Need some clarification on how to best improve your credit scores? Check out this great post by Larry Bettag of Cherry Creek Mortgage and use it as a future reference.

One of the first questions I ask every seller is, "Why are you selling?"

We all know the reasons are many -- job change, downsizing, upsizing, divorce. And many times I've heard the seller slip in, "But I don't have to sell..."

My goal as the listing agent is to get the house sold in the shortest amount of time possible, getting the seller the greatest amount of money possible. So when I hear, "I don't have to sell" as any part of the response to the "why are you selling" question, I have to ask myself, "Does the seller really have the same goal as I do?"

If the motivation to sell is not there 100%, feedback from showings, updates on the current market, and reports on overall activity mean nothing to the seller. And if that's the case, should I really be working with this seller? Probably not.

To be the most effective and efficient Realtor® I need to be, I have to focus my time and energies on the sellers who do share the same goal I have.

I know that in any market -- even with the challenges of today -- every house can be sold -- assuming that's really what every seller wants.

I admit it. I have a hard time letting go. Personally. Professionally. I hate letting go. Makes me feel like I failed or am giving up.

So when one of my listings nears its "expiration date," I typically contact the sellers a couple weeks before and ask for the opportunity to continue working with them. That has how it has always been for me. Until now.

This world of real estate has changed considerably over the past several months -- it's been a whirlwind of different challenges. And I've learned that there is only so much I, as the listing agent, can do for my sellers.

I can communicate with them on a regular basis and inform them of current market conditions, the competition's prices, the recent solds, short sales and foreclosures. What they do with that information, is their choice.

I cannot force them to adjust the price even if it is clear that needs to be done to get the home sold. I cannot force them to make repairs or minor updates even if those issues are brought up multiple times in showing feedback reports. I cannot change what is happening in the local market.

And I cannot make them respond to my emails and voicemails.

What I can do, however, is choose where to focus my time and energy. I can choose to put my time and effort into those listings whose sellers do understand and accept the current market conditions. I can choose to work with those sellers who, as disheartening as it is, know that to get their house sold must adjust the price to make it compelling to a buyer.

And so that is what I am choosing to do.

Letting go -- it doesn't have to mean failure or giving up. It can mean I am choosing to do what is best for me and my business.

Regardless of the reason for selling your house, there has to be a commitment on your real estate agent's part, as well as yours, to get the job done. And in this market, it can be tough.

It can be humbling to hear what your house is worth today. It can create a sinking feeling to learn you probably won't get back what you paid for all those nice updates you made over the past couple of years. It can tear at your heart to find out you may have to bring cash to closing because you owe a bit more on the house than you'll get for it.           

But the bottom line is, do you want to sell your house or do you just want to list it?

If you truly want to sell your house, you must pay attention to and hear what the market is telling you. It is that simple, and perhaps that difficult.

What is the feedback you're receiving from private showings and open houses? Are you getting private showings? Are you getting visitors at open houses?

Remember that the buyer will determine the value of your house. It doesn't matter what you need or want to net from the sale. It does not matter.

Depending on the publication you read, it could be another couple of years at least before prices start to turn around - start. And depending on the report you read, prices could fall another few percentage points in the next year or so.

Bottom line is no one knows what will happen for sure in the housing market in the near or even distant future. What we do know is what we have now.

Interest rates, at the time of this writing, are at 4.375%. The supply of homes is great in nearly every price point in our area, and, as you know, prices are down.

So even if you would sell your house for less than you would like to, you would also be buying for less than you might expect to and at these historically low interest rates, which will ultimately cost you less over time.

Assume you are purchasing a $200,000 home, have 20% down payment, and the term of the loan is 30 years. With a 4.375% fixed interest rate, your monthly principle and interest payment would be about $798. If the interest rate were 6%, however, the monthly payment jumps to approximately $959. Over a 30 year period, that's a savings of nearly $58,000.

Is this your time to sell? Should you try to take advantage of these historically low interest rates?

Is it worth taking the risk and waiting to sell?

Just how committed are you to working with your real estate agent to get the job done?

Only one person can answer these questions for you. And that person is you.

It's a crazy world we live in. Seems we easily get bogged down with or stressed out about the many things we see going on around us or even in our own lives. Life presents to us so much to worry about or be sad about.

Unemployment. Cancer. Foreclosure. Rising gas prices. Wars. Divorce. Flat tire. Oil spill. Computer crashes. Floods. Death. A house that won't sell. An unmotivated employee. "Going Out of Business" sign. Bills. Drug abuse. Teens struggling to "find themselves." Disappearing savings accounts. Lost pet.

