Benefits Of Involving A Real Estate Agency Or Professional When Selling A House

House For Sale

House For Sale

Any homeowner planning to sell a house, of course, wants to make the best out of it. The major aim is to have the house sold on time and at the best prices possible. Sometimes the seller may choose to undertake the chore alone without the involvement of an intermediary. This task may seem easy, and one may assume that it is a way of saving money, but this assumption is sometimes wrong. There are so many matters that are concerned in buying and selling of a house that one can not afford to work with faulty assumptions. Just like in the case of a mortgage whereby a mortgage broker benefits the client, the selling process could also be benefited immensely by having a professional on board to have everything in place and have good end results. Involvement of a real estate agent or professional has many benefits as will be discussed in this article.


Speeds up the process

Agents from real estate companies have access to better and exclusive market knowledge and can find a buyer quickly than would a lesser informed homeowner who is inexperienced in this area. The agent’s multiple listing speeds up the process too and is only available to those who work with a licensed real estate agent. With this in mind, anyone selling a house would better sell it through real estate agency for faster service.


Best pricing method

Individual sellers may not be aware of the prevailing prices in the market, and this could lead to overpricing one’s house and end up not getting a buyer promptly. Also, if the home sits too long on the market, it could become a stale listing and force the homeowner to wind up lowering the sales price for much less than what it is worth. Real estate agents are keenly aware of the prices in the market and are more apt to price the house appropriately the first time around to get a buyer at the right price.


Added benefits from qualification and experience

Agents from real estate companies are well trained and are professionals in this field and therefore have an idea of the necessary documents involved when selling a house. They can advise and prepare the documents on behalf of the house owner making the whole process easy and smooth. Also, in the case of renovations, they can contact trusted contractors that they have used before who can repair the house up to modern standards to ultimately get a better price.



Real estate agents are professionals in their job and can handle most any challenges during the sale and would, therefore, be able to give the best advice on the best actions to be taken. They are also able to contact their broker or lawyer in case there is any breaches of the contract. Furthermore, due to their qualification, they are not likely to lie or breach the contract themselves because they understand the repercussions. All this make the process easy and comfortable for the owner of the house.


Cuts down the cost

One may think it could be costly to involve a real estate agent in the process of selling or buying a house but on the other hand, the cost of hiring a lawyer between a direct seller and the buyer is higher than the real estate agent commissions.


Getting rid of unnecessary hassles

All the activities involved when one is selling a house are to some extent tedious. Having to rush home to show the house to a potential buyer, answering phone calls, getting the house ready every time a potential buyer is coming to have a view, negotiations and signing of the contract among others are some of the things that must be done before a sale is made. Real estate agents do all this job without extra charges apart from what was initially agreed.

As one may ask how much a mortgage broker is making from your loan so would be the case in real estate agents, but the answer is simple. The amount of money these intermediaries take is little comparing to the job they do and the value that they can provide you. Also, the processes would be far much costly without them as so much happens behind the scene that could cost more were it not for their talent in avoiding unnecessary pitfalls.


But what if time is of the essence?

As much as it makes sense to consider employing a real estate brokerage to help them sell a house, one still has to be realistic about the time that this process could take. The process of finding the right retail buyer can wind up being difficult even with the most experienced of agents. No matter how good they are, they are still at the mercy of how strong the market is in their area, and it is not uncommon for several months to pass by before the right qualified buyer decides to purchase your home. Heck, even if the agent were to find a buyer on the very first day, nowadays it will still take 45 to 60 days just to close the transaction with a buyer who is seeking a new mortgage. So, if you find yourself in a time sensitive situation where you are asking yourself “how can I sell my house fast?”, then you may want to consider contacting a reputable company that buys houses for cash in their as is condition. This can sometimes wind up being the smartest route for a motivated seller to take if they need a quick sale in cases like that of a looming foreclosure date.


What Is Home Mortgage Insurance For?



Mortgage Insurance

What Really Is Mortgage Insurance?

Mortgage insurance is a type of insurance policy that is tasked with compensating the lenders or investors in the event of a client defaulting to pay the mortgage. It is very essential for home loan lenders to have this insurance because it reimburses their loan amount ensuring they don’t go at a loss when their clients don’t pay up for the home loan. It gives the lenders a financial guaranty, especially in cases where the homeowner did not pay the minimum down payment of 20% of the home’s value. The lender arranges the mortgage insurance and the premiums are paid by the homeowner who took the loan.


Why lenders require mortgage insurance

As observed already, mortgage insurance is very important for lenders and investors, whether they are companies, banks or financial institutions. First when a client; the borrower has a mortgage insurance, it makes them credible for the lender. The lender is pretty assured that in case the borrower fails to pay there will be no loss.


The lender always wants to sell a home to a borrower who is committed to paying up toil the end. The mortgage insurance policy reaffirms the lender that their client is committed to the transaction, and that’s why they are ready to pay for the mortgage insurance alongside the loan installments, to avoid any risk in a time of foreclosure.


Many times in the event of a mortgage loan default, the lenders tend to reclaim the house. However, the house value is always lower than the amount needed for the default. Mortgage insurance protects the lender from having to reclaim a house whose value has depreciated by paying for the entire amount owed by the borrower.


Mortgage Insurance cost

Mortgage insurance costs tend to vary depending on the amount borrowed or value of the house, the period taken to pay for the loan, the loan interest, and the financial institution that is facilitating the insurance.


For instance, if a person is looking to purchase a house worth $200 000 on a 30-year mortgage fixed loan and they can only afford a 10% principal down payment, the borrower will need to discuss mortgage insurance with the lender. According to Banfield of Quicken Loans, you will pay a monthly mortgage insurance of $66 if your credit score is 720. If the interest rate for the period of 30 years is at 4.5%, then the mortgage payment will be $912 monthly. To find the total monthly payment that the homeowner will pay the mortgage payment is added to the mortgage insurance monthly premiums. In this case, the borrower will pay a total of $978 per month including the mortgage insurance premiums.


On the other hand, according to FHA Mortgage Insurance, the monthly payments will include not only the premiums but also property taxes and homeowner’s insurance. If the property taxes are charged at 0.5% of the value and homeowners insurance at 0.3%, then the borrower will pay a monthly total of $1240 inclusive of the property tax and home insurance.



Mortgage insurance is very important for both the lender and the borrower in any house selling transaction. Lenders gain the security of their loans when they have mortgage insurance whereas borrowers feel safe that in the case of a default in paying the loan the lenders will not reclaim their house. In selling a house, therefore, it is very critical that you sell it to a house buying company and consider mortgage insurance.