Pacita's Quick Bytes of Real Estate

In case the buyer is on the fence, and not sure whether or not to jump in and buy now or later

Here's something to think about (Source: Steve Harney's Keeping Current Matters)

Know What the Experts are Predicting for Interest Rates in 2010

If we look past just the price of a home, we know that the buyer will be concerned with its overall cost. We then realize how important the financing component is to the purchase. Where are interest rates headed in 2010? Here is what people in the know are predicting:
 
HSH & Associates: rates will nudge closer to 6% than 5%
Moody's Economy.com: 6 percent that sounds about right
Washington Post: 6 percent by the end of 2010
Barry Habib of Mortgage Market Guide: It could be as high as 6.5%
Morgan Stanley:7.5 percent to 8 percent

Related articles:

• Morgan Stanley Sees 5.5% Note as U.S. Faces Deficits
• Investors see mortgage rates rising as Fed wraps up buys

And for a historical view of interest rates the past few decades, see:

• National Average Mortgage Rates - Historical Data
• 30-year Fixed Rate Mortgages since 1971

SO....HOW WILL THIS AFFECT THE BUYER?

Scenario: $500,000 purchase price, 1 % loan origination/discount point, conventional loan,  in Alameda CA.

What is your estimated PITI (principal, interest, taxes and insurance) payment per month?

With a 5 % down payment, the difference between a 5% interest rate today, to the lowest predicted increase up to 6% by the end of the year is $298/month more or $3,576/year.

It used to be that to illustrate how little or insignificant the difference is in prices, we compared them to the cost of a cup of coffee --- that's when coffee cost mere "pennies".

Today, it's a different story. So let's use Starbucks coffee.   A "venti" sized coffee at Starbucks costs about $3.50. So taking the cost of $3,576/year for the difference between interest rates of 5% versus 65, that's 1,022 cups a year or nearly 3 cups a day.

Extended Home Buyer Tax credits

And...let's not forget that qualified buyers may receive tax credits if they are in contract by April 30 and close by June 30, 2010:

• First time home buyer tax credit: $8000 tax credit
• Move up/repeat buyer tax credit: $6,500

Hmmmm .....

REALTOR Magazine wanted to know why sales associates like their broker and their company. I am only too happy to tell them why.

I'm happy and proud to participate.

My broker, Michael Studebaker,  and company gave me my first chance to become a realtor. When no one would hire someone who did not have experience as a realtor yet, Gallagher and Lindsey  in (Alameda CA) not only took in other realtors-to-be like me but also provided a whole curriculum to prepare us. We had classes, guest speakers, case studies, and more. They provided training that helped us pass the mandated tests and get our licenses.

My broker frequently invites different people to present during weekly sales meetings. Guests have included real estate accountants, real estate attorneys, city officials, school superintendents, developers, community advocates. With their help, we stay in tune with the community, keep up with development in the real estate industry, and become better informed and knowledgeable --- and hence, better serve our clients and become better members of our community.

Additionally, he holds regular classes on many topics. During regular brown bag lunches, we have an opportunity to share ideas (or vent if we need it).

My broker is eager to embrace new ideas, and encourages us to pursue other ways to market our services. He searches and employs technologies like Docusign and efax, and implements use of various marketing techniques via Vflyer, craigslist, etc. He hooks us up with webinars such as those hosted by ForeclosureRadar.com; shows us how to utilize market metrics/charts we can pull up using Clarus; teaches us how to get connected via Facebook, Twitter, YouTube, Zillow and Trulia.  From time to time, he will even pay for classes like e-PRO, and seminars that we attend such as those by Inman. He subsidizes programs ---- for example, every one of us can customize and enhance our listings on REALTOR.com. Like a proud parent, my broker's focus is on education.

Thus, our team is constantly evolving, learning....we do not stand still.

We are encouraged to be active in community programs, and we do. Some are active soccer coaches. Some participate in Habitat for Humanity and Meals on Wheels. We host Frank Bette Art Center  art exhibits at our office. We volunteer during community events. Every Christmas, the company goes all out to "adopt" a needy family. The spirit of giving is alive and well.

