Selling a Senior's Home

What Seniors and Adult Children are Asking

                    By Dawn O’Neal ~ Realty World Executive Advantage

When our loved one’s ability to live on their own has become a major concern for their health and/or safety, it is not an easy decision to make if they are going to move or if you can have someone come into their home and help them stay in their familiar surroundings.

1. Staying in their home with in-home help is always the first choice a senior will want if they have the capacity to make that choice.

2. Children’s Home – moving in with son or daughter

3. Care Center:

a. Independent

b. Assisted Living

c. Full Care

Unique issues and complex decisions
Selling a senior’s home really is different and can be much more complicated. You will most likely be dealing with several unique issues and complex decisions during the process. Though seniors usually make the decision to sell, it is not uncommon for their adult children to be involved in the process. Guilt can also play a factor in your emotions that many people might feel when they have a job they must attend to and feel they should be taking care of Mom/Dad also but time just does not allow you to do both.

See your house as an investment
Once the decision to sell has been made you need to start looking at the home as an investment. That involves selling the home for the most money, in the shortest time and with the least amount of inconvenience.

For most people a home represents the largest part of their net worth so getting the maximum price for the home is of utmost importance. Many seniors will be living on a fixed income; therefore the equity in their home becomes an integral part of their overall financial plan.

Put together an action plan to effectively market your property for top dollar.
Consult with a Seniors Real Estate Specialist - SRES®

The issues facing senior citizens when selling their home are much different than for younger people, and some real estate agents have little idea how to resolve them. A mistake can be very costly, and for that reason any senior looking to sell their home should consult with a specialist. This professional normally maintain a network of other senior-focused professionals who can assist in tax counseling, financial and estate planning, and other aspects of the sale and move.

Create a marketing plan Once you have selected an agent that you feel confident about and are comfortable working with, it is now time to put together a marketing plan for the home.

Comparative Market Analysis The first step is to have your agent prepare a CMA (comparative market analysis). This is a key piece of information as it compares your property—the subject property—with other homes in the area known as the comparables.

The CMA will compare your home against other homes that have sold in the last 60 days, are currently listed for sale or homes that are pending for comparable prices yet to close. The latter will not have as much bearing as the sold as the actual selling price is not known.


Determine your listing price
Once the agent evaluates the information and makes the necessary adjustments to make the subject property as close to the comparables as possible, it is time to determine a listing price for the property.

Under pricing and over pricing
Many seniors, once they decide to make the move, often make the mistake of "under pricing" the property in order to secure a fast sale. This is not recommended and should be discouraged.

In order to sell the property for maximum dollar, caution must also be taken not to "over price" the property either. This is also a very dangerous strategy as it will assist in selling other properties in the area.


Pricing and Buyers
Pricing a property within the recommended range will bring in around 75-80 percent of prospective buyers. Even in a hot market pricing the property too far above market value will limit showings as only 5-10 percent of all eligible home buyers will see the home. Listing the home below market value will guaranty that 100% of potential home buyers will see the home but again this is a very dangerous area. The public will perceive this to be a bargain which could result in the seller getting far less than what the home is worth. Selecting a proper listing price is one of the most important factors when selling a home.

Seller’s market or buyer’s market?
 During the listing of your home your agent should have discussed the current market conditions presently being experienced in your area. You should have a general understanding of how the local real estate market works, along with the forces and influences affecting your local real estate market at the present time.

Questions like whether it is a seller’s or buyer’s market should be answered. Perhaps the market is more balanced. If so, your agent should be able to tell you what effect this will have on the price and the average number of days it takes to sell a home like yours.


Listing on MLS
Another important factor when marketing the home is to list the property on MLS. The multiple listing service is a very important tool to help gain maximum exposure because it markets the property to all the other realtors who are members of the real estate board. It also gives the public access through the public MLS site that is supported by the real estate board and its members. Care must be given to the actual physical showing of the home while the Senior is living in the home so that all precautions for safety and privacy is carefully considered for each individual person.

If you have any questions or concerns, please do not hesitate to call me for a free consultation to see what the best alternative might be for Mom or Dad. I have some excellent referrals that are ready, willing and able to help you and the entire family decide what might be best for your loved ones and it is NOT always selling the home. Alternative in-home care could also be a consideration; reverse mortgage; moving to an independent housing facility; etc.

