Finding ways to save money is on everybody’s mind right now. Consumers are wary about spending at a time when economic growth has slowed to a halt. For buyers looking for a home, using a REALTOR® who can help navigate the short sale or foreclosure process is saving them money in the long run. Some sellers, however, try to sell on their own, hoping to save money on the commission. Does this strategy really pay off?

Lee Dworshak wonders if homeowners can really handle a for sale by owner (FSBO):

“FSBOs tell us the biggest problem they have is their homes suffer from a lack of exposure. Most of them paid several hundred dollars for a weekend classified ad in the daily paper. They also bought a “For Sale By Owner” yard sign. But unless the market was sizzling, few got any buyers through the door. Why? The fact is, most legitimate buyers work with real estate agents! And real estate agents research the Multiple Listings Service to find homes for the buyers. Unless you are using a real estate agent, you’re not in the Multiple Listing Service. This exposure alone is worth a lot of money. The other problem FSBOs have is the buyers who are not working with real estate agents are usually not the serious buyers. People who are ready to buy use agents because they don’t have to pay their agent a fee, and agents have the resources buyers need to get good homes at good prices. Unfortunately, most of the buyers that are left over are merely ‘tire kickers’ and ‘low-ballers.’”

The value a Realtor brings to a sale is commonly undervalued untill a homeowner tries to market, negotiate, and draw up papework by themselves. While it is understandable a seller would want to save money, it’s likely they will realize that by trying to save money in the short term, they have had to invest countless hours learning how to navigate a complicated process on their own.

Click through to read Lee Dworshak’s full post.

Sign up for a free Featured Blog on Realtor.com today.

Related posts:

1. Selling Home Yourself Doesn’t Always Save Money Many home sellers believe that if they market their...
2. Should First Time Buyers Consider Short Sale Property? By Dan Rochon, Guest Writer, Keller Williams Realty, Alexandria, VA...

Related posts brought to you by Yet Another Related Posts Plugin.

First-time buyers purchasing in desirable areas are choosing the low-maintenance lifestyle of condominiums. Condos let a buyer make a well-priced investment, while getting to take advantage of shared amenities like pools and gym rooms. In major cities where condo owners only use their condos for vacation or temporary business use, they can rent out the space to visitors. This arrangement is called a condotel– being one part condo, one part full service hotel. However, getting financing on a property like this can be tricky due to the uncommon usage.

Jeffrey Gilliam explains more about condotels:

“So what makes a condo-tel? Actually, any number of things. I have heard many times that a project is not a condo-tel because it doesn’t have an on-site rental desk. While an on-site rental desk would classify a project as a condo-tel the absence of one does not make it immune. (1) If they have a website that advertises rentals, it is a condo-tel. (2) If an owner is required to rent per the bylaws, it is a condo-tel. (3) If it has daily maid service, it is a condo-tel. So if a project doesn’t have any of these things, then it is okay with Fannie and Freddie and is fixed-rate financing available? Not necessarily. There is another classification we use for condominiums and this is the term ‘warrantable.’ Warrantable refers to whether it can be warranted as sellable to Fannie or Freddie meaning it meets their criteria for an acceptable condominium project. So what makes a condominium ‘non-warrantable’?”

A condotel is a perfect way for a condo owner to leverage the management of their property to bring in income when they are away. With all of the amenities luxury condos are being built with, they make the perfect location for a temporary stay. As Gilliam points out, the issues surrounding these properties make financing difficult. While there are banks willing to take the risk of financing a condotel, they are doing it with a slight premium to a 30-year fixed-rate mortgage.

Click through to read Jeffrey Gilliam’s full post.

Sign up for a free Featured Blog on Realtor.com today.

No related posts.

Related posts brought to you by Yet Another Related Posts Plugin.

First-time buyers purchasing in desirable areas are choosing the low-maintenance lifestyle of condominiums. Condos let a buyer make a well-priced investment, while getting to take advantage of shared amenities like pools and gym rooms. In major cities where condo owners only use their condos for vacation or temporary business use, they can rent out the space to visitors. This arrangement is called a condotel– being one part condo, one part full service hotel. However, getting financing on a property like this can be tricky due to the uncommon usage.

