ForSaleByOwner.com: Blog

ForSaleByOwner.com's Predictions for the 2010 Real Estate Market

noreply@blogger.com (ForSaleByOwner.com) — Wed, 20 Jan 2010 18:42:00 +0000

ForSaleByOwner.com not only helps connect sellers and buyers through a host of real estate tools and resources, but we are also relied upon by the real estate media to share our thoughts and opinions on the real estate marketplace.

As such, we developed our "Top 10 Predictions for the 2010 Real Estate Market" and shared it with reporters throughout the country. As consumers have become more educated about real estate, we'd like to share our thoughts with our blog followers.

Among our predictions are an increase in sales volume, a decrease in home prices, another increase in buyers using the Internet to search and successfully find their next home, and more home sellers using Internet-based resources to price, market and sell their home without the expense of paying commissions to a real estate broker.

We feel that the behavior of the real estate consumers will continue to change in 2010. More real estate data and information is available through numerous online resources and consumers will rely more on the Internet than real estate agents to buy and sell their homes. Sellers will resist paying real estate commissions and will instead look to ‘by owner’ selling alternatives, especially as falling home prices are motivating sellers to retain as much of their home value as they can as they sell their house.

ForSaleByOwner.com’s Predictions for the 2010 Real Estate Market

1. Overall homes sales – existing home sales and financially distressed homes – stabilized and slightly increased in 2009. Mortgage rates should remain low in 2010 and the extension of the first-time homebuyers tax credit should help the housing market. Prediction: In 2010, all home sales should see a slight increase in volume of 1-2%.

2. The median home sales price was $221,900 in 2006 and fell to $219,000 in 2007 and $198,100 in 2008. Median home sales decreased again in 2009 and will likely end up in the mid $170,000 range. Foreclosed properties and other distressed sales, with their severely discounted prices, helped to lower the median home price in 2009. Prediction: Distressed properties will continue to dominate home sales in 2010 and will keep pricing pressure on homes and they will fall approximately 4-6%.

3. According to the National Association of Realtors (NAR) 2009 Profile of Home Buyers and Sellers report, 36% of buyers found the home they purchased by first seeing it online and 36% of buyers found the home they bought through a real estate agent. The Internet and real estate agent as the sources for finding a home have trended in opposite directions annually since 2001, when 48% of buyers found their home through an agent and just 8% found it on the Internet. Prediction: In 2010, for the first-time ever, more people will find the home they purchase by seeing it first on the Internet compared to those who first learned of the home through a real estate agent.

4. Due in part to the $8,000 tax cut for first-time homebuyers, first-timers comprised nearly 50% of all home sales in 2008. Prediction: The extension of the $8,000 tax credit to June 2010 will attract more first-time homebuyers into the market and they will continue to be the most common type of homebuyer in first half of 2010.

5. According to NAR, 90% of all buyers use the Internet as part of their home search, up from 87% in 2008, 84% in 2007 and just 71% in 2003. Prediction: In 2010, more than 90% of all homebuyers will use the Internet to search for a home.

6. According to NAR, home sellers who sell their home “by owner” sell their home in six weeks while those who sell it through an agent sell the home in 12 weeks. NAR also discovered that the “by owner” seller achieves a sales price that is 97% of their asking price, while an agent-assisted seller gets 95% of asking price. Prediction: In 2010, “by owner” sellers will continue to sell their home quicker and for closer to asking price than agent-assisted sellers.

7. In 2000, there were 756,000 members of the National Association of Realtors. As the housing market boomed in the early part of the decade, its membership grew to a peak of 1.37 million members in 2006. People have left the profession as the market declined and NAR’s membership now stands at 1.13 million. Prediction: There will be fewer than one million real estate agents in 2010 due to increased competition for listings and as the Internet makes it easier for people to sell and buy homes without an agent.

8. Real estate agents have historically lowered their commission rates during a seller’s market and increased their rates during a buyer’s market. Prediction: Real estate commission rates have been approximately 5.2% the past couple years and will rise closer to 6% in 2010.

9. As home values have declined, more homeowners have realized that paying commissions to get their home sold decreases the amount they receive even further. Prediction: More home sellers in 2010 will explore other alternatives to paying commission and will choose to sell their home “by owner” to retain more of their home’s value.

10. Studies from Northwestern and Stanford universities have found that people who sell their home “by owner” are as effective as agents in maximizing the sales price of their home. Consumer Reports magazine found that “by owner” sellers get closer to their asking price than agent-represented homes. Prediction: More home sellers in 2010 will utilize Internet-based tools and information to compare recently sold homes and price their home more effectively.

Industry Data Shows FSBOs Sell Quicker & Closer to Asking Price than Agent-Represented Homes

noreply@blogger.com (ForSaleByOwner.com) — Tue, 22 Dec 2009 15:23:00 +0000

Tucked away in an annual report from the National Association of Realtors (NAR) were statistics and data that compared selling through a real estate agent versus selling "for sale by owner." The findings would make any real estate agent cringe and any home seller gain more confidence in selling their own home.

