3 Things To Consider Before Listing As FSBO

If you’re looking to sell your home in the near future, you may feel inclined to list it as a For Sale By Owner (FSBO) before working with a Realtor. For many, this is considered one good way to cut back on costs and possibly earn a little more profit on the sale.
However, there are certain aspects you may want to consider before going down this path. Statistically, over 80% of FSBO’s end up being listed with a Realtor at some point. Therefore, it pays to take the time to fully assess whether or not this is the right plan of action for you.

Properly Marketing Your Property

First of all, listing a home for sale can be a very time consuming and difficult process. Unfortunately, this typically is not as easy as posting a sign in the yard and setting up a classified ad in the local newspaper. There is certainly a lot more than meets the eye.
For instance, many FSBO websites will tout that you can obtain a wide exposure to buyers nationally, but this pales in comparison to the results that you can expect from big named sites like Realtor.com, which only agents can post to.
Next, your agent will have a lot of expertise with implementing online real estate marketing strategies that will gain you a ton of locally targeted searches. And in fact, nearly 90% of all searches for real estate related inquiries start online.
Realtors will also have a strong network of both agents and buyers that they work with on a regular basis. This is a business where it pays to network. More contacts equals greater exposure.

Asking Price & Showings

For starters, a lot of FSBO’s will start at the wrong asking price. This is by far one of the most important factors that goes into marketing your home, so you want to do this properly off the bat. But, without being fully invested in your local market and understanding the current trends, it can be difficult to price the home accurately.
As alluded to in section one, selling a home can be a lot of work. Most individuals these days have to juggle a full time job, family obligations, recreational activities, household chores, etc. Where do you find the time for fully investing into the sale as well?
When the opportunity would arise for interested parties to view your property, you would need to schedule individual showings, open houses, inspectors, appraisers, etc., while also trying to stage and maintain your property’s appearance. Miss out on a good opportunity for matching schedules and you can quickly lose interest.

Negotiations & Contracts

If you get to the point where you negotiate with a buyer, it is much more difficult to handle this aspect without a qualified agent. Selling your home can be a very emotional undertaking, so it is easier to set unrealistic expectations, or to even concede on more than necessary when you don’t have a 3rd party buffer.
During most real estate transactions, both the buyer and seller will typically have a set of concessions and contingencies. For a majority of buyers, they will expect to have some type of a financing, inspection and/or termite contingency.
This is set up for their protection, in order to complete their due diligence on the home before moving forward to closing. If other issues are found, this may even been grounds for further negotiation or eventually walking away from the deal.
Or you will be expected to lower the price, fix the issue or offer a concession on something else in order to alleviate the problem. Likewise, you want to ensure that the buyer is not overstepping their boundaries or that you are pressured into giving away more than is reasonable.
In summary, it’s worth taking the time to carefully consider these 3 areas before making any final decisions. If you still decide to take the FSBO route, we sincerely wish you great success. Also, please feel free to share our information with a friend and to bookmark our page for future reference as well!

Make A Wise Real Estate Purchase

In this video we explore some tips for making a wise real estate purchase.

  • Save For A Big Down Payment
  • Don’t Overextend Yourself
  • Consider the Work Involved
  • Really Shop Around

College Grads – Consider A Future In Real Estate!

If you’re approaching the end of you college career, you may be starting to consider some potential options for employment. Since the current job market isn’t the best, so many students are getting their degrees only to go back to working in a position like serving tables.

Unless graduates move onto either a masters or doctorate program in a more specialized field, competition for undergraduates is becoming fiercer than ever. In addition, many students struggle with finding direction or a career that they can be passionate about.

Whether you are on the way to earning your diploma or want to begin your professional career, becoming a Realtor could be the answer you are looking for. Let’s review some of the top benefits to earning your license as a real estate professional:

1. Total Freedom – One of the main reasons that people start a career in real estate is the flexibility it offers. If you are a highly motivated, self starter than you could have what it takes to be successful in real estate. It is a perfect path for those who have an entrepreneurial spirit.

First, you have the ability to set your own hours. You can work as long as you like and when the time comes to take a vacation with the family, you won’t have to push through all the red tape only to be denied by HR.

Next, this isn’t a restricted desk job either. If you choose to work from home or from your mobile office, you won’t have the requirement of checking in everyday. In essence, you are your own boss and you get to call the shots!

2. Perfect for Tech Savvy Individuals – If you are under the age of 30 and own a mobile phone, ipod, personal computer, etc., then you have what it takes to crush it in real estate. This is where the future of real estate marketing is headed.

