Some Drawbacks to FSBO

In recent years there has been a rise in the rate of homes sold by the owner. This is usually done in order to save money on realtor commissions. But does this actually happen? Typically there is a commission of anywhere between 5-7% or thereabouts for an agent to sell a home. The question is, do you really save that 5-7% or is that money simply spent elsewhere. Most of the time it is indeed spent elsewhere. Here is why.

A realtor has a number of functions when it comes to the selling process.Most of these are primarily dealing with the process of marketing your home to the local real estate sector. It is this process where an average FSBO seller will utilize that "saved" commission, and more to attempt to get market coverage for their home. One must also take into account the fact that in this day, time is money. Not too many people have the time that is required to market and sell a home properly. Another aspect of the sales process that is difficult for the average home owner to achieve is the level of networking that a realtor does in order to gain notoriety for a particular listing.

Your agent has access to a number of resources that are of critical importance in selling your home quickly. One of these is the CMA, an analysis of homes that have sold recently in your area. This cross section of the market is utilized to gauge the appropriate selling price for your home. An improperly priced home can either languish on the market as it is priced out of the market, or sell immediately for less than it is actually worth. Agents also have an established web presence that is vital in the marketing of a home. Many prospective buyers spend months searching for a home online before making any offers or contacting an owner or agent. In fact much of the time, the buyer knows precisely what they want before the viewing process starts. An agents ability to market a home on a large scale is one of the biggest assets they can offer, in tandem with a vast knowledge of the local market and an established network of professional sales people, a realtor really does offer your home the best possible chance of selling quickly and for the most profit.

M Shane is a member of the REW Writers Team. A collective publication network facilitated by Real Estate Webmasters. Each article is contributed by a member of our real estate community. This particular article was submitted on behalf of VIP Realty, you #1 choice for Dallas real estate.

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Going the Extra Step to Sell That House

When it comes time to sell, there are some standard steps that can be taken to help get a property moved. Going a few steps beyond the norm, however, can make a big difference.

Going the Extra Step to Sell That House

When you make the decision to sell your home, you are undoubtedly going to look around for a bit of advice. Nearly every book, real estate agent or guru is going to tell you to prepare by doing some basic things. These steps typically include getting your landscaping in shape, getting rid of the clutter in your home and making basic repairs such as touch up painting and so on.

Unfortunately, most potential buyers now expect these things to be done as a matter of course. Simply put, one has to question how much taking these steps will really help you. If you are really trying to one up the comparable homes on the market in your neighborhood, there are a couple of other steps you can take to do so.

The kitchen is an important room in a home. People spend a lot of time there either cooking or just hanging out. In short, this is an area you want to focus on. Consider replacing countertops with something nice. The same goes for appliances and fixtures. If the floor has seen a lot of wear and tear, rip it up and put a new one down. Most people have a finite amount of money they want to spend on getting their home in shape. The kitchen is a great place to spend it.

On most homes, the garage door is a major part of the appearance since it faces the road. That being said, most homeowners looking to sell completely ignore it. You should not! Consider whether the door blends nicely with the rest of the home façade. If it does, how much wear and tear is it showing from being used, hit with basketballs and so on? If it needs some help, spend the time or money to do it. Repainting and even replacing it can be a good move and completely change the curb appeal of your home.

What if your home is in really bad shape? Hey, it happens. Life comes at you fast and things can wear and tear over time, particularly if you have a big family. Once you decide to sell, you really have two choices of what to do. One is to spend a lot of money fixing everything. The second is to leave it alone, price the home at the bottom of the market and sell it as a “fixer upper.” Many people are looking for fixers, so you should still be able to sell it if it is priced appropriately.

Raynor James is with FSBOAmerica.org - get a free one month listing when you sell your home for sale by owner.

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Financing Your Property-the Right Way!

Unless the home is paid fully in cash, then there is probably a financial block that you must have to pass. Usually, the process gives the buyer a certain time period to get financial help. Most of the time, the buyer will have a total of 35 days for financial help. Five days to apply for the loan and 30 days to get it approved. Even though the time period is short, you must think of it from a seller’s point of view. They are taking the property off the market just for you, so you better be able to pay for the property. In this time, they could have gotten other lucrative offers, so the seller cannot afford to wait too long.

If the contract is depending on the financial aid, then the seller needs to know the status quick. The sooner the buyer can pay, the sooner the property is theirs to own. But, the sooner the seller finds out that the buyer does not have the financial credentials to purchase the home, and cannot get approved for a loan, and then the sooner they can put the property back on the market. One requirement for most lenders is to go through the appraised process. But, all appraised processes do not depend on the property.

Usually, the appraisal will be greater than or equal to the price of the property. But, when the buyer makes a down payment of 31 percent or higher, then the lender will be approved even if the amount is not as much as the amount stated on the contract.

