Should You Go FSBO?

Pronounced “fizzbo,” an FSBO (for sale by owner) is a Realtor acronym for a property that an individual is looking to sell on their own.

To a certain extent, the notion may be driven by tough economic times. With equity evaporating in many markets, it might be a necessity for some sellers to go the DIY route. It is a question brought about by the perception of high cost for very little real work and a nagging sense that, hey, maybe I could do that.

Maybe you can. Maybe you shouldn’t.

The market, motivation, familiarity with the process, knowledge of real estate law, disposition, time, and resources should all be considered before you begin the process of selling your own home.

The Market

They don’t call them buyers and sellers markets for nothing, and, to a large extent, market conditions are often mostly local. A gripping nationwide recession, industry-wide job losses, and lenders’ unwillingness to lend, tend to have nationwide implications. But, even at the darkest of times, there are pockets of prosperity where demand for housing is high. In most cases, even if you over or under estimate the price, the market will eventually catch up to you.

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78% of First-time Home Buyers Say Now Is Good Time to Buy

Century 21 Real Estate LLC, the franchisor of one of the world’s largest residential real estate sales organizations, announced the results of its recently commissioned first-time home buyer survey. The survey found that more than three-quarters (78%) of potential first-time home buyers say that now is a good time to buy a home, despite widespread concern about the economy. Out of the 1,000 prospective U.S. first-time home buyers surveyed for the CENTURY 21 First-Time Home Buyer Survey, 68% think now is a better time to buy than six months ago. Prices are the driving motivation for potential first-time home buyers with more than eight out of ten first-time home buyers (85%) saying they consider current home prices affordable and 73% citing that taking advantage of current prices is a major factor in their decision to buy. Interestingly, potential first-time buyers are still split between “being willing to consider an offer now” (42%) and “waiting for prices to go down before they seriously consider making a purchase” (48%).

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"Broker price opinions" may be depressing property values

Are lowball valuation estimates on short sales and bank-owned foreclosures artificially depressing property values in neighborhoods across the country?

Growing numbers of appraisers and consumer groups believe the answer is yes -- and are demanding that either Congress or state regulators crack down. Their complaints focus on what are called "broker price opinions," or BPOs, that substitute for appraisals.

Unlike standard property valuations performed by licensed appraisers -- which can run to hundreds of dollars -- BPOs often cost $50 and are performed by real estate agents who may have minimal or no appraisal training and are subject to no regulatory oversight. Realty agents defend BPOs, contending that their extensive knowledge of local market trends equips them to render accurate estimates.

BPOs have become a booming business as foreclosures and short sales have risen sharply. When banks that own foreclosed houses need to put values on them for resale, increasingly they order BPOs that can be delivered quickly at rock-bottom fees.

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HouseMaster Highlights Red Flags for Home Buyers during National Home Inspection Month

HouseMaster, a North American inspection franchisor, reminds buyers and sellers that a professional home inspection is critical when buying or selling a home. As April marks National Home Inspection Month and the start of the peak home buying season, HouseMaster is providing consumers with a simple list of “red flags” to watch out for during the home buying process. Each of these red flags could be a sign of significant issues and defects and each should be thoroughly evaluated by a professional home inspector before potential buyers make an offer on the home.

These are the red flags that home buyers should look out for:

Numerous extension cords: This could be a sign of an outdated electrical system. Today’s electrical needs have grown significantly and as a result the home could require an entire electrical upgrade to meet these new demands. A professional home inspector will be able to assess whether a new panel and wiring is needed or additional receptacles will need to be installed.

Low water pressure or gurgling: If you turn on the faucet and the pressure is low, it could be evidence of a problem with older galvanized piping or inadequate piping. A professional home inspector will indicate the type of piping and estimated age and determine whether or not an entire new plumbing system is required. In many instances, sections of piping can be replaced on an as needed basis to correct the problem.

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What Mortgage Rates Will Do Over The Next 30 Days

I am a regular participant in the Bankrate.com Mortgage Rate Trend survey and this week's survey is now available.

The Bankrate.com survey is for conforming mortgages. It does not apply to FHA mortgages, VA mortgages, jumbo mortgages, or foreign national mortgages. For rate quotes, email me directly.

The group's 30-day prediction for mortgage rates:

• 50% predict mortgage rates will increase
• 25% predict mortgage rates will decrease
• 25% predict mortgage rates will remain unchanged

I am predicting that rates will increase over the next 30 days. My prediction may not be appropriate for your individual situation and it may be wrong, too.

Here's what I told Bankrate.com:

"The summer mortgage rate run-up is underway."

