For Sale By Owner

The common American dream of owing a home works in the background of U.S. real estate business.  The market watchers and real estate field experts are offering innumerable guidelines and ideas for both home sellers and home buyers alike.  The homes for sale advertised in MLS listings, FSBO category and flat-fee brokerage offer a variety of housing properties – single family homes; multi-family condos and apartments; individual bungalows and villas, depending upon the neighborhood.

If you wish to embark on real estate activity for buying a home of your own, there are certain pre-requisites for preparing the ground, so that the house buying transaction is completed smoothly and do not pose worries and problems financially and psychologically later on. That is why you have to choose your timing for home buying.

Buying a home for your own is really a mile-stone in life.  The object is to live there happily and not to invite unnecessary troubles because of it.  Therefore the decision making process should be keen and elaborate.  If you have plans for change of job, relocation to another place, expecting some family events to happen in the near future like marriage, pregnancy, child birth etc. the timing is not right for home buying.

The thumb rule is your plan for buying a home should be strongly based on that you will have to live there at least for the next 5 years.  Then only the costs involved in home buying can be offset.  If this is clear, the next question is how much you can afford towards bearing the home buying investments that is meeting the mortgage repayment installments, down payment, closings costs etc.  This ability is the factor to decide the value of the home you should look for while searching MLS listings, FSBO category, or flat-fee brokerage listing advertisements.

Here again you should make all the calculations right – your present household income, expected increases, expected other financial commitments and expenses that may affect your financial position in future. Only then you can comfortably buy a property within your reach and do not suffer later.  You can very well seek the help of a real estate agent, who is seasoned and knowledgeable in the real estate and allied matters.  With their help and guidance it will be easier for closing the deal squarely without any loose ends.

As of now overall the U.S. real estate market is turned into a “Buyers’ Market” with housing prices hitting never-before low figures. Availability of first-class single family homes and other models in extremely nice neighborhoods is there. So if your timing personally is right, then it is exactly right time for buying homes in the soft market.

The MLS Listings; FSBO category listings and flat-fee brokerage listings – are terminologies connected with U.S. real estate activities.  These are channels where the home owners advertise their properties for sale with full details and photographs of the properties offered for sale.  Home buyers, particularly first-time home buyers can do well to know certain facts about home buying activity existing in real estate business.

Owning a home of your own has many advantages.  First the psychological contentment that your home is yours and you are not answerable to any one about its usage.  The facilities of home can be added, deleted or altered to suit yours and your family members’ conveniences and life-style requirements.  This is not there if you are in a rented home, where you have to get accustomed to what is available.

As a home owner you will have financial savings in computation of federal and State taxes based on your household income annually.  Generally home buying involves financial assistance extended through mortgage loans from banks and mortgage lenders.  The monthly repayment installments include principal with interest.  While computing the total annual income, the interest amounts paid on mortgage loans are deductible as allowable income not taxed.  The property tax paid by you as the home owner is also deductible.  Thus every year your tax payments get reduced on these accounts.

While searching MLS listings, FSBO category and flat-fee brokerage listings for finding a property for buying, the priority should be given to the location.  The neighborhood where the property is situated is going to be used by you after you buy the property and start living there.  Therefore a thorough search of the facilities existing in the neighborhood is necessary.  For you and your family members the new location should be convenient for commuting to your workplace; schools for kids; shopping for home needs; entertainment and recreation facilities for your family and so on.

There are a lot of assistance and guidance available for first-time home buyers. All of them can be made available, if you get the assistance of a reliable real estate agent or broker.  The guidance of a knowledgeable person like the agent is very important in finalizing the purchase deal of a home.  MLS listings, FSBO category and flat-fee brokerage listings have links for you to get service providers for every step of home buying – mortgage loans; selection of the types of interests and repayment installments; home inspection for the property intended to check up the condition; defects; repairs or rehabs needed; negotiating the sale price and finalizing the acquisition of the property without any hassles etc.

