Realtor® Vs For Sale By Owner (FSBO)

5 Important Reasons Why you should use a Realtor® to sell your house instead of Trying to Sell it Yourself

No. 1 Money

According to the National Association of Realtors®, sellers using a Realtor® to sell their home will realize more money in the end.

However, a FSBO does not have to pay a percentage of the sale price to a listing broker.

No. 2 Marketing

A Realtor® has access to the Multiple Listing Service where thousands of other Realtors® can see your property and show their clients.  Buyers also have access through realtor.com.  Many of the MLS providers list their properties on Zillow and Trulia.

Without access to the MLS, FSBO's will have to pay out of pocket for all advertising to market their homes.

No. 3 Time

A good Realtor® will dedicate a lot of their time and energy marketing and promoting your house to sell.

Owners generally struggle to find enough time to effectively market and show their home to potential buyers.

 No. 4 Negotiation

Realtors® are experienced negotiators in the sale and purchase of real estate.

Inexperienced sellers must negotiate and avoid all the legal pitfalls on their own.

No. 5 Legal Issues

An experienced Realtor® will work within the laws of the State, co-ordinate all aspects of the sale with attorneys and other Realtors® involved in the contract.  They will ensure that all important dates and deadlines are adhered to, ensuring a smooth closing.

Unless a FSBO has legal knowledge of the process and law of real estate, there is always a potential risk for an error to be made, resulting in the Seller being sued by the Buyer.

Valerie McKean GRI, ABR

Owner/Broker
Century 21 Sterling Real Estate

REALTOR®

www.pinehursthomes.com

valerie@pinehursthomes.com

Tel: 910-430-9494

Is an Income Producing Investment Property Right for You?

The appeal of income properties and the potential for what may seem like easy money and early retirement have likely crossed the mind of anyone who has heard of this business venture.  There is a lot more to consider before entering the income property game, however, than simply purchasing a property and watching the dollars roll in.  Here are a few things to consider before launching into your new career.

Can You Recognize An Income Property When You See It?

There are a lot of features that make a good income property.  Whether you are considering flipping it for a profit or renting it out to potential tenants, knowing what to look for is more than half the job.  Can you realistically estimate what the cost of renovations to the property will be?  Do you know what the value of the home will be after the renovations, based on its size, location, etc.?  Do you know what the market rent would be for the property?  If you can't answer any of these questions you either have a lot of work to do, or you may want to reconsider.

Not Scared Off?

So, you think you can reasonably identify an income property and are still interested in making your first purchase.  Here are a few tips for making that a success!

Know Your Intent

Whether it's flipping or renting the property, you should have a clear picture before you make the purchase.  Have an estimate of what the renovations will cost as well as the profit margin of the investment, both in the short and long term. Make sure you take into consideration all the overheads such as landlord insurance, maintenance both yearly (such as pest extermination and heating & cooling system) and incidental.  Take a good look at the equipment and appliances before you buy a property.  How old are they, what condition are they in and when are they likely to need replacing?  How will you market the property?  Will you need to use a Realtor® to find tenants?  Do you plan on managing the property yourself, or are you planning to use a property management company?  Are you planning on long term letting or short-term holiday lets?  The type of property and the location of the property will be determined by your answers to some of these questions.  Make sure you sit down and come to a decision about your goals before you buy.  A 1 bedroom apartment on a busy street may be ideal as a rental for a long term tenant working in the neighborhood, whereas it might not be successful as a holiday let. Do your homework!

 Consider Splitting the Costs

Many people who enter the income property market reduce the risk by having partners.  Whether it's a friend, relative, or business partner, this may be the right decision to minimize your risk in your first venture.

Make It Your Business

Whether you plan on doing this as an additional source of income or you are going into it full time, realizing that this is now a business will prevent you from losing a fortune.  You will spend a lot of time getting to know both the real estate and the home renovation industries, and the more you know, the more successful you will be.

Deciding to get into the income property business can be a time consuming, but ultimately very rewarding, venture.  Like any business, the effort you put in and the knowledge you have will determine the success you achieve.

Valerie McKean GRI, ABR

Owner/Broker
Century 21 Sterling Real Estate

REALTOR®

www.pinehursthomes.com

valerie@pinehursthomes.com

Tel: 910-430-9494

What is a Home Warranty Plan?

A home warranty plan, also known as a home protection plan, is a service contract that offers homeowners a way to safeguard themselves against possible breakage or a malfunction within the home.  It's impossible to predict the future, which is why so many buyers look for that little extra peace of mind to comfort them when life unexpectedly throws them an unforeseen problem.

Who Needs A Home Warranty Plan?

Basically, anyone who purchases a home and is concerned with the cost of repairs should consider a home warranty plan.  This is especially true of first-time home buyers who may not be familiar with home maintenance.

Factoring In The Cost

When factoring in the potential cost of repairing a major appliance or other home component, a home warranty plan may not be a bad investment.  The actual cost of warranty coverage will depend on the plan chosen and the items protected.  As is the case with everything in life, it's best to shop around and compare prices.

Who Pays For A Home Warranty Plan?

As a buyer, you can order a home warranty plan in conjunction with the purchase of your home.  However, some sellers or builders may include this type of offering as an incentive to attract potential buyers.  In this case, the plan is yours at no additional cost.  Some REALTORS® may also offer a home warranty plan as a gift to customers who buy a home through their agency.

