Sometimes when people hear we do Short Sales they look at the situation and decide it is a free ride for a homeowner that has just decided not to pay their mortgage.  We see it as our obligation as does every agent with short sales as a part of their practice to educate people....to help them understand that it is likely that someone they know may be in the position of not being able to pay their mortgage and that this is a solution to avoid foreclosure. There is a decision to do a short sale...not one to be taken lightly....not one made because the sellers just don't "want" to pay a mortgage.

       Plan Ahead...Maybe Not

-  Could the couple who both lost their jobs and he was stricken with cancer have planned ahead for more months to survive with no jobs in sight ?

- Could the couple who built the dream house know that before it was fully finished, a divorce would be part of their future and the home needed two incomes to support the payment ?

- Could the successfully self employed _______(name the profession) have a crystal ball to realize his company could not survive the downturn in the economy ?

- Did the newly widowed Mom realize how long the family savings would not last ?

- Did the heirs for the estate know that the deceased had two mortgages and now there was no income to support them ?

- Who could forecast health situations that disable the breadwinner who now has to rely on a lesser paying job or no job at all with a family to support ?

    Short sales are not anyone's first and favorite...they are a viable alternative when the situation of the homeowner warrants that decision....it is not an easy choice...it is a painful decision and sometimes the one that makes the most sense. Talk with a realtor with successful short sale experience, discuss the situation with allied professionals in accounting and law. Gather the information you need to build the strength to make a sound decision for your financial future. Make sure that the decision explores alternatives where alternatives are available. The longer you wait, the fewer the choices....make today the day you decide to find the solution for "happily ever after."

   We were talking to agents about how excited we are to be at Keller Williams...what the brokerage has to offer...what it has meant to us. "We can hear it in your voice !"  they said....we can't help it....we don't want to...this business model...the oportunity....just can't stay awake long enough to take in every class there is...and it's like going to the candy store of higher real estate education...hard to choose what to do first ! 

It you are an agent in southeastern Wisconsin and want to experience the sweet reward of the very best technology, the easiest access to cutting edge education....a business model that this area has not seen...you will want to drop a confidential e-mail to : RecruitKWBrookfield@gmail.com.

    How did we come to know Keller Williams...? We read, watched, met, blogged "with" got comments from...made comments to  agents on Active Rain....Turn your umbrella upside down and you will be surprised at all you can catch....education, new friends....and maybe even...a new home !

Great advice...let you r eyeballs do the walking...talk to a realtor who knows...one who works every day in every way to help you with the best decision you can make for your real estate investment.

Just one MORE example of what Keller Williams offers agents....Agent Centered....Keller Who...Keller WOW !

  The whispers throughout the greater Milwaukee-Waukesha-Washington-Ozaukee county area are getting louder...the excitement is buildng.  Keller Williams  is an exciting, dynamic, technologicially, educationally, agent driven....prosperous and caring place for an agent who values the level of service they can bring to their clients and customers.  It is not that there are not good agents elsewhere....we have had the very great pleasure of working with many throughout the four county area.  It is that the resources that are available to Keller agents are not...and cannot be available to agents at other companies in this market.

     An active marketing campaign in our area has agents from many different brokerages deciding to see what Keller Williams has to offer them...no obligation requireed...just an open mind and a willingess to listen.  The Madison Keller Williams offices have seen dramatic growth in the last year...while some brokers were consolidating resources and closing offices...the Madison office increased market share 293.7% over the previous year ! How cool is that !

     If you are looking to be a part of an agency on the mooove....offering state of the art technology...have an open mind and want to grow your business....we are happy to talk with you very confidentially of course.  Feel free to e-mail:

             recruitkwbrookfield@gmail.com          

        We will be happy to share the excitement...the knowledge...the prosperity....you can't be first...you could be next....find out what other agents have learend throughout the country and has made Keller Williams the fastest growing brokerage in the country...and the 3rd largest.

The echo is everywhere....price to sell, not to sit...Here is another reminder from another Keller Williams agent...Pricing it right the first time gets a home sold for more money than hoping for a "shift" to a higher number...Thank You Ruthmarie !

   We got a call from an agent the other day...she has been licensed almost a decade and has a geographic farm that is very loyal to her and she to them. She provides the kind of service "above and beyond" that creates a loyal following and a good real estate practice.

