ForSaleByOwner.com: Blog

Simple Steps to a Clean Home

noreply@blogger.com (ForSaleByOwner.com) — Wed, 29 Feb 2012 13:30:00 +0000

We've received some questions asking for inexpensive home cleaning solutions, and want to share some of our tips for putting your home's best foot forward.

Grout
Most grout stains are surface stains. Try sandpaper or a Magic Eraser-type sponge to remove them. (Even a pencil eraser works well.)

If you still have stains, try a grout cleaner or a mix of bleach and water. Make sure you're in a well-ventilated area and wear gloves to protect your skin.

Bathtubs
Vinegar is a great cleaning agent for baths. Using a spray bottle, spray vinegar all over the tub. Leave for 15 minutes, then wipe down the tub and rinse.

For stubborn stains, try a mix of lemon juice, baking soda, and vinegar. Work the paste over the stains with a sponge and rinse.

Sinks
Mix 1 cup baking soda with 1/2 cup Borax. Sprinkle in the sink and scrub with a sponge. The mixture is a natural and mild abrasive that will lift any stains.

Wood Cabinets
To clean and rejuvenate wood cabinets, try a solution of equal parts vinegar and water. Use a sponge to remove grease and buildup. (Avoid using steel wool or scrub brushes since they can damage the cabinets' finish.) A paste of water and baking soda can be applied to remove any stubborn stains.

To restore shine, try a mix of 1/4 cup olive oil and 1 cup vinegar. Using a spray bottle, spray your cabinets with the solution and buff with a soft cloth.

What are your favorite cleaning tips?

Photo courtesy of Morguefile.

3 Questions for the Agent on Your Sofa

noreply@blogger.com (ForSaleByOwner.com) — Mon, 20 Feb 2012 15:57:00 +0000

Real estate agents aren’t shy about defending their commissions. But even within the industry, agents debate questionable policies and practices that confuse consumers.

Have you run across any of these agent claims? Check out Tough Questions for Agents to sort truth from agent fiction.

“I have a buyer who’s perfect for your house, but you’ll need to list with me before I bring them by.”
“I am happy to work with you to sell your house! Just sign this standard contract and we’ll get going.”
“You don’t want to be bothered with all those calls about your house. Let me sort them out and bring you only the serious buyers.”

Buyers Love to Walk This Way

noreply@blogger.com (ForSaleByOwner.com) — Wed, 15 Feb 2012 18:21:00 +0000

This week’s blogs are chock-full of ways to translate what buyers love into strategies for selling your home this spring. And you can read more at ForSaleByOwner.com.

Walkable communities are a huge draw, but it’s almost as good to live in a location that minimizes the amount of time it takes to accomplish daily errands. According to a survey for CEO’s for Cities, buyers will pay more for houses within easy walking distance of neighborhood business districts and public transit. Easy driving access to daily amenities, schools, and work had a similar effect.

Create a map for your sales package that shows walking, public transit and easy driving routes from your house to schools, coffee houses, movie theaters, parks, grocery stores and dry cleaners. This encourages buyers to see for themselves that everyday living is easy in your house.

Check the WalkScore of your house, and include that description in your listing.

Image courtesy of Morguefile contributor Taliesin.

The Top 5 Things Buyers Love

noreply@blogger.com (ForSaleByOwner.com) — Tue, 14 Feb 2012 16:05:00 +0000

This week’s blogs are chock-full of ways to translate what buyers love into strategies for selling your home this spring. And you can read more at ForSaleByOwner.com.

Here are the top five things potential buyers want in a brand-new house, according to a recent survey by trade publisher Hanley Wood:

Everything is new
Less maintenance
More energy-efficient
Opportunity to customize
Contemporary floor plan

And here are the top five things potential buyers like about existing homes:

More affordable
Established community
Opportunity to remodel
Character
Better neighborhood

Now you know what to emphasize in your listing, whether you are selling a new house or an existing house. Visit ForSaleByOwner.com for more ideas on fine-tuning your marketing plan for today’s sellers.

