Capital gains tax rate is scheduled to rise on January 1, 2011. . For some people selling this year may have different tax implications versus selling next year and beyond....and therefore the effect of this tax increase should be discussed with a tax expert ..

What we call a short sale:

A short Sale is when the homeowner owes more on their mortgage more than what the property is currently able to sell for in today’s Real Estate market place.

This can occur for many different reasons. Equity lines of Credit where the homeowner takes money out of the equity of their home to pay off bills to an amount greater than what the house can sell for including closing costs.

Another possible scenario would be the type of loan the homeowner took out originally that may be an Interest Only loan with negative amortization and penalty fees for pay offs, 100% loans and Option Arm Loans. The homeowner now may owe more than the home is worth and would have to actually come up with the difference in the money in order to sell their house.

Short Sales are many times one of the first steps in the Foreclosure process. A Short Sale is definitely, a better option for the homeowner than Foreclosure. As a Realtor, I have helped facilitate Short Sales and work with Lenders on behalf of homeowners.

The Short Sale process must be agreed to by the Lender, the mortgage holder. There is quite a bit of paperwork involved in this process where the Lender asks the homeowner to provide documentation proving their inability to keep up with the house payments. W-2’s, pay stubs, tax returns are just a few of the items needed by the Lender. Lenders work with Realtors quite often on Short Sales.

Some Lenders would prefer a Short Sale rather than a Foreclosure. One very important item that all homeowners contemplating a Short Sale need to be aware of, is the difference in the amount that the Lender forgives (and some Lender’s don’t forgive), the IRS does not.

The IRS considers this amount as income and you may be taxed on it. If the homeowner decides to walk away from the mortgage loan by returning the property to the Lender, it is important to know that this will affect your credit. Remember, your credit is important when attempting to later rent.

If considering Bankruptcy in the form of Chapter 7 or Chapter 13, it is vital to see an Attorney who specializes in this field so that you are informed properly as to the long-term drawbacks.

A very important side-note is that a homeowner going through this process is many times bombarded with questionable people who offer their services at a very hefty price to the homeowner. You need to be cognizant of this and protect yourself by making sure that you are dealing with someone who really has your best interests at heart. I would suggest that you contact an experienced Realtor that can guide you through this process.

Your Realtor is your spokesperson to the Lender and can help you through this difficult time.

PLEASE keep in mind that Prudential’s short sale team closes over 80% of their listings.  This proves that the listing agent is the most important factor in the success of a short sale.   The success of our short sale team proves that knowing what to do can reverse the success ratio so you succeed 80% of the time instead of just 20% or so.

Hire a Professional

If you want to sell your home fairly quickly, now is not the time to go at it alone. You want to make sure that your home gets the maximum exposure and the best marketing strategy. When you work with a qualified real estate professional, your home will be listed on a MLS database that other real estate professionals can access. In addition, you get the benefit of an experienced marketer and negotiator who is familiar with real estate issues in your community.

When selecting someone to represent you, interview at least three real estate professionals who are familiar with your area. Ask questions such as: How will your home be marketed to reach the greatest number of buyers? What price can they get for your home? What’s the average time their listings have been on the market? They should be able to back up their answer with a Comparative Marketing Analysis and provide the names of two or three of their most recent sellers who you may contact for a reference.

Price It Right

A house priced at just below market value piques the interest of real estate professionals and buyers, while overpricing chases them away. If your home is priced too high, interested buyers may never even tour your listing. It is true that you can always drop the price, but the first 30 days are the most critical. That is when interest is the highest, and it can be difficult to recapture people’s interest later on. The longer the property is on the market, the fewer the prospects.

Sellers beware: There are costs associated with pricing a property too high.An overpriced property will take longer to sell, and in today's market, the longer you're on the market, the less money you'll get.  While you always have the option of dropping your price, pricing it right from the beginning may give you the best opportunity to market your property while it still has some sizzle, and may actually get you the best price. READ FULL STORY

Get Your Home In Show-Condition

Get your home in tip-top shape before any potential buyer views it. Remember, you only get one chance to make a first impression. Get rid of the clutter. Touch up the paint where needed. Clean the carpet. Consider having your home inspected, and make any recommended repairs. (If there are any repairs you decide not to fix, inform the buyers about the condition of your home and discount the repair cost from the selling price).

Curb Appeal

Don’t overlook the outside of your property. You don’t want a buyer to rule out your home based on the outside appearance. The lawn should be trimmed, bushes and shrubs pruned, and leaves raked. The front of the house needs a clean, fresh appearance. Even the mailbox needs to be attractive and functional. (Believe it o