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September Preferred Client Update

Blog by Kim Twohey | September 4th, 2019


Using a REALTOR® Leads to a Much Higher Sales Price than Selling a Home Yourself

According to a research report done by the National Association of Realtors. For Sale by Owner [FSBO] properties typically sell for much less than the selling price of other homes. Last year, across the United States, the average FSBO home sold at a median of $200,000,
which is significantly lower than the median of agent-assisted homes, which sold at $264,900.

Year over year, the number of individuals who choose to sell their home without the use of a Realtor decreases. Last year, only seven per cent of all homes sold in the United States were FSBOs, which is the lowest number reported for that demographic since 1981. 

Whether buying or selling a home, you can trust that your REALTOR will ensure the transaction is completed competently and professionally. You don’t have to worry about the details—your REALTOR can take care of them for you. You can get advice from someone with an intimate knowledge of the local housing market. And you can count on the help of a professional who has committed to serve with integrity and competence.

Why Borrow Against Home Equity

Home equity is the difference between the value of your home and the unpaid balance of your current mortgage.

For example, if your home is worth $250,000 and you owe $150,000 dollars on your mortgage, you’d have $100,000 in home equity.

Your home equity goes up in two ways:
- as you pay down your mortgage
- if the value of your home increases

You may be able to borrow money that will be secured by your home equity.

Interest rates on loans secured with home equity can be much lower than other types of loans. You must be approved before you can borrow from your home equity.

Be aware that you could lose your home if you’re unable to repay a home equity loan.

Not all financial institutions offer home equity financing options. Ask your financial institution which financing options they offer. You may be given the choice to compare between refinancing your home, borrowing pre-paid amounts, getting a home equity line of credit or taking out a second mortgage.