It is estimated that nearly 90% of people start their search for real estate online. There are so many ways to apply your skills using mobile technology, affiliate marketing, blogging, social networking, etc., that gives you a distinct advantage over many “old school” professionals who have adapted to traditional methods.

You can bypass the entire learning curve of implementing these concepts to promote your business, make contacts with professionals and potential customers, and quickly become a big player in your local market.

3. High Earning Potential – What you are able to put into a real estate career is exactly what you’ll get out of it. Instead of working for a set paycheck, you can determine to double or even triple what most students are earning on average today within a short time period. That’s the beauty of commissions.

Additionally, since you probably have very few debts or family responsibilities holding you down, you will have ample time to establish yourself as a well known authority in the area. Overtime, many of your efforts can be set to autopilot as you build up referral sources and establish solid marketing avenues.

You will gain a strong feel of what percentage of prospects and contracts it will take to earn a commission. And there are dozens of niches you can become a specialist in, which can lead to even bigger paydays.

4. Working With People – If you like talking with and meeting new people, then this is one of the best careers available to you. Not only will you have the pleasure of working with others on a daily basis, but you will also be able to meet some highly influential people in other verticals.

It pays to have friends in high places, and simply by investing time in helping others will provide you the opportunity to build a powerful professional network. You will also be able to fine tune your people skills and learn others that are so valuable to succeeding in the real world.

5. Learn How To Buy/Sell/Invest – Regardless of what is happening in the economy, real estate is one of the top proven strategies for building wealth and a retirement fund. Did you know that many Realtors also invest in their own properties as well?

You will be able to acquire invaluable skills that will teach you all about the buying and selling process. Additionally, you will attain a working knowledge for your local area and will know where and what the best deals are. Working as an agent is a fast track to succeeding with real estate investments as well!

Thus, there are unlimited possibilities for personal growth and success as a real estate professional. If you have been feeling frustrated or unsure what your next step is after college, then it may be time to invest in your future as a licensed Realtor.

We are here to support you throughout this process and to get you started on building a promising future. It is out desire that you realize your full potential. Contact us @ 813-863-5917 right now using the information provided above to discover what possibilities are available to you!

What to Consider If You Want to Purchase Home Foreclosures

When you purchase of home foreclosures you can be saddled with tasks you know nothing about. From securing financing, to finding the ideal property, to closing the deal and all the little steps in between, this exercise should not be undertaken without proper information and preparation.

Distressed properties are not only about great discounts, there are also a lot of risks involved. But these risks can all be minimized if not completely eliminated if you purchase home foreclosures with caution and diligence.

What You May Not Know

There are some elements that are true of all foreclosures. One is that they are all sold as is and seldom will a seller shoulder the cost of repairs for the property. There are some foreclosures that have outstanding obligations other than the mortgage. Obligations in the form of back taxes, liens and other encumbrances are not part of the seller’s disclosure. Your offer for a foreclosed home will only be considered if you can show proof that you are able to pay for your purchase. For this, you will need to obtain a loan pre-approval from your bank or any other mortgage lender. This will require the submission of some personal documents for the lender to be able to assess your financial situation and gauge your ability to borrow funds and how much.

Reducing Your Risks

Make sure you are indeed financially prepared for a high ticket investment like when you purchase home foreclosures. You should consider several listings of foreclosed properties to find the one you like. Never forgo a professional home inspection of the property as well as a title search. You should also commission an expert to conduct a comparative home value analysis in the area where your home is located. Once you have completed your research base your offer on what you have uncovered and approach the seller or his appointed agent.

Read more: http://www.articlesbase.com/real-estate-articles/what-to-consider-if-you-want-to-purchase-home-foreclosures-3691582.html#ixzz15q9N5wWk
Under Creative Commons License: Attribution

Foreclosed Homes: Things to Know Before You Buy

Buying foreclosed homes has become popular amongst real estate investors and individual buyers. While these types of properties are normally priced below market value they generally require some level of repair. Those who do not carefully inspect foreclosure real estate could end up investing in a money pit.

Foreclosed homes can be purchased through public foreclosure auctions or banks. When properties are repossessed, banks first list them for sale through auction. Auction attendees submit bids and often compete against several buyers.

Individuals purchasing foreclosure real estate through auctions should have a thorough understanding of how the auction process works, as well as the foreclosure laws of the state where property is located.

