For Sale By Owner

Is your home ready for a older generation?

2008-08-14T12:08:00.000-07:00

The News & Observer reported today that North Carolina's older population is expected to grow significantly in the coming years. About 20 percent of the American population will be older than 65 by the year, 2030, according to the U.S. Census Bureau. This would be a major increase from its present 12 percent.

It is expected that North Carolina will be lower than the national average at about 17.5 percent as North Carolina is currently growing rapidly among all age groups.

This expected increase in the older population will have an impact on the national housing market since many of these older Americans will require and demand housing that is more balanced with their lifestyle.

With a growing "active" older population, many of these homeowners will want housing that is more "carefree"; allowing them to travel without the need to maintain yards and other such daily and weekly homeowners duties.

Furthermore, another growing housing segment will be the need for single level homes where the aging population will not have steps to climb. This will be important since so many homes in the Raleigh/Durham/Chapel Hill areas have two stories in order to maximize the square footage onto smaller and smaller lots. These same homes will have fewer potential buyers as a growing demographic will be looking for another type of product and one that is somewhat lacking in the communities throughout the Triangle.

Finding a 2,500 square foot ranch in North Raleigh is a challenge for the best real estate agents in the area. As you move into the farther reaches of Wake County, you can find developments that have this type of product, but closer to Raleigh, you find very few of these properties. With the rising land cost, it will be hard for developers to purchase land for this type of product and make it profitable enough to market and sell these units at an affordable rate.

This aging trend will bode well for the condominium projects that have become very popular in the downtown areas, but the affordability for most of these products will not benefit the bulk of the aging population with limited wealth.

It will be an interesting trend to follow to see what happens and what new housing products will come online to assist this growing population.

Gas at 3 Month Low: Can it go lower? Will it?

2008-08-13T13:36:00.001-07:00

Did you hear the good news? Gas prices are down to the lowest level in 3 months. GAS PRICES ARE DOWN TO THE LOWEST LEVEL IN 3 MONTHS!!!

The average price U.S. consumers paid for a gallon of gas hit a three month low as the cost dropped 7.1 cents last week to $3.81. Yes, this is still $1.04 a gallon higher compared to a year ago, but it is moving in the right direction, primarily due to the lifting of the Executive Order by President Bush to drill off the coast.

This has caused a $33 drop in crude prices that we should expect to continue to fall over the coming weeks. According to the Energy Information Administration (EIA), every $1 price drop in crude oil results in a 2.4 cents off the price for a gallon of gasoline. If this is truly the case, then gasoline should fall about 79 cents from its peak according to the EIA. Of course, the national price has only fallen 30 cents, but common sense would dictate that the prices will decline slower then they rise due to unforeseen circumstances.

In the EIA's survey, the highest price for gas was on the West Coast at $4.06 a gallon, down 8.3 cents last week. This is the only region to remain above $4 a gallon with San Francisco having the highest big city price at $4.18, down 7.9 cents.

According to AAA Automobile Club, the average price in North Carolina has dropped dramatically over the past month from a high of $4.006 a gallon to $3.879 this month. Of course, this time last year, the price in North Carolina was $2.82 a gallon.

Who Qualifies for mortgage help and how to get it

2008-08-05T11:51:00.000-07:00

Questions and answers about the Hope for Homeowners Act of 2008, passed by Congress last weekend to try to steer as many as 400,000 struggling homeowners away from foreclosure: (Originally published by AP Business Writer, Dave Carpenter)

Q: What exactly will the legislation do?

A: It will allow those who qualify to cancel their old mortgage loans and replace them with 30-year fixed-rate loan for up to 90 percent of the home's current value. The FHA will insure a total of $300 billion of the loans over a three-year period.

But the decision on whether to write such a loan remains up to banks, which would have to be wiling to take a loss on the existing loans.

Q: Who is eligible?

A: Eligible borrowers must have spent more than 31 percent of their monthly incomes on their mortgages as of March 1, 2008. The troubled loan must have originated no later than Jan. 1, 2008, and be on the borrower's primary residence. And the borrower's income must be verified.

Stay tune for more Questions and Answers on the new Mortgage Bailout bill.

