Owners Real Estate Blog

Why are appraisals so low?

2012-06-12T15:48:00.001-07:00

Are appraisers the enemy? It sure seems like it to some buyers and sellers who need a sufficient appraisal value to qualify for a mortgage or support a selling price. In the last few years appraisers have taken a much more conservative approach to judging the market and assessing market direction and this often impacts what gets on the document delivered to the bank.

Here are a few things to keep in mind before you get an appraisal:

Appraisals are different than home inspections.
Buyers often treat these the same way but they have different purposes. Because an inspection educates buyers about the condition of the home, it's a useful tool to help appraisers understand what is working in a house. Make sure you review it carefully before your appraisal.

Will a tidy home increase an home's value?
Short answer, No. A clean home can increase buyers offers and final sale price, but there is no evidence it has any impact on appraisers. They are looking for specific items, working appliances, foundation issues, square footage and are use to looking past the clutter in most homes.

Should you only buy a home if it is appraised for the sale price?.
An appraisal does provide buyers with useful information but remember, the primary client is the lender. They need to be conservative to make sure the lender is not caught lending more than a house is worth.

If you plan to live in a house for a few years take the time to figure out what that is worth to you. Sunny windows, a good layout , the shady side of the street, all these things are often overlooked in appraisals. If a home fits your needs and offers unique personal value, you should be willing to pay for that up front, even if the bank doesn't value these aspects - you have to live with them, not your banker.

You can't impact appraisers' valuations.
Mostly true, with a couple exceptions. It is all about the comparable home sales in the neighborhood. It is important for you to help them understand how your home differs in terms of location, and features that are not always obvious. Help them understand what you know about specific comps.

Is it Time to Invest in Rental Property?

2012-01-18T16:06:00.000-08:00

Once statistic we follow closely here at Owners.com is the ratio of Rental cost to home ownership cost. More than any other yardstick this tells buyers if there is a market out there to support the money they are spending to buy a house. In markets like Southern California's inland empire, homes can be bought and rented out at a positive cash flow right away. Or if you decide to sell after buying, you know that there are renters who can afford to trade renting for buying.

One fun resource is Hotpads.com which compiles a rent / buy heat map allowing users to compare the rental markets to buying markets.

The Zillow recently chimed in with an article about what makes a good investment in real estate.

Where ever your market may be, it is a good idea to investigate rentals before you sell or buy. They often are the key to the current prices.

Big Money Backs Housing

2012-01-03T16:15:00.000-08:00

Are the big funds betting that housing is coming back in 2012? Recently firms including Caxton Associates LP, SAC Capital Advisers LP, Avenue Capital and Blackstone Group LP have been buying up housing related assets and even Goldman Sachs has turned around their opinion of the 2012 housing prospects as reported recently in the Wall Street Journal.

This interest comes on the heals of a NAR (the National Association of Realtors) report in December that said sales of previously occupied homes in the U.S. rose 4% in November from October, topping expectations. And inventory of previously owned homes listed for sale fell 5.8% to 2.58 million, the lowest level since May 2005.

If the market have not turned around many experts agree that they near the bottom: "The housing-price bottom is probably in sight," Goldman said in a December 15 report. Housing prices might decline by 3% next year before beginning a rise, Goldman says. The bank predicts gains of 30% over the following 10 years, not taking inflation into account."

For long term buyers this may be finally time to act.

5 Steps to Before You Sell in 2012

2011-12-15T14:31:00.000-08:00

With so many homes on the market, now is the time to plan your 2012 campaign to sell your home starting with these five key steps. So plan a couple hours before January 1st rolls around to get a head of the game for your 2012 sale.

1. Study the local market:
Who is your home right for? Your first step is to ask what is your neighborhood's best selling point? Is it a good area for a young couple or a retirement option for empty nesters or is it best for families with school age kids?

Think about the likely buyers and rewrite your listing copy with them in mind. No home is right for everyone and the more you can let your target audience know why this location fits their needs the better off you are.