NAR's report (The 2009 Profile of Home Buyers and Sellers) found that people who sell their home on their own are able to sell it, on average, in six weeks, while it takes an agent double that time (12 weeks) to sell a home (see above image). The report also found that “by owner” sellers received 97% of their asking price on average, while those represented by an agent got 95% of their asking price on average. Considering that the goal of any home seller is to sell a home for as much money as possible and as quick as possible, this report is strong evidence that selling "by owner" is a smart choice for home sellers.

In addition to selling quicker and for closer to asking price, selling FSBO also allows the home seller to save on commission. Real estate agents typically charge a commission equal to 6% of a home's sales price, or $18,000 on a $300,000 home. As home prices have fallen, more sellers are quickly realizing that real estate commissions are costing them more of their home's value.

ForSaleByOwner.com has seen double digit growth in the second half of 2009 and our extensive real estate resources & tools help customers price, market and sell their home in an effective and cost-saving manner. Use our "Home Seller's Checklist" to learn how to become a "for sale by owner" home seller.

FSBO Fact: Agents are not lawyers

noreply@blogger.com (Greg Healy of ForSaleByOwner.com) — Thu, 19 Nov 2009 16:56:00 +0000

I did an interview the other day with a television station out of Ohio. During our conversation, he asked how do sellers handle legal paperwork and questions. I simply responded, we recommend all sellers and buyers have legal representation to limit and avoid legal risk and to make the closing of your sale much easier. He then asked if Real Estate Agents handle legal documentation and questions for their clients.

Unless and a Real Estate Agent is an attorney, they should not offer legitimate legal advice during a close.

Fact 1: Real Estate Agents are not lawyers so they can not provide buyers and sellers with binding legal advice. Meaning if something were to happen during the close process or post close, you the buyer or seller are on the hook.

Fact 2: Home sellers and buyers pay for any legal representation regardless of whether they are working with a real estate agent or not.

Homebuyers Tax Credit Extended to June 2010

noreply@blogger.com (ForSaleByOwner.com) — Tue, 10 Nov 2009 15:54:00 +0000

Uncle Sam is giving more homebuyers a tax break. An $8,000 tax credit for first-time homebuyers, which was due to end on November 30, has been extended by the federal government until June 2010. The IRS estimated than 1.4 million people have taken advantage of the tax credit thus far and the extension will undoubtedly attract more first-timers to buy homes.

In more good news, the tax credit also extends it to those who already own a home. A new $6,500 tax credit is being made to attract repeat homebuyers to trade up and purchase their next home.

All real estate transactions must close by June 30, 2010 in order to reap the tax credit. In addition, buyers must meet certain income limits. Single buyers who make up to $125,000 will qualify, as do married couples with a combined income of $225,000 or less.

Click here to visit a section of the IRS website that provides additional information about the tax credit and specific tax forms that a homebuyer will need to get the tax credit.

Let For Sale By Owner's sell in peace -

noreply@blogger.com (Greg Healy of ForSaleByOwner.com) — Wed, 28 Oct 2009 14:29:00 +0000

Yesterday, I listened to a customer tell one of our wonderful customer service representatives that he was tired of having Realtors call him 5 times each day trying to scare him, telling him he will fail, asking to list the house, etc. Simply put, this is childish activity and down right unethical. I understand agents need to make money but they should not "scare" people into doing something - it is not good business and it is morally wrong.

For Sale By Owner customers have the right to sell their homes without an agent AND without being bombarded with scare tactics. This would be like eBay.com telling someone they can not sell their furniture at their Church Bazaar (or garage sale). Or, a travel agent calling a customer and telling them they will not pick the right hotel at the right price at Walt Disney World when they book on-line, without an agency. Or stock brokers telling good, hard working citizens they can never buy and trade their own stocks on-line, that it is too dangerous!

Life has risks. I understand this, as do our important and respected customers on ForSaleByOwner.com. Risks bring reward. These hardworking citizens are empowering themselves to be successful and improve their financial security. So please let every For Sale By Owner seller - regardless of where they are advertised - sell their home in peace. Thank you.

Driven By First-Timers, Home Sales Show Dramatic Increase

noreply@blogger.com (ForSaleByOwner.com) — Fri, 23 Oct 2009 16:31:00 +0000

New data from the National Association of Realtors found that in the month of September, which is the latest data available, existing home sales increased 9.2% from September 2008. While this is great news for the housing market as this is the highest increase we've seen in two years, the increase is likely due to the fact that the $8,000 tax credit for first-time home buyers is expiring November 30 and these buyers are racing to close on their home sale. In fact, early estimates are that first-timers have comprised 45% of all home sales thus far this year.

Unless the tax credit is extended, we suspect that October and November figures will also show increases and that we'll see a noticeable drop in December.

Home sellers, especially with homes geared for first-timers, should keep close attention to housing news regarding the tax credit. We'll keep you informed here as well, but we've found that the most successful "by owner" home sellers are aware of the latest news affecting the housing and mortgage industries. Not only because buyers are more confident working with such knowledgeable sellers, but because sellers who are aware of the latest trends are more likely to market and accurately price their home to attract qualified buyers.

