I just did this. It only takes 5 minutes. Please do the same and send it to whoever you think might be impacted. I sent it to about 50 friends and business associates locally and throughout the country. Now is the time to press forward.   Wouldn't it be great if this was passed??? Wouldn't it be great if we helped? Please take a few minutes right now. Thanks.   How to Fix Housing Now!!   The National Assn of Homebuilders has representatives in Washington DC today pressing for passage of a bill, "Fix Housing First."  I'm behind it and encourage you to get behind it as well.  In a nutshell, the two key provisions are:   (1)  The federal government would offer a tax credit of between $10,000 and $22,000 (depending on locale) to anyone closing on the purchase of a home, new or resale, by December 31, 2009.  The credit would not have to be repaid, which is a major upgrade from a tax credit passed last summer; and   (2)  The government would provide a federally-subsidized 30-year fixed rate mortgage of 2.99 for all home purchases, new and resale, closing by June 30, 2009.  After that, the rate would be 3.99 for purchases closing by December 31, 2009.   Visit http://www.FixHousingFirst.com for full details and a direct link to your Senator and Representative.   Let's get housing fixed now!   Thanks--we appreciate you!

Get off the Fence! Many agents are experiencing the “I think I’ll wait a little longer” syndrome when working with Buyers.More than ever, it is your job to be prepared with the reasons why a Buyer should “get off the fence” and purchase a home in today’s market.Here are a couple of helpful selling points: A. Today’s FHA loans offer attractive qualifying terms that are scheduled to tighten up in 2009.Right now, FHA loan limits in our area have been raised over $100,000 to a maximum loan limit of $428,750, dramatically increasing the buying power of most buyers using the program. In addition, FHA is one of the only programs that still allows for approvals that are not subject to a credit scoring model.This is also set to change in 2009, tightening FHA qualification guidelines even further. Today’s Buyers get the benefit of the current 3% down payment and MIP in the amount of 2.25% of the loan amount. Both are set to increase in the near future, requiring more money out of pocket and/or a higher monthly payment for the same purchase made now vs. later.(for your particular area, https://entp.hud.gov/idapp/html/hicostlook.cfm) B. The $7500 tax credit won’t last for long.Yes, the tax credit comes in the form of a 0% interest loan that must be paid back at approximately $500 per year.However, this should be more than counteracted by the taxable mortgage interest write off on a new home...something a Buyer wouldn’t have had if they hadn’t purchased! C.The Metropolitan closed sales report recently posted by realtor.org shows that the average sales price of a single family property in the Hampton Roads marketplace is down by 4.4% over 1 year ago.However, it is up by 1% over the last quarter of this year!The average condominium is actually slightly up in sales price from the same time last year.Even if today’s buyers do experience a 4-5% decrease (as often reported by the media) in prices over the next year, once again, the tax savings from their mortgage interestwrite off should help to counteract, possibly even exceed, the benefit of that price reduction! (For your area http://www.realtor.org/wps/wcm/connect/874598004ad3d9c59b84fb1b407934f1/research__MSAPrice081408.pdf?MOD=AJPERES&CACHEID=874598004ad3d9c59b84fb1b407934f1) D. Who has a more vested interest in the future value of homes in a neighborhood than the next buyer for that neighborhood? When a buyer considers the logic of this statement, they may be more apt take a negotiating position that focuses on seller concessions such as closing cost assistance, appliances, pay off of debt, etc., vs a substantial price reduction.Taking currents in many markets into consideration, what is the true value of waiting? If the next buyer in a neighborhood sees a pattern of declining value, what do you think their offer will be?Unless someone stops the cycle, it won’t matter when you buy. You house is bound to be worth less once the next home sells! Help your buyer understand that is BENEFITS THEM to STOP THE INSANITY! E. The loss in buying power caused by a 1% increase in interest rates is normally much greater than the gain a buyer would experience by waiting for further reductions in price.It wouldn’t take much for interest rates, currently in the high 5%’s, to move into the mid to high 6% range.That 1% increase in interest rates, based on a $250,000 sales price range, would reduce a Buyer’s purchasing power by approximately $25,000 in order to maintain the same monthly payment.Again, this is MUCH greater than any price reductions we have seen in most price ranges during similar periods of time   F. Seller funded down payment programs have already disappeared as of October 2008. Though legislation has been introduced to revisit the use of these programs, there is no sign that Congress is willing to reconsider their position.Today’s buyers now have one less program at their disposal, one that could have been the difference between the option of buying or not buying .How many more “Pro-Buyer” programs might disappear while Buyer’s continue to wait on the sidelines? G. When compared to the same time frame in ’06 and ’07, listing inventory YTD on the Southside has dropped for the last 5 months in a row. Since sales have not also proportionately increased, this can be interpreted as a sign that Sellers are more apt to take their properties off the market than accept very low, and often unreasonable, offers.Though “stealing” a piece of property may happen from time to time, statistics tend to indicated that this is the exception and not the rule.Should listing inventory continue to drop, basic supply and demand principles will kick in sooner or later, which could weaken the strength of the negotiating position Buyer’s now have H.The National Association of Home Builders issues a Builder Confidence Index, currently at 14, the lowest ratings since the Index began.  To put this into perspective, a rating below 50 indicates that those polled in the building industry believe the conditions for building and selling residential homes is poor.  This has translated into one of the best markets in many years for a good buy on a new home.  And, if you’re currently working with a Buyer who is looking at a new home, subject to selling their present home, waiting just doesn’t make sense. What better way to make up for the concessions they may have to make to sell their home than to gain it back (and more) on their new home purchase.  This is especially true if they are moving up to a larger or more expensive property. Attractive interest rates are an added bonus!     