Image courtesy of Morguefile contributor Taliesin.

“That’s what we’re looking for!”

noreply@blogger.com (ForSaleByOwner.com) — Mon, 13 Feb 2012 20:53:00 +0000

Isn’t this the reaction you are hoping potential buyers will have when they see your listing? As you get ready for market, here’s how to prep for a positive reaction. This week’s blogs are chock-full of ways to translate what buyers love into strategies for selling your home this spring. And you can read more at ForSaleByOwner.com.

Here are the top five reasons why renters want to buy, according to a recent survey conducted by trade publisher Hanley Wood:

66% - would rather build equity than pay rent
50% - homeowner is a better long term investment
35% - want to own where they live
34% - acquire an asset they can leave to their children
32% - want the tax deduction

Clearly, buyers who are currently renting are more interested in the long-term financial benefits of owning rather than the immediate tax gains. In fact, the same survey found that only 23% of buyers who are currently renting considered the future erosion of home values as a barrier to buying.

Selling tip:

Emphasize the long-term benefits of your house – recent improvements that will minimize expenses for the forseeable future, for example, or the stable home values in your neighborhood.

Image courtesy of Morguefile contributor Taliesin.

“Open House” to Closing: Set Up Your Sale for a Successful Close: Part 3

noreply@blogger.com (ForSaleByOwner.com) — Fri, 10 Feb 2012 16:44:00 +0000

Getting ready to sell this spring? These days, as many as a third of all deals falling apart before closing. This week we’re reviewing the steps you can take to set up your home sale from the beginning for a successful closing. This is the final installment in this series; scroll back in the blog to read the prior entries.

Yesterday’s post was about setting an asking price that would hold up to scrutiny by the lender’s appraiser. But what if the problem is with the buyer?

Buyers may think they qualify for the mortgage they need to buy your house. They might even have a prequalification or preapproval (here’s the difference).

But if the buyer has been sloppy with managing his credit, or if his income has been erratic, that preapproval might not translate to a loan. A lot can happen between when a buyer starts househunting and when that buyer makes a firm offer.

Secondly, your buyer might have less equity than expected from the sale of her first house. If she bought within the last decade, and used a full-commission agent to sell her house, she might not have any equity at all. If so, she has to rely on savings for the down payment to buy your house. And if she comes up short, the lender will let the deal die.

Don’t waste time with a buyer who isn’t qualified.

Insist on proof of current mortgage preapproval before you start negotiating. Don’t take the buyers’ agent’s word for it. Require written proof.
Insist on a substantial amount of earnest money – at least $5,000. If the buyer doesn’t have it, he may not have enough to support the loan, either.
Continue to market the house even while you are negotiating and under contract. Knowing that you have a backup offer in the works can motivate your first buyer to do anything it takes to get the deal over the line.

Image courtesy of Morguefile contributor dubois.

“Open House” to Closing: Set Up Your Sale for a Successful Close: Part 2

noreply@blogger.com (ForSaleByOwner.com) — Thu, 09 Feb 2012 17:24:00 +0000

Appraisers are not amused.

Real estate agents continue to blame them for deals that fall apart. Why’s that? Because the buyer and seller strike a deal, but then the selling price has to be supported by an appraisal from a licensed appraiser. And a licensed appraiser looks at all the sales for that neighborhood. Often included in the appraisal are properties sold as short sales or foreclosures – always at a lower price than non-distressed sales. So the average price goes down, and suddenly the house under contract looks overpriced. The lender won’t make a loan for the sale price, so the buyer’s offer is no good.

Agents like to blame appraisers, but it’s really up to the agents to set a reasonable asking price to begin with, based on a comprehensive survey of recently sold properties that are similar to the house about to be sold. But agents traditionally rely on a free ‘comparative market analysis” to win a listing. The CMA is usually based only on what the agent can quickly and easily pull from the local multiple listing service. And the local MLS doesn’t include many short sales and foreclosures because these days, banks are selling groups of such properties directly to investors. Ergo: the comparative market analysis isn’t a good pricing tool. But agents keep CMA’s, keep setting up their clients for disappointment by asking too much based on faulty research – and then blame appraisers.

