First of all, agents have more means of advertisement than you do.  They have access to the multiple listing service (MLS) and different online advertisements.  Firms are also excellent at hosting open houses, as well as have a huge online database of potential buyers that they can send out blast advertisements to.  If you do not advertise your house correctly from the beginning, then it could lose you money every month it is on the market.  An agent can ensure that your home is being marketed correctly.

An agent also has more experience in the real estate business than you do.  The home buying and selling process can be a confusing one, with many exact steps and processes that require concise information.  Without the assistance of an agent, and unless you know the process well, there is a good chance that you may wind up missing out on opportunities and time that can have been utilized had you used an agent.

The last, and probably most important reason to use a real estate agent when you are selling your home is because of the prices that your house will more than likely be sold for if you do.  By allowing a selling agent to do what he does best, which is sell, there is a good chance that your home will sell for more than if you tried to sell on your own, more than covering the commission that the agent took for his services, and potentially adding thousands of dollars to your final sales price.

So, even though I understand the logic behind wanting to sell your home on your own, I would not recommend it.  Even if you avoid paying the agent a commission, you may wind up losing money from several different avenues, costing you more at the end of the selling process.  By utilizing an agent and his vast resources, you are more likely to experience a more timely and enjoyable experience selling your home.

First of all, underwriting standards are too tight. There are many qualified buyers that are being denied conventional loans because they do not have the big down payments required. Lenders are looking for more vested interest from borrowers in the form of large down payments when, according to a publication from the National Association of Realtors, “well-underwritten, low down payment home loans have been a significant and safe part of the mortgage finance system for decades.” Furthermore, studies have shown that the amount of the down payment has played a negligible roll in foreclosure statistic of loans that have been well-underwritten, whether that down payment be 5%, 10%, or 20%. Of the 26% of loans being denied, the vast majority of them are credit worthy borrowers that simply do not have access to the large down payments that are being required by the lenders in order to receive the interest rates they can afford.

By loosening these standards to allowed for well-qualified borrowing, we will begin seeing more people move into a home buying position. This will allow for more competition on these foreclosed home, which are already great deals. Think about it. If two people bid for a house, the home will be sold for greater than what it would have if one person would have made an offer. This will yield a higher final sale prices, which will begin driving up the price of other comps in the area. A neighborhood inventory can be benefitted by one good comp in the area, and the snowball effect that comes with it.

In conclusion, we need to begin moving more people into a position to buy. Desperate sellers are accepting first offer, most of which are underneath the list price, simply because they want to get rid of their home. This situation does not help comps in the neighborhood, but rather moved their estimated values down. The key to appreciation is allowing for homes to be sold above list price, stimulating appreciation and market appeal for homes in the area. This is accomplished by increasing competition, and that is done by loosening unnecessarily tight underwriting standards.

One difference between real estate and other markets is that stimulating demand is done a little differently. Yes, reducing prices and home improvements always help, but another way is to move more people into the position where they can actually get approved for a loan. Not many people can honestly say that they do not want to own a home; it is the American dream. So, unlike clothes or furniture, we do not need to make people want to buy, but rather make them able to buy. This is how we stimulate demand in real estate.

Once we successfully stimulate demand (by moving more people into a position to purchase), we will begin seeing home prices increase. The more demand for a product there is, the more the price of that product will increase, with all other things being equal. With so many Americans underwater, there is a stagnate portion of our market that is simply waiting for their home prices to go back up. Once home prices go up, and people begin moving into the positive equity zone, we will see more refinances, cash out, second loans, etc., all things that encourage spending. This spending will increase the number of jobs that are available, which will increase the demand for real estate, starting the process over again.

According to the Bureau of Labor Statistics, the unemployment rate in America is 9.1%. While this is above average, it is important to recognize that over ninety percent of American’s are still working. There is obviously plenty of room for economic growth, and increasing home values will lead to more investments and spending, which leads to more jobs. Our government is spending at record levels, with much of the money allocated to real estate recovery going to the wrong places. If we stimulate demand for (ability to purchase) real estate, we will see the economy begin recovering, starting with the housing crisis correcting.

Sometimes, you will see people refinance on their rental properties in order to increase their cash flow received from that property.  A rental property is as good as the return it is giving you on a monthly basis, and if you plan on holding onto that property as a rental for more than a few years, then this may be a good way for you to increase your return on investment.

Other people utilize their ability refinance for more than what is needed to pay off their original loan, or “cash out.” By doing this, the person can take money out of their home without having to get a second mortgage, or a home equity line of credit, which typically have higher interest rates than first mortgages.  This is especially true, since we are refinancing in order to take advantage of the lower rates.  This money can be used toward debt consolidation, home improvements, or anything that requires a lump some payment.  In any case, it tends to be a good idea to put the money in your home to work for you, rather than letting it sit there idly, and potentially being lost with the swinging of the real estate market (something that we saw with countless homes these past few years).