The Perils of Selling without an Agent

2008-07-29T08:39:00.000-07:00

I recently received a phone call from a former co-worker who lives in another city. He mentioned that he made an offer to purchase some land and the mobile homes that are on the property. We spoke for more than an hour and after which, he was not so sure that he made the right decision to attempt to purchase this real property.

One of the perils of purchasing real property without an agent is a lack of knowledge, from either the seller or buyer, or both. This situation, the seller did not occupy the property and wanted to sell, but did not know exactly what he had or the value that should be placed upon the property.

The buyer, my former co-worker, thought he had a great deal, but had no ideal how get the property to closing. After speaking with him for quite some time, he began to realize that it is not as easy as one would think to close on real property. His first concern was the mortgage that he would undoubtedly have to have in order to fulfill his obligation to purchase this home. Had he done it "true" due diligence, he would have realized that he should have spoken with a lender first, to make sure that he could obtain the financing required to purchase such an unusual property. He thought that financing would be easy since the agreed upon sales price was not very much. However, purchasing a manufactured home on a permanent foundation is not that easy to obtain financing, as most real estate agents would know.

Secondly, he did not realize that he would most likely have to hire an attorney in order to purchase this home. In North Carolina, the attorney actually prepares the new deed, so without an attorney, who would prepare the new deed? Furthermore, he did not realize that he may need to have a appraisal performed on the property if he was planning on obtaining financing. Most mortgage companies require an appraisal, especially for unusual properties such as this one.

Finally, after our conversation, he was not sure if the deal he had made would be the most beneficial for him in that the closing cost were on the table. The seller had offer to pay closing cost for a certain sales price. Otherwise, he wanted the purchaser to pay for the closing cost. However, my former co-worker failed to get clarification as to what and whose closing cost would be included. If the seller was willing to pay for all the closing cost, both buyers and sellers, then it would have been a great deal to pay an extra $500 to have the seller pay for them. However, if the seller was talking about only the typical seller's closing cost, then it would not have been a great deal since the largest cost for the seller, real estate commission, would not be paid due to no agents being involved.

Needless to say, my former co-worker decided that he had much more work to do before he could decide if he wanted to continue with the process to purchase this property or walk away and loose the down payment that he had placed on the property.

This is just one of the stories that I have about people trying to sell real property without an agent. The questions I like to put to any potential For Sale By Owner is, "How many homes have you sold in North Carolina?"

The fact remains that about 86% of all homes sold in the U.S. have had the aid of a real estate agent. If you want to sell your own home, then you have to become an expert in the field of marketing, negotiating, and real estate law. I am not a lawyer and cannot advise on the law, but at least a real estate agent knows the legal requirements to sell a home.

Executive Townhouse with Great Location

2008-07-17T18:54:00.000-07:00

Just Listed!!!

This great townhouse is very conveniently located near Crabtree Valley Mall and the I-440 Beltline. This gorgeous home, built in 2006, has all the upgrades to include Corian countertops, wainscoting in the dining room and the stairs, wrought iron on the stairs, and plantation shutters in the family room. This home also has hardwood floors, and tile in this fabulous 3 story home. Not only does the family room have plantation shutters, but is also pre-wired for surround sound and a warming spiral staircase from the foyer. This home has 4 bedrooms and 2 full and 2 half baths and has nearly 2500 sqft. The master bedroom has cathedral ceilings and the bath has a separate garden tub and shower as well as a large walk-in closet.

The garage and a bedroom are located in the basement along with the utility room. The garage has epoxy flooring for long life and stain resistance. Additionally, the garage has plenty of storage room for the family bikes. The basement bedroom can be a game/entertainment room or a private bedroom for the teenage or the in-laws.

The kitchen is immaculate with plenty of counter space and an island bar for family breakfast. The kitchen also has a large pantry and is connected to the dining room. The deck overlooks the large and spacious common area shared by the surrounding neighbors. It is a great place to spend time with the children or the pets as there is a walkway completely around the common area.