One can walk in our office and can immediately feel the very strong spirit of camaraderie and care. We are all willing to help and look out for each other. Where else can one say, with sincerity, "We've got your back" ?

This is a great place to work!

In case you missed this....The Washington Post published the winning submissions to its yearly neologism contest, in which readers are asked to supply alternate meanings for common words.

The winners:

      1. Coffee (n.), the person upon whom one coughs.

      2. Flabbergasted (adj.), appalled over how much weight you have gained.

      3. Abdicate (v.), to give up all hope of ever having a flat stomach.

      4. Esplanade (v.), to attempt an explanation while drunk.

      5. Willy-nilly (adj.), impotent.

      6. Negligent (adj.), describes a condition in which you absentmindedly answer the door in your nightgown.

      7. Lymph (v.), to walk with a lisp.

      8. Gargoyle (n.), olive-flavoured mouthwash.

      9. Flatulence (n.) emergency vehicle that picks you up after you are run over by a steamroller.

      10. Balderdash (n.), a rapidly receding hairline.

      11. Testicle (n.), a humorous question on an exam.

      12. Rectitude (n.), the formal, dignified bearing adopted by proctologists.

      13. Pokemon (n), a Rastafarian proctologist.

      14. Oyster (n.), a person who sprinkles his conversation with Yiddishisms.

      15. Frisbeetarianism (n.), (back by popular demand): The belief that, when you die, your Soul flies up onto the roof and gets stuck there.

And the pick of the literature:

      16. Ignoranus (n): A person who's both stupid and an asshole.


The Washington Post's Style Invitational also asked readers to take  any word from the dictionary, alter it by adding, subtracting, or changing one letter, and supply a new definition.

      This year's winners:

      1. Bozone (n.): The substance surrounding stupid people that stops bright ideas from penetrating. The bozone layer, unfortunately, shows little sign of breaking down in the near future.

      2. Foreploy (v): Any misrepresentation about yourself for the purpose of getting laid.

      3. Cashtration (n.): The act of buying a house, which renders the subject financially impotent for an indefinite period.

      4. Giraffiti (n): Vandalism spray-painted very, very high.

      5. Sarchasm (n): The gulf between the author of sarcastic wit and the person who doesn't get it.

      6. Inoculatte (v): To take coffee intravenously when you are running late.

      7. Hipatitis (n): Terminal coolness.

      8. Osteopornosis (n): A degenerate disease. (This one got extra
      credit.)

      9. Karmageddon (n): its like, when everybody is sending off all these really bad vibes, right? And then, like, the Earth explodes and it's like, a serious bummer.

      10. Decafalon (n.): The grueling event of getting through the day consuming only things that are good for you.

      11. Glibido (v): All talk and no action.

      12. Dopeler effect (n): The tendency of stupid ideas to seem smarter when they come at you rapidly.

      13. Arachnoleptic fit (n.): The frantic dance performed just after you've accidentally walked through a spider web.

      14. Beelzebug (n.): Satan in the form of a mosquito that gets into your bedroom at three in the morning and cannot be cast out.

      15. Caterpallor (n.): The color you turn after finding half a grub in the fruit you're eating.

 

Good payment history and credit score of 820 don't mean a thing

Homeowner is current on her payments. Was late just once, and paid the late fee. Her most recent credit score is 820. Being self-employed, her income dropped the last year, while her adjustable rate re-set and increased by nearly $500/month.

She applied for loan modification. Completed her paperwork. She indicated she wants to keep her home,  but is asking for relief, and hoping her monthly payments will be adjusted to give her some breathing room.

Application denied!

Loan modification respondent denied her request, said that the homeowner doesn't make enough money to cover her mortgage. Adding salt to her wounds, the respondent told her to do a short sale.

That's it. No further discussion. No effort to do a work-out plan even on a trial basis. No review of the financials. Although the homeowner had a good track record and her payments are current, it didn't matter.