Mortgage Rates Dip Below 5 Percent

noreply@blogger.com (ForSaleByOwner.com) — Fri, 09 Oct 2009 14:53:00 +0000

Freddie Mac has just reported that the average 30 year fixed mortgage rate was 4.87% for the week ending Thursday, October 8. It's the lowest that mortgage rates have been since the spring. For a $250,000 mortgage, the monthly payment at a 4.87% rate is $1,322. The 30 year fixed rate was 5.94% last year at this time, or a monthly mortgage payment of $1,489 on a $250,000 mortgage.

Buyers and those who want to refinance are not the only people interested in low rates. Sellers need to keep track of mortgage rates because rate changes will make their home more or less affordable. Real estate agents typically contact home buyers who are sitting on the fence to alert them to low interest rates, and "by owner" sellers should do the same. The smart "by owner" seller should take some time this weekend to call or email people who have showed interested in their house and let them know about these low rates. Buyers will appreciate that you are helping them save money in today's economy.

Click here to get started on getting approved for a mortgage.

Selling For Sale By Owner - Yes you can!

noreply@blogger.com (Greg Healy of ForSaleByOwner.com) — Thu, 08 Oct 2009 14:15:00 +0000

You - anyone - can sell their home "by owner". I had a conversation with someone this week and they said "I thought you had to use an agent" to sell your home.

FACT: Every consumer has the right to buy and sell property without using a real estate agent.

Sadly, many consumers are mislead to believe there is some special law or policy which states they have to use an agent during the buying and selling process. Ten (10) years ago, information was controlled by agents which lead people to believe they had to work with them. Today, the internet and easy access to every key piece of information to help you - the consumer - buy and sell property is at your finger tips.

About 4 years ago, an independent study (Real Trends) found out about only 50% of consumers were aware of the For Sale By Owner method of selling their home. I hope during the past 4 years this has improved and made more people are aware you have the right and greater opportunity to sell via the For Sale By Owner method.

Every consumer has the right - and more tools today - to sell and buy your home and to save a lot of money. Empower yourself. Empower your friends and neighbors. Make sure they know they have a powerful choice to make which can provide them financial independence by selling For Sale By Owner.

$8,000... Time is Running Out!

noreply@blogger.com (ForSaleByOwner.com) — Thu, 01 Oct 2009 20:34:00 +0000

As any first-time home buyer probably knows, one of the best deals in today's market is the $8,000 tax credit that the government is offering to people purchasing their first home. According to figures from the IRS, it has been very successful as more than 1.4 million people have used the tax credit thus far.

The home buyer has to meet certain guidelines in order to qualify for the tax credit (click here for specifics), but most importantly the real estate transaction has to close by November 30, 2009. That date is quickly approaching, and prospective first time home buyers should not let this opportunity pass, especially since there have not been any strong signs that the federal government will be extending the deadline.

Choosing a good real estate attorney, as well as getting pre-approved for a mortgage, will help ensure that you will be able to close on your dream home in time.

Existing Home Sales - August, 2009

noreply@blogger.com (Greg Healy of ForSaleByOwner.com) — Fri, 25 Sep 2009 13:46:00 +0000

Yesterday the National Association of Realtors reported "existing home sales" dropped 2.7% from July. This is no surprise and should not be a shock. For the next 15-18 months, we will see months of increases along with months of decreases. Meaning, the industry as a whole will not see 12 straight months of non-stop increases. The weak economy, unsteady housing market, weak job prospects, and foreclosure volumes will combine to make the housing market uncertain and a bit unpredictable.

That said, I believe consumers have the opportunity and power to sell their properties if they know and understand their market. Today, more than ever, consumers who sell their home via the For Sale By Owner process have more access to resources, knowledge and information to correctly price their home. In this market, the consumer should monitor home inventory on a weekly basis and follow these basic steps:

What new homes (similar to your home) decided to sell this week?
What are the prices of homes similar to mind?
Visit your competition - see what "selling" features they have.
Understand how many foreclosures are listed in your neighborhood (this will likely lower final sales prices but check the price of these properties too.
Finally, find out what homes similar to yours, sold for in the past month or two.
Note: Every consumer has access to this information via the internet - it is freedom of information and quite empowering.

In this market, selling For Sale By Owner gives you and extra 6% of pricing power against your competition. Example: If you competition is listed at $300k, price your home at $295k. Your competitor who is using an agents will only take home $282k ($300 - $18k in commissions) so you come out way ahead.

Build confidence & empower yourself -

FSBOs Finding Success in Selling Own Homes

noreply@blogger.com (ForSaleByOwner.com) — Fri, 11 Sep 2009 13:25:00 +0000

As previously discussed, the real estate brokerage industry has highlighted the benefits of selling "by owner." The average ForSaleByOwner.com seller saves $12,750 in commission and utilizes our online marketing tools to attract buyers and get their home sold. Here's what some of our recent sellers have told us about their experience with ForSaleByOwner.com.