It would be great, wouldn't it, if at any given moment, the world around us broke into some impromptu song and dance, and, for just a few minutes. the troubles in each of our worlds disappeared?

Maybe it's time we all keep a song and dance in our heart -- remember and be grateful for the good that surrounds us.

Remember the sunshine, the opportunity to work, friends, children, laughter, your home, food, good health, a bed to sleep in, vacations, your faith, music, our pets, childhood memories, picking strawberries, bike rides in the country, grandparents, watching your garden grow, a kiss, freedom, and on and on.

Remember to sing and dance -- anytime, anywhere.

Recently my broker, Shorewest Realtors(R), has invited Steve Harney to speak to us about current and expected market conditions. While some of what he has to say is difficult to hear, I think he's helping us to provide the information our buyers and sellers need to make the decisions that are best for them in these ever-changing times.

Following is a recent blog of Steve's that discusses what must be taken into consideration when pricing your home for sale.

WHAT IS IMPORTANT WHEN PRICING A HOME?

by Steve Harney on June 5, 2010

We have shown how even the experts are having trouble determining price in the current real estate market. There are so many moving parts and each part is evolving rapidly. Today, we want to look at the major determining factors in establishing the current value of a residential property.

If you currently have your house on the market or you are considering selling it in the near future, make sure you find a local real estate professional. Request them to explain each of the following points and how they apply to your region or neighborhood. You will be better prepared to determine the best option for you and your family once you have this information.

1. Demand for a Particular Type of House

We realize each home has a unique value based on its amenities; however, buyers look at certain basic requirements (ex. style, number of bedrooms, school district, and proximity to mass transit). You should look at your home and see which category it would fall into. For example, you might have a 4 bedroom colonial in a certain school district. Ask the real estate person you are working with to give you a list of the homes in this category that have sold in the last six months. This will give you an accurate depiction of what homes like yours are actually selling for.

But don't stop there. Take the six month number and divide it by six. That will help you determine the approximate number of buyers that will purchase a home like yours each month.  Then go to the next step.

2. Supply of a Particular Type of House

Have the agent prepare a list of all houses like yours currently on the market. Divide that number by the number of monthly buyers you determined above. That will give you the month's supply of inventory of available homes like yours. (Example: 24 buyers in the last six months divided by 6 months equals 4 buyers a month. There are currently 40 homes like yours for sale so divide that number by the 4 buyers per month that buy which equals 10 months supply.)

Once you have that number, you can put the principle of supply and demand into play. In real estate:

· 1-4 month's supply constitutes a seller's market where prices have a good chance to appreciate

· 5-6 month's supply constitutes a normal market with stable prices.

· 7+ month's supply constitutes a buyer's market where prices have a good chance to depreciate

Now take the average price of houses like yours that sold in the last six months and adjust that price depending on which market you are selling in.

· If it is a normal market, list your home at the average price.

· If it is a seller's market, add 10% to the average price and start there.

· If it is a buyer's market, deduct 10% from the average price. (Remember, in a buyer's market there is an excess of inventory supply. That will mean homes will depreciate.)

All of the information above should be readily available to your local real estate professional. They will be ready to share this with you if you ask them to prepare a Comparable Market Analysis (CMA) on your home.

You now have a good idea regarding today's value of your home. However, do not allow your agent to stop there. Other factors will impact the price at which your home will sell. Let's go over them now.

3. Interest Rates

The interest environment has a major impact on home values. The demand for housing increases when rates are low or falling. The demand for housing weakens when rates are high or rising.

Rates are at historic lows today. However, most experts expect rates to climb steadily throughout 2010. As they rise, buyers will be eliminated because they will be priced out of the market. Others will have to buy a home for a lesser price in order to keep the mortgage payment within their monthly budget.

Simply put, there will be a downward pressure on prices as rates increase.

4. Employment Rates

Regional unemployment rates are an interesting dynamic when pricing residential real estate. A person without a job obviously can't buy a home, so areas with high unemployment have less potential purchasers.

There is also another interesting effect the local job situation can have. If the unemployment rate is rising quickly, many people refrain from making big ticket purchasers out of a fear that they might be next. If you are in an area where the unemployment rate has risen lately, the demand for housing will have fallen. That change in demand will impact prices in a negative way.

5. Foreclosures In the Area

We believe that this factor will impact housing values the most in 2010. We define this ‘shadow inventory' as the number of foreclosures currently held in banks' inventories, the number of homeowners seriously delinquent on their mortgage payments (potential foreclosures), and the number of borrowers willing to ‘walk away' from their mortgage obligations.

