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.

Houses for sale Gray Maine, selling a home in Gray ME

The most important decision you will make in the sale of your home is the REALTOR® you choose. Be sure to find someone you feel comfortable with. If you don't feel you can ask questions or go to your REALTOR®, you have the wrong person. Your REALTOR® should show you research to back up any recommendations. This includes information about recent sales, current listings, and recently expired listings in your neighborhood.

Watch out for agents who try to "buy" your listing. This is when a realtor will tell you your home is worth a lot more than it is likely to sell for. The key to catching this is being involved in the Market Analysis and making sure the comparable homes the realtor is using are sold homes and that the adjustments they make to the sold prices are reasonable and realistic. Get at least two opinions and compare the two closely, and even get a third opinion or more. You need to feel comfortable knowing what you will realistically get for you home. You can list a little higher, but you want to have realistic expectations in case you have to reduce the price.

Choose a local REALTOR®. He or she will know your area better than an outsider, will be seen as a source for people looking to relocate in your neighborhood, and will get better co-operation from other agents. It is likely that any amount you might save by having a friend or relative from outside the area serve as your REALTOR® will be lost in their lack of knowledge about your specific local market. Experience counts, and with the tightening market a lot of realtors have quit the business (full-time), and switched to a different career. Make sure your realtor is only working as an agent so they are available to talk with prospective buyers and show your home 7 days a week and not limited because they are at their other job and missed the email asking about your home.

Don't forget to ask for their references. He or she should be willing to give you names of previous clients, and you should try to contact a few. Ask the realtor to show you what will be done to market your home. Are they "Internet savy" and do they have the ability to market your home. Consider the experience they have in real estate as well as the initiative and professionalism shown by the individual.

Look for a REALTOR® who tells you what he or she knows from experience in the market, and not what they think you want to hear. Flattery may sometimes get the listing, but it doesn't sell the 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.

Has Real Estate Market finally turned?

Market trends are starting to indicate that perhaps the worst could be over. The market is still a buyers market. Interest rates should flexuate around 6%, although many people are hoping to see them drop closer to 5%. As of today they seem to be around 5.8%. Check your current local rates and learn about what options you may have to save yourself money.

The dollar is gaining momentum, but many strategist feel we could see a lot of volativity over the next few weeks.

The housing market has declined in the northeast region by approximately 4% in January alone. Lower rates and higher loan amounts do appear to be jump starting the spring market.

You can search for New Homes/Land for sale in Maine by visiting my website and click on the Search New Homes/Land tab located in the center of the website.