Short Sale and Foreclosure Waiting Periods

As a Realtor who has been heavily involved closing California short sales over the last five years, one of the questions that I get asked quite often from home sellers is how long will it take before I will be able to buy a home again.

The answer to this question does not have any clear cut and dry answer. There are quite a few variables involved when trying to figure out when someone will be able to purchase a home after a foreclosure or short sale.

Going through either a short sale or a foreclosure has the potential to seriously impact ones credit.  Government entities Fannie Mae, Freddie Mac and FHA do not directly loan money to individuals but are the governing body that work with lenders to guarantee loans and free up money to provide mortgages.

Banks typically have the authority to lend to whoever they want but will generally follow the guidelines set forth by these entities. There are some lenders of course that will take greater risks with some borrowers than others.

Below are the general guidelines that FHA, Fannie Mae and Freddie Mac follow when considering a loan after a short sale or foreclosure:

Short sale with VA Loan

• 2 year wait if in default at the closing
• Reduced wait if the borrower has re-established good credit and can show extenuating circumstances

Short sale with FHA Loan

• Can purchase right away with no mortgage default
• 3 year wait if in default at the closing
• Reduced wait if the borrower has re-established good credit and can show extenuating circumstances

Short Sale With Fannie Mae Loan

• 2 year wait if the borrower puts 20 % down
• 4 year wait if the borrower puts between 10% to 20% down
• 7 year wait if the borrower puts less than 10% down
• 2 year wait if the borrower can show extenuating circumstances and puts more than 10% down

Short Sale with Freddie Mac Loan

• 4 year wait before being able to get a loan
• 2 year wait if the borrower can show extenuating circumstances

Foreclosure with an FHA Loan

• 3 year wait before being able to get a loan
• Reduced wait if the borrower can show extenuating circumstances and re-establishes good credit

Foreclosure with a Fannie Mae Loan

• 7 year wait from the completed foreclosure sale date
• 3 year wait if the borrower can show extenuating circumstances. Additional underwriting requirements apply for 4 years after a 3 year waiting period.
• 7 year wait for a 2nd home, cash out re-financing, or an investment property

Foreclosure with a Freddie Mac Loan

• 5 year wait from the completed foreclosure sale date
• 3 year wait if the borrower can show extenuating circumstances

** As a side note a deed in lieu of foreclosure follows the same guidelines as FHA’s foreclosure policy, the same as Fannie Mae and Freddie Macs short sale policy.

When analyzing the difference between completing a short sale or going through a foreclosure in regards to purchasing another property in the future it boils down to the waiting time which is more favorable in a short sale.

What happens to your credit score in each of these events could be different than someone else who goes through the same financial event. Unfortunately, most of the time the higher the credit score the greater the decrease from where you started.

When trying to decide whether a short sale is right for you don’t be fooled into making the decision under false hopes that your credit will not be impacted all that much. The biggest advantage in a short sale is the shortened time frame in which you will be able to purchase a home in the future.

*** The above information for waiting periods before buying a home after completing a short sale and foreclosure was sourced by the Fannie Mae and Freddie Mac selling guides along with the FHA handbook.

We are successfully completing short sales through out the Inland Empire. Short sales are specialized transactions and it’s critical to have the right Realtor representing you. Do not make the mistake of picking an agent that does not understand how to get to the deal closed on a short sale.

Call us for more information on Short Sales – 909-806-0406 or 909-806-0407

The Top 5 Contractor Scams and How to Avoid Them

Protect yourself against contractor scams that threaten to stick you with shoddy workmanship or take your money and run.

The vast majority of contractors are honest, hardworking professionals. Protecting yourself against the few bad apples requires checking references, having a solid contract, and being alert to the warning signs of these top five contractor scams.

Scam 1: I’ll need the money up front

This is the most common ruse reported to the Better Business Bureau. Your contractor explains that because he has to order materials and rent earthmoving equipment to get the job started, he needs, say, 30% to 50% of the project price up front. Once you’ve forked over the dough, one of two things happens: He disappears on you, or he starts doing slapdash work knowing that you can’t really fire him because he’s sitting on thousands of your dollars.

How to protect yourself: Never prepay more than $1,000 or 10% of the job total, whichever is less. That’s the legal maximum in some states, and enough to establish that you’re a serious customer so the contractor can work you into his schedule—the only valid purpose of an advance payment. As to the materials and backhoe rentals, if he’s a professional in good standing, his suppliers will provide them on credit.