If you are thinking about selling in this contradictory market, you must replicate the appraiser’s process and set your price accordingly. You have several options:

Commission a formal appraisal. It’s about $400. But it could be the smartest $400 you’ll ever spend, because the price that comes back is the price that will likely be accepted by your buyer’s lender. And it’s hard to argue with a current appraisal in negotiations. An appraisal lets you set your price and stick with it.
Do your own research on your local home market. We show you how at ForSaleByOwner.com.
You can figure out which houses have recently sold as foreclosures or short sales by looking at who bought or sold the house in public records of recent sales. If a seller is a bank, chances are that the property was bank-owned, via foreclosure or short sale.

Tune in tomorrow for Part 3 – how to mitigate two other common factors of deals that disintegrate.

Image courtesy of Morguefile contributor dubois.

“Open House” to Closing: Set Up Your Sale for a Successful Close: Part 1

noreply@blogger.com (ForSaleByOwner.com) — Tue, 07 Feb 2012 19:37:00 +0000

At the end of 2010, real estate agents reported that about 9% of their deals disintegrated before closing. Now, that is up to a third, according to the National Association of Realtors. Industry analysts point to a host of factors that converge to derail seemingly solid deals off the tracks.

Appraisals often come in lower than expected – mainly because they count in foreclosures in the ‘comparables.’ This has set up a feud between real estate agents – who think that what a buyer is willing to pay is the only validation of market value that a lender should need – and appraisers, who maintain that their trustworthiness depends on doing a thorough job that mirrors market realities.
Buyers don’t qualify after all. Household debt is starting to edge up again. Unemployment is down, but employment isn’t necessarily up. A buyer might make an offer in good faith, then be hit with hard economic circumstances that make closing impossible.
Buyers don’t have the equity they need from their own homes. Anyone who bought in the past seven years doesn’t have much, if any, equity in their homes. They just don’t have enough to overcome financing hurdles that have cropped up since they purchased their homes.

The rules of the game have changed. Keep reading this week to learn how you can craft a selling plan that turns these circumstances to your advantage – and that keep your home sale on track from open house to closed deal.

Image courtesy of Morguefile contributor dubois.

Why a Flat Market Is Good for Buyers

noreply@blogger.com (ForSaleByOwner.com) — Fri, 03 Feb 2012 22:25:00 +0000

Nationally, home prices dropped by not quite 1% last year.

Did we get that wrong?

Nope. That’s the figure for non-distressed sales – that is, ‘normal’ sales unaffected by foreclosures and short sales, according to mortgage number cruncher CoreLogic. Prices were down only by 0.9% for non-distressed sales, but dropped a scarier 4.7% for all properties, with distress sales factored in.

That the real estate market is scraping along is actually good news, reports Mary Umberger in the Chicago Tribune. She interviewed a prescient economist who predicted the housing bust. Now, he’s saying that things are looking up.

Here’s what Christopher Thornberg told her:

“A couple of years ago, I was saying that we were still in the bubble, don't buy. But now I've been saying, if you need a house — if you recognize that a house is a consumption good and not an investment opportunity, you should consider buying. With interest rates continuing to come down and with prices that have sagged, in some markets — particularly Florida, Arizona and Nevada — affordability is at record levels. But it has to be a long-term hold — you have to be in long term.”

His position: if you aren’t counting on your house to be an investment, but you simply want to recoup what you’ve put into it, today’s low prices combined with today’s low mortgage rates make today a pretty good time to buy.

Groundhog Day for Parents? How to Handle a Kid’s Request for a Down Payment

noreply@blogger.com (ForSaleByOwner.com) — Thu, 02 Feb 2012 16:29:00 +0000

Parents supporting adult kids is a hot topic these days, even though it’s largely based on anecdotal evidence.

