Exploring Your Mortgage Options

When you start your search for a new home and sit down with a lender to explore your financing options, you may be a bit surprised by the many different types of mortgage loans that are available. Although the many different options can seem confusing and even a bit understanding, it is important to gain an understanding of your options so you can make the decision that is best for you.

Some of the mortgage options you will have available to you when purchasing a home include:

Basic Home Mortgage
Government Mortgage Loans
Flexible Payment Mortgages
Balloon Mortgages
Interest Only Mortgages

Although each has the same basic premises, there are difference that need to be taken under consideration when it comes time to purchase you home.

Basic Home Mortgage

There are actually a couple of different options within the basic home mortgage category. The two main categories within this group, however, are:

Fixed Rate Mortgages
Adjustable Rate Mortgages

Approximately 70% of mortgage loans all within the fixed rate mortgage category. With this type of mortgage, the interest rate you pay does not change over the lifetime of the loan. Therefore, even if interest rates go up within the market, your rate will stay the same. The same is true, however, when interest rates go down in the market. In order to take advantage of a lower rate, homeowners have to refinance their homes at the lower interest rate.

Adjustable mortgages are different from fixed rate mortgages because the interest rate changes with the market rate. This means the monthly loan repayment amount may go up and down according to the market rate. This type of loan is generally more attractive to those that do not plan to keep the home for very long.

Government Mortgage Loans

There are three primary types of government mortgage loans a homebuyer may qualify for. These include:

FHA Loan
VA Loan
USDA Rural Development Guaranteed Housing Loan

FHA loans are a form of fixed rate mortgage, but only first time homebuyers can qualify for this program. In addition, the buyer must have a low to moderate income in order to receive an FHA loan, which is easier to qualify for and makes it possible to purchase a home with a smaller down payment. The interest rates are also generally lower on these loans than on traditional loans.

VA loans are only available to those that were in the military or to their surviving spouses. Veterans can often obtain one of these loans with a small down payment or without a down payment at all.

The USDA Rural Development Guaranteed Housing Loan is also provided to those with a low to moderate income level, but is restricted only to those purchasing a home in an area that has been designated as Rural Development eligible. These loans require no down payment and the buyer does not need to carry mortgage insurance. It is also much easier to qualify for one of these loans than a traditional loan.

Flexible Payment Mortgages

Flexible payment mortgages are a form of adjustable rate mortgage. Whereas traditional adjustable rate mortgages have a cap on how high the interest rate can become, however, flexible payment mortgages do not. This means the monthly payments may start off low, but can become significantly higher over time.

Balloon Mortgages

With a balloon mortgage, you will have a fixed interest rate and you will pay the same amount each month toward repaying the loan. At the end of a certain period time, which is generally about five to seven years, the remaining balance becomes due at once. This can either be paid out of pocket or by refinancing the home.

Interest Only Mortgages

As the name implies, homebuyers only pay the interest on these mortgages each month for a certain period of time. This results in monthly payments that are much lower than a traditional mortgage. Once the interest only period is complete, however, the payment increases dramatically in order to start working toward paying the principle along with the interest. This type of loan is generally best for those that anticipate having a much higher income in a few years but that want to purchase a home now.

About the Author:
Shannon Kietzman is a well known author and trusted resource. Shannon regularly writes for http://www.byownermls.com/, a For Sale By Owner MLS service, the leading real estate search engine of homes for sale by owner (FSBO). For more information, please visit http://www.byownermls.com/.

For Sale By Owner Real Estate Trends - June 2008

Most Popular*
Top Cities
1. Chicago, IL
2. Miami, FL
3. Marietta, GA
4. Virginia Beach, VA
5. Cincinnati, OH
6. Tampa, FL
7. Philadelphia, PA
8. Louisville, KY
9. Huntsville, AL
10. Greensboro, NC

Top States
1. Florida
2. Texas
3. North Carolina
4. Georgia
5. Illinois
6. Pennsylvania
7. New York
8. Virginia
9. Tennessee
10. Alabama

Most Viewed Properties
1. Log Cabin - $219,000 - Towanda, PA
2. Duplex/Triplex - $128,000 - Denton, TX
3. Condo/Townhome - $369,000 - Wildwood, NJ
4. Condo/Townhome - $183,500 - Brandon, FL
5. Duplex/Triplex - $329,900 - Philadelphia, PA
6. Cabin/Home - $450,000 - McVeytown, PA
7. Log Cabin - $195,800 - Cuba, NY
8. Duplex/Triplex - $245,900 - Green Bay, WI
9. Single Family - $900,000 - San Diego, CA
10. Duplex/Triplex - $220,000 - Louisville, KY

*Based on property views on ByOwnerMLS.com in June 2008.

About the Author:

Greg Sullivan is the President of www.ByOwnerMLS.com, a For Sale By Owner MLS service, the leading real estate search engine of homes for sale by owner (FSBO). For more information, please visit www.byownermls.com.

Federal, State and Local Changes Being Made to Boost the Housing Market

In an effort to spark the economy and to recover from the foreclosure crisis, federal officials have been working on a number of reform programs. Of course, in order to have a positive effect on the economy, these programs also need to be developed at the state and local levels as well. One area that all three levels of government are focusing on is trying to stimulate the housing market, which will then help give the economy a boost.

“There’s a rule of thumb that approximately 30% of the value of the purchase of a home, let’s say the home was purchased for $100,000, 30% over and above the purchase price is going to go into the economy, and that starts with the transaction itself,” said Nanci J. Rands, who is the director of the Michigan Association of Realtors. “Money goes to pay the commissions, title insurance…movers, painters…the purchase of furniture – the list goes on and on and on. The purchase of the house is just the beginning – it begins the whole process…and has a good effect on the economy.”