2. Get to the point:
Don't bore buyers! Headlines should be five words long. Now that you can picture your possible buyers, write a headline that helps your house stand out:

3 Bedrooms near the Park
Family home in great neighborhood
Starter home with great kitchen

3. Don't forget about offline.
It may be old school but simple one page brochures still work. Use the template we offer on Owners then get ready to paper the town with your home for sale sheets. Try some non-traditional places including nearby apartment complexes. Renters in your neighborhood are a great pool of potential buyers who know the area and very low interest rates may be ready to buy.

4. Don't forget about the Realtors.
Even if you don't want to hire an agent to help you sell your home, remember, Realtors represent a lot of buyers. Create a brochure just for them that looks like the ones you find handed out at Tuesday showings, that is the day Realtors connect with each other to show new listings.

You may even sweeten the incentive by offering 3.5% to a Realtor who brings you a buyer. You'll stand out from the rest of the 3% offers and you'll still save big by not hiring a traditional seller's agent. The best way to accomplish this is to list your home on the MLS when you are ready to sell. But get prepared now!

5. Photos are very important.
Your lead photo is critical. Take great image of your home - try shooting it from ground level to help it stand out. You might even hire a professional photographer, or have a friend who is good with the camera help you see your home from a different perspective. All listings are built around images and investing time getting good shots will attract more buyers.

Planning pays off. Use this time to get prepared and you'll hit the ground running when the selling season comes around.

Buy a Home, Get a Visa?`

2011-10-24T13:03:00.000-07:00

Can foreign investment help revive the US housing market? That is the plan by Senators Charles Schumer (D-N.Y.) and Mike Lee (R-Utah). In a bill before congress foreign residents making a housing investment of $500,000 cash or more would be offered a residential visa for the US.

Given the relative weakness of the Dollar and lower housing prices, US residential real estate has continued to be popular with foreigners who have $82 billion invested, up 24% in the year ending March 2011 according to the National Association of Realtors.

Adding the value of a residential visa only sweetens the pot as an investment option to be consider. In a globally uncertain economic environment, the safety of long term US real estate may entice even more off shore money to find its way on to main street.

Should you list on Realtor.com or the MLS?

2011-10-11T15:38:00.000-07:00

Sellers know they need to reach as many buyers as possible. But what is the right way to do that? The most popular options are listing on Realtor.com - the massive national real estate website, or listing on their local MLS - But which to choose? The MLS and Realtor.com are similar but different; here is a short course on what they do, and who they are right for.

Realtor.com is best for sellers who absolutely only want to sell to buyers who are independent - those buyers who are not represented by an agent.

An MLS listing is best for sellers who are looking for any buyer, both independent as well as the 80% that are represented by an agent.

Here is why:

Realtor.com is a huge national website that primarily reaches individuals all across the country searching for homes. As the largest real estate website it reaches a very broad group of buyers. Most brokers do not search Realtor.com, instead they rely on their local MLS network to find homes for their clients. When you list on Realtor.com you are required to specify how much commission you are willing to pay a buyer’s agent. The standard is 3% but most FSBO minded sellers offer the minimum of 1% which guarantees that only individuals without agents will contact you. If you strike a deal with one of these buyers you will end up paying zero commission to agents.

No Commissions! I want that you say, but there is a catch: 4 out of 5 (or 80%) of all buyers are working with agents, so it well could be that the buyer who wants your home the most has an agent, do you really want to ignore them? Often it is much better to have more offers, or any offers and save 50% of the commission then have no offers at all.

This is where the MLS comes in. Agents look for homes for their clients exclusively on their local MLS. If your home does not show up on it you will not be seen by the majority of buyers. The bonus is when you list on the MLS you are automatically listed on Realtor.com also, so you still get access to all the independent buyers too.

The goal for most sellers is to get the best net offer, if that's one with a commission or one without it shouldn't matter, only how much money ultimately ends up in your pocket. If you're willing to offer up to 3% commission to attract buyers with brokers and expand your possible number of offers, then the MLS is the right choice.

Should an Agent Represent Both Parties?

2011-09-12T15:53:00.000-07:00

Dual Agency - or the situation of one agent representing both the buyer and seller - comes up now and then, often when an agent knows both parties or people are trying to save some money, but is it a good idea?

Can one agent properly represent the interests of both buyer and seller and stay impartial?

