Timing, as in "when to buy or sell", is usually based more on personal circumstances than market conditions and in reality, condition and location are much more likely to affect relative value than are any seasonal variations.

In addition, there is actually very little advantage in "when" if you are going to both buy and sell in the same general time frame. The fact is that they are always "in balance". By that I mean that, if you sell in a presumably hotter market segment you may well get a better price; however, if you then have to buy in the same period, you will probably give back those gains in that second transaction.

Given that little proviso, that’s not to say that there aren’t some timing considerations that, should they fit your overall plan without completely disrupting your life or forsaking your goals, might either help you get a better return on your very considerable investment or just simply achieve a more efficient sale.

The first of the timing considerations is the season. The real estate market is cyclical and the first quarter is traditionally the strongest. Thats the time when the largest number of homes come on the market and when the greatest number of buyers are out shopping (Whether that can be attributed to a holiday season spent crafting resolutions and plans for the New Year or simply the arrival of Snowbirdus*, is a matter of conjecture).

Conversely, due to the holidays, December is the slowest month of the year. However, the good news is that sellers can be assured that the buyers who are "looking" during this period are serious and buyers can be encouraged by the possibility of finding a seller who may be as focused on tax issues as market values (If they can offer a quick closing, they may be able to find great value).

One interesting seasonal observation is that "single story" homes sell best between September & May and "two story" homes sell best during the late spring and summer months. The former can be directly attributed to the market having an older buyer profile in those months and the latter to the desire on the part of the "family" buyer (who may need the additional square footage that the two story can offer) to make their move between the school years.

 Those with the best chance of using the seasons to their advantage are the new homebuyers, who have nothing to sell, and the buyers of new homes. In the latter case, with building periods extending out as far as two years in some cases, an individual who is not adverse to moving twice (they may need to find a rental for a bit to achieve their goals), can actually purchase in the slower Winter season and offer their property for sale for the hotter "Spring" market.

Another "best time" issue involves both interest rates and the economy. In 2009, we had an interesting opportunity created by these factors. Interest rates were near historic lows due to aggressive attempts by the Federal Reserve to stimulate a declining economy and the result was that the segment of the market most driven by interest rates, the lower priced properties, was selling aggressively and commanding good prices. At the same time, the higher priced properties were being negatively impacted by thethe recessionj and, as a result, were contracting their prices. It was the best "move up" market that we’ve had in quite some time.

Incidentally, periods with lower interest rates not only favor buyers, but sellers as well. The improved affordability factor widens the pool of buyers that can purchase in their price range and creates competition.

As you can see, there are many factors involved in making a decision to move. The best generic advice that I can offer is to call me let me address the specifics of your situation. There is, of course, no cost and no obligation.

 * Snowbirdus –(a. k. a. Snowbirdus Amongus) a mythical creature that descends upon the Valley of the Sun each winter from such nesting places as Illinois, Wisconsin, Iowa, etc. Snowbirdus is reputed to mate with the Phoenix and, as mythology suggests, brings prosperity to the land.

There is one phrase, often heard in the real estate business, which always fills me with a sense of foreboding (actually, there are several ...but those stories are for another day).

This one is "we’ve just bought a brand new home from a builder and would like to talk to you about selling our home". On the surface, that sounds like great news (and I wouldn’t even want to suggest any lack of enthusiasm on my part). But, I know deep down that I am going to be living through all of the usual ups and downs with my clients that are associated with building a new home. I also know that I’m going to be quietly frustrated (although I would never actually say a word) because I know that had I been involved from the beginning, I could have eliminated some of the missteps and the angst.

I’m quite aware that the intoxication that one experiences when visiting builder’s models is almost impossible to resist (after all, it still affects me after all these years) but experienced representation is almost essential to insure that you get maximum value and that the process goes well.

To cite just one example of how I can be of assistance…. I always schedule formal inspections at specific intervals during the construction process. Within the last year, that type of inspection has saved several people thousands of dollars by resolving problems that would have resulted in "long term repair issues".