I have case workers that can help you evaluate, consider costs and locations and determine what will make both your lives and your loved one’s lives more rewarding for both of you and reduce the stress sometimes affiliated with caring for the elderly.


After all, when our parents are in need of our help, we want to take care of them with the same love that they cared for us with.

Dawn O'Neal
Broker~Owner~REALTOR®
Realty World Executive Advantage Real Estate Broker License #01101500 – Over 20 years experience GRI®, CRS®, LTG®, RRC®, PMN®, ASP®, e-PRO®, SRES®, CIPS®, TRC®, SFR®, CHS®
(408) 923-7758                           www.DawnOneal.com
Exceeding Expectations ~ ALWAYS! TM

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Here is a great article from The New York Times that our California Association of REALTORS® shared for your information.....

Getting back in the black
More than 2.6 million households are at least 60 days delinquent on their mortgage payments, according to the nonprofit coalition Hope Now. While those who are delinquent 60-120 days can make back payments to help them become current, those who are more than two months behind may need to employ other means to catch up.

Making sense of the story

• Beyond the obvious threat of foreclosure, falling behind on a mortgage can be costly:  Lenders charge late fees as well as legal and administrative costs, and the borrower’s credit score will suffer.  Experts say the sooner a delinquent borrower deals with the situation, the better the chances are of making a full economic recovery.
• Borrowers who are determined to stay in their home but cannot immediately make back payments need to start by contacting their lender or a credit counselor to discuss available options.  Among them are devising a repayment plan, modifying the loan, doing a short sale, and adding what is owed back into the mortgage balance.
• The first step borrowers should take is to assess their financial situation by looking at the amount of money brought in each month versus what is spent.  Many credit and housing counselors have worksheets on their websites to help with this.
• Next, borrowers should collect pay stubs, documentation on other income, two years’ worth of tax returns, two months of saving and checking account statements, and mortgage records.  If the borrower has experienced a hardship, such as a layoff, a divorce, or an illness, they should gather evidence of that, such as unemployment insurance receipts, medical bills, a copy of a doctor’s letter to their employer, or a divorce decree.
• Finally, borrowers should talk to their lender, servicer, or an adviser.   The federal Dept. of Housing and Urban Development certifies counseling agencies that provide free advice and assistance, and has a list of them on its website.  Counselors can offer alternatives and prepare a budget to see if the homeowner can afford to stay in the house.

·        Before agreeing to a repayment schedule, it is important homeowners understand how their lender treats partial payments.  Some credit partial payments toward the balance immediately, while others hold the money in a “suspend account” until the full amount is received.  Some will return the check to the borrower, and some will stop accepting payments after the mortgage is seriously delinquent. In those cases, borrowers may be foreclosed, or work out a short sale, or get a family member to help them repay the entire balance.  But whether you agree to a reduced payment schedule, borrow money from family, or raid a retirement account, Ms. Yopp said, “if you haven’t resolved the reason for the delinquency, you’re still in trouble.”

        Whatever path you choose to take, do NOT wait until the last minute to contact your REALTOR or attorney to seek assistance and answers.  If you wait too long, there is nothing they can do to help you stop the process if you have run out of time.  Also, do NOT pay someone upfront for services without asking for references, checking their credentials, or talking to someone who has had experience with them.  There are many legitimate services out there, and some of them are free; but there are also many scam artists.  Be smart and ask questions.  Happy New Year 2012 Everyone!!!!  Dawn

Investors….. They STILL don’t get it!

I recently had a short sale go south. This is so sad because now the Buyers lost an opportunity to become homeowners and the investors lost the chance to recoup almost 75% of their money. The property will now go into foreclosure; the lender will get less; the buyer will not own the home; the seller will have a bigger ding on their credit; all the work 2 agents performed for the clients will not be compensated and we still hear that REALTORS® are the only ones who benefit from short sales. We work for free a good percentage of the time.
I have personally put about money and 100 hours into this short sale with my seller and to have this happen just shows how broken the process is. Here is the scenario:
Property listed at $475,000 – Good FMV for condition & comparables
Offer came in low at $420,000 – Low but good solid buyers
2 months after getting all the paperwork to the lender we get a negotiator
Negotiator says the investor wants $575,000 ($100,000 OVER list)
Buyer said they will come up to $450,000 as it needs about $80,000 work
Investor declines and takes it to foreclosure

Bottom line is that it MIGHT sell for $400,000 to $450,000 down the road but that is more time under the bridge and no one in the original scenario will be involved with the outcome. What a HUGE waste of time and money!

