Jeff Duneske's Blog

No one needs to remind sellers that today's market is a challenging one. In fact, there are on average more than 11 months of inventory on the market at any given time.

So it is vitally important that you make sure all of your listings stand out above the others that are competing for the buyer's attention.

Here are some very basic pointers you can print out and share with home sellers to help get them headed in the right direction:

1. De-Clutter: This one is simple. De-clutter everywhere; inside and outside. If it's taking up space it is a potential candidate to be thrown out. The sellers need to make that all important mental conversion from "home to live in" to "house for sale." Personal things are a big distraction as you want the buyers to be able to visualize their own belonging in the house.

2. Repair: Buyers want everything working so don't disappoint them - dripping faucets, broken windows, leaking roofs, damaged walls and doors, etc, beg the question in the buyer's mind...What else is broken or doesn't work?

3. Lots of Light: The last thing home buyers want to see is a dark home with all of the doors and windows covered. Let the light in and open some windows to let in some fresh air. Room deodorizers leave the impression of covering something up as does a window that has the blinds drawn.

4. Clean Windows: Buyers want to know and see the view they will have from every room - don't make them look through dirty windows. If they do, the impression of a having great view is literally going "out the window."

5. Kitchen and Bathrooms: Two of the most important rooms in the house. They must be spotless and first class. Just cleaning up isn't going to be good enough - you need to "deep clean" all counters, floors, cabinets and all the fixtures in the bathrooms. In the bathrooms consider new fixtures or countertops and perhaps redoing the shower and tub enclosures. If new fixtures are not in the budget you may want to consider having them refinished. Think about having all the tile steam cleaned and make sure all grout is free from grease and dirt.

6. Odors: Absolute deal killers are cigarette or pet odors. If this is a problem - have the drapes, carpets and furniture professionally cleaned and please..."no smoking" in the house. Also, cooking odors are not a good thing. The best bet is to always for plan fresh air. Often a little lemon oil mixed with water in a spray bottle used lightly used will add just a bit of freshness without overpowering the house.

7. Paint: A fresh coat of paint on the outside or inside is an excellent way of freshening up your home. Be sure to use neutral colors and avoid accent painting. Don't try and guess what a potential buyer will like. In most cases they should use a professional painter because it's always a bigger job than most people think.

8. Yard Work: Deal with overgrown bushes, shrubs and trees. Everything in the yard needs to be trimmed, watered, manicured and "living." Remove everything lying around the yard including sports equipment, boats, trailers, toys, etc. You may also add some color by placing some annuals in planters in the back as well as in the front. Curb appeal makes that all important "first impression."

9. Furniture: The bottom line... less is best. If it's old, worn or dated, you should put it in storage. Remember that you are setting a stage and the actor needs to be the house - not their furniture.

10. Hardwood Floors: Hardwood floors can be a huge plus for buyers unless they look like a 20 year old basketball court. It may be a great investment to have them all refinished - but keep in mind that it's not a simple weekend project. Changing "lived in homes" into "houses for sale" is what it's all about.

Changing "lived in homes" into "houses for sale" is what it's all about.

Governor Granholm has signed legislation enabling home sellers to retain two principal resident exemptions for property still on the market after the seller has moved elsewhere in the state. The signing of this legislation is a huge step in aiding struggling sellers who have had homes on the market for over a year and have lost their principal residence status on that property.

House Bill 4215, now Public Act 96 of 2008 sponsored by Representative Ed Gaffney (R-Grosse Pointe Farms) enacts that the seller can retain an additional exemption for up to three years on property previously exempt as the owner’s principal residence if the following circumstances are met:

• the property is not occupied,
• the property is for sale
• the property is not leased or available for lease
• the property is not used for any business or commercial purpose

1. Gross foreclosure "FILINGS" versus actual foreclosures! (60% of "filings" do NOT results in a foreclosure!)

2. Number of "FILINGS" versus number of PROPERTIES. (There are SEVERAL "filings" just for ONE property! Whether it ever actually gets foreclosed-upon or not! They count "filings," NOT properties!)

3. They IGNORE foreclosure cancellations, redemptions, & title changes that occur INSTEAD of ACTUAL foreclosures.

I am asked that question dozens of times a week. There are three major factors that will decide how quick your home can sell.