Typically, people can expect about three thousand dollars in closing cost when they are trying to refinance.  The good thing with these loans is that they are able to roll the costs into the loan, simply increasing the loan amount, rather than having to come with the money out of pocket, like on a typical first loan.  The loan to value ratio is traditionally eighty percent (the percentage of the value of the home you can borrow up to).  This ratio raises to eighty five percent with an FHA loan, but you can expect to have to pay mortgage insurance on a monthly basis.  So, depending on what your plans are with the funds taken out, either one of these offers both opportunities and downsides.

The first thing to know is that these loans only allow for you to finance up to 80% (75% is the loan is for less than five years) of the value of the property, and the loan must be for at least $2,000,000. This means that this loan will be available for properties that are worth at least $2,500,000. This loan type is very flexible and offers a wide range of options, including ballooning or fully amortizing mortgages, early rate locks, and supplemental loans. A key features of this loan type is that it allows for what is called a fixed rate +1 loan, which means the interest rate becomes adjustable for the last year of the loan term. Also, the origination requires one point paid, or a minimum of $20,000. This loan type is also assumable, meaning that another party can take over the loan in exchange for the deed. This action simply requires lender approval, as well as a %1 fee upon assumption of the loan.

There are standard third party fees that are required of this type of loan. Basic appraisal, legal, engineering, and environmental reports will be required. There may also be supplemental seismic and survey reports required in specific cases.

These types of loans have been made available for substantial investment purchases. By offering these types of loans, lenders are assuming that payment of the monthly charges is contingent upon the income produced by the property, generally in the form of rent. It is not uncommon to see mortgage underwriters to require a certain percentage of units in a building occupied for a certain period of time prior to the loan being approved. This reduced the bank’s risk in lending the money out, and it also ensures that the borrower will be likely to stay current on his loan. Late payments and penalties for loans of this magnitude can be costly, and some states allow for banks to sue for remaining monies owed, should there be a foreclosure on the property.

The exclusive right to sell is the most common one that I see in my every day business. This type of listing means that only a specific broker’s agency is allowed to sell your home, and you must pay the commission no matter what. The positive side of this is that agents are much more willing to take on properties with this type of listing agreement, and will generally be more willing to invest their own resources into selling your home, because they are scheduled to get a payment no matter who sells the house. The negative side is that you do not have the opportunity to avoid paying the commission by selling the property on your own.

The exclusive right to agency is basically the same as the exclusive right to sell, except the seller may avoid paying the commission should he or she sell the home prior to the listing agent. Needless to say, not many agents like this type of listing, because they are now competing with you as a seller. The positive side of this type of listing is that you can now do your own work to sell and earn more money once the home is sold. The draw back is that many quality agents will not accept this type of listing, and those who do often do not invest many of their own resources into selling the home, because their is no guarantee that they are going to see a commission at the end.

An open listing is an open agreement to sell your home, using the assistance of many different agencies, as well as your own efforts. You must pay commission to the first agency that produces a ready, willing, and able buyer. The pro of this listing type is that you have several different agencies exposing your property to their vast number of leads and prospects. The down side is that there are certain rules that can make this type of listing difficult, such as some multiple listing services that do not allow these types of listings.

As you can see, choosing a specific listing agreement depends on what it is that you plan on investing into the selling of your home, yourself. For instance, if you plan on being completely separated from the selling process, and want an agent to do the vast majority of the work, then an exclusive right to sell may be for you, etc. It all depends on your personal wants and needs in an agent.

For instance, did you know that having an incorrect address on your credit report can cause serious issues with your credit score? A small misspelling is not cause for immediate action, but having, let’s say, a former address where your current address should be can cause many red flags to appear. If an underwriter for a mortgage were to see this, they may think that you are attempting to purchase a secondary home, rather than a primary home. This can cause an unnecessary delay in the loan process, and may even be reason for some lenders to deny the loan, on account of not disclosing accurate information. Also, this may signal to credit agencies that someone is attempting to take out a line of credit under your name, which leads me to my next point.

It is important to keep an eye on your credit score, especially during the months before you plan on needing a significant loan. If someone is attempting to steal your identity, you are going to need time to resolve this. Trying to fix identity theft during the time you are trying to take out a loan can add unnecessary time and effort to the processes. Even if the credit line taken out has a balance of zero, the number of credit accounts you have plays a role in determining your overall credit score.

Another area of importance in reviewing your credit report is the limits listed for each line of credit. While this may seem trivial, a major area in determining your credit score is how much credit is available to you, as well as how much of that credit you have taken out. Having limits on your credit report that do not accurately reflect your actual limit will skew this ratio, and drive your credit score down lower than what it really is.

