Dallas Real Estate and Short Sale Blog

As a major Plano Texas listing broker, I spend most of my time marketing my listings and servicing clients. As part of any listing I discuss staging and showings with my sellers. While I always discuss the importance of having lots of light in the home, I never gave any thought to the impact of Compact Fluorescent Lighting (CFL).

CFLs have become wildly popular because they offer far more energy efficiency than the traditional incandescent light bulb. The downside is that CFLs take a few minutes to reach full brightness. Normally this is annoying at best.

Today, I was out showing and realized that this delay might have an impact on how potential buyers feel about a home. You see, the buyers we were showing a property commented on how dark and dreary the home was!

I’m recommending that sellers go back to traditional light bulbs while on the market. You can also consider one of the new CFLs out that come up to full power much quicker or LED light bulbs that have no delay.

You only get one chance to make a great first impression…let there be light!

Photo: Copyright 2011 Tom Branch

I was reading a blog post written by Leslie Ebersole titled, "Is Your Home Listed to Sell or Listed to Sit?" Leslie writes about making the most of every showing.

I often talk about having your home in Show-Ready condition. What is "Show-Ready"? Here's a little background before we answer the question.

Homes sell on either emotion or price. Homes that create emotion with buyers sell faster and at a higher price. Many sellers hire a professional stager to help create that warm and inviting atmosphere. While professional staging is a great idea, we've seen staged homes that would look even better if they were "show-ready."

Most sellers know in advance that their home will be showing. When you get that call, it's almost show time! Have a plan of action to get your home in show-ready shape:

• Open all the blinds and turn on all the lights including the garage and walk-in attic. Homes that are light and bright appear larger and more inviting. If you have ceiling fans, turn them all on low.

• Have some soft music playing. If you have a media room, leave a movie playing with the sound turned down low.

• Scents are important to creating emotion. In years past, we would leave a drop of vanilla on a light bulb. When the agent turned on the light, the heat would release the vanilla fragrance into the air. Times have changed and now we can simply purchase small air fresheners. While some fragrance is good, too much can be overpowering. If you can, burn a candle until you have to leave. Candles often smell more natural than the artificial air fresheners.

• If you have time, run the vacuum cleaner over the carpets. Buyers notice when the carpets look like nobody has walked on them.

• While you may love your pets, many people are afraid of them and they often get in the way. Taking your pet with you during the showing is the best idea. Some dogs are crate-trained and sit quietly in their crate. However, there's nothing more annoying than listening to a dog bark the whole time you're viewing a home.

• Don't be there when the agent and buyers arrive. It's awkward and makes the buyers uncomfortable. Buyers want to be able to peek into closets and kitchen cabinets. They want to be able to discuss what they like and don't like with their agent and each other. If you're there, it will be a short showing! Leave the selling to the agent.

Many sellers assume the showing agent will arrive ahead of time to get the home show-ready. If I'm only showing one home, I often arrive early and get the lights on. However, if I'm showing 10 homes, I have the buyers with me and we both walk in at the same time for that important first impresion.

Buyers decide in the first 60 seconds if they like the home. Get your home show-ready and make the most of that minute!

Source: http://www.thebranchteam.com/wordpress/2011/06/20/are-you-show-ready-2/

We currently have a home listed for sale. The homeowners have been relocated to a different state and the home is vacant. We received an excited phone call from the seller this afternoon. She had received a full-price offer on her property! Since we have an exclusive right to sell listing agreement, I was curious how someone got the offer to her directly, but an offer is an offer.

We had her fax it over to us to review. Rather than a contract to purchase, it truly was just the transmission of an offer. They were offering full price with a $10 earnest money deposit. Out of the norm, but it was a starting point. I was doing okay until I read the conditions:

"Seller agrees to leave the existing financing in-place and/or finance Buyer's assignee or successor buyer." This one should be a huge red flag for any seller. Basically, they will deed their property to a new owner but not pay off their mortgage. Wrap mortgages can be done in some states but most modern mortgages include a Due On Sale clause which states that the balance is due when the property is sold. Some of these companies will tell you that they bank will not exercise the Due On Sale clause but I've actually seen it happen when a buyer transferred his rental property into a Limited Liability Company.

"Sales price is contingent upon the condition of the property, the actual Fair Market Value, and current market conditions." While they're offering full-price, it can be adjusted later based upon a number of factors.

While I personally classify this as a scam, do yourself a favor and do not become involved in this type of "sale" without consulting with an attorney.

It’s that time of the year again. Many of us are picking up our mail and trying to get our tax documents together so we can prepare and file our 2010 returns.

If you completed a Short Sale of a house in 2010, you will likely received an IRS Form 1099C showing the amount of debt that was cancelled in the Short Sale process. Don’t panic! The Mortgage Forgiveness Debt Relief Act applies to debt forgiven in calendar years 2007 through 2012.