It’s certainly true that millennials and Gen Xer’s are stuck with more student debt than ever. And millennials have an uphill start to their careers, especially those who graduated during the recession. But there are plenty of caveats to consider before writing a check to help your adult child buy a house.

Put your retirement needs first. Your kids have time to save for what they want. You are closer to retirement than they are, and you don’t have as much time to save for that as they do for their house purchase. Don’t derail your retirement savings.
Asked to be a banker? Then think like a banker. That means reviewing your child’s credit history and ability to repay a loan. ForSaleByOwner.com’s credit articles show how to correct credit missteps and accelerate savings for a home purchase down payment.
Don’t co-sign. If your child defaults, you are on the hook for the entire debt. Don’t want two mortgages? Then don’t put your name on two sets of mortgage documents.
Get creative. How can you help your child achiever her homeownership goals without setting yourself back financially? Consider letting your child live with you, paying monthly rent directly into a savings account. Can you carry your child on your own health insurance policy, enabling your child to save that much more for the down payment? Can your child take on a part-time job to pay down debts and save up the down payment – and you assist by providing laundry and meals?

Image courtesy of Morguefile contributor Penywise

Whose Side Is Your Agent On?

noreply@blogger.com (ForSaleByOwner.com) — Wed, 01 Feb 2012 19:54:00 +0000

We've said it before, and we'll say it again: it's not always obvious who your real estate agent is working for.

As outlined in this Chicago Tribune article, 'dual agency' is what you call it when one agent represents both the buyer and the seller.

Wait! Isn't that a conflict of interest?

Why, yes, it is. Which is why many states require agents to 'splain themselves if they are trying to persuade a client to accept dual agency. But many agents don't explain it well or at all. Why bother? The fines for violating dual agency are way less than the double commission they collect, one from each side.

The Tribune column clearly outlines the types of pretzel-like relationships that agents can try to get you to agree to. The most important point: know exactly what you are getting into. And who's making money from your home equity.

What the NAR Doesn't Get About FSBO's

noreply@blogger.com (ForSaleByOwner.com) — Fri, 27 Jan 2012 16:37:00 +0000

This week’s topic is the NAR data correction.

The NAR counts any agent involvement in a sale as an agent-assisted sale – even when a by-owner seller simply uses an agent to get a listing onto the local multiple listing service, and identifies as a by-owner seller.

In fact, the NAR's own 2011 Profile of Home Buyers & Sellers proves that alternative agencies are making significant inroads:

• 25% of sellers list with agents that "list the home on the MLS and perform few is any additional services" -- precisely the model offered by ForSaleByOwner.com

• 30% of sellers list with limited-service agents

• 24% of sellers list with full-service, traditional agents

With the proliferation of real estate services, it’s easy to see how even an expert like the National Association of Realtors could get confused. So here’s a quick rundown of the spectrum of real estate services offered by agents, from full-commission to by-owner.

Full commission – Usually, agents charge 5% to 6% to list a home. The listing agent (who represents the seller) collects half of that, splitting that half between the agent herself and her broker. That means that the agent who sold the house only nets 1.5% of the 6% commission. The same happens for the agent who represents the buyer in the sale. The home seller’s 6% fee pays both agents and their brokers. That’s why buyers don’t have to pay to have an agent represent them.

Discount fee – Smaller commission, smaller service. Discount agents sometimes offer a set basket of services for a reduced commission, or sometimes offer a pick-and-choose array of services. Either way, be sure you know what you are getting for the money.

Flat fee – Instead of a commission, a flat fee agent charges a single fee – usually from $1,000 to $4,000 – and expects you to do some of the work to offset the lower cost.