There seems to be a lack of sensitivity and finesse from people who receive and handle loan modification applications.

Any suggestions?

What next? With the proliferation of do-it-yourself and hire-a-loan-modification-expert information on the net, this homeowner is unable to decide which lifeline to grab.

Will begging work?

Headline: Government Mortgage Plan Aids 7% of Borrowers

"The rest will either won't send back all the required documents or will be deemed ineligible according to the government's formula."

Headline: Flaws plague foreclosure relief program

What is the government's formula?

If you've run into the situation wherein the second or junior lien holder asks for more money than what the first will give towards pay off, keep this in mind: get approvals from both lenders, put this in writing, and on the HUD.

From our attorney:

Question and Answer Regarding Junior Lienholder's Demand For Compensation

Question:    I am a listing agent on a short sale with two (2) loans secured against the property. The senior lender has issued an approval of the short sale and specified the amount the senior lienholder is requiring that it be paid. It has also specified the amount which may be paid to the junior lienholder. The junior lienholder is requiring additional amounts be paid to it without notice to the senior lienholder.

Is this legal? Does it expose the seller or me to liability? How do I handle this situation? Can I force the junior lienholder to accept less money and close the transaction?

Answer:    A short sale is a voluntary process on the part of the lenders to accept less money than the amounts of the loans. You cannot force any lender to accept a short sale. When a senior lienholder issues an offer to accept a short sale and specifies the terms, those terms must be complied with or there is a breach of contract.

If payments are made to the junior lienholder without notice to the senior lienholder, the agents as well as the seller may be exposed to liability for defrauding the senior lienholder.

In addition, the title company, to the extent the title company was aware of the payments, also may be held liable to the senior lienholder for not following proper escrow instructions. In order to facilitate a short sale without liability, the senior lender needs to be notified of the amounts paid to the junior and approve those amounts.

In addition, all payments to all parties relating to a short sale must be disclosed on the HUD-1 approved by the lenders.

If you didn't see this news article, you may want to check it out. Big Banks Accused of Short Sale Fraud  http://www.cnbc.com/id/34877347

Identical situations ---- well, almost.

Two property owners have identical home floor plans, different elevations, different upgrades. Both paid nearly $1M for their respective homes when they bought them brand new from the developer 3 years ago.

The developer had sold for $680K or 30% less, its last property that the same floor plan just last year. Other homes in the community have also fallen in market value because they were adversely affected by recent sales of short sales and foreclosures.

Both these property owners need/want to sell now. Both don't want to do a short sale because they want to protect their credit.

• Seller A is a young couple. This is their first home. They may need to relocate, and have to sell. They are aware of the market  change, what their home is worth today. So they decided to take the hit and accepted offer for approximately $750K  (before selling expenses). So they are losing what they put into the house, and then have to shell out additional funds for expenses.

• Seller B is an investor with other properties. This is one of their homes. But they vacated the home, moved to another. Their initial list price a year ago was for nearly what they paid for it. Over the course of the next few months, they have re-listed and reduced the price trying to catch up to similar and larger homes taht sold for less in the same neighborhood. Their current list is higher that Seller A's even though Seller B's property has fewer and less expensive upgrades.

Seller B finally receives an offer, but refuses to accept anything less than list price. And so it sits....and sits....and sits.

In the meantime, they make monthly payments of nearly $6k.

Their insurance company may question their rate because the home is vacated, and as such, unprotected.

There is no correct answer to the question on whether or not it would have been better for them to do a short sale, take a hit on their credit score,. Either way, they would have lost 20% of market value.

But what is their next objective?

By doing a short sale, they would lose what they put into the house. And they will see a significant drop in their credit score which they can repair in 2 years or less and enable them to buy another property after that time. Neither homeowner may qualify to buy another property during this time or "repair".

By not doing a short sale, they not only lost market value, but also more $$ out of their pocket. BUT, if they have liquid assets and can qualify to buy another home without waiting for 2 years This may also present them with the opportunity as move-up buyers.

Do both lenders prefer to foreclose versus short sale? It sure seems that way!