So, what are some of the changes that are taking place? First, the FHA has increased the loan amounts it offers and has created more programs to help low-income and first-time buyers with their home purchases. In addition, mortgage brokers and banks have made some changes to the types of loans they offer to homebuyers. Namely, they have reverted back to traditional mortgages and have increased the requirements for credit scores and down payment amounts. While this may seem undesirable if you have a less than perfect credit rating, implementing these changes will help prevent people from purchasing homes the aren’t really ready to buy.

“The sooner we eliminate risky lending due to fraud, the foreclosures will slow down. Although I don’t know what percentage of foreclosures are fraud related, one less foreclosure is good for this market. With the spring market under way, I see positive things in the future for our market,” said Mason Miller, who is the vice president of sales at Flagstar Bank.

In addition to federal changes, each state is also making reforms to try to improve the housing market and the economy. In Michigan, for example, the Principal Residence Exemption Act has been put into place. With this Act, homeowners that were forced to move but are unable to sell their old homes can receive tax breaks by claiming two principal residences. Of course, certain requirements apply. For example, the home has to be on the market and it cannot be used for commercial purposes or lease. In addition, the homeowner must still live in Michigan. Nonetheless, the Act helps support the Michigan housing market by providing people with an incentive to stay in the state.

Since changes are being made at state levels and local levels, homebuyers and sellers should look into recent developments in their area in order to be certain to save or make as much money as possible.


About the Author:
Shannon Kietzman is a well known author and trusted resource. Shannon regularly writes for http://www.byownermls.com/, a For Sale By Owner MLS service, the leading real estate search engine of homes for sale by owner (FSBO). For more information, please visit http://www.byownermls.com/.

Deciding Whether Or Not to Be a Landlord

Are you considering becoming a landlord? The reality is that you can make a decent investment in your future by purchasing properties that you then rent out, but it takes a keen eye and understanding of the real estate game in order to make this investment dream a reality.

Reasons to Purchase Rental Property

In an ideal situation, purchasing rental properties will help you create a solid investment into your future. In order to accomplish this dream, you will need to purchase properties and then rent them out to tenants that pay you enough to cover the cost of the mortgage payment, taxes, and insurance. In this way, you essentially purchase a home without having to make any payments on it. Then, once the mortgage is paid off, you own the home that your tenants helped you buy. If the property value increased, you can make a very large profit in this manner without having to spend much on your investment.

The Downside to Purchasing Rental Property

Although purchasing rental property as an investment may seem like the ideal situation, there are some potential downsides to becoming a landlord that need to be taken under consideration. For example, if any problems develop with the property, you will be responsible for taking care of the issues. If the plumbing becomes damaged, for example, you will either need to repair the plumbing yourself or hire someone to do the job. Either way, it can be a very costly process that will cut into your profits.

Another potential downside to being a landlord is the possibility of having bad tenants. The reality is that most tenants do not care for a rental in the same way they would a home that they own. Therefore, it is essential to carefully screen potential tenants and to have a solid contract with them that will allow you to recoup the cost of making repairs to damages that they cause.
Of course, there is also the possibility that you will not always have tenants in your rental, which means you will have to cover the cost of the mortgage on your own. Or, in some cases, the value of the property may actually go down over the years rather than go up.

Depending upon your monthly mortgage payment amount and the cost of insurance and taxes, you may also have difficulty finding a tenant that is willing to pay enough rent to cover all of your expenses. In this case, you will need to pay the difference. As a general rule of thumb, you should be able to ask for rent that is equal to 1% of the purchase price of the home, but this is not always possible and you should not automatically assume that you will be able to get that much rent from a tenant.

In the end, deciding whether or not you want to be a landlord is a very personal decision. As with any type of investment, there are always risks associated with purchasing homes with the intent of renting them out. Therefore, it is important to do your research and to choose your homes wisely in order to have the best chance for success.

About the Author:
Shannon Kietzman is a well known author and trusted resource. Shannon regularly writes for http://www.byownermls.com/, a For Sale By Owner MLS service, the leading real estate search engine of homes for sale by owner (FSBO). For more information, please visit http://www.byownermls.com/.

For Sale By Owner Real Estate Trends - May 2008

For Sale By Owner Real Estate Trends
Most Popular*
Top Cities
1.
Miami, FL
2.
Houston, TX
3.
Chicago, IL
4.
Louisville, KY
5.
Lexington, KY
6.
Atlanta, GA
7.
Virginia Beach, VA
8.
Philadelphia, PA
9.
Sarasota, FL
10.
Plano, TX

Top States
1.
Florida
2.
Texas
3.
Georgia
4.
North Carolina

5.
New York

6.
Illinois
7.
Pennsylvania
8.
California
9.
Virginia
10.
Tennessee

Most Viewed Properties
1.
Log Cabin - $219,000 - Towanda, PA
2.
Single Family - $850,000 - Jonesville, VA
3.
Condo/Townhome - $199,500 - Alexandria, VA
4.
Duplex/Triplex - $329,900 - Philadelphia, PA
5.
Log Cabin - $195,800 - Cuba, NY
6.
Condo/Townhome - $369,000 - Wildwood, NJ
7.
Duplex/Triplex - $128,000 - Denton, TX
8.
Duplex/Triplex - $245,900 - Green Bay, WI
9.
Cabin/Home - $450,000 - McVeytown, PA
10.
Duplex/Triplex - $220,000 - Louisville, KY

*Based on property views on ByOwnerMLS.com in May 2008.
About the Author:

Greg Sullivan is the President of http://www.byownermls.com/, a For Sale By Owner MLS service, the leading real estate search engine of homes for sale by owner (FSBO). For more information, please visit http://www.byownermls.com/.