1.) Condition - Is your home presented well. Does it have updates and upgrades? Does your home have neutral decor? Is it in a good and desirable location? Is it clean? Are there no strong odors such as cooking, smoking or pet odors?

2.) Marketing - Is your home on the multiple listing service? Are you using a real estate agent? Is it being advertised in the prime areas and vehicles that home buyers search for homes at?

3.) Price - The MOSt important factor. It is key that your home is priced well. Having an appraisal or market analysis is key in determining current market value that are no older then 3 months dated. Buyers in today's market want a bargain. Pricing your home high or above the market average price will result in two outcomes, your home will expire off the market or it will never get an offer. Price it right rom the start!

1. Prices in the neighborhood you are interested in are relatively stable. Either they are holding their own or increasing, or the pace of decline is slowing significantly. If you have to move and don't like apartments, the small penalty you pay for missing the bottom may not mean much.

2. You plan to stay in the home for more than five years. If you can stick it out that long before selling, economists say you’ll probably ride out any downturn and come out ahead on price.

3. Your rent rivals a mortgage payment. If you can afford to buy, it can give you one bonus that renting can't: the mortgage-interest deduction on your taxes.

4. You've found the right house in the right area for you. The schools are great. You love the area and know it would be hard to find another house like the one you have your eye on. In a better market, you would most likely have much more competition for that home.

5. You've built equity in your house and are moving to a place where homes are cheaper. In your new market, your money will go a lot further.

The much needed and welcome economic stimulus package is now in the hands of the U.S. Senate. But the Senate must include new loan limits on FHA and Fannie Mae and Freddie Mac loans. America's housing market needs this help.

There is still much confusion in the market about Short Sales and the recent bill, H.R. 3648 the President signed into law, The Mortgage Forgiveness Debt Relief Act of 2007 on December 20, 2007.

This is the law that retroactivleyl back to January 1, 2007 eliminates an IRS tax liability for forgiven debt relating to mortgages setteled ‘short'.

Prior to the signing of the bill by President Bush, negotiating with lenders NOT to report the forgiven debt to the IRS was always one of the strongest benefits to pursuing a short sale.  Now thqt the governemnt has waved it's majic wand...people want to know more about why they should consider selling their home as a short sale, rather than letting it go to foreclosure. (Of course you need to check with your own tax professional to see how this applies to you.)

Good Question - lets look at the services I strive to provide a homeowner that is either behind on their mortgage or will be as the payments continue to ecsulate.

Perhaps the strongest motiovation today to complete a succesful negotiation with your lender todday is to avoid a defiicinecy balance.  Although we have not yet seen many lenders pursuing the deficinecy they are entitile to if cash was taken out of a home in a refinance, I have a very strong suspecison those days are not far off.

I know that deficiency balances get bundeled and sold for pennies on the dollar and at some point there will be investors buying these pools of bad loans.  These investors will be relentless at pursuing every legal remedy available to collect these debts.

By succesfully negotiating a short sale now, it is possible for me to have the bank wave their right to pursue a deficieny balance.  This means they will not sue you nor assign the right to anyone else.  They are voluntarily agreeing to the decision to accept less than the balance due.

Damage to the Homeowners Credit can be reduced.  By the time a Short Sale is initiated, the Good Credit Train has already left the station.  Now we have to work at minimizing the impact of the negative credit.  After a bankruptcy, about the worst thing that yo can have reported against your credit is a foreclosure.

The negotiation process in a short sale can be very complex.  Asking for the mortgage lender to report the account as Paid in Full typically will not happen.  However, there is a status, Paid as Agreed (or sometihng similar) that can usually be succesfully negotiatied with the completion of a short sale for your property.

Paid as Agreed will let other creditiors know that you worked out an acceptable plan and that you made it easy on the creditor and did not make your dificult situation even worse.

A common complaint Homeowners have when they are losing their home to foreclosure is the Constant Harassment the Bank Collection Departments pursue.  Now, you must realize that every bank and mortgage lender is different and unique unto themselves, so there is no set policy that I can recite.  However, most banks will lighten up the collection activities once they know you are working through the process.