Our friends over at Imnan asked the question recently and got a range of opinions from the expected Agent answer that as long as you are honest about conflicts it is fine to the more direct, Buyers do not have the same interests as sellers and even if you represent yourself you are better off then using just one agent.

What do you think?

3 Selling Mistakes to Avoid

2011-04-27T16:28:00.000-07:00

Creating an online listing with curb appeal is step 1, but so is avoiding the 3 big mistakes most sellers make.

1. Assuming Buyers will find you once your home is listed.

Once your listing is up the real work begins, making sure it is seen by as many buyers as possible. There are lots of places online your listing can be seen; you need to show up on the biggest ones to ensure that you get the most visibility. These include Owners, Google, Realtor.com, your local MLS, MSN, Trulia, and even Craigslist. Buyers need to find you before they can make an offer.

2. Photos are worth a thousand words.

No question photos are critical, they catch buyers eye and show your house at its best. B photos can also over looked key advantages that only show up in the description.   Buyers want to make sure they are dealing with someone who will be easy, reasonable and professional. While most sellers know to describe their home well, they forget to sell themselves and let buyers know it is easy to contact them. So make sure to put buyers at easy by communicating you're happy to work with them, show the house any time and willing to assist in any way.

3. Assuming all brokers are bad.

Some FSBO sellers believe they should never dealing with any real estate agents. The truth is if you want to get the best price this is a foolish assumption. Sure there are some independent buyers out there will to make offers with no commission costs.

But maybe the right buyer for you, the one who really wants what your home offers, is represented by a broker. In this case this buyer is most willing to pay what you are asking.
This final myth is so powerful it is worth explaining another way, the goal for most sellers is to get the best price within a reasonable time frame.   How you get that price shouldn't matter, in other words calculate the net price you'll get after commissions and take the best offer. When you look at it this way it makes sense to get as many offers as possible including those from buyers with brokers to give you the most options in this market.

Don't Waste Your First Week on the Market

2011-03-31T16:33:00.000-07:00

The old adage "you have one chance to make a first impression" is never truer than in real estate. Buyers are well aware of time on market for homes they are looking at so it is important to get the widest exposure possible when you initially list your home to build excitement and draw as many offers as possible in your first round of bidding.

Too often sellers will list on one site one week, then on another site a couple weeks later, then list on the MLS three of four weeks later. This breaks up the market because your house appears for sale to different buyers at different times, and ultimately confused sellers about how long your house has been available.

The goal of every seller is to get multiple offers in the first round. The best way to increase your chances of this is to make sure that as many people as possible see your listing in the first few weeks before you accept your first round of offers. This means listing on Owners and using our network to get listed on our partner sites like MSN real estate, Trulia etc.

But the single most important place to list is on your local MLS. 80% of active local buyers are using an agent to find them homes. And all those agents belong to their local MLS and use it as their primary way of finding homes for these buyers.

You can formally notify these buyers and agents your home is for sale by adding your listing to the MLS. Remember the goal is to get multiple offers, by listing on the MLS through Owners.com you retain the right to sell to anyone, even independent buyers with no agent. But the more offers you have the better position you are in.

Finding Buyers and Avoiding Law Suits

2011-02-14T15:12:00.000-08:00

How much should you worry about lawsuits when you sell a home? Does hiring an agent protect you from getting sued?

These questions are in most buyers minds and the subject of a nifty article by our friends over at Inman yesterday.
Just remember: disclosure is essential. Hiring and agent will not protect you if you fail to disclose specific inspection reports or if you hide specific issues that you know about the house that could cause them trouble.

Most sellers think that part of staging and selling is putting a rosy glow on all your home's features. But if an earlier inspection report indicates a foundation needs repair and you choose not to share this report you open yourself up to possible risk, with or without an agent.

A few years ago, then the market was hot buyers were happier to sign "As Is" clauses in the purchase agreement, but no longer. Sure some buyers my choose to pass on a house that needs a new roof, but some will not. Either way you don't what to open yourself up to any risk.

How to disclose? That's the easy part, get a disclosure form and make sure you walk through you house and note down everything, if you have any questions - disclose. Then make sure to have your paperwork is reviewed before you submit it for final sale. Getting your paperwork reviewed by a legal professional or agent is easy and costs thousands less then hiring an full service agent.