After the lender has scrutinized all of the documents regarding the loan, then the loan will be cleared to close. In other words, if all of the financial conditions are met, the loan will be approved. Usually, the lender will transfer the funs on the day that the loan is closed. Before the closing, a statement which is known as HUD-1 is reviewed by both parties: the buyer and the seller. It simply has all of the financial terms, amounts, and conditions.

Before closing, an experienced professional from a real estate team will scrutinize the closing statement to ensure that it is fully accurate. We guarantee that we will always guide both the buyer and seller with their closing statement. That way, there will not be any unexpected surprised that can end the closing of the loan.

Financing a Property Requires Many Needed Steps
There are many different ways to handle the buying process and financial relief. Majority of the sellers will ask to see a pre-approval accompany on all offers for their property. For that reason, it is smart to apply for a loan before you buy the home. This step will help you with your financial understanding.

Many times, the buyers’ agents will request to see a mortgage loan pre-approval. That shows the real estate agent that you are seriously considering purchasing the property. Also, most of the sellers will ask the buyer to show proof of funds, so they know if they should take their home off the market or not.

The internet can easily provide you with links to Mortgage calculators, so you can see what you can afford and exactly how much money you will get. But, it is better to meet with a Mortgage Broker, Loan Officer, Bank, or Lender. They will give you the best information which on which loan is the best for you.


Among the following is a list of items you should bring to your meeting. Keep in mind; it can change depending on your loan program. The list includes:
· Copies of your paycheck or paycheck stubs that are within the last 60 days.
· Copies of your W-2’s and/or 1099’s that are within the past two years.
· Copies of your Business and/or Personal Tax Return in the last two years which have been signed and completed.
· Copies of Bank Statements within the last few months that have been completed
· An Original Gift Letter and the documents and the documents associated with fund transfers for cash gifts that have been received regardless of whether the gifted funds are part of the purchase or not.
· A copy of Fully Executed Signed Purchas Agreement and any Addendums.
· A check for the Application Fee
· Your Homeowner/Hazard Insurance Agent’s name, phone, and your premium amount.
· A copy of a Recorded Warranty Deed for the current property owned and to be sold.
· A Copy of the Certified Survey for the current property owned and to be sold;
· A copy of the existing Title Policy that is for the current property owned and to be sold.
· Copies of signed current lease(s), Driver’s License(s), Social Security Card(s), and Green Card(s)
· Copies of complete Investment Account statements; Copies of complete investment account statements, and copies of your most recent loans and leases.

Shopping for homes will be much easier once you have been pre-approved for a loan. You will be more confident when making your offer because you will know how much you will have to pay monthly.

Once you have applied, all of the documents that the lenders give will be sent to you. You will receive a Good Faith Estimate, also known as GFE, which is one of the most important documents. The document estimates all of the final costs regarding your loan. The GFE will also provide you with more estimates pertaining to your annual, monthly, and other interest payments regarding your loan.

Please do not be shy and contact us. We are always here to give you more information and answer your questions about the process of home buying.

Joe lane - http://www.joelane.com/kennewick-real-estate.php

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Financing Your Renovations

If you have chosen to renovate your home then you know the price can easily exceed your predictions. Home renos tend to have what is known as "scope creep." This is when the renovations start and as they progress new things or problems cause there to be more work than originally predicted. This can be difficult to deal with is funding is limited so its a good idea to build contingencies into your financing plans right at the start. That way when the surprises pop up, you will be ready for them.

When thinking about renovation financing there are two likely candidates for you to consider. The home equity loan and the home owner's line of credit. The amount available for a home equity loan is based on the amount of equity that you have built up in your home. This loan is sometimes referred to as a second mortgage. It is calculated by taking the value of your home and subtracting the amount left outstanding on the original mortgage. If you own your home outright, then the amount would be the home's value. As an example, if you have a home that is worth $250,000 and you have already paid off $110,000 then your accumulated equity would be $140,000. The value of the property is what guarantees the loan so the interest rate is low as well as they payments. It is also normal to be able to secure fixed interest rates for such loans.

The other popular financing option is the home owner's line of credit. This loan does not have a finite amount save for the limit which is once again decided by your equity. This is a popular option as it allows for a lot of room when considering costs. The loan operates much like a credit card, with a variable interest rate. This is certainly the most flexible of the options and does not have a definite end date. The line of credit remains open for as long as you need it and do not close it out.

The best way to discern which type of loan is proper for your needs is to confer with a financial expert or banker. Prioritize your needs and try to find a loan that is tailor made for you. Remember that your home is going to be on the line as collateral so be sure to plan your payment schedule carefully and within what you can afford to pay. Make sure that you research all your options here and find what work s for you and for your budget.

Frankie Bastek is a professional and experienced Realtor® spaecializing in the Orange County area. For the best service and advice concerning Laguna Niguel real estate, check out www.homefindings.com.

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