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By-Owner Homes Sales Go Electronic, Thanks To Local Firms
As Technology continues to revolutionize every aspect of our lives, we need to keep abreast of change.
The following is an article which appeared in the Tampa Bay Business Journal which might be of interest to you.
"ONLINE: Web site listings offer virtual tours, ability to bid.
Homeowners who wanted to sell their own property used to have to endure a lot of headaches in the process.
First, there would be plenty of calls from prospective buyers who either failed to keep appointments or simply changed their minds after taking a look around. Eventually, the owner would become worn down after a few months and contact a real estate agent to do the job.
Now, they can put a virtual for-sale-by-owner sign on the Internet, with the help of a few Tampa Bay area companies.
FloridaForSaleByOwner.com a St. Petersburg-based company started by two former Re/Max agents, launched its Web site June 15, offering an array of services including sales advice and virtual tours of clients' homes.
Digital photographs posted on the site allow prospects to take an initial look at the home's interior before deciding to set a time for an in-person visit.
"If they call after (viewing the site), it's a qualified lead," said David Maso, President, who left Water's Edge Realty last spring to start the site. "It's a huge time-saver for a homeowner. Buyers also love it. They don't have to spend time driving around town."
Of the 90 homes placed on the site so far, 22 have been sold or
placed under contract, according to Maso.
I'm selling It Myself Inc. of Lutz has launched a similar site, http://www/selling-byowner.com, that offers additional tools and services not normally available through traditional real estate agents.
The site can be used as one more tool for do-it-yourself home sellers, besides the usual front-yard signs and classified ads.
Statistics show that only about 20 percent of for-sale-by-owner sales are successful.
Maso said homeowners have become more educated about marketing their own properties during the current computer age, in an effort to save the 6 percent commission normally paid to a real estate agent.
That fits well with the increasing number of buyers who use the Internet to find a dream home, along with a favorable mortgage.
"We feel like we have a much more savvy audience out there today," Maso said. "They don't need anyone to hold their hand for 6 percent of equity."
Along with keeping the commission, some owners may stand to make a little more.
The sale-by-owner webmasters claim their own fees are far less that the commission homeowners would normally pay.
FloridaForSaleByOwner.com charges an up-front fee of $679. SellingByOwner.com up-front fees are $459. Some owners were able to sell their homes before the ads were even published.
I'm Selling It Myself Inc. is willing to work with real estate firms for owners who need additional help selling their home. The firm will repay his company's fee to the client once the home is sold. "Fortunately, we haven't had anyone to refer to them yet."
ARMANDO'S CORNER
Is there an alternative to
Bi-Weekly payments?
If you've recently taken out a mortgage, companies offering bi-weekly mortgage payments for a fee have probably bombarded you. This fee typically ranges from $295.00 to $400.00 plus a monthly fee of anywhere from $5.00 to $10.00.
Bi-weekly mortgage payments, half your current principal and interest payments, equals one additional mortgage payment each year. The result cuts your 30-year mortgage to about 23 years and saves you seven years interest. That's a huge savings, however you can do this on your own without having to pay anyone.
Here's how: Divide your current principal and interest payment (only) by 12 - also referred to as your P & I. This can either be found in your monthly mortgage statement or on the copy of the promissory note you signed when you closed on your home. Then simply add that amount to your regular mortgage payment clearly marking it to be applied to principal.
Example: P & I = 1200 ¸ 12 = $100.00 Add $100 to your payments monthly and you will achieve the same results, but you'll have paid $0.00 in fees.
We are going to expand our newsletter by adding in sections on technology, books, and local real estate and would love to hear from you about what interest you. E-mail your ideas to us
WHAT IS FHA LOAN?
The federal Housing Administration does not make mortgage loans directly. It insures loans made by private lenders to homebuyers. Lenders are then more likely to make riskier loans because they are guaranteed they will be paid if the borrower defaults on the mortgage. The program was developed by the government about 60 years ago to help more Americans become homeowners.
MAKING THE PROCESS WORK BETTER…
The Department of Housing and Urban Development, known as HUD, has new initiatives designed to better protect people who buy homes with FHA-backed loans from buying a homes with FHA-backed loans from buying house with major structural defects. They include:

- Better educating consumers to explain what appraisers do and to urge the hiring of a home inspector as well.

- Testing appraisers to make sure they are qualified to perform FHA appraisals. Now a lender can choose any state-certified appraiser.

- Requiring appraisers to fill out more paperwork, describing the physical condition of the home in more detail. Before they were required only to note that structural deficiencies exist. Now they will be required to specify deficiencies.

- Disclosing all detected home defects to home buyers on a new form written in plain English, to help borrowers understand what defects were found and whether they need a more thorough inspection.

- Establishing a computer system that allows HUD to collect appraisal data electronically and track trends in appraisal quality. It should be in place by the end of the year.

- Stricter enforcement to suspend poorly performing apprises from working for FHA

 

 

 

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