Saturday, February 11, 2006

Creative Real Estate Concepts [BLOGGER PREVIEW]

Creative Real Estate Concepts [BLOGGER PREVIEW]

Take an Impartial Look before Selling your Home

Our bodies become accustomed to our environment and just as true we tend not see little problems or eye sores around the house in which we live. As everyone will tell you, the house sells itself, we, as humans whether FSBO or Realtors are responsible for marketing. You as the home owner have the ultimate responsibility to help the house sell itself by making sure that the details are addressed. Often though you cannot see the details. A good Realtor will take a look around and identify areas that you, as the homeowner need to address. If you are like most people, you like to avoid the Realtor fees and commissions, but whatever you decide, do not avoid reviewing your house. Little things like exterior paint discoloration, or perhaps a small piece of rotted wood. Maybe there is a carpet stain, barely noticeable. When someone visits your house for a potential purchase, they are looking for problems... The cinical side of human nature is that the Seller is hiding something and it is the Buyer's responsibility to find out what it is they are hiding. Every little detail will be seen... WHY? Because they are not accustomed to your house. It allows Buyers to see all those things you do not see... ADVICE! If you are unable to really see what your house looks like, and you do not want a Realtor; ask your neighbor or friend to come by and scrutinize your property. You might be surprised what they will see, that you cannot.

Thursday, February 09, 2006

FSBO Beware but still sell your Home!

FSBO (For Sale By Owner) is a system to offer individual homeowners the opportunity to avoid real estate commissions and now fees, when they need/want to sell their home. OK we know this... right? Now... lets be brutally honest here... REALTORS exist because they make it their job to know the real estate market... not your house, not necessarily your needs. REALTORS typically know the pitfalls associated with real estate transactions and can be an invaluable source for information and honestly.. statisically will get you more money for your house if you will let them guide you through the troubled waters of the real estate market. That said... There are ways for you to Sale your house yourself without an agent! First you must understand several key concepts. The house always sells itself! No one can sell your house. The market, not you, not your mortgage amount, not the REALTOR; establishes how much your house will bring to your pocket at closing. The market is controlled by your neighbors. The prices for which they accept, the prices which they paid, the neighborhood dynamics, and how your partcular house fits into the scope of the market. Your home's value is primarily based upon square footage. If you have the larger house your amount per square foot may be lower than that of a smaller house, even if they sit side by side! The little "extras" that you may have done.. perhaps expensive marble countertops and stone entry halls, all add value, but NOT to your market value. It may swing your price per square foot upwards slightly, but typically you will not recover the extra cost you incurred. So where does it add value? Well easy.. if you live in a typical neghborhood, your floorplan and that of your neighbors may be identical... The one with the marble will come near selling before the one without.. Unfortunately, you probably wil not be able to sell it for more money though. And important to remember, just because you like something does not mean someone else will. If you want to get appraised value for your house, you must expand your target market. Very few people in todays society can qualify for a traditional mortgage, so look beyond typical... "Get out of the Box!" There are ways to sale your house, without a REALTOR, receive the Appraised Value and put more money in your pocket at closing. (BTW, I still recommend a REALTOR.. protection and knowledge of the transaction is worth the investment) If you want information on a unique program, go to Simply register and receive a Free, no obligation information packet of how to Sale for more Money, FAST by simply expanding your market! If you want a REALTOR that understands creative finance and expanding your market, I will recommend Dan Stewart Realtors. (Licensed in Tennessee, Georgia, Mississippi and Arkansas. There are other reputable REALTORS, but I have had first hand experience with these folks.. If you talk to a REALTOR that does not understand Creative Finance.. WALK away! Many are still wrapped up in the 80's and 90's when it was easy to obtain a traditional loan. It is not that way anymore. These REALTORS have failed to keep up with the changing industry. As a FSBO, do not make their mistake nor let them lead you down the wrong path.

Lease to Purchases / Rent to Own?

This was a creative solution to (supposedly) assist credit challenged people in obtaining homes because the home buyer could not obtain traditional financing. The programs do work, but check out the people with which you are entering the contract. There are several methods used. Be sure your contract is detailed and I personally advise you to allow a lawyer to read over the agreement prior to signing. Often there are little catch clauses in the contract, which can leave the "want to be" homeowner out a bunch of money and with no place to live. First on the lease to purchase contract... some call for you to pay a lease then buy at the end of the year. Typically, a down payment is collected and then you pay a monthly lease until the contract calls for you to obtain financing. Ideally, after 12 months of great pay history you should be able to obtain a purchase loan. In some cases you can obtain a refinance loan on the property even from a lease to purchase contract. The other method (which usually cost you more monthly) allows for a portion of your lease payment to be escrowed towards your purchase at the end of the Lease to Purchase contract term. This allows you to create a larger downpayment over time. Beware of the following differences in legal terms though. Lease/Purchase agreement and Lease to Purchase agreement... The first calls for two separate contracts, with the purchase not being legally tied to your lease. The second ties the two contracts into one contract which is typically better for the Home Buyer and not the Seller. (Ask a lawyer or leave a message for further details) If you want to buy a home there are some other alternatives available to you that allow you to get the tax credit that you do not get while leasing as well as a more binding contract to protect your interest more in depth. Check out for more information on just one of the programs out in the new workld market place.

Creative Finance

Many people (REALTORS and mortgage brokers included) do not understand exactly what creative finance is therefore often in their mind it becomes wrong or illegal. Well, there could be nothing further from the truth. If you cannot get a job done the traditional method, what do you do? Create an alternative solution, and that is all Creative Finance is. "Seller Held Seconds" for example are legal and are recognized by every traditional mortgage lender in the country! That is why they use acronyms like LTV (Loan to value) and CLTV (Combined loan to value). Why have a CLTV if you as a mortgage lender did not recognize the need for two mortgage notes to be combined to make a deal work? They become illegal when the Seller has no intention of collecting on the Seller Held Second Mortgage. Seller Held Second Mortgages are even marketable!! How many times (on your personal mortgage) has the lender you borrowed the money from, contacted you and said your note had been sold...? They sell a large percentage of mortgage notes on the "secondary market" You can sell your notes there as well! Yes, you can even do simultaneous close and get paid for you Seller Held Second right at the closing table... And yes I buy "Seller held notes", look me up at I would love to make you a CASH offer to buy your note...

Creative Real Estate Concepts

Creative Real Estate Concepts