    Her voice had an embarrassed tone to it....she had "tried to do a short sale"  She had done what she believed was the best she could do...and we are sure it was just that...the best she could do without any experience or training.  She asked other people in her office...none have had training...and only a few with any experience...and they had "advised" her....But she defended....after all it was "Name that Lender" so of course, they were tougher than any other lender and how could she be expected to  be successful.

   That is exactly the point...without training and/or guidance from successfully experienced instuctors and agents..no one would expect an agent to be successful in closing a short sale.

   As other bloggers have said...and comments have been made....short sales are not for the faint of heart, short of patience, lack of education, shy on experience....Know what you don't know.

   Could you sleep knowing that you may not have been the best agent for this situation ?  Sellers...if you find yourself with a hardship that does not make it possible to pay your mortgage....look carefully for an agent with successful short sale experience...Ask for proof...call their references...learn what kind of experience qualifies them to list...and more importantly close, your short sale.

   Being a good agent...a high volume agent...may not have anything to do with being a successful short sale agent.  Agents choose areas of concentration and often what they like to do they do well. Sellers...choose carefully...the future of your credit lies in part,  in the hands of the listing agent.  Agents...Short sales are not for everyone..if you learn when you take a listing.,,,,which is when you should learn...that the mortgage balance will exceed the proceeds of the sale...and you have not had the training or experience with short sales. There is a maze out there in lender land...regardless of who the lender or lenders are...the neavigation can be a challenge. Earn your commission by referring it an experienced short sale agent...and sleep well knowing you have done the best you can do for a distressed homeowner.

  When we took our CDPE course quite a while ago... one of the agents in the class asked the instructor what she should do when her other customers and clients saw that her listings were "short sales" and may be priced less or reflected a practice with homes not of the "price standard" she had positioned herself in the market.

    The instructor bit his lip, you could see the calming mental  count to 10 going thru this head before he gave his response.

    "If  you believe doing short sales is offensive, less than productive, will reflect badly on your practice, it is better that you not do them," he replied calmly.

     Short sales come in all price ranges and for many different reasons...hardship does not have an economic target.  We have listed and closed short sales for hundreds of thousands....that were hundreds of thousands overpriced by other realtors....and done some for less than a hundred thousand.

   For anyone who believes that the dollar amount of a listing reflects the "ability or reputation" of a realtor...I would respond as someone did to us the other day...."A practice that includes a specialization in short sales does reflect on your reputation...it shows you are a realtor with a heart, not just a bank account."  Amen.

Until we work on our own image...promote our own professionalism, police those who have practiced less than ethically....we get what we deserve....a letter to the editor perhaps ?  Great Blog courtesey of Laura Giannotta....your source for all things real estate on the Jersey Shore.

  Lots of buyers, sellers...agents and lenders ....people in general, rely on "Mother in Law Research". This is a term coined long ago that means...ask the people you know...not the people THAT know....and draw your conclusion based upon this "research."

   Everyone wants family and friends to agree with them, applaud decisions, congratulate successes,it is human nature to want approval. When there ar large decisions to be made...the Mother in Law system may not be the "highest and best source" for the answer.

         - Deciding on the state of your local real estate market based upon what was said on the evening news may not be an accurate reflection of what is happening in your neighborhood

                         - Using the Mother in Law recommendation for choosing a professional to perform a sevice without the benefit of further research or collaboration may not be the best choice (ask the person with the now wet basement, leaky roof, etc. who used their neighbor's nephew)

 - Choosing a lender without the benefit of finding out what other programs and interest rates may be offered for a particular purchase, especially today in the ever changing economy, may be costly

- The lowest bidder....hmmmm...maybe and maybe not...was price the only criteria in choosing that vendor ?

   The best decisions are made from a position of strength. The strength of independent collaboration and not necessarily the person you are related to, a friend of or who is most likely to agree with you.  For your own protection, whether or not you like your mother in law, use objective sources to make the highest and best decisions.

  The Buyers' Loss is your gain...Back on the market...Come quickly...this 3 bedroom condo is larger than some homes...OVER 1200 square feet !  Take a dip in the outdoor pool....enjoy the clubhouse...convenient location...WOW ! Showing appointments thru listers...Our Short Sale Team doesn't just list short sales...we close them !