Scam 2: Take my word for it

When you first meet with the contractor, he’s very agreeable about doing everything exactly to your specifications and even suggests his own extra touches and upgrades. Some of the details don’t make it into the contract, but you figure it doesn’t matter because you had such a clear verbal understanding. Pretty soon, you notice that the extras you’d discussed aren’t being built. When you confront the contractor, he tells you that he didn’t include those features in his price, so you’ll have to live without them or pony up additional money to redo the work.

How to protect yourself: Unfortunately, you have no legal recourse because you signed a contract that didn’t include all the details. Next time, make sure everything you’ve agreed on is written into the project description. Add any items that are missing, put your initials next to each addition, and have the contractor initial it, too—all before you sign.

Scam 3: I don’t need to pull a permit

You’re legally required to get a building permit for any significant construction project. That allows building officials to visit the site periodically to confirm that the work meets safety codes. On small interior jobs, an unlicensed contractor may try to skirt the rule by telling you that authorities won’t notice. On large jobs that can’t be hidden, the contractor may try another strategy and ask you to apply for a homeowner’s permit, an option available to do-it-yourselfers. But taking out your own permit for a contractor job means lying to authorities about who’s doing the work. And it makes you responsible for monitoring all the inspections—since the contractor doesn’t answer to the inspector, you do.

How to protect yourself: Always demand that the contractor get a building permit. Yes, it informs the local tax assessor about your upgrade, but it weeds out unlicensed contractors and gives you the added protection of an independent assessment of the work.

Scam 4: We ran into unforeseen problems

The job is already under way, perhaps even complete, when this one hits. Suddenly your contractor informs you that the agreed-upon price has skyrocketed. He blames the discovery of structural problems, like a missing beam or termite damage, or design changes that you made after the job began. The additional fees might very well be legit, but some unscrupulous contractors bid jobs low to get the work and then find excuses to jack up the price later. If you’re unsure whether your contractor is telling the truth about structural problems, you can get an impartial opinion from a home inspector, the local branch of the National Association of Home Builders, or even your local building department.

How to protect yourself: Before signing the contract, make sure it includes a procedure for change orders–mini-contracts containing a work description and a fixed price–for anything that gets added to the job in progress. The extra work, whether it’s related to unforeseen building issues or homeowner whims, can proceed only after the change order is signed by both homeowner and contractor.

Scam 5: I’ve got extra materials I can sell you cheap

This hoax is usually run by driveway paving companies, whose materials—hot-top asphalt and concrete—can’t be returned to the supplier. So the crew pulls up to your house with a load of leftover product and quotes a great price to resurface your driveway on the spot. Even if it’s really a bargain (by no means a sure thing), taking them up on the offer is risky if you have no idea who they are and haven’t checked references. And if the driveway starts cracking next year, you can bet you won’t find this bunch again.

How to protect yourself: Never hire a contractor on the spot, whether it’s a driveway paver, an emergency repairman who shows up after a major storm, or a landscaper with surplus plantings. Take your time to check contractors out to make sure they have a good reputation and do quality work.

Expertise from Real Estate Professionals: Far Better Than an Estimate

Real estate websites serve as an important platform to help buyers find their next home, and certainly help sellers expose their listings to those buyers.

But in our view, real estate websites are a starting point, not the ultimate decision engine.

Accurate data and up-to-date listings are very important, but ultimately, we believe the expertise provided by a real estate professional is a far better indicator of true market value than an estimate derived by machine.

Estimates may be OK if they’re used as a reference point to gather general information, but we feel placing mechanized estimates on an active listing that’s been priced by a local professional familiar with the market is misleading.

At best, these estimates are confusing. At worst, they create the perception of market conditions that don’t accurately reflect reality.

The real estate market is not a “paint-by-numbers” animal. Local market conditions can vary drastically from zip code to zip code, neighborhood to neighborhood, and can change at a moments notice.

Foreclosures and short sales – or the removal of distressed inventory all impact what’s actually happening.

Estimates that are placed on listings that already have an established sale price not only create a recipe for inaccurate information, they also create a strain on real sellers and a strain on the we agents who work hard to create CMAs and pricing strategies based on what’s actually happening.

Sellers deserve better than that. Buyers deserve better than that.

Lost in the machinations and histrionics that permeate the discussion about listings and accurate data is the one thing that should be crystal clear:

Real Estate is NOT a game.