Backyard Large common area for family and the pets to play, complete with a sidewalk that circles the common area.	Bedroom 2 Large bedroom with a sitting area and a good closet. This bedroom will be great for a guest room or for the teen.
Bedroom 3 Spacious bedroom on the second floor that has a good closet and place for a student's desk.	Bedroom 4 Spacious bedroom in the basement that could be an office, game/entertainment room or an in-law suite.
Deck Nice wooden deck that overlooks the common area with plenty of great foliage for your viewing. It makes for a great spot to spend the evenings with a glass of wine.	Dining Room Cozy family dining room with wainscoting whose window overlook the common backyard.
Family Room Spacious family room that has a gas fireplace, pre-wired for surround sound, and plantation shutters will be a cozy family gathering area to create family memories.	Finished Basement The finished basement includes an oversized garage with plenty of storage space, a bedroom that could have many different uses, and the utility room with a half bathroom.
Fireplace In the family room,the gas fireplace will make for cozy evenings for the entire family.	Garage Oversized garage with epoxy flooring, this garage has great storage space for all of the family toys.
Gourmet Kitchen Large kitchen that comes with Corian countertops, a large pantry, and an island bar, great for family breakfasts. This homes comes with all of the white appliances in the kitchen, including the refrigerator.	Master Bathroom The master bathroom comes complete with a large, garden tub and an oversized separate shower. This bathroom has 2 separate vanities for his/her use. Additionally, there is a large walk-in closet and a linen closet.
Master Bedroom A cathedral ceiling adorns this spacious room. It has plenty of room for a king-size bed and all of your special furniture. For More Information, please visit 2741LaurelCherry.com

Announcing a Great New Listing

2008-06-30T14:56:00.000-07:00

A great home in a starter community close to Raleigh, this home offers much potential and many amenities for the 1st time home buyer or an investor. With 3 bedrooms and 2 baths, this home has the basic needs for a young family. However, this home also offers the added benefit of having a great sun room/den in addition to a large family room with a wood fireplace. This is a must see home for the investor or young family.

This home also offers a great backyard that will be great for barbecues, pool, or extended decking system. Additionally, the children will benefit from having a great yard to play as it is very clear and flat for many activities.

Little River park is approximately 1 mile from this home and offers a picturesque waterfall, a great swing set, and numerous picnic sites for the family to enjoy. Visit this great park when you visit the home as it is a quaint park with many trees.

For more information about this home and to view all the photos of this home, please visit the website 221PineviewDrive.com or email me with your questions.

Foreclosure Filling Skyrocket in March; Can you Compete as a For Sale By Owner?

2008-04-15T14:03:00.000-07:00

Yet another hit to the economic fitness of the U.S., foreclosure jump as more Americans face foreclosures. An estimated 234,685 foreclosure filings was reported for March, up 57% from March 2007, which was 149,150. With the increase in foreclosures nationally, it may weaken the re-sale market and force depreciation among these homes. This means that one in every 538 households had received a filling during March.

The news gets worse as a new wave of adjustable-rate loans will be resetting to higher rates in May and June, adding more families to the same scenario that many families have been facing with their mortgages.

The rate of homes that lenders have taken possession has risen sharply over the past year, up 129%, which has translated to 51,393 properties nationwide, many without a public foreclosure auction as the homeowners have simply mailed in their keys.

It has been estimated that between 750,000 and 1 million bank-owned homes will hit the market this year, about a quarter of all homes up for sale. Additionally, these properties will continue to slow the sales and depress the values of existing homes in some areas throughout the country.

Declining home prices and stricter lending requirements had exposed the foreclosure environment as homeowners are unable to either sell their homes or refinance to better loans before their mortgage payments reset to higher rates.

Nevada, once again, has been ranked as the worst foreclosure market for the 15th month in a row at one in every 139 households receiving a foreclosure related notice, almost four times the national rate. This has resulted in a 24% increase in fillings over February and 62% over March 2007.

California came in second highest foreclosure rate in the country with one in every 204 households. With the state's population, the state has 64,711 properties facing foreclosures, the most of any state and better than double last year's total.

Florida comes in with 30,254 homes reported at least one filling, down nearly 7% from February, but up 112% from a year ago.

The remaining states with the highest foreclosure rates were Arizona, Colorado, Georgia, Ohio, Michigan, Massachusetts, and Maryland.

