I’m not talking about distressed sales (short sales or bank owned), I’m talking about the regular “Happy” sales where all the decisions are yours (the Seller) and NOT that of a bank.   I’m adding the definitions of short sales and bank owned here for your edification.  There has been a lot of confusion about this. 

Short Sales:  These sales are anything but short.  Simply put, this is when a property owner is delinquent or becoming delinquent in their mortgage payments.   The Seller needs permission from his lender to sell his home for less than it is worth - “short” of the owed mortgage amount.   The Seller can initially decide on a price to list the house but it  will be up to his lender to make the final decision on price.  The process is quite involved to get the bank to respond and it is usually when an offer has been made.  Generally, it could be anywhere from 3 to 6 months before the bank will approve an offer.  Often times the bank will not approve the first offer but that offer can at least get things rolling.  Negotiating short sales is not for the faint of heart.  It is a long, complicated, frustating and an often times futile process but it can also be advantageous for the Seller and rewarding for the Buyer.   If you are the Seller, contacting a CPA or accountant is advised before getting involved in a short sale.

Bank Owned:  This is when the Seller has given the property back to the bank either by deed of lieu or by simply walking away and they are now out of the picture.  The bank is now the Seller and it is the bank that sets the price and negotiates all offers.  Because the bank knows nothing about the property, they are exempt from any property disclosures so the Buyer is buying the property without any history and the Buyer is buying “As Is”.   The Buyer just needs to be aware of this and with some due diligence, the Buyer could get a very good deal.

So back to “Happy” sellers and how to get their properties sold when their competition is the distressed sales. Often times the distressed properties are not in the best condition.  There are several reasons for this.  If owners cannot pay their mortgage, chances are they cannot upgrade or make repairs.  We have also found that when owners walk away from their properties, they also walk away with as many items from the home that they think they can sell - appliances, light fixtures, sinks - I’ve even seen light bulbs, door nobs and kitchen cabinets stripped away.  It’s sad and in some ways I don’t blame them but if someone is looking for a “move-in” ready home, usually distressed homes are not the ones to choose from. 

And that is where selling a non-distressed home can be an advantage.  If that’s what you’re trying to sell,  then your home MUST be in the very best condition possible.  I have blogged in the past on how to get there and I will repeat that blog again.   But for now your home needs to: (1)  Have good curb appeal (2) Be de-cluttered (3) Be immaculate inside (4) Have obvious repairs taken care of.  

Once your home is in the best condition possible, you need to find a Realtor who understands the local market.  Pricing your home in today’s market is the key to selling your home.   The reality today is that if you live in the Rogue Valley or in most parts of the country, your home is not worth as much as it was one or two years ago…and it may not be as much next year.  My advice to Sellers who really do not have to sell (and this is just my opinion) is to wait another couple of years when the market gets back on course.  Today’s home buyers are extremely price-conscious and listing at a price that’s too high for the market won’t bring the desired result.

But if you are needing to downsize, upsize, or move to a different area , it IS an advantageous time for move-up buyers who may have to sell for less than they would have a few years ago.  HOWEVER, you may also pay a lot less for the home you buy.  And the even better news is that the new Homebuyer Tax Credit law that was just signed by the President this past weekend will give a $6500 tax credit to “move-up” buyers who have lived in a primary residence for five of the past eight years.  They must purchase by April 30, 2010.  With this tax credit, the low interest rates, and the loosening up on credit, NOW really is the best tme to sell because of what is offered to the Buyers out there.