Foreclosures will spike in 2010

I do not want to focus on the negatives and pain that currently exists across the country. But I do have to acknowledge that it exists and look for possible solutions. Many families have simply thrown up their hands and have given in to what seems to be the inevitable loss of their home.

Short Sales and foreclosures do not ultimately have to be the outcome. 80 % of all loans written in the past decade contain RESPA violations. These violations do not make the loan contract void but allow a professional to use leverage with the lender when attempting a loan modification. The attorney attempting the loan modification on your behalf will first try to capitalize arrearages, reduce interest rates until a 31% debt to income ratio is reached (perhaps lower your rate down as far as 2%) extend your loan term, and lastly forebear principal.

There is a well know company out of Oregon that will not charge any fees until your loan is successfully modified. They have vowed to have an attorney in every state by March of this year. They have a reputation of being able to work with lenders up until two days prior to loss of the home. You do have time. (I do not have any affiliation with this company....just trying to help as many people as possible)

Warmest Regards,
Tim Bray B.S. Real Estate & Urban Economics (UConn)

Psychology of the real estate transaction

As a real estate professional, I am forced to acknowledge the factors leading to the purchase of property on a daily basis. Most buyers and sellers have points of view driven by their own interest in a specific property.

Sellers typically believe that their property is worth more than other properties in the market place due to location, emotional attachment, personal improvements, or because their friends and family advised them. Selling a property below their own perceived value would be admitting that they may have made a mistake in the purchase, timing the sale, or over-improving the property.

Buyers, on the other hand, search for real estate to solve a problem currently existing in their lives. The most common utility achieved by the purchase of real estate is shelter. Affordability followed by lifestyle and ultimately leveraging funds in the form of a real estate investment lead the charge in the decision to buy property.

In today's market a buyer is quick to point out the negative attributes of a property in an attempt to justify and negotiate a lower offer. Often times the seller is offended by perceived low offers and a deal is ultimately not consummated due to emotional factors and/or financial loss.

As a listing agent my job is to keep as much money in my client's pocket as possible. I must provide care, obedience, accountability, loyalty and disclosure at all times. I am a successful real estate broker because of my integrity, work ethic and straight forward approach. My exceptional referral base is a direct result of proactive service and client appreciation.

Below, I have outlined my teams approach to selling properties at top market value and a brief analysis of your asset.

The First Step in Selling Property: Determine an accurate price range.

Trying to sell an over-priced property to an INFORMED buyer is virtually impossible in today's market. Buyers are knowledgeable and more educated today because of new technology and the internet. With a click of the button potential buyers are able to view all of the transactions in an area and quickly form an opinion about a property. Real estate agents are no longer in control of disseminating information. Their true value lies in market knowledge, interpretation and strategy.

Avoid Low-ball Offers: Third party appraisal will negate the buyer's ability to substantiate a low-ball offer.

Almost all of the offers I have received in the past few years contain specific language intended to protect both the buyers and the lending institutions. Specifically, "This offer is contingent upon the property appraising at or above the purchase price". By getting an opinion of value from a local, third party appraiser prior to marketing your property you will accomplish several things. First, your property will be priced realistically and will attract qualified buyers. Secondly, the appraisal will negate the buyer's ability to substantiate a low-ball offer. Third, an appraisal is an important component to help expedite the selling process. The goal in today's market place is to get recognized, get offers and sell. A long selling process, with multiple price reductions, hinders the ability to achieve a top market selling price.

Get Recognized and Not Passed Over: Being a real estate marketing professional means "professionally" marketing property so it looks great, creates interest and gets unparalleled market exposure. No excuses!

Hands down, my team markets property better than anyone in this region. We are the best because that is our standard. Marketing starts with having a thorough understanding of the market and being educated about the real estate industry. After compiling extensive market research, we incorporate professional photography, architectural drafted floor plans and aerial photos, along with other pertinent information to create graphically compelling marketing material.

Let's face it...if the property is overpriced then no one will ever see the marketing.
Tim Bray
B.S. Real Estate & Urban Economics - (UConn)

Are condos a risky investment in today's market?

I am often being asked if I feel that Condo’s are particularly risky in these trying times. Let me shed some light on the condo market and try to help you make the best decision possible. I will focus in on the primary resident condo market as opposed to investment properties in Aspen or on the ocean. Condos are built with a specific client in mind. Condo owners are typically first time homeowners who have good credit, previously were renters, who wish to enter the housing market. They often times use the condo as a stepping stone into the single family housing arena but can not afford to do so at this time. Or the condo owner enjoys the relatively maintenance free lifestyle that a condo offers.

The risk in ownership and potential depreciation in value lies in the age of the condo, management, Home Owner’s Association, availability of other condos in the complex as well as the town, taxes, and the barrier to entry for developers in the market place.
There are very few condo complexes in my region that I would recommend. The first thing that I look at would be the town in which the complex is located.

1. Has the town approved similar condo complexes that have yet to be built and would be in direct competition with the one in question?
2. More importantly, do the existing complexes or the one you are looking at have approvals in place for the developer to build more when the market shows signs of turning?
These two questions are critical in determining your risk and the probability of a further decline in value. Developers can typically be much more aggressive in their pricing of individual units and you will rarely win when trying to go head to head in competing for the attention of buyers.
3. Pay close attention to the spread between the cost to rent, own a condo, and a detached single family. The greater the gap in between these three factors will reduce your risk.
There are a couple of condo complexes in the Southeastern portion of CT that I would feel extremely comfortable in recommending to potential buyers. Unfortunately they comprise only a small fraction of the condos currently on the market and are losing value at a fast pace.

P.S. I do not have any affiliation, ties, or listings currently in the complexes being recommended.