What's Covered & What's Not

Just like a car warranty, no two policies are the same.  Coverage varies by location and issuer, and your REALTOR® can help you to choose a warranty plan that best suits your needs.  Most basic plans cover a home's heating and cooling system, electrical system, plumbing, water heater and major appliances, including a dishwasher, range/oven/cooktop, garbage disposal, etc.  Coverage does not apply to items that are misused or damaged, either intentionally or through negligence.  Instead, most home warranty plans are designed to protect the homeowner from defects that result during the course of normal wear and tear.

When considering the purchase of a home warranty plan, review the complete contract and familiarize yourself with exactly what's covered under your policy.  If you want an upgraded policy, don't hesitate to ask your REALTOR® if one is available.  Most companies do not require a home inspection and will notify homeowners when their coverage is about to expire.  The good news is that most policies are renewable.

What To Do If A Problem Arises

If you are unable to satisfactorily resolve an issue with your home warranty plan, either due to denial of a claim or undesirable service, talk to the REALTOR® who sold you the home.  If he/she refers a lot of business to this particular company, it may be possible for him/her to speak with them about reaching an amicable resolution.

The purchase of a home is a big step and it's likely to be the largest purchase you will ever make, so be sure to consider all of the options available to help protect yourself from costly repairs.  Ask your REALTOR® for more information relating to available home warranty plans.

Follow the link below to see the latest research on home warranties from the Consumer Advocate Organization.

https://www.consumersadvocate.org/home-warranties

Valerie McKean GRI, ABR, SRES

Owner/Broker
Century 21 Sterling Real Estate

REALTOR®

www.pinehursthomes.com

valerie@pinehursthomes.com

Tel: 910-430-9494

August 5th 2019

Buying A Home with Bad Credit

When it comes to buying a home, having bad credit is not the end of the world.  Your future doesn't have to be defined by your past.  Whether you have suffered from a bankruptcy, foreclosure or some type of financial hardship that resulted in late or missed payments, there are lenders who specialize in financing for those with less-than-perfect credit.  You will likely have to produce a larger down payment and/or pay higher interest rates than someone who has good credit, but the important thing to know is that buying a home is an option for you. 

Bankruptcy & Foreclosure

If either a bankruptcy or foreclosure is on your credit report, it could take some time before you can qualify for a good interest rate on a mortgage.  FHA loans, which are especially desirable for those with past credit problems and first-time home buyers, are backed by the government and offer a low down payment and interest rate option for those who qualify.  Although the notation remains for up to 10 years, individuals with a bankruptcy or foreclosure on their credit report may qualify for an FHA loan after two years.  Some mortgage lenders may approve a loan sooner, but the interest rates will be higher and the required down payment may be as much as 35 percent of the purchase price of the home. 

Cleaning Up Your Credit

Even if you have bad credit, it's important to check your credit report from each of the three major credit reporting agencies - TransUnion, Equifax and Experian - before applying for a loan.  If anything is inaccurate, file a dispute with the reporting agency and request a correction.  You can request a free copy of your credit report every 12 months from each agency.  Go to  www.AnnualCreditReport.com.  Spread it over the year, apply for one every 4 months, for example in January get Experian, in May get TransUnion and in September get Equifax.  Doing it this way you get a picture throughout the year, not just a snapshot once a year.  This report will not give you your credit score, however that can be obtained from www.CreditKarma.com for free.

In addition to correcting any inaccuracies on your credit report, it's important that you know what can help or hurt your chances of obtaining a loan.  You can start improving your credit by avoiding the temptation to apply for new credit right before submitting a mortgage application.  Multiple inquiries will cause your FICO score to drop, and lenders will rely on this information when deciding whether or not to issue your loan and how to calculate your interest rates.  With past credit problems, most lenders will want to see that you have rebuilt your credit history with 1-3 major credit cards and timely payments over a two-year period. 

Money Matters

When it comes to obtaining a home loan, a healthy bottom line will help the lender to see you as being creditworthy.  It's important that you have sufficient income, along with the ability to prove steady employment for at least one year (longer is better) preceding your loan application.  Most lenders will request a copy of your tax returns for the two most recent years, along with current pay stubs.  If you have money for a down payment, this will also work in your favor. 

Creative Financing

In some cases, a conventional mortgage loan may not be available no matter how hard you try.  Owner financing is one way that individuals, who may not otherwise qualify for a traditional mortgage loan, can purchase a home.  This type of financing is offered by the owner and may include interest rates comparable to other loans, flexible down payment options and no credit check.  Your REALTOR® can assist you in finding homes that offer alternative financing options.

The following websites have additional information and offer help and advice:

www.hud.gov - The US Government website for Housing and Urban Development.  Find out what programs may be available in your state.

www.annualcreditreport.com - Get your free annual credit report from each of the 3 agencies.

www.creditkarma.com - Get your free credit score.

www.OptoutPrescreen.com - Is the official website for the Consumer Reporting Industry. Opt in or out of credit companies sending you offers.

www.mint.com - Get help organizing and keeping track of your finances.

Valerie McKean GRI, ABR

Owner/Broker
Century 21 Sterling Real Estate

REALTOR®

www.pinehursthomes.com

valerie@pinehursthomes.com

Tel: 910-430-9494

September 10, 2017