Contrastingly, I know of several buyers (who proceeded on their own) who are now involved in extensive and expensive litigation with some of the reputably "best" builders in the valley. In what is just an amazing coincidence (ahem), I am in a unique position to help. I was an award winning new homes salesperson for over 5 years and I know all of the ins & outs of the process. I can save you both a little money and a lot of misery.

By the way, you should understand that builders do not reduce their prices if a broker is not involved (so why not avail yourself of representation) and, when I am involved in more than one transaction with a client, I always discount my listing fees. That means that your net cost will ultimately be considerably less. So, call me first, before you visit any new construction. It’s in your best interest.

It is important to understand that there is no single marketing method that will guarantee the sale of your home. The best Realtors will provide you with an array of services ranging from the basic, listing your home in the Multiple Listing Service, to the truly exotic, like burying a statue of St. Joseph in the front lawn (Hey, there is a ton of anecdotal evidence that this actually works and, in any event, what could it hurt)? More realistically, a comprehensive program would include such elements as direct mail, advertising, open houses, Realtor tours, etc.

However, to focus on the role of advertising which much of the general public believes to be the most powerful tool in a Realtor’s arsenal, let’s start by saying that while it’s an essential and valuable component of a good marketing plan, if one relies on it exclusively, they will most likely be disappointed.

Having a home sell directly from a specific ad actually occurs in less than 2% of the cases (which is why trying to market a home on your own is such a difficult task).

The key is to find a broker who is advertising an array of homes in your community at any given time. The reason for this is that, in my experience, the buyer of a $400,000 single level home with a pool is very often someone who initially called on the ad for the $300,000 two story with the golf course view.

In support of this concept, I consistently run display ads the real estate section of the major area papers (in addition to my other regular classified placements) and am just as consistently in various full color magazines that service our market area. This provides me with a virtually continuous stream of potential buyers.

A short sale is a real estate transaction in which the proceeds fall short of the balance owed on the mortgage.

This type of transaction is used primarily when the mortgagor (property owner) has suffered financial hardship and, as a result, the bank or mortgage lender agrees to discount a loan balance in order to avoid having the home go into foreclosure. This process is usually handled by the lender’s loss mitigation or workout department and they have the right, as you might imagine, to approve or disapprove any proposed sale.

In essence, the homeowner/debtor sells the mortgaged property for less than the outstanding balance of the loan, and turns over the proceeds of the sale to the lender, which sometimes (but not always) will accept it as full satisfaction of the debt.

The decision to approve a short sale is generally predicated on determining the most economic way for the bank to recover the amount owed on the property or some portion thereof. For instance, a bank will allow a short sale if they believe that it will result in a smaller financial loss than foreclosing. The foreclosure option usually includes substantial legal costs, extensive carrying charges and the property almost always brings a lower price at auction than can be obtained when a homeowner offers their home directly to the public. A bank will typically compare the contract amount with the fair market value (FMV) of the property. The latter is determined by obtaining a Broker Price Opinion (BPO) or an appraisal.

For the home owner, advantages include avoiding the impact of a foreclosure on their credit history and exercising some control of the potential deficiency based on the sale price they accept. However, while a short sale is typically faster and less expensive than a foreclosure, it does not automatically extinguish the remaining balance unless such a settlement is negotiated with the lender.

Short sales are relatively new to the residential marketplace but are actually quite common in standard business transactions. In the business environment, it’s generally recognized that lenders take risks when extending credit and there is little stigma involved when a borrower can’t meet their obligations. In such situations, inventory and assets are generally liquidated as expediently as possible

The most obvious reason is that it is a way to minimize their losses. Foreclosures are expensive and an owner’s sale almost always yields more than an auction might. It also helps to reduce their exposure from “bad loans” which could allow them to avoid having to increase their cash reserves.

The short sale can also reduce the workload for their somewhat overwhelmed loss mitigation department while allowing them to take advantage of Federal Government Incentives designed to encourage lenders to clean up their act.