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Featured Homes in Almaden Valley 032909

Cross Springs, $1,150,000, 4 Bedrooms, 3 Bathrooms, 3286 SqFt
Casaba Creek, $1,130,000, 4 Bedrooms, 2.5 Bathrooms, 2713 SqFt
Olive Branch, $1,110,000, 4 Bedrooms, 3 Bathrooms, 2335 SqFt
Diablo Way, $889,000, 3 Bedrooms, 2 Bathrooms, 2066 SqFt
Via Fortuna, $868,000, 4 Bedrooms, 2.5 Bathrooms, 2035 SqFt
Fleetwood Dr., $859,000, 4 Bedrooms, 3 Bathrooms, 2191 SqFt
Almaden Rd., $699,000, 4 Bedrooms, 2 Bathrooms, 1661 SqFt
Flowering Plum, $689,000, 3 Bedrooms, 2 Bathrooms, 1789 SqFt
Cloverhill Dr., $679,000, 3 Bedrooms, 2 Bathrooms, 1468 SqFt
Martwood Way, $585,000, 3 Bedrooms, 2 Bathrooms, 1088 SqFt

Contingent Contracts for Sale

Although it is generally better to first sell before buying another home, sometimes the market conditions are right to buy before you sell. Home buyers who decide to buy before selling often write a contingent contract to purchase, meaning the buyer's home must sell before the buyer is obligated to complete the purchase transaction.

Because contingent contracts are most often a good deal for a buyer and a riskier solution for a seller, many state Realtor associations have devised legal documents that sellers and buyers can use to address contingent contract situations and protect the rights of both parties.

The California Association of Realtors created form COP. Many other states utilize similar language. However, bear in mind that your own state requirements might differ from those of California. California procedures are discussed in this article.

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Featured REO Properties 032909

Pomme Ct., $473,900, 3 Bedrooms, 3 Bathrooms, 1731 SqFt
Paiute Ln., $472,900, 4 Bedrooms, 2.5 Bathrooms, 1757 SqFt
Mabury Sq., $459,000, 3 Bedrooms, 3 Bathrooms, 1699 SqFt
Woodland Ter., $454,900, 4 Bedrooms, 3 Bathrooms, 2232 SqFt
Rusch Pl., $451,250, 5 Bedrooms, 2.5 Bathrooms, 1811 SqFt
Herlong Ave., $449,900, 4 Bedrooms, 2 Bathrooms, 2186 SqFt
Burdick Way, $439,000, 4 Bedrooms, 2 Bathrooms, 1769 SqFt
Parc Place Dr., $429,000, 3 Bedrooms, 2 Bathrooms, 1530 SqFt
Hillbright Cir., $420,000, 4 Bedrooms, 2 Bathrooms, 1495 SqFt
Buena Point Ct., $409,000, 3 Bedrooms, 2 Bathrooms, 1216 SqFt

Featured Homes Near Monta Vista High 032809

Mercedes Rd., $2,150,000, 4 Bedrooms, 3 Bathrooms, 3000 SqFt
Palm Ave., $1,998,000, 5 Bedrooms, 3 Bathrooms, 3771 SqFt
Lauretta Dr., $1,585,000, 4 Bedrooms, 2.5 Bathrooms, 2342 SqFt
Stokes Ave., $1,098,000, 4 Bedrooms, 2 Bathrooms, 1890 SqFt
Gardenside Cir., $799,000, 3 Bedrooms, 2.5 Bathrooms, 1704 SqFt
Park Villa Cir., $658,000, 2 Bedrooms, 2 Bathrooms, 942 SqFt

Answers to Questions You Ask a Mortgage Broker

After you interview your mortgage broker or lender and ask the tough questions, what do you do with the answers? How do you know if the answers you receive are applicable to your situation? Here are the answers acceptable to most borrowers.

1. Answers to Which Type of Loan is Best

Look at the point spread between the interest rates offered on fixed-rate mortgages versus those on adjustable-rate mortgage loans. If the difference is small, say, around .5%, you would be better off with a fixed-rate mortgage.

Interest-only loans are a popular option if you decide to stay in the property for a long period of time, more than five years. Otherwise, the property may not appreciate enough to provide you with adequate equity to sell if you choose this option for a short-term residency.

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Featured REO Properties 032809

Flintwell Way, $382,500, 4 Bedrooms, 2.5 Bathrooms, 2077 SqFt
Amaryl Dr., $361,000, 4 Bedrooms, 3 Bathrooms, 1726 SqFt
S 21st St., $344,900, 4 Bedrooms, 2 Bathrooms, 1544 SqFt
Pepper Tree Ln., $336,775, 3 Bedrooms, 1 Bathroom, 1492 SqFt
Rubion Dr., $324,900, 4 Bedrooms, 2 Bathrooms, 1380 SqFt
Locust St., $320,000, 3 Bedrooms, 1 Bathroom, 1400 SqFt
Gawain Dr., $314,900, 4 Bedrooms, 3 Bathrooms, 1509, SqFt
Bayou Dr., $312,900, 4 Bedrooms, 3 Bathrooms, 1346 SqFt
Turquesa Ct., $309,900, 4 Bedrooms, 2 Bathrooms, 1207 SqFt
Harmony Ln., $302,900, 4 Bedrooms, 2 Bathrooms, 1458 SqFt

Walking away from mortgage is costly

Call it the fast unraveling of the American dream.

Americans are losing their properties at an alarming rate. The national foreclosure rate now stands at 3.3 percent, and more than 11 percent of all mortgages are either delinquent or in foreclosure, according to the Mortgage Bankers Association.

In most cases, homeowners end up in foreclosure because of a job loss or a gimmicky mortgage with a rate that resets so high the homeowner no longer can afford to make the payment.