Deciding If Now is the Time to Sell Your Home

Are you getting ready to sell your home? If so, you might be concerned about whether or not you really own the home that you are selling. After all, if you owe money, the bank still owns an interest in the home. Nonetheless, though you still owe money, the home is yours to sell and to do as you please with it. At the same time, you will still owe the money to the bank. Therefore, you need to take that under consideration when selling your home.

Deciding Your Selling Price

Obviously, the selling price of your home is going to be largely dependent upon its appraised value. After all, no one is going to pay you more than what the home is worth – and no bank is going to approve a loan that is for more than the home’s value. Therefore, the first step you need to take in order to determine the selling price of your home is to have it appraised.

Once your home has been appraised, you need to compare the appraised value of your home to the amount that you still owe on the property. If the appraised value is less than what you owe, selling the home now might be a mistake. After all, you will be without a home, but you will still have to pay on your mortgage. If you owe $75,000 and the home is valued at $50,000, for example, you will still have to pay the remaining $25,000 balance after you sell your home.

Making Money from Your Home

If you have had your home for a few years or so, its value will likely be more than what you paid for the home in the first place. If you did not care for the home properly or if your neighborhood has really gone downhill, however, the value of your home may actually go down.

If the value of your home has gone up, you might think that you are making a profit when you sell your home. While this may be true, there are several things you need to keep in mind when determining whether or not you have really made a profit. For example, if you had to spend a lot of money in order to renovate the home or in order to increase its value, the money you spent on these renovations needs to be subtracted from the selling price when determining your profit.

There are other expenses associated with owning and selling a home as well. Obviously, you will have had to pay property taxes on the home while you owned it. In addition, if you still owe taxes on the property, you will have to pay those expenses before you can sell the home. By selling your home on your own, you can avoid having to pay a commission to a Realtor. Nonetheless, you might still want to hire an attorney to draw up the papers in order to make certain the sell is in proper legal order.

So, before you decide to sell your home, make certain you will gain money rather than lose money if at all possible. That way, you will have the cash available for your new home, whether you decide to rent or to own.


About the Author:
Shannon Kietzman is a well known author and trusted resource. Shannon regularly writes for www.ByOwnerMLS.com, a For Sale By Owner MLS service, the leading real estate search engine of homes for sale by owner (FSBO). For more information, please visit www.byownermls.com.

Buying a Home in the City Versus the Suburbs

Are you trying to determine where to purchase your next home? Maybe you are planning to move to a big city, but you aren’t sure whether you should live in the city or if you should live in the suburbs. When deciding which is the best choice for you, you need to consider the pros and cons of city living versus living in suburbia. That way, you can make a choice that will make you happy.

Considering the Cost of the Home

One of the first things you will notice when you start shopping for homes in the city versus homes in the suburbs is that you will be able to purchase a much larger home for less money if you choose a home located outside of the city. In fact, it is possible to save hundreds of thousands of dollars if you purchase the same sized home in the suburbs as you would purchase in the city.

Considering the Cost of Commuting

While you can certainly save a significant amount of money by purchasing a home in the suburbs rather than purchasing a home in the city, you also have to consider the cost of commuting. With gas prices continually increasing, simply paying for the extra gas each week in order to drive back and forth to work can quickly offset the money you are saving. In addition, when you commute to the city, you have to pay other expenses associated with maintaining a vehicle. This means your insurance rates may be higher and you may have to purchase a vehicle more frequently. In fact, if you lived in the city, you may not have to purchase a car at all.

Considering the Neighborhood

Some people simply feel safer living in the suburbs rather than in the city. Some cities have a bad reputation for being unsafe and for being high in crime. While this isn’t necessarily the case, the peace of mind and the sense of neighborhood provided by suburban homes may be a big draw for living outside of the city.

Considering the Value of Your Time

While it may cost less money to live outside of the city, commuting to the suburbs may cost you a significant amount of time. If you have a family, the time away from your children and your spouse may not be worth the money you save when living in the burbs.

When deciding whether you want to live in the suburbs or in the city, you need to decide what is important to you and to assess the pros and cons of each. That way, you can make the choice that is best for you.

About the Author:
Shannon Kietzman is a well known author and trusted resource. Shannon regularly writes for www.ByOwnerMLS.com, a For Sale By Owner MLS service, the leading real estate search engine of homes for sale by owner (FSBO). For more information, please visit www.byownermls.com.

Understanding Condo Flipping

Have you heard about people who make money by purchasing condominiums and then selling them without ever moving in? If so, you have probably heard that these same people are making a whole lot of money with this practice. While it is possible to make a good profit from “flipping” condominiums in this way, the practice isn’t as common as you might think.

What is Condo Flipping?

When you flip a piece of property, whether it is condo or any other type of property, you purchase the property and then sell it without actually living in the home. In some cases, you may have to make repairs to the property before you sell it. In other cases, you may simply purchase the property on speculation that the value will increase rapidly. Once the value does increase, you turn around and sell the property for a profit.

When it comes to condos, some investors purchase the condo while it is still being built. Then, once it is completed, they sell it to someone that is actually interested in living in the condo. Of course, there are risks associated with this type of investment. After all, there is always the chance that the condo won’t be valued as highly by the public as the investor thinks it will be. As a result, he or she may actually lose money in the process. If the investor carefully researchers the neighborhood in which the condo is being built as well as the reputation of the developer, however, these investments are generally profitable.

How Often Does this Really Happen?