Sally K. Hanson | Keller Williams | 414-525-0563/877-525-0563 9363 Cobblestone Way, Franklin, WI Great 3 bedroom upper condo - gas fireplace, in-unit laundy...Short Sale Priced to Sell ! enjoy the pool, entertain in the clubhouse...love it..live 3BR/1BA Condo   offered at $119,777 !!! Year Built 2002 Sq Footage 1,223 Bedrooms 3 Bathrooms 2 full, 0 partial Floors 1 Parking Unspecified Lot Size Unspecified HOA/Maint $150 per month DESCRIPTION 3 bed, 2 bath upper in a great location...walk in closet, gas fireplace...lots of room over 1200 square feet,short sale priced to sell now !   see additional photos below PROPERTY FEATURES - Central A/C - Central heat - Fireplace - High/Vaulted ceiling - Walk-in closet - Dishwasher - Refrigerator - Stove/Oven - Microwave - Washer - Dryer - Laundry area - inside - Balcony, Deck, or Patio - Swimming pool   COMMUNITY FEATURES - Garage parking - Clubhouse     ADDITIONAL PHOTOS Great Room with GFP Dinette Kitchen w/Appliances Great Curb Appeal Spacious Bedroom   Contact info: Sally K. Hanson Keller Williams 414-525-0563/877-525-0563 For sale by agent/broker Equal Opportunity Housing Posted: Aug 14, 2009, 7:55am PDT

   We have very few price reductions on our listings. Some agents believe in taking expired listings at the same price at which they expired.  While price may not be the only reason....it often is a large part of the reason. That was another blog...we don't believe in setting sellers up to fail...in wasting their initial grand entrance on the market at a price that won't pass appraisal to appease a seller...for the moment, until the ink is dry on the listing contract.

    Talking with someone in the management of a broker the other day, he confided that he spends some part of every day on the phone with sellers  who do the "Your agent wasn't fair" chant while they complain that the agent wouldn't list for the price they "knew was right."

   No  ethical agent would wish a home to sell for less....No ethical agent would price a home for more...The first days on market are golden...it can be exciting, it can be a POP of PROMOTION,. something new in the neighborhood, an opportunity for a family to move on and one to move in....

   Sellers..If an agent gave you a price you were not expecting....look at how the price was determined.

• Are the homes that sold comparable to yours ?
• Was the sale recent and in the same area or one that is like yours ?
• Is the agent experienced and successful ? 
• How many price reductions does that agent gave a higher price average ?  (Ask for verification)
• What is the Agent's list to sale ratio ?
• If the list price is 30% what the home sold for...you have an agent who bought your listing...not likely a buyer who will buy your house.
• Can the agent furnish you with references for past clients and customers ?
• Why would an agent want to make less money selling your home at a lower price?

    Sometimes we hear sellers who have taken great care of their homes and see the comps at less than they wished they could get say.."BUT....that was a short sale, that was a foreclosure, those Sellers HAD to sell"...the reason is not important for selling...that number that it sold for IS....and that is the comparable that an appraiser will use for the buyer of the home.

       Without an appraisal that agrees with the price that the buyer agreed to pay...the Seller is looking for buyer who wants to pay cash and does not want an appraisal.  We don't know any buyers like that...regardless of the price of the house...and no matter what market you are in...chances are..there is no such person.

     One of the very best assets a realtor can have and a buyer will value is a good home inspector. It is a fine line to walk between being thorough and noting aras where there may have been some deferred maintenance and sounding the "defect" alarm scaring the buyers into withdrawing an offer for what "may be, could be" a problem. Laws are different in different states and it is part of the responsibility of the realtor to explain what can happen on a home inspection and the remedies or choices that buyers and sellers have as a result.

    We cannot call Russel Ray,(California) Jay Markanich (Virginia)  or Michael Thornton, (Tennesse) in Wisconsin, inspectors have to be licensed by the state. Often an inspector has a "past life" career in a trade related job. The education to obtain a license covers the major mechanical portions of the home - electrical, heating, plumbing and structural area...roofing, foundations. An inspector can raise concerns that may require an expert for further evaluation.  This could mean the inspection of a furnace, a basement expert to determine the cause of a water problem or the pitch of a wall, a roofer who may recommend a flashing addition, etc. Not every issue is what we would call a "defect"....there is always some on the "to do" list and the buyer and their agent determine what things they ask the to do and what things are just "routine systems maintenance" and the buyers will keep an eye on or deal with after closing. It is important for the sellers to understand that inspectors are paid to find areas of concern...and they will and do...whether it is new construction or a historical landmark.  It is not an insult to the way that the home has been maintained, it is just a caution to the buyers for things that require further examination or correction.  In many cases the items may not be major issues and it is always best for an expert in the area of concern to do further evaluation.