‘By owner,’ listed on Realtor.com and local multiple listing service. ForSaleByOwner.com works with cooperating agents around the country to publish its customers’ listings on local multiple listing services and at Realtor.com. Owners create their own listings with digital photos; market their houses; and by offering a 1.5% or 2% buyer’s commission, can win the interest of buyer’s agents. These homeowners count themselves as selling 'by owner,' even if the NAR doesn't.

5 Killer Sources for Figuring What Your House is Worth

noreply@blogger.com (ForSaleByOwner.com) — Thu, 26 Jan 2012 17:10:00 +0000

This week we’re taking a look at the National Association of Realtors’ sweeping statistical correction. If you can’t trust the NAR’s statistics on home sales, who can you trust?

Plenty of folks.

First, mortgage market giants Fannie Mae and Freddie Mac spin off bushels of statistics from their mortgage databases. They even offer a handy home-price calculator by metropolitan market (more than 300 of ‘em!) so you can see how your home value has changed. (This provides a useful tool for pricing your home and defending that price with appraisers and to buyers when negotiating.)
Second, mortgage-processing giant FNC also lists home-price data.
The Case-Shiller index tracks the monthly change in home values for 20 major metro areas.
Local property records – available through your county recorder of deeds or property records office – contain nuggest of data about what neighboring houses sold for, that provide context for the value of your own home. In fact, some real estate economists recommended that property records become the NAR’s ongoing source for its data.
It’s smart to take even local agent-generated results with a grain of salt. Last summer, an Illinois multiple listing service was caught with sloppy numbers.

Your best bet: rely on numbers from government and industry analyst sources. Key links are in the ForSaleByOwner.com Pricing Guide.

The Truth Behind the NAR's Data Correction

noreply@blogger.com (ForSaleByOwner.com) — Wed, 25 Jan 2012 16:52:00 +0000

For years, the National Association of Realtors statistical reports had been drifting out of touch with reality. Finally, under increasing pressure from critics, on Dec. 21, the NAR released a sweeping statistical correction: from 2007 to 2010, an average of 14% fewer houses actually sold, compared to prior NAR reporting.

This week’s ForSaleByOwner.com blogs will parse some of the details in the NAR’s report, explored more fully in our Education section.
The NAR downplayed it statistical missteps by emphasizing the corrected statistics were national, and of course, real estate markets are local. But that overlooks one major point: local markets compare their strength to the national norm, and that directly affects the decisions made by homeowners as to whether or not they should sell. Critics around the country have called on the NAR to tidy up its statistical reports going forward.

The NAR managed to blame a supposed undercount of by-owner sales as one factor for its data headaches. But the real issue is that the NAR’s definition of a ‘by owner’ sale does not reflect what a ‘by owner’ sale really is. If you put your house on your local multiple listing service or on Realtor.com through ForSaleByOwner.com, and handled every other aspect of your sale on your own, the NAR still counts your sale as ‘by agent,’ because an agent was paid a small flat fee to pass through your listing to the MLS.

By the NAR’s definition, the only marketing options that are truly ‘by owner’ are yard signs and local classifieds. But as smart home sellers know, there is a wide spectrum of services that they can tap into while still steering their sale themselves – ‘by owner.’

Image courtesy of Morguefile contributor alvimann.

It's Going To Be Harder to Hire a Good Contractor

noreply@blogger.com (ForSaleByOwner.com) — Thu, 19 Jan 2012 15:36:00 +0000

Last fall's lift in home sales has just delivered an unexpected side effect: remodeling is off to a surprisingly strong start to 2012.

The Harvard Joint Center on Housing tracks remodeling activity, and today released its latest report, documenting the uptick. JCH attributes this to the high number of lower-end houses sold in late 2011. Those houses apparently needed work, and now. Investors, who have been buying distressed houses wholesale, aren't wasting any time fixing up those properties so they can be rented or resold.