August 2009. Short sale listing at $475k. Got multiple offers. Highest offer at $571K. Back up at $550K. Even with this high offer, after selling expenses, payoff of delinquent taxes, etc, we would have been short of funds

Hired third party negotiator. Submitted complete package end of August.

Sellers have two loans: American Home Mortgage (payoff $502), and HSBC (pay off $98K)

• American would have been paid off with this offer As such, they don't have or want to do a short sale. They offered to give HSBC $9K (or 10% of what is owed to HSBC). They had property appraised for $550K.

• HSBC wants $39k, and will only approve the short sale at that amount. HSBC negotiator's mail box always busy. She doesn't respond to calls/faxes. Had to send letter complaining to her boss. Her boss gives the complaint for her to handle, to no success.

January 2010. Third party negotiator threw her arms up in surrender over HSBC's loan negotiator's stubbornness, unresponsiveness, refusal to work with us by agreeing to $9K payoff.

Does HSBC prefer that the property foreclose where they won't get anything?

In the meantime, buyers walked. Either I surrender too, and let it be foreclosed, or chase after buyers, or get new offer. But now, property may appraise at less, maybe $525K, and less than what seller owes. So it has to be a short sale.

Will American stop its posturing and agree/accept lower offer that WILL put it in short sale?

Do both lenders prefer to foreclose versus short sale?

So frustrated and bordering on tears of dismay and anger.

What happened to service with a smile? Bad attitude emanates from the top. If the managers behave badly, their hired help will, too.

Can't believe I got into a fighting mode at a parking garage!

I took my Dad to Kaiser Permanente on Piedmont Ave in Oakland today. Because parking is so problematic, I headed to the parking lot across the building, where cars are valet parked.

The parking attendant asks me, "How long will you be here?"

When I told him that I don't know how long it will be, he said "I won't park your car because I'll be here only until 5 pm." It was only 2:30 pm at that time.

I tried to reason with him, telling him my dad's appointment should be over in a couple of hours, and that there's plenyy of space at the lot anyway...but he took this to be arguing.

What was I supposed to do: beg?

So I asked to speak to his supervisor who turned out to be no better. They told me to park elsewhere. Since this was the only parking lot across the hospital, they know they're the only game in town, and therefore, they call all the shots. Wonder if the owner knows this is how their hired help treats their customers?

I decided that I'd rather walk a mile than give these folks my money. Fortunately, a spot opened on the street.

But I was fuming.....

When service personnel treat me badly, I should just let my wallet do the talking and keep on walking!

As more and more homeowners find themselves in distress in terms of their home ownership, some people may take comfort in knowing that they do have some options available to them before they are foreclosed.

Whenever "short sale" is brought up as an alternative solution, both buyers and sellers cringe. Why? Because some short sales are difficult and nearly impossible to do. But looking at the following charts, short sales have succeeded in many cases.

I am getting ready to send out information to my database to keep them informed about the market, and decided to look at the activity in select cities.

WE ARE in the same boat

Residents of some of these cities  were proud that their property values have "held their own". But upon a closer look at individual markets, surprisingly, even the highest priced markets like Piedmont, Berkeley and Alameda have seen their share of distressed properties.

SHORT SALES ARE GAINING GROUND

It is encouraging to see the number of short sales that have successfully closed escrow. In Pleasanton, I had to do a double take when I saw that there were more short sale than foreclosures in 2009.  In Dublin, there were nearly as many short sales as there were foreclosures that same year, too.

But the rest of the sampled cities in Alameda County, CA show that foreclosures outnumber the short sales among the distressed properties. And in some cities, distressed properties outnumber regular sales, such as Hayward (77%), San Lorenzo (71%), Oakland (64%) and San Leandro (64%)

SAMPLED ALAMEDA COUNTY CITIES, sales in 2007-2008

Residential sales include condos, townhouses, duets, and detached single family homes.

As if competing in multiple offer situations on REOs, short sales and regular sales isn't challenging enough, it looks like we may in it for a while.