Some states allow foreclosed property owners to buy their house back within 30 days after being sold through auction. This can be quite disruptive when buyers have invested money for repairs or paid off creditor judgments to clear the title. This can also slow down repair progress as buyers do not want to invest in renovation work if there is a possibility the evicted homeowner will reclaim their home.

When houses go unsold through foreclosure auction they are returned to the servicing lender. At this point they become bank owned foreclosures. Other common references include real estate owned or REO homes.

Banks negotiate with lien holders to clear creditor judgments or tax liens in order to sell the property with a clean title. Banks also engage in eviction action to remove property owners refusing to vacate the premises.

These activities cost the bank money, so REO properties are normally priced higher than foreclosures sold through auction. However, buyers can purchase the property without the burden of removing liens, judgments, evicting property owners, or worrying that the homeowner will reclaim their house.

Just as when buying any real estate; buyers should engage in due diligence. At minimum, buyers should review comparable sales reports to compare purchase prices of other homes in the area; obtain real estate appraisals to determine current market value; and home inspections to determine the types of required repairs.

Banks reduce foreclosed home prices to account for the cost of reported repairs. Banks rarely reduce the asking price of REO homes unless substantial damage is discovered during property inspections. Buyers should obtain repair costs estimates to determine the true cost of the home. If the purchase price and repair costs equate to more than the appraised value, it’s best to pass and look for a better deal.

Most banks require buyers to obtain prequalified financing prior to submitting offers on foreclosed homes. When buyers purchase foreclosure real estate through public auctions they normally must present full payment to the auction house within 24 hours upon bid acceptance.

Individuals unfamiliar with buying foreclosed homes through public auctions or banks may find working with a foreclosure specialist to be helpful. Realtors can help buyers locate the type of property they desire and assist them through the process of buying foreclosed real estate.

Buyers may also want to consult with real estate investors experienced in buying distressed properties. Numerous real estate clubs can be found via the Internet. Buyers can participate in online investment groups or locate local real estate investment groups within their hometown.

Those who take time to become educated about the process of buying foreclosure real estate can minimize financial risks, locate the best financing deals, and obtain the best price for the property.

Read more: http://www.articlesbase.com/real-estate-articles/foreclosed-homes-things-to-know-before-you-buy-3665853.html#ixzz15VxawlhQ
Under Creative Commons License: Attribution

Lessons Learned When Buying Auction Property

I’ve always been interested in property, having completed studies in interior design and have had a few lucky purchases when it comes to houses.

I picked up a bargain with my first house, an ex-local authority end terraced place that I purchased for an absolute snip. After the usual updates eg. new kitchen, bathroom and windows etc, I was able to sell it with a profit margin enough for a decent deposit on a beautiful Victorian property that needed a fair bit more work, albeit cosmetic.

I did become quite attached to this house but due to a nasty divorce, I found myself in the position of having to sell up again. I was sorry to put it on the market but got used to the idea and have been looking at my options.

The one that appeals to me most at the moment is buying an auction property. The house sale has gone through relatively smoothly and I have convinced my parents to let me move in with them. My father keeps stressing at the thought that I might get fleeced with an auction property but I believe I’ve done sufficient research, and that I can be restrained enough, to not go over budget or do anything silly.

I’ve been devouring property papers, I’ve even been to see what goes on at the auction and how to bid. I have to say, it’s very exciting. Watching the professionals bid on auction property is gripping stuff and totally absorbing. I see some of the houses sell for next to nothing and I’m sure I can grab a bargain of my own.

I’ve read enough to know that when I buy an auction property, I will need a 10% deposit on me on the day so I wait until the money comes through from my house and find the excitement is building. I’ve received my listing from the auction house and narrowed my choice down to three houses. I’ve made arrangements to view all of them this weekend and, at my father’s insistence, will be taking a builder with me, just in case there is anything wrong that I don’t pick up.

By the day of the auction I have one house that I have set my heart on. More like setting myself up for a fall, according to my father but he’s always scornful of everything he doesn’t understand.

The builder is concerned about a crack in the wall but it looks old to me so I’m not going to worry. He’s also making noises about something called ‘asbestos’ in the garage roof. Like I’d be concerned about the garage! Anyway, I’m hoping I’ll have enough cash to buy it outright so I don’t have to worry about a mortgage.

The auction gets under way and it takes about an hour to get round to the property I want. Bidding begins and I feel sick with anticipation, and sick with the thought of ‘what if I don’t get it’. I hold back to start to see how the bidding goes but I’m soon waving my hand in the air like I’m trying to guide a plan into landing.