To order disclosure forms or contract review to an Owners.com listing, simply call one of our selling experts at (800) 475-7738. They can explain your options and customize your listing to include worry free paperwork review - by a professional and send you all the forms you need for proper disclosure.

Online Curb Appeal

2011-01-19T13:20:00.000-08:00

Online listings have curb appeal, just like homes

The impression of your home happens online, and its "online curb appeal" will determine a buyer's interest in the first 3 seconds. Your online impact is equal to your curb appeal impact... In both instances, the way you package the product to entice a potential buyer is key

Follow these four steps to make sure your listing stands out:

Great Photos. A professional feel to images will determine how many people look at your listing. They should cover the unique selling points of your home: Yard, remodels, wood floors, storage - in a well lit setting.
Unique Description. What makes this house special, who is it right for? No home is for everyone, so take the time to think about your home, and then make sure your description is written for them.

"Keep in mind that you're selling a dream if someone can imagine his or her life unfolding in the images and descriptive text, you are one step closer to landing a successful showing," Flynn said.
Know your neighborhood! Your description should sell your neighborhood as well as your home: location to school, parks, highway access, everything a buyer needs to know to choose your location over other homes listed.
Think about your price based on searching. Most people search by lowest price first and put on a price cap at even numbers like $350,000 or $400,000. By pricing at $349,000 you'll show up more often.

You listing is a living page, feel free to edit and change it to improve it. Ask your friends and professional contacts to give you honest feedback and update your listing. Consider hiring a professional to photograph your home.

Check out the competition. Spend a few minutes searching for homes in your area and see hour your images and description stacks up. Buyers are comparing your listing to the others they see online, make sure yours is the most exciting and most direct.

All this can make your home listing pop off the page and draw buyers interest from the beginning.

Can Rising Mortgage Rates help the Market?

2010-12-14T17:30:00.000-08:00

Mortgage rates are at historic lows, so it must be a buyers paradise right? Not so fast says an interesting piece from Rick Newman at US News and World Report. "Rising mortgage rates will scare off some buyers, such as bottom fishers or those who can only marginally afford to buy. But they could motivate others who might feel a newfound sense of urgency to lock in rates that are still remarkably low."

With so much uncertainty in the last few months, combined with a general feeling that rates have to start rising soon we think this is a pretty smart take on how buyers will behave. There have been a lot of buyers on the sidelines paralyzed by uncertainty and nothing gets people motivated than the fear that prices are rising.

For sellers this means moving fast to get ready for the January selling season when home buyer come into the year with a new sense of urgency.

The Truth About Real Estate

2010-10-29T16:39:00.000-07:00

Do real estate brokers have your best economic interests at heart?

With a new movie coming out, the freakonomics guys took a look at the underlying forces that shape how homes are sold. If you don't know them, Steven D. Levitt, a professor of economics at the University of Chicago and Stephen J. Dubner, an author and journalist who lives in New York City write the popular Freakonomic blog in the New York Times based on the best selling book.

Their mission is to uncover the hidden side of daily life based on economic forces and motivations. Everything from NFL advertising to this great video on what motivates real estate agents and if they are really interested in getting you the best price for your home.

Like so many underlying truths this makes immediate sense once you think about it and about your own experiences with agents. Best of all these guys are fun to watch.

3 myths about selling online

2010-10-07T16:59:00.000-07:00

Knowing how to create an online listing with curb appeal is critical, but so is avoiding the 3 big mistakes most sellers make...

Online Real Estate Myth #1: List it and the buyers will come.

Think of your listing like a TV show, sure it may be on the air but without promotion no one will see it and you'll get canceled before the first season is over. There are lots of places online your listing can be seen, make sure you show up on the biggest ones to ensure that you get the most visibility. These include Owners, Google, Realtor.com, your local MLS, MSN, Trulia, and even Craigslist. If you don't show up you cannot sell.

Online Real Estate Myth #2: Just add photos and you're done

No question photos are critical. They catch buyers eye and show your house at its best, but the most over looked part of an online listing is the description.   It buyers are planning to buy from an Owner; they want to make sure they are dealing with someone who will be easy, reasonable and professional. - While most sellers know to describe their home well, they forget to sell themselves and let buyers know it is easy to contact them. So make sure to put buyers at easy by communicating you're happy to work with them, show the house any time and willing to assist in any way.

