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Bad news: Appraisal $15K too low

By Bernice Ross, Tuesday, July 7, 2009.

DEAR BERNICE: We are selling our home to a nice young couple for $192,000. Our loan amount is $179,800. We have just enough money to close the transaction and pay off our existing loans. The buyers have 10 percent down and were applying for a 90 percent first. Our agent just called us and said the appraisal came in $15,000 low. She was quite angry. She said that the appraiser normally worked in an area 60 miles from here and had no experience with our area. The comparable sales he used were from a different school district and in a much less desirable area. We don't have any more cash to put into the deal and the buyers don't either. What can we do? Everyone still wants to close. --Chris M.

DEAR CHRIS: Although it may not seem like it, you're lucky that your buyers still want to buy your home. What normally happens when the appraisal comes in low is that the buyers walk away from the deal. more...

Alternatives to a jumbo short sale

By Bernice Ross, Tuesday, July 7, 2009.

DEAR BERNICE: Our house has been on the market for almost six months and we've had only one showing. It shows like a model and is in perfect condition. We listed with the top agent in the area who has a stellar record. Our list price is actually under what the comparable sales suggest, even though we updated the entire house just two years ago. We just lowered the price again from $899,000 to $799,000 and still no showings. Even if we were to close the deal at $799,000, we will still have to come up with another $75,000 of our own money to pay off the existing loans. What can we do? --Tom D.

DEAR TOM: Sadly, this is a story that millions of homeowners are facing throughout the country. It's particularly difficult for anyone who lives in an area where property values skyrocketed. These properties, due to their increased valuation, no longer qualify for what is known as a "conforming loan." more...

Let clients come to you

By Bernice Ross, Monday, July 6, 2009.

Are you still relying on old-fashioned "outbound marketing" techniques? If so, it's time to make the shift to the hottest new way to reach today's Web 2.0 consumers: "inbound marketing."

Outbound Marketing
For years, the real estate industry has relied on the old "hunt 'em, tell 'em, and sell 'em" model of marketing. You know the drill. Door knock, cold call, mail to your geographical farm, advertise in print publications, and plaster your face on billboards. When you do get a lead, be prepared with the right scripts that tell them how good you are. more...

Alternatives to traditional financing

By Bernice Ross, Tuesday, June 30, 2009.

Despite all the information in the press about a thaw in the availability of mortgages, many highly qualified borrowers are still having a difficult time obtaining financing. This is especially true if you own a more expensive home. What can you do when either you or your house is not a good fit for "traditional" financing?

Because of the tight credit market, a host of new alternatives to traditional financing are starting to emerge. If you are having trouble locating the right loan for your situation, here are just a few of the resources to consider: more...

New school of real estate marketing

By Bernice Ross, Monday, June 29, 2009.

Flickr photo by <a href="http://www.flickr.com/photos/editor/71486347/" target=blank>Editor B</a>.

Are you still relying on old-school marketing tactics that don't work well in today's Web 2.0 environment? If so, now is the best time ever to say, "Out with the old and in with the new!"

How much have you spent in the last 12 months on newspaper ads, print magazines, postage and other mailing pieces? How many hours have you spent calling people who don't want to hear from you? How many weeks (years) of your life have you spent doing floor or opportunity time? As an increasing number of consumers rely more heavily on the Web, old marketing strategies are rapidly giving way to an entirely new approach. more...

Contingent sales a tricky business

By Bernice Ross, Thursday, June 25, 2009.

DEAR BERNICE: We have had our home on the market for almost nine months. We finally received an offer from a nice couple, but their offer is contingent upon them selling their house in another state. They would like us to take the house off the market, but our agent says we should leave our house on the market for backup offers. What do you think we should do? --Laura J.

DEAR LAURA: Contingent sales are always difficult. If you elect to take your property off the market and prices in your area are declining, you run the risk of your house being worth even less than it is currently.

If you agree to a contingent sale, the first step is to set up the contract where you can cancel within a specified amount of time. more...

Smart remodel, big returns

By Bernice Ross, Tuesday, June 23, 2009.

DEAR BERNICE: We're planning on remodeling our two-bedroom, one-bath house and were wondering what upgrades will produce the best return on our investment. The house needs a new kitchen, and another bedroom and bath. We also thought of putting in a pool. Where should we begin? --Andy K.

DEAR ANDY: A common misconception about upgrades is that they always increase the value of the property. Upgrades normally make a house more saleable (i.e. easier to sell.) They don't necessarily increase the property value. For example, assume that you upgrade your property with cherry cabinets and green granite countertops. You sell the home to someone who wants white European cabinets and black countertops. Your upgrades made your home more attractive to more buyers, but in this case, the upgrades are not worth much if the buyer intends to tear them out. When deciding what to upgrade, the smart decision is to upgrade your home for your own enjoyment. more...