When determining what type of market we are in, the most common metrics used are the months' inventory levels. Judging from the activity in select cities in the East Bay, it is evident that inventory levels are low, low, low!

What does that mean? Below 6 months inventory is typically a seller's market. But below two-three months' inventory?

Our buyers have to be more aggressive and more strategic when submitting their offers. With the looming deadline for first time and repeat/move up buyer tax credits, we anticipate that we're going to compete on every offer we write.

Here's what it looks like in certain areas

ALAMEDA COUNTY

CONTRA COSTA COUNTY

On December 7, 2009, at 1:30 pm GMT, musicians from 156 countries played "All you need is love" together. The global sing-along is part of continuing efforts to help fight AIDS in Africa.

For each video submitted as part of the StarbucksLoveProject.com, Starbucks will make a donation to the Global Fund. .

To see the main event and how it played out on multiple screens, see: http://starbucksloveproject.com/#/main/

To be happy in these seas of raging discontent and dissension, let's build an ARK: Acts of Random Kindness. This is the moral story behind this light comedy, Evan Almighty that was one of the holiday movies playing today.

It's a bit of play on a popular book and concept. It's been decades since the book "Random Acts of Kindness" was introduced. Since then, it has served as the inspiration to movies like "Play it Forward", and the catalyst in the formation of the Random Acts of Kindness Foundation.

Going into year 2010, we are sure to encounter people facing life-changing situations. Maybe it's us! This may be a good time to think of what we can do to help ease someone's pain, or to bring a little glimmer of hope, or simply one sunny smile...one at a time.

KINDNESS IDEAS

There are so many opportunities that present themselves if we just stop for a moment and be observant.

Here's a link to Neogenesis.com that gives some ideas for random acts of kindness. 

More ideas from people who have actually done these acts kindness

• Buy boxes of cookies from the Girls Scouts selling them, and then present them as gifts to the girls themselves
• Someone is short of just a bit of cash at the check out counter, offer to pay for the difference
• Offer to do some grocery shopping for someone who is sick, bed-ridden or frail
• Know someone who fosters animals? Bring them a bag of pet food or some pet toys. Every little bit helps
• If you've enjoyed a meal at a restaurant, ask to speak to your server's manager and then tell him how exceptional your server was. Then give your server a generous tip.
• On your clients' moving day, offer to baby sit the young children or the pets. Then bring them some refreshments (water, food-to-go) because they'll be very busy and tired and can use a break
• Or stock up their refrigerator with the refreshments, and leave some essentials like paper goods and cleaning materials before your clients move
• For relocating clients, get them books and maps, and an Entertainment Book that has coupons for services, amenities and restaurants that will make getting acclimated more pleasant
• For either buyer or seller, give them a free home warranty -- it's for their as well as your own peace of mind
• At the checkout counter of Blockbuster's, buy a tub of popcorn and give it to someone in line behind you. Enjoy!
• Keep several quarters handy. When you walk down the street, slip a quarter at a parking meter that is about to expire or has expired.

Whatever we do, let's just keep practicing these acts of kindness....Every little act brings huge dividends because they make people (including yourself) happy.

Have a Happy, prosperous and peaceful New Year!

Since I became a fan of the new TV show, Glee, I've been scouring the internet for clips from the show. There are quite a few on YouTube. But here are a couple of other clips that are truly delightful.

This talented artist is Sam Tsui. And he sings the lead and all the harmonies. Simply wonderful/ This one is a medley of Michael Jackson songs.



And now, for a bit of Journey

Our fabulous island city of Alameda CA where we  have just just 70,000 residents, we like to think that properties here "hold their own" and that we are somewhat insulated from the economic upheavals that affected the surrounding cities the last couple of years.

DISTRESSED PROPERTY. WHAT'S THAT?

So it was surprising to see many distressed --- foreclosures and short sales --- properties sold this year between January 1 - December 30, 2009. Looking at residential sales of condos, townhouses, duets and detached single family homes, here's the story:

• 427 homes sold in 200
• 58 were REO (real estate or bank-owned) or 3% of total
• 89 were short sales in 21% of total

These 147 distressed properties constitute 34% of total sales in 2009.