It’s a serious business with significant financial and emotional ramifications for the parties involved in every transaction.

As Realtors, we have a responsibility to provide accurate information and accurate representations of what’s actually happening in the market – so consumers get the REAL story about what’s happening in their market.

 

Deadline for Short Sales Looming

So much of the Inland Empire real estate market is short sales. In fact, all of Southern California seems to be listing short sales. It’s a sad situation that those who purchased or refinanced during the “boom” period a few years ago now find themselves stuck when they need or want to move.

In an effort to help these short sale sellers as well as the housing market in general, Washington DC had passed the Mortgage Tax Relief Act. This included the provision in which the federal tax consequences were not applied for a period of time.

Once someone decides to sell a home in a short sale…typically the seller does not pay their mortgage any longer. (I’m not suggesting this, I’m not a CPA nor attorney and these decisions should be made with professional advice) The goal being to save for the next chapter of their lives. They also expect a long time frame for short sale approvals. This is in essence rent/mortgage free living.

Sometimes this is the only thing which allows the seller to save enough to move forward.

Adding to the normal length of short sale approval is the lack of motivation for the seller. They are living free at the moment, and the longer that lasts, the more they can save. Often they are also hoping for a child to finish a school year, or job offer to come through. This can make the showing availability very limited.  They lack a desire to show at all….let alone at inconvenient times. Embarrassment can also limit typical marketing activities, like a yard sign or open house.

However…..if you have been considering a short sale in the Inland Empire, or anywhere in Southern California, this might be the time to act. As of now, the Mortgage Tax Relief Act expires in December, 2012. 

Maybe this seems like a long time away….but it’s not. Most short sales go through a buyer or two and long approvals on each. There are many contributing factors; Buyers change their minds, the bank comes back with unrealistic approval price or terms, lack of attention from new buyers due to the length of time on the market, and some buyers will just avoid short sales altogether. Perhaps you don’t need to list in January….but by March I would suggest some urgency, if you want to be safe.

Now maybe the Act will be extended, I know that would be a positive step for helping our market…and frankly, it is an election year. But if it’s not…then closing January 1, 2013 vs December 31, 2012 could mean thousands of dollars of tax debt.

If you are feeling that a short sale might be a good option…..talk to us. Get some information and direction. We can help!

Buyer’s Remorse: Dos and Don’ts for Adjusting Your Attitude

It happens to many homeowners: You sign your closing papers, and you’re elated — you’re finally a homeowner! But later that day, some troubling questions creep into your mind: Did I make the right decision? What if I paid too much? What if a better house for me is out there and I’ll never know it?

Buyer’s remorse is a common, albeit unsettling, feeling for new homeowners. Your home is likely the largest purchase you’ll ever make, so it’s only natural to wonder if you made the right choice. But if the feeling is getting you down, follow these dos and don’ts to manage your mindset.

• Do pull out your home wish list. Whether you wrote a short novel detailing everything you wanted and needed in a home, or you just had a few ideas stored in your head, you had a specific home in mind while you were
  house hunting. If you’re feeling regretful about your purchase, compare your initial “home wish list” to the home you bought. Does it have all or most of the features you wanted? If so, your buyer’s remorse is likely a fleeting feeling that will subside once you start getting settled in. If your home is different from your list, remind yourself why you made those compromises.Don’t look at other houses. It’s tempting to continue perusing real estate listings or slowing down every time you drive by a “For Sale” sign, but please refrain. Looking at other houses is bound to make you wonder what you missed out on. Instead, focus on the features you love about your new home.
• Do start decorating. If your new house is still empty, it might not feel like “home” to you yet. So start making it your own. Paint the walls, display your favorite artwork and hang stylish window treatments.
• Don’t let negativity get you down. While some people in your life will be eager to pop open a bottle of champagne to celebrate your new purchase, others might not be so enthusiastic. Let’s face it: We all have those people in our lives that can take the excitement out of even our happiest moments. If they start to criticize your home’s location, the crown molding or the price you paid for it, don’t let them get to you. Instead, surround yourself with positive people who will reinforce your decision.
• Do take a breather. From the time you start shopping for a mortgage to the moment you sign your closing papers, the home-buying process can feel like it’s taken over your life. If your normal routines were disrupted by house hunting and loan applications, get back on track. Whether you took a yoga class every week or read a chapter of a book every night before bed, start getting back into your pre-home-purchase habits to subdue your stress. You may even want to take a weekend getaway to clear your head. When you get back, you’ll be ready to start moving in!