If you watch late night infomercials or listen to slick salesmen, you might get the impression that condo flipping happens all of time. According to researchers, only about 10 to 15% of condos are purchased and the resold within six months from the purchase. When it comes to those that are under construction, a larger percentage of condos may be flipped. Depending upon the location, as many as 33% of these condos may be purchased and then resold after construction is complete. It should be noted, however, that many of these condos are purchased by a small group of investors, with each investor purchasing multiple condos.

Although condo flipping isn’t considered to be a particularly common practice, there are certain times when it does become more regular. These peaks usually occur when the market is particularly hot or when the economy is very stable. Condo flipping can also occur when the economy is in turmoil as owners try to get rid of a condo they can no longer afford. Between the years of 1979 and 1981, for example, approximately 45% of condos were flipped in the Vancouver area in Canada when the market experienced a major meltdown.

About the Author:
Shannon Kietzman is a well known author and trusted resource. Shannon regularly writes for www.ByOwnerMLS.com, a For Sale By Owner MLS service, the leading real estate search engine of homes for sale by owner (FSBO). For more information, please visit www.byownermls.com.

Is Spring the Best Time to Buy and Sell a Home?

There are many myths surrounding real estate when it comes to when it is a good time to sell and when it is a good time to buy. Perhaps the most popular of these myths is the notion that the best time to buy and to sell a home is during the springtime. But, is there really any truth to this myth?

Why Do People Think Spring is the Best Time to Buy and Sell?

There are a number of reasons why people tend to think that spring is the best time to buy and to sell a home. One of these is simply because the weather is warmer and it seems logical that people would be anxious to start house hunting once the snow has thawed. It also seems logical that the springtime would be a good time to sell a home because it offers great opportunities for creating great curb appeal. After all, when the flowers start blooming and brightening your landscape, your home will certainly seem more appealing to potential buyers.

What is Really the Best Time to Buy and Sell a Home?

The reality is that spring does tend to be the most popular month in terms of house sales. In fact, an analysis of sales records of homes does show that the busiest months for closing on house deals are those months that range from March through June. Keep in mind, however, that closings generally take place about 60 days after an offer on a home has been made and accepted. Therefore, this data would indicate that the most active months for selling a home are actually January through March.

It is important to note, however, that having a high number of closings in the springtime does not necessarily mean it is the best time for you to purchase a home. At the same time it does indicate that late winter and early spring may be a good time for you to put a house on the market. After all, if more people are buying during that time of the year, you will have a larger market of potential buyers looking at your home. As a result, you will have a greater chance of selling your home at the price you want.

Nonetheless, choosing the best time to buy and to sell a home really doesn’t have anything to do with the weather. Rather, dips and peaks in the economy are what really determine when it is best to buy and to sell. With the economy in its current condition, for example, it is the perfect time to buy if you are able. When it comes to choosing among seasons, however, you should simply choose the time of year that best suits you.

About the Author:
Shannon Kietzman is a well known author and trusted resource. Shannon regularly writes for http://www.byownermls.com/, a For Sale By Owner MLS service, the leading real estate search engine of homes for sale by owner (FSBO). For more information, please visit http://www.byownermls.com/.

For Sale By Owner Real Estate Trends - April 2008

Most Popular*

Top Cities 1. Chicago, IL 2. Miami, FL 3. Virginia Beach, VA 4. Philadelphia, PA 5. Louisville, KY 6. Houston, TX 7. Fort Lauderdale, FL 8. Raleigh, NC 9. Kansas City, MO 10. Lexington, KY Top States 1. Florida 2. Texas 3. North Carolina 4. Georgia 5. New York 6. Illinois 7. Pennsylvania 8. Virginia 9. New Jersey 10. Kentucky Most Viewed Properties 1. Log Cabin - $219,000 - Towanda, PA 2. Condo/Townhome - $369,000 - Wildwood, NJ 3. Log Cabin - $195,800 - Cuba, NY 4. Duplex/Triplex - $220,000 - Louisville, KY 5. Duplex/Triplex - $329,900 - Philadelphia, PA 6. Duplex/Triplex - $128,000 - Denton, TX 7. Single Family - $459,900 - Chicago, IL 8. Cabin/Home - $450,000 - McVeytown, PA 9. Single Family - $487,000 - LaFayette, LA 10. Condo/Townhome - $183,500 - Brandon, FL *Based on property views on ByOwnerMLS.com in April 2008.

About the Author:

Greg Sullivan is the President of www.ByOwnerMLS.com, a For Sale By Owner MLS service, the leading real estate search engine of homes for sale by owner (FSBO). For more information, please visit www.byownermls.com.

Top 5 Things to Do to Your Kitchen to Increase its Value

Are you planning a kitchen remodeling job? If so, you certainly want to make changes that will help you enjoy your kitchen even more. At the same time, it is a good idea to keep a few things in mind in order to help increase the value of your home. After all, wouldn’t it be better to give your home’s value a boost after your improvements are complete? With these five tips, you will get more joy out of your kitchen while also making it more valuable to potential future buyers.

Tip #1: Open Up the Space

An increasing number of homebuyers are looking for homes with an open concept. After all, opening up space in a home makes it feel less cramped and crowded. If you have a formal dining room next to your kitchen, consider knocking out the wall and separating the two rooms with a serving counter. Not only will this open up the room, it will also give you more counter space.

Tip #2: Update Your Appliances

Updated appliances will help you save energy while also making it easier for you to get your kitchen work finished. Stainless steel appliances are particularly popular right now. Built-in double ovens featuring a convection oven paired with a countertop stovetop are also popular kitchen features.

Tip #3: Install Solid Surface Counters

Solid surface counters require less upkeep than natural countertops, such as granite. Yet, they provide the durability of natural countertop materials. Since solid countertops come in a variety of colors and styles, you can easily find a design that will suit your kitchen plans. Another perk to solid counters is the fact that your sink can be built right in, which means there are no seems around your sink that can get filled with bacteria, crud, and slime.

