August 31, 2010 18:57:15

COLORADO SPRINGS, CO, Aug 31, 2010 - Naturally, like most homeowners, you have a strong emotional connection to your home and, understandably, feel it deserves top dollar when placed on the Colorado Springs real estate market. After all, no one knows your home better than you, including all the investments you've made in it over the years. But even though all sellers want to get the most money for their homes, especially in today's challenging economic times, decisions made regarding the listing price cannot be made in haste advises Joe Clement, Broker/Owner of RE/MAX Properties, Inc., serving Colorado Springs and the Pikes Peak region.

"Listing your home at a price that is too high can cause it to languish on the market," explains Clement. "This can result in the home selling at an even lower price than would have been realized had it been priced properly from the beginning."

To avoid this scenario and generate optimal profits from the sale of your home, Clement suggests taking into consideration all of the following factors in order to establish a fair, competitive and marketable sale price:

• Square footage - Total square footage is an important consideration when establishing a home's listing price, but this is usually just a starting point for buyers. Buyers will look at square footage to narrow their selections, but will make an actual purchase decision based on many other factors.

• Location within the community - Quiet cul-de sacs, golf or water frontage, lots that offer privacy, etc. are value-adds that can justify a higher sale price over other homes in a community ... or be leveraged as an advantage against competing listings.

• Views ... or lack thereof - Whether it is a downtown skyline, the mountains, golf course or some other desirable landscape, buyers are willing to pay a premium for views and a home should be priced accordingly.

• Upgrades and features - For a home to sell quickly at the desired price in the Pikes Peak region, it must be "finished" with as many structural and interior design upgrades as possible. "Any functional or beautification enhancements to a home are key considerations in establishing a home's true value and strategic sale price," says Clement.

• Community amenities - Guard-gated communities or those with amenities such as a clubhouse, swimming pool or fitness center are elements that raise a home's price per square foot. When pricing a home without these benefits, know whether you are competing against other homes that do offer such value-adds so that you can price your home as aggressively and competitively as possible.

• Comparable sales - Don't price your home based on price per square footage of other home sales in your community six or more months ago, as these don't offer a realistic portrayal of current market conditions. Clement advises sellers to focus on prices of active listings to hone a competitive pricing strategy.

• Professional appraisal - If you need to sell your home quickly, Clement suggests listing it at or below the appraised value as buyers are educated, are shopping deals, and will recognize your fair price and be more apt to pay it with less haggling.

• Current mortgage conditions - Lenders now require higher down payments and higher credit scores, which can cash-strap buyers holding out for the best deal possible. Savvy sellers will understand the mortgage industry's impact on the buyer and will price accordingly.

"Anyone considering selling their home should work with a local (Colorado Springs, Monument, Woodland Park, etc.) professional real estate agent who can guide them through all of the above steps," says Clement. "A seasoned agent will be armed with current, local statistics and know how to sell your home at the best possible price."

On our website, www.HomesColorado.com, you will find a wide variety of highly-skilled, well-educated, professional RE/MAX broker associates.  Each broker associate brings a finely-tuned skill set to the Colorado Springs and Pikes Peak region real estate market.  Check them out, and you may just find the PERFECT listing agent for your home. 

Click Here to find an amazing RE/MAX Properties, Inc. Broker Associate near you!

March 11, 2010 15:40:23

More than a year into the housing crisis, Alex Charfen, Co-Founder and CEO of the Distressed Property Institute, is exasperated that many homeowners facing foreclosure don't attempt to modify their loan or sell their home.

"I have to do a better job getting the word out,"  Charfen said, referring to a recent Cromford Report showing that roughly 80 percent of homeowners nearing a foreclosure do not have their home on the market.

Charfen co-founded the Distressed Property Institute in January 2007 after more than a decade as a real estate agent helping distressed homeowners find solutions to their difficult situations.  The organization trains realtors on distressed property sales and offers a Certified Distressed Property Expert designation to licensed agents who complete a training course.  The training walks agents through every step of the process, including all the documents banks need.  These highly-skilled broker associates then help distressed homeowners work with lenders to approve a sale for a price less than the amount of their existing loan - known as "short sales."

Avoiding foreclosures not only helps the homeowner's credit rating, Charfen said, it also helps protect area home values.

Today, more than 14,000 agents in the United States have the CDPE Designation.

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Myth 1:  You must be behind on your mortgage to qualify for a short sale.  Lenders look for three things:  a "verifiable hardship," such as a job loss, pay cut, job transfer, divorce or serious illness; a monthly cash-flow short-fall or pending shortfall and insolvency; or lack of liquid assets that would allow you to pay down your mortgage.   Charfen said distressed homeowners often wait too long, and should consult with a qualified agent before burning through savings or trying such desperate measures as using a credit card to cover mortgage payments.

Myth 2:  Short sales rarely get approved.  Charfen has an 85 percent success rate for closing short sales.  However, they still take patience, requiring anywhere from 30 to 120 days for lender approval.

Myth 3:  Banks would rather foreclose than approve a short sale.  Charfen said banks typically lose 35 percent more on a foreclosure than a short sale.  They also avoid the hassle and liability of vacant properties if they can approve a sale before foreclosure.

Myth 4:  There's no time to negotiate a short sale.  It's always worth a try.  In one instance, a broker associate learned on a Friday that an elderly couple's home would be foreclosed on the following Monday.  With minutes to spare, she worked with the lender to postpone the foreclosure (the case is still pending).

Myth 5: It's fine to make simultaneous offers on short-sale properties.  While it may be legal, Charfen bristles at buyers making offers on short sales that are not sincere.  Multiple offers clog the system and could force sellers who think they have a solid offer into foreclosure when the offer is rescinded.

Myth 6:  A short sale is a fire sale. Not just any offer will do.  Home sellers may counter; their agents can only bring reasonable offers to the bank, which typically means a little less than market value.

Myth 7:  Anyone can help navigate a short sale.  Charfen suggests home-owners find a broker associate with special training in handling distressed properties.

Myth 8:  A short sale is not worth the effort.  For buyers, short sale properties are often in better shape than foreclosures and are priced to sell quickly.  For sellers, there is no lasting stigma for completing a short sale.

Myth 9:  Short sales are as financially damaging as foreclosures.  Unlike foreclosures, short sales are not reported on a person's credit history and don't present problems with employment or security clearances.  Home-owners who undergo a foreclosure are ineligible for a Fannie Mae-backed mortgage for five years, while a home-owner who closes a short sale is eligible for a Fannie Mae-backed mortgage after only two years.

Myth 10:  Short sale negotiations are adversarial.  Charfen still hears from buyers' agents who loathe short sales.  He once felt the same way.  "I'd been told by some you have to be heavy-handed; it's adversarial," he said.  "I can't stand high-blood-pressure conversations.  I've never been able to do that."  Charfen said successful short sales are more a matter of communication and organization - having all the paperwork in order and knowing exactly who needs what when in order to help banks approve a sale.

1 Short Sale Truth:  It can be a hassle, but it beats a foreclosure!

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By Joe Clement, Broker Owner RE/MAX Properties, Inc. Colorado Springs, CO

Joe Clement is the Broker Owner of RE/MAX Properties, Inc. with four offices in Colorado Springs and over 125 Broker Associates with the specialized designation of Certified Distressed Property Expert.