        On the buyer's side of the transaction, it is best to look at the whole inspection and decide what if any experts need to be called to do further evaluation. Important to the entire "health of the transaction" is having the list complete and all concerns raised within the time period that the sales contract specifies. In Wisconsin, a 10 day period is "usual and customary". A good realtor has a library of experts that can be called in a variety of fields from a handyman to a licensed electrician to repair or replace items that may need attention. Make one list and decide what things you wish the seller to address. Know what you don't know and call the people who do. Make it a one time trip...not fix this...and a day later...about the....One ammendment should cover it all.

        Respect the Inspect....that's for both sides...for the seller, it is not meant to insult...you need not be defensive. For the Buyer....it may be a caution...working  together for resolution allows everyone to live happily ever afer.

  I learned of this kindness too late to tell more of you about it....Maybe someone else in another location will find it a fit for their market and even more people will be able to benefit from such an idea....George Webb Restaurants is a chain in Wisconsin that has  a 24/7 menu from every kind of breakfast...to burgers topped with everything and anything and palate pleaser dinners like "Mom used to make" which may include entrees like meatloaf...a super soup selection....Here's the menu.

   If you brought in 5 or more non-perishable food items to any of their 38 locations from 6:05 to 7:05 pm on March 3rd, you got a voucher for g free hambuirgers !  Food for Food...Food for the people who need it most...and you could choose to "double the good" and donate the voucher as well.

  An outstanding example of paying it forward..maybe there is some outlet in your community that can encourage food donations as well....and you can help by giving them the idea.  Suggest that they are interviewed by a radio personality on air...a columnist for a local blog or weekly paper....get the word out...pay it forward....Hunger does not know a season...be part of the solution.

  We took out buyers to a beautiful home the other day....everything about it was what they loved...from the paint colors to the room layout...then there was the matter of the price.  They COULD pay at or near asking.... after careful review with their financial planner, they decided it was just not a part of their financial plan at this point in time.  Researching the history of the property...the price was apparently in no other buyer's plans either....at various prices...the home has been on the market a total of 741 days. We have had sellers sell and buyer short and traditional sales get to the closing table with less than what everyone believed the house was "worth"...but there was a closing and a relief to the sellers....and buyers who could take advantage of the price,

    In that light, I e-mailed the listing agent and told them our buyers liked the house but were willing to pay $X, did not want to insult the sellers....just a thought to float.  World's most arrogant reply fired back (this agent has only had the listing 30 days....he is lister number 4....who listed it at the former agent's expired price.)

 "I can assure you the sellers are not interested in an offer of $X...they have refused higher offers. If your buyers can pay that much in cash, the payment would be $X for financing an additional $X. (Gee thanks, my calculator was broken....)

    A quick look at recently scheduled sheriff's sales....Oh Oh....Agent $X....it looks like part of your expired list is now on the Sheriff's docket....whoops...maybe your sellers would have been interested in a lower price if you had explained the options of a short sale and foreclosure....

   Do we always know the sellers real selling motivation ? Can we speak without consulting them....after over 2 years on the market....Whether a buyer CAN pay $X is the same is not different than whether a seller will accept $X...it is one willing party to another....and who are agents to decide how willing and when enough may be enough...enough to take a less than optimum price...we are not.

  Three times in the last week and half we have been approached  to short sales....soooo we diligently do our homework and initial interviews to see if a short sale is indeed the "best fit" or the only answer for the distressed home seller.

    In each case, the "trusted spouse" who had traditionally handled the family finances,,,was hiding the payment for the mortgage....for "start over money" to pay the divorce lawyer,,,to get back at the  soon to be former spouse. There was no regard for the children....credit ratings...perhaps not realizing, or for now, caring that they were also taking down their own credit scores in our marital property state.  There was, in these cases, no understanding ofthe option of a  short sale...or the consequences of foreclosure.  No understanding by either spouse...and worse yet...little comprehension by any of the attorneys as to what would or could happen or could be prevented from happening.  "I am not a real estate attorney, " was the standard answer.   OK....so not every one knows every thing...but you would sure think there would be a basic understanding of marital property

   From the school of "Know What You Don't Know"...know enough to advise your clients....or to direct them to the proper resources before they both bare the unnecessary burdens of foreclosure. 