Tip #4: Improve the Work Space

When planning a kitchen remodeling project, be certain to consider the layout of the kitchen. Ideally, you should form a work triangle. With a work triangle, all of your major kitchen appliances are easily accessible. You shouldn’t have to walk too far to get from your sink to your stove or from your stove to your oven. The less walking you have to do, the easier it will be for you to get your work done in the kitchen.

Tip #5: Change Your Cabinets

If your budget allows, you might want to consider completely replacing your cabinets and drawers. By replacing them, you can add modern features such as rollout trays and folding pantries to your cabinetry. You can also add more cabinets and increase your storage space. Every homeowner knows there can never be enough storage space in the kitchen. If you don’t have the money to replace your cabinets, you still might want to consider refacing them. This way, you can give your kitchen a facelift and give it a more modern look.

With these simple tips, you will certainly find your kitchen to be far more enjoyable. In addition, potential buyers will be more likely to put an offer on your house when the time comes to sell.


About the Author:
Shannon Kietzman is a well known author and trusted resource. Shannon regularly writes for www.ByOwnerMLS.com, a For Sale By Owner MLS service, the leading real estate search engine of homes for sale by owner (FSBO). For more information, please visit www.byownermls.com.

Top 6 Ways to Keep Your Home from Selling

While there are several things you can do to increase the value of your home, there are also numerous things that can reduce the value of your home or make it more difficult to sell. By becoming aware of the traits that can get in the way of a sale, you can more effectively find ways to address the problems and increase your chances of a sale.

#6 Overpricing

Asking too much for your home can make it impossible to sell. Resist the temptation to inflate your asking price. This may seem like a good way to put more money in your pocket, but it will actually make it more difficult for you to sell your home. In fact, many potential buyers won’t even consider your home because it is overpriced when compared to other homes. To make certain you are asking the right price for your home, it is best to seek the advice of an appraiser or a real estate agent. Or, complete an on-line evaluation to determine your home’s value.

#5 Pools Aren’t for Everyone

While a pool can help you increase the value of your home, they can also make it more difficult to make a sale. Families often avoid homes with pools because they are concerned about the safety of their children. Similarly, having a pool requires paying more for house insurance and paying for upkeep. For many people looking for a home, these added costs are quite unattractive. At the same time, a person that is looking for a pool will be willing to pay extra to have one. Therefore, you should consider your location and the overall value of your home in order to determine if a pool will be a help or a hindrance.

#4 Lack of Garage Space

Homebuyers are drawn to homes with a garage. Therefore, unless you live in a historical area where garages are not part of the neighborhood or you live in a condo, you will have more difficulty selling your home if you don’t have a garage or if you have a small garage. Ideally, you should have at least a two-car garage to offer to potential buyers.

#3 Outdated Systems and Appliances

Having an outdated plumbing or electrical system is a real negative to potential buyers. Similarly, homebuyers look for homes that have updated appliances, particularly in the kitchen. The added expense of purchasing new appliances that are in good working order can go a long way toward increasing the value of your home.

#2 Poorly Maintained Home

A home that is obviously maintained poorly will be quite unattractive to potential buyers. If one part of the home, such as the roof, is obviously in poor shape, potential buyers will instantly wonder about what else is in disrepair. If something needs to be fixed, take the time to make the repairs. It doesn’t matter how well you have updated your kitchen if your paint is peeling or if the siding is falling off of your house, potential buyers won’t even consider purchasing the home if there are obvious problems with it.

#1 Décor that is Highly Personal

The more personalized your décor, the more difficulty you will have selling your home. Your goal is to help the buyer see him or herself living in the home. If you have created a very personal décor, it will be difficult for the buyer to see someone other than you living in the home. The same is true with really unique colors. While purple may be your favorite color, potential buyers may have a strong distaste for the color and will have a hard time seeing beyond it. Therefore, it is best to paint your walls in a more neutral tone.


About the Author:
Shannon Kietzman is a well known author and trusted resource. Shannon regularly writes for www.ByOwnerMLS.com, a For Sale By Owner MLS service, the leading real estate search engine of homes for sale by owner (FSBO). For more information, please visit www.byownermls.com.

ForSaleByOwner.com Receives High Accolades

According to comScore, Inc., ForSaleByOwner.com is well ahead of the pack when it comes to companies geared toward helping homeowners looking to sell their homes.

According to comScore, Inc., ForSaleByOwner.com receives almost three times as much traffic as its nearest competitor. This is pretty impressive when considering the fact that major companies such as Keller Williams, Prudential Properties, GMAC Real Estate, and ERA Real Estate were included in this study.

Vice President of Operations for ForSaleByOwner.com summarizes the reason for their success quite simply: “We attract more visitors because our complete line of products and services are helping people sell and buy homes without paying commission. With rich online listings, home pricing tools, step-by-step real estate guidance and live customer support, we are an effective and affordable alternative to using an expensive real estate brokerage firm.”

There are numerous valuable resources available on the site. Some of these include:

Appraiser Lists
Foreclosure Information
Glossary of Real Estate Terms
Home Buyer’s Guide
Home Buying Checklist
Home Inspector Lists
Homeowner Insurance Information
Mortgage Calculators
Mortgage Information
Moving and Relocation Advice
Real Estate Forms
Service Provider Lists
Title and Escrow Information

ForSaleByOwner.com takes advantage of a number of resources to help homebuyers and sellers, including utilizing the far-reaching abilities of the Internet. In fact, the site syndicates its listings to sites such as GoogleBase.com, USAToday.com, Yahoo.com, and AOL.com. Utilizing these sites is a wise decision considering the fact that over 84% of homebuyers utilized the Internet to assist them with their house hunting in 2007.