Jeffrey Gilliam explains more about condotels:

“So what makes a condo-tel? Actually, any number of things. I have heard many times that a project is not a condo-tel because it doesn’t have an on-site rental desk. While an on-site rental desk would classify a project as a condo-tel the absence of one does not make it immune. (1) If they have a website that advertises rentals, it is a condo-tel. (2) If an owner is required to rent per the bylaws, it is a condo-tel. (3) If it has daily maid service, it is a condo-tel. So if a project doesn’t have any of these things, then it is okay with Fannie and Freddie and is fixed-rate financing available? Not necessarily. There is another classification we use for condominiums and this is the term ‘warrantable.’ Warrantable refers to whether it can be warranted as sellable to Fannie or Freddie meaning it meets their criteria for an acceptable condominium project. So what makes a condominium ‘non-warrantable’?”

A condotel is a perfect way for a condo owner to leverage the management of their property to bring in income when they are away. With all of the amenities luxury condos are being built with, they make the perfect location for a temporary stay. As Gilliam points out, the issues surrounding these properties make financing difficult. While there are banks willing to take the risk of financing a condotel, they are doing it with a slight premium to a 30-year fixed-rate mortgage.

Click through to read Jeffrey Gilliam’s full post.

Sign up for a free Featured Blog on Realtor.com today.

No related posts.

Related posts brought to you by Yet Another Related Posts Plugin.

The fiduciary responsibilities of an agent to a seller obligates the agent to act in the selle’rs best interest at all times. This role covers a wide range of duties, but the main theme centers around the agent doing everything possible to gain an advantage for the seller, whether that be over the buyer or competing properties. On the other side of the coin are the responsibilities of the seller. While sellers aren’t obligated by a code of ethics or fiduciary duties, there are ways a seller can be proactive to help sell their own home.

Matt Malouf gives sellers some tips to help sellers be more proactive:

“Think like a team player. Yes, your real estate agent is the professional, but that doesn’t mean you aren’t an integral part of it all. Without you making that decision to sell your home, the transaction couldn’t take place! Be sure to ask questions. Ask about the marketing plan and brainstorm with your real estate agent on any additional ideas you might have. Ask how you can help with the whole process. Talk to your neighbors. Statistics consistently show that your neighbors living right next to you are your best advertisements. Your neighbors can be some of the best word of mouth marketing you get. Wouldn’t you love to be able to pick out who lives next door? Well, so would your neighbors. Yes, your neighbors will see when the sales sign shows up in your front yard. But unless you are close friends with these people, they have never been in your home.”

There are countless stories from REALTORS® about homeowners who have hindered, not helped, the sale of their own home. Whether they have been inflexible with showings or the price, it sometimes seems as if sellers don’t really want to sell their home. Sellers who are proactive will take Malouf’s advice to place themselves in the shoes of a buyer and fix any issues before they occur.

Click through to read Matt Malouf’s next blog.

Sign up for a free Featured Blog on Realtor.com today.

No related posts.

Related posts brought to you by Yet Another Related Posts Plugin.

The list of new and innovative green building materials keeps growing as homeowners increasely demand earth-friendly, sustainable products. Many of these ingenious products are made from recycled everyday items and others are old items that have been remade with greener standards. These amazing advances in technology are helping builders build better homes while keeping utility bills lower for those that buy them.

Carol Chiafalo provides us with a list of great new green products for your home:

“I am a REALTOR® and I am a builder in the ‘green’ city of Decatur, Georgia.  I have no problem spending a few extra bucks today on a furnace system that will heat and cool a home for years to come without using nearly as much fuel as the older, inefficient systems. I love the new insulation products that keep conditioned air on the inside and raw elements on the outside. One insulation product is made from shredded newspaper and another uses blue jeans lint. What could be better re-purposing than that? (There is even clothing fabric made from bamboo! Wow, what next? But that is another topic.) Windows have seen a new light, too. Self-cleaning double- and triple-glass panes filled with Krypton and treated with reflective coatings are the greatest things since sliced bread.”

The movement to make greener homes and greener lives has led to an abundance of creative and technologically-advanced alternatives to the old standards. Remember, buying green products are an investment. While these products generally cost more initially, their durability and efficiency will pay for themselves over time.

Click through to read Carol Chiofalo’s full post.

Sign up for a free Featured Blog on Realtor.com today.

No related posts.

Related posts brought to you by Yet Another Related Posts Plugin.

It’s easy to understand why a seller may be inclined to try a For Sale By Owner (FSBO). Home values have slid, making the prospect of saving the commission seem more attractive. FSBO sites online are easy to find and uploading a picture or two is common knowledge these days. But without really understanding the local market data, like median home values and neighborhood trends, how would a seller know if they were getting a good deal or just something that looks like one?