There will be a dramatic effect on home prices. When and to what degree these discounted properties will be released to the market will determine the severity of the impact.

6. Consumer Confidence

All of the above factors combined will determine whether the American people have an appetite for real estate. The factors will also determine at what price points purchasers will enter the market. If the real estate market seems to be gaining traction, people will buy. If it seems to be about to take a ‘double-dip', the purchasers will retreat to the sidelines. The next couple of months will shed light on this factor.

What does this mean to you?

Piecing all the factors together, we believe that now is the best time to sell if you plan to sell this year. We feel strongly that prices will continue to weaken as the year unfolds.

Looking for a place where you can find just about anything at a "steal of a deal?"

Then be sure to stop in Belgium this Saturday, May 8, 8:00am-4:00pm for the annual community rummage sale.

A map of all participating households is available throughout town, and food and refreshments will be available at Community Park, located on Main Street Proceeds benefit various local community projects.

Belgium is located about 20 minutes north of Milwaukee right off of I-43 (exit 107).

A few days ago I wrote a post, I Know It's Going to Hurt, But What You Want or Need from the Sale of Your Home Doesn't Matter, which discussed pricing your house based on current market conditions and comparable homes, not on what you want or need to walk away with. 

It seems that a comment I'm hearing more and more these days, too, is a sort of disgust over the "realtor fees" that will be paid. I think I prefer to believe that most consumers simply don't know or understand how the commission is paid (i.e., only if we close) and what that fee pays for. I know before I got into the business I thought the agent got "all of that." But that's just not the case.

That fee pays for, among other things:

• MARKETING/ADVERTISING
• CLOSING DEPARTMENT PERSONNEL
• ACCOUNTING DEPARTMENT PERSONNEL
• PROFESSIONAL PHOTOGRAPHER
• SHOREWEST TV EXPOSURE
• ONLINE GUIDED TOUR
• 24-HOUR HOTLINE
• OFFICE SUPPORT STAFF
• SALES DIRECTOR
• SELLING AGENT
• SELLING BROKER
• LISTING AGENT
• LISTING BROKER

Several months ago I wrote another post, So What Do Realtors Do All Day, to help shed some light on the time each of us invests into each of our listings and the expenses we incur. It isn't intended to muster up some sympathy for the time and energy that's exerted to get a house sold; it's intended to help the general consumer understand that "that realtor fee" is, quite frankly, money well spent.

But just as what a house is listed for should not be based on what you "need or want" to net, neither should it be padded to cover what will be paid in commission.

I know this market is frustrating, and whether you admit it or not, humbling. But without the dedication and work of a professional Realtor(R) and all the people "behind the scenes," the process would be even more frustrating.

When you look at the overall picture, you'll see it is money well spent.

It seems like things are getting tougher and tougher in the world of real estate. More and more "for sales" are popping up, interest rates have creeped up a bit, the buyer tax credit is nearing its end, and short sales and foreclosures continue to spatter the inventory. And yet, it is still difficult for some to accept that no one is immune from the rippling effects of these conditions.

Those of us who are in the business of residential real estate sales hear it all the time. "I need to net this amount of money, so I need to price my house here." If only it worked that way. But it doesn't. It simply doesn't.

In this complicated market, prices continue to drop. In our area, we rarely see a home sell for its assessed value anymore, much less fair market value. So if a seller is selling within a couple of years of buying and has made minimal improvements, if any, chances are they will not be making a profit. No matter what is wanted or "needed" to net from the sale, the buyer will determine what the home's value is.

Remember that today's buyers are pretty savvy -- they know what you paid. They know what the assessed and fair market values are. They know what comparable homes in the neighborhood have sold for. And they know that home values have fallen over the past few years and unfortunately continue to do so.

If your goal really is to sell your house, you must price it appropriately. A buyer doesn't care how much you need or want to walk away with at the closing table. So price it to sell, not to sit.

It seems like there are a few days throughout the year that suggest opportunity for a "new beginning." New Year's Day. Our birthday. The first day of Spring.

The older I get the more sentimental I feel about where I am in my life versus where I want to be. Postings of life events and photographs by friends, family, co-workers, and customers on social networks have me longing for more both personally and professionally. And sometimes I wonder if my chance at those dreams and goals has passed.

But then a "new beginning" day comes along -- like yesterday, Easter Sunday, the happiest day in the Christian church. A day of renewed life and hope. And belief.

And so today has been a day of remembering and focusing on the final outcomes -- those goals I have set for myself. Though I don't necessarily see yet how each of these will be achieved, I have to believe I'll be shown the best way to get there.

And I have to believe my chance hasn't passed.