Matthew Kolberg
Phone (503) 265-8270
Fax (503) 265-8290
Email:
mattkol@comcast.net
Phone (503) 265-8270
Fax (503) 265-8290
Email:
mattkol@comcast.net
Serving, Washington,Oregon,Seattle,Everett,Bellevue,Tacoma,Olympia,Vancouver,Portland,Beaverton,Tigard,Hillsboro,Tualatin,Gresham,Oregon City,Salem,Clackamas,Washington
County, Multnomah County, Coastal area, Northwest Oregon and Washington
County, Multnomah County, Coastal area, Northwest Oregon and Washington
Free Report
Pathfinders Mortgage
| Turning Dreams into Reality |
Home Owners In Trouble! The Real Estate Bubble, Rising
Interest, and Variable Rate Loans Concern Fed
Hurricane Katrina, floods, earthquakes, rising fuel prices, shrinking pocketbooks, and
now, concerns over variable interest rate loans, are discussions heard throughout the
nation.
With mounting concerns by the Fed over rising inflation, there is a serious push to
increase the current rates of interest. This may help to curb inflation, but will also have
a devastating effect for millions of homeowners who are tied to variable interest rate,
and interest only, loans. As rates go up, so do most underlying mortgage payments,
placing an even greater stress on those who want, or need to sell their property.
Many home owners are beginning to find themselves in an ‘upside down’ sales
position. In other words, decreasing home values in some areas of the country are
already leaving owners in the dire position of owing more on their property than the
current market price will bring. In addition, rising mortgage payments coupled with
slower real estate sales, are forcing more owners into foreclosure, and in some cases
bankruptcy, which is currently on the rise and heading toward one of the highest levels
in U.S. history.
In an effort to curb this combination of economic pressures, and for saving equity
wealth positions, many homeowners are now resorting to selling their property as a,
For Sale By Owner. In doing so, they are saving large portions of equity profit that
would otherwise be paid out as a real estate commission.
What many owners have discovered is that a 6% rate on a $200,000 home is in fact,
$12,000. If their equity wealth position is $24,000 on their property, then they have
effectively paid 50% of their profit to a real estate broker, not 6%! This financial
inequity is created because the 6% commission is being charged on the gross price
rather than on the net proceeds from the sale.
Add to this, the standard 2 1/2%-3% normal closing costs for each transaction, also
calculated on the gross price, and again, a home owner’s wealth diminishes even
further! To avoid this loss, an ever- increasing number of owners are opting to ‘do it
themselves.’ In an attempt to help homeowners succeed on their own, the following
five basic steps are being provided as a solid foundation in the For Sale By Owner
process:
Step #1: Determine A Fair Market Price For The Property. This can be done by visiting
a local Title Insurance Company and having them run price comparisons for ‘SOLD’
property (over the past two years) within a 2-block radius. Using ‘sold’ prices in an
immediate area will help establish a price/value range and establish a trend a
homeowner might effectively use for marketing the property.
Step #2: Connect With An Attorney and Escrow Office. One of the first connections to
establish is with a qualified real estate attorney. This attorney will be used for helping
guide the homeowner through the legal portion of the transaction and for finalizing any
Offer To Purchase (also known as Earnest Money Agreement). The best place to start
looking for a qualified real estate attorney is at the same Title Company used for
researching the property value. Larger Title Companies usually have a full service
escrow department for closing transactions. In addition, they can also provide a good
alliance with some of the better, local real estate attorneys. By choosing the right Title
Company in the initial research phase, it can prove to be a one-stop-shop for helping
solve many of the home-selling challenges.
Step #3: Find A Mortgage Lender. Now that the attorney and escrow office are lined
up, a good mortgage lender will be needed for helping to qualify purchasers and
ultimately, for financing the transaction. My recommendation is that at least two
conventional bank lenders, and one or two mortgage brokers are contacted for this
purpose. The reason for having choices is that each lender will offer different
financing packages. It is this loan diversification, which will open a wider range of
financing opportunities when working with buyer prospects.
For completing these first 3 steps, the homeowner should figure on creating one
‘Action Day’ where all research and connections are finalized. At the end of this day, a
complete sense of control and organization for the selling process should be
accomplished.
Step #4: Advertising and Marketing. Now that the attorney has been chosen (and
contact has been made), a location for escrow and closing the transaction has been
determined, and all mortgage lenders lined out, it is time to place the yard sign and
begin advertising.
There are many sign companies found on the Internet for purchasing a For Sale By
Owner yard sign, and one that may be of interest is Victory Signs at: http://www.
victorystore.com. However, for immediate service, a homeowner might also check out
the offerings and pricing from their local sign shops.
