Better know this before you list your home for sale

Thinking about listing your home for sale? There are many things to consider before selecting a realtor to assist with this process. WAIT, thinking of selling your house on your own without using a realtor. Check out my blog, "For Sale By Owner- the pros and cons" of being a FSBO (For Sale By Owner).

HOME VALUES or what your home is worth, is a big part of the equation. Realtors generally use what is called a CMA, Comparative Market Analysis. Similar in some ways to getting an appraisal done, but we are not liscensed as appraisers and there are no set guidelines for us to follow. Basically, it is just an opinion of value, and like all opinions, two people can have some very different ideas. You had BETTER BE INVOLVED AND INFORMED when you have a CMA done to help determine what your property value is. There are realtors out there who, in my opinion, don't look closely enough at the homes they are using for comparibles, and therefore don't end up adjusting the selling or listing price accordingly. Example, many homes often report selling at or above the asking (list) price. Any home that is sold at or above the list price in todays market most likely gave concessions (paid the buyers closing cost, gave money for new carpet, roof, ect.) A realtor doing a CMA and using a home that sold for more than the asking price has an obligation in my opinion to call the agents involved in that transaction and find out the details of what transpired and adjust the CMA accordingly.

THAT IS ONE REASON you can get two very different opinions of values on your home. Another reason is that some realtors adjust higher or lower for certain items. A detached 2 car garage that you have, and the comparible sold property they are using to price your home doesn't have a garage, did the real estate agent add $6000 to the value of your home or did they add $16,000. Big difference for the garage that you know only cost you $4500 to build.

Change it a little, and lets say the comparible sold property does have a 2 car garage, but it is attached to the home with a small mudroom between the garage. Did the realtor adjust at all or just say, you both have 2 car garages so they are similar. The average person is willing to pay at least $10,000 more for an attached garage over a detached garage.

So through the process it is pretty easy to get a very inflated price on your home. So get involved in the process and ask questions.

THIS IS VERY IMPORTANT! You want to find the realistic price (what it will most likely sell for in 45-60 days) of your home and price your home according to goals. List your home at the price that will accomplish two things, GET YOU THE MOST MONEY and ACCOMPLISH YOUR GOALS.

For Sale By Owner, the Pros and Cons

For many people the option of selling their house own their own is not really an option due to circumstances, such as being transferred through work or just the time needed to sell your own property is not available.

The Pros, or upside of selling your home yourself.

1. More Money in your pocket if you are not paying a realtor's commission.
2. You know your house the best, so who better to point out all the ammenties.
3. You have complete control over the entire transaction, from setting the price, to showings, to all negotiations and prequalifing buyers (just to name a few).

The Cons, or downside of selling your home yourself.

1. You dramatically reduce the exposure and limit the number of prospective buyers compared to what you would have received with a realtor. 88% of all home sales were sold with the assistance of a realtor, according to a 2007 survey by the National Association of Realtors. We use the Multiple Listing Service which contains approximatetly 95% of all homes on the market.
2. Don't be so sure about putting more money in your pocket. According to the National Assocaition of Realtors, the median for homes sold privately with their owners went for much less than the median for homes sold through a realtor. Many people feel more comfortable negotiating aggressivly with a home owner than when dealing with a realtor. People also feel that they can purchase the house for much less because the owner isn't paying a realtor's commission. See hottom of page on how to pay less commission.
3. You may know your home better, but how well do you know the buyer and what the buyer's likes and dislikes are? An experienced broker knows how to downplay the negatives and read potential buyers interest and reinforce those positive aspects of the home. Remember, as a realtor, in a month's time we are involved in more real estate transactions than the average person is in their lifetime.

Most buyers today work closely with a realtor for the same reason most people who are selling a home use a realtor. Saving time and lots of it. Just preparing the paperwork and advertizing needed to sell your homes is overwhelming for most people. Then add in handling all the calls with questions about your home, showing your home at all hours of the day and on weekends. And when all is said and done and you get an offer, then negotiations, inspections, and you had better have an attorney review the contract at the very least, so subtract at least $1000 there for that advice and deed preparation.