   To every couple everywhere....living together, engaged or married..,,,make it an open book policy....no matter how much anger, hurt and finger pointing goes on...know that you are hurting more than your ex by not paying the mortgage. If finances become impossibly tight, talk to your bank, call a successful realtor who has proven successful and verifiable short sale experience...find out your options before the mortgage payments you chose not to make narrow the choices you once had for financial resolution.

  The other day we became aware of a property for sale.  In another life, we knew the seller who had long since moved away from the market and entrusted a friend of hers to get the property listed.

   The friend did what lots of consumers would do...she looked on the internet to find a realtor who would be well suited as a listing agent...that sounds logical, prudent...the "right thing to do."   The friend found the listing agents...lots of blogs....lots of what appeared to be "market knowledge"...what she would never find....and of course did not appear anywhere she could see easily....was the track record of the listing agent.

    If she could peer into the MLS ....or ask the lister for a printout of sales (likely the lister would say they were "outside of MLS"...yeah right !) she would find out that gross sales for the last several years didn't or barely hit the million mark...which puts the listing agent at below the poverty level. Hoe much time, effort, money can a listing agent put against a listing with this kind of income ?

     Smoke and Mirrors aren't just in magic shows....we see them every day...the ability to create them makes it a little more difficult for consumers to discern who the REAL real estate agents are....and who the ones are that hide behind their blogs and imagine their sales.

    We got a call from a gal who had bought a new condo a couple years ago....it was perfect for her...a clubhouse, pool....all the ammenities she wanted and at a lower price than any other in the area as the sellers were divorcing and needed to sell.  This sounds like a "happily ever after" story and it should be....could have been in a different time...another place...an "instant equity" situation.

   Ahhhhh....but now....the developer has units he did not sell.  They are, at this stage, white boxes...to be finished as the buyers wish...choose the cabinetry, flooring and make it "your own"....AND for 40% less than she paid a couple years ago.  She was willing/able to take a hit on what she believed would be an investment...but one that size is not affordable....and now that she has lost her job....a short sale is her only option.

    She has spent some time beating herself up for "making a bad decision."  At the time....it was the best decision...the best condo at the absolute lowest price. That was then...this is now...we too are sorry and will help you the only way you can be helped, with a short sale listing.

  We thought...that the realtors who had not "shifted" were gone...or nearly extinct...and gone on to pursue other professions. That they had learned, through more trial and error that "buying a listing" does not work. You cannot make money....sell homes, keep or attract clients and customers when you over price a home to get the listing...it just does not work....

   We looked at a house the other day....blocks from the home I grew up in...I know the neighborhood...and still know many of the neighbors. The man had gotten the house back in a divorce. His now ex-wife had been a hoarder and had also trashed the property and not maintained it...what a combination !  Sooooo he spent weeks, cleaning out dumpster loads, painting, re-this and thating and asked us to come over and tell him the list price. For all he had done...there was sooo much more to do...the kitchen was a complete do-over just to begin to bring it into this century,,,the brown sink a in the half bath and narrow dark woodwork...huge gold veined mirror strips on the wall screamed of days gone by...decorating gone bad. The garage and basement were spotless...his priorities, not necessarily a buyer priority.

       "I have to sell this quickly !"  he quipped...when he "got it back" the mortgage had not been paid for a couple months...the property taxes were in default and so his cleaning was going to pay this all off and he would walk with "start over money."   Whoops....

  We gave him a price...offered to help with some staging...remove the mirrors...replace light fixtures...and still...the price would barely cover the indebtedness with the penalty, interest clock adding expense.

  We knew he would have to get at least one...if not more, "second opinions." Sure enough....he said he just had to take that leap of faith...he had tooo much time....money and emotion invested and not that he did not respect our opinion but 3 other realtors gave him prices of 30-40% higher than our suggested list.

   Hmmmm...now why would we list a house for that much under the market....The foreclosure bus will be parked in front of the house sometime soon....hard to believe that many realtors could be wrong...he decided they were not. Stay tuned as the bus drives up  and the foreclosure fist tightens around the house...I will take my license on it.

As first time buyers become first time sellers we hear it over and over...Yes But we have a __________.  It is a shiny penny market....and the yes buts keep you even with what is expected, what the home is compared to in the market....Thank you Tony ! Read on...