Home owners waiting for prospects to buy their homes in response to their advertisements in MLS listings, FSBO category and flat-fee brokerage listings are watching the trends obtaining in the housing markets of U.S.  The figures of home sales, median price and inventory of homes waiting for sale are fluctuating every month.  But the overall scenario shows that the worst is over.

U.S. real estate markets find these fluctuations a new phenomenon.  Over the last decade the markets kept steady without any marked ups or downs, barring the boom in home sales from 2000 to 2005.  It is a well known story now as to how the mortgage crisis, defaults by barrowers, foreclosures etc. have dramatically made the markets tumble down.  One fact remains constant.  The players in the real estate field learnt the lesson the hard way, because of manipulations and inflated housing prices to cash in the advantages of a boom market.

A home owner genuinely interested in selling the property with a reasonable price or a home buyer who is not ambitious enough to strike a steal in prices is never affected by these manipulations.  The fact is home selling or buying takes place on necessity, whatever the market trends are.

Housing properties with good neighborhood, amenities and conveniences made fairly available, schools, shopping and workplaces nearby are always saleable easily.  The home sellers know this and home buyers who search MLS listings, FSBO category and flat-fee brokerage listings give first preference for such properties.

In this background the statistical figures tended by realtor organizations are of only academic interest.  For example it is reported that in February, home sales figures in entire U.S.A. went up from 4.89 million to that of 5.03 million, a rise of 2.86%.  The figures for March are awaited. What this shows is there is a happy turn around from the bleak period.  That is in 2007 month after month, the home sales figures were going down.  Single family homes, condos and co-ops form the majority of housing property sales in arriving at these statistical figures.

Region-wise all the regions of U.S. country, barring the West are taking part in the increase of home sales – Northeast topping by percentage and South and Midwest coming equally up. Regarding home prices, the median average stands at $195,900 nationally.  Here also there is a slight upward trend shown in Northeast, while other regions showing percentage declines compared to last year.  The inventory of homes available for sale through MLS listings, FSBO category and flat-fee brokerage has also come down from the January figure of 4,160,000 to 4,034,000 in February.  So there is reason not to lose hope.

U.S. real estate has been seeing sea changes over the couple of years lately.  MLS listings, FSBO category and flat-fee brokerage listings carry advertisements of housing properties for sale, continuously for more number of months because of the soft market. Home sellers who have mortgage loans to be cleared and move out quickly have been offered a new option of “short sales” in consultation with their mortgage lenders.

The mortgage lenders who are anxious of getting back their loan amounts will be willing to help the barrower-home owners in resorting to this short sales option.  What happens is if the market price of the property goes down below the loan existing on it, the lenders can waive the difference between the sale price and the actual loan.

As the market price of housing properties are coming down in many parts of the country, the home owners are in a fix to get out of the situation by selling their homes even at a price less than its fair value and clear off the mortgage loan.  They have to work out this solution with the lending institution for handing over the sale proceeds of the property and get the forgiveness of the balance amount of loan, if any.

In this context, the Mortgage Debt Cancellation Relief Act, which has become a law in U.S., last December is a welcome measure.  According to it, the distressed home owners get relief to the extent of tax rebate.  The federal taxes will not be levied on the amount of loan forgiven by the mortgage lenders up to $2 million. But this is applicable for home owners who had obtained loan for owning their property for living and not as an investment.  Earlier this was not so and the entire sale proceeds of the property was taken into account for taxable income.

The mortgage lenders are also benefited because, if the barrower defaults repayment, they have to initiate foreclosure process to dispose of the property through public auction to get back whatever they can against the defaulted loan. This is cumbersome and a lot of properties are lying under foreclosure through out the country.  These properties are dead-stocks in the books of the lender, incurring loss of interest everyday on their capital invested and also warrant further spending of money towards their upkeep and maintenance.