With all this doom and gloom, there must be a bright spot for the homeowners of Raleigh, North Carolina and Wake County. According to California's RealtyTrac, the pace of foreclosures slowed to a "trickle" in North Carolina in March.

The company reported that 3,298 foreclosure filings were sent out in the state for March, or one in every 1,222 households. This represents an increase of 2% over last year and a monthly decline of 18.6% since February. For North Carolinian, this is great news and it means that their homes on the market should sell quicker and with less competition than other areas of the country are facing.

However, this also means that we are at the mercy of other states due to the large influx of families from many of these troubled states. Typically, all real estate is local, but with such high foreclosure rates across the nation, it has made local real estate susceptible to national trends.

For more information about this and other issues facing the Real estate market in the Triangle, email me.

Is it the right time to sell by Owner?

2008-02-04T13:52:00.000-08:00

It is a very tricky situation about selling a home by Owner and one that should not be entered into lightly. First of all, selling a home without representation can be a very dramatic experience and a challenging one as well. Of course, selling with some agents can be challenging and dramatic since not all real estate agents are created equal. Nonetheless, what are some of the obstacles that you can expect to face and is it a good time to sell in Raleigh without representation?

The obstacles that For Sale By Owners (FSBOs) face are usually present no matter the market situation. The greatest obstacle that you must face in both good times and bad, is exposure in the marketplace. It is not secret that most Buyer's agents look towards the Multiple Listing Service (MLS) when they begin working with a client. This search will yield many possible homes that the agent will then show the client. Only after all of these options are explored will the typical agent look towards homes sold by owners. It is not that agents do not wish to give these homes credance or show them, but rather the difficulty in searching and finding these homes since there is not a single database with all FSBOs. Despite what some FSBOs feel, it is not a vindictive move by licensed agents, but one born out of time management. Another way for the client to notice FSBOs is if they drive by the home while looking at other homes.

This leads to yet another obstacle for the do-it-yourselfer, availability. It is not uncommon for me to show a home with less than an hour's notice. If in fact, you are showing homes in the neighborhood and you spot a FSBO that interest your client, chances are you will either not be able to get the seller on the phone or the seller cannot make it home from work to show the home in a timey manner(timely manner meaning on the buyer's timetable). Remember, the client is the buyer/customer and if the customer cannot see a home when they are available, then you might as well take the sign out of the yard because you are out-of-business. To sell your home you MUST be on the buyer's schedule.

To add to this obstacle of visability and availability, exposure is paramount to selling for the highest possible price. Without proper exposure in the marketplace, a home will continue to be reduced in price until someone just happens to see the home and purchases it. The law of suppy and demand plays a major role in homes selling for full price. If the suppy of potential buyers is strong, then the demand for the home will be greater, resulting in a higher selling price.

Another obstacle is the commission. Many potential buyers are either not willing to pay the buyer's agent commission, or are not able to do so. FSBOs that are not willing to pay the buyer's agent commission are asking to have a home that is on the market indeterminately. For instance, I recently had a buyer who was interested in a FSBO, but the seller was not willing to work with me, even if my buyer was willing to pay my commission. This put a bad taste in my buyer's mouth and he walked away from the home without even considering it and bought a home down the street from this one. The seller could have sold his home had he been more open to working with a buyer's agent. To sell your home, you need to work on a professional level and take out your personal emotions.

These are just the major obstacles facing unrepresented sellers in the Triangle, but despite these, is it a good time to sell by yourself? The number one answer in the real estate business is "It depends", and this is the case here. It really depends upon your ability to remove as many obstacles that would prevent you from selling your home quickly and your location. The old adage about real estate is the three major factors to sell your home is location, location, and location. This is very true, but even more so for unrepresented sellers. You could have poor visability, availability and exposure and still sell your home quickly if you are in a hot location. Raleigh in general is a very popular and hot market as one of the few markets in the U.S that is expected to have positive appreciation in 2008, but this is not enough. You must be in the most highly sought after sub-area of the Triangle to expect to sell quickly.

What are these areas? The price points that are selling quickly are $200,000 to $300,000. The next popular price point is $300,000 to $400,000. The most popular areas in the Triangle are North Hills area and some areas of Cary with the better schools such as Davis Drive.