The only ones that benefit from a short sale are the REALTORS®

The only ones that benefit from a short sale are the REALTORS®

These are the words a very good client and friend told me her bankruptcy attorney said to her. At first I was really angry and decided to sleep on it until I could write about it objectively so here goes…..

YES – REALTORS® do profit from the sale – Eventually AND Sometimes. Fact of the matter is that, (from personal experience), 10 times the work goes into the process even before the work on the regular contract begins. All documentation needs to be collected from the sellers and maintained until the bank(s) decide to move on the request. All financial records need to be maintained for the seller during that time and, many times, repeatedly faxed/uploaded/mailed to the lenders because they lose them.

NO – the seller actually will benefit from doing a short sale versus a foreclosure in their credit score. The impact can be significantly lower on their FICO score as will the length of time one will carry that stigma around with them. A short sale is typically reported as “paid in full, or settled”. Only the late payments on the mortgage will be reflected after the sale is paid or negotiated.

Since there are so many short sales that take so long and many that never close, the income for many REALTORS® has significantly declined or dried up completely. There are a lot less of us out there today trying to help clients get through this economy. We joke, but it is not funny, that we might make $.36 per hour on a short sale IF we are lucky.

The best thing a seller can do if they think they need to sell their home and they are upside down in the payments or equity is to call a REALTOR® sooner rather than later to see if we can help you through this process.

I heard recently on a webinar that the estimate of Americans needing mortgage assistance, needing help with a short sale or going into foreclosure has increase by 600% to 800% over the past 2 years.

If you know of anyone who needs help, please have them call me or another REALTOR® experienced in short sales before it is too late to help.

Image by silverhawk42532 via Flickr

$399,888 BUCKINGHAM! AVAILABLE TO RENT AT $2,000 PER MONTH.


Location! Location! Location! BEST COMP VALUE!
2889 BUCKINGHAM DRIVE in premier Buckingham, Kelseyville, Lake County, CA
For more pictures see www.2889BuckinghamDr.com
• ALL NEW REMODEL
• 2,000 sq ft (estimated)
• 3 large all new bedrooms, 2 beautiful all new baths
• Gorgeous views -- Buckingham Golf Course and Black Forest
The photos don’t do it justice! Must be seen! This elegant home on Buckingham Drive has incredible style and designer everything. Completely remodeled in a classic palette that you can take in any direction – wine country elegant to lake life to golf and leisure to traditional to urban cosmopolitan, it’s turn-key and it’s a beautiful, blank canvas.
This house is open and spacious and easy to maintain both inside and out. The interior was designed for peace of mind, which makes it a perfect primary or secondary residence. Eco-friendly, maintenance-free landscaping makes life a breeze. Garden if you like, or let it be!

The house has a private lower entrance and the most architecturally versatile floor plan possible. Both floors offer optimal traffic flow for perfect living and entertaining family and friends.

Two levels spanning nearly 2,600 square-feet offer a spacious kitchen with a dining area that flows into a huge great room. Each of the three large bedrooms has double closets for maximized storage and organization.

The two lovely, custom bathrooms boast crisp white Kohler fixtures, designer Azuvi ceramic tile set in a classic pattern, beautiful mirrors and glistening light fixtures, including a crystal chandelier.

The kitchen is brand new and has all the details that matter. The appliances are Consumer Reports’ top-rated line of Kenmore Elite Stainless (don’t be fooled by low-end stainless). The kitchen counters are polished granite. The cabinets are luscious maple with double pantries, occasional glass doors, a built-in wine rack and designer iron pulls. This is a polished kitchen designed for any chef!

The spacious lower level is the perfect opportunity for a home business and home office, guest suite, teen retreat, kids’ play room, media room or home theater, sewing or crafting room, the man cave, billiard room or whatever you desire!