Here's what that means for you:

If you are thinking of buying a run down or foreclosed property (which may harbor nasty surprises that need to fixed pronto), you will probably be competing for the best contractors. That will add time to your schedule and money to your budget.
If you want to do a bit of remodeling to your current house with the aim of selling it soon, higher costs will directly affect how much equity you will get out of the transaction. Consider ways to offset the remodeling costs, such as cutting back on the cost of the transaction itself.
Prioritize your projects so you get the most return at resale.
Organize your work so you have a short, clear to-do list. With more work lined up, contractors will be less likely to come back and tackle additional tasks you add to the original job.

Less is More, A Lot More, for Today's Buyers

noreply@blogger.com (ForSaleByOwner.com) — Fri, 13 Jan 2012 16:10:00 +0000

Less house means less money...and less hassle, less cleaning and less maintenance.
According to the Chicago Tribune, home buyers are getting very practical. They're zeroing in on their needs and quickly eliminating their 'wants' as they seek to get the most for their money.

Here's a summary of most-wanted and least-wanted amenities. You're in luck if your house already has the most-wanted. If your house has the least-wanted, consider how staging can reposition those spaces as most-wanted.

What buyers want:

First-floor flex rooms that can be used for dining, exercise, games or a home office
'Pocket offices' for household billpaying and paperwork
Larger, informal, eat-in kitchens
Lots of storage and walk-in pantries
Spacious mudrooms and laundry rooms

What buyers aren't willing to pay extra for:

A breakfast room off the kitchen
A sitting room adjacent to the master bedroom
Overly large secondary bedrooms
Formal dining rooms that can't be repurposed

Home Is Where the Deduction Is

noreply@blogger.com (ForSaleByOwner.com) — Thu, 12 Jan 2012 17:44:00 +0000

One thing you won’t be hearing from candidates in this election year: eliminate subsidies for homeownership.

Support for various modes of homeownership subsidies, including the mortgage interest deduction and federal policies encouraging homeownership, is held by two-thirds to three-quarters of Americans, across party and economic lines. That’s according to poll results just released by the National Association of Homebuilders.

Echoing findings of similar surveys conducted in 2011 about Americans’ rock-solid commitment to homeownership are these highlights from the homebuilders’ survey:

•    96 percent of home owners are happy with their decision to own and 84 percent who are “underwater,” or owe more on their mortgages than their home is worth, expressed the same sentiment.
•    79 percent of home owners would advise a family member or close friend just starting out to buy a home, and 69 percent of those who are underwater on their mortgage would offer the same advice.
•    74 percent said that despite the ups and downs in the housing market, owning a home is the best long-term investment they can make.
•    Homeownership and a retirement savings program are considered by voters to be their best long-term investments.
•    Nearly seven out of 10 voters who are not currently home owners (68 percent) said it was a goal of theirs to buy a home.

Despite the uncertain employment market and the difficulty of pulling together a down payment (one of the biggest barriers home buyers face today), Americans are oriented toward homeownership. They’ve bought the argument; it’s only up to individual sellers to translate those intentions to a sale through smart pricing and positioning.

Image courtesy of Morguefile.

Good News: Mortgage Rates Flat-Line

noreply@blogger.com (ForSaleByOwner.com) — Tue, 10 Jan 2012 17:15:00 +0000

Mortgage rates are likely to plateau at their current level of about 4%, according to analysts quoted in the Hartford Courant. That’s good news for buyers and sellers, though the underlying drivers aren’t so cheery.

Demand for mortgages will remain tepid mainly due to these factors:

Rocky employment trends – despite the recent uptick in hiring, millions of Americans are unemployed or underemployed
Eroded credit – Struggling to regain firm financial footing, many would-be buyers simply don’t have a good enough credit score or enough of a down payment to qualify for a mortgage
An unappetizing array of homes on the market – Foreclosures and distress sales still dominate

What does this mean for this spring’s sellers?

Be sure your buyers are truly qualified. To get the very best of the current low rates, they will have to have a hefty down payment and polished credit scores. Don’t waste time with marginally qualified buyers.
Position your house as a ‘smooth move:’ if you’re not selling short, your traditional home sale should face few barriers to lenders and buyers.