OMG!

THE WAY WE WERE

How does that compare to previous years?

So guess what....we're seeing a shift in the sands....

LOCAL MARKET STATISTICS

Our market statistics are painting an interesting picture: low inventory, fewer homes for sale, shorter days on market. With the looming deadline to qualify for the first time and repeat home buyer tax credit, we may see an active market in the next few months.

Low inventory --- it's looking more lika a seller's rather than a buyer's market.

Days on market --- the listings stay on the market for a shorter period of time than they did two years ago.

Under contract --- September 2009 recorded the most active month in the last two years.

Distressed properties --- short sales and foreclosures --- constitute 60% of closed escrows for residential properties in San Leandro CA for the year 2009. 

SOLD

As a review of what happened in 2009, January 1 to today:

• 819 completed sales
• 134 were short sales or 16% of total sales
• 359 were bank-owned, or 44% of total sales

Closer look at the 134 short sales that closed escrow:

• 13 were condos or 10% of total
• 6 were townhouses or 4% of total
• 120 were detached single family homes or 86% of total
• Average list price was $306,197
• Average sold price was $307,433
• Average number of days on market: 70 days

Closer look at the 359 REOs that closed escrow

• 52 were condos or 14% of total REOS sold
• 21 were townhouses or 6% of total
• 1 was a duet
• 285 were detached single family homes or 79% of total

ACTIVELY OFFERED FOR SALE AS OF THIS WRITING (Dec. 30, 2009)

• 116 homes for sale (combines condos, townhouses, detached single family homes) regular, short sale and foreclosures
  • Average list price $357,018
  • Average days on market: 64
• 40 are short sales, or 34%
  • Average list price: $323,735
  • Average days on market: 74
• 40 are REOs or 34% ----
  • average list price: $302,666.
  • Average days on market: 30
• 36 are regular sales or 31%

WHERE TO FOCUS SEARCH FOR HOME TO BUY?

My first time buyers are beginning to realize the challenges of short sales, starting with which the lenders are better than others, why it's important to know how many lien holders there are, and what are the possibilities of getting the short sale approved.

They are re-thinking whether or not they should focus their search on regular sales instead, especially if they want to take advantage of the first time home buyer tax credit.

They need to see what their actual cost to buy and monthly payments would be.  Using Fidelity Agent, Here's an illustration: assume 10% down, 5.25% interest rate, conventional loan, 1% discount point, and a $50,000 difference between offers

Who knew I'd want to feel like a kindergartener again?

As kids, every time we did something good, we were rewarded with stars. Bronze for good. Silver for better. and Gold for the best. On Active Rain, getting points and stars brings me back to my early childhood, where every star is a happy occasion.

When I started joined Active Rain in 2008, I was more focused on reading the various blogs (i was "lurking"), then  learning about good content and finding good resources for them,  learning how to utilize the tools we have to make the blog look better, how to switch from html to wsyiwyg (it was here on Active Rain that I found out that meant "What you see is what you get", courtesy of Flip Wilson, remember him?), on joining groups where I can pick up really good information that I can apply in my daily business --- and essentially, learning how to blog.

Then the points started adding up. There are points for blogging? Wow!

The first time I received a gold star, some folks commented about being featured. And I didn't even know what that was about.

But now, I'm about to hit a milestone --- just a few points of earning 200,000 points! I aim to hit that milestone by New Year's Eve so I can celebrate the New Year with a bang.

Ths must be another way to feel young....feeling an old-fashioned kind of joy upon achieving my goal.

Just because an agent has completed a few short sale listings doesn't necessarily make him a good one.

That's why it's so refreshing and so wonderful to run across a short sale listing agent who not only knows what he's doing, but is also strategic about the process.

I submitted an offer on behalf of my client on a short sale listing that turned to be competitive. What made this listing agent special?

WINNING STRATEGY!

