Read Will Klein´s Blog - Keller Williams Realty West in St. Charles, MO

It's Time To Sell My Home - I Can Do That, Right?

Your Home is typically your most prized possession - or at least it is one of the most valuable.

The benefits that most see to a For Sale By Owner (FSBO) is that they may save money not having to pay commission. The other reason is that they may have had a bad Realtor in the past and it left a bad taste in their mouth - or due to their ineffectiveness the homeowner feels they can do what that person did. Another reason is that they work or worked in sales and feel they can sell their property.

You can sell your own home, but the odds are against you! You talented agent is Internet savvy - because over 80% of the homes are first found on the Internet. This isn't throwing it on website - this is throwing it on tons of websites - including social media sights. In some cases re-posting multiple times per week to promote your home. So sure you could do that but it is time consuming!

Next Problem - It's YOUR House! Think of the last time you had a garage sale, do you remember your clientele. The wheeling and dealing, no one was willing to pay what you had it tagged for - remember? When your home does not have professional representation, you are essentially putting it up for sale at a garage sale. It will be very hard to separate emotion from the process as well.

Are you available for a 2nd Full-Time job? Many showings happen on short notice, especially for you because odds are good the only way they see your house is when they drive by, and then want to see it right away. When you have a Realtor they take of the showing schedules and let you keep living your life.

Who sells the most homes in your area - Realtors - there is little motivation for them to show your home because there are too many risks. They can't research your home, they can't tell from the outside if it fits what their buyers are looking for. Finally, you wouldn't work for free, neither would they. If there is an unknown on commission, or the risk of no income they will avoid your home as well.

Exposure - Good Realtors sell your home to the Real Estate community - Agent tours are a strong tool to introduce your home to the agent community that work directly with buyers. Good agents also communicate via e-mail in promotion of your home to other agents.

The final issue is the paperwork involved in the actual sales - Offer - Counteroffer - process, experience helps here - the forms are not simple and are many in number.

When selecting an agent - do some homework - you are hiring them to sell one of you most valuable possessions - See how many listings they have - look or ask to see how they market those listings. You can interview multiple agents as well - pick who you think is going to do the best job for you - and it is not always the one who agrees with you on everything. You want you agent to be honest with you - from staging to pricing!

Author - Will Klein is a Realtor in St. Charles County, Missouri serving the cities of Cottleville, Weldon Spring, Saint Peters, O'Fallon, Wentzville, Warrenton, New Melle, Winfield, and Lake St. Louis, with homes for sale in most.

Mortgage Definitions

We are all guilty of it - when we hear a term we don't understand we rarely ask the meaning out of fear. We all want to act like we are in control of the situation and appear knowledgeable. As a Realtor, I appreciate an inquisitive client, I enjoy educating the people I work with. I believe most experts feel the same way, so don't be shy - ask a way!

With all the things going on the economy, a bright spot is the opportunity to get a new low rate on your home mortgage. Here are some definitions of some commonly used terms the average home owner may not use on a daily basis.

acceleration clause

A clause in your mortgage which allows the lender to demand payment of the outstanding loan balance for various reasons. The most common reasons for accelerating a loan are if the borrower defaults on the loan or transfers title to another individual without informing the lender.

adjustable-rate mortgage (ARM)

A mortgage in which the interest changes periodically, according to corresponding fluctuations in an index. All ARMs are tied to indexes.

appraised value

An opinion of a property's fair market value, based on an appraiser's knowledge, experience, and analysis of the property. Since an appraisal is based primarily on comparable sales, and the most recent sale is the one on the property in question, the appraisal usually comes out at the purchase price.

buydown

Usually refers to a fixed rate mortgage where the interest rate is "bought down" for a temporary period, usually one to three years. After that time and for the remainder of the term, the borrower's payment is calculated at the note rate. In order to buy down the initial rate for the temporary payment, a lump sum is paid and held in an account used to supplement the borrower's monthly payment. These funds usually come from the seller (or some other source) as a financial incentive to induce someone to buy their property. A "lender funded buydown" is when the lender pays the initial lump sum. They can accomplish this because the note rate on the loan (after the buydown adjustments) will be higher than the current market rate. One reason for doing this is because the borrower may get to "qualify" at the start rate and can qualify for a higher loan amount. Another reason is that a borrower may expect his earnings to go up substantially in the near future, but wants a lower payment right now.

cap

Adjustable Rate Mortgages have fluctuating interest rates, but those fluctuations are usually limited to a certain amount. Those limitations may apply to how much the loan may adjust over a six month period, an annual period, and over the life of the loan, and are referred to as "caps." Some ARMs, although they may have a life cap, allow the interest rate to fluctuate freely, but require a certain minimum payment which can change once a year. There is a limit on how much that payment can change each year, and that limit is also referred to as a cap.

Certificate of Reasonable Value (CRV)

Once the appraisal has been performed on a property being bought with a VA loan, the Veterans Administration issues a CRV.

fixed-rate mortgage

A mortgage in which the interest rate does not change during the entire term of the loan.

HUD-1 settlement statement

A document that provides an itemized listing of the funds that were paid at closing. Items that appear on the statement include real estate commissions, loan fees, points, and initial escrow (impound) amounts. Each type of expense goes on a specific numbered line on the sheet. The totals at the bottom of the HUD-1 statement define the seller's net proceeds and the buyer's net payment at closing. It is called a HUD1 because the form is printed by the Department of Housing and Urban Development (HUD). The HUD1 statement is also known as the "closing statement" or "settlement sheet."

private mortgage insurance (PMI)

Mortgage insurance that is provided by a private mortgage insurance company to protect lenders against loss if a borrower defaults. Most lenders generally require MI for a loan with a loan-to-value (LTV) percentage in excess of 80 percent.

Using a Realtor

FSBO vs. Hiring a Professional

Real Estate Terminology!

"You Said What?" ✍ Real Estate Defined! ✍