Posts Tagged ‘real estate market’

Selling a new home versus an older home has it own set of challenges. Normally with older homes owners need to spend time and money making minor to moderate repairs before putting the home on the market. Sporadically, there are major repairs that need to be addressed before this can be done or there needs to be some concession in price. With newer homes this is unusual. Things are usually still in fine condition; paint is new, the carpet is not worn, and things aren’t falling apart. When selling your new home your efforts will need to be focused elsewhere.

Determine Minimum Selling Price

If you are selling a new home then chances are something unanticipated has happened. Most families stay in a home for a long period of time before selling so they build equity and pay down the mortgage. Real estate is a wonderful investment because typically over time its worth appreciates. Unfortunately if the home is new then it is likely that not much equity has built up while still having a high mortgage balance. No homeowner wants to experience a loss when selling their home so in cases like this it is important to determine what your minimum selling price is. Take into account mortgage payoff, closing costs, realtor commission, and any other fees that are tied to selling. Depending on the real estate market you may not make a bundle on the deal but at least you won’t lose your shirt.

Preparing Your Home

Even though your home is in good conditions don’t neglect the small stuff. Take the time to thoroughly clean the inside of your home and remove as much clutter and debris as possible. Do this on the exterior as well, trim and mow the lawn and cut back any over grown bushes and shrubs. Make your property look good, inside and out. Since you may not have the flexibility in negotiating price you are going to have to do everything you can to get the most out of it. The price, condition, and amenities are going to be the focus of selling your home.

What Are Your Homes Strengths

Sit down and put together a list of your homes strengths and amenities, such as; hardwood floors, granite counter tops, new furnace, new roof, and so on. Take pictures and include the information on a flyer. When selling a new home you can expect to get more money because it is in good condition but if your profit/loss margin is narrow you need to emphasize the strengths your home has to offer. Go beyond the home itself and look at the schools and neighborhood. Anything that can be a selling point should be considered and find resourceful ways to present this information to buyers.

Develop a Marketing Plan

As you draw closer to putting your home on the market you may consider using a local real estate agent. In this case he or she will take care of the marketing for you but if by chance you can’t afford to utilize their services you will be forced to market the home yourself. To get started, place a “for sale” sign in your yard along with a color flyer with pictures and high points of your home. Contact the local newspaper and take out an ad. Post your listing on real estate sites on the internet and lastly, tell as many people as you know that your home is up for sale.

Hold an open house as often as you can and expect potential buyers to bring representation so be prepared to work with at least one agent. Stage your home so it takes on a warm cozy feel and make your home appear spacious.

Yes, there are hurdles to overcome when selling a new home but it is not by any means impossible. Know what to expect and plan accordingly and you will be able to get through this while getting the best price possible for your home.

Jason is a life long resident of Boise, Idaho and provides real estate information on the Boise Idaho Real Estate Market for buyers, sellers, and investors. Visit BoiseRealEstateInfo.net to get started.

Author: Jason Deines
Article Source: EzineArticles.com
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As 2009 enters its fourth quarter, many people are asking “Should I buy a house now or wait?”  The National Association of Realtors is running advertising right now asking the question, “Why are you sitting on the fence?” For the cynical out there, you may think that this is a shameless way for the Real Estate industry to drum up business. After a few lean years real estate agents are hungry for a sale, you may think. But still you ask, should I buy a house now or wait? 

Well, while it may be true that some agents have dropped a few pounds and have had to tighten their belts just like everyone else, the good agents are keenly aware of the great deals that are out there. They are the ones to turn to help you determine should you buy house now. They are on the phone, sending emails, and educating their clients about what is happening in the industry and in the real estate market.  

There are fantastic deals available, and the smart money is investing in these deals as a way to expand their wealth base and take advantage of the opportunities right now, while others are still sitting on the fence. So when you think about should I buy a house now or wait, think about what adding a well-priced home to your financial portfolio will mean to the future wealth of your family.  

Is this the bottom of the real estate market? Many want an assurance of this before they decide should I buy a house now or wait. Well, nobody knows for certain, and pundits on both sides of the issue make a strong case for whether or not we have seen the bottom. While it’s interesting to hear what “they” have to say, at the end of the day it is your family’s financial well being and quality of life that should determine should you buy house now. Most often, the bottoms are not recognized until we are well on our way back up and many opportunities are missed.  

Affordability: Across the nation for various reasons, prices have declined. The counties that experienced the greatest increases in prices are now experiencing drops in prices which are starting to look like great buying opportunities. So ask yourself, “Should I buy a house now or wait until things are less affordable?”  

