On August 19, 2007 I posted a request for help because I had a "Hard Listing to Sell." You guys responded and I did take your advice. However I want to share some of the things I found out for agents:

 1. Lenders - All are not the same as we found out. The two companies (HomeQ and Litton Servicing) involved would not refinance or restructure the mortgages. They may have a first or second mortgage but are second tier lenders only interested in adjustable rates.

2. Dropping the Price - That worked and the showings increased. I only dropped it $ 10,000 as the first try and the home has started to show more now. I am supposed to get an offer that will handle the first mortgage and part of the second. If HomeQ paid the taxes and insurance less of course would be left for Litton.

3. Back Taxes and Insurance - Information was sent to the lenders but up until September 30th the back taxes had not been paid. I don't know if the insurance has been paid.

4. Permission to talk to the lenders - My seller's gave me permission to talk to the lenders which afforded me an opportunity to assist them more. I knew what to have them ask for and help them prepare for a short sale before a contract arrived, i.e., Litton's payoff figures, short sale documents and the requirements for a short sale or hardship case.

So to all of you that responded, thank you so much for helping me grow in my knowledge and realtor experience.

My clients have been in trouble every since I sold them the house (too much mortgage, with not so good credit) three years ago against my advice.  They won't trust any other realtors in the area because they got burned on another deal and lost a lot of money.  However, they need to sell their home.

Here's the scenario:

1.  Above average interest rate on a 1st mortgage and a second mortgage with no escrow for taxes and insurance.

2.  Husband lost his job shortly after closing Jan. 04.  Stumbled back into another job with steadier pay and wife working as well.  Heavy Tithers at church probably above 10%.

3.  Came to me last year indicating needing to sell - home overpriced (couldn't find my definition of service) and wouldn't drop it to the point I indicated it needed to be.  Listing expired...

4.  Received a call earlier this year (April maybe) indicating wanted to place home back on the market. Wife has now lost her job.  Want listing price where I suggested they drop the price to last fall ($210,000). Nice 4 bedroom with 2.5 baths, 2 fireplaces, formal living room and dining room and eat-in kitchen.  LL is finished with an office and family room plus family room on the first floor with wetbar and fireplace. 

5.  Asked if they have had discussions with lender - of course not.  Suggested they enter into negotiations with them about problems but may have to reduce tithing to meet demands of lender.  Can't drop the price too much more because of arrearage on property tax - 3 years behind.

6.  No showings this year at all. Several calls but nothing I can get back to make the buyers move. 

Any ideas about what I can do to make this sell without spending a lot of marketing dollars?  I can't come up with one idea at this point... 

As a new realtor, I often wondered how the more experienced realtors were able to set the "right price" for a listing.  By the end of my first year I had managed to list 3 homes but I was still faced with the age old problem of CMA's versus what the seller wanted.

One day, I was on the internet and saw a "Definition of Service" statement by an experienced realtor.  After reading the text of her service definition, I thought I would call her because it was the best thing I had seen to date.  As a newby and a member of a competing firm, I thought she would not discuss her philosophy of service but felt that I needed it to sometimes move a seller from Point A to Point B in terms of price or clutter.  I decided to take a chance on the call anyway - again I had seen nothing better to help me through my dilemma.

This particular realtor was confident in her ability and was willing to share!  She shared her "Definition of Service" by faxing me a four page definition that has proved invaluable to getting someone to move the price or change the decor a little for getting their home sold.  I had misplaced the original document and my hard drive failed late last year with my soft copy on it (no backup copy).  I had desperately needed it late last year when I had difficulty getting a seller to move off the price they had set.  While I couldn't find it then, I was determined that I had it somewhere and would not go another season without it.  The other broker in our firm was going on a listing presentation earlier this summer (she hates the haggling) and felt she might have difficulty with the seller so she begged me to find a copy and adapt it for our firm.  Fortunately, I found it right when she needed it!  Here are the points I felt were most valuable to me since receiving a copy in 2003:

Listing Agent Commitment to Seller: 

1.  The opening statement - Service Is Getting Your Home Sold Quickly For the Maximum Price - sets the tone for how you are willing to work for this particular client.

2.  The next statements relate to holding open houses, print advertising, and number of showings.  The statements about the number of showings clearly defines when the home is overpriced in ranges.  It helps us to get the seller to reduce the price in the event of no showings! The statements about open houses helps us eliminate the need to hold them (I haven't liked them since I've never sold the home I held open nor have I gotten a buyer from it).

Seller Commitment to Listing Agent:  On the reverse side of the Service Definition is the commitment to the listing agent from the seller.  They ease the discussion points that the listing agent has to make.

1.  Looking for a new home - This listing agent highlighted in this "Definition of Service" when the seller should begin looking for a home.  It eliminates putting contingent contracts on a home for the seller because it clearly states that until the seller has financing available, they should eliminate placing a contract on a home.

2.  Showings - The seller should not be at home during showings!  Questions can be answered later.

3.  Showings - The listing agent will not be the only person showing their home! Have you ever been turned away from a showing because you weren't the listing agent?

4.  The Transaction Fee - The listing agent explained the transaction fee in terms of services provided, i.e., obtaining feedback, negotiating and obtaining bids for repairs/maintenance, scheduling repairs, etc.

The definition not only sets you apart from other realtors attempting to get the listing but also does some preliminary negotiating for you with the seller.  It brings up great discussion when you are on a listing appointment for the sticky subjects that we know are going to be a problem.  More importantly, it helps us get our job done a lot easier!