Myth #3: Avoid all brokers

Some "By Owner" sellers get it in their head that if they are going to sell by owner they will avoid dealing with any real estate agents. The truth is if you want to sell for the best price this is a foolish assumption. Sure there are some possible independent buyers out there and any offer they make will be free of commissions, but maybe the right buyer for you, the one who really wants what your home offers, is represented by a broker. In this case this buyer is most willing to pay what you are asking.
This final myth is so powerful it is worth explaining another way, the goal for most sellers is to get the best price within a reasonable time frame.   How you get that price shouldn't matter, in other words calculate the net price you'll get after commissions and take the best offer. When you look at it this way it makes sense to get as many offers as possible including those from buyers with brokers to give you the most options in this market.

July Sales Inch Up

2010-09-02T16:05:00.000-07:00

Pending home sales were up 5.2% in July based on a report by the National Association of Realtors as reported by Inman news today. May and June had record lows following the end of the federal homebuyer tax credit.

"Home sales will remain soft in the months ahead, but improved affordability conditions should help with a recovery," said Lawrence Yun, NAR's chief economist, in a statement. "But the recovery looks to be a long process. For those who bought at or near the peak several years ago, particularly in markets experiencing big bubbles, it may take over a decade to fully recover lost equity."

The July rebound “points to some stabilization in existing home sales at very low levels in August,” Yelena Shulyatyeva, an economist at BNP Paribas in New York, said in an e-mail. “The housing market outlook remains highly uncertain in light of mounting inventories from foreclosed and vacant properties”, according to Bloomberg news.

Can market statistics help you sell?

2010-08-09T15:01:00.000-07:00

You are bombarded with real estate market stats every month, but how can they help you sell a home in your local market? Here is our 3 minute guide.

This week two important market reports came out from our friends at Zillow. First prices were down in most markets year over year ( Zillow Reports Continued Drop In Home Values ) and second, Fewer Mortgages were underwater.

These two seemingly contrary statistics can make it hard to know if you should lower your price quickly or hold steady, and wait for a turn around. While every market is different, there is a simple strategy for understanding housing statistics and using them to help you sell your home.

Knowing where to look is the start, in addition to Zillow, NAR has up to date stats you can find here. Take a little time to look over the latest reports from NAR and Zillow to get familiar with what the current reports are saying. As the articles above indicate for every negative piece of data there are positive ones.

The most important step is to look at the data and ask yourself how this impacts your bottom line. If houses are on the market an average of 7 months in your region, are you prepared to wait that long, even if prices are falling? Think if you were a buyer and read these reports, what would you remember?

The next step is to think of the positive statistics that counter each of the reports buyers may bring up, for example: Buyer: Prices are falling year over year and we could get a better deal in 3 months. Your response: True, but the underling stats show that there are fewer mortgages underwater and this is leading to firmer prices in most markets. With the markets at bottom, things can turn around quickly.

In short the key to selling with statistics is to be confident in responding with the reports that work for your interest. Then you can bring the focus of negotiations with buyers back to what is important: what is unique about your home and how it can meet their needs.

7 Realtor tricks to avoid!

2010-07-20T17:16:00.000-07:00

Realtor's are professionals, but sometimes like any busy person they can fall into using shortcuts and tricks to get a home listed quickly. Here are common 7 shortcuts to avoid.

1. No fuzzy photos. Hire a real photographer. You are selling your biggest asset, make sure it looks great. There is no way to over-estimate how important photos are to people searching for a home. A couple hours of a professional's time is well worth the price it to drive real interest in your online listings. Buyers know that good photographs help them not waste time and are put out by a reliable professional seller. - As a bonus you can use the pictures in your fliers also!

2. Stop the Blah blah blah. Don't write marketing jargon and buzz about your home. People looking for homes have read hundreds of listings. The ones that stand out tell the facts clearly and offer something honest and unique about the home.