It’s all over so quickly and within minutes, I am the proud owner of my first auction property. If only I had the money I could do this all day – it’s such a buzz! Money exchanges hands and I set off with my keys to show my father the house.

He, also, is concerned about the crack in the wall. To ease his concerns I’m getting in a structural engineer, just to make sure everything is above board and my investment is safe.

Oh dear, he says, scratching his head and sucking in his breath. Don’t you just hate it when they do that, it doesn’t mean anything! However, it turns out that due to a coal mine that used to be active in the area many years ago, the house has suffered some subsidence. It has been left derelict for some so nobody was bothered about it.

Looks like I’ll be staying with my parents for a little longer after all! While the workmen are underpinning the wall against the garage, they dislodge the makeshift roof and find this asbestos stuff. After downing tools, they tell me I have to get this stuff professionally disposed of before they will continue.

So, that’s just under 25,000 pounds for all the structural work before I even think about the cosmetics! I couldn’t get a mortgage on the property because of the structural problems so I’ve had to borrow it from my father. I can’t believe that my bargain auction property has become such a problem and now it looks like, once I’ve done all the hard work on it, I’ll have to sell it on again just to pay my father back.

Baby Boomers Will Drive Real Estate Growth

Baby boomers, baby boomers, baby boomers; we all hear this term over and over again. So who are the baby boomers? Baby boomers are people in the United States who were born between 1946 and 1964. Approximately 78.2 million people fall into this category.

As a group, baby boomers comprise the largest population cohort in the history of the United States. The size of the group gives it vast influence over American politics, popular cultural, and of course, real estate. To evaluate the influence of the baby boomers on the future of real estate, the National Association of Realtors (NAR) conducted a study in 2006. The findings of the research were published in report entitled Baby Boomers and Real Estate: Today and Tomorrow. Below are some highlights from the NAR study.

AGE DISTRIBUTION

According to the NAR report, baby boomers now range in age from 42 to 60 years old. The typical baby boomer is 50 years old, and the oldest of the baby boomers turned 60 in 2006. About 46% of baby boomers are in their 40s, and about 25% are at least 55 years old.

HOUSEHOLD INCOME

As a group, baby boomers are in their peak earning years. In 2005, baby boomers had a household income of $64,700, and about 25% them had a household income of at least $100,000 per year.

HOME OWNERSHIP

About 78% of baby boomers own a home, which is higher than the national ownership rate of 69%. About 96% of baby boomers believe that home ownership is a good financial investment.

FUTURE REAL ESTATE PURCHASES

About 10%, or 7.8 million of all baby boomers, said they were likely to purchase additional real estate in the next 12 months. Of these potential buyers, two-thirds were planning on buying a primary residence, 26% want to buy land, 19% want rental property, 15% want a vacation home or seasonal home, and 14% want a commercial property.

WHAT FEATURES ATTRACT BOOMERS

When baby boomers were asked about what features are most important to them, 38% wanted a lower cost of living, 38% wanted to be near family, 38% wanted easy access to quality health care, 37% wanted a better climate, and 36% wanted to be near a body of water.

PREFERRED COMMUNITY AMENITIES

When baby boomers were asked about the type of community amenities that interest them most, about 18% wanted to be near cultural offerings, 9% wanted to be closer to their family, 4% wanted to be on a golf course, and 3% wanted easy access to educational facilities.

WHERE DO BOOMERS WANT TO RETIRE

When baby boomers were asked about where they want to retire, 33% of them want to retire in a rural area, 30% in a small town, 25% in a suburban area, and only 12% in an urban community.

BOOMERS AND THEIR REAL ESTATE AGENTS
Baby boomers consistently use the services of a real estate agent. Approximately 60% of home buyers and 79% of home sellers used a real estate agent in their last transaction.

SUMMARY

The baby boomers have had and will continue to have a significant impact on the real estate market. As the boomers near retirement, they continue to value real estate and will continue to invest in properties and land. Real estate agents would be well served to understand what baby boomers want in terms of their real estate investments, and design strategies that target the needs of this enormous population cohort. For more information, read the NAR report entitled, Baby Boomers and Real Estate: Today and Tomorrow

Read more: http://www.articlesbase.com/real-estate-articles/baby-boomers-will-drive-real-estate-growth-87235.html#ixzz0peKzrDs6
Under Creative Commons License: Attribution

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