What Everybody Ought To Know – Five Smart Ways to Advertise Your For Sale By Owner (FSBO) Home
 by: Evelyn Grazini

Most people over-stress when trying to determine how to advertise a “for sale by owner” home. But it’s really not that hard if you concentrate on these five methods.

According to the National Association of Realtors, the primary sources prospective buyers use to find houses are as follows:

1) Agent: 86%; 2) Yard sign: 69%; 3) Internet: 65%; 4) Newspaper: 49%; 5) Home book/magazine: 35%; 6) Open house: 48%; 7) Builders: 37%; Television: 22%; 9) Relocation company: 14%

As you can see, numbers 1,7,8, and 9 would not apply to your home for sale by owner, so lets concentration on the others.

Yard Sign – To capture people driving around looking for a house in a particular area, you are going to need a yard sign. Your sign should be approximately 18×24 or 24×30 inches, and easily seen from the road. The sign should NOT be a red and white plastic sign. It should look professional. You can find professionally made signs on FSBO sites, or you can make your own by going to the hardware store and getting a larger size steel frame, and using vinyl lettering or numbering.

Internet/Newspapers: If you have no idea where to start creating your newspaper ad, the easiest way is to find an ad that you particularly like and cut it out of the current newspaper. Find homes similar to yours, then you can easily mix and match phrases and approaches to create your own successful ad. Make sure you include a picture and a description that will entice the reader to call for more information.

You can save money by advertising only on the major Real Estate Ad days (usually weekends). Most newspapers will put your ad on the Internet for free when you place the ad. There are also Internet sites that will place a special ad for you with extra space for a picture, and full description.

Home book/magazine – Real estate magazines are a great place to advertise because they are placed in high traffic areas and picked up by people interested in buying properties. These ads usually cost the same as a classified ad in a newspaper, so if your funds are low, you may have to choose between the two of them.

Open House – The smartest time to hold an open house is when a Real Estate Agent is holding one in your neighborhood at the same time. Then, you can put up your sign at the end of the street and capture some of that traffic. Be sure to have plenty of signs available, and advertise in local newspapers, real estate magazines, flyers, etc. Also, have plenty of flyers in your information box. The “nosy” neighbors will take a few, but you want to have enough available for those who are doing comparison-shopping when they get home.

MLS – If you’re doing everything you can and still not finding people interested in your house, consider working with a low cost Real Estate Broker, a Discount Broker, or a Medium Service Broker, (who may be Internet based). Through these resources, you may be able to place an ad in a Multiple Listing Service. Be sure to include a photo of the house. Text only descriptions just will not do.

About The Author

Evelyn Grazini delivers For Sale By Owner (FSBO) advice to help you sell your home fast! – Find information, free articles and a free report on “What to Repair and What to Remodel to Obtain TOP DOLLAR when you sell! http://www.fsbotactics.com/asale.htm.

If you are considering a move to the southwest, you should think about New Mexico. It is a large rural pace which has a lot to offer to the people living there as far as real estate is concerned. There are many year round outdoor activities, cultural events and celebrations. The prices of real estate are very different depending on the geographical location throughout the state. Santa Fe which is the capital of New Mexico is located in the north central part; Los Alamos is thirty minutes west of Santa Fe and a bit further on I-25 is Albuquerque which is the largest city in the state.

You have probably heard about Historic Route 66. It passes directly through Albuquerque where there are many nostalgic cafes and businesses along the route. If you keep on in south direction you will get to Truth of Consequences and then Las Cruces which is the second largest city in New Mexico. This is the place where I-25 ends and I-10 begins. Forty miles south are El Paso, Texas and the Mexico border. If you choose to go to the east, you will soon find yourself in Roswell and to the west, in Silver City located in the Gila Mountains.

After you got orientated in the state, let’s have a look at the New Mexico homes opportunities. Buying a home in the north central part of the state, in or around Santa Fe and Los Alamos is quite expensive. However, if there is any chance you can afford it; my advice is to get a home there. You will be surrounded by magnificent mountains, high desert mesas and truly astonishing views. It is also a great idea to live further north, near the town of Abiquiu and the Abiquiu Reservoir. I am sure you are well aware of the fact that you can find New Mexico homes at a reasonable price when they are in town or surrounding areas but they get much more expensive when they are near the waterfront.

Have you ever heard of Georgia O’Keeffe? She is a very famous painter who used her Abiquiu ranch to draw her most astonishing portraits. In case you’d rather live in a bigger place, then consider Albuquerque. New Mexico homes vary greatly in price, so no matter what is your budget you can still find a home which would suit your needs as well as your pocket. If you have some extra cash, maybe you will like Las Cruces, known as being one of the class retirement destinations in the country.