3. Don't get creative about the neighborhood. If your home is in near a great neighborhood say that, but don't use fake terms like "adjacent" or worse lie about where your home is. Buyers will have to know the truth eventually

4. Be honest about the details. Both square footage and bedrooms are critical numbers buyers what to know. If you have an illegal bonus room, mention it, but don't turn a 2 bedroom cottage into a 4 bedroom ranch house with smoke and dreams.

5. Show pictures of what you mention in your description. If you have a pool, show it, make sure it's there. One shot of each bedroom is a minimum. Your pictures and description have to match up to make buyers feel at ease.

6. Lead with your best shot of the outside of the house. View pictures as the first shot on a listing tells buyers that the home is either ugly or even worse forgettable. You want them to remember your house when they come back to find it online and show others

7. Write a full description. If you are going to list online don't waste your time if all you have to say is "Great Home for Young Family". This feels like an automated listing program placed your home online and that there is no one to talk to on the other end. Use your advantage as a by owner seller and let them know some one cared enough to say something about the home they are going to buy.

Is the White House for Sale?

2010-06-15T14:47:00.000-07:00

Want to own the most famous house in the world for the bargain price of $182 per sq ft? With 1600 Pennsylvania Ave - The White House - listed For Sale By Owner, now might be your chance!

NBC, CBS and, of course, Gawker all reported today that the White House was posted "For Sale By Owner" around the web on popular real estate sites such as Redfin, Trulia and Owners.com. The numbers are impressive: 55,000 sq. ft, 5 bedrooms, state of the art live/work space and complete with bowling alley! One problem might be that the sale would come as a surprise to the current occupants. It was to all of us at Owners.com... well maybe not a complete surprise.

Last week, in an effort to help home sellers write better descriptions and understand how to create a great listing using photos and details to paint a picture of their home, we created a few "sample" listings. We made sure to add in all the things that attract buyers including a good price and plenty of bright photos. And what better example to use than a home everyone knows?

Unfortunately our sample listing (http://www.1600pennsylvaniaavenue.net/) which we created as a fun educational tool got picked up by our partners all around the net. While we did receive a number of generous offers, including one from a charming gentleman who offered us $10 million in Chinese trinkets, another person claiming to represent BP and one from an alleged Washington lobbyist who was willing to put the whole purchase price on his platinum Amex card, we had to decline them all and remind everyone to take the lesson that a good description and a photo of Richard Nixon in a snazzy bowling shirt can take your home listing a long way.

A Tale of Two Markets

2010-05-28T14:11:00.000-07:00

In the last couple months we have been noticing a split in markets and how quickly homes have been selling. Up until the end of last year virtually every market was in the doldrums with homes taking a couple months to a year to sell. But lately in some areas things are picking up.

About 50% of our home sellers are indicating they have received multiple offers within a few weeks, then about a 25% are indicating they are still not getting many offers. While this information is far from a formal study it does represent thousands of sellers across the country and supports a number of recent studies we have seen that some markets have shifted quickly and some are still moving slowly.

What does this mean to individual sellers? Know your market and price accordingly.

Take the time to look for the most recent comps and ask your self if they support your sales value.
If your market is still slow be patient, consider keeping your home on the MLS for a full year, and make sure to update your listing every couple weeks to keep it fresh.
If your market is picking up, smile, relax and get be willing to wait an extra week or two for additional offers.

Every market will eventually turn around, so take heart and keep an eye on your neighborhood.

Want to Ask Owners a Question?

2010-04-29T15:32:00.000-07:00

The Owners.com FSBO Forum is back in action. After a full software update it should be easier to use than ever.

Every day we check in to answer questions and give you our feedback. So if you have a question about any part of the selling process we'll do our best to answer based on our experience with over 1 million FSBO sellers.

In addition to new questions, the FSBO Forum has a wealth of ideas from FSBO sellers over the years and can provide new ideas and insights on how to prepare a home, talk to buyers, close a sale and complete escrow.

Some of the top threads over the years are:
Creative Marketing Strategies
Home Pricing Strategies
Difficult Question From Buyers

5 Home Appraisal Myths

2010-03-23T17:38:00.000-07:00

What is your home worth? Get an expert opinion, that will tell you the answer right? Well maybe. We expose the top 5 myths about appraisals and what they tell you.