When it is all over with, most people say they would never try to sell their home again on their own. Turn it all over to a professional realtor and all you have to do is keep your house tidy and let your realtor do the rest.

Find out how you can

Pay less commission and get more monsy for your home.

How to Fix or Improve Credit Scores

Improving your credit can be a long process, but it doesn't always have to be.

Beware of programs or people who claim they can make drastic improvements in a short period of time.

I have done a lot of research, and there are some things that can help.

First, did you know that your credit scores, the actual numbers are not figured by the three major credit bureaus (Experian, TransUnion, Equifax).

The scores you receive are derived from companies that banks or lenders use to pull the information from the major credit bureaus, like Landsafe, or Birchwood Credit. These companies take the information they get from the major credit bureaus and give you a score on all three. Depending on which company a bank uses, your scores can easily vary 40 or 60 points.

Most lenders don't even know this is the case.

For more on this
read credit repairing on my website.

Mortgage rules and regs tightening.

Due to the lastest housing crisis...yes, I would call it a crisis; the guidelines for underwriting mortgages have tightened and it has become more difficult and the days of stated products are all but extinct.
Reinusa si a real estate investor's website loaded with information for investors or people thinking of owning investment property. You can sign up for the Rein Report and receive emails with the latestest information and changes in today's market. Below is part of a rein report regarding investment properties and different loan options and requirements:

Below are some of the most recent guideline changes concerning investment property financing.

Be sure to look toward the bottom for the latest on cedit scores, rental income, and stated income products!!!

Current LTV limits for investment properties

· Full doc purchase or rate and term refinance

Up to 90% LTV on 1 to 2 unit properties

Up to 75% LTV on 3 to 4 unit properties

· Full doc cash out refinance

Up to 90% LTV on 1 to 2 unit properties

Up to 75% LTV on 3 to 4 unit properties

· Stated income purchase or rate and term refinance

Up to 90% LTV on 1 to 2 unit properties

Up to 75% LTV on 3 to 4 unit properties

Stated income cash out refinance

Up to 75% LTV on 1 to 4 unit properties

Non seasoned refinances (Immediately after purchase)

These loans are still available for either full doc or stated income borrowers and used primarily by investors purchasing rehab properties. Refinance an existing rehab loan or cash purchase project. Some restrictions apply so we recommend speaking to an experienced mortgage professional prior to executing a purchase agreement.


LTV limits vary from lender to lender. The above is a sampling from various lenders and is subject to change without prior notice. Additional qualifying requirements may apply.

Credit score requirements

While credit score requirements vary by lender and property type, most programs require a minimum score of 660 for full doc and 700 for stated income.

Stated income update

Stated income loans for real estate investors are quickly becoming a thing of the past. These programs are only available through a few select lenders and qualifying is very stringent. We highly recommend getting any stated income loans submitted and locked as soon as possible.

Proof of rental income for full doc borrowers

Until recently full doc guidelines only required signed rental agreements in order to use rental income for qualifying purposes. Fannie Mae and Freddie Mac guidelines now require tax returns to verify rents recieved unless a property was aquired within the past year, and then it is required to provide a signed lease and the HUD from the purchase. If rents are not reported on the borrower's personal tax returns, the rental income can not be included. It is very important to work with a professional CPA to make sure rental income is documented appropriately.

Growing issues regarding title and mortgages held in an LLC

Though many investors feel that holding title or a mortgage in an LLC (or other company name) may benefit them, it can actually hinder their investing goals and their ability to obtain a conventional mortgage. Since guidelines have become more stringent lenders have ceased to allow conventional mortgages to be held in company names. While there are still a few lenders that do not require title seasoning, some now require title be seasoned in a personal name for at least 90 days prior to submitting a refinance. Please contact us for more information on these programs before purchasing or transferring title into an LLC or company name.