The prime place to find great New Mexico homes if you’re considering moving is the Internet. Hop online and view available New Mexico ranches, flats and land for sale. You can get all properties available for sale from the Multiple Listing Service. Accessing the MLS is easy; most of the real estate sites offer it. You can also view some virtual tours of New Mexico homes which is the second best in case you cannot go there.

If you’re consider purchasing a home or a property, New Mexico is the right place to look for any. By buying a New Mexico home you will make a great investment. Not only will you be able to enjoy clean air and cosy life but you will also get three hundred days of sunshine a year. The weather in New Mexico is temperate all year round because of the mountains and desert serve. Thus, if you have the money, don’t hesitate to buy a new home in New Mexico. You will never regret it.

About The Author

Morgan Hamilton offers expert advice and great tips regarding all aspects concerning property. Get the information you are seeking now by visiting http://www.thepropertyprince.com/real-estate/real-estate/tips-for-finding-great-new-mexico-homes.html

Technorati Tags: Multiple listing service

Types of Listings with Agents
 by: Sameer S Panjwani

There are several different types of listing contracts. Few of them are detailed below:

Open Listing

This type of listing is when you, the seller, don’t want to commit to any one particular agent and when you are also open to selling the home by yourself. This type of listing with an agent gives him the right to bring buyers around to view your home and should the deal go through, the agent earns a commission. This is a non-exclusive type of listing and the disadvantage of such a listing is that the agent is not going to spend too much on marketing your home or putting it in the Multiple Listing Service. The advantage of this type is that, should you find a buyer yourself, you would save on the commissions that would otherwise go to the agent.

One-Time Show

A “one-time show” is similar to an open listing and is most often used by real estate agents who are showing a FSBO (for sale by owner) to one of their clients. The home owner signs the agreement, which identifies the potential buyer and guarantees the agent a commission should that buyer purchase the home.

Exclusive Agency Listing

This type of listing would have you sign on with only one agency / agent and would ensure they get the commission if another agent brought a buyer for this place. However, if you get a buyer on your own, the agent is not entitled to any commission. This is not a popular type of listing agreement. Some unethical buyers or sellers will try to cut out the agent, even though it was an agent that brought the buyer to the home.

Exclusive Right to Sell

This type of listing involves entrusting your agent with the exclusive rights to sell your home. Regardless of who sells the home, even if you sell it yourself to a friend at work, your listing agent will earn a commission. Such listings usually give an agent to spend on marketing your house and also listing it on the MLS.

About The Author

Sameer S Panjwani is the CEO and Founder of ChoiceOfHomes.com – A Real Estate Portal for Home Buying, Home Selling and Home Renting. The website is a useful resource of Home Listings, Articles and Information related to real estate. Website url: http://www.choiceofhomes.com

sameer@choiceofhomes.com

Technorati Tags: Multiple listing service

A house is, for most people, the largest asset they possess. As such, finding a great Toronto real estate agent to help you sell or buy one is probably the single most important thing you can do. You want to work with an agent best suited for your needs as well as one who knows how to go about closing the deal. Here are some great reasons why you should use an agent to sell your house.

To begin with, it saves you time. You are not the one running around working out the details of the deal. A good agent will be happy to show your house to potential buyers and take good care of it. You have to make sure that the two of you are in agreement about the terms and conditions and then you can sit back and let the agent work his magic.

Secondly, you can take advantage of the experience and expertise of the agent as he comes with information about the current housing market that you are not privy to. Be sure to engage a person who does this full time, meaning that he is surrounded by housing deals every day. You also want a person that upgrades their skill from time to time by going to various briefing sessions as well as seminars. He should have information and trends at his fingertips and should know the current price range of the neighborhood you are looking to move into.

The third reason why you should engage the services of a Toronto real estate agent is the network contacts that he has in this field. This may make all the difference between selling your house quickly and waiting a year to sell. He also has information that may be beneficial to you and know other professionals that may be able to assist in case of difficulty. As such, you end up gaining the advantage of having access to his or her sphere of influence.

The fourth reason is that you will gain access to the multiple listing service via your agent who looks at it daily. Even though for a small fee you can access it, you may not be able to correctly interpret the information you find. This is the major source of properties in Canada. It has been around for a long time and agents are the best people to ask how it works and the best way to take advantage of it.

Another great benefit of using a Toronto real estate agent is that you get free advice from him. It comes at no additional cost and is invaluable in most cases. Some of the advice they give may seem menial or offensive, but shouldn’t be taken as such. For example, he may say that your house is too cluttered. This is because he knows that buyers need to see the house as it is without the clutter in order to visualize the home with their own belongings in it.

In conclusion, it is possible to buy or sell a house on your own without the services of an agent. But, utilizing an agent will save you time, energy and headache and make your overall experience much smoother.