"Awesome service ... in today's economy and market, people are on the lookout for the best deal for the money. ForSaleByOwner.com is just that deal! Thanks for helping me sell my home!" - Jarett in Cabot, Arkansas

"Nothing negative to say. Placed the ad on forsalebyowner.com on Sunday and received an offer on Monday. Can't complain about that!" - Bryan in Cary, North Carolina

"We got several calls from interested buyers. More than we did when our home was on the market with (a Realtor) for 5 months. We have been speaking nothing but good things about your service and will continue to talk you up. We will be doing this again. I guarantee it! " - Tania in Converse, Texas

"Extremely pleased with service. Saved over $10,000 in Realtor fees! Would highly recommend!" - Patrick in North Olmsted, Ohio

"We were very satisfied with the service. It just shows that selling a home on your own is much easier than the use of an agent of which most had no clue on how to price in this market." - Edward in Jersey City, NJ

"Great service, great product, very effective. I had a purchase and sale agreement within two weeks. Thanks." - Ethan in Veradale, West Virginia

Tips on How to Price a Home

noreply@blogger.com (Eric Mangan) — Mon, 01 Jun 2009 20:12:00 +0000

A home's asking price is one of the first pieces of information that buyers will want to know about any home on the market. If sellers price it too high they risk scaring potential buyers away. If it's too low the sellers risks risk losing money. In order to price a home accurately, a "by owner" seller has to become educated about the local real estate market. Doing so will allow the seller to set an asking price that will compete favorably against other comparable homes.

But don't worry, it's easy to do if you just follow these simple steps:

1. Know the Competition: Visit real estate websites and drive through your local area to search for homes for sale that are similar to yours in size, number of bedrooms & bathrooms, lot size and square footage. Educate yourself about their asking prices and, especially for condos, calculate the price per square foot. Trulia.com will do most of this work for you and allows you to print out a list of comparable homes, but you'll also want to visit Realtor.com and ForSaleByOwner.com to get a more complete list of available homes on the market.

2. Visit Open Houses: Now that you know what's on the market, visit as many open houses as you can in order to find out how your home compares to others. Your goal is to learn as much about those homes as possible, such as upgrades and renovations to the kitchen, bathrooms and bedrooms.

3. Learn About Recently Sold Properties: Your next step in educating yourself about the local market is learning how much homes have sold for in the recent past. Home sale information is public information and can be found a number of ways. Your county clerk's office and/or local town hall can provide you with this data, but the Internet has made the task even easier. Trulia.com and Zillow.com each have a "Recently Sold" feature that will list all information about properties that have sold near any given address.

4. Get a Starting Point: For a simple, cost-effective way to get a ballpark range of how much your home is worth, consider getting an Automated Valuation Model (AVM). Similar to a real estate agent’s Comparative Market Analysis, an AVM will compare your home to similar nearby recently sold properties. The AVM won’t know if your home has an upgraded kitchen, finished basement or new roof, etc., but it will give you a suggested range to price your home. The AVM will also provide you with a list of nearby recently sold properties. ForSaleByOwner.com offers an AVM tool that is available here.

5. Evaluate Your Research: Now that you have information about homes currently on the market, data on recently sold properties and a price range, you have all the data you need to compare your home to others in your neighborhood and local area. Evaluate the information you have learned and ask yourself how your home stacks up with the others. Be honest. What condition is it in and how does in compare in location, features and aspects like a remodeled master bathroom?

6. Live in the Now: One of the biggest mistakes sellers are doing in today's market is pricing their home at price points of one, two or three years ago. The national median home price has dropped more than 15% in the past 12 months (in markets in CA, FL and AZ the median home price has fallen by more than 20 percent!), and those that price their home too long will just see it sit on the market. The homes that are selling today are those that are priced competitively to other homes are on the market, providing buyers with the sense that they are getting "a good deal."

7. Take Advantage of Being "For Sale By Owner": Owners of homes being sold through a real estate agent will have to fork over expensive commission fees equal to 5-6% of their home's sale price (or $18,000 for a $300,000 home). Or, in other words, the seller of that $300,000 home will only "pocket" $282,000. As a smart "for sale by owner" home seller, you won't have that expense and -- depending on how quickly you want to sell -- you have the unique ability to price your home anywhere in that $282,000-$300,000 range and still come out ahead financially compared to sellers of similar homes. You'll also be able to get more buyers as well because they'll be attracted to your home's asking price.

8. Set the Price: The time has come. You now have a complete picture of your real estate marketplace. Set the price using all the information you've learned through the above steps.

Congratulations! You have reached a major milestone in your home selling process. Not only have you arrived at an asking price, you have become an expert in your local real estate market. Prospective buyers will be impressed with your sense of knowledge and honest assessment of your home's value, and you'll be able to communicate about its strengths and weaknesses as compared to other homes in your neighborhood, town and area.

Tips on Buying a FSBO Home

noreply@blogger.com (Eric Mangan) — Wed, 20 May 2009 19:06:00 +0000

With “by owner” real listings accounting for approximately 20% of all homes on the market, ForSaleByOwner.com offers the following tips on how to buy a “by owner” home without using a real estate agent:

1. Determine Your Budget: The first step in any home buying process is determining how much you can afford. It’s important to not overextend yourself. There are many Internet-based mortgage calculators that will tell you how much you can afford based upon your income, debt level, mortgage rate and available cash for a down payment.

2. Get Pre-Approved: Now that you know the price range that you can afford, you’ll want to get pre-approved so that you can move forward in the home buying process. In today's market, buyers with a large down payment and a strong credit rating are more likely to obtain a mortgage. Getting a pre-approval letter is a quick process that will tell sellers that you are a serious buyer who can afford their home.