Should I Make Repairs Before Selling My Home?

If you want to sell your home, then you want to get top dollar; and to make sure you get top dollar, you have to first make sure it’s in top condition. Making improvements before you put your home on the market can make a big difference. Here is some expert advice when it comes to home improvement projects.

Of course it makes sense to invest your money in the things that will give you the most return, so for someone who is getting ready to list their home, is it better to put it up “as is”, or should they look at investing in some repairs or fixtures and so forth?

Overall, my years in the real estate business have taught me that it’s best not to put a lot of money into a home at the time of sale because it’s really hard to capture those dollars. But in this type of market you almost have to do certain things in order to make your home sellable. Many times the term “as is” freaks people out. When people see the words “as is” on a listing they become afraid that there is some sort of inherent problem with the property that they may not know about.

Does the price point of your listing determine the type of improvements you should make to your home?

Yes, absolutely; certain home improvement projects fall in line with certain price points.  Now some improvements that we do over the years we need to just look at as personal enjoyment. But when it comes time to look at your investment, certain things in certain price points just do not pay back; they help the home become sellable – maybe a choice over another home – but you’re not going to get those dollars back. So you really need to talk to an expert to figure out what’s worth doing to make the house sell.

What kinds of investments or repairs make sense for a house that is listed at $200,000 or lower?

At this price point, it is just generally sprucing the property up and doing those updates that are really “yelling” at you when you walk in the house. But overall, paint and carpet is where you need to stop as far as big improvements.

What if the house is listed above $200,000?

In today’s world, if you’re listed above $200,000 you’re probably looking at considering granite counter tops; granite is becoming far more important to consider. For flooring, even though people have been putting down that laminate flooring – the type that looks like hardwood – I would not recommend that at all when your home is priced over $200,000 because more and more people are finding that they do not like it. Be careful when you are making those types of improvements that you’re going to get your money back out of it.

Before putting your home on the market, what are some of the things you should take care of regardless of the price point?

I think it’s really important that everybody remember that it’s still a beauty contest and a price war. You’ve got to take care of those beauty items; make sure that there are no defects that are going to “yell” at you when you walk in the front door.

Make sure that the holes in the walls and ceiling are patched and that all the appliances and the heating and cooling system (HVAC) are working. This summer I was showing a property where the HVAC system wasn’t working right and it was so hot in the house that the buyer ran right back out.

Make sure the leaky faucets are taken care of, replace worn carpet, make sure any loud wallpaper is taken care of and neutralized by repainting walls in neutral colors. Replace broken windows, change out dated light fixtures and ceiling fans, replace old linens and window coverings. Again, take care of any obvious things that can make a home not show its best. You should strive to get your home to look like one of the model homes that you’ve been in before; this will help a buyer imagine what it’s like to live in your home.

Six common mistakes that home sellers make

Selling a home during this real estate downturn can be stressful on the seller. It’s not unusual for some homes to sit on the market for months on end, and many areas are still working through a backlog of foreclosure inventory, which also drives down home prices. Fact: 36 percent of homes nationwide sold for a loss in January. As we enter spring’s home
shopping season, buyers are in the driver’s seat in many markets, and they know it. That’s why if you’re planning on putting your home on the market, it’s crucial to understand the time-honored mistakes sellers make, and how to avoid them.

Pricing for yesteryear
Nationally, home values have fallen 27 percent since the market peaked in 2006. In some markets, total declines are in the 50-60 percent range. Yet, many sellers are tempted to list their home for sale based on what they paid for the home, not on their area’s current market conditions. If you set a price too high, your house will sit. This will inevitably lead to price reductions, which could signal to buyers there is much more room for negotiation. In the past 30 days, 23 percent of homes listed for sale on Zillow have had their price reduced.

Tip: Arm yourself with information on comparable home sales, price reductions in your area, and find out how long homes are typically on the market. Then you can have an informed discussion with your agent about the appropriate price for your home, given local market conditions.

Focusing on comps
Don’t concentrate solely on the recent sales of homes in your area. Make sure you look at the listing price for homes that are on the market right now. These homes are your competition. Based on your competition, would a potential home buyer think they are getting a good deal on your home, or theirs?

Tip: Go see the homes for sale in your neighborhood. Ask your agent what current buyers are looking for in a home these days and ask yourself objectively how your home stacks up against the competition.