About The Author

http://www.MyCityToronto.com is Toronto’s premier online business directory. You can also play games on MyCityGamer, Socialize on the Social808, watch videos on MyCityMyTube, find local news, weather, traffic and much more. If you need to find it in Toronto, you can find it on MyCityToronto!

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If you’ve been keeping up with my blog posts lately you’ll know I’ve come to adding a few news posts from around the web on this subject. I’ve got a couple more today that are new and updated, so let me know what you think of em…

Mls merger in the offing could make real estate agents more …

In what would be a giant step toward a statewide system of listing homes for sale, a multiple listing service called calREDD, concentrated in northern California, and the Multi-Regional Multiple Listing Service, which covers a large …

Yonkers, NY 10705 | MLS# 3015633

For sale: 0 bed, 4 bath, 3800 sq. ft. house located in Yonkers, NY 10705 on sale for $849000. MLS# 3015633. A classic Arts & Crafts home in historic Park Hill in a prime location on Eagle Rock off…

Zephyr Real Estate’s Luxury Market Share Is Fastest… | Home Blog

WIRE) — Based on figures compiled from the San Francisco Association of REALTORS(R) Multiple Listing Service, Zephyr Real Estate has increased its market share in luxury residential property in San Francisco by more than 30 percent …

Hope you enjoy the read as much as I did and please if you have something to say, use the comments form below to let everyone know your thoughts.

Have a great day!

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Ok so you might find the next few links interesting. These are from around the web, just random snippets that I’ve picked up in my reading, but I found some very cool information in them. You might too. Here goes…

3 Horton St, Rye, NY 10580 | MLS# 3015921

For sale: 3 bed, 2.5 bath, 1829 sq. ft. house located at 3 Horton St, Rye, NY 10580 on sale for $795000. MLS# 3015921. Inviting 1926 Colonial has many orig. period details/ lovely wood built-ins i…

5 Eldridge Ave, Ossining, NY 10562 | MLS# 3015971

For sale: 3 bed, 2.5 bath, 1368 sq. ft. house located at 5 Eldridge Ave, Ossining, NY 10562 on sale for $339900. MLS# 3015971. 1994 Colonial,walk to shops & bus, in good condition,lots of storage,…

50 Park Dr, Eastchester, NY 10709 | MLS# 3016427

For sale: 4 bed, 2 bath, 2227 sq. ft. house located at 50 Park Dr, Eastchester, NY 10709 on sale for $659900. MLS# 3016427. Well maintained, quality stucco colonial with an open feel, fine plaster…

Hope you enjoy the read as much as I did and please if you have something to say, use the comments form below to let everyone know your thoughts.

Have a great day!

We have heard the question, “Why should we hire a real estate agent?” If you are asking yourself this question, you should know some people do just fine without a real estate agent, many don’t. Before you enter into on of the largest transaction of your life, take two minutes to read the 10 reasons to use a real estate agent. It could save you from losing thousands of dollars

1. Agents Filter out the Speculators and Bargain Hunters

A good Realtor will protect you from parties who are not always savory characters. At showings and home visits the Realtor will act as a buffer between you and the other party preventing over eagerness or any kind of intimidation. Speculators may try to take advantage of those who don’t have much experience with real estate transactions through the price, delaying closing offer, expensive terms, and not honestly prorating the escrow. If you bought a new home, your agent will keep the builder’s agent at bay. If you’re selling your home, your Realtor will try to target serious buyers only. The real estate agent weeds out the fluff and offers protection. Like a good doctor a stand-up Realtor should fight for your best interests and offer guidance through one of your largest transactions in your life.

2. Experience/Education

Using a Realtor will save you time. It takes a very dedicated, experienced, educated, to get your home sold today. You shouldn’t need to know everything about Real Estate if you hire a professional. It can be tough to find the right agent. For the most part they should all be similar in price. Why not hire the one with the more education and experience than you? Hiring a real estate agent will save you time.

3. Knowledge of Your Neighborhood

A Realtor can give you valuable insight into neighborhoods. If you are purchasing a home you know you’re not just purchasing a home but a neighborhood as well. A real estate agent can associate comparable sales and relay the details to you, besides pointing you in the right direction so you can find more facts on schools, crime, occupations, education level, and income. Realtor estate agents will also know of future developments and home sale info that isn’t available to the public.

4. Price Guidance

A Realtor will guide you through the process of setting a price. When you are selling your house it is crucial you choose the right price. Pricing it too low may encourage people to think something is seriously wrong with your house or losing money. If the price is too high it won’t attract buyers. A good Realtor will give you a very accurate price range for your home, based on recent real estate activity in the neighborhood, market conditions, and of course, the state of your home. The Realtor does not set the price of the home, contrary to what some people believe. However, the agent will guide you so that you can make the right decisions.