While ForSaleByOwner.com does charge a small fee for its services, it is far less costly to utilize their services than to hire a real estate agent to sell the home. Typically, ForSaleByOwner.com charges anywhere from $89 to $899 for its services. A real estate agent, on the other hand, usually charges a 6% fee. This means you would pay a $18,000 to a real estate agent if you sold your home for $300,000.

ForSaleByOwner.com also offers an interesting guarantee that you won’t find with a real estate agent. If you are unable to sell your home through the site after purchasing one of its plans, you can utilize the site’s Home Selling Guarantee program. Through this program, ForSaleByOwner.com will help you find a real estate agent in your area to help you sell your home. Once you do sell your home with the help of that agent, the site will provide you with a refund of the money you spent for its services or a gift card for up to $1,000.

Congratulations on your recognition, ForSaleByOwner.com, it was certainly well-deserved!

About the Author:

Shannon Kietzman is a well known author and trusted resource. Shannon regularly writes for www.ByOwnerMLS.com, a For Sale By Owner MLS service, the leading real estate search engine of homes for sale by owner (FSBO). For more information, please visit www.byownermls.com.

Getting Your House Ready for the Showing

Are you getting ready to show your home to a potential buyer? If so, you might be amazed by the many little things you can do to help create a better impression of your home and actually make it possible for you to get more money from the sale. Even better, you don’t have to spend a great deal of money in order to make your home really stand out and get noticed by buyers. In fact, depending upon the condition of the home, you might not need to spend anything at all!

Clean and Straighten the Home

One of the simplest steps you can take to prepare your home for sale is to clean and organize the inside. A home that is grungy and grimy is going to instantly turn buyers off from your home. At the same time, a home that is cluttered feels cramped and small. As a result, the potential homebuyers will start to wonder if the home is big enough to suit their needs. The more open and clutter-free you can make the home, the better impression you will make on your potential buyers.

Always remember that having space is important to buyers. So, in addition to keeping the area clutter-free, you should also allow the potential buyer to enter rooms first. When you go into smaller rooms, such as the bathroom, stand at the door rather than going in. Otherwise, having everyone stand inside the bathroom will make it feel cramped and much smaller than it actually is.

Remove Personal Items

In order to turn a house into a home, you might spend years collecting items and displaying personal mementos such as photos and souvenirs. These little decorations are what make your home unique and special to you. When it comes to selling a house, however, potential buyers need to be able to envision themselves living in the house and making it their home. If your house is too personal, it makes it difficult for buyers to imagine living there.

In order to depersonalize the house, you should remove items such as:

Family photos
Trophies and awards
Souvenirs
Knick-knacks and collectibles
Artwork from your children
Any other décor that is personal in nature

Until the home is sold, keep these items in storage so you can improve your chances of selling the house quickly.

Generalize Your Rooms

When searching for a new house, most buyers are looking for basic rooms such as bedrooms and bathrooms. This means they aren’t looking for specialty rooms such as weight rooms, music rooms, sewing rooms, home offices, and other similar spaces. Therefore, if you transformed one of the bedrooms into one of these rooms, change it back to a bedroom while the house is on the market. If you have painted all of the walls black in order to create your own photo lab, it will make it difficult for the potential buyer to picture it as a bedroom.

Consider the Five Senses

When preparing for a house showing, you should keep the five senses in mind:

Sight
Smell
Taste
Hearing
Touch

Pay as much attention as you can to each of these senses and make sure they are all pleased by the state of your home. Some sellers use little tricks such as baking apple pies during showings. This helps warm up the home while also pleasing the sense of smell. You can then offer a slice to your guests in order to please their sense of taste as well!

In order to please the sense of sight, open up the shades and let the natural light flow inside. If you have pets, keep them out of sight during the showing and find ways to brighten up the home with color. Hanging flower baskets or vases filled with flowers inside can really help to cheer up a home.

To please the sense of hearing, you might play some soft background music as you show your guests around. Then, invite them to sit down on your most comfortable couch in order to spark their sense of touch.

With these simple tricks, you don’t have to spend a whole lot of money – you may not even have to spend a single cent – but it will sure go a long way toward impressing those that are interested in purchasing your house.

About the Author:

Greg Sullivan is the President of www.ByOwnerMLS.com, a For Sale By Owner MLS service, the leading real estate search engine of homes for sale by owner (FSBO). For more information, please visit www.byownermls.com.

ByOwnerMLS Real Estate Trends - March 2008

ByOwnerMLS Real Estate Trends

Most Popular*

Top Cities 1. Chicago, IL 2. Miami, FL 3. Virginia Beach, VA 4. Philadelphia, PA 5. Louisville, KY 6. Raleigh, NC 7. Houston, TX 8. Orlando, FL 9. Brooklyn, NY 10. Huntsville, AL Top States 1. Florida 2. Texas 3. North Carolina 4. Georgia 5. Illinois 6. New York 7. Pennsylvania 8. New Jersey 9. Virginia 10. Tennessee Most Viewed Properties 1. Log Cabin - $219,000 - Towanda, PA 2. Log Cabin - $195,800 - Cuba, NY 3. Condo/Townhome - $369,000 - Wildwood, NJ 4. Cabin/Home - $450,000 - McVeytown, PA 5. Other - $120,000 - La Follette, TN 6. Other - $190,500 - Buford, GA 7. Condo/Townhome - $183,500 - Brandon, FL 8. Duplex/Triplex - $329,900 - Philadelphia, PA 9. Farm/Ranch - $139,500 - Creston, NC 10. Duplex/Triplex - $220,000 - Louisville, KY *Based on property views on ByOwnerMLS.com in March 2008.