However, some homeowners who can afford their mortgage -- even if they struggle to make the payment -- may be tempted to abandon their dwellings simply to get a financial fresh start.

Such a decision can have dire and lingering financial ramifications, experts say.

"Unfortunately, people can often be most victimized when they're scared about their financial well-being," says Stephanie Bittner, community education and outreach coordinator for Consumer Credit Counseling Service of Delaware Valley.

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Renters get foreclosure relief

It's every renter's worst nightmare: To move into a home or condominium with affordable rent only to find out that the owner has lost the property in foreclosure. The rent money and security deposit are gone, and chances are good that the bank that now owns the property will evict the tenant even if the rent has been paid.

Such sudden evictions have been on the rise due to the dramatic increase in home foreclosures across the U.S. But some tenants will have other options now that Fannie Mae and Freddie Mac have introduced new programs that let renters (and in Freddie Mac's case, former homeowners) continue to occupy the home after foreclosure.

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Survey: Households Say Now Good Time to Buy

More than three-quarters (78 percent) of potential first-time home buyers say that now is a good time to buy a home, despite widespread concern about the economy.

Out of the 1,000 prospective U.S. first-time home buyers surveyed in early March for the CENTURY 21 First-Time Home Buyer Survey, 68 percent think now is a better time to buy than six months ago.

Prices are the driving motivation for potential first-time home buyers with more than eight of ten first-time home buyers (85 percent) saying they consider current home prices affordable and 73 percent citing that taking advantage of current prices is a major factor in their decision to buy.

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Property for Sale: 1176 Erin Way, Campbell, CA.

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Get your own

Need More Room? Take A Look At This Wonderful Three Bedroom Ranch Home In The Desirable Campbell Area, Cute And Cozy, Free Flowing Open Floor Plan, Tastefully Remodeled, Tile Flooring In Living Room, Family Room, Dinning Room And Kitchen, Kitchen Has Granite Countertops, Recently Installed Cabinets, Central Air Conditioning, Central Forced Air Heat, Inside Laundry Area, Wood Burning Fireplace In Family Room, Some Laminate Floor, Separate Family Room, Living Room/Dining Room Combo, Composition Roof, Over Sized Lot, Sprinkler Front And Back, Easy Accessible To Shopping, Employment, Entertainment, Freeways, Garage Conversion And 2nd Bathrooms Permit Unknown, Asking $750,000

6 Landscaping Tricks That Wow Buyers

Landscape designer Michael Glassman has cooked up a recipe for guaranteed curb appeal.

1. Add splashes of color. With every changing season, a landscape should provide a new display of colors, textures, and fragrances. "It’s best to use one or two and repeat them," Glassman says. Example: white iceberg roses that bloom in spring, summer, and fall as a backdrop; in front, a contrasting punch of purple salvia or lavender that will flower at the same time; and as an accent, a crape myrtle tree that provides changing leaf colors in fall and interesting branches come winter.

2. Size trees and shrubs to scale. These should be planted in the right scale for the house so that they don’t block windows, doors, and other architectural features on the home’s facade. A large two-story house can handle a redwood, Chinese pistache, sycamore, or scarlet oak, but a one-story cottage is better paired with a flowering cherry, crabapple, or eastern redbud. Too many trees cast too much shadow and cause potential buyers to worry about maintenance and costs.

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Featured REO Properties 032709

Palmview Way, $299,900, 4 Bedrooms, 2 Bathrooms, 1250 SqFt
Conti Ct., $299,000, 3 Bedrooms, 2 Bathrooms, 1180 SqFt
Bermuda Way, $295,000, 5 Bedrooms, 3 Bathrooms, 1810 SqFt
Palm St., $269,900, 4 Bedrooms, 2 Bathrooms, 1296 SqFt
Brushcreek way, $264,900, 3 Bedrooms, 2.5 Bathrooms, 1508 SqFt
S 12th St., $247,000, 2 Bedrooms, 1 Bathroom, 1230 SqFt
Excalibur Dr., $229,900, 3 Bedrooms, 2 Bathrooms, 1242 SqFt
Bikini Ave, $227,900, 3 Bedrooms, 2 Bathrooms, 1061 SqFt
Primm Ave., $211,000, 3 Bedrooms, 2 Bathrooms, 1236 SqFt
Candler Ave., $204,900, 4 Bedrooms, 2 Bathrooms, 1154 SqFt

Featured Homes Near Lynrbook High 032709

Danbury Dr., $980,000, 3 Bedrooms, 2 Bathrooms, 1371 SqFt
Castleknoll, $842,500, 3 Bedrooms, 2.5 Bathrooms, 1532 SqFt
Buckthorne, $799,000, 3 Bedrooms, 2 Bathrooms, 1472 SqFt
Clarendon St., $798,000, 3 Bedrooms, 2.5 Bathrooms, 1448 SqFt
Elmbridge Dr., $769,000, 3 Bedrooms, 2 Bathrooms, 1214 SqFt
Forest Knoll, $659,000, 2 Bedrooms, 2 Bathrooms, 1042 SqFt