In closing, you can attempt to sell your home by yourself and you may get lucky and sell it quickly for a high amount. My advice has always been "to knock yourself out and try it, but if it fails, call me". Some of the people who have spoken with me and took my advice were successful and sold there home, but many have not. There are no guarantees in the real estate business when it comes to selling.

Mayors Conference warns of doom and gloom

2007-12-05T08:55:00.001-08:00

A report released by the U.S. Conference of Mayors suggests that the mortgage crisis may impact the overall economy in 2008. With an escalating mortgage crisis, the report suggests that another 1.4 million U.S. homes will be foreclosed while driving the nationwide property values lower by 7 percent next year. Add to the lower property values, it will result in lower property tax revenue to many states to include California and Florida where home values had soared over the past few years.

The forecast, prepared by the economic consulting firm Global Insight, was released as the non-partisan mayors group began a special meeting in Detroit to address the foreclosure crisis and its connection to problems such as neighborhood blight and crime.

The consultants have forecasted that the U.S. homeowners would see property values fall by $1.2 trillion in 2008 with almost half of those overall losses occurring in California, which translates to a 16% drop in property values and costing the state nearly $3 billion in property taxes.

Furthermore, the report stated that the weakening U.S. property market would reduce home values by some $676 billion and another $519 billion in losses could be tied directly to the financial problems facing borrowers that are unable to meet their escalating monthly mortgage payments.

The problem came as a result of the property value booms of 2004 and 2005, which resulted in higher housing values. With the low cost of borrowing money that we prevalent during this period, private investors wanted to increase their profit returns by offering more sub-prime loans which have a higher risk for the investor, but also a higher rate of return than the conventional loans. The investors felt that their investments were safe due to the increasing value of homes. The resulting downshift in property values has made their investments into these high risk loans a liability for the homeowners and the investors. This has resulted in these new homeowners owing more on their homes than the homes are valued.

The representatives of the Conference of Mayors are expected to call upon mortgage investors and loan servicing companies to make a collective effort to work out new payment terms to avoid defaulted loans from these new homeowners.

The report also warned that they U.S. economy would grow by only 1.9% in 2008 with both hiring and consumer spending stagnated.

The effect on the Raleigh-Cary market will be decidedly less than many areas around the country due to the economic factors and housing prices being much better than the rest of the country. Additionally, the housing prices have continued to increase in this area for the time being. However, it is expected to be a much tougher real estate market in 2008 than it was in 2007 as these market conditions will finally hit the Triangle market, but to a lesser degree than the rest of the country.

It has been bantered about that the doom and gloom about the real estate market should subside after the 2008 Presidential elections. Traditionally, election years generate more apathy and concern about the economy as a whole, despite any actual figures that may counter the cause of concern. For instances, the 1992 election year brought national concern about the economy and the Clinton’s came into office due to the economic climate. The actual figures though suggested that the economy had recovered from its minor setback experienced the year before.

In conclusion, the economy will continue to climb and fall in cycles and there is nothing that can be done about it despite Congress’ claims to fix it. Usually, they are the cause of these declines in the economy and are not the ones to fix the problems. As Americans, it is imperative that we stay the course and continue to do what is right and just for ourselves, our families, and our communities. Everything else will take care of itself.

As long as we have a portion of our society looking to make a quick buck there will be trends that will make money for some, and eventually hurt the majority. Such is the example of the Dot.com era on the 1990s. Caution should be applied to any investment that is made and it better be money that you can afford to lose.

The Greatest Challenges to Selling a For Sale By Owner in Raleigh

2007-10-22T13:12:00.000-07:00

It is no secret that many homeowners are planning to sell their homes in the next 12 months in Wake County and the Triangle area of North Carolina. Many of these would-be sellers are considering selling For Sale By Owner. As you look into this option, you see the great benefits that the national For Sale By Owner magazines give you to sell your home. Many of these benefits are accurate, but are they skewed? It is an easy decision if you only consider the positives to selling your home by yourself which chief among them is not paying a commission. However, most of these sellers do not consider the challenges that are a great disadvantage to your ability to be successful. It is no secret that about 80% of all For Sale By Owners end up listing with an agent due to these issues that I will be covering for you. Don't do yourself a disservice by ignoring the obstacles. This is not to say that you cannot and will not be successful selling without an agent, but the odds are not very good.

