are going to grant a short sale.

In my experience the terms that most home owners get from short sale lenders is very favorable. Home owners are typically asked to bring a cash contribution or sign a note that basically amounts to pennies on the dollar compared to what they owe.

A typical scenario could be a home owner being substantially under water…..for argument sake let’s say $100,000. It would not be unusual for a lender to ask the seller to bring $5000 to the closing and letting the short sale take place. Another possibility if the seller does not have $5000 is to work out a promissory note. Maybe the lender asks for a$15,000 note to be paid back over the next five years at an attractive interest rate. As mentioned previously it could be a combination of these two options. These are just quick examples to give you an understanding of what happens in the short sale world on a daily basis.

There can be circumstances although not real often, where the lender will only accept a cash contribution in order to close. The short sale lender may have this requirement for one of the following reasons:

• The seller has money in liquid accounts.
• The seller has not been late with any mortgage payments.
• The cash contribution is a requirement of waiving the deficiency (debt removal).
• The seller has a good credit score and are current with other debt.
• The residence is an investment property.

One of the most difficult parts of going through a short sale as a seller is the long wait involved from the time you get an offer from a buyer until the time you actually begin negotiations with the lender. Sometimes there can be months in between the two. As a seller it is easy to feel in the dark and helpless. There can be times where you will be in this waiting game wondering what the lender is going to require of you and then their request finally comes. They ask you for a cash contribution that you just don’t have.

I have an outstanding short sale attorney that works on behalf of the seller with all of my short sale transactions. In a circumstance where the lender asks for a cash contribution that the seller just can’t come up with the first course of action will be to try to work out an amicable compromise with the lender/investor. This would typically be one of the following:

• Negotiate to get the cash contribution lowered to something the seller was able to bring to closing.
• See if the seller can get the funds from a family member or borrow from them.
• Try to get the lender to accept a promissory note instead.
• Ask the buyer to pay the cash contribution if lender allowed this to occur.

In the vast majority of the short sales I have been involved in we have been able to work it out so a compromise was reached and everyone got what they wanted. Should sale negotiations can be difficult at times but if you know what your doing common ground can often be reached.

What would you need to do in the rare instance where a large cash contribution was required that the owner just did not have and the lender would not budge? If all else fails what you would need to do in the scenario above is to put the home back on the market and build in a cash contribution to the lender right into the transaction.

So for example you would add a cash contribution for the lender on behalf of the seller on line 104 of the buyer’s side of the HUD settlement statement. You would also place the same contribution on line 404 of the seller’s side of the HUD as a “Cash Contribution To The Lender”. The  payoff amount would then go to the lender.

This is how short sale negotiations work with lenders. If you know what you are doing you can usually find common ground. Of course there are numerous things to look for in a short sale contract which I have covered in a number of articles I have written.

Other short sales articles worth a look:

• HAFA Short Sale
• Reasons to reject short sale offers

If you are need to short sale your home or condominium in Ashland, Bellingham, Blackstone, Douglas, Framingham, Franklin, Grafton, Holliston, Hopkinton, Hopedale, Medway, Mendon, Milford, Millbury, Millville, Natick, Northboro, Northbridge, Shrewsbury, Southboro, Sutton, Wayland, Westboro, Whitinsville, Worcester, Upton and Uxbridge MA.

I am successfully completing short sales through out the Metrowest Massachusetts and Worcester County areas. So far, knock on wood, I have a 100% success rate for short sale approval! Short sales are specialized transactions that are critical to have the right Realtor representing you. Do not make the mistake of picking an agent that does not understand how to get to the closing table on a short sale. Nationally less than 30% of all short sales close!

If you are outside of the Metrowest Massachusetts area and need to do a short sale please feel free to contact me and I would be happy to refer you to a Realtor in your location that handles short sales and knows what they are doing! I have referred short sales to other Realtors all around the country.

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About the author: The above Real Estate information on Short sale negotiations – seller cash contributions was provided by Bill Gassett, a Nationally recognized leader in his field. Bill can be reached via email at billgassett@remaxexec.com or by phone at 508-435-5356. Bill has helped people move in and out of many Metrowest towns for the last 25+ Years.

Thinking of selling your home? I have a passion for Real Estate and love to share my marketing expertise!

I service the following towns in Metrowest MA: Ashland, Bellingham, Blackstone, Douglas, Framingham, Franklin, Grafton, Holliston, Hopkinton, Hopedale, Medway, Mendon, Milford, Millbury, Millville, Natick, Northboro, Northbridge, Shrewsbury, Southboro, Sutton, Wayland, Westboro, Whitinsville, Worcester, Upton and Uxbridge MA.