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.

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.

Housing Market makes the turn up this month

The housing market has reported growth from last month and is indicated a turn for the better. This doesn't mean we are out of the woods yet, but the has done well these past few days and oil was also dropping again this morning on the market. Interest rates are still very good, perhaps this is a real positive sign, just as it was for Bear Stearns with JPMorgan uping their bid to buy the company out to @ $10 a share from @ $2 a share.

Check out this AP Video on YouTube for more information.