Here is the latest, looks like inventory is getting to where we need it to be.

 

YOUR MONEY MATTERS

			Yahoo! Buzz DIGG THIS MY SPACE GET RSS FEEDS MSN Money Homepage MSN Money Investing Start a FREE trial of the Online Journal Subscribe to The Print Journal Free US Quotes: Symbol Name Get FREE E-Mail by topic Check Out our Mobile & Wireless Services DIGEST OF EARNINGS Details of the latest corporate earnings reported for FREE. advertisement TODAY'S MOST POPULAR 1. Opinion: The $4 Billion Senator 2. Markets Remain Volatile; Oil Drops 3. SEC Moves to Curb Short Selling 4. Washington Aims to Reassure 5. Mortgage Insurers Raise Bar MORE PEOPLE WHO READ THIS... Also read these stories: People who like this also like... Buy Now, Don't Regret Later17937595 Sometimes the purchases that slipped away make all the difference. So for just a few minut... Cut It Out17937593 When it comes to cutting costs, consumers always look at the big stuff. But it's often the... When to Think About Tomorrow17937592 Mapping your financial future can seem overwhelming. But at certain times, it's crucial to... Retailer's Collapse Hits Mall Owners17939862 Steve & Barry's, regarded just weeks ago as one of America's fastest-growing retailers, no... Mortgage Insurers Raise Bar17945772 Mortgage insurers are dramatically tightening their standards, further squeezing potential... NEW! Are you on Facebook? See what content on this site is popular with your friends! Learn more » Your Facebook Friends Are Reading A Web Page of One's Own17937649 Do you have a personal Web page? If you don't, you will soon enough -- it'll be how people... Seen by 3 friends | 2 groups Popular with people in the groups: Day Traders Investment Banking | Washington D.C. What's This? [x] close You're seeing a preview of SeenThis? — a Facebook application that helps you discover the latest news, videos and more by showing you what's popular with your friends — both on Facebook, and on sites like this one. Have a Facebook account? Get recommendations for content popular with your friends by adding the SeenThis? app. Once you've added it, look for the "Your Facebook Friends Are Reading" section in the sidebar with your name and photo above it (only you can see your photo.) Click to add SeenThis? now » About SeenThis? | Privacy | Feedback Personalized Home Page Setup Put headlines on your homepage about the companies, industries and topics that interest you most.