Low Interest Rates: True, lending standards have tightened up; however, there are still loans to be made. Buyers are taking advantage of conforming and FHA loans where rates can still be found in the 5% interest range. With FHA financing available in the Orange County area, the increased loan limit of $729,750 is looking especially attractive. Even borrowers with a credit score as low as 580 can consider a home purchase in today’s market. It is best to talk to your lender or mortgage broker to get the most recent information on the loans available to you. So ask yourself, “Should I buy a house now or wait until interest rates increase?”  

Government Incentives: Don’t miss out on this one. Many homeowners have claimed that it is the $8000 tax credit offered for 2009 that prompted them to take the step into home ownership. This tax credit expires December 1, 2009 so don’t wait if you want to qualify for this benefit. So ask yourself, “Should I buy a house now or wait until the tax credit expires?”  

Mortgage Protection Programs: For those that may be concerned with the viability of their employment, there could be a program to assist with your mortgage payment if you become unemployed. The California Association of Realtors (C.A.R.) offers the Housing Affordability Fund Mortgage Protection Program [http://www.lagunabeachrealestatemarketblog.com/2009/10/02/should-you-buy-a-house-now-or-wait] for first time home buyers who lose their jobs due to layoffs. There has also been mention of some lenders that are offering similar programs so be sure to ask your loan specialist about this option. Also, another insurance program that has always been available is through disability insurance which applies if you become disabled. Be sure to check out all your insurance and “safety net” options so that you can weather out the storm of any unforeseen event. So ask yourself, “Should I buy a house now or wait until my job situation changes?”  

Choosing to live the life you want in an area you choose: Do you love your neighborhood, your school district, your commute, your view, your community, the size and “feel” of your house? If you cannot answer with a strong “Yes!” to any of these questions, then now may be the perfect time to step up and live the life you’ve always dreamed of. For the coastal communities of Orange County and Laguna Beach, that means waking up to the smell of the ocean and cool ocean breezes; a year-long temperate climate; great restaurants, entertainment and schools; a short drive or walk to the beach to surf or sun. It’s a lifestyle choice…is it yours? Ask yourself, “Should I buy a house now or wait until I’m ready for the retirement home?”  

Ready to get the latest information on market trends? Getting the right information on the housing tax credit and market trends from a Real Estate Expert that has in-depth knowledge of the Laguna Beach Real Estate Market and the South Orange County Real Estate Market, as well as the integrity to put your interests first is important. Hillary Caston is such as agent. Her no-nonsense style and exceptional negotiating skills have earned her the reputation of the “go to” person for intelligent real estate advice. Visit her site at: http://www.TheCoastalPropertyExperts.com to see all the latest available properties.

Author: Hillary Caston
Article Source: EzineArticles.com
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As a professional furniture removalist, we observe some great and some not-so-great arrangements that people make when selling a new home. We see some amazing things when they undertake a local furniture removal or an interstate furniture removal, and that includes some great initiatives, and also some big mistakes when they are selling their home. 

Nonetheless, the goal of this article is to help you resolve a particular issue may be facing – selling a home, and it is our hope that you will find this informative and useful.

There are many options and roads you can take when it comes to moving, but the goal of this article is to provide you immediate assistance in your current challenge. Always remember that knowledge is key, and we hope to impress that upon you and that you will utilize these tips to successfully sell your home in the current market. 

Take it Slow  

Don’t expect for a fast sale in today’s real estate market. These days, it is more difficult than ever to sell a house. True, there are many investors ready to buy low and sell high, hold and collect rental income, etc. But the real estate market is going down and there are not too many signs of hope for an augmentation just yet. Sellers are waiting longer than ever before they are putting their homes up on the market. So the question remains: How will you be able to attract buyers to your home? Follow these tips on how to increase your home’s exposure in this extremely tight real estate market. 

Selling at the Right Price 

Price your home correctly. More often than not, your house isn’t worth as much as you would think. You can only sell your house for whatever amount the buyer is wiling to purchase it for. Get a truthful home appraisal before making your house available on the market. Sometimes, people will drive around an area and check out what’s for sale before pricing their own homes so that they keep within that neighborhood range. You can also obtain this information either from a real estate agent or court house records. Web sites will also provide access to instate appraisal sites. So remember, the number one step to selling your home is to price it fittingly. 