The floors are tiled in a tasteful 16x16 pale travertine and carpeted in a patterned designer Stainmaster with the best, thickest padding available.

The huge “4-car” garage is just waiting for cars, golf carts, boats and other toys! New Liftmaster garage door openers raise two Northwest 10’ by 8’ (standard doors are only 8’ by 7’), double-sided, insulated, steel garage doors, rated as some of the best garage doors in the industry.

The rooms are flooded with light through abundant Viking / Pella ThermaStar vinyl windows, which are the same windows seen in Sunset magazine’s idea house. Oh, the views! The large windows showcase Lake County’s main attraction -- the outdoors! Beautiful trees and magnificent boulders dot the spacious yard. Environmental harmony! Part of a handsome streetscape, the views of the Buckingham Golf Course and the Black Forest make the greens and blues of every season lovely.

This house is your chance to own in Lake County’s premier Buckingham neighborhood at the best price on the market. There is no comparison to homes of this size and quality in this price range.

Homes in this neighborhood run into the millions, but this one can be yours for a fraction of the price…but not for long. The sellers have adjusted the price to attract the buyer who understands the value. If the home does not sell promptly at this price, the sellers will take it off the market and hold it.

Don’t miss this market or this opportunity!

For more information contact:
Dawn O'Neal
Realty World Executive Advantage
Phone 408-923-7758
Cell 408-221-0575
Dawn@DawnONeal.com

What do you offer on a foreclosed property?

A client asked: In a situation like this, (so many days on the market) does one bid lower?? at asking price?? higher??

ANSWER: There is no easy answer regarding what you offer. You just have to look at all the angles.

#1 – What is it worth to you to purchase it? Without looking at the price as a challenge to get the lowest price only for the sake of getting the lowest price, (and I don’t think you do this by the way), look at it to see what it is worth to you. What figure would you be happy with that you paid for the home and walked away with it.

#2 – Let’s look at the sales in the area – this is what the bank is going to do – and they are not going to negotiate much lower than the price in the MLS as they have already gone through all the process of putting this through foreclosure and back on the market. As long as it does not sell they will continue to reduce the price but at some point it will reach the investor’s interest and the “all cash” offers will come in and you won’t have an option to bid on it.

#3 – To offer too much will put you in jeopardy with your lender. If the FMV is not as high as you offer then you have to come up with the difference of your offer and their appraisal – which is the amount they will lend on the property. Not a good idea either.

Once you see this property then we will pull all the comps in the area to see what is a realistic offer for you and analyze that price per the above criteria.

Short Sale Question from Trulia Reader

QUESTIONS:

So in other words..... When an MSL listing is listed as a short sale for say 400,000 and you offer 400,000 that price has not been bank approved?
Why even bother looking at these listings then. It wastes my time- the realtors etc.

Dennis Olson
Both Buyer and Seller
Pendleton, OR

Dennis, You hit the nail on the head. The bank has not even been notified in many instances that the seller is trying to sell it, unless perhaps the seller is behind in their payments. The seller may not have started the process by presenting an offer to the lender that is going to pay the lender less than the seller owes - that is what makes it a "Short Sale". Then the long process starts to get the low offer accepted by the lender rather than the lender spending much more to take the property through the foreclosure process. Short sales I have listed last year took 8 months. This year my shortest one is 2.5 months but most are still 3-6 months.... AND you never know for sure that you are in contract until the bank decides to give you that agreement letter.

Sometimes you need to look at the comparable sales in the area as sellers/agents will list the house really low to get a bidding war going.

What we are finding is that the homes in this price range in California's Santa Clara Valley at least are drawing in the all cash buyers and they are buying them as investments so they do not have the same angst in waiting for approval since it is a business deal and not their new residence.

If you want a home and want it within a reasonable amount of time, yes, stay away from short sales. We, as REALTORS, will appreciate that too - but hey, everyone needs to be helped and that is why we do it also. All joking aside, you just really need to KNOW all the upsides and downsides and be willing to wait if you want to buy a "Short Sale".

Dawn O'Neal
Realty World Executive Advantage
408.923.7758
Dawn@DawnOneal.com