Personal Property
How to Sell a House, When You Have to Sell It Now

So you say you're selling your house?

Hey, it could be worse. You could be selling a Hummer.

If you've been waiting for a good offer to come through, this probably isn't exactly big news to you: This is the worst home-selling market since Herbert Hoover was president. In much of the country, prices are already way down and probably heading even further south. Houses are sitting on the market for months longer than sellers expected.

Need to sell your house? Real-estate agents in Greenwich and Wilton, Conn., offer tips to Paul Lin of The Wall Street Journal Digital Network on how to sell a house in a slowing market.

And don't think this is just a momentary lull, a short slowdown before the market recovers and then takes off again. What you see today is the market you have, for now and, quite possibly, for a long time to come.

"At best, I think we're a year away from the bottom," says Sally Bodmer, who has sold Tampa-area real estate for 31 years and has never seen a worse selling climate. She operates mainly in the newer suburbs on the far eastern edge of the metropolitan area. It was a super-hot area in 2005, when developers couldn't build houses fast enough. "Now," she says, "you can't give them away."

To be sure, things are not awful everywhere. Prices in metropolitan areas bypassed by the Big Bubble -- places such as Charlotte, N.C., or Rochester, N.Y. -- have held relatively firm or risen modestly through the Big Bust. And in some of the worst markets, elite properties and houses in the best neighborhoods may still buck the trends.

But even the perennial playgrounds of the upper crust aren't immune. According to Zillow, a real-estate Web site, prices in Palm Beach, Fla., are down about 10% from last year. Prices are down 13% in Santa Barbara, Calif.

So what's a home seller to do? What does it take to sell a house today?

If your job or life circumstances leave you no alternative other than to sell in this market, you must be prepared to go well beyond the usual feints and gimmicks if you want to get potential buyers in the front door and, ultimately, to the closing table. By all means, feng shui the living room, bury a statue of St. Joseph in the front yard and bake brownies before the open house.

But if you really want to sell the place, you need to think and act like a salesperson. Most important, you must separate your emotional attachment to your family home from your financial interest in your family's largest asset. Selling a house is business, and you must approach the sale in a businesslike manner.

Here are seven points to keep in mind:

1. DON'T WAIT AROUND.

Even in the better housing areas, it's taking a long time to sell houses; and in the hardest-hit metro areas, inventories of unsold homes are stretching well past 180 days.

So, don't try to sit out the market. That's what hundreds of other timid sellers are doing, each of them hoping -- somehow, some way -- that hanging on the sidelines will improve prices and, ultimately improve his or her chances for selling success. It won't. Not if you expect to sell anytime soon. If you want your place sold, the best way to make sure that happens is to put it up for sale.

Obviously, you should take advantage of your local market cycles -- early spring is usually better for selling in much of the country -- but otherwise don't try timing the market. You won't have any better luck than a stock trader who's always holding out for the market highs or lows.

2. FIX IT UP AND CLEAN IT UP.

Buyers are taking your house out on a date. It has to make a good impression.

Don't spend a lot of money -- absolutely no big-ticket renovations -- but do see that everything is in good repair. And give the place a new paint job and a general sprucing up. (Caution: This won't necessarily give you any pricing advantage over less fixed-up places, but it will attract buyers and keep them interested.)

As you get closer to the date that the house actually goes up for sale, start moving out by decluttering the place. No buyer wants to see a house filled to the rafters with other people's things. They want to imagine their stuff filling the place. "Stage" the place with only enough furniture to make it look livable; put the rest in storage.

3. PRICE IT CHEAPLY.

Don't fight the market by trying to price your house at bubble-era levels or by factoring in all those improvements you made. It won't fly.

Set a realistic, salable price on day one. Don't let the house hang around on the market as you gradually lower the price. Forget what you think the house should be worth or what it was worth three years ago. That's not what it's worth today.