Christina Buffa crunches some numbers and explains why a FSBO may be the first step in getting a bad deal:

“I respect that with everything that is going on in today’s market, it might seem a little better to put your home up for sale, save the 6 percent and go it alone. Well, I don’t know that I agree…and maybe after reading this you will see the truth about local FSBO companies that claim to help you sell your home for less money, and look to a true professional to help you sell your home. Recent statistics from the National Association of REALTORS® 2008 Profile of Home Buyers and Sellers Reports show that the median selling price as a percentage of the asking price was 97 percent for FSBO, and for agent-assisted sales was 96 percent. Wow! At first look that sounds fantastic, FSBO got more for their home than the agent assisted sales. Not so fast my friends, look closer…The median selling price on FSBO Home was $150,100 and the median sales price of agent assisted was $211,000.”

Buffa throws a wrench in the FSBO argument by pointing out that the seller isn’t saving money by selling themselves. However, even if there were savings associated with a FSBO, it would not be worth navigating this market alone. Using an experienced REALTOR® will not only improve your chances of getting the price you want, but it will also guarantee that your interests are represented by a professional during the transaction.

Click through to read the rest of Christina Buffa’s blog.

Sign up for a free Featured Blog on Realtor.com today.

Related posts:

1. Selling Home Yourself Doesn’t Always Save Money Many home sellers believe that if they market their...
2. Christina Aguilera Selling House in Beverly Hills (PHOTOS) Christina Aguilera has put her Beverly Hills house on...
3. Real Estate is Hyper-Local There is an old adage that says “All real...

Related posts brought to you by Yet Another Related Posts Plugin.

Recent legislation under the Truth In Lending Act has made home appraisals more consistent with actual home values compared to the low-ball appraisals that many homeowners were receiving. However, even with an appraised amount more consistent with the homeowners wishes, sellers are unlikely to get their asking price if it is not in line with the market trend for their area. Whether a seller has determined the price of their home from a private appraisal or from the county’s property tax appraisal department, when it comes time to sell, market value is the only value that matters.

Kyle Eastland explains what the real value of a home is:

“In Real Estate, you have three basic values: an appraised value of the home, the county tax-appraisal value and then the market value of the home. All are important, but in the end, only one truly matters. I hear all the time, ‘My house was appraised for this,’ or ’I’m not paying that much since the tax value is less.’ When buying or selling a home, the only value you have in the home is what someone else is willing to pay for it! Let’s break them down. The appraised value of your home is determined by a licensed home appraiser, based on his judgement, experience and comparable sales in the area. This is usually (hopefully) a number slightly higher than what the house is selling for. If the house does not appraise for at least the sales price or more, the buyer will have to come up with the extra money, the seller will have to come down on the price, the buyer may lose all financing, or the seller can put it back on the market and hope to attract a  different buyer. This seems to rarely happen in Waco, but it has happened to me twice in my short-but-not-long Real Estate career. One situation was worked out just fine, the other fell apart faster than you can blink. Check with your lenders to make sure they use licensed and experienced appraisers!”

With online websites now providing home estimates, the number of homebuyers and sellers with their own home value approximations has certainly gone up. In fact, many consumers expect these numbers to reflect what they can buy or sell for. However, all to often, REALTORS® are left to explain the inaccuracy of many of these online estimates by using local market data.

Click through to read Kyle Eastland’s full blog.

Sign up for a free Featured Blog on Realtor.com today.

Related posts:

1. Can I Sell Home for More than Appraisal? Q: My roommate, girlfriend and new baby love my house....

Related posts brought to you by Yet Another Related Posts Plugin.

Home buyers and sellers are increasingly finding their REALTORS® through online searches. By reading a Realtor’s blog and visiting their website, a potential client can get a sense of the Realtor’s knowledge and personality. Now, more than ever, it is important for Realtors to be aware of what their online persona says about them. For buyers and sellers, finding the right Real Estate agent has become more than using just anybody. They need someone who they can relate to and trust.