Choosing the Proper Advertising Venues 

Then, be certain your house’s availability is advertised online. Nowadays, buyers will research on the Internet first before going out to actually see the place. If you don’t advertise on the Internet, you will be neglecting a huge amount of potential buyers. Many web sites allow you to list your home for free of in exchange for a tiny fee. Have your real estate agent advertise your home online. You will be astounded at the number of people who would call or want to see your home if you use this medium to advertise.

Selling your home will take time, research, patience, and knowledge of homebuyer mentality. The art of selling is complex and thus, finding a trustworthy, reliable, and top performing real estate broker is one of the first things you should do. The tips above are all important as well, and of course, it goes without saying that there are plenty more. But for now, it’s imperative that you realize selling a house means pricing and advertising in the appropriate fashion.

Jim Baker from Magic Movers Furniture Removals has written many published moving tips and articles on both local furniture removals and interstate furniture removals. These have been published around the world. There are many other articles and resources helpful for any move at http://www.magicmovers.com.au and lots of other moving tips and resources at http://www.magicmovers.blogspot.com

Author: Jim Baker
Article Source: EzineArticles.com
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I still remember buying my first apartment. I didn’t know anything about the real estate market, or what I should be on the lookout for. The entire purchase decision was based on my emotions towards the apartment, and the surrounding area. However, as timed passed on and I began to learn more about the real estate market, I quickly discovered that the purchase was not as good as it had at first seemed.

Buying property, especially when it is your first apartment or house, can be complex and time consuming. Many people see it as an important investment because they define it as an investment for a lifetime. After all, you will most likely live in it. That was what I also thought back then. However, as timed went on, I learned that buying property can also be a financial investment. It all depends on what you are buying the property for: To live in it, or to generate a passive cash flow.

When buying a house or an apartment, avoid basing your decision solely on the same standard I did. Namely looks. It is important to consider other factors as well. For instance financial risks and benefits, the market, cash flow and tax laws, to name a few. Financial factors are important and must always be considered. You should also take a closer look at both the pluming and electric system. After all, repainting the apartment will only costs a few hundred dollars, while changing the entire electric system can cost you more than $30.000. Don’t become a victim to these mistakes. You will regret it.

The decision to buy a property should only be done after a due consideration of all financial aspects. There are two main financial analyses that you need to conduct, which will help you decide on whether or not to buy a house or an apartment of your own.

Buy Vs Rent
A good way to start the decision making process is to conduct a buy Vs rent analysis. It is a simple financial tool called the Net Present Value (NPV), which you need to use to find, whether renting or buying, is cheaper. The NPV of the house is calculated and equated to monthly figures, which can then be compared with the rentals. There are many NPV calculators you can use for free on the Internet. Just type “Net Present Value Calculator” into your search engine. Except for emotional and social reasons, if you analysis tells you not a buy a house, it may not be worth taking all the trouble to buy one after all.

Financing the purchase
Have you saved up enough money for the down payment of the property? Can you pay the monthly installments for the mortgage? These are questions you need to answer before you decide to buy. Even if you have decided on a budget, do a recheck and add all other expenses that might have been missed. You need to account for maintenance and property tax as well. Do the analysis systematically and on paper so that you get to see all the figures. Only buy if you are convinced that you can pay off the mortgages without defaulting.

Buying your first house or apartment is a dream comes true for most people. Some people see it as an investment in their lifestyle, while others see it as a financial investment. No matter your reason, understanding both the financial and non-financial parameters is vital. It is up to you whether you choose to invest in your current lifestyle, or the one you want for yourself in the future. With that being said, you should now be able to avoid the mistakes I did, and embark on a real estate adventure of your own.

Click here to read the entire article for free.

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Author: Oyvind Eriksen
Article Source: EzineArticles.com
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Many homeowners on Long Island are pondering whether or not they should sell their homes now or “wait it out”. I want to discuss a few factors that may aid in this decision. These factors may also shed some light into why it’s so important to choose a competent real estate agent.

During the years between 1999 and 2004/2005, the real estate market, especially on Long Island, realized a tremendous upsurge in appreciative values, as the prices of homes could see as much as 30% appreciation in 12 months. In this article I want to feature the “real estate roller coaster”. This is a graphic that some pretty smart people put together in order to trace the trends of real estate for the past 110 years. You can view the coaster at google.com – http://video.google.com/videoplay?docid=-2757699799528285056.

Now you have to try and stay with me on this. Toward the end of the roller coaster, you’ll notice an incredible incline that never seems to end. It is the steepest incline and the longest of the entire roller coaster. Unfortunately, we’re at the end of the incline and now face the decline. The good news is we’re well on our way slowly down. The simple question to ask a homeowner who is considering selling right now is, “How far down do you want to go?”