According to the IRS website:

The Mortgage Debt Relief Act of 2007 generally allows taxpayers to exclude income from the discharge of debt on their principal residence. Debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with a foreclosure, qualifies for the relief.

The best course of action is to contact your tax preparer or CPA, or you can download IRS Publication 4681 for guidance on the topic.

Photo Licensed from iStockPhoto

Source: http://www.thebranchteam.com/wordpress/2011/01/26/short-sales-and-irs-form-1099c/

According to the Distressed Property Institute, more than 80 percent of distressed homeowners who go into foreclosure have never contacted their lender or a real estate professional for help. That’s a staggering number when help and relief are available.



Without fail, our phone rings off the hook near the end of every month from desperate homeowners looking for help. After checking the local foreclosure lists, we often find that the house is already scheduled for foreclosure the following week. At that point, it’s nearly impossible to get a Short Sale in place to stop it.

An important thing to understand about Short Sales is that the process is anything but “short.” The only thing “short” about a Short Sale is the payoff to the lender. The sooner the homeowner contacts someone for help, the more time is available to work the Short Sales process.

We encourage homeowners across the United States to get educated on the options available should they become financially distressed. Short Sales are a great tool, providing relief to all parties.

Just remember to choose a REALTOR® with a proven Short Sale track record to negotiate on your behalf. Making the right choice can mean the world of difference to your financial future.



Photo licensed from iStockPhoto | Based on "The Field Guide to Short Sales" © 2010 - Tom Branch and Gina Branch

I've been meaning to write this blog for a while but I had forgotten about it. I was showing a home today and there was water everywhere in the laundry room at one of the properties. As I looked around I noted a small trickle at one of the laundry room washing machine faucets. The water was running down the wall soaking the sheet rock and puddling up on the floor. I made a quick call to the listing agent to let her know.



It reminded me of a listing I had had in Frisco. The owner had painted the house and put down fresh carpet so it would look nice and sell quickly. She had moved out of state and the house was vacant. It was a slow time of year and there were not many showings. I dropped by the house one day only to find the new carpet soaked in water! I traced the source back to a dripping laundry room faucet that day as well. Luckily we were able to have the carpet dried and suffered no real damage other than the several hundred dollar clean-up bill for the seller and several hours of my time making sure it was taken care of.

I used to recommend that sellers vacating a property cap off the laundry room and ice maker faucets. After that day, I started providing my sellers with the caps. I purchase them at my local hardware store and a set of three costs about $10. Not only is it an added service but it might just save the seller a bunch of money and myself a lot of time.

Cap those faucets before you move!



Photo Copyright 2010 - Imaged2Sell

Source: http://www.thebranchteam.com/wordpress/2011/01/09/cap-the-faucets-before-you-move/

David and Wendy Miller own a beautiful four bedroom home in the Dallas suburbs where they're raising their two young children. They have a large wooded yard for summer fun, backyard barbecues, and where their dog, Jake, loves to chase squirrels.

The Millers have lived on Cypress Drive for seven years and have become close friends with the neighbors around them. The children take turns playing at each other's houses, and the adults frequently get together on the weekends for neighborhood cookouts. While the Millers have the same everyday stresses as the typical American household, they are a genuinely happy family.

Then a bomb drops out of the clear blue sky. David gets called into his boss's office and is told the company has to lay off several employees due to the weakening economy, and he is one of them. David is completely shocked. He's worked for this company for 10 long years and has given it his all. And now to be let go with just two weeks' notice? How will he tell Wendy? Just the thought makes him sick to his stomach.

As a Business Analyst for a large corporation, David earned $60,000 a year plus full benefits. Wendy works as a Marketing Manager in the hospitality industry and brings home about $50,000 a year. Losing more than half the household income will put a huge financial strain on the Millers.

David shuffles through the door at the end of a devastating day and breaks the bad news to Wendy. After the initial shock and panic, they quickly formulate a plan to keep their heads above water. David has a couple weeks' notice and then he'll be eligible for unemployment. In the mean time, he'll hit the pavement hard looking for a new job. They'll cut out most of their discretionary spending, and hopefully there won't be too much down time between jobs.

Unfortunately, it seems like no one is hiring. Days turn into weeks and weeks turn into months and David is still without work. Something has got to give. The credit cards are now maxed out, and the bills that are being paid are being paid late.

Another month passes. The Miller's hard earned savings is gone, and the mortgage is looming. As hard as they try, they just cannot make their money stretch far enough to cover the house payment this month. Same with the next month.

David and Wendy are horrified that they might lose their home to foreclosure. What will their neighbors, friends and families think? They are honest, responsible adults and have never had problems managing money or paying their bills on time. Their pride is hurt, they are terribly embarrassed, and don't know where to turn.

This scenario is quite common. Most of the homeowners we help are good people who have just had bad things happen in their lives. We encourage homeowners across the United States to get educated on the options available should they become financially distressed. Short Sales are a great tool, providing relief to all parties.