5. Current Market Condition Info

A Realtor knows the market conditions and can give you a better angle when buying or selling a home. Data such as average DoM (days on market), median and average sales price, the square foot cost of similar houses, number of houses on the market and more. The data can be overwhelming to sort through, even those starting in real estate investment often pay too much in their initial investment due to the lack of knowledge in estimating the current market value of the property. There is no one source or web page online for the info. There is no blue book value for houses. Each home is unique. The current market value of a property is a very effective tool a Realtor possess and you probably won’t.

6. Network

A Realtor can often get quicker sales and notify you of new listings. Let’s face it, Realtor are dedicated to building and maintaining professional relationships and when it comes to real estate, you probably don’t have the same size and quality of network. Because of their professional relationships, real estate agents can also be a powerful asset when choosing companies or individuals. Agents can provide background information and references allowing you to make an education decision. Because of their network a good real estate agency will be able to notify immediately after new listings are on the market.

7. Trained in Negotiation Skills

A good Realtor will be a skilled negotiator. Owners may not be prepared to negotiate price, terms, amenities, and the personal items that will or won’t be included in the sale, especially if their emotional attachments get in the way. A good Realtor will be a skilled negotiator. They are trained to present their client’s listing in the best light.

8. Save You Time and Headache

A Realtor can help you with a lot of difficult paperwork. Unless you like handling volumes of paperwork, federally mandated disclosures and purchase agreements, the paperwork can be daunting. A real estate agent will guide you through the process. Making a mistake on the paperwork could cost you money or you could end up in court. In some states lawyers handle the disclosure.

9. Provide Guidance After the Sale

A Realtor is a life long asset even after the sale. After a closing complications can arise, tax assesments, doc stamps, or transfer tax Even the smoothest transactions that close without complications can come back to disturb. For example, difficult authorities that collect estate tax assessments, doc stamps or transfer tax can collapse months behind and mix up invoices, but you can call to your agent can straighten out the mayhem.

10. Marketing

A realtor will get your listing more exposure. When you are buying or selling you want to spread the word. Realtor estate agencies have many marketing tools in place to deliever your listing to strategic parties. Realtors not only market your listing to the public but also to other real estate agents. In markets across the nation, a little over 50% of real estate sales are cooperative, a real estate agent other than the one you selected finds the buyer. So inn essence the realtor acts as a marketing coordinator by enetering your listing into the MLS (Multiple Listing Service) in Minnesota

About The Author

Jeff has hands-on real world experience that he can put to work for you. Being involved in both residential and commercial real estate gives Jeff a well-rounded background in this market.

For the Original Article: http://blog.lakehome.com/?p=490

Jeff’s Real Estate Blog: http://blog.lakehome.com

Technorati Tags: Multiple listing service

Thinking of Investing in Residential Real Estate: It’s Still Location, Location, Location

Remember this: land is the element of real estate that appreciates. Man-made structures begin depreciating from the day they are constructed.

Think schools first.

Schools are often the first consideration for first time home buyers and renters – at least 80% to 90% of the time in my experience. These folks are most likely your biggest target market in your exit strategy for the investment properties you acquire.

Contact the main office of the district(s) serving the neighborhoods you’re interested in. Check the standardized test scores for the district. Obviously, the higher the better as an indicator of how well the district is perceived to be doing. You may be able to find the scores on line too.

Study kindergarten – sixth grade enrollment statistics (also available from the school district). Try to go back as far as ten years. You’re looking for growth in elementary school enrollment. Lots of growth equals desirable neighborhood.

Stay close to home.

Many books and courses advise you to purchase investment property located within a thirty mile radius of your personal residence. I say that’s still too far. Shoot for twenty miles, preferably fifteen.

Here’s what happens with too much distance between you and your investment. It will suffer from your neglect. An extra fifteen miles and minutes is enough to keep you away when an on site visit might really help.

Analyze the neighborhood.

Profitable neighborhoods have a common characteristic; people who can qualify for bank financing (now or in the near future) want to live there.

Ideally you’re looking for entry level to lower mid-range housing, 15 – 50 years old. It’s OK if the area is a little blighted as long as things are on the upturn. Look for visible signs of redevelopment.

Get acquainted with a competent real estate agent that does a lot of business in the neighborhood you’re investigating. Have him or her search the local Multiple Listing Service database and pull up “active listings, pending sales, and sold comps” for the area. If you plan to flip you want an active market – one, it makes it easier to estimate a final retail value for the properties you’re considering buying and two it shows that there are active buyers in the market now. Even if you plan to rent you still want to own in a location that is in demand.