However, that’s not what I want to focus on. I don’t want to focus on the downward forecast of the real estate market. Rather, I want to focus on that steep incline and compare it to the other inclines. Throughout recorded history, the real estate market has generally produced a steady 4% to 6% appreciation per annum. Now applying that standard to today’s market is what I want to point out.

Many homeowners are currently in a situation where they are hemming and hawing about whether or not to sell their home. They are also losing valuable time (and money) not putting their home on the market with a top team of agents. However, some are also in a position where they do not have to sell and they’re saying to themselves, “We’ll just wait it out.”

“Waiting it out” is a relative term that I want to build this entire article around. House prices have dropped on Long Island. So let’s just take one homeowner as an example. We’ll call him Joe. Joe owns a home in Smithtown and bought it for $245,000 in 2000. He put it on the market in January of this year for $689,000 (wow, that’s over 150% appreciation in less than 10 years). In 2005, had he chose to put it on the market then, he probably could have sold it for a reasonable price of $589,000 given the appreciation values (remember the roller coaster).

The only problem is, Joe didn’t put it on the market in 2005. He put it on the market in 2007 but assumed the same upward appreciation. Joe thought the roller coaster was still going up when in fact, just before fall of 2005, that roller coaster started to level off and by winter of 2006, began to dip down slightly. Since that time, Joe’s home, like many other Long Island homeowners, has lost “value” in his home. That “value” we call equity (the difference between what is owed on the property and the true market value).

So now assuming that by this time in 2007 (December), Joe has taken his lumps (and so has his realtor who overpriced his home in January) and he has realized that his home actually lost value since 2005, what do you think Joe is going to do? What do you think he should do?

Aside from hiring me to sell his home, we can’t answer this question. We need more details. Okay, Joe and his family want to move to North Carolina. In fact, they “have to” because they’ve already purchased a new construction home in Lake Norman (not physically in the lake, but the area – wink). Here’s where it’s very important we all pay attention.

It’s not the market that causes our troubles; It’s the circumstances we create in our own lives that create most of our troubles. Joe has created his own trouble, not the market. His previous agent didn’t help him by over pricing the home in January when he put it on the market for $689,000, but that’s life (lesson: choose your agent wisely). So Joe “needs” to sell.

For those of you homeowners who don’t “need” to sell, don’t. Unless of course you want to and in that case, call me (631)587-1700, ext. 51. Okay, so Joe has to sell. Here’s what he must consider. His home was worth $589,000 in 2005 (that’s what the buying public would have actually paid for his house – market value). All the houses are on the market right now in his area are “listed” for around $549,000. The homeowners who are actually “selling” their properties are accepting somewhere around $519,000 and less. These sold houses on the market for about 195 days (over 6 months) and all started around $569,000 asking price originally.

Pause. Okay, we went from $689,000 to $519,0000. Is this a loss of $170,000 in market value for Joe’s home? Of course not. And here’s the kicker. Joe’s home was never worth $689,000. It was worth, at it’s best day, $590,000 in 2005. After 2005, the 30% appreciation stopped. It vanished. And we were left with about a 10% loss in value from January 2006 to March 2007. And here’s where it gets really bad for Joe…poor Joe.

Since March of 2007, Joe has lost another 3% to 5% in “value”. So, his home was actually worth, at the height of the market, in his given area in Smithtown, $590,000. We’re going to assume a 14% reduction in value, again what the buying public will pay for homes in his area NOW. This leaves Joe at around $508,000. So Joe, in reality has lost $82,000 in value since 2005.

Let’s leave Joe alone for a moment (he needs a break). If you own a home right now and you’re reading this, take what you think your home was worth in 2005 and subtract 14%. Now for all homeowners who don’t “need” to sell their home and are planning on “waiting it out”, let’s look at that roller coaster again. You’ll see that the average incline is steady. Since we just saw the most significant incline in the history of real estate, do you think the roller coaster is going to go right back up?

The answer is no. It will eventually start to go back up and we’ll assume the normal ride on the roller coaster. So assuming 5% appreciation, it will take about 3 years to recoup the lost 14% market value of homes throughout Long Island. But wait. And here’s where it gets bad (sorry for the doom ‘n’ gloom)…the market is not leveling off just yet. Long Island homeowners are still losing market values in their homes because buyers are not buying. Not only are they not buying but many can’t buy due to the mortgage difficulties and overall lack of liquidity in the market place (banks just don’t have the money to lend at the same rate they did in 2005 due to investors pulling out large (gigantic) sums of money from the mortgage lending business).

