Thursday, November 29, 2007

For Sale by Owner FSBO - San Fernando Valley

Yesterday, I received a live chat request from a homeowner here in Burbank who wanted to sell their home FSBO. We had a 30 minute online conversation about the benefits of hiring a Realtor. I just so happen to run across this recent article I wanted to share with anyone who's thinking of selling their home FSBO in the San Fernando Valley or Santa Clarita Valley.

The article below was recently published by

FSBOs Fall Flat
by Broderick Perkins

For-sale-by-owner or 'FSBO' transactions in the softening real estate market experienced zero growth last year, according to the National Association of Realtors (NAR).

The NAR's 2007 Profile of Home Buyers and Sellers, released at the recent 2007 Realtors Conference & Expo in Las Vegas revealed only 12 percent of transactions in 2007 were FSBOed, unchanged from 2006.

That's not surprising.

In the time it takes a first-time FSBO to sell a home, he or she has to learn what many real estate agents get to know only after assisting dozens of buyers and sellers for many years.
That includes experience gained from too many deals that don't gel, lessons learned in long hours at seminars, workshops, continuing education courses, conventions and wisdom gleaned from picking up after errant FSBOs who couldn't hack it.

Not to mention housing markets that go boom -- the wrong way.

Today's tight money market of falling prices, foreclosures and deals that don't gel is a potential minefield of blown opportunities for the uninformed.

The survey also reveals the percentage of homes sold without professional representation has continued to decline since 1997, when a record 18 percent of transactions were FSBO deals.
While the survey shows it's possible for a few staunch sellers to complete a FSBO deal, bringing in a real estate professional is a better deal in any market, and even more crucial when things go south.

"Realtors add value to the real estate transaction no matter what market conditions may be," said Pat V. Combs, NAR president.

"Realtors are experts in attracting qualified buyers, negotiating on their client's behalf, and ensuring a smooth transaction," said Combs also vice president of Coldwell Banker-AJS-Schmidt in Grand Rapids, MI.

Nearly half, 40 percent, or four out of 10 FSBO properties were private deals that never made it to the multiple listing service, but "closely held" between parties who knew each other in advance, such as family members or acquaintances.

The survey indicates most FSBOs end up working with a real estate agent, according to NAR.
"It is incumbent on Realtors to demonstrate to unrepresented sellers the value that Realtors add to the transaction," said Joseph Marovich, owner of Marovich Business Institute, a real estate education company.

NAR says the sites that cater to FSBOs have listings that pale in comparison to the home showcased on NAR's which offers more market exposure to would-be FSBOs.
Published: November 29, 2007

Sunday, November 11, 2007

Week of November 11, 2007 - Homeownership Information

The links below are tips, quotes, and homeownership information for the week of November 11, 2007. Be sure to bookmark this blog or subscribe to the RSS feed as new information is added every single week.

e-Tips for November 11 - Points to Understand About Points
e-Quotes for November 11 - Test drive possible properties

Some additional reading I can recommend....

  1. 7 Smart Ways To Bring Out Your Home's Beauty And Best Value
  2. Five Tips For First-Time Buyers
  3. Homeowners Facing Foreclosure Urged To Call New HOPE Hotline
  4. Study Finds International Citizens Buying Into The American Dream

  1. Time to Sell?: What to do Before You Make Your Next Move
  2. Is Your City Among The Most Eco-Friendly?
  3. Tips For Choosing A Remodeler
  4. How To Decide Between Selling And Renting
  5. Think First Before Building Your Dream Home
  6. Heat Your Home Safely This Season
  7. The Safest Flooring For Your Stairs
  8. Vacation Homes Can Provide Buyers With Extra-Sweet Tax Deductions

Friday, November 09, 2007

RE/MAX Outsells All other Real Estate Brands in the San Fernando Valley

I think the graph above speaks for itself. If you would like to start 2008 in a new home, call me. I have an exclusive list of bank owned homes in the San Fernando Valley up to 50% off market value. Here is the link:

Homes in Foreclosure Increases 33% in 40 Days

You can see the increase in the number of homes in foreclosure A.K.A. Bank owned homes in the San Fernando Valley and a few areas in the Santa Clarita Valley above. On October 1, 2007, there was a total of 304 bank owned homes. On November 9, 2007, I calculated a total of 404 bank owned homes. Thats an increase of 33% in 40 days. Reseda had a 63% foreclosure increase in the past 40 days! Wow! There are many great deals on the market and banks are eager to sell their inventory now! If your in the market to find a great home up to 50% off market value, call me now! I've sold many bank owned homes and know how to negotiate to get you the best deal.
Some misconceptions about buying bank owned homes.
1. Can anyone buy bank owned homes? Yes. In fact, its easier than buying from regular home-sellers.

2. Are bank owned homes fixers? Yes and No. What I've noticed is the banks are cleaning the properties by painting inside/outside, new carpet, appliances, kitchen cabinets, etc... to where the homes are in move-in condition. This depends on the bank and their return on investment (ROI) if they choose to rehab the property.

3. Can I ask the bank to pay my closing costs? Yes. Banks are eager to sell their inventory and getting 10K to 12K to help pay your non-recurring closing costs is acceptable in this market.

4. Will the bank pay for my home warranty? No. But, you can ask your agent to buy it for you as a thank you gift. The cost is around $250 for a condo and $400 for a home.

5. Is buying a bank owned homes easier than a short sale? Absolutely. When buying from the bank, you are working with the bank. There are no emotional sellers or any third party lien holders.

6. What are the advantages of buying bank owned homes? You'll be buying a home up to 50% off market value.

7. How long does it take to close on a bank owned home? Expect up to a month delay. This would also depend on the bank and how fast they respond to requests. The bank will also choose its own escrow and title company which may or man not be local. This could cause additional delays.
Do you have a question? Click the Live Chat button below or call me anytime.
Richard M. Johnston, RE/MAX OTB Estates

Source: Socal MLS

Sunday, November 04, 2007

Five Tips For First-Time Buyers

  1. Check your credit before you apply for a loan. You can get a free credit report by contacting one of the big three credit reporting agencies—Equifax, Experian or Trans Union. Do what you can to improve your credit score if it isn’t in the excellent range. You may need to pay off credit cards, close some accounts or correct errors in your credit report.
  2. Plan your housing budget realistically. Figure out how much cash you have to put toward a down payment and closing costs. List all the expenses you’ll incur as a homeowner, including estimated property taxes, insurance, utilities, maintenance, repairs and new furnishings. (We can supply estimates for you.) Add your other regular expenses for car payments and loans, transportation, clothing, food, recreation, medical care, college fees, retirement savings, etc. What’s left over will be the realistic monthly home payment you can afford—even if you are approved to borrow more.
Continue with here.

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