The home-buyers searching MLS listings, FSBO category and flat-fee brokerage listings can also go for these short sales, where a good bargain is there.  To thus extent, short sales are a new phenomenon in U.S. real estate containing advantages for all – home owner, mortgage lender and home buyer.

The EPA – Environmental Protection Agency of the United States has sounded a warning bell for those home buyers and home sellers, who advertise their properties in MLS listings; FSBO category; flat-fee brokerage listings. The latest news is there is threat of leakage of “Radon”, an invisible, tasteless and odorless gas emission leaking into the housing properties in almost all States of the U.S.

The bad news is this gas is dangerous to cause cancer as proven in the labs. The good news is it can be prevented from entering the homes and eliminated to go out in the open, by proper safety precautions.

Basically this ”Radon” gas is emitted from underneath the earth’s surface. The uranium deposits found deep in the earth are transformed into metal – lead. There are several stages of this transformation taking place over a long period of time, but during this process inevitably there is emission of this poisonous gas. Because this gas is coming up by pressure under the surface, it gets into a home through cracks in the foundation or well water or whatever opening is there in the building touching the ground.

However it is quickly dissipated into the open air in the atmosphere. The entire ground surfaces in the U.S. States are having this potential danger. Therefore the EPA has advised the citizens to know about this gas leakage and understand the ways and means of protecting their homes. Inhalation of this gas substance by the occupants of the house may cause health problems by way of sediments in the lungs, leading to caner.

Home sellers advertising the properties in MLS listings; FSBO category, flat-fee brokerage listings should ensure that the properties are safe from this menace. A thorough checking by experts in the field is to be done to detect any possible cracks in the foundation, concrete floorings on the ground, wells and such other holes in the ground. If found any traces of “Radon” leakage into the house or outside, appropriate Radon prevention systems should be installed. This should be done prior to making the advertisement in MLS listings; FSBO category, and flat-fee brokerage listings, so that a mention in the advertisement can be made about the safety precautions taken.

Home buyers searching MLS listings; FSBO category or flat-fee brokerage listings should also be aware of this announcement by EPA and ensure that the property they intend to buy is safe from this dangerous Radon gas emission. This can go a long way in preventing many health problems of all the family members including children later on.

People who make a search in MLS listings, FSBO category and flat-fee brokerage for buying a home for the first time have encouraging news.  They can avail Assistance Programs by the government and non-profit organizations.  The help is extended with a view to lessen the burden of down-payment on mortgage loans.

The mortgage industry funding the U.S. real estate business has undergone changes.  The severe blow caused by the mortgage crisis and credit crunch in the last couple of years has made them so.  Home buyers for the first time should do well to know this. They may be interested in buying a property selected from MLS listings; FSBO category or flat-fee brokerage listings.  They may qualify for a home mortgage loan based on their resources also.

But the down payment they are required to make may be prohibitive. To circumvent this shortage, the home sellers who advertise their properties in MLS listings, FSBO category or flat-fee brokerages have a way out.  For completing the sale quickly, they enroll themselves with these Assistance Programs.  On a fee being charged, the lending institutions come to help in making the sale closed after the buyer and seller finalize the price.  Lawfully the home sellers are prohibited to get involved in such activities with the buyers. But the lending institutions evaluate the entire documents and if found viable can make payment of loans in the form of agreed sale price to the real estate agent involved in the deal.

The Federal Housing Authority is a part of the Government machinery – The Housing and Urban Development Department (HUD) doing this service mainly for home buyers. FHA extends insurance of the HUD properties, not generally exceeding a value of $250,000/- and the buyer’s as well as the interests of lender’s are protected at the same time.  In case of default of the home loan by the borrower, HUD takes up the responsibility of repayment to the lenders on FHA insured properties. It is therefore safe for first-time home buyers to use this authentic Assistance Program.

