Cascata… this beautiful home is rightly named. You enter the foyer and your foot falls on the travertine landing, a stone fireplace stands before you, its chimney soaring a jaw-dropping, twenty-four feet to the wood-stained, tongue and groove ceiling, and cascading down the chimney are two beautiful waterfalls. Ahh yes, Cascata. Stepping into the spacious sunken Great Room you behold your surroundings, immersed in a collage of stone and wood and wrought iron, you are transported to the picturesque hills of Tuscany. A true testament to the artistic legacy of the region, everywhere you look, everywhere you venture into this home, from the elegant Formal Dining Room that overlooks the Great room, to the Master Retreat, with its sleeping space and private ante chamber separated by a see-through fireplace, here in the serenity of Villaggio Estates, 6230 Magnifico Circle is clearly a glorious masterpiece of luxury.

The majority of sales in Las Vegas are short sales. Even the luxury market is seeing a fair amount of short sales in addition to the bank owned sales. So what might your agent not be telling you and why should you care? Let’s take a look at the reason for your short sale in the first place. I assume, like most good people, you’re trying to do the next best thing possible to paying the bank back in whole. You’re acting in good faith to keep the home in good condition and help the bank get the best price possible for the sale of the home, preventing the added expense of the foreclosure and the bigger hit to your credit.

So now your home is on the market as a short sale or you might be considering the process. You have most likely picked an agent or team with experience negotiating short sales. Unfortunately, what I’m seeing in today’s business is a lot of agents starting to work with 3rd party negotiators and passing their fees on to the buyer, instead of paying for it out of their commission. This could severely impact the possibility of your short sale ever happening and greatly increase the chance of foreclosure.

First off, a bank will pay a real estate commission, usually 6% of the sales price. If the bank chooses to reduce the paid commission, the buyer and seller agents will usually split the reduction 50/50. Most agents are too busy to handle the labor intensive process of a short sale, so they hire outside help, a 3rd party negotiator.  Banks don’t particularly like 3rd party negotiators because it is one more person to deal with in the process. These negotiators also add additional fees to the settlement statement that affect the net proceeds to the bank. Most banks won’t pay these fees, so lazy agents are trying to pass these fees on to the buyers. You might think that is ok because the buyer is already getting such a good deal, but here is my problem with that. The listing agent on a short sale is earning their fee in the negotiation of the property. There is no big marketing expense. Short sales are priced to sell within a couple weeks on the market, so the agent doesn’t need to send mailers, do open houses, broker opens, professional photography, brochures, etc. They need to just get an offer, submit all the paperwork, follow up relentlessly with the bank, get the settlement statement right and get it closed. Sure, there is more to it than that but my point is these listing agents are trying to make the buyers pay for the work they should be doing. Some teams, such as The Jenson Group, have team members in house that are dedicated to negotiating short sales for our clients, not 20 different Realtors. When we successfully close a short sale, I pay this employee from my side of the deal.

Passing off this expense to the buyer can actually upset them and deter anyone from making offers. Yes, this happens, and with no offer you’re one step closer to foreclosure. Secondly, outsourcing the entire position could also severely affect the results of the process. My advice to you, to increase your chance for success on the short sale of your home, is to hire someone that manages the short sale “in house” and make sure no additional fees are charged to the buyer for the negotiation of the short sale. If you already hired someone and they are not doing this, fire them. You need to hire someone that at least cares about getting you results and not just passing off the importance of your deal along with all your financials to some random person that hopefully gets it done. If you want to short your home, ask your potential agent more specific questions about how many short sales they closed in the last 12 months, how does it work, etc.

It is important that short sales go through. In many cases, sellers are released from further deficiency judgments. This is important to get the individual or family back in a position where they can start moving forward emotionally and economically. This is good for them, the bank, and ultimately the nation. Your short sale team plays an important role and I ask that all agents step up to the challenge and operate with Integrity.

“Money will always flow toward opportunity, and there is an abundance of that in America. Commentators today often talk of “great uncertainty.” But think back, for example, to December 6, 1941, October 18, 1987 and September 10, 2001. No matter how serene today may be, tomorrow is always uncertain.

Don’t let that reality spook you. Throughout my lifetime, politicians and pundits have constantly moaned about terrifying problems facing America. Yet our citizens now live an astonishing six times better than when I was born. The prophets of doom have overlooked the all-important factor that is certain: Human potential is far from exhausted, and the American system for unleashing that potential – a system that has worked wonders for over two centuries despite frequent interruptions for recessions and even a Civil War – remains alive and effective.

We are not natively smarter than we were when our country was founded nor do we work harder. But look around you and see a world beyond the dreams of any colonial citizen. Now, as in 1776, 1861, 1932 and 1941, America’s best days lie ahead.”

Warren Buffet
Berkshire Hathaway 2010 Annual Report

Sure, this isn’t the heyday of yesteryear, but we still live in an amazing place with incredible opportunity. I like this quote because it’s a reminder to focus on the good in what we have and all the opportunity that lies ahead. Whether it be your job, relationships, or real estate, focus on what’s possible and make something happen!

359 Alpine Way echoes the serenity you feel as you ascend into the mountains. When the front door opens, a rustic great room w/a wall of reclaimed stackstone from France and charming wood-burning stove invites you in. Renovated and brought into the 21st century, this energy conscious home has its original charm, made better… wood and natural stone floors, wood ceilings, oil-rubbed iron features, granite counters and mosaic tile in baths & kitchen, plus mega-storage. Multiple and split-levels take their cue from the terrain, and every room has its own deck, integrating life with the natural surroundings and lush, rolling, secluded rear yard w/fruit trees, berry bushes and private picnic area. The master retreat on the top level, has a corner sitting area, as well as a spacious optional room for an office, gym or your own sanctuary. Gazing out a window at the stunning view of majestic mountains, or relaxing on one of the decks, you’ll watch the seasons roll, one into the next, blue jays fly playfully through the trees, or a deer stroll across the yard.