Here are some things your real estate agent can help you sniff out.

• Look for closed sales transactions. There should be a healthy number. A lot of active listings and few closed sales is not a good omen for you.

• At least 70% – 80% of the closed sales should be to owner occupants – not investors buying rental units.

• The majority of buyers are purchasing with conventional bank financing, not various forms of owner financing and other creative methods.

At any rate, stay away from “war zones” with large tracts of run down, vacant houses, high crime rates, etc. These areas can be tempting because people do live there (generally renting) and the ratio of rental income to property values provides the landlord with a much nicer “spread” than is achievable in nicer areas. Some investors literally make a fortune in these neighborhoods. However, it’s probably the toughest segment of the business to operate in. And, alas, 90% of us cannot pull it off.

And now a few last thoughts about the layout and placement of the lot. If any of the following are present, I suggest you pass and move on to the next candidate. These kinds of functional negatives are either impossible or just too hard to overcome and in anything less than a red hot market they will significantly lengthen or kill your exit strategies for the property.

• The lot sits on a hill of any kind.

• The driveway or yard slopes toward the house.

• The lot is located in a flood plain, a valley or sits lower than the properties around it.

• The lot is close to a large stream or drainage ditch.

• The lot is on or backs to a busy or noisy high traffic, street.

• The lot adjoins commercial property or is in a commercial area where traffic, noise, lights, etc. might interfere with quiet enjoyment of a residential property.

• Any land that you know has formerly housed a manufacturer, dry cleaner, gas station or landfill.

Good hunting and choose your location carefully – a bad one can make your investing life miserable.

Jim Howard

http://www.realestateshelf.com

About The Author

Jim Howard is happy to share his love of real estate with you at realestateshelf.com. Jim’s experience with real estate spans 24 years, during which he achieved the Certified Property Manager designation through the Institute of Real Estate Management while throwing in an MBA along the way. His range of real estate experience includes managing and leasing industrial, retail and office properties as well as managing is own portfolio of residential investment properties. Jim is a licensed real estate broker in the state of Missouri.

26 Bonnie Way, Larchmont, NY 10538 | MLS# 3015170

For sale: 4 bed, 4.5 bath, 2450 sq. ft. house located at 26 Bonnie Way, Larchmont, NY 10538 on sale for $929000. MLS# 3015170. This classic 1930s Colonial features a traditional center hall layout…

48 Monroe Ave, Larchmont, NY 10538 | MLS# 3015935

For sale: 6 bed, 4.5 bath, 3278 sq. ft. house located at 48 Monroe Ave, Larchmont, NY 10538 on sale for $1349999. MLS# 3015935. Sun-filled Victorian Manor home is the ultimate in restored old wor…

3426 Fairview Ct, Yorktown Heights, NY 10598 | MLS# 3015872

For sale: 3 bed, 2 bath, 1700 sq. ft. house located at 3426 Fairview Ct, Yorktown Heights, NY 10598 on sale for $395000. MLS# 3015872. Lovely, spacious & bright side split level. Well landscaped c…

Hope you enjoy the read as much as I did and please if you have something to say, use the comments form below to let everyone know your thoughts.

Have a great day!

Technorati Tags: Multiple listing service

Hey Readers! I’ve been comin across some crazy stuff the past few days from a few different blogs around the web which I just had to share with you. Check em out below…

91 Highland Rd, Thornwood, NY 10594 | MLS# 3015823

For sale: 3 bed, 2.5 bath, 2100 sq. ft. house located at 91 Highland Rd, Thornwood, NY 10594 on sale for $795000. MLS# 3015823. This all new beautifully renovated home truly has the best of everyt…

663 Locust St Unit 2B, Mount Vernon, NY 10552 | MLS# 3012159

For sale: 1 bed, 1 bath, 550 sq. ft. condo located at 663 Locust St Unit 2B, Mount Vernon, NY 10552 on sale for $115000. MLS# 3012159. Move right in to this lovingly maintained, impeccably decorat…

Metro Vancouver real estate sales to drop 3.5 per cent in 2010: CMHC

CMHC is forecasting that Metro Vancouver will see 35000 property sales cleared through the realtor-controlled Multiple Listing Service, a 3.5-per-cent decline from 2009 and will slip another three per cent to 34000 transactions in 2011. …

Hope you enjoy the read as much as I did and please if you have something to say, use the comments form below to let everyone know your thoughts.

Have a great day!

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St. Albans, NY 11412 | MLS# 2292646

For sale: 4 bed, 2.5 bath multi-family (2-4 unit) located in St. Albans, NY 11412 on sale for $549000. MLS# 2292646. 2 Family Brick/Stucco Colonial On 40X100 Lot. 2 Over 2 With 2 Car Garage And Fi…

List on MLS Miami Dade County Florida – List in the MLS Monroe …

List your Florida home or condo in your local REALTORS® MLS & Realtor.com for a low Flat Fee + (plus) a negotiated buyer’s agent commission and save.

