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VA Loan

The Veteran’s Administration (VA) Loan is an excellent loan with unique benefits listed below:

  • 100% Financing (although the more you put down, the lower the VA Funding Fee)

  • No PMI (Private Mortgage Insurance)

  • VA Appraisal makes sure home is safe, sound, and sanitary

The VA Funding Fee is usually a cost that VA benefit holders are unaware of, but it is a fee that should be known about upfront. Most lenders will allow you to put the VA Funding Fee into the loan balance which still allows for a zero down payment. But don’t confuse zero down payment with no closing costs. You will still incur closing costs, but a seller credit or a lender credit may help offset those costs. If you are on active duty or a veteran,  the VA Funding Fee  for first time purchasers are as follows:

  • Less than 5%, Funding Fee is 2.15%

  • 5% to 9.99%, Funding Fee is 1.50%

  • 10% or more, Funding Fee is 1.25%

For Guard and Reservists, the fee is slightly higher.

An exemption to the VA Funding Fee exists for anyone with a 10% or more disability rating.

If you are interested in utilizing your VA Home Loan benefits, please contact us and we will put you in touch with a reputable VA Lender that will help you achieve your homeownership goals.

Chris Chin |Broker & Owner

November 12, 2014

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For Sale by Owner

For Sale By Owner (FSBO) Statistics

  • FSBOs accounted for 9% of home sales in 2013. The typical FSBO home sold for $184,000 compared to $230,000 for agent-assisted home sales.

  • FSBO methods used to market home:

    • Yard sign: 36%

    • Friends, relatives, or neighbors: 28%

    • None: Did not actively market home: 32%

  • Most difficult tasks for FSBO sellers:

    • Understanding and performing paperwork: 18%

    • Getting the right price: 13%

* Statistics and chart from the National Association of Realtors

Seen from the chart, the percentage of sellers selling on their own has been gradually decreasing since 1991. The percentage has decreased by about 50%. With home searches starting online with buyers, sellers need to have their listing syndicated to all the major real estate sites such as Trulia, Zillow, Realtor.com, etc for maximum exposure to all potential buyers.

With litigation on the rise and real estate disclosures increasing and continually changing, hiring an experienced and qualified Realtor to guide and have the proper paperwork completed will lessen the burden that FSBO sellers expressed as the number one difficult task.

From a Realtor’s perspective, one reason not to sell FSBO (For Sale by Owner) is to avoid the onslaught of Realtors who will call and drop by your home to try and list your home. Realtors are a persistent bunch and generally do not stop until the home sells or gets listed with an agent. It is not uncommon for an FSBO to get more calls from Realtors trying to list the home than qualified buyers.

Another reason listing as a FSBO may not be the best idea is that buyers are aware that a FSBO seller is trying to save on the commission paid to Realtors and will account for that in their offer as they want a deal as a buyer also. Many FSBO sellers cooperate with the buyer’s agent and pay them for bringing in a buyer. If that is the case, then a FSBO seller is saving only half the commission that would be paid to a listing agent.

Wondering if there is any reason why a seller should consider being an FSBO when selling? There certainly is: If the seller already has a buyer lined up who is willing to pay fair market value, then selling FSBO may make sense. If that  is your case, I would be glad to put you in contact with an escrow officer to get your home sold without agents involved (this would apply to Ventura County properties).

Happy Home Selling!

Chris Chin |Broker & Owner

October  16, 2014