Selling a home in San Diego for maximum net to the Seller -- part 1

We are going to begin a series of posts on how to sell a home with equity for max net to the seller.
(note in a short sale you are not concerned about get the highest price, you are concerned about finding a solid buyer with an offer the lender will accept... for most people.... some sellers do have to consider the tax consequences..

We will be looking are
1. Pricing
2. Marketing
3. Negotiating
4. Timing
5. Quality of Representation

and a few other categories.

Today we are going to begin a series on photography.

We will be linking to a few articles good articles on the reasons for photography, techniques and equipment. 
(I have gotten the photography bug... in moderation) 

Please note there will be some bias in all these articles as obviously professional photographers have a reason to promote professional photography.  As I have a reason to promote having a lawyer on short short sale team so you have you best shot at preserving your assets and getting your short sale closed. 




Successful Combination of Photography and Real Estate

Point2 (point2.com) conducted a study monitoring listings over a 30-day period which clearly showed that properties which feature just one photo generated approximately five views and 1.37 leads, while listings displaying 21 or more images received over 77 views and close to 11 leads. Clearly, the listings that added 20+ photos generated nearly 10 times the number of leads and over 15 times the number of views.

Another study relating to the number of photos a listing posts compares photos to the number of Days on Market (DOM). The findings show that listings with more photos sold faster. This is the shake down on the photos to Days on Market (average) analysis.

- 1 photo = 70 DOM
- 6 photos = 40 DOM
- 16-19 photos = 36 DOM
- 20 photos max – 32 DOM

And listings with fewer photos sold for less. The Closed NET Price as a percentage of the Original Price also showed a direct correlation. (These findings are based on 2006 numbers and are again estimates.)

- 1 Photo = 91.2% of Original Price
- 6 or more = 95% of Original Price

According to these findings, a $600,000 home, sporting only one photo, could sell for as much as 3.8% LESS or a loss of over $22,000, just because there was only one photo accompanying the listing. More amazing is the fact that only 12% of agents posted the maximum 20 photos.

HAFA Govt Scam, so far, but could get better

Although we have closed 2 HAFA short sales, the program is torture for any anyone who cares about their time, their schedule, their sellers or their buyers. 

Now we have proof see the article below.  There have only been 661 closed HAFA short sales in the country.

My speculation is this...
The govt has been complicit with the FED and the banks... who are the shareholders in the FED.
They new if all these upside down homeowers let their properties go at once real estate prices would get so low even the found could not bail out their insolvent banker friends. 

So they created these loan mod and short sale programs to slow down the supply of real estate hitting the market. 

1. Create big funnel
2. Only let the most persistent and most organized out the other end with a loan mod or short sale. 

We know about 5% of applicants actually got real loan modifications. 
And, we know on average Realtors only close 25% of their short sales. 
Now we know that all those Realtors claiming to be HAFA short sale experts, have probably not even closed a HAFA short sale. 
 

The moral of the story is.  If you are upside down... make sure you work with someone who can prove they have the systems in place to short sale approvals on terms you find acceptable.  There are many so self proclaimed short sale and HAFA experts... just ask them to show you HAFA approvals and closings. 

Don't fall for the government or real estate industry "expert" designations.  Only work with people who document results.

And most importantly have an asset protection plan in place before you begin your loan workout.  You must have a backup plan because you plan A might not work.   


HAMP « HousingWire

The Treasury Department took action in December eliminating some rules it said have held back short sales through the Home Affordable Foreclosure Alternatives program.

HAFA was launched in April 2010 to provide an incentive to servicers and investors for pursuing short sales and deeds-in-lieu of foreclosure. The program was designed for homeowners who fell out of the Treasury's Home Affordable Modification Program and was touted as a new standard for short sales.

But both HAFA and HAMP have struggled. The Treasury has spent only $4.3 million through HAFA, inducing roughly 661 short sales since the program launched, according to the Congressional Oversight Panel, the Troubled Asset Relief Program watchdog.

Very few principle reductions have been offered. But this article makes lien stripping seem to easy

Richard Gaudreau: How to Get Rid of a Second Mortgage Without a Loan Modification

Trying to revive HAMP, the administration in December announced new regulations designed to push banks into offering more reductions in principal than they have in the past. Fannie Mae and Freddie Mac immediately proclaimed, however, that they remain opposed to making this option available to struggling homeowners. Protecting the interests of the banking industry over the consumer, the Federal Reserve also blocked new foreclosure regulations that would have reined in foreclosure abuses. Although the economic collapse of 2008 has caused the tide to rush in on everyone, there has been no bailout for the "little guy." Left to fend for themselves, increasing numbers of homeowners are turning to a little-known provision in the federal bankruptcy law, which permits the discharge of a second or even third mortgage in its entirety in a Chapter 13 bankruptcy. The American Bankruptcy Institute recently reported that Chapter 13 bankruptcies have risen by 9 percent in 2010 compared to last year.

How long do you have to wait to get a new loan after a Short Sale or foreclosure

https://www.efanniemae.com/sf/guides/ssg/annltrs/pdf/2008/0816.pdf

In 2008 fannie said you may have to wait twice as long and you still might have to prove a hardship.
Before you Walk Away from your house you should compare short sale vs loan mod.

1. Will you owe for the some or all of the remaining loan balance
2. Credit effects.
3. Tax effects.  This is going to become an issue again as short sales and foreclosures may start bumping up against the expirations of the Mortgage debt forgiveness acts in CA and Feds.