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| Question: My credit is bad and I have no money for a down
payment. can I still buy a home? |
| Answer: Possibly! Depending upon the depth of your credit
issues it is still possible to get financing. In fact several lenders we
deal with specialize in buyers with credit issues. Many of these have
plans that allow for 100% financing. Contact us and we can get you
pointed in the right direction today. |
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| Question: I tried selling my home on my own but I haven't had
any success. Can using a REALTORŪ really help me sell my home? |
| Answer: Yes! National surveys have been performed in recent
years and have found homes sale faster when listed with REALTORSŪ. The
reason for this is simple. When you are trying to sell your home on your
own you are basically showing people your home not knowing if they are
"nosey neighbors" or serious buyers. When using a REALTORŪ your home is
typically shown only to serious pre-approved buyers. Also by listing
with a REALTORŪ your home is listed in the local MLS (Multiple Listing
Service) and is available for showing by many agents in the area.
Depending upon the area you are in you could actually have hundreds
of qualified agents working to sell your home for you. |
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| Question: Won't I make more on my home if I sell it
myself? After all I will have to pay a commission to my REALTORŪ. |
| Answer: Actually No!
The median
for-sale-by-owner (FSBO)
selling price in 2004 was 15.4 percent less than the median
agent-assisted transaction price. It appears that sellers wanting to
save money by not using an agent are losing money in lower sales prices.
The median price of
FSBO
sales in 2004 was $163,800 compared with $189,000 for agent-assisted
sales.
Source realtor.org |
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| Question: I tried listing my home with a REALTORŪ in the past
and all they did was put a sign in the yard. The only other time I heard
from them was when it was time to renew the listing agreement. Do all REALTORSŪ work like
this? |
| Answer: We won't comment on other REALTORŪ practices but we
will tell you what our company will do for you. Please read our page for
sellers HERE. We are not
in business to put a sign in your yard and wait for calls. We are
professionals at marketing homes. |
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| Question: Why should I buy a home when I can rent for the
same monthly payment? |
| Answer: If you are planning on only staying in a home for
a year or less then renting might be the best solution for your
situation. If, however, you are planning on staying in your home over 1
year then you are throwing your monthly rent payment away and you have
nothing to show for it. By owning a home you can most likely sell your
home and at least get your money back. Even if you don't make a profit
you have lived rent free for that time period. In many cases home owners
will update the home in the process and the home will bring more money
providing the seller with a profit. |
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| Question: Why do REALTORS charge so much? |
| Answer: If the brokerage fee is 6% on a $100,000 home then
the commission paid is $6,000. Granted this is a lot of money, the
REALTORŪ typically doesn't get all of that fee. In many real estate
transactions the commission is split between the listing office
(seller's agent) and the selling office (buyer's agent). Based on a
50/50split this provides each office with $3,000 of the commission.
After this the Office will split the commission between the office and
the REALTORŪ. Using 50% as a split this provides the REALTOR with $1,500
in commission. Now take into consideration that out of the $1,500 the
agent gets this person has to pay for fuel, office supplies, franchise
fees, annual membership dues, advertising, and access to lockboxes and
MLS systems. After paying $500 for these expenses your REALTORŪ has now
received $1,000 for selling your home. If your home was on the market 40
days this would be $25 per day or $3.13 per hour if the agent were to
only work on selling your home 8 hours a day. This is almost 1/2 the
current minimum wage. Successful agents however market homes 24/7.
Successful agents are always thinking of ways to better market a home
and mentioning the home to every person they meet. |
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