If there is just one bank involved and assuming everything goes well, the process generally takes about 60 –75 business days (about 3-4 months). However some banks, have been known to get the job done in about three weeks, while others can take as long as six months to process a short sale.

It largely depends on how the short sale is listed on your credit report. If it is going to appear as a charge off, it will have negative consequences. However, if it appears as a balance paid and the mortgage account closed, the impact could be minimal.  If it does appear as a charge off, many sources suggest that your credit score could drop by as much as 200 points. However, there is anecdotal evidence that the drop varies by individual and, in some case, can be as little as 100 points.

The key advantage of a short sale versus a foreclosure is the recovery time. You may be able to buy another home after just 24 months as opposed to the 5-7 year prohibition that results from a foreclosure.

No! Property ownership is not impacted by a short sale and you and your buyers will receive the usual title insurance policies, assuming that the lender provides their written approval of the transaction.

A short sale provides a better option if you are facing a foreclosure. First, the short sale option will most probably reduce your tax liability because foreclosures properties are usually sold at auction and at rock bottom prices. If the short sale means that the bank recovers more against the original mortgage amount, then you pay less in taxes on the cancellation of indebtedness income tax discussed in article above.

Second, according to new guidelines released by the FHA within the past few months, people involved in a short sale will be able to apply for an FHA home loan within 2-3 years. These two factors make the short sale a much better option long-term. Please consult a CPA or a tax accountant with regard to your specific situation.

Lenders usually will not entertain a Short Sale request if the payments are current, though some exceptions may exist.

It is possible that the Lender will require the Seller or another party to the transaction to pay fees or costs above what the Lender is willing to absorb.

The Lender will generally pay only the normal Seller closing costs. These include the customary title and escrow fees, pre-approved Real Estate commissions, normal HOA transfer and disclosure fees, documentary costs, taxes and recording fees. Any additional repair and maintenance costs, delinquent HOA fees, judgments or liens will require specific approval. Real Estate commissions may be reduced by the Lender regardless of the amount stated in the Listing Agreement.

The sale will close once the following conditions have been met. The lender approves the contract in writing and stipulates an amount for their reduced payoff. The buyer's lender fully approves the new loan and funds the loan amount to the escrow company. And, after all the requirements listed in the Commitment for Title Insurance have been satisfied or removed.

The Seller's Lender is being asked to take less than they are owed in return for releasing their loan. The sales price and costs in the transaction will affect the amount that remains for the loan payoff, so the Lender actually becomes another principal in the transaction.

Often the Lender will stipulate an amount for the loan payoff that they will accept in the form of a counter offer. In that event, the Buyer, Seller and other interested parties may choose to contribute more money in order to make the sale work. If the Lender rejects the Contract outright then the parties can always agree to increase the purchase price and re-submit the offer to the Lender.

No. The Trustee Sale can be held on schedule even if there is a contract under consideration.

Not automatically. You should inquire about this and specifically request the Sale be postponed if needed.

We will contact your lender's Loss Mitigation Department as soon as the property is listed and will request a list of all the Lender's Short Sale requirements. Some Lender's require that a contract be in place before they will send a package, but the earlier we make the contact, the better.

Once written approval has been obtained from Seller's Lender, they will usually stipulate a time by which the escrow must close. The Buyer should be ready to close as soon as possible. This means that Buyer's Lender will need to expedite the new loan processing, appraisal and approval. Buyer should expedite all necessary inspections and arrange to have funds needed to close.

If the escrow has not closed in time to satisfy Seller's Lender then a new written authorization to close will be required. Since the Lender's time requirement is often based upon the net loan proceeds they will receive, it is often necessary for the Lender to obtain new approval for any additional costs incurred by the delay. This approval can take time and is not automatic.

This may or may not be the case and depends on a number of factors. NEVER make any assumption regarding taxes. All parties should obtain professional financial advice regarding the transaction. The Real Estate Agents and the Escrow Officer can not give any legal or tax advice.

A general rule of thumb is to allow at least 90 days from the date on which the contract is signed by both the Buyer and Seller. You may consider adding a provision that the sale can close earlier if the lenders approval is obtained.