Myth 1. An appraisal is the same as a home inspection.
Buyers often treat these the same way but they have different purposes. An appraisal delivers an opinion to the mortgage company about the value of a home; this is a great tool for pricing a home based on comps and the market. An inspection educates the buyers about the condition of the home, it's building history and alerts them to repairs possible costs.

Myth 2. A buyer should not buy a house for more than the appraisal.
While an appraisal provides very useful information about a property to the buyer the primary client is the lender. An appraiser's job is to protect the lender. They need to be conservative to make sure the lender is not caught lending more than a house is worth.

Buyers who plan to live in a house should consider what they are willing to pay for. Sunny windows, a good layout , the shady side of the street, all these things are often overlooked in appraisals. If a home fits your needs and offers unique personal value, you should be willing to pay for that up front, even if the bank doesn't value these aspects - you have to live with them, not your banker.

Myth 3. A clean home increase an home's value.
A clean home has been proven time and again to increase buyers offers and final sale price, but there is no evidence it has any impact on appraisers. These professionals are looking for specific items, working appliances, foundation issues, square footage. They are use to looking past the clutter in most homes to see the items lenders value.

Myth 4. Appraisers use a formula to calculate value and you have no effect on them.
While it is true that appraisers compare your home to other comps based on specific numbers it is important for you to help them understand how your home differs in terms of location, and features that are not always obvious. Help them understand what you know about specific comps.

Myth 5. Appraisers do not have to disclose home defects to buyers
If the buyer is going for an FHA backed loan the appraiser is obligated to disclose any physical problems that are visible to the buyer. But they are under no obligation to do this for non FHA loans. So remember to ask for an inspection.

Where is your market heading?

2010-02-23T13:34:00.000-08:00

Home price trends and home inventory are important statistics for every buyer and seller. All too often this data is hard to find or available only to agents. We recently found a site that presents it in a simple, direct manner.

At Owner.com we believe data is critical for buyers and FSBO sellers working without a Realtor. All to often it can take up all day sorting through Zillow or other popular real estate sites to find the information you need: Where is your market moving, are prices up or down, and what is happening to inventory.

Luckily we found a great website that offers a direct simple way to track your market.
Check out Housing Tracker (housingtracker.net). Clear data, clearly presented - that works for us!

How to Buy from an FSBO Seller

2010-02-16T15:31:00.000-08:00

Some buyers feel nervous talking to and negotiating with a "By Owner" seller. But remember FSBO sellers are ordinary people like the rest of us, they want to sell their home and are happy to talk to you. As a buyer you can make the process easier by taking care of these five details before you call a seller.

1. Get pre-qualified. It is more important than ever in this market to talk to your bank or mortgage broker and make sure you will qualify for a the value of the home you want. Put yourself in the seller's shoes - they don't know you or your financial situation. By putting them at easy with a solid pre-qualification you will improve your standing as a buyer and make negotiations less stressful for both parties. Check what local mortgage rates are currently for your area.

2. Decide if you are interested. It sounds simple but often buyers don't know anything about a house before they start talking with a seller. This can increase uncertainty which makes it hard for both sides. Take the time to look at the homes full listing online and look at comparable listings to determine if you think the price is fair or in the ball park.

3. Know your market. Is the seller offering a bargain? Have they over priced? These are all questions you can get a handle on before talking to them by reviewing comparable in the neighborhood. One way to find out is to check comparable home prices have sold for recently.

4. When you contact the seller, relax. Even though it is a big purchase it is important to be yourself when talking to the seller. They are probably as anxious as you and by knowing what your want and being calm you can put them at ease. Remember when you first talk to them to cover the basics, you name, phone number so they can find you again then set up a time to see the house. Ask if you can come back a second time, you'll get to know the house better and the sellers also.

5. Make an offer. Do it directly yourself, or hire an agent to do it for you. When you negotiate the price and terms, remember, always keep it civil. Once you've come to a basic agreement, determine how the paperwork is going to be handled. Perhaps you'll want your attorney or agent to do it. Or maybe the sellers have already made arrangements with someone they know. Open escrow together, and go through the closing procedure.

It's not that hard. And, you could save a bundle if you've done your homework!"