Finally, it is important to make sure negative hits on your credit have been removed by the time they were supposed to. Certain events have a predetermined amount of time that they are supposed to be on your credit score. It is up to you to follow through and make sure that these items are removed.

One mistake that sellers often make from the beginning is not pricing their home correctly. Again, we are in a buyer’s market, meaning that there are more homes on the market than there are buyers. If you price your property too high, you may be missing out on your one chance to catch the interest of a specific buyer. If you price your property too low, then you may be loosing thousands of dollars that you could have put in your pocket. Either way, pricing your home correctly from the beginning can ensure a nice, smooth market experience. Remember, the longer your home is on the market, them less buyers are interested. A typical buyer will think that time on the market is in direct correlation with actual value of the property.

Another sad truth is that you will have to be prepared to lose some money, especially in this market. I am not saying that you for sure will, but the possibility is there, especially considering the vast amount of Americans that are currently underwater on their mortgages. Buyers understand that the market is favoring them, and are going to try to do anything they can to get the best deal. Often times, houses that come with an extra incentive, remodeled kitchen, etc., are the ones that will appeal to buyers. Because of this, you may have to do a little extra to motivate buyers to consider your property, whether it be additions, kick backs, or simply lowering the price.

Finally, you have to be ready to promote like crazy. Real estate agents do a lot of work on the back end to promote your site through such entities as the Multiple Listing Service and past client lists. You must also be willing to do your part in the promotion of your home. You may consider posting an ad in your local real estate news paper, or possibly inviting neighbors over for a “see the inside” get together, where you can not only hold a make-shift open house, but also let your neighbors know you are looking to sell. Who knows, they may know of people looking to move into the neighborhood.

No matter what market you are selling in, you have to be willing to adjust your game plan to duplicate what is working in the current market. Selling is a dynamic process that requires teamwork, patience, and the willingness to adjust your current plan.

First of all, this type of investment requires trusting people to live in a home that you own.  Some people may not have the personality type required to be a landlord. You are going to have to be willing to set rules, guidelines, and consequences for people living in your home, and you have to be willing to follow through with these rules. You may also be faced with the challenge of eviction at one point in your career as a landlord. Do not let this discourage you! Having the correct tenants in a rental property is a great way to acquire an asset that pays in both the short and long run.

Another thing to keep in mind is that a good investment property does not always have to be a property that you would like to live in yourself.  Great investment properties often times come in the form of refurbished and remodeled homes that were in poor condition during the time of the purchase.  By factoring in the cost for esthetic work that needs to be done on the property, you can still can come out in a more favorable position than if you were to purchase a “move in ready” property.

Often times, cash plays in your favor when it comes to purchasing an investment property.  Many real estate investors look at the monthly return as their primary guide as to whether or not a property will make a good rental investment.  Remember, the more money you put down on the property, the less you have to borrow from the bank, and the more money will wind up as profit at the end of every month.

There are several more factors that go into determining if rental properties are good investments.  For instance, certain markets have a greater call for rental properties than others.  You will have to be willing to adjust your long term investment plans with what the current market is calling for.  No matter where the market may be at the moment, there is a good investment to be made in real estate.

For instance, some states are offering programs that provide assistance with closing cost, down payments, and the like, up to three percent of the loan amount.  Offers such as these can be provided to potential buyers with as little as half of a percent out of the buyers pocket!  There are other programs that offer up to 97% financing.  Even though there is no monetary assistance, programs such as these allow for loans to be had without the need for appraisals and mortgage insurance (a fee that can add hundreds to your monthly mortgage payment).

With the influx of real estate owned and Fannie May owned properties, banks are trying to decide what must be done in order to move these properties back into the market more efficiently.  Not only are incentives being offered to people looking for a new home, but there are also incentives offered to people looking to invest in real estate owned properties.  For instance, some banks are offering up to 90% financing for people looking to purchase investment properties.  This is great, especially considering the fact that people who have been hit by a short sale or foreclosure are needing to rent while their credit corrects. With home prices at record lows, this current market is in an excellent position for those looking to invest in real estate.

With all of these different incentives and opportunities available for home buyers, along with the first wave of foreclosures and short sellers from a few years ago reaching a point where they can start qualifying for loans again, we are going to begin seeing the demand for homes increasing.  I cannot say that now is the time when the market has reached its lowest, but I can say that indicators are pointing to a market recovery over the course of the next few years.  Now is the time to buy, simply because we are seeing an excellent combination of home affordability and interest rates.  If we wait for the market to drop further, we are risking a potential increase in rates to a point that makes homes less affordable, even if the actual price of a home is to drop further.