Northwest Multiple Listing Service Members Donate Thousands of …

Nearly 6000 pairs of shoes are en route to Haiti’s earthquake victims, thanks to donations from members of Northwest Multiple Listing Service, a Kirkland-based company. During the month-long drive, real estate brokers, agents and their …

Hope you enjoy the read as much as I did and please if you have something to say, use the comments form below to let everyone know your thoughts.

Have a great day!

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Representation And The Home Buying Process In This Market

Representation
Most people just do not appreciate the job of a realtor. Yes, while minimal training goes into being a realtor, it is none the less training that society at large has come to appreciate. An old law exists that underpins a primary purpose for realtors- statute of frauds. It is the adoption by nearly every state regarding this old law from England that governs real estate transactions and that it- if it is not in writing it does not exist. There are many paragraphs contained in a standard Real Estate Purchase Contract that each state has adopted peculiar to how common misdeeds and oversights have posed problems in that past. Certain situations that require addressing these things or additional items to a contract to be written up separately on an addendum underscore the importance for some training and expertise, so that people do not get exploited.

Now, many a transaction has taken place without realtors, that have gone just fine, which transactions are commonly called “for sale by owner”. But it is those that don’t go fine that sometimes lethal consequences can happen for the unrepresented and all instances do not involve the statute of frauds.

Usually, the largest body of investment of money within a person’s lifetime takes place during a real estate transaction. They can and do go wrong. Just ask all the people who bought way to high without the help of a realtor who could have warned them about the home being above market value, who are now in foreclosure and they will tell you, yes, most certainly, I should have had a realtor. Conversely, many more “for sale by owners” do not know that they have just “given their home away” for less than what is was worth. By the way, many know or have not cared and are less greedy than the rest of us, praise be to them. On a personal note as a realtor, it strikes me as how amazingly common it is, as I even myself was raised with a ‘garage-sale’ like mentality, that we expect not just a good deal when we are buying, but also when we are selling, and somehow call ourselves ethical and “All-American”. What about the the poor guy on the other side who didn’t get the good deal… how considerate have we been to them? Yet, we appear to have clear consciences all the way to singing ‘Dixie’.
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The current problems we are having involving the sub-prime market and with bad lending practices came about because the institution built their projections on untried models. They are now re-mapping how they do that. Real estate bases its practice off of comparables, and on-the-ground information about supply and demand, not off models.

It is precisely because of such circumstances, both preserving an otherwise exploited public, to market value transactions and the statute of frauds, that the value of a realtor’s profession is honorary and civic in nature and not just about capitalistic salesmanship. It is like having insurance, we don’t like the co-op expense, but it protects those who need it. Only in this case, all benefit in some way.

Buyer Representation
In most areas the Multiple Listing Service (MLS) is ran by your Local County Board of Realtors that gives listing access to participating brokerages and most brokerages, if not all, participate. You’ll need to check your local area to see if this is the case. Rules governing listings in the MLS, typically specify in the listing, or have as there norm, a percentage of commission that will be split in some fashion between a buyers agent and a sellers agent. Therefore, if the existing rules that govern, have gone through considerable trouble to get the seller to “put up” enough commissions in the asking price to cover both the sellers agent AND the buyers agent, you may want to use the system because it has made your representation free.

Now given the current system, that while the seller pays both ends when selling and as a buyer they pay nothing, there is another way to look at how cost is transferred across the table. If the seller uses a realtor to sell and then uses a realtor to buy it could have been arranged that given an equal sell of home to an equal purchase price, with a total of 6% being incurred, that a 3% charge is levied for selling and 3% for buying. Only in our current system, you pay it all when selling.

This can tend to underscore the importance as a buyer, to be sure to defer to your own realtor, if you see other realtor signs or other opportunities for things you need information on. This is in the case you plan on using the free representation of a buyers agent provided you on participating realtor sold homes. That’s right free, because the Seller has already agreed to “foot” the bill for your side of representation, already represented in the asking price.

Many people will sometimes call the sign in the yard, and as the buyer may end up choosing to have the Sellers realtor represent them, in states where it is legal. Do people understand fully that, that Sellers Agent will get both commission sides, those held out for representing his seller and now those for representing you, the buyer? So, you may want to be careful when “choosing” to “go the sign in the yard” route. If you are calling for information, you may want to introduce first that you have an agent, but that you have some questions. Don’t expect the Sellers agent to direct you toward any other representation, but what he or she will gain by wooing you with the enticements you now possibly feel for a showing of that property, which if in showing it to you, you may now tend to a felt sense of obligation toward that agent. Still, only at the very end of that trail in having the Sellers agent help you, if in making an offer, will you find in bold letters, the disclosure of such Limited Agency situation, which you now find yourself in… that ‘you do not have to go that route, but are now consenting to it’ (yes, but fine, after you’ve inadvertently made that agent do all the work and he/she is holding a pen for you to sign it).