So on top of what has already been lost, where do we go from here. Let’s go back to Joe. Right now he could put his home on the market for $520,000 and be $29,000 less than his competition (remember the “listed” homes in the area are on the market now for $549,000). Most realtors, including myself, might think that’s an acceptable asking price to start at with room to come down. In reality, Joe’s optimal price is exactly $508,000 and not a penny more. This price would grab market attention.

Homes are sitting on the market now (as of December, 2007) and have been sitting for quite some time. The average listing period for a home in Suffolk County is over 6 months. Does Joe want to sit on the market? No, he wants to sell and be out of his home in 3 months. This is where a good agent comes in and gives Joe nothing but the facts. Joe thought his home was worth $689,000 in January of 2007, only to find out in June of 2007, that his home wasn’t worth anywhere near that amount. And while he spent the last 6 months (July through December) trying to get 2005 prices (he had a $590,000 list price on some for sale by owner website), he has finally realized that he needs two things; A good price and a good agent to market his property.

So now for the people who are going to hold on until the market “picks back up”. Five years. That’s it. You’ll have to wait 5 years before you will be able to get a 2005 price for your home. Let me repeat that: 5 years to get 2005 prices. Why? Here’s my personal speculative view: Assuming 12 more months of current declining market conditions, most homeowners will realize another 5% to 8% loss of market values in their homes (a conservative outlook). Again, market value is what the buying public is willing to spend on something – anything, whether it’s a hamburger, a shirt, a purse or a house. Everything that’s for sale has a “market value” (and I’m not even talking about the factors of supply and demand in this article as it pertains to the real estate market conditions).

So now remember that 14%. Add…let’s say 6.5% (the blended rate of declining market value – I added 5 + 8 and divided by 2 = 6.5).

So 20.5% is the projected total loss of market values for homes on Long Island. Again this is just my personal speculative view. It could be much worse, or it could be much better. That’s why it’s called speculation. But I will prove my point right now.

Is it safe to say that a home, where ever it is located, that was selling for $480,000 in January of 2006, is now (December 2007) selling for around $420,000?

The answer is yes.

So, now minus 6.5% from $420,000. We’re at $390,000. That’s a loss of $90,000 or 19.5%. So I’m one percent off. My point is that this is the reality of home values on Long Island. So in December 2008, we can safely say that all homes throughout Long Island will be about 20% less in price.

Assuming a 5% appreciation beginning in winter of 2009, in winter of 2010, homes will be at a 15% loss in market value in comparison to 2005 home values. In winter of 2011, homes will be at a 10% loss in market value in comparison to 2005 home values. In winter 2012, homes will be at a 5% loss in market value in comparison to 2005 home values. And in 2013, homes will be at breakeven from where they were valued at in 2005.

This is of course, all speculative. But let’s look at some quotes and statistics that are going to back it up:

• “So far, prices have dropped only slightly. But it was enough to cause alarm around the world,” he said. “Prices are going to fall much lower yet.” Alan Greenspan
• “What we see in our residential brokerage business is a slowdown everyplace, most dramatically in the formerly hottest markets…We’ve had a real bubble to some degree. I would be surprised if there aren’t some significant downward adjustments, especially in the higher end of the housing market.” Warren Buffet
• 201 – The number of mortgage lenders that have closed since the mortgage crisis began.
  Foreclosure Trends: Nationally, the number of foreclosure filings has risen from 323,101 in the first quarter of 2006 to 345,554 in the fourth quarter of 2006, to a total of 437,498 filings reported in the first quarter of 2007.* – source: Yahoo! Real Estate
• Report by realtytrac, the leading online marketplace for foreclosure properties, shows a foreclosure rate of 1 foreclosure filing for every 134 U.S. households for the first half of 2007.
• Check this graph at http://www.erealtyonline.net/graphs/eastend_2q07.gif showing the average selling price of homes in eastern suffolk. The graph only covers up to the second quarter (up to June 07). Notice the downward trend for almost every town.

So where does all this leave you, the seller? This depends a great deal on your circumstances. In the world of business, financial transactions are engaged in for expected profits, based on market research and numbers. The residential real estate market is based on people making decisions for their families more so than the almighty dollar. So my suggestion to you is to contact me in order to discuss your options as they pertain to the real estate market. With this information you can decide what is best for your financial situation and more importantly, your family’s future. I can be reached at (631)587-1700, ext. 51.