Marketing

Marketing is a major issue for the unprofessional who attempts to sell their home without an agent. It is not as easy as placing a yard sign and an ad in the local papers as it once was. Furthermore, many people are using these Internet websites to market their homes for a price, but how much success do they get for their money. No one single marketing item is more important than another when it comes to selling your home, but rather the entire package leads to success. The purpose of marketing is to gain attention for your product and to create an interest and demand for the product, your home. When someone doesn't market a home to all the available sources, then that home does not gain maximum exposure and maximum appeal. How many homes have you marketed and sold in your life? A professional real estate agent has a marketing plan in place that all of their listings get as they sell them.

Do you have the time to design a marketing campaign for your home with all the fliers, Internet marketing, MLS, signage, and pictures to sell your home quickly? It is not an easy task to design a flier or a website for your home to get maximum exposure, but a professional Realtor already has the bones complete for their home marketing plan and only has to place your home's information into the plan.

Contracts

Have you seen a copy of the latest Offer to Purchase contract that the North Carolina Bar Association has produced? Many less experienced real estate agents will have difficulty with this contract, not to mention those with no experience with these forms. As a seller, you may say that you don't need to know how to fill out this 7 page contract since it would be the buyer's responsibility. However, you need to know how to decipher it so you will not be taken advantage. An experienced and competent Buyer's agent will know how to make the offer most beneficial to their client. By the way, they write in these benefits even when they are dealing with a listing agent to see how much they can benefit their clients. Most of the contracts that are negotiated in the Triangle are negotiated over the terms, not only the price. My last 2 contracts as a buyer's agent the price was never even negotiated, it was the additional terms that went back and forth for a couple of days. Are you prepared to negotiate a contract that you know nothing about?

Legal Issues

Do you know how to keep the transaction legal and enforceable through to closing on your home? There are many legal issues that a seller must have prepared for a buyer that if the buyer does not have, they can legally end the contract and keep the earnest money. Do you know what a Property Disclosure document looks like or where to find one? Every home sold in North Carolina is supposed to be accompanied with a Property Disclosure form with a few exceptions. Do you need one for your home or not?

Also, do you have the form ready for the Home Owner's Association available for the buyer's approval? Can you really take the chance in our challenging market to not be completely prepared for this possibility?

City Sign Ordinances

Do you know what the local sign ordinances are and are you in compliance? The resulting fines for these violations can be quite substantial and could easily destroy the profit you hope to make by not hiring an agent. If you plan to sell without an agent, you need to investigate the sign ordinances to be compliant.

Time Requirement

This is an area where many For Sale By Owners fail in their quest to sell. They do not realize how time consuming it is to sell a home. Add all the marketing preparation time, the Contract negotiating time, the paper work, open houses, the showings, etc. I could not hope to print all the items that real estate agents to for a seller since the list would make this article too long for anyone to read. If you want to know all the things that real estate Professional do for you, please call or email me and I will get the list to you. It takes a great deal of time and what if it takes you 6 months to sell without an agent. Are you prepared to spend every spare minute you have for the next 6 months just to save a dollar in commission.

Pricing

Most people think this is the easiest part about selling a home, but they are sadly mistaken. Pricing a home is the most important thing that you can do to make a home sell quickly and appraise. Remember, even if you find someone willing to pay your price for your home, the home must appraise if a loan is to be taken out on the home. I even encourage my cash buyers to have an appraisal and make it a part of the contract that it must appraise for the sales price. Furthermore, a home that is overpriced will not sell quickly and a home that is under priced will have its challenges. Many potential buyers will see a home that is under priced considerably in a negative light thinking that something must be wrong with the home. Therefore, it must be priced right when it is first place on the market to make sure it sells quickly. Not to mention, that homes sold with a real estate professional tend to sell for 18% more than homes sold without an agent. Can you afford to give up that much value to avoid paying for an agent's commission?