If the Seller represents both sides, this is commonly referred to as Limited Agency. Limited Agency is when the agent that represents the Seller is also going to be representing the Buyer. Limited Agency has the following possible disadvantages:

The listing or LIMI
1000
TED realtor may not be inclined to:
Go after information that can be used to leverage your position as a buyer and there are all kinds of questions a buyers realtor can ask the listing realtor if they are astute to the art of negotiations that appreciates that knowledge is power.
Share with you any reasons why not to buy “this” property.
Negotiate the best price and terms for you, because that would hurt the interests of his Seller.
Include contingencies in the contract that protect YOU rather than the seller, including standard clauses.
Keep confidential any information that could hurt your bargaining position. This is where your bottom-line on price or something else that is confidential, un-be-knownst to you, may have been shared with the Seller.
Remain neutral, when taking sides is an option.  For example; a parent would never confess to admitting to having a favorite child, even if his/her siblings know who the favorite is.
Where Limited Agency is legal there is a possible advantage:
It is possible that you may have less trouble melding terms you know the Seller will accept when his/her agent is also present to help you with yours; typically when you thing you can make your case stronger than the other agent. Although it may not always happen ideally, the Limited Agent can try to depict an objective picture of value, when it comes to helping you negotiate an asking price. However, fiduciary (or ethical) duties keep the ‘Limited’ Agent from giving away the Sellers motivations, bottom line, etc. In other words, the agent is bound by fiduciary duty to become less involved in sharing or ‘going after’ otherwise tedious (research driven) or privy information. Thus, the Limited Agent acts as neutral as possible.

Remember that in most cases, having an agent, can really help you, both in your search process and in being represented well. Now may be the time, to become knowledgeable and comfortable with the choice of an agent and thereby in finding your dream home to be purchased.

The above information can depend on the area so check with local professionals deemed by local (sometimes national) governments to be the appropriate professionals for consulting and doing real estate transactions, including disclosure for appropriate professionals in all areas of expertise and confirming or denying any information held in this article.

By: Brian Habel

Article Directory: http://www.articledashboard.com

Brian Habel is an active full time real estate agent with RE/MAX First Realty in St George Utah- the fastest growing community in the U.S. for over a 5 year period of 2000-2006. His background includes both construction and paraprofessional work as a Child & Family Counselor making for good people skills, sales skills, and housing knowledge. He specializes in cutting edge service and technologies for both finding and selling St George Utah Real Estate. Check out Brian’s blog at St George Utah Real Estate Blog.

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The stars have lined up against many would be buyers with the amount of baggage they bring to the table in the way of challenged credit. They want to buy something. They need to buy something. Whether it be a recent bankruptcy, repossession, foreclosure, large medical bill collections, identity theft or judgements or recent unemployment any one of which can plummet a credit score and put the would be buyer in a financial hole. In a soft real estate market where owners need to sell and have a high degree of motivation to dispose of their property. This is the opportunity that a buyer with challenged credit history can seek to “help” a seller out of their current dilemma by arranging sale terms that will help both buyer and seller. These scenarios may not work for anyone who has zero options, zero income and zero means to pay anything back. It is rather, for those who are fighting their way back and do have options, have income and now have means to meet their obligations on a negotiated deal. This will not work if a buyer throws their hands up and gives up to the possibility of buying a property. This opportunity will work for those buyers who have a need as well as a burning desire in their belly to buy something that will meet their family goals and will do what is necessary to make it happen.

A buyer needs to be aggressive in their efforts to take advantage of this temporary real estate market. Some areas of the country have more opportunities than other areas. However, there are deals in every area. A buyer needs to find them. There is little reward for a buyer to deal with an unmotivated seller. There must be pressure on the seller to move the property. Whether it be for reasons of health, estate situation, job loss, divorce, out of state move, downsizing, upsizing, budget, cash flow or other reasons if a buyer with checkered credit has a shot of doing something. A buyer early on will need to come to the conclusion that the chance of matching the perfect house with the perfectly motivated seller will be slim. Therefore, from the get go the buyer must be willing to compromise on the purchase. The buyer must realize that this is not the last home they will buy, it is the first home they will buy with a high degree of challenged credit. The buy decision, although well thought out, must recognize the purchase is not permanent and is not fatal. It is simply a means to get into a property and get on the equity accumulation train, which will help them over time. So the search begins to find a motivated seller while being somewhat flexible while not having unreasonable expectations that will not fly with the current credit circumstances.