As for advertising, the most effective ad placement will be a clearly written classified ad
stating the most unique feature of the home. This targeting of the ad copy will help to
draw out the one most likely prospect that will purchase the property. When writing the
ad, it should be kept economically viable remembering that serious house hunters will
read all ads within in a column, whether they are promoted in bold type, or not!
Knowing this information can help to keep your ad costs lower.
The other most important real estate advertising to consider, is through creating a
simple flyer that will be placed in a clear plastic holder attached to the outside yard
sign. This flyer can also become an effective advertising tool when used as a handout
at all open houses.
From my own research, almost 60% of homebuyers actually locate their homes by
driving the neighborhoods where they intend to live. Realtors have known this for
years, and that is why yard signs are so heavily used in promoting property for sale. If
signs were not effective as a marketing and branding vehicle, agents and brokers
would resort to advertising only through display and classified advertising media
channels. But they don’t! So, it quickly becomes apparent this is an effective means
for marketing any property. And one you do not want to overlook.
As a final note on this subject, make sure the flyer box on the yard sign is always kept
full of flyers for the people who are driving the area. To help in creating the most
professional looking sales flyers at a reasonable cost online, a good source to check
out is: http:// www.myfsbo.com.
Step #5: Writing Your Offer. When initially meeting with a chosen attorney, the
homeowner should also ask him/her how they would prefer the initial offer to be drawn
up for a prospective purchaser? At this time, the attorney will also be able to provide a
list of what questions need answering and any other legal paperwork required for state
compliance. The attorney can also provide good initial direction for making sure
negotiations hit the most key elements when consummating the sale. This initial pre-
sale legwork helps to alleviate many future concerns. Once again, proving there is no
magic formula used for selling real estate or for writing an Offer To Purchase. What it
really boils down to is the intent of the seller and buyer for consummating a fair and
legal transaction between them, and with full disclosure.
In Summary: If you find yourself at the mercy of rising interest rates and variable rate
payment adjustments, these five, For Sale By Owner steps, can help you to move
beyond traditional marketing methods, potentially avoid foreclosure, and help save
more of your equity wealth position. Taking these steps can also help to alleviate
stress-causing unknowns from misinformation and lack of preparedness.
About The Author: Greg O. Bacon, President MXMRQ® Corporation, is a former sales
and operations manager for Coldwell Banker® Real Estate, and is the author of:
“Warrior Economics – Taking Back Your Home Selling Profits! A Complete For Sale By
Owner Program.” For more information regarding the author and this timely real estate
program go to: http://www.mxmrq.com
Interest, and Variable Rate Loans Concern Fed
Hurricane Katrina, floods, earthquakes, rising fuel prices, shrinking pocketbooks, and
now, concerns over variable interest rate loans, are discussions heard throughout the
nation.
With mounting concerns by the Fed over rising inflation, there is a serious push to
increase the current rates of interest. This may help to curb inflation, but will also have
a devastating effect for millions of homeowners who are tied to variable interest rate,
and interest only, loans. As rates go up, so do most underlying mortgage payments,
placing an even greater stress on those who want, or need to sell their property.
Many home owners are beginning to find themselves in an ‘upside down’ sales
position. In other words, decreasing home values in some areas of the country are
already leaving owners in the dire position of owing more on their property than the
current market price will bring. In addition, rising mortgage payments coupled with
slower real estate sales, are forcing more owners into foreclosure, and in some cases
bankruptcy, which is currently on the rise and heading toward one of the highest levels
in U.S. history.
In an effort to curb this combination of economic pressures, and for saving equity
wealth positions, many homeowners are now resorting to selling their property as a,
For Sale By Owner. In doing so, they are saving large portions of equity profit that
would otherwise be paid out as a real estate commission.
What many owners have discovered is that a 6% rate on a $200,000 home is in fact,
$12,000. If their equity wealth position is $24,000 on their property, then they have
effectively paid 50% of their profit to a real estate broker, not 6%! This financial
inequity is created because the 6% commission is being charged on the gross price
rather than on the net proceeds from the sale.
Add to this, the standard 2 1/2%-3% normal closing costs for each transaction, also
calculated on the gross price, and again, a home owner’s wealth diminishes even
further! To avoid this loss, an ever- increasing number of owners are opting to ‘do it
themselves.’ In an attempt to help homeowners succeed on their own, the following
five basic steps are being provided as a solid foundation in the For Sale By Owner
process:
Step #1: Determine A Fair Market Price For The Property. This can be done by visiting
a local Title Insurance Company and having them run price comparisons for ‘SOLD’
property (over the past two years) within a 2-block radius. Using ‘sold’ prices in an
immediate area will help establish a price/value range and establish a trend a
homeowner might effectively use for marketing the property.