 Yanni Raz explains what qualities the right Realtor should possess:

“?In today’s market it is very important that a good Realtor to represent you. In a marketplace full of opportunity, tax benefits and irregular values, proven experience, integrity, market awareness and outstanding communication skills are essential. No one should compromise these qualities. Home Purchases and sales are too important to place in the supervision of inexperienced, unverified Realtors. Whether dealing with a commercial or residential real estate transaction, the client should verify that the realtor is an affiliate in good standing with the National Association of REATLORS® (NAR). This membership assures the client of the Realtor’s obligation to educational programs and compliance with principles of ethical conduct and cooperation. NAR has been instrumental in increasing and implementing superior ethical principles of conduct throughout the industry.”

Realtors who are making it through the downturn understand that buyers and sellers are savvy. Not only must a Realtor have knowledge about their local market and how to advertise, but they must also stand up to a host of personal critique. Buyers and sellers want to make sure their Realtor will be able to represent their needs when it come to this important purchase. If you are a Realtor blogger, be sure to not only highlight what you know, but also what makes you stand out as a Realtor and a person.

Click through to read Yanni Raz’s full post.

Sign up for a free Featured Blog on Realtor.com today.

Related posts:

1. Is There Conflict if Realtor Works for Seller and Buyer? Q: I live in a condo that is being short...

Related posts brought to you by Yet Another Related Posts Plugin.

The controversial practice of writing an offer through a listing agent is known to REALTORS® as “double-listing.” In this scenario, a buyer goes throught the listing agent directly without using a buyer’s agent. Many Realtors feel this practice, although legal in most states, is not only unfair, but unethical because of the conflicts of interest that may arise.

Suzanne Grace blogs about the questionable ethics involved in this practice:

“There are a lot of articles hitting the blogs questioning the ethics of today’s challenging market. In my area, we face a housing shortage, especially in some price ranges, and it appears as though many are not listing the homes on the MLS as directed – and as a result are selling the homes themselves. While double-ending a listing is legal in CA, is it ethical? One may think of the multitude of fiduciary duties owed to a seller – whether the seller is a bank or an individual – and challenge just whose interests are being protected. If a seller hires an agent – again whether it be a corporate listing or an individual – you are charged with the duty to obtain the best price for your customer as well as the best buyer. Can you do this ethically? Can you effectively do your duty? In my experience, the only one who wins is the agent.”

Protecting their clients interest is a Realtor’s duty. That may mean entering into tough price negotiations, or may mean halting a transaction all together becuase of questionable inspection results. However, it’s difficult to imagine a Realtor who is represtenting both parties negotiating the price or halting a transaction for any reason. While the transaction may go smoother with only one Realtor involved, who is really benefiting?

Click through to read Suzanne Grace’s full blog.

Sign up for a free Featured Blog on Realtor.com today.

Related posts:

1. Should I Sign a Buyer Contract? Q:  I contacted a broker who has many agents working with...
2. Is There Conflict if Realtor Works for Seller and Buyer? Q: I live in a condo that is being short...

Related posts brought to you by Yet Another Related Posts Plugin.

New home sales for the month of June increased by 11 percent, compared to May. This is the third consecutive month that new home sales have risen. While this is undoubtedly good news for the housing market and the economy as a whole, what is concerning is that roughly a third of all existing-homes sold during June were short sales or foreclosures. These types of sales are  bringing down rising inventories, while presenting great opportunities for first-time buyes and investors. But, they also can take a toll on home values.

Allan Glass explains how the changing Real Estate landscape is affecting buyers and sellers:

“Existing home sales rose this past June for the third consecutive month, an increase of 3.6 percent over May 2009 and only .02 percent lower than the home sale numbers for June 2008.  Of significant note, 31 percent of all the existing home sales across America this past June were either foreclosures or short sales. Think about that for a second… Nearly one of every three homes sold last month was sold for less than what was owed to the lender. According to the National Association of REALTORS®, 4.89 million homes were sold in June, meaning 1,515,900 times the banks agreed, or were forced, to take a loss. To put this in perspective, if you sold every home in New Hampshire, North Dakota, and Vermont for less than the owners paid, you would still have to sell all of the houses in Wyoming for a loss before you reached the same number of losses the banks took in June. These figures are simply staggering. But what does this all mean to home buyers and sellers?”

Between the media and Internet, prospective buyers have mountains of data and information at their disposal. This has created savvy buyers who have watched and waited for the right time to make their move into the market. If buyers are coming out, then it’s possible there is some consensus about the bottom finally being reached.

Click through to read Allan Glass’ full post.

Sign up for a free Featured Blog on Realtor.com today.

No related posts.

Related posts brought to you by Yet Another Related Posts Plugin.