Happy Saint Patrick's Day

This Week-End in Gilroy

What You Need to Know about Cancellation of Mortgage Debt

Make sure you know all the consequences of Short Sales and Foreclosures. Here's some NAR (National Association of Realtors) information:

Current Law for Mortgage Debt(Jan. 1, 2007 through Dec. 31, 2012): A borrower can be excused from paying tax on forgiven mortgage debt. The debt must be secured by a principal residence and the total amount of the outstanding obligation may not exceed the original mortgage amount plus the cost of any improvements.

There's much more!

Does your home live up to its List Price?

We know about this! It's so hard to get sellers to view their home from the buyer's perspective. It's like the Buyers Road doesn't intersect with the Sellers Lane. We try to be straightforward with our sellers. It's hard!

Reprinted from Realtor.com, Real Estate News
By Bob Kelly, Guest Writer

There is still a great divide in the some phases of real estate. One of the worst is the division of expectation between a buyer and a seller.

A buyer who is willing to pay for a home in a certain prices range let us say over $500,000 for example has the expectation that a home should have certain amenities at that level:

• An upscale kitchen including mid- to upper-level stainless appliances and granite counter tops
• Bathrooms that have been updated with tile, new faucets and vanities
• Flooring of hardwood, tile, or upscale carpeting
• Professional landscaping

In short the amenities need to fit the expectation at that price level.

A seller needs to understand that when you set a price at that level, buyers expect to be able to move in and have nothing to do but unpack and place their things. Rooms should be neutral so that the new homeowner doesn’t have to undo your taste. They basically are willing to pay a premium for convenience.

If as a seller you are not willing to spend the time, money and effort to bring your home up to the level of expectation, the solution is simple. Keep your price point in line with current competition at that echelon. Just as a savvy shopper would be able to see through a Wal-Mart product with a Sak’s Fifth Avenue price sticker on top, so do real estate buyers know the difference. The quality, sophistication, and style make the difference and it all comes down to price as justification.