3. Search For Homes: This part is simple. Nearly 90% of all buyers use the Internet to search for a home, so ForSaleByOwner.com can help find your ideal home. Keep in mind that nearly 25% of all properties on the market are “by owner” listings, so remember these properties as you search for your next home.

4. Contact the Owner Directly: Unlike homes represented by an agent, there’s no middleman to interfere with you from getting directly in touch with the seller. Phone or email the seller and ask additional questions about the home that wasn’t on the online property description. If you’re still interested, agree on a mutually convenient time to tour the home.

5. Get a Valuation Report of the Home: Either before or after you see the home, get a valuation or property report to see how the home’s asking price compares to other recently sold homes within the neighborhood. It’s similar to a real estate agent’s CMA (comparative market analysis), and it will compare the home you’re considering with recent nearby home sales. Remember that such property reports and CMAs do not factor in any recent renovations -- such as kitchen or bathroom remodeling -- so the price of the home will be affected accordingly.

6. Hire an Attorney: For a few hundred dollars, a quality real estate attorney will provide you with all the advice and counsel you’ll need to go from the offer to closing. Use a local attorney who is knowledgeable about your town’s ordinances when it comes to real estate transactions, as well as your state’s disclosure laws.

7. Make an Offer: Now that you’ve seen the home firsthand and have a property valuation report, plus an attorney in your corner, you’re ready to present the seller with an offer. Your attorney should have the necessary offer forms or you can use ForSaleByOwner.com to get all of the state-specific paperwork that you’ll need.

8. Lock in Your Mortgage Rate: Assuming that the seller is entertaining your offer, you’ll want to shop around for the lowest mortgage rate. You should contact major lenders, visit local banks and contact mortgage brokers to price compare. Once you’ve settled on a lender and a mortgage product, they will lock you in that mortgage rate and give you a set amount of time to close the real estate transaction. A 30 day or 60 day “lock in” period is most common.

9. Get the Home Inspected: The next step is hiring a quality home inspector who will go through the home – from foundation to attic – to see what condition the home is in. A home inspector will cost $300-$600 and the inspection will take around 2 hours. You’ll get an inspection report outlining any mechanical or structural problems that the home might have.

Depending on the results on the inspection report, you might want to re-negotiate the purchase price. For example, the inspector might tell you that the furnace to be replaced. Negotiate with the seller to lower the price to compensate for any such expense.

10. Close the Deal: Your real estate attorney will handle most of the details at closing and, depending on your state and local area, will advise you on any special paperwork that needs to be completed between you and the seller. Your attorney and your mortgage lender will also assist you with coordinating the financing and providing payment to the seller. The seller will sign over the deed of the home and, voila, you’re the new homeowner!

Qualifying Buyers for a Mortgage

noreply@blogger.com (Eric Mangan) — Thu, 07 May 2009 17:16:00 +0000

One of the biggest headaches any home seller can experience is working with an interested buyer and negotiating a sales price, only to find days or weeks later that the buyer is unable to obtain a mortgage. That's precious time wasted and perhaps you even turned down offers from other interested parties.

According to the Mortgage Bankers Association, roughly half of all mortgage applications are being rejected. Lenders aren’t giving mortgages to just anyone nowadays. They’re turning down applicants who don’t have a high enough credit score or are not making a sufficient down payment.

As a seller, you’ll want to focus your attention on those who can afford your home and can get the necessary mortgage necessary. Ask interested buyers if they have a pre-approval letter from a mortgage lender. They might say that they are “pre-qualified,” which isn’t as strong as being pre-approved because the lender has not verified the buyer’s credit score, income, assets or liabilities. (click here for more about pre-qualified vs. pre-approved).

If the buyer is pre-approved, great! If not, before you spend any significant amount of time negotiating a sales price, ask that they take the important step of getting pre-approved. Not only will you be putting yourself in a situation to only work with those who are more likely to get a mortgage, you will be providing sound advice to buyers who will gain more confidence in buying a “for sale by owner” home without the help of a real estate agent.

Tell them to visit local banks that handle mortgages or contact any of the large home lenders, such as Wells Fargo or Bank of America, to get a pre-approval letter. Online lender Quicken Loans can even help buyers get fully approved for up to four months while they shop for a home.

Having your buyer get pre-approved is actually a very simple process and will benefit both you and the buyer.

Searching Tips and Tricks

noreply@blogger.com (Michael Altman) — Wed, 29 Apr 2009 15:20:00 +0000

We are always looking on ways to improve search. We get many suggestions regarding different terms and ways people would like to search through the listings. You requested and we listened. Here is a helpful list of ways to search through our listings that you might not have known about.

1. Searching by State/Province
You can easily search by State or Province on our site. Just type the State/Province in the location field and hit search. Note that some areas (i.e. New York City) have the same name for the city and state. If you type in just "New York" you will be shown the results for New York City. If you want to search the state, simply type "New York State" in the location field.

2. Open Houses
If you are planning to visit an area and want to see if there will be open houses in there, use the "Sort by Open House" functionality. This will place all of the properties that have an open house at the top of the results.