About the Author:

Greg Sullivan is the President of www.ByOwnerMLS.com, a For Sale By Owner MLS service, the leading real estate search engine of homes for sale by owner (FSBO). For more information, please visit www.byownermls.com.

Selling Your Own Home...

You have decided to put your home on the market and want to do it yourself. Here are a few steps to consider as you prepare to do a For Sale By Owner.

1. Put up your For Sale Sign. Before advertising your home, make the right first impression. Attract buyers with low cost cosmetic steps such as cutting the grass, cleaning up the outside and painting drab walls. Have a garage sale to get rid of inside clutter. Why? Because people buy homes that appear clean, solid and well maintained.

2. Set your price right and sell your own home fast. To find the true value of your home, compare it to similar homes recently sold in your neighborhood. You may even want to get an appraisal to be sure of what your house is worth. When setting your price, also consider the cost of closing fees, other selling costs, and the amount of cash you want after the sale. You may also want to look at financial terms that support a higher price for your home. A Buyer might be willing to pay more for your house if he or she can assume your current mortgage, or if you are prepared to provide. Often, home prices are higher in Spring and Summer. Buyers look for homes in the Spring and Summer, making it harder to get high prices in Winter when few Buyers are looking for homes.

Be sure to list what items are not included in the sales of your home. In general, items that are bolted to a wall, floor or ceiling or attached by a pipe are included in the sale. Expensive chandeliers are usually bolted to the ceiling. If you want to take your chandelier with you, list it as NOT included in the sale.

3. Good Advertising Sells Homes. New low cost web sites will put multiple pictures of your house on the Internet. Use Internet ads in combination with local newspapers and neighborhood flyers.

A flat fee MLS listing is an effective form of advertising because real estate agents look in the MLS to find homes that match buyer requirements, and most buyers use real estate agents.

4. Schedule An Open House. Kick off your home selling campaign with an open house. Invite all the neighbors for blocks around your house. Show them your home's best points and tell them your price. Why? Because neighbors are the best promoters of the neighborhood and they all have friends and family who buy homes.

5. Negotiating With Buyers. Always make a counter offer when selling your own home. The buyer who offers less than your asking price can be encouraged to pay more or agree to other terms like accepting the house without repairs.

6. Closing the deal and selling your own home. Avoid the tendency to relax after getting a buyer to sign your sales contract. Finishing details, the events between signing a contract and closing day should lead smoothly to collecting cash for your house, but little things can go wrong if you don't pay attention.

Buyers have the right to inspect your house. Pay attention! Every inspection is a potential deal killer. Closing documents can be completed by an attorney, escrow agent or title officer, depending on your state. The closing attorney or escrow agent transfers the title to the buyer, pays all outstanding bills, and turns the cash balance over to the seller.

About the Author:

Greg Sullivan is the President of www.ByOwnerMLS.com, a For Sale By Owner MLS service, the leading real estate search engine of homes for sale by owner (FSBO). For more information, please visit www.byownermls.com.

SawItOnline Syndicating Thier Inventory

BOCA RATON, Fla. March 1, 2007 - Sawitonline.com is the latest real estate company to post its real estate for sale listings with us on ByOwnerMLS.com.

Sawitonline, to leverage ByOwnerMLS’s real estate portal. Additional airtime to their real estate listings will help promote their service and benefit their home sellers with the additional exposure.

Sawitonline, LLC, a Jersey City, New Jersey company, operates http://www.sawitonline.com/ (Beta). They are an online marketing company that not only promotes real estate, but everything from cars to ipods. We are glad to have them and look forward to driving traffic back to their home sellers.

About the Author:

Greg Sullivan is the President of http://www.byownermls.com/, a For Sale By Owner MLS service, the leading real estate search engine of homes for sale by owner (FSBO). For more information, please visit http://www.byownermls.com/.

ByOwnerMLS Trends for February 2008

Most Popular*
Top Cities
1. Chicago, IL
2. Miami, FL
3. Houston, TX
4. Pompano Beach, FL
5. Birmingham, AL
6. Philadelphia, PA
7. Tampa, FL
8. Orlando, FL
9. Brooklyn, NY
10. Kansas City, MO

Top States
1. Florida
2. Texas
3. New York
4. Illinois
5. Georgia
6. North Carolina
7. Pennsylvania
8. New Jersey
9. Tennessee
10. Michigan

Most Viewed Properties
1. Log Cabin - $219,000 - Towanda, PA
2. Log Cabin - $195,800 - Cuba, NY
3. Cabin/Home - $450,000 - McVeytown, PA
4. Condo/Townhome - $183,500 - Brandon, FL
5. Other - $120,000 - La Follette, TN
6. Other - $190,500 - Buford, GA
7. Duplex/Triplex - $329,900 - Philadelphia, PA
8. Log Cabin/Home - $237,900 - Orwell, NY
9. Condo/Townhome - $369,000 - Wildwood, NJ
10. Farm/Ranch - $139,500 - Creston, NC

*Based on property views on ByOwnerMLS.com in February 2008.

About the Author:

Greg Sullivan is the President of http://www.byownermls.com/, a For Sale By Owner MLS service, the leading real estate search engine of homes for sale by owner (FSBO). For more information, please visit http://www.byownermls.com/.

Pricing your property for the For Sale By Owner …..Home Owner.

You have decided to sell your home and made the decision to attempt it on your own, maybe to save on the commission, to offer it for a lower price than your neighbors who have it listed with a real estate agent or just because you feel you have the knowledge or experience it takes to sell it By Owner. Whatever the case, you have made the commitment to go for it and now need to determine a price.