Check out the ForSaleByOwner.com Education section for the latest tips and tactics on selling this spring.

Not Your Dad's Down Payment

noreply@blogger.com (ForSaleByOwner.com) — Mon, 09 Jan 2012 17:27:00 +0000

Buying a house isn’t what it used to be, which is why your parents’ advice may or may not be actually helpful.

The basic process of home buying hasn’t changed much But the nuances of financing, rules and regulations have. Closing is more complicated than ever, with more moving parts. And you will need to gather more documentation and have more cash at closing than your parents probably did.

Today’s first-time buyers also have different expectations for building wealth through homeownership than did prior generations. According to the Pew Research Center, today’s newly retired homeowners enjoyed a stroke of good timing: they bought their houses long enough ago that their net equity was not eroded by the housing recession. In other words, they’ve still made money on their houses.

Despite lower housing prices, today’s first time buyers probably will not get a big lift in equity, especially in the first five to ten years of homeownership, if current predictions about a slow housing recovery prove accurate. That means that it will be a decade or more before this year’s buyers can truly count their houses as an asset.

First-time buyers need all the help they can get. But make sure that advice is current, and not based on outdated assumptions and experiences

2011 Home Improvements Will Make All the Difference in 2012

noreply@blogger.com (ForSaleByOwner.com) — Thu, 05 Jan 2012 17:47:00 +0000

Americans are dour about the economic prospects for 2012 -- their own, and the country's. They expect to save less and stay stuck in debt, according to the latest Harris Interactive poll.

One sign of the times: only 11% of homeowners say they will re-invest in their homes through value-building home improvements.

That means that you have a major selling advantage if your house is recently improved, so work it!

If you improved in 2010 or 2011, put those dates in your listing headlines and description -- you'll stand out from others using fudge terms like 'recently updated'
Be specific with brand names -- Kohler, Viking, KitchenAid, GE, Pergo -- that are shorthand for quality
Lead with photos of your nearly new improvements, and take several photos from different angles, of the improved rooms. Include close-ups.

For five more tactics that will keep you ahead of the 2012 housing market, plus ways to tame a post-holiday credit hangover, visit the ForSaleByOwner Education section.

Clear the Way To Your Down Payment

noreply@blogger.com (ForSaleByOwner.com) — Wed, 04 Jan 2012 17:25:00 +0000

Opening a credit card statement and seeing $0.00 as the balance is very satisfying.

So satisfying that many consumers pay off smaller balances completely just to get them out of the way, while rolling over larger balances…ultimately paying more.

Our mission at ForSaleByOwner.com is to help you buy the house you want. Our Credit Cleanup Countdown can help you wrestle your credit score and report into shape for a fast and clean mortgage preapproval. (With that preapproval in hand, you can negotiate confidently for your house.)

Here’s one way to gettyour credit ready for a lending officer’s scrutiny:

Find out what cards have the highest interest rates. Then, find out what your credit limits are for all your cards.

First pay off the accounts that have the highest balances in relation to the maximum credit ceiling. You want your credit report to show that you are not using anywhere near the amount of credit you could, on any account.
Second, chip down on the balances with the highest rates. Those are the most expensive accounts.
Finally, pay off the balances on the accounts with the lowest rates. Those are cheaper to carry for a few billing cycles.

These steps will help you make progress towards a stellar credit report and rating when you apply for a mortgage. Rely on ForSaleByOwner.com for everything you need to know about shaping up your credit for a home purchase, from FICO to first down!

Image courtesy of Morguefile contributor cohdra.

We Know Where You Are Moving To

noreply@blogger.com (ForSaleByOwner.com) — Tue, 03 Jan 2012 16:40:00 +0000

Moving? Chances are pretty good you are headed to Texas.

According to the annual Allied Van Lines tally of who's moving where, the top fives states people are moving to are:

California
Texas
Florida
Virginia
North Carolina

And the top five states people are moving from are:

California
Florida
Texas
Illinois
New York

But when you subtract the from's from the to's, Texas nets the most 'in-migration' -- in other words, more people choose to move to Texas than choose to leave.