3. New Listings
Similar to the open house capabilities mentioned above, you can also sort by "New". This will place all new listings at the top of the search results.

Hopefully these tips and tricks will make finding your next home easy using ForSaleByOwner.com. If you have any comments or suggestions please let us know as we continuously strive to improve our search.

Home Prices Drop 18.6%

noreply@blogger.com (Eric Mangan) — Tue, 28 Apr 2009 18:11:00 +0000

Home prices declined in each of the 20 metropolitan areas tracked by the S&P/Case-Shiller home-price index.

The monthly index found that, from February 2008 to February 2009, prices dropped 18.6% across the 20 markets, with the biggest declines occurring in Phoenix (-35.2%), Las Vegas (-31.7%), San Francisco (-31%) and Miami (-29.5%). Markets with the smallest declines were Dallas (-4.5%), Denver (-5.7%) and Cleveland (-8.5%).

Visit this page for a complete table of the 20 cities tracked by S&P/Case-Shiller.

Competing Against Distressed Properties

noreply@blogger.com (Eric Mangan) — Mon, 27 Apr 2009 17:21:00 +0000

With distressed sales accounting for half of all home sales, many home sellers are finding that traditional sales are competing with discounted prices offered by foreclosed properties and short sales in their local area. To help home sellers attract buyers and compete against the discounted prices offered by distressed properties, ForSaleByOwner.com offers the following tips and advice:

Skip the Agent: Housing has lost more than $6 trillion in value since 2006, and hiring a real estate agent can cost as much as another 6 percent of the home's sales price. Selling “by owner” will allow the seller to save that money while also marketing the home at a competitive asking price. The National Association of Realtors also recently found that “by owner” sellers actually sell quicker and for closer to asking price than agent-represented sellers.

Price the Home Correctly: Home sellers need to price their home according to today’s market and not based on the high price that a neighbor might have received a few years ago. Using a combination of an online appraisal and a licensed home appraiser will help today’s seller price the home accurately based on recent sales activity.

Market the Home More Effectively: Traditional home sellers have access to more marketing channels than distressed properties, since not all distressed properties are found on the Multiple Listing Service (MLS), popular websites like Realtor.com or by owner websites like ForSaleByOwner.com. Traditional home sellers, including for sale by owner sellers, can market their properties with these resources to reach a larger audience of buyers than financially distressed homes. (info on getting your FSBO home on Realtor.com)

Keep the Home in Top Condition: Foreclosed homes are typically in disrepair and are in need of some repair or renovation due after having been left vacant. It can easily cost a new owner tens of thousands of dollars and months of work to get the home back in shape. A home seller should stage their home to give it the appearance of being in “move in” condition. The house, as well as all closets, should be kept clean and free of clutter to create the appearance of a more spacious home. Sellers can make their home stand out by doing things like landscaping the front yard to improve curb appeal, replacing worn-out carpets and old appliances, applying new paint in key interior rooms, and tackling other minor home improvement projects.

Offer a Quick Closing: An advantage of being a conventional home seller is being able to offer a quick closing, often an advantage for buyers who wish to move quickly. Distressed properties can take many months to reach a closing date. Sellers should be prepared to offer a 30-day closing date to attract buyer who wants to move quickly.

Qualify Interested Buyers: Nothing is more discouraging than spending weeks with a prospective buyer, only to learn that he or she is unable to obtain a mortgage. To avoid such situations, make sure that your buyer is pre-approved for the loan amount necessary to finance the purchase of your home.

Get Help with the Paperwork: For a couple of hundred dollars, a local real estate attorney or a title company will craft and review all contracts between you and the seller, and ensure that you are adhering to all state and local disclosure requirements. Remind buyers that while a real estate agent isn't needed to buy real estate, that they should get an attorney and/or title company to handle their paperwork.

$3.9 Billion... and Counting

noreply@blogger.com (Eric Mangan) — Wed, 22 Apr 2009 16:06:00 +0000

If you follow the real estate industry in any fashion, you probably know that last year the Federal government introduced a $7,500 tax credit for first-time home buyers and increased it to $8,000 for those who purchase their first home this year prior to December 1st.

According to the government's Interim Results of the 2009 Filing Season, $3.9 billion in first-time home buyer tax credits have been claimed on more than 567,000 tax returns. Incidentally, if you bought a your first home anytime after April 8, 2008 and have not claimed the tax credit, I'd recommend that you contact an accountant to determine you eligibility and file an amended return to get this free money. (you can also click here for eligibility requirements)

It will be interesting to see how these figures grow this year and into next year's tax season, as first-time home buyers account for roughly 40 percent of all homes sold. Last year there were 4.9 million homes sold and this year will be less but still probably north of 4 million. Not every first-time home buyers will be eligible for the tax credits -- due to the tax credits' income thresholds and because it applies only for purchases made in the fist 11 months of 2009 and roughly last 9 months of 2008.

But we can assume that since most first-time home buyers are under the income thresholds ($95K for individuals and $150K for joint filers) and will time their closings to occur prior to December 1st, it is easy to assume that the $3.9 billion in claimed tax credits is only the beginning.