This is just a list of Six of the major challenges that face an unrepresented seller in the Triangle area of North Carolina. For a more comprehensive list, please contact me and I will be happy to provide it for you.

Why Use a REALTOR®?

2007-09-25T06:51:00.000-07:00

All real estate licensees are not the same. Only real estate licensees who are members of the NATIONAL ASSOCIATION OF REALTORS® are properly called REALTORS®. They proudly display the REALTOR "®" logo on the business card or other marketing and sales literature. REALTORS® are committed to treat all parties to a transaction honestly. REALTORS® subscribe to a strict code of ethics and are expected to maintain a higher level of knowledge of the process of buying and selling real estate. An independent survey reports that 84% of home buyers would use the same REALTOR® again.

Real estate transactions involve one of the biggest financial investments most people experience in their lifetime. Transactions today usually exceed $100,000. If you had a $100,000 income tax problem, would you attempt to deal with it without the help of a CPA? If you had a $100,000 legal question, would you deal with it without the help of an attorney? Considering the small upside cost and the large downside risk, it would be foolish to consider a deal in real estate without the professional assistance of a REALTOR®.

But if you're still not convinced of the value of a REALTOR®, here are a dozen more reasons to use one:

1. Your REALTOR® can help you determine your buying power -- that is, your financial reserves plus your borrowing capacity. If you give a REALTOR® some basic information about your available savings, income and current debt, he or she can refer you to lenders best qualified to help you. Most lenders -- banks and mortgage companies -- offer limited choices.

2. Your REALTOR® has many resources to assist you in your home search. Sometimes the property you are seeking is available but not actively advertised in the market, and it will take some investigation by your agent to find all available properties.

3. Your REALTOR® can assist you in the selection process by providing objective information about each property. Agents who are REALTORS® have access to a variety of informational resources. REALTORS® can provide local community information on utilities, zoning. schools, etc. There are two things you'll want to know. First, will the property provide the environment I want for a home or investment? Second, will the property have resale value when I am ready to sell?

4. Your REALTOR® can help you negotiate. There are myriad negotiating factors, including but not limited to price, financing, terms, date of possession and often the inclusion or exclusion of repairs and furnishings or equipment. The purchase agreement should provide a period of time for you to complete appropriate inspections and investigations of the property before you are bound to complete the purchase. Your agent can advise you as to which investigations and inspections are recommended or required.

5. Your REALTOR® provides due diligence during the evaluation of the property. Depending on the area and property, this could include inspections for termites, dry rot, asbestos, faulty structure, roof condition, septic tank and well tests, just to name a few. Your REALTOR® can assist you in finding qualified responsible professionals to do most of these investigations and provide you with written reports. You will also want to see a preliminary report on the title of the property. Title indicates ownership of property and can be mired in confusing status of past owners or rights of access. The title to most properties will have some limitations; for example, easements (access rights) for utilities. Your REALTOR®, title company or attorney can help you resolve issues that might cause problems at a later date.

6. Your REALTOR® can help you in understanding different financing options and in identifying qualified lenders.

7. Your REALTOR® can guide you through the closing process and make sure everything flows together smoothly.

8. When selling your home, your REALTOR® can give you up-to-date information on what is happening in the marketplace and the price, financing, terms and condition of competing properties. These are key factors in getting your property sold at the best price, quickly and with minimum hassle.

9. Your REALTOR® markets your property to other real estate agents and the public. Often, your REALTOR® can recommend repairs or cosmetic work that will significantly enhance the salability of your property. Your REALTOR® markets your property to other real estate agents and the public. In many markets across the country, over 50% of real estate sales are cooperative sales; that is, a real estate agent other than yours brings in the buyer. Your REALTOR® acts as the marketing coordinator, disbursing information about your property to other real estate agents through a Multiple Listing Service or other cooperative marketing networks, open houses for agents, etc. The REALTOR® Code of Ethics requires REALTORS® to utilize these cooperative relationships when they benefit their clients.