Buyers can try to do it themselves or choose to bring in a professional realtor who knows the market. Right now a lot of realtors have a lot of time on their hands. Six months ago when the market was raging, that was not the case. What a difference a day makes. The criteria then on a broad based approach would be to find a vacant home, on a realtor lock box, with a lower mortgage balance and with a high seller motivational to move the property. If a property is not listed, then the seller may not be motivated enough for a buyer’s purposes. They are not serious enough. If a property has had three or four price reductions in the last few months in the Multiple Listing Service this would be a sign of a motivated seller. Likewise if a seller has indicated a willingness to pay for buyers closing costs, hold a second mortgage, consider a lease option or a lease purchase, these are all signs of the degree of seller motivation necessary for a buyer with challenged credit to find a workable property. Early on in the realtor selection process, a working relationship must be established with a realtor who is willing to make multiple offers and does not take rejection personally until an acceptable deal can be negotiated.

At the same time, a mortgage broker will need to be contacted to determine exactly what is possible in the way of a first mortgage. Banks are not geared to do what will be required to make a deal with challenged credit. It will be assumed that in spite of the past history, the buyer now can make a monthly mortgage payment and may even have some cash to work with. Cash can be gifted from parents or other sources if necessary. The results of the mortgage broker interview will dictate what and how the deal will need to be structured. Pulling credit will determine if the housing history is 0 x 30 (meaning no housing payments more than 30 days late in the last twelve months) or worse. Collections, judgements, repossessions or any other adverse challenge the buyer may face will be noted. From this exercise, a buyer will have a payment number in hand for their monthly housing expense including principal and interest, taxes and insurance and perhaps a maintenance fee (as found in an association or condo) all inclusive in the monthly housing expense. The mortgage broker and realtor will need to work in tandem to structure the deal that is achievable on part of the buyer. Many times, in the market place the deal is negotiated without any thought to the financing. Here it will be necessary to fix the financing first THEN find the house. Most buyers with a 580 score or better can get a 95% Loan To Value first that allows a 100% Combined Loan To Value. This will no doubt be a subprime type loan with the first being one loan with no Private Mortgage Insurance (PMI). An offer might look like something like this:

Purchase price would be at say $225,000 with a 95% LTV first mortgage of $213,750 and allow a 5% LTV seller held second of $11,250. The rate on the first would be for this scenario 8.5% on the first and aggressively negotiate the same for the seller held second or less. A seller may rationalize that they were going to reduce the price another $10,000 in 30 days anyway and this way I get most of their cash now. Following then, the first mortgage of $213,750 with a rate of 8.5% with payments on a 2-year fixed ARM of $1,643.55/month. The second of $11,250 at say 8% on a 10 year basis would be $135.95/month for a total principal payment of the first and second of $1,779.50/month plus taxes of $300/month and insurance of $220/month for a total housing expense of $2,299.50/month in housing expense. With a subprime loan, collections and such are not included in the debt service calculation if they are old enough. So for a working couple if the lender allows a 50% debt ratio to income the minimum income on a full documented loan would be $2,299.50/. 50 = $4,599/month. Say the wife makes $3,000 per month and the husband makes $1,599/month then they would just make it. The seller would need to pay all the buyers closing costs and prepaids (tax and insurance escrows and advanced fees) and any buyer cash can be used for monthly lender reserve requirements.

In summary then, this is a temporary buyer’s market in most areas and to be successful buyers need to focus on motivated sellers. Even before looking at any property the seller’s agent must be interviewed to determine if there is a high motivation of selling the property by paying all the buyers closing costs and prepaids and perhaps hold a 2nd mortgage. If there isn’t, the buyer should not be looking at that property. If the buyer has a vacant lot, a small mortgage note, income property or anything of value like a boat or motorcycle can all be brought to bear on a deal. The barter and trading process is how America was built. Working in tandem with a professional realtor and a mortgage broker a buyer can enlist some professional help to meet the needs of their family even with challenged credit. It is not a static situation. During the first two or three years of this scenario the buyers need to put their financial house in order through family budgeting and planning with discipline to qualify for a better rate and terms on their mortgage and other credit needs for their families future. In a few years through a lot of hard work and sacrifice they can be out of their financial hole and back on an even keel.

Dale Rogers

http://www.brokencredit.com

http://www.sellerhelpsbuyer.com

About The Author

Dale Rogers is a thirty-year mortgage veteran and frequent contributor to the Broken Credit Blog. The BCB is a free website created to assist the general public with information about credit repair and responsible mortgage lending.

http://www.BrokenCredit.com

http://www.sellerhelpsbuyer.com

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