Follow me on Twitter @ http://twitter.com/FSBO_Guy

Customers Ask, ForSaleByOwner.com Listens & Responds

noreply@blogger.com (Eric Mangan) — Mon, 20 Apr 2009 19:02:00 +0000

Unlike many "by owner" real estate websites, ForSaleByOwner.com offers live customer support and we answer questions about buying or selling a home. Here's a good question that was recently asked of us that is applicable to many home sellers:

Once I have accepted an offer, do I have to take my home off the market or can I wait until they are approved for their mortgage? - Pete in Gallup, New Mexico

And our response:

Pete,

Hindsight is always 20-20, it is recommended that sellers pre-approve interested buyers before any offer is submitted or accepted. That is especially true for today's market, where buyers are having a harder time getting financing due to stricter mortgage guidelines. The pre-approval process doesn't take that long, and can be even be done through an online lender like Quicken Loans.

In your situation, does the Offer to Purchase state anything about taking the home off the market? In New Mexico, like most other states, most real estate contracts stipulate that once an offer has been accepted, the seller must disclose to other parties who come forward that the property is "Under Contract" but that the seller is accepting "Backup Offers."

We recommend that sellers and buyers hire a real estate lawyer to handle the sales contract, and provide counsel on all state and local laws.

-------

Follow me on Twitter @ http://twitter.com/FSBO_Guy

Sold By ForSaleByOwner.com

noreply@blogger.com (ForSaleByOwner.com) — Fri, 17 Apr 2009 15:44:00 +0000

We're using today's blog post to ask recent ForSaleByOwner.com customers to share their tips on what they did to get their home sold in today's marketplace. Share any tips and pieces of advice so that others may learn from your successful experience and get their home sold while saving on commisison.

Below are some of the most frequently asked questions by FSBO sellers, so address one or more of these topics as you share your advice.

- How did you arrive at an asking price?
- Did you hold open houses?
- How did you know that interested buyers were qualified for a mortgage (did you ask for a pre-approval letter,etc)
- How did you handle negotiations with the buyer, etc?
- Who handled the legal work and other paperwork needed to complete the real estate transaction.
- How much did you save on commission?
- What other advice would you share?

Post your advice by clicking on the below "comments" link.

Introducing Our New "Find a Pro" Service

noreply@blogger.com (ForSaleByOwner.com) — Wed, 15 Apr 2009 14:54:00 +0000

You might have noticed a new tab along the banner of ForSaleByOwner.com. "Find a Pro" is our new resource to help sellers and buyers connect with with service providers to help them through the real estate process and become new homeowners. We're building up "Find a Pro" with experts in more than 20 professional categories, from title companies and real estate attorneys to electricians and general contractors.

We welcome professionals in all markets across the country to join our new service to market their services to our website's more than 50,000 daily visitors and active selling and buying community. Since our customers are independent sellers and buyers, this is a tremendous opportunity for service providers to gain new clients who to traditionally are steered to businesses favored by real estate agents.

A Harvard study found that new homeowners typically make improvements after they purchase a home and spend an average of 20-25 percent more on home projects than other households. The new ‘Find a Pro’ service helps businesses can attract new clients in the untapped "by owner" market, while providing valuable services that ForSaleByOwner.com customers need to sell, buy and maintain a home.

Real estate businesses and home improvement service providers can visit http://www.forsalebyowner.com/pro/new to learn more about the program and register as a participating provider.

Adding an MLS Listing to Your FSBO Strategy

noreply@blogger.com (Eric Mangan) — Thu, 09 Apr 2009 18:35:00 +0000

Once upon a time, only a real estate agent had access to the Multiple Listing Service (MLS), which is a database of homes currently on the market. The MLS is a great marketing tool for any seller who wants to generate more exposure for their home. As this video explains, ForSaleByOwner.com offers a service that will put a seller's home on the MLS.

Follow me on Twitter @ http://twitter.com/FSBO_Guy

Mortgage Rates Hit New Record Lows

noreply@blogger.com (Eric Mangan) — Fri, 03 Apr 2009 16:16:00 +0000

The Associated Press is reporting that interest rates on 30 year mortgages have fallen to their lowest level in the history of Freddie Mac tracking mortgage rates, which was back in 1971. The average rate on a 30-year fixed-rate mortgage was 4.78% this week, down from 4.85% the prior week and down more than a full percentage point from a year ago.

Using this mortgage calculator, we can see what this means for prospective home buyers, and those with higher mortgage rates who are considering refinancing. (If you do qualify for refinancing, by all means this is a great opportunity to do so.)

Let's use a $200,000 mortgage to see how today's low rates affect a monthly payment:

In this scenario, the cost of a monthly payment over the past year has dropped by more than $120. Over a year's time, that's $1,400+ in savings and, during the course of the 30 year loan, nearly $45,000.

It is anyone's guess how long today's low rates will last, and if it will help stimulate home buying activity. But there's a lot of favorable things happening for prospective buyers. We have record low mortgage rates, home prices that are at 2003 pricing levels, an $8,000 tax credit for first-time home buyers and a large inventory of available homes.