One of the steps you must complete as a For Sale By Owner property owner is pricing your property effectively. What is it worth, and how do you determine its’ value?

Determine Pricing: What is the exact magic number that your home is worth and how do you determine it? Guess what, no one knows. That's right, no one knows….at least not yet…..!

What Real Estate Agents and Appraisers all know yet most don’t openly admit, is that “the Market determines the Market-Value of your home” What does this mean…..the Market determines the Market-Value of your home?

What it means is that your home is worth exactly what someone will pay for it, no more, no less. The fair market value is the price at which the property would transfer between a willing buyer and a willing seller. Market value assumes that the seller is under no undue pressure to sell and the buyer is under no undue pressure to buy. It also assumes that the property has been exposed for a reasonable time to a free and open market.

Not every home of similar style, size and age will sell for the exact same price in a neighborhood. Many factors effect Market-Value, some of them include: location, size, view, improvements and amenities just to name a few. For example assuming all other characteristics of a home are the same, a home with upgrades such as a new kitchen will most likely sell for a higher price than one with a 10 or 20 year kitchen. The same goes for location, again assuming all other characteristics are the same, a home that is on a street with minimal traffic should sell for a higher price than one that is on a busy street.

Where does this lead you in helping to determine Market Value and where do you start? You don’t want to price your home to high, thus eliminating that part of the market that knows what they are willing to pay for a similar home in your neighborhood. Over-pricing your home is the single largest factor that prevents For Sale By Owner home sellers from successfully selling their home. And you don’t want to price your home to low, or sell it for less than Market Value. You have several choices that can help you narrow in on Market Value:

1. Hire an appraiser.
2. Obtain the opinion of a real estate agent or broker in your area.
3. Get an automated valuation. (AVM).
4. Research, Research, Research.

Hire an appraiser.
What’s An Appraiser? An appraiser is a licensed professional who provides appraisal services for a fee. These professionals are often required to take courses and have undergone an extensive training period. In States where appraisers must be licensed, the appraisers must also pass a test, complete basic education requirements and adhere to continuing education guidelines. An appraisal is the professional opinion of an appraiser as to what a home is worth. An appraisal can provide you with an unbiased and impartial analysis as to the market value of your home.

Appraisers use a number of factors when performing an appraisal, such as the condition of your home, what comparable homes have sold for in your area, and other determining factors that impact the value of your home. The appraisal is then provided by means of a written report. When hiring an appraiser, keep in mind that you have hired a professional for his opinion. If you were to hire two different appraisers, from two different appraisal firms, you most likely will get two different opinions. You can find appraisers in your local yellow pages, or online.

One of the easiest ways (not necessarily the cheapest) to accurately price your home is to contact your local qualified home appraiser.

Obtain the opinion of a real estate agent or broker in your area.
A real estate agent or broker is a person who works in the real-estate business and may be a member of a National Association, a local Board of like professionals and may be a member of a local multiple listing service. A real estate agent is a professional often hired to help you buy or sell a home. Your real estate agent can also help you determine the market value of your home, and are generally very knowledgeable about Market Value. These are professionals whom make their livelihood “brokering” real estate. We do not promote that you have real estate agents or brokers recommend Market Value or do what is known to their industry as a CMA or Competitive Market Analysis if you do not plan on using their services. Some of them will gladly offer their expertise even knowing that you are marketing your property as For Sale By Owner. They do this in hopes of you using them if you chose list it with a broker at a later date or they may have a potential buyer and would like you to consider working with them and paying a commission if their buyer buys your property.

You will find that once you list your home as a For Sale By Owner that real estate professionals will be contacting you either with solicitations to list your home with them or with potential buyers. Often times these solicitations are accompanied with a Competitive Market Analysis of your home.

Get an automated valuation. (AVM).
An automated-value-what? Every day, more and more people are turning to automated valuation models for their home valuation needs. Can automated valuation models replace an all-out appraisal when buying a home? Maybe not yet, but they are definitely gaining in popularity.

So what are automated valuation models anyway? An AVM is a residential Valuation Report that can be obtained in seconds. It is a technology report, the product of an automated valuation technology analysis, public record data, and computer decisioning logic combined to provide a calculated estimate of a probable selling price of a residential property. There are many different producers of AVM technology, the orginial developers were instituational data warehouses like First American and Fidelity. They were originally built for larger institutions and Wall Street as a method for them to quickly and cost effectively analyze large groups of real estate mortgages. Over the years their accuracy has increased dramatically.

How do they work? Let’s say you’re selling your home and you want to know what it’s worth. Automated valuation models will take the data of your home, such as square footage, age, etc. and will combine that information with other information, such as how much comparable homes in the area have sold for, and will give you an estimated value of your home based on that data. All it takes is an address.

Why would you want to use automated valuation models over the services of a full-service appraiser? Full-service appraisers definitely know how to do their jobs, but they definitely do it at a cost that is substantially higher than an AVM. Not everyone can afford, or even wants to afford, the prices charged by full-service appraisers. Automated valuation models offer a cost-effective alternative to full-service appraisers, allowing homeowners to find out the true value of their homes with minimal cash out of pocket.

Research, Research, Research:
There are many aspects involved in going at it on your own. Your involvement and activity from potential buyers will vary based on, how you have priced the property, how active or inactive the real estate market is in your area, the location of the property and how you have marketed the property.

Lets look at each one of these individually.
It's easy. Despite what a real estate broker may say, selling a house is not rocket science. (I don't know one agent who is also a scientist). They know that, and soon you will too. Just follow the simple selling steps below. And, if you have any questions, call us and one of our representatives will try to answer any questions you may have.

Pricing your home effectively
One of the best ways to correctly price your house when selling is to find out how much oth