Real Estate Market

I am often asked "what exactly is a Short Sale"?  

The simple and direct answer is:  The homeowner owes more than the house is worth. 

The longer answer is:  The homeowner usually has one or two mortgages against the property and they have fallen behind on one or both payments to the bank.  Instead of foreclosure which usually means being removed from their home and ruining their credit for 7-10 years, the banks are now encouraging homeowners to do a Short Sale.  The homeowner can sell the house to a buyer for less than the amount owed on the mortgage(s),  but the bank is the one who has to ultimately agree to take less (short) than the current balance owed. The bank does not want your home...they want their money.  They are not in the business of home ownership because as soon as they foreclose, they incur the taxes, insurance, utilities, upkeep, homeowners association dues, etc.  Plus it costs substantially more for them to foreclose because of legal fees.  A Short Sale will usually show up on the homeowner's credit report with the words "Paid as Agreed" next to the bank's name.  

A buyer will benefit in that oftentimes they can pick up a house for 10-20% off the current market value because it is considered a "distressed situation".  Keep in mind that if a seller hasn't made payments for 6 months, its a good bet they haven't kept up with the maintenance long before they stopped making payments.  Therefore, be prepared to put some of your own sweat equity into the home after closing. 

The house pictured to the right at 318 Hays Hills in Fenton is an approved Short Sale.  This is 5100 square feet in Fenton with Lindbergh Schools (lower taxes than Rockwood).  The house does need repairs, new flooring and paint throughout.   

If you, or someone you know, is faced with the possibility of losing their house,  call me.  I can talk to them about their options including finding an immediate cash buyer for their home so they don't have to put it on the market.  I have a great team of negotiators, which includes 2 former bank underwriters to bring the Short Sale to a successful ending.   

This fall's colors weren't as spectacular as years past, but the weather has been beautiful.  Time to use these gorgeous days to do some exterior maintenance around your home so you don't find yourself with a wet basement, frozen pipes or clogged gutters come winter.

• Furnace -- Have it cleaned and checked...around $69.  Remember to continue replacing the filter every 30-90 days depending on whether you have pets.
• Gutters -- very important to keep these cleaned out so the water flows away from your foundation, not on it.  Many fireman love to do this on the side---remember, they are used to going up tall ladders!
• Caulk -- Do you remember which room felt drafty to you last year?  (I sure do).  Time to caulk around windows, doors, siding and masonry. 
• Fireplace -- if you have a full-masonry fireplace (usually found in homes older than 40 years), when is the last time you had it cleaned and checked?  Flue fires are a serious matter. 
• Carbon Monoxide Detectors - Check or install yours

CALL ME IF YOU WOULD LIKE A REFERRAL TO ANY CONTRACTORS

If you have $1,000 extra and you would like to invest it back into your home, here are some of the great ways you can enhance your home:

• Change the lighting fixtures throughout the house - remove anything that is brass and replace with brushed nickel, bronze or black.  Same with those "hollywood lights" in the bathrooms with the big round bulbs! Gotta go!
• Replace your kitchen faucet with a modern sleek all-in-one with the sprayer in the head
• A fresh coat of paint on the front door and/or a new storm door will make a great first impression.  Are the numbers on your house fading?  The shutters need a fresh coat of paint against the brick facade?
• Paint your oak cabinets!  Yes, paint.  Oak is no longer popular as a choice for cabinetry.  There are plenty of professionals who can do this and it is more reasonable, and more beautiful, than you can even imagine!  
• Spruce up your guest bath on the first floor.  You'll be amazed at how you can update a half bathroom for less than $1,000.  A new vanity, top and faucet ...some new towels and new lighting...voila!  A pretty place to show off this holiday season.