Follow me on Twitter @ http://twitter.com/FSBO_Guy

How to Hold a Successful Open House

noreply@blogger.com (ForSaleByOwner.com) — Thu, 02 Apr 2009 20:31:00 +0000

If properly done, holding an Open House is an effective way to generate more marketing exposure and attract interested buyers. But it’s not as simple as tidying up and inviting people to walk through your home.

To get the most out of your Open House, follow these tips:

Make Sure Your House Is Ready: Just because you put your house on the market doesn’t mean it’s ready for inspection by prospective homebuyers. Your house has only one chance to make a great impression, so make you do a thorough cleaning and make any minor home maintenance projects that would make it more aesthetically pleasing. For helping locating skilled professionals in any home improvement area, visit our free “Find a Pro” section.
Weekends are Best: Open Houses are traditionally held on non-holiday Sunday between 1:00 p.m. - 4:00 p.m. Let people know that you’re having an Open House by placing directional yard signs at key intersections. ForSaleByOwner.com also lets sellers schedule and advertise their Open House event on their online property ad, and allows buyers to search for properties having upcoming Open Houses.
Stage Your Home: People arrange their furniture and decorations based on their family’s lifestyle and tastes, but buyers are mostly attracted to homes that appear spacious. So you’ll want to stage your house so it makes a great first impression. Here’s more on how to stage a home.
Create a Sign-In Sheet: Create a simple sheet that asks people to provide their name, phone number and e-mail address.
Print Our Property Flyers: Print out plenty of copies of your ForSaleByOwner.com property flyer so that prospective buyers have information on the house and your contact info.
Offer Refreshments: One of the oldest tricks of the trade is baking cookies right before an Open House. It gives the house a pleasant aroma of baked goods and the treats give people a reason to stay and ask questions about the house, which will provide you with more opportunities to talk about its features.
Get Freshly Cut Flowers: Is there a better way to complement your home’s beauty with a vase of freshly cut flowers? Buy them from a local florist so that when people inevitably remark how nice they are, you can ease into a conversation about the terrific shops and restaurants located nearby.
Keep a Professional Mindset: Visitors may make comments about what they do not like about the home. As a “by owner” seller, you have to keep a professional mindset and understand that you are not selling your home but rather a house for others to decorate as they see fit.
Answer Questions About The House: You can never anticipate the wide range of questions that a prospective buyer might ask about the house and local community, but be prepared to answer questions about property taxes and the age of the roof, heating and cooling units, and major appliances. For questions that you don’t know the answer to, tell that you’ll call them with an answer.
Find Out If an Interested Party is Pre-Approved: Not every person who comes through your house will be interested. But for those who ask questions indicating that they might be, don’t be afraid to inquire if they are pre-approved for a mortgage. If they are not, recommend that they contact a financial lender or a mortgage broker to take the necessary steps. They can also begin the pre-approval process here.
Follow-Up: Within a day of your Open House, send a “Thank You” email to everyone who took the time to visit your house. Include a link to your ForSaleByOwner.com listing and ask if they had any questions regarding the house. A few days later, call up each person who visited your Open House and – in a friendly manner – ask if they are considering your house. If they are not, thank them for their time and ask if they have any feedback that might make the house attractive to other buyers. For those that are interested, offer them the opportunity to come back. Without getting your hopes up, be prepared by getting state-specific real estate forms needed to begin the formal sales process.

The $8,000 Home Buyer Tax Credit

noreply@blogger.com (Eric Mangan) — Wed, 25 Mar 2009 18:32:00 +0000

In an attempt to help stimulate the housing market, the Federal government recently enacted a new Home Buyer Tax Credit for first-time home buyers who purchase a principal residence. The tax credit is equal to 10% of a home’s purchase amount or $8,000, whichever is less.

A tax credit is direct dollar-for-dollar reduction in what a taxpayer owes in taxes. A person who owes $8,000 in income taxes and is eligible for the full $8,000 home buyer’s tax credit would owe nothing in federal taxes.

In order to qualify for the tax credit, the buyer has to meet the following general parameters:

Be a First-Time Home Buyer: The law defines this as a buyer who has not had ownership of any principal residence in the past three years.
Buy a Principal Residence: Any home that will be used as a principal place of residence will qualify, including condos, newly constructed homes and manufactured homes. The home will also have to be purchased by December 1, 2009. (the tax credit is also retroactive to purchases made on or after Jan. 1, 2009)
Meet Certain Income Thresholds: In order to qualify for the full $8,000 tax credit, a single taxpayer cannot have a modified adjusted gross income (MAGI) that is greater than $75,000. For married taxpayers who are filing a joint return, the MAGI limit is $150,000. For those with higher incomes than these thresholds, the tax credit is reduced and is phased out completely for single taxpayers with a MAGI of $95,000 or more, and for married taxpayers with a MAGI of $170,000 or higher.

The District of Columbia also offers a first-time home buyer tax credit, but a taxpayer can only choose this local tax credit or the Federal tax credit.

Home buyers are becoming more aware of this tax credit and are using it to minimize to offset the costs of a home’s down payment. Sellers should also be aware of this tax credit, so that they can relay this important information to prospective buyers.

For more information about the home buyer’s tax credit, ask your accountant or visit http://www.federalhousingtaxcredit.com.

Follow me on Twitter @ http://twitter.com/FSBO_Guy