Just remember to choose a REALTOR® with a proven Short Sale track record to negotiate on your behalf. Making the right choice can mean the world of difference to your financial future.

Based on "Avoiding Foreclosure - The Field Guide to Short Sales", Copyright 2010 - Tom & Gina Branch | Base Photos Licensed from iStockPhoto

Dave Liniger, Chairman and Cofounder of RE/MAX International recently published an article titled, “Selling It Short” in DS Magazine. The article is a report card on Short Sales in general and where he thinks we’re headed in 2011.



Dave focuses on three major areas; avoidable problems, untrained agents, and good ideas.

“...it’s time for avoidable problems such as lost files, conflicting responses, and inadequate communication to be minimized or eliminated altogether,” he wrote. While we don’t see much of this these days, the delays as the file gets bounced from negotiator to negotiator can be very frustrating for the agents, seller, and the buyer.

In our book titled, Avoiding Foreclosure – The Field Guide to Short Sales, we wrote, “If you are in the position to buy or sell a house through a Short Sale, ONLY work with a real estate agent who is well-versed in the Short Sale negotiation process.” Dave had the same thoughts when he wrote. “Unprepared agents who enter this arena - where even the simplest sale is still a complex, multilayered transaction - do a disservice to consumers and the industry as a whole.”

The real jewel in Dave’s article was his thoughts on “Good Ideas”. He wrote, “The best idea might be the frontloading of lender decisions regarding acceptable terms. A listing agent who knows that the required net proceeds have already been determined can take the leap and proceed with good faith and confidence that a reasonable offer will be considered seriously. Using this as a starting point, rather than the submission of an offer, gives the agent a valuable edge in marketing the property as well as managing the expectations of the servicer, the seller, and the potential buyers. It’s a better way to go.”

As a major Short Sale listing broker, I have to agree that this would be a great idea. We already do it with FHA Short Sales. The only issues we run into here are poorly completed BPOs or appraisals where the value is so out of line with what the market that it makes selling the property impossible. Lenders should have processes in-place that will allow us to challenge the values rather than leaving us stuck with that value for 120 days.

We encourage homeowners across the United States to get educated on the options available should they become financially distressed. Short Sales are a great tool, providing relief to all parties. Just remember to choose a REALTOR® with a proven Short Sale track record to negotiate on your behalf. Making the right choice can mean the world of difference to your financial future.



Photo licensed from iStockPhoto

Kim Fischer - NBCDFW.com

October 8, 2010

When it comes to staging your home for sale, making small changes can make a big impact with a potential buyer.

Click here for video.

Gina Branch was interviewed as part of this story that aired on NBC 5 News on October 8 and October 9, 2010. You can see more of us "in the media" by clicking here.

We were out showing homes and began wondering why so many occupied homes are not properly prepared for showings. The sellers knew we were going to show their home several hours in advance and yet most of them were not "show-ready" when we arrived.

What is "show-ready"? Here's a little background before we answer the question.

Homes sell on either emotion or price. Homes that create emotion with buyers sell faster and at a higher price. Many sellers hire a professional stager to help create that warm and inviting atmosphere. While professional staging is a great idea, we've seen staged homes that would look even better if they were "show-ready."

Most sellers know in advance that their home will be showing. When you get that call, it's almost show time! Have a plan of action to get your home in show-ready shape:

• Open all the blinds and turn on all the lights including the garage and walk-in attic. Homes that are light and bright appear larger and more inviting. If you have ceiling fans, turn them all on low.

• Have some soft music playing. If you have a media room, leave a movie playing with the sound turned down low.

• Scents are important to creating emotion. In years past, we would leave a drop of vanilla on a light bulb. When the agent turned on the light, the heat would release the vanilla fragrance into the air. Times have changed and now we can simply purchase small air fresheners. While some fragrance is good, too much can be overpowering. If you can, burn a candle until you have to leave. Candles often smell more natural than the artificial air fresheners.

• If you have time, run the vacuum cleaner over the carpets. Buyers notice when the carpets look like nobody has walked on them.

• While you may love your pets, many people are afraid of them and they often get in the way. Taking your pet with you during the showing is the best idea. Some dogs are crate-trained and sit quietly in their crate. However, there's nothing more annoying than listening to a dog bark the whole time you're viewing a home.

• Don't be there when the agent and buyers arrive. It's awkward and makes the buyers uncomfortable. Buyers want to be able to peek into closets and kitchen cabinets. They want to be able to discuss what they like and don't like with their agent and each other. If you're there, it will be a short showing! Leave the selling to the agent.

Many sellers assume the showing agent will arrive ahead of time to get the home show-ready. If I'm only showing one home, I often arrive early and get the lights on. However, if I'm showing 10 homes, I have the buyers with me and we both walk in at the same time for that important first impresion.

Buyers decide in the first 60 seconds if they like the home. Get your home show-ready and make the most of that minute!