Hiring the wrong agent
Choosing the right real estate agent is a crucial part of the selling process. You need to find someone who demonstrates knowledge of your area, expertise in the process, and strong marketing skills. You also want to make sure your communication styles mesh.

Limiting your marketing exposure
Real estate is often thought of as a local business, but when marketing your home it’s essential to think broadly. Limiting your exposure to a few local web portals makes it hard for home shoppers to find your listing.

Tip: Make sure your agent is active on the top online home shopping websites and has experience using technology to market your home (e.g., Twitter, Facebook). Even if you aren’t active online, 90 percent of buyers use the Internet to search for a home, according to National Association of Realtors. Don’t forget to use your own social networks to build online buzz.

Ignoring web appeal
When marketing your home online, display as many photos of your property as possible. Help buyers visualize themselves in your space by posting lots of interior shots. Focus on what people care about, namely, the kitchen, living spaces, and even the bathrooms. Make sure to clean up and de-clutter, it’s amazing how many messy rooms are shown in listing photos. And remember — as more and more people use mobile apps to shop for homes — millions of homes are viewed on the internet each month  — the quantity and quality of photos matter. High-resolution is best.

Tip: Ask your agent what kind of camera he or she plans to use when photographing your home. Make your main display photo the one that best represents your home.

Don’t follow buyers around when showing
Whenever possible, don’t be home when showing. Lurking sellers make buyers nervous — they don’t feel comfortable inspecting the house when they feel like they’re being watched. It’s easier for buyers to visualize the home being theirs when they have a chance to critique and discuss the home among themselves.

Tip: Unless there’s a real reason for it, don’t ask your agent to be present for all showings. Other agents want privacy with their buyers and they don’t usually have time to work around your agent’s schedule.

Foreclosure or Short Sale? The “Bottom Line”

After more than 4 years of this distressed market, one would have to believe that there is an all-inclusive comparison (side by side) of the impact of a Foreclosure versus a Short Sale.  I have not found such a list.  What I have found are a number of inaccuracies, including: “A Short Sale has less impact on your credit [FICO] score.” All the research I’ve done with articles from credible experts state that the impact to the consumer’s credit is same; however not all consumers will be impacted the same. In other words, some scores will be impacted more than others depending upon other credit ranked items on the credit report.

The other ‘similarities’ are:

• Tax implications are the same due to the Mortgage Debt Relief Act; which is due to expire on Dec 31^st, 2012.
• The ability to repurchase another home is the same. If the Short Sale or Foreclosure was a result of a significant loss of income or the addition of catastrophic debt, then VA will loan again in 2 years and FHA will loan again in 3 years. Fannie Mae varies but most conditions are 10% down after 3-4 years.
• ‘Cash for Keys’ is a common occurrence after Foreclosure with the lender giving the occupants money to relocate quickly and leave the house ‘broom clean’. More and More lenders these days are offering ‘relocation’ funds to assist the owners in a Short Sale. [HAFA stipulates that the owners receive $1500.00]

A very real difference worthy of consideration is ‘Residual Liability’.

Many homeowners are unaware that even after the Foreclosure a ‘junior lien holder’ can pursue them for the unpaid debt. What is a junior lien holder? A home equity loan, 3^rd loans and mechanics liens are examples. All of these can, and generally will, go after the homeowner after the home has gone back to the bank. It may very well lead the consumer to another costly form of relief and another hit to the credit … a bankruptcy.

The above WAS true regarding Short Sales in California. This changed in July of 2011 with the passage of Senate Bill 452. This legislation contains a number of consumer protection elements in regards to short sales including making it unlawful for a lender to pursue any deficiency after the closed sale of an approved short sale. This protection does not apply to a home lost in foreclosure.

The above information is based upon current regulations and trends in the distress home sale market. No warranties are expressed or implied AND every consumer should receive both Tax and Legal advice prior to making the decision … Foreclosure or Short Sale.

5 Time Saving House Hunting Tips For Busy Buyers

Driving all over town to look at one dead end house after another can be just plain tiresome. No matter how wonderful your real estate agent is, the prospective buyer is in the driver’s seat and it is their responsibility to communicate their wishes in order to make effective use of everyone’s time. Save time and enjoy the “thrill of the hunt” with these 5 suggestions:

1. Make a checklist
Before beginning your search for the perfect house, create a comprehensive checklist of all of the characteristics you are looking for. The idea is to come up with a personalized form, and print multiple copies to use each time you consider a prospective property. Start with aspects such as location, neighborhood amenities, and school district. Then address specific features that you desire, including home style, square footage, number of bedrooms and bathrooms.

