Changing Times for "For Sale By Owners"

As this real estate market begins to slow, I see more and more signs posted on properties. An agent in my office commented on this yesterday. He said, "John, I have never seen so many houses on the market and so many real estate signs around."
I keep watching the number of Days on the Market rise for everything in the multiple listing service. I also drive through neighborhoods and see, worn out, fallen down, undersized, handwritten signs that say For Sale By Owner. Seldom can you even make out the phone number.
Let me clarify that I think selling your own home is a great choice for some people. If you want your home sold in a reasonable time in this changing market you may at least want to consult a marketing expert. I don't mind helping.
The statistics from the national association of realtors listed below show some of the challenges of selling your own home.For Sale By Owner (FSBO) Statistics

Did you know?
. . . the typical FSBO home sold for 163,800, compared to $189,000 for agent-assisted home sales.
FSBO Methods Used to Market Home:
Yard Sign . . . 63%
Friends/neighbors . . . 25%
Newspaper ad . . . 44%
Open House . . . 33%
Internet . . . 24%

Most Difficult Tasks for FSBO Sellers:
Getting the right price . . . 24%
Understanding paperwork . . . 22%
Preparing/fixing up home for sale . . . 24%
Attracting potential buyers . . . 10%
Having enough time to devote to all aspects of the sale . . . 5%

Source: 2004 National Association of REALTORS® Profile of Homebuyers and Sellers

Take a quick listen to my recorded message for selling your own home. That information can be found by dialing 888-559-9686 EXT 9059

Feel free to call me with any questions regarding selling your own home.
Regards,
John Day

Seniors take advantage of Reverse Mortages

As I grow older I am more and more concerned with future earning power. What happens if I can't sell real estate in 10 years? What if I am not ready to retire? Where does the money come from? We know that social security is not a lot of security with prices of everything on the rise.
Hopefully, you have built some equity in your home. You can use that equity and stay in your home without making payments. Most people are not aware of reverse mortgages. They are a great way to create some income to make ends meet.
I have a relative that lives up north. Her home is paid for but her earning power has slowed greatly and she is the sole breadwinner. She needed a solution. A reverse mortgage from her bank solved the problem.
It's not for everyone but it certainly is an option. If you are over 62 years old you may qualify for a reverse mortgage. Check with your local bank.
Check out this article http://www.seniorjournal.com/NEWS/ReverseMortgage/5-08-12BasicsOfRM.htm

Perfect Farmland

For over 45 years I have lived in southern Maryland. Most of that time was spent in southern Anne Arundel County. An area filled with beautiful farmland and rich history.
Just this week I worked with a farmer to place his property on the market. It is by far one of the most beautiful farms in southern AA county. If anyone ever had a mind to own a perfect piece of ground this would be my choice. I have worked on and walked over and even hunted great farms in southern maryland. This farm, however, is THE MOST BEAUTIFUL FARM I HAVE SEEN. Whats so great? You need to see the way the land rolls away from the old farmhouse that is almost dead center of the property. You can see almost every one of the 200 acres from the old farmhouse.
If you know of anyone that has a desire to be king of the hill, any hill, this is it.

Interest Rates Climbing

Interest rates are on the rise. Yes but not yet at the pace we saw in the early 80's. When I purchased my first home the interest rate at the settlement table was 17 1/2%. From the time I entered into the sales contract to the day of settlement the rate went up 2 1/2%. When I hear people fret about 6% it makes me smile. Certainly 6.125 is higher than the 5.25 we have seen but it is still manageable. As this market slows down a little there are more properties staying on the market longer. Keep your eyes pealed and keep searching. You will find some sellers lowering prices to get it sold. When that happens you may have the ability to find a great home at a reasonable price and the interest rate won't seem to bad.


(October 14, 2005) -- Freddie Mac reports a jump in the 30-year home loan rate to 6.03 percent from 5.98 percent during the past week, marking a six-month high. The one-year adjustable mortgage rate rose as well, climbing to a more than three-year high of 4.85 percent from 4.77 percent last week. Mortgage rates will continue to move upward due to soaring energy prices and concerns about inflation, making it more difficult for first-time buyers to achieve homeownership and less rewarding for adjustable-rate borrowers to switch to fixed-rate products. Freddie Mac chief economist Frank Nothaft believes the 30-year mortgage rate will hit 6.4 percent next year. Source: Los Angeles Times (10/14/05); Sanchez, Jesus