Top reasons 'tweeples' love Twitter

By Bernice Ross, Monday, June 22, 2009.

Flickr image by <a href="http://www.flickr.com/photos/lindacastaneda/2980416243/" target=blank>lindacq</a>.

Most people who experience Twitter for the first time walk away feeling confused. If you're someone who just doesn't get Twitter, today's column may motivate you to join the twitterverse of tweeting tweeples (people who post messages on Twitter).

I had a Twitter account for four months before I started using it regularly. I was following one good friend and was confused by what appeared to be one-sided conversations. In the meantime, my husband was happily tweeting to his friends by taking pictures of his latest kitchen triumphs and posting them on Twitter. Sure, the picture of the beer-can chicken was funny, but who cares? more...

Face time weeds out 'White Knights'

By Bernice Ross, Thursday, June 18, 2009.

You're thinking about selling your house. What steps can you take to locate the right agent to represent you on the sale of your property?

Part 1 of this series outlined eight steps to take to find the best Realtor to market your property. The next step is to meet with at least three agents to see who is best qualified to represent you.

1. Presentation or interview?
The best agents will approach your appointment as an opportunity to learn about the property and to get to know you better. more...

Signs of a quality listing agent

By Bernice Ross, Tuesday, June 16, 2009.

Did you know that approximately 80 percent of all sellers interview only one agent before they list their home? If you want to hire the best agent to represent you on your real estate sale, here are seven important steps to take:

Virtually all sellers want to achieve the highest possible price for their property in the shortest amount of time and with the least amount of hassle. The way that you do this is through maximum exposure to the marketplace. This means that your agent must have both a print and a Web marketing strategy. How can you know who has the best marketing plan for your house? Here are some key steps to take before you ever contact the agent. more...

Tech throws agents a lifeline

By Bernice Ross, Monday, June 15, 2009.

Last week's column examined strategies for generating more first-time buyer and investor leads based upon tips from the National Association of Realtors' midyear conference. Here are a series of additional suggestions that can help you grow your business regardless of what the market does:

1. The two strategies that helped agents grow their business in 2008
At a Power Broker session, one of the speakers shared the following statistics: 32 percent of agents actually grew their businesses in 2008. How did they do it? They did it through technology and through relationships. While technology connects us with our clients, they need help deciphering the enormous amount of information that is available both online and offline. This is where it is important for agents to become the "trusted adviser" for their client base. more...

Troubled borrowers fall prey to scams

By Bernice Ross, Thursday, June 11, 2009.

If you or someone you know is in trouble with their mortgage, there are lots of people who claim that they can help you. The challenge you face, however, is determining who is legitimate and who is running a scam.

As unemployment continues to soar, an increasing number of people are facing serious challenges in making their mortgage payments. Sadly, distressed homeowners have become prime targets for scammers who claim they can help troubled homeowners escape their financial woes. Here are some of the most common real estate mortgage scams. more...

Back out of deal, forfeit 3%

By Bernice Ross, Tuesday, June 9, 2009.

Illustration by <a href="http://www.flickr.com/photos/hikingartist/3000884104/" target=blank>Frits Ahlefeldt-Laurvig</a>.

DEAR BERNICE: We are buying our first home in California. Prices have finally come down to where we can afford them. Our agent asked us to review the purchase agreement now so that we wouldn't feel rushed when we are ready to write an offer. One of the provisions called for "liquidated damages." I've never heard of that before. Is this something we should agree to? --Sam K.

DEAR SAM: Congratulations on buying your first home. The "liquidated damages" provision allows the buyer and the seller to agree in advance as to the amount of damages that will be paid in the event of a breach to buy or sell real property. more...

Real estate's perfect storm?

By Bernice Ross, Monday, June 8, 2009.

Flickr image by <a href="http://www.flickr.com/photos/coreburn/2930510460/" target=blank>CoreBurn</a>.

This year's National Association of Realtors midyear conference was packed with information that can help your business. Today's column covers some important highlights.

1. The perfect storm
Robert Sibcy of Sibcy Cline Realtors argued that we are in the exact opposite of the "perfect storm" for real estate. Sibcy contends that now is absolutely the best time ever to purchase real estate. Consumer confidence is increasing, the housing affordability index is the best it has been in 40 years, and interest rates are hovering around 5 percent. more...

Home insurance: ins and outs of coverage

By Bernice Ross, Thursday, June 4, 2009.

Recently I wrote a column about the types of claims covered on your homeowner's policy. Our readers had a wealth of comments and questions. Here are just a few of the responses we received.

1. Earthquakes and fires in California
Pete Moraga, a communications specialist from the Insurance Information Network of California, explained the notion of "proximate cause." Moraga quotes the California Department of Insurance Web site: more...

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