Also have a place to note details about what needs to be changed, updated, or repaired. You may also want to have a 1 to 10 rating system to record your overall impressions for: curb appeal, overall appearance, etc. Attach your notes to the listing sheet from your real estate agent to avoid confusion about which house is which.

2. Be organized
Looking at several homes each week can get overwhelming. Do yourself a favor from the start, and invest in a 3 ring binder and plastic sheet protectors. Each time you have a look at a prospective home, use your checklist, take good notes, and photos, and keep everything together in sheet protector or folder for each home. Even if you cross a home off the list it can be helpful to hang on to your notes as they can help you remember what you liked and what you didn’t when deciding whether or not to view a similar property.

Also, become familiar with the offer procedure. Look over a sample contract well before you are ready to buy so you will gain an understanding of the offer process plus what factors and decisions will come into play.

3. Cyber-Shop
Using online listings is an excellent way to save time and narrow your search. It is easy to see homes on the MLS and even those listed For Sale By Owner. Detailed interior photos, virtual tours, and even YouTube videos, help potential home buyers shop from the comfort of their computer. Some sites will even let you sign up to be notified if a new property meeting your search criteria comes on the market. Be sure to look slightly above and below your target price range. You might fall in love with a bargain or find a higher priced home whose seller is willing to come down some.

4. Examine your finances
In conjunction with house hunting, go ahead and get pre-approved for a mortgage. This will keep things in perspective in terms of what you can afford. Do not confuse pre-approval with pre-qualification, which is just a review of your finances. A lender bases pre-approval on your actual income, debt, and credit history. You should also look carefully at your budget to consider what you can afford for a down payment and as an ongoing monthly payment. If you would like to keep your up front costs to a minimum talk to your mortgage representative about low money down mortgage options such as FHA loans.

5. Build a relationship with your real estate agent
It is important that your agent understand what you’re looking for, and cares about helping you find it. Get to know one another, and if you find that the agent does not understand you or what you want, then find someone who does!

Also establish several modes of communication so that when the house of your dreams is finally listed, your realtor can get in touch with you immediately.

Download our complimentary checklist here.  Use one for each house you view to help you make the best decision.

 

Reasons to Reduce Your Home Price

While you’d like to get the best price for your home, consider our six reasons to reduce your home price.

These six signs may be telling you it’s time to lower your price.

1. You’re drawing few lookers

You get the most interest in your home right after you put it on the market because buyers want to catch a great new home before anybody else takes it. If your real estate agent reports there have been fewer buyers calling about and asking to tour your home than there have been for other homes in your area, that may be a sign buyers think it’s overpriced and are waiting for the price to fall before viewing it.

2. You’re drawing lots of lookers but have no offers

If you’ve had 30 sets of potential buyers come through your home and not a single one has made an offer, something is off. What are other agents telling your agent about your home? An overly high price may be discouraging buyers from making an offer.

3. Your home’s been on the market longer than similar homes

Ask your real estate agent about the average number of days it takes to sell a home in your market. If the answer is 30 and you’re pushing 45, your price may be affecting buyer interest. When a home sits on the market, buyers can begin to wonder if there’s something wrong with it, which can delay a sale even further. At least consider lowering your asking price.

4. You have a deadline

If you’ve got to sell soon because of a job transfer or you’ve already purchased another home, it may be necessary to generate buyer interest by dropping your price so your home is a little lower priced than comparable homes in your area. Remember: It’s not how much money you need that determines the sale price of your home, it’s how much money a buyer is willing to spend.

5. You can’t make upgrades

Maybe you’re plum out of cash and don’t have the funds to put fresh paint on the walls, clean the carpets, and add curb appeal. But the feedback your agent is reporting from buyers is that your home isn’t as well-appointed as similarly priced homes. When your home has been on the market longer than comparable homes in better condition, it’s time to accept that buyers expect to pay less for a home that doesn’t show as well as others.

6. The competition has changed

If weeks go by with no offers, continue to check out the competition. What have comparable homes sold for and what’s still on the market? What new listings have been added since you listed your home for sale? If comparable home sales or new listings show your price is too steep, consider a price reduction.