The Value of Foreclosed Property
August 23, 2007
The discount on a foreclosed property is not as great if the state allows deficiency judgments by lenders against borrowers. In contrast, the discount is larger if the property is being sold in a state that requires foreclosures to proceed through the judicial system. Lastly, appraisals seem to be more accurate for low down payment loans, leading to smaller discounts at foreclosure.
Foreclosed properties may be vacant for a substantial period before they can be sold as the legal process of foreclosure runs its course. During this period, the lender’s costs of holding onto a foreclosed property increases because a property that should have been generating mortgage revenue, generates none.
In general, foreclosed properties sell at a substantial discount and this discount is larger when foreclosure occurs early in the loan’s life. The magnitude of the discount varies by the type of house, borrower and seller attributes, loan types, time and locations. Because local governments, not the federal government, define foreclosure laws, variations in how long and how costly the foreclosure process is also has a substantial impact on the size of the discount.
Home Inspection Checklist - Home Inspectors
August 22, 2007
Although architectural details, wall and floor coverings, modern conveniences and many other factors are important in the buying decision, the focus of this inspection is on the structural/mechanical/electrical condition of the property.
The inspection is designed to give the real estate agent or prospective purchaser a system to detect some of the readily accessible major flaws or deficiencies in the significant components and systems of a home. It is not designed to, nor does it profess to facilitate detection of all flaws, problems or occurrences that might exist in any given home.
To maximize time efficiency and to ensure all of the major sections of the home are take into consideration, we have developed a systematized approach to the inspection. This is a simplified overview of systems that professional home inspectors use when they are inspecting a home.
To assist you in following the system, we have provided a checklist that will guide you through your own inspection.
THE INSPECTION SYSTEM
THE BIG PICTURE
How to Sell Your Own Home and Save Thousands of Dollars
August 21, 2007
Most people take the easy way out when selling their home and hand the responsibility over to a real estate agent, when in fact the average homeowner is capable of selling their own home.
Apart from the satisfaction of making the sale yourself there is the bonus of saving thousands of dollars in agents fees.
So why do people choose a real estate agent to sell their home? Here are a few reasons, I’m sure you can think of more;
- laziness - lack of time - Lack of confidence - Unsure of what is involved - lack of relevant skills - lack of real estate knowledge
It may not suit everyone to sell their own home but at a guess I would say that 75% of Australians are capable of doing just as good a job as a real estate agent.
Let me tell you, it’s not as hard to sell a house as you think it is. How do I know? My wife and I have sold our last 2 homes ourselves and saved tens of thousands of dollars.
Evil Gains Entry
August 20, 2007
When we open our doors to strangers, we can never be certain what malice an outsider might bring in. Police officers tell us to keep our doors locked with good reason. Yet, every day in this country, thousands of naive citizens, aspiring to market their homes?without paying a brokerage fee?place themselves at considerable risk.
With fierce crime on an increase, eager For Sale By Owners, are often slack in their judgment of just how dangerous such a thrift venture is. Husbands become homicides, wives are ravaged, families forever devastated, all because invincible men are anxious to sell homes themselves to people who-they only want to believe?are qualified buyers.
What would For Sale By Owners do if they knew they were really buying trouble?
As a retired real estate broker, I feel qualified to shed some light on this, all too often, evaded area of concern. Most agents are reluctant to tell people just how dangerous it is to open their door to strangers. Understandably, people who must sell homes would, if they can avoid it, rather not pay sales commission fees. Of course, it is absolutely within a consensual couple’s rights to sell their home themselves.
Should you Sell your Home yourself?
August 19, 2007
Should you sell your home yourself? Yes and no. Yes, you should leave the option of selling on your own open and no, you shouldn’t rule out using the services of an agent to help you sell. There are a considerable number of advantages of using an agent to sell your home but their services do come at a price ? up to 6% commission on the sale price! That’s quite a sum, a precious $6,000 for every $100,000 your home is worth. Agents are not indispensable. With the advent of the Internet, a fairly sizeable number of owners have been able to successfully sell on their own. Statistics have it that 80% of home buyers begin their search for a home online. So, putting your home details on the Internet is one effective medium of advertising your home and reaching out to a large number of buyers.
For Sale By Owner Listings
August 18, 2007
Selling your home on your own, without a Realtor, is becoming less and less popular. This is surprising, considering that home values have skyrocketed and commissions have risen along with them.
The money to be saved can be significant enough to attempt to sell your home on your own. Especially when the market has historically low interest rates and high demand in most areas of the country.