For more on buying or selling a home including great tips from Robert Irwin, the leading real estate writer in America, visit the Owners article library.

Mortgage Rates Steady in 2010?

2010-02-01T12:23:00.000-08:00

Mortgage rates will stay between 5% and 6% in 2010. Wishful thinking? Not according to the head of Freddie Mac Charles Haldeman.

The US housing market has appeared to reach the bottom, and interest rates on 30 year mortgages will stay between 5% and 6% in 2010, were the predictions by the Mr Halderman, the leader of Freddie Mac - the nation's second largest guarantor of residential mortgages.

Now we know no one is able to predict the future, especially in real estate. But we have noticed in the last year officials at the major housing institutions have been particularly cautious in making statements that can come back to haunt them, with congress and the press ready to call them on any undue optimism. So when we saw his speech to the Detroit Economic Club his assessment of the current housing market we felt a wave of encouragement, the kind we haven't felt in a while.

"The numbers will always bounce around some, but from home sales to house prices, it appears that nationally we may at last be approaching a bottom."

"The big downside risk to all this is a large wave of homes now in foreclosure potentially hitting the market at prices that are destructive."

Both of Haldeman's statements are cautious but reflect the data and trends of the last few months.

Keep an eye on your local mortgage rates with Owners.com's Mortgage finder.

10 Easy Steps to Prepare a Home for Sale

2010-01-19T12:37:00.000-08:00

Fixing a few simple things before you sell benefits everyone. Sellers feel they put their best foot forward and buyers feel a home is ready to move into. Take a week to take care of these 10 simple fixes.

10. Be ruthless about odors.
Smells don't sell and buyers might think indicate real problems that need to be fixed. Remove odor from kitchens and carpets with a deep cleaning. Any signs of mold or grime should be removed not just "de-oderized" with a scented candle or two. A clean house is one of the most important things you can do to make your home feel ready to move in. It helps buyers and helps you sell.

9. Open your doors.
Make sure that all doors, cabinets and drawers open all the way without bumping into anything or sticking. Clean out the entry closet and put only a few hangers so that the buyer can visualize winter coats. This is a simple way of forcing you to de-clutter rooms and allow buyers to check out everything they need to see.

8. Clean and fix knobs and handles.
Nothing says "hello" like a shiny front door knob. But buyers will see and value working clean door handles throughout the house. Don't overlook sink, tub and shower faucets, expect buyers to test them.

7. Let the view show through.
Make sure your windows are spotless and bushes are trimmed so viewer can see in and out. If a window looks onto an unsightly yard or neighbor's home, place a screen in front of it or cover it with a opaque shade to let light in but hide the mess.

6. Hide unique decor.
Unique possessions and personal color choices are what make a home your own. But they can kill a sale. Pick the pieces that are most neutral and create simple room designs. Put away most of your art and photos (exceptions are listed number 5). Keep telling yourself you are designing for The Pottery Barn and you'll get the right note.

5. Personal photos - an exception.
Most advice says put away anything personal, but a few well chosen photos of you and your family enjoying the house and yard can convey the possibilities of living in the home. If it is Winter a make sure to have some pictures, in frames, of the yard and garden in Spring or Summer, maybe even a family barbecue in the summer. A photo of a Christmas tree in the living room can set the stage for buyers new memories.

4. Shine a light.
Increase the wattage of the light bulbs all through your house, and while your at it make sure all the shades are washed inside and out.

3. Counter space rules the kitchen.
Even a small kitchen looks better when all the counters are clear. Put away all the appliances, bottles, jars and baskets. One basket of colorful fruit should be enough.

2. Steam clean carpets.
Few of us see the little paths and dirt that accumulate on carpets in daily life, except buyers, they see all! When someone walks in a home for the first time they are looking at the floor to see where they are stepping and every stain will show. Rent a steam cleaner for a weekend and go over every carpet a couple times. You might even consider buying new carpet for the entry hall, it's a small space where a little expense can make a big impact.

1. Have a garage sale!
The best tip is to start out your sale by getting rid of things you don't need. A garage sale works on so many levels: you de-clutter your home, save on moving costs and put some cash in your pocket to make the small changes you need to make your house shine.