Smart buyers will be looking for bargains. So you must set your price below comparable nearby properties. Look at the asking prices of neighboring houses, and set your price to beat them. If prices in your area are generally down 20% from where they were at the bubble peak in 2005, then price your house 25% to 30% below its peak bubble value. Your area down 40%? Be prepared to take just half of what the house was worth three years ago. Yes, it's painful. But if you want to sell, you don't have much choice.

And remember: In much of the country, renting is still a better deal right now than buying. As you try to settle on a price, look at rents on comparable properties. Buyers are not likely to be counting on huge price appreciation, as they did during the bubble, so they may be less willing to take on the higher monthly costs of home buying and owning. You must set a price that makes someone's prospective mortgage and home-owning costs look like a better deal than a month's rent.

4. HIRE A TOP REAL-ESTATE AGENT.

Get the best, most aggressive selling (listing) agent you can find.

When everything was selling before it even hit the market, of course, you didn't need the best. You just needed the cheapest. But not these days.

Fortunately, in this market, real-estate brokers are even more anxious than you. They're eager to get whatever work they can, so don't rely on your cousin with the real-estate license or your best friend's wife.

Ask, instead, for the local real-estate office's top salesperson. All offices have one or two sellers who greatly outperform their colleagues. That's who you want.

Interview various agents and insist that they present you with a well-conceived marketing plan that goes way beyond the usual Internet page, one or two open houses and a yard sign. (Think about using a professional photographer for multiple shots on the primary Web listing, your house as the featured "home of the week" in the local newspaper, a decorating segment on a morning chat show, a stop on the local garden club's spring tour.)

Sellers of higher-end properties should be able to negotiate a lower commission percentage, but this is no time to quibble over a couple of percentage points. Also, offer the agent a big bonus if he or she sells the house in 30 days or at your asking price. Offer other agents bonuses if they bring in the ultimate buyer.

5. PROMOTE. PROMOTE. PROMOTE.

Don't rely on the agent to do all the work. The agent should pay the usual marketing costs, but you should be prepared to pony up for extras, especially if you insist on more expensive or untraditional promotions.

You want the house listed regularly in local newspaper classifieds and, if it's a special, high-end property in a desirable location, in national publications, too.

Make sure your house is on the leading real-estate Web sites; Trulia, Zillow, Cyberhomes, Eppraisal and Realtor.com are some of the top ones.

Beyond that, get really creative. Advertise in corporate newsletters and intranet listings. Check in with local relocation firms that help transferring corporate executives find new homes. List the house on eBay. Put it on Craigslist. Put it in your church bulletin.

Trophy house in an upscale neighborhood? Hire a string quartet for the open house. Something a bit more midmarket in a family-friendly subdivision? Put a clown on the corner handing out brochures.

6. PLAY THE BANKER.

As bad as things are, there's one big factor in your favor: the tight credit market. If you have no mortgage you have to pay off, your strongest selling point might be your ability to finance all or a substantial part of a buyer's purchase.

You're a lot more flexible than a bank that has the Federal Reserve looking over its shoulders, so you might even be able to charge a higher interest rate than a commercial lender as well as command a higher sale price. (You'll need a real-estate lawyer to make sure everything is done to protect you and an accountant to set up a payment system. Peer-to-peer lenders such as virginmoneyus.com have systems to handle mortgage payments.)

Worst case? Your borrower defaults and you take the property back. And sell it again.

7. TAKE THE OFFER.

If any qualified buyer comes in with a reasonable offer, be prepared to accept it.

You don't want to lose the deal by digging in your heels over a few dollars. Every real-estate office keeps records that show the percentage difference between asking and selling prices, so it's easy to figure what's an appropriate offer and what's not.

Negotiate, of course, but recognize that the buyer has a lot more clout than you do. Your house, as wonderful as you think it is, is worth only as much as someone is willing to pay for it.

And that, unfortunately, will probably be a lot less than you think.