To sell your home on your own however, you are missing the most significant marketing tool available to you. The Realtor’s Multiple Lisitngs Service (MLS).
70% of all home buyers start out on the web. So it is crucial for you to be in the MLS. But, the challenge has always been that to be in the MLS you have to sign with a Realtor at 6% of your sales price.
So if your home is worth $399,000. You would spend 6% on your sales commissions. Not to mention your title, escrow and other expenses.
So if you sell your house on your own you can save at least $23,940 ($399,000 x 6%).
But let’s get realistic. Most buyers work with a Realtor. So you will be spending at least 2% to 3% for the buyers commission.
When Showing Your Home
August 18, 2007
Here below are some of the reasons why buyers may be put off when visiting your home.
1. Welcoming Entrance - First Impression Matters
As has often been said, the first impression is the most lasting. It is as important, if not more, for your house to look good from the outside as it is to look from the inside. A prospective buyer wouldn’t be too impressed with an unkempt yard, unpainted exteriors or a chipped off front door. Get everything in order and in a position to show before putting your house on the market.
2. Odors
Cigarettes, pets and whatever else that may have your home smell in an unpleasant manner should be, at best, avoided. Although, it doesn’t mean that you spray perfume all over. A clean and fresh atmosphere is what is required.
3. Pets
Some buyers may not appreciate seeing pets at home. Some may be frightened or some may be irritated. You wouldn’t want your pets to be the cause of their distraction. Get your pets away while the buyers are there and let them see your house with nothing coming in the way.
4. Dirty Bathrooms
Before Selling Your Home
August 17, 2007
Here are some important steps you should take before you put your house on the market:
1. Home Loan Approval for your next Home
You don’t want to be signing a contract to sell your house before knowing if you are qualified to buy another. Your financial circumstances may have changed since your last purchase and you may not qualify for the loan amount you seek. You’ll get a good idea of what you can afford by getting a pre-approval before selling your house. You may then take the decision of whether or not it would be reasonable to sell your house at this point of time or maybe consider renting something after selling the house instead of readily buying another.
2. Determine Fair Market Value of your House
You’d want to get the best price off your property and in the quickest time possible. However, over-pricing your home will only limit your chances of selling fast and under-pricing may speed up the process but you lose out in the bargain. An agent or an appraisal service (free home appraisal here) should be able to assist in determining the fair market value of your home. Another way is judging by how much other houses in your neighborhood sold for. Irrespective of the method, one must be used to determine the true and best value of your home to ensure it’s sold in quickest time possible.
Water, Water Everywhere on the Waterfront
August 16, 2007
Waterfront living is among the most desirable of locations in our area (Florida). The views and vistas are fantastic, not to mention the ability to walk out one’s door to drop a line to fish or untie a line to enjoy boating. However, all this joy is not without some special concerns.
The most common fear heard from waterfront homebuyers is their concern that the river may rise and roll into their home. While it is not an impossible scenario, it is truly rare. More often than not, the water that posses the greatest risk to the waterfront home is not from the river, but rather from the water flowing overland toward the river.
Always remember that the river is the place that all water flows to. How a particular home is oriented to or obstructs the flow of water moving toward the river determines how dry the house remains. And for many homes in is not just how dry it is in the home, but also under the home.
The majority of water that affects the home is the surface water flowing toward the river. The volume of water can be in the thousands of gallons per hour during a heavy shower. If the grade of the lot is not proper, this can mean thousands of gallons of water in or under the home.
Virtual Agent? Online Real Estate
August 15, 2007
When preparing to sell a house, you should always consider the options of selling a home privately or listing with a real estate agent. Of course, the most cost effective option would be to sell your home privately, but what about the number of Home Buyers in the market who are not willing to consider a private sale listing?
I am a firm believer that people should be able to sell a home privately but, like a lot of people, was not the kind of person who would be comfortable buying from a Private Home Seller. What would happen if I made an appointment to view a Private Sale listing and then disliked the home? I would then be face to face with the Home Seller. I would be reluctant to say what I was really thinking. “I hate it…I’m wasting your time…You are wasting my time…You want how much for this?"
More frightening than that scenario, would be the problem of viewing the for sale by owner home and loving it. Negotiating an offer of this magnitude with the Home Seller, directly, could be intimidating and stressful. How could I be absolutely sure that I could trust a person whom I had never met before and, who obviously just wants me to buy their house? Once it was sold and I moved in, where would they be, if any pre-existing problems were discovered?