There are also non-profit organizations doing the same service, but one should be vary of the functioning. The HGPA – Home Gift Providers Association is overseeing the activities of such organizations, with a view to ensure there are no malpractices. The ethical and fair practices of such Assistance Programs are watched to help home buyers avoiding any legal wrangles later on.  As far as possible the home buyers who wish to buy their homes through MLS lists, FSBO category and flat-fee brokerage arrangements should always be cautious.

You must have noticed the “for sale” advertisements of housing properties in MLS listing services; FSBO category or flat-fee brokerage listings.  The details given there are the version of mostly the seasoned real estate agent, assisting the home seller.

As it is a basic requisite for any marketing, home sellers are helped in painting a rosy picture about the housing property coming up for sale.  It can’t be blamed.  The responsibility lies with the home buyer, to see through the narratives.  It is not that every property will contain particulars far from truth.  The point is there is chance for exaggeration or hype in the descriptions from a home seller’s angle.

So what the home buyer should do? Before making a final offer on closing price and actually finishing the buying transaction, generally they should enter into a written contract of buying making conditions for buying.  The predominant clause is home inspection.  This is to ascertain by physical inspection of the property, to cross check the details given.

A major portion of prospective home buyers who search MLS listings; FSBO category advertisements and flat-fee brokerage arrangement listings intend to buy a home for their living, at least for some years.  Some of them may wish to make an investment on the property for gaining a steady monthly income by renting.  In any case, home inspection by an expert known as “Home Inspector” is a must.  These professionals on charge basis can be sought after through varied sources – looking for them from their Associations; realtors who assist the buyers; friends or relatives who have previous experience in availing their services.

What they do is to thoroughly inspect the said property to provide the home buyer an unbiased, third party expert opinion in the form of a report. Normally it should contain every detail from the structural soundness, adherence to the government rules for construction, visible and non-visible defects found inside and outside of the property from foundation to the roof-top. All electrical and technical features of the property will be included for scrutiny.

The report as a whole will give the buyer a chance to make the right decision whether to buy the property or not.  The deficiencies that are noted in that report can be fixed, repaired or changed and the cost should be borne by the home seller because the sale price is going to be received in money by them.  The sale contract should contain this as a pre-condition for sale and it gives the buyer the option to withdraw from the deal, in case of failure.

The market fluctuations being very common in respect of commodities, bullion, silver and such other precious metals, it is not so in the real estate market.  Especially in the U.S. real estate market, for over 40 years it was trotting on even keel without any noticeable ups and downs.  Prices of properties were rock-steady for at least a year, barring differences in prices commensurate with localities. That was because the U.S. economy was in a commanding position over other developed and developing nations.

The change of scenario started from where downward trend set in the economical circles of the U.S. nation due to many political, international and ethnic developments.  Housing market being the larger proportion of any economy, U.S. real estate market bore the brunt as never before. A cycle of reactions – credit crunch, mortgage crisis, sub-prime lending fiasco, default in repayment of home loans, foreclosures and distressed sales – took place very quickly within two years period.

Home owners who had listed their properties for sale in MLS listing services, FSBO category, and flat-fee brokerage arrangements with the hope of converting their equities into money were the worst-hit lots of the above developments, ending in falling prices.  Through out the years 2006 and 2007 the fall in prices continued.

But the real estate agents are not disheartened, as they know the inner secrets of the sluggish markets and are confident that the market turning upwards is not far from now.  They support their confidence with the statistics – the total housing units in the nation are 128 million; of this owner-occupied are 75.2 million. The much talked about foreclosure properties are negligible percentage in real terms – 1.3 million household representing just 1.72 percentages of the home ownerships.  While the real estate agents admit that the fall in price of single-family homes and condos is spectacular in 2007 when compared to what they were in 2006, there is no reason to panic.

If the pricing of the property is right while advertising the sale through MLS listings, FSBO category and flat-fee brokerage arrangements the sale of the properties is assured, as evidenced in all places.  Prospective buyers are always on the look out for properties that are priced realistically in relation to their fair value.  As such home owners need not get concerned unnecessarily but instead concentrate on devising the right price of sale for their properties.