10. Your REALTOR® will know when, where and how to advertise your property. There is a misconception that advertising sells real estate. The NATIONAL ASSOCIATION OF REALTORS® studies show that 82% of real estate sales are the result of agent contacts through previous clients, referrals, friends, family and personal contacts. When a property is marketed with the help of your REALTOR®, you do not have to allow strangers into your home. Your REALTOR® will generally prescreen and accompany qualified prospects through your property.

11. Your REALTOR® can help you objectively evaluate every buyer's proposal without compromising your marketing position. This initial agreement is only the beginning of a process of appraisals, inspections and financing -- a lot of possible pitfalls. Your REALTOR® can help you write a legally binding, win-win agreement that will be more likely to make it through the process.

12. Your REALTOR® can help close the sale of your home. Between the initial sales agreement and closing (or settlement), questions may arise. For example, unexpected repairs are required to obtain financing or a cloud in the title is discovered. The required paperwork alone is overwhelming for most sellers. Your REALTOR® is the best person to objectively help you resolve these issues and move the transaction to closing (or settlement).

This article was republished from the National Association of Realtors website.

Decided to sell, What now?

2007-09-14T11:40:00.000-07:00

So, you have decided to sell your home, what do you do now? The conventional wisdom says to hire a real estate agent, but who wants to pay the commission. After all, these real estate agents are overcharging commissions and anyone can do their job; even you. Am I right?

So, now that you have decided to sell by yourself, what is the next step? First, you will want to get a yard sign so your neighbors will know that you are selling your home. 51% of all For Sale By Owners use yard signs. You can go to the local Home Depot or Lowes Hardware to get these signs for next to nothing. You place the sign and wait for the phone calls to come. You are now selling your home and there is no turning back, am I right?

But wait, there is more to do. What will you price your home? Your neighbor down the street tells you that they got a certain price for their home, so you think you can at least get that if not 10-15% more. After all, your home is much better and you paid more for it. So, you have the price and the sign, time to advertise. BUT WHERE DO YOU ADVERTISE?

Conventional wisdom again tells you that you need to advertise in the local newspaper. After all, 31% of all For Sale By Owners advertise in newspapers and 55% of home buyers use the newspaper to find a home. So, you have this in place, what now?

The next step is to schedule your first Open House. How exciting(not if you have done as many as I have)? 29% of For Sale By Owners conduct open houses on their home. Even though only 1/2 of 1% of homes sell via a open house, it sounds exciting and like something that will definitely sell your home. After all, you have seen those TV shows where 3 offers came in after a single open house, right? This must be the perfect way to sell your home. Not really and not in this market.

Finally, you decide to list your home on the Internet to sell it. You advertise on Craig's List, E-bay, and even design your own website for your home, yet it still doesn't sell. What is wrong with this picture?

Did you know, that around 80% of all For Sale By Owners will list with an agent for one reason of another. The 2 most difficult task for For Sale By Owners according to NAR is Preparing the home/fixing it up for sale (18%) and Understanding the paperwork (11%). Finding a buyer and having enough time to devote to the sales process come in the next 2 spots with each 9% each.

What does all this mean? It means that selling a home is more complicated than simply placing a sign in your yard. With technology the way it is, it is nearly impossible to get your home marketed in a way that will gain maximum exposure. I know you are asking yourself that you don't need maximum exposure, just 1 buyer. This is very true, but the more interest you have in your home, the more money you will get for it. It is as simple as supply and demand. The more demand for a product(your home); the greater the supply(price) for your home.

In conclusion, it is a known fact that at least 90% of all homes sold are due to a real estate agent. So, that means that fewer than 10% of all homes sold are due to a For Sale By Owner. Additionally, the most popular website for real estate search is Realtor.com, where 82% of home buyers use this site more than any other site. So, it just begs the answer that Realtors get the most money for your home than you could on your own. In fact, NAR reported that the typical For Sale By Owner home sold for $187,200 compared to $247,000 for agent-assisted home sales. If you do the math, that is 16% more with an agent and thus, you are not saving the commission of 6-7%, but rather losing 9-10% of money you could have earned on your home. In addition, as the market continues to tighten up, it is going to make it even more difficult to sell by yourself since most buyers who look at For Sale By Owners are looking for a great deal. The figures speak for themselves that this is where the good deals can be found. Can you not afford to use an agent?