If you are planning to sell your home this year, here are the best 10 tips that will help you sell it quickly & give value:

Avoid times when sales are slow, for example major public holidays,  major sporting events and festivals.

It is important to find out what the competition is in your area.  Ask yourself, “Who is my competition?”, “What is it going to take to sell my home?”, “How can I make my home different & appealing?”

Put yourself in the shoes of a potential buyer and see the house.

Homebuyers are in the market to buy your “space” not your “stuff”.  How you live in your house and the way you sell your house are two different concepts.  Try to see your house through the eyes of a prospective buyer.

Make a list. Rediscover what attracted you to your home.  After you have identified these things, plan and showcase them to their best potential.

Your home is a reflection of you.  Take the time to look at the picture you will be protraying to potential buyers.  De-cluttering and minimizing will enhance the space and functionality of your home.  Space does sell!

If it is broken, faded, rusty, out-dated, dripping or dying, then replace it, remove it, repaint it or restore it.  No one wants to buy your maintenence problems!

Remember, you are “open” for business 24/7 during the market period. Potential buyers often do “drive-bys” before they will make an appointment to preview the interior. Make sure your front yard maintains an “inviting” feel.

You can’t change the size or location of your home, but you can highlight it’s best features.  Use some home staging techniques to showcase these features.  If you don’t have an eye for home decor, ask a friend or relative or your agent for some ideas and implement them.

We can guide you in this area.  If you have done your research (tip #2) you will know what the right price point is.  It doesn’t matter what home values were in the past.  No overpriced home will sell, no matter how good it looks.

Interview agents that you know you can trust.  Ask them about their past successes and what sets them apart from the rest.  Make sure they are assertive enough to give you a realistic assessment of your home and what you can do to improve it.

With 2012 dawning on us, here are a few predictions about how the arizona real estate market may look like in year 2012:

In 2011, a lack of consumer confidence in the overall economy dramatically impacted the housing market. Buyers were afraid to make a purchasing decision on any big ticket item. By the end of 2011, consumer confidence began to return and sales increased. Economic conditions will continue to improve throughout 2012 and consumer sentiment will solidify. Once that happens, home buyers will realize that now is the time to buy.

The ‘shadow inventory’ of foreclosures which has been growing since late 2010 will finally be introduced to the market. Distressed properties sell at discounted prices. They will impact the housing values of the non-distressed homes in the area.

As more and more foreclosures come to market, there will be greater downward pressure on the values of houses in the region. Foreclosures impact values of non-distressed properties in two ways:

They will eat up some of the buyer demand in the market.

They will impact the appraisal on ALL transactions in the area.

An increase in foreclosures will have a negative impact on values. This will cause more homes to be underwater.

As mentioned above, we strongly believe that home prices will soften through at least the first half of 2012. Falling prices will force more homeowners into a position of negative equity. Negative equity is one of the triggers that cause people to strategically default on their mortgage obligations. If this happens, there could be an increase in the number of foreclosures. However, we predict that banks will take preventative measures which will help many of these homes avoid foreclosure by easing the requirements in the short sale process for both homeowners and real estate professionals.

Real Estate professionals who have invested the money, time and energy to truly understand what is happening and why it is happening will separate themselves from their competition and do very well this year.

Those who take that next step of learning how to simply and effectively communicate the market to their clients will be seen as industry leaders. These experts will dominate their markets.

Vacation Homes/Investment Properties are called Second Homes. Homes loans for such second homes are viable & still available in current mortgage market. However, the standards are little different to those of primary residence (the home you live in). Looking at current level of interest rates & home prices, there are many affordable options available.

- Down payment is needed. It will need to be between 0-3.5% or more.

- Cannot use FHA Home Loan or VA Loan to purchase such homes.

- Good starting point would be 20% down payment for a second home. Larger down payment is worth it.

- Anything less that 20% down payment will include mortgage insurance & rate hikes.

- In Arizona, 20% down payment is minimum. (25% is more advisable and makes sense)

- Very difficult to get mortgage insurance on such property.

There are still many Fannie Mae and Freddie Mac backed programs available to purchase or refinance. That means a solid fixed rate loan or adjustable rate loan. It also means higher standards for both credit score and overall debt profile.

Overall, when it comes to second homes and investment properties, there are many options available in the current market. It will require a down payment and a good credit standing, but with interest rates and prices so low, now may be the time purchase that vacation home or investment home for the long term.

Strategic Default

Homeowners underwater are looking to make the best business decision on this underwater mortgage. Many have detached themselves from any moral conflict they may have had initially and even buy another home then short sale later. Strategic defaults especially in Arizona have increased significantly over the last year.

Walking away without attempting to mitigate or negotiate a loan prior to foreclosure may not be the best plan. If a homeowner that is underwater attempts to do a loan modification or a short sale and mitigate the loss they may have a better opportunity to negotiate a settlement of a second lien through a short sale. The home may also have a larger loss at foreclosure than it may have had in a short sale.

The bottom line is these decisions are not easy to make and you must consult with a proven and effective real estate attorney, tax advisor and well trained real estate broker or agent. Experience matters and doing things correctly the first time is important.

Proper legal and tax advisement is a crucial element. This will allow you do better understand your options. For example if the property loan or loans are not a purchase money primary residence you may have different options.

Home Equity Lines in short sales

An equity line that is considered purchase money and an equity line used for buying a boat are two different types on scenarios and need to be handled differently. Each state also has different laws about how short sales are handled. We have seen the larger banks settle for pennies on the dollar on home equity lines. For example we had about a $100,000 debt settled for $8000.00 recently and other clients have both settled for more or less depending on the situation and the lender. It appears that Credit Unions and smaller banks are more difficult to negotiate with in our experience.

Investor short sales

Investors considering strategic default must also plan well. It may not be a good choice to simply mail in your keys. What if the home is damaged? Will you be liable for the time period prior to the foreclosure date? We advise all homeowners to leave the home in good condition and not strip the home of appliances and light fixtures. Damage to the home, vandalism and back HOA fees can cause you problems later.

How to lower your liability when doing a short sale

We also advise homeowner to stay current on HOA’s fees and to maintain their insurance policy if possible to lower their liability. HOA’s can pursue collection regardless of if you foreclose or do a short sale so perhaps you should just stay current with them to avoid any future problems.

Strategic default is clearly a strategy that requires professional advice and planning. Take the time to pursue the information for you to make the correct decision about your home and speak with qualified real estate and tax professionals.