If you ignore the banks and just allow the entire foreclosure process to continue you can be assured that you will receive some of the most hardcore collection efforts on behalf of your mortgage bank in an attempt to collect any amount of money they can from you.  Their hardball tactics may include a barrage of auto-dialer "important message" phone calls; they will contact every reference on your original credit application - including your employer, family and friends; not to mention that they just may show up at your front door at the most awkward of moments.

The bottom line is the more trouble the bank has to go through to collect their money, the more aggressive they will be with you.  When I am negotiating a short sale for my clients, I always ask the homeowner to defer all collection calls to my office phone.

Time is of the essence.  Once you fall behind on your mortgage, there is stress coming in all directions.  Most people just want to move on with their lives and put this chapter behind them.

By cooperating with the bank the short sale process can typically shave up to 6 months off of the process.  If you can get me the documents I need for my short sale package to the bank and everyone is cooperative there is so much less stress and the homeowner can move on in dignity.

So if you are a Homeowner . . .or any where else for that matter, and you can no longer afford your home...or perhaps you have already fallen behind in your mortgage, then you need to know that the worst thing you can do is to do nothing.

I am not saying that a short sale is your only option, but it is one that can work if handled properly and professionally.

REALTORS® are real estate professionals who are experts in marketing and negotiation. REALTORS® can help a seller set a realistic price and ensure the proper paperwork and various disclosures and inspections are handled correctly. REALTORS® know best how to prepare a home and maximize value, provide broader exposure to the market and are more likely to generate multiple bids than a seller on their own.

In addition, REALTORS® are experts in attracting qualified buyers. A professional can show a home more objectively than can a seller who may be emotionally attached to the home, and who might become unnerved by prospective buyers’ critical comments. The real estate pro also checks the financial capability and bona fides of buyers before allowing them onto a seller’s property.

Slower markets can offer rich opportunities for investors: real estate sellers are more open to negotiate and lower home prices — and combined with low interest rates — can help you get properties at bargain levels. Yet, some buyers are reluctant.

The market may not look perfect. This is why prices haven’t taken off yet — and why you want to get in before they do! Here are some tips:

1. Timing is everything. Enter the market cycle early. When it’s quiet, when the media isn’t saying ‘record levels of appreciation,’ that’s when you want to jump in. As billionaire oilman J. Paul Getty once said: “Buy when everyone else is selling and hold until everyone else is buying.”

2. Get financially ready. Before you buy, consider holding costs, tax implications, and cash flow potential. Many things can go wrong when buying investment properties — such as a vacant rental or a property that won’t sell. Have cash reserves (get a partner if you don’t have any) and you’ll be prepared to ride out any market cycle. Identify your risk level and what you want: For example, an investor who wants to turn a quick profit with low holding costs would want to sell their new-home property before construction is complete. On the other hand, an investor looking for a bigger return with less capital gains tax would want to hold the property until after construction is complete and keep it as a rental property for at least one year.

3. Buy and hold. In a distressed market, this can be a smart move. A buy-and-hold strategy can help give the property an opportunity to appreciate over time. Buy at the right price, though. Compare the home’s price to what homes are selling for over a reasonable time period in that community and what you expect is the lowest price the market will reach. Get in at that price. Consider lease option investments so you can rent the property to cover payments, having the property practically pay for itself each month. Also, continue to pay down the mortgage and eventually you may even have the home paid off — an ideal position for an investor!

• Trim property taxes. If a house has lost value, have it reappraised by the municipal assessor. Consider petitioning — or even suing — to get back taxes overpaid in the last few months.

• Deduct a home office. Some people avoid the home office deduction because it requires deducting depreciation, but if the property has lost value, this isn’t an issue.

• Sale-leaseback with a relative. If you're convinced your property is due for a big price correction and you have equity in the home, then sell now. For example, if you have a $1 million home that has been appraised at $1.8 million, you can sell it and take home $500,000 of the $800,000 gain tax free — due to an exemption on profits from the sale of personal residences. Sell the property to a trusted friend or wealthy relative and then become a tenant and pay the buyer rent at market rates — a much more attractive amount than Treasury bonds are paying now. When the housing market corrects, buy the property back.

• Invest in housing futures. The Chicago Mercantile Exchange sells investment instruments that trade based on house price indexes for each of the 10 largest U.S. cities. You can sell futures, buy puts, or sell calls on this market to hedge losses in the value of your home.