• He provided clear information --- there are two loans, and it's by Wells Fargo. So immediately, we knew what to expect
• He priced the properly realistically --- he knew the area, knew the comps. He didn't didn't price it artificially low just to create demand. Why waste time on low ball offers?
• He set the stage, knew what to expect from Wells Fargo, and what % the second lien holder may want as pay-off. As such, he prequalified the buyers by asking the agents if their buyers would be willing to "contribute" towards paying off the second lien holder out of escrow.
• He itemized what he needs with the offer. To expedite a winning offer, it's important to include not just a preapproval letter, but also other documents that support buyer's ability to close escrow.
• He communicated directly with the agents --- responded in a timely manner, talked on the phone, and not merely via email.
• He reassured the agents that knows what he's doing by letting us know what his and his sellers' strategy is when selecting the winning offer. For example, he doesn't send ALL the offers to the lenders, but rather, he discusses the pros and cons of each offer with the sellers, and sellects the best and highest offer
• He took the position that it's YOU and US, and that we're looking for a WIN-WIN scenario.

So for all you short sale listing agents who strive and continue to excel, BRAVO. When you excel, you set the standards that make all of us bring our top and best game.

With all the challenges we face in showing properties and writing offer on REOs (real estate or bank-owned) and short sales, it is becoming increasingly refreshing to see an ad that says a listing is NOT and REO or NOT a short sale. 

WHY?

Because it's been so frustrating waiting for short sale approval. It's been distressing to see bank-owned properties so trashed. It's been stressful to compete against all cash buyers who appear to win a lot of these bids on REOs.

So when we see a reasonably priced property in a decent neighborhood, and read that it's not an REO and not a short sale, we jump on it. Even if it's slightly higher than the short sales and REO properties in the surrounding areas, buyers and their agents look forward to the chance of writing offers where there may be some room for negotiations.

New listing is NOT and REO, NOT a short sale.

My sellers were debating going through a short sale (their lender is Chase which is reputed to be just as bad as Bank of America). But not knowing their timelines when they may relocate to attend to a parent, they elected to sell as a regular sale. Hallelujah!

But this home is surrounded by similar and larger homes that are short sales in the same price range. Those were their competition.

So we priced the home very aggressively. Activated the listing Monday, Dec. 21. Held broker's tour Dec. 22. Then had requests for several viewings, even as late as 5 pm on Christmas eve. Numerous inquiries about whether or not we have offers yet.

What drew them to this property? The agents said it's because "It's NOT an REO and NOT a short sale." People with deadlines (such as first time and repeat buyers looking to take advantage of the tax credit) are ready to buy and don't want to wait.

So if you have a new listing that's not a distressed sale, put it in your remarks and in your advertising materials. That's a new kind of Truth in Advertising.

Perhaps we've discovered a NEW reality, or even a NEW way to advertise!

If you post this on craigslist and other online advertising, for people who are specifically looking ONLY for REOs and short sales, this listing will ALSO show up because of keywords REO and short sales. And when they see what they can get that is a regular sale, well, gee, why not check it out, too?

This year, my company decided not to have our usual holiday party.

Instead, we held a Vendor/Affiliate Appreciation Party. We invited our vendors and affiliates to a party at our office to show our appreciation for their contributions.  We had inspectors, title company reps, escrow officers, insurance agents, lenders, hardwood installer/refinisher, contractors, stagers, and more.

What fun!

Our broker, Michael Studebaker, baked turkeys and hams, while the rest of us brought the complementary dishes and desserts. Wine flowed as freely as the animated conversations.

It was a lively gathering with non-stop laughter. We were having such a good time that no one remembered to take a picture! No photo-ops!

That day, it was so much fun that one of the vendors posted on facebook that he had a blast at our party, and asked why another (and larger) local realty office didn't hold a similar party for its affiliates?

That day, it was clear to all that to be successful, we must have a good team working with us every step of the way.

That day, it became more about them and not about us.

That day, we were bound by one thing: friendship.

That day, we resolved to be more appreciative of friends we do have.