If you take anything from this article, please note that the real estate market has trends. In order to “wait out the market”, you’re looking at a long-term waiting period of at least four years. Please understand this and if you have any questions at all, call me. And please remember that no matter what the circumstances may be, you always have options. Consult a good attorney if you are in financial trouble and please do not make decisions based largely on emotions. Remain calm, call professionals in, get second and third opinions and after getting as much information as possible, then and only then make the most rational decision you can based on information.

(c) copyright 2007 http://www.tommcgiveron.com

Written by Thomas McGiveron

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Author: Thomas McGiveron
Article Source: EzineArticles.com
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The number 1 objection I hear from real estate agents when the subject of doing a lease option or rent-to-own is broached is “How do I get paid?” Sometimes the agent will be concerned about how they get paid but don’t want to flat out ask it. So instead they’ll say things like “Lease Options are too risky! You (home seller or home buyer) don’t want to do that.” This sounds a whole lot better than, “I don’t want to do a lease option sale because I’m not sure how I’ll get paid.” Now keep in mind that not all agents are like this, it’s just that the ones who do object usually object for this reason.

Times have changed now and many real estate agents are more open to the idea of lease options or rent to owns. That’s because the real estate market is down and more and more agents are willing to be creative to get things done. But there are definitely still some holdouts who only want to do conventional sales. The reality is that some of these agents will never change their mind but some will, especially if you are their client and you insist on it or suggest you’ll find someone who will. So bear in mind that the suggestions I’m going to offer will work with some agents (the ones who still want to make a living in this market) and won’t work with others (the ones who absolutely refuse to do anything besides conventional sales).

So, let’s look at how to tackle the “How do I get paid?” question.

With a lease option or rent to own a real estate agent will get paid PART of their commission (maybe 1% to 2% in this market) when a tenant-buyer signs contracts with a rent to own seller and pays an option fee. The real estate agent’s partial commission will come out of the option fee. The remainder of their commission will get paid when the lease option buyer actually buys the seller’s home. Obviously this is not as desirable as doing a conventional sale where they get paid their full commission right away.

BUT, conventional sales are a lot harder to come by now. The mortgage crisis is affecting everyone, even A+ credit buyers need to have larger down payments than before. This means that if a real estate agent is only doing conventional sales their income has dropped. Look, I’m not saying that rent to owns are the perfect solution for EVERY situation. They aren’t.

So how do you handle a real estate agent’s objection to rent-to-owns?

Let’s say you want to buy a home on a lease with an option to buy. You approach a real estate agent to be your buyer’s agent and tell them that you can’t qualify for a mortgage right now but you want to buy with a lease with an option to buy. The agent objects and says “You don’t want to do that it’s too risky!” You can tell the agent that you understand the risks, (read my book – Rent-to-Buy – and you will definitely understand the ins and outs of rent to own) and that you are interested in finding a rent to own home. If the agent still poses some objection explain to him that you are a real buyer, while they won’t get a full commission up front as they would with a conventional buyer, they will still get paid and isn’t that better than just turning you away? If the agent still objects after that, find another agent. By the way, once you find a real estate agent who is willing to represent you for rent to own make sure they read my book Rent-to-Buy to be sure they are giving you good representation.

Now if you are a home seller and you’ve decided that rent to own is right for you (again, read my book – Rent-to-Sell – and you will definitely know whether this is something you want to do) so you suggest it to your real estate agent. Your agent objects. Explain to your agent that your home has sat on the market for a while now and if you don’t find a buyer soon you would have to rent it out because you don’t want to keep paying that mortgage. If you just rent the home the agent is only going to get about 1/2 months rent for their commission, which is definitely less than they would get if you do a lease with an option to buy.

Your other option is to find another agent in which case your current agent would get no commission at all. Now isn’t it better to consider rent to own instead of the alternatives? When you explain these things to your agent don’t be confrontational, do it in a way that makes it clear you want to work with them but that the current method of selling your home just isn’t working. Also, once they agree to do a rent to own with you make sure they read Rent-to-Sell!

Wendy Patton is one of the nation’s leading experts in lease option or rent-to-own real estate. She has trained thousands of real estate agents, real estate investors, home sellers and home buyers in doing lease options [http://wendypatton.myshopify.com] or rent to owns. She is the author of 4 books, Rent-to-Sell, Rent-to-Buy, Investing in Real Estate with Lease options and Subject to Deals, and Making Hard Cash in a Soft Real Estate Market.

Author: Wendy A Patton
Article Source: EzineArticles.com
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