Home buyers are not interested in inventory figures, duration of lying period for sales, mortgage or sub-prime lending crisis, economical climate of the country and so on but are only keen whether the property they intend to buy gives them their money’s worth.

The home sellers in the U.S. real estate market, who have been anxiously awaiting the results of their advertisements in the MLS Services, FSBO category and flat-fee brokerage arrangements, watch with concern the recent developments in the U.S. banking services.

Banking services are the back bone of real estate activities, particularly in the buying activity of prospective home buyers.  It is no exaggeration to say that the main chunk of the income for the banks and financial institutions come from mortgage loans extended to barrowers for housing.  Home owners pay back through regular monthly installments the principal loan amount with interest, at the rates and plans they chose while borrowing.  So far as the transactions go smoothly, there is no problem for the banking institutions in re-cycling the funds to more and more new borrowers, who tap their doors for home loans.

Ever in the history of financial market, the banking service institutions have experienced a blow so huge to jeopardize their activities, as is being pampered at them over the last two years.  The mortgage crisis that lashed early in the year 2006 has uprooted the very existence of a number of renowned institutions, doing business in the country continuously well and thereby earning the trust of the U.S. citizens. There was no sign of improvement in 2007 either and on the contrary, the situation turned worse by turning out millions of home owners defaulting in repayment of their home loans.

Even though these mortgage loans are secured ones, by hypothecation of the property loaned for as immovable security, the banking institutions could not convert them into currencies immediately.  They have to wait for months, if not years, to initiate the foreclosure process in accordance with the foreclosure laws of the State.  There is no guarantee that they will get back their loan amounts in full, mainly because the foreclosure sale is looked down upon by the buyers as a distress sale.  Considerable discounts are the rule of the day for such distress sales.  The properties listed for sale as foreclosures in the MLS listing services are not attracting targeted number of buyers, as they are skeptic about the condition of the properties and also have psychological set backs in buying a property in distress.

On the other hand these foreclosure properties with low prices and available in plenty have a dramatic effect on the whole real estate market.  The prices of new and secondary homes have been pushed down heavily, hitting hard the home owners who have advertised their homes for sale in MLS listing services, FSBO category and flat-fee brokerage listings. The Banking service institutions are really in deep trouble now by the mortgage crisis, credit crunch and sluggish movement in the real estate markets.

Flat fee is a new term and has been in use for very little time now. Flat fee means a constant fee charged which is pre decided. These days there has been a tough competition among the service providers in almost all fields. Days are gone when the customer had no choice but to approach very few service providers who had a mono poly in the market. In those days a customer had to pay for the very high fees as demanded by them. But now due to the competition the service providers are cutting down on their fees to capture as much customer base as possible. Of course they have to maintain a certain level of customer satisfaction and a good customer experience as well.

These days as people want to earn more and more money they always look for alternate ways. One of the ways is real estate market. Even in the real estate industry there has been a tough competition. Every single day there is some or the other property for sale. Number of people wanting to do real estate transactions has always been on a rise and this has offered another career for people known as real estate agents. These days the real estate agents charge a very nominal fee to their customer due to the competition.

In the real estate market competition can be faced from an individual or an organization. Various organizations these days have set up their on line forums where the customers are invited and asked to give their opinion. For sale by owners also known as FSBO and Multi listing service (MLS) have their own websites depending on the locations. They charge very nominal fees to the buyers and sellers and encourage the business. Not only this they allow sellers to give as much information as possible and post them at the website thus making it very easier for the buyer to decide. At times they also give a full or a partial refund if the property is not sold on their website. All of this at a very low cost.

Due to all this tough competition the term flat fee came in to picture. Real estate agents now pre decide their consulting fees rather than charging the commission on percentage basis. They look forward to just sell the property and help the customer out.

Whatever may be the competition, customers are at an advantage all the time.