Statistics like these can help you gauge the demand for housing in your state...and consequent home value and housing demand.

Image courtesy of Morguefile contributor jdurham.

5 Hot Items for Condo Board Agendas

noreply@blogger.com (ForSaleByOwner.com) — Fri, 30 Dec 2011 17:48:00 +0000

Thinking of buying a condo?

Thanks to our sister publication, the Chicago Tribune, here's a top list of hot topics for condo boards for the coming year.

Be sure to investigate these issues when you are examinig the bylaws, minutes and finances of any condo association you are thinking of joining.

Delinquent assessments. Bad debt and delinquent members affect everyone in the association....and make for tense neighborly relations.

Foreclosures and bankruptcies. Units owned by delinquent owners and by banks might not be contributing fairly to community obligations. How is the association dealing with crimped income?

Long-term deferred maintenance. Maintenance deferred means bigger bills later.

Municipal budget problems. Many municipalities are trimming budgets -- Chicago, for example, now charges condo associations for trash pickup that they already pay for from private services. What fees and rate hikes are on the horizon?

FHA recertification. To quote the Tribune's story: The Federal Housing Administration in 2010 changed its policies to require that associations, not just individual units, undergo an approval process before the agency will offer mortgage financing within the development. Because certification is valid for only two years, associations that certified in 2010 must recertify in 2012. If they don't, owners will miss out on a large number of shoppers.

To stay ahead of these issues, line up a real estate attorney who is conversant in both condo law and in the city in which you are thinking of buying.

Going Nuts With That New Credit Card? CoreLogic Thought You Might

noreply@blogger.com (ForSaleByOwner.com) — Tue, 27 Dec 2011 22:50:00 +0000

Mortgage lenders have historically been interested with how applicants have handled big-ticket items – like rent and car loans. Of course, they’ve paid attention to consumer credit, but in the past, consumers have always paid their mortgages first, so mortgage lenders have assumed that once consumers locked in, the mortgage would always be their top debt priority.

The recession and wave of foreclosures changed all that. Some consumers paid their mortgages last, figuring it would take more time for the legal system to catch up with them, and that they needed their consumer credit cards for daily needs.

Recently, two of the biggest credit-tracking organizations – CoreLogic and FICO -- blended their credit-tracking tools to predict how consumers will pay their mortgages based on how they’ve handled their consumer credit.

That’s reassuring for those who have nothing to hide. But if you’re trying to clean up your credit, it’s one more pressure point.

Have a Guilt-Free Shopping Spree

noreply@blogger.com (ForSaleByOwner.com) — Thu, 22 Dec 2011 18:53:00 +0000

Only two shopping days left till Christmas! It’s the danger zone when you can veer off course and accidentally spend more than you intended.

The 2011 season has been marked by self-gifting – shoppers buying nearly as much for themselves as they are for family and friends. Impulse buying is fun, if you allot a certain amount of cash for the unexpected. Here are tips for a guilt-free shopping spree that won’t induce a credit hangover that hurts your chances of buying a house in the spring.

Plan your impulse shopping. That’s not as contradictory as it sounds. Researchers at the Wharton School of business, LeBow College of Business and IE Business School surveyed European shoppers and found that 20 to 40% of their purchases were officially unplanned…except that the shoppers fully expected to make impulse decisions even before they left the house. Before you leave, set a limit for your gotta-have-it item. That way you can have all the fun of choosing something in the spur of the moment, knowing that you’ve already neutralized any cash backlash.

The more optimistic you are about your personal financial situation and about your career, the more likely you are to buy gifts for yourself, according to research conducted by academics at the Kellogg School of Management. Concentrate that confidence on buying a house -- the biggest purchase you’re ever likely to make – a house – instead of doling it out in smaller purchases.

Photo courtesy of Morguefile contributor penywise.