Step #2: Connect With An Attorney and Escrow Office. One of the first connections to
establish is with a qualified real estate attorney. This attorney will be used for helping
guide the homeowner through the legal portion of the transaction and for finalizing any
Offer To Purchase (also known as Earnest Money Agreement). The best place to start
looking for a qualified real estate attorney is at the same Title Company used for
researching the property value. Larger Title Companies usually have a full service
escrow department for closing transactions. In addition, they can also provide a good
alliance with some of the better, local real estate attorneys. By choosing the right Title
Company in the initial research phase, it can prove to be a one-stop-shop for helping
solve many of the home-selling challenges.
Step #3: Find A Mortgage Lender. Now that the attorney and escrow office are lined
up, a good mortgage lender will be needed for helping to qualify purchasers and
ultimately, for financing the transaction. My recommendation is that at least two
conventional bank lenders, and one or two mortgage brokers are contacted for this
purpose. The reason for having choices is that each lender will offer different
financing packages. It is this loan diversification, which will open a wider range of
financing opportunities when working with buyer prospects.
For completing these first 3 steps, the homeowner should figure on creating one
‘Action Day’ where all research and connections are finalized. At the end of this day, a
complete sense of control and organization for the selling process should be
accomplished.
Step #4: Advertising and Marketing. Now that the attorney has been chosen (and
contact has been made), a location for escrow and closing the transaction has been
determined, and all mortgage lenders lined out, it is time to place the yard sign and
begin advertising.
There are many sign companies found on the Internet for purchasing a For Sale By
Owner yard sign, and one that may be of interest is Victory Signs at: http://www.
victorystore.com. However, for immediate service, a homeowner might also check out
the offerings and pricing from their local sign shops.
As for advertising, the most effective ad placement will be a clearly written classified ad
stating the most unique feature of the home. This targeting of the ad copy will help to
draw out the one most likely prospect that will purchase the property. When writing the
ad, it should be kept economically viable remembering that serious house hunters will
read all ads within in a column, whether they are promoted in bold type, or not!
Knowing this information can help to keep your ad costs lower.
The other most important real estate advertising to consider, is through creating a
simple flyer that will be placed in a clear plastic holder attached to the outside yard
sign. This flyer can also become an effective advertising tool when used as a handout
at all open houses.
From my own research, almost 60% of homebuyers actually locate their homes by
driving the neighborhoods where they intend to live. Realtors have known this for
years, and that is why yard signs are so heavily used in promoting property for sale. If
signs were not effective as a marketing and branding vehicle, agents and brokers
would resort to advertising only through display and classified advertising media
channels. But they don’t! So, it quickly becomes apparent this is an effective means
for marketing any property. And one you do not want to overlook.
As a final note on this subject, make sure the flyer box on the yard sign is always kept
full of flyers for the people who are driving the area. To help in creating the most
professional looking sales flyers at a reasonable cost online, a good source to check
out is: http:// www.myfsbo.com.
Step #5: Writing Your Offer. When initially meeting with a chosen attorney, the
homeowner should also ask him/her how they would prefer the initial offer to be drawn
up for a prospective purchaser? At this time, the attorney will also be able to provide a
list of what questions need answering and any other legal paperwork required for state
compliance. The attorney can also provide good initial direction for making sure
negotiations hit the most key elements when consummating the sale. This initial pre-
sale legwork helps to alleviate many future concerns. Once again, proving there is no
magic formula used for selling real estate or for writing an Offer To Purchase. What it
really boils down to is the intent of the seller and buyer for consummating a fair and
legal transaction between them, and with full disclosure.
In Summary: If you find yourself at the mercy of rising interest rates and variable rate
payment adjustments, these five, For Sale By Owner steps, can help you to move
beyond traditional marketing methods, potentially avoid foreclosure, and help save
more of your equity wealth position. Taking these steps can also help to alleviate
stress-causing unknowns from misinformation and lack of preparedness.
About The Author: Greg O. Bacon, President MXMRQ® Corporation, is a former sales
and operations manager for Coldwell Banker® Real Estate, and is the author of:
“Warrior Economics – Taking Back Your Home Selling Profits! A Complete For Sale By
Owner Program.” For more information regarding the author and this timely real estate
program go to: http://www.mxmrq.com