Saving To Lose – For Sale By Owner

Saving To Lose – For Sale By Owner

SAVING TO LOSE?

     The thought of placing a For Sale by Owner sign out in the front  yard and selling your home by yourself is very appealing. Doing the sale yourself conjures up the thought of potential savings from cutting out the real estate brokerage.  But, be careful before taking this huge step with your biggest financial nest egg.  There is more to the process of selling or buying real estate successfully.

     The data is in for 2018. The National Association of REALTORS® reports, in their 2018 PROFILE OF HOME BUYERS AND SELLERS report, that 7% of homes were For Sale By Owner sales. This is a decreasing trend from 2017 and the “…[t]he lowest share recorded since this report started in 1981.” It comes as no surprise that FSBO homes sold for less than the rest of the market. The report states that, “FSBO homes sold at a median of $200,000 last year (up from $190,000 the year prior), and significantly lower than the median of agent-assisted homes at $264,900.” Now, there were some positives in the report for those who want to list For Sale By Owner. FSBO homes sold in less than two weeks and was attributed to those homes being sold to someone already known to the owner.

     As far as selling a property, it entails more than planting a sign out on the lawn.  The headache and work involved may not be worth the savings.  Consider the following areas our team of professionals will undertake. Then, reflect on what you would need to know should you decide to buy or sell a home on your own. These concepts can also be applied to buying, selling, or leasing any type of real estate; commercial, vacant land, condominiums, etc.

Exposure

     Getting the word out.  Real estate brokerages utilize networks to market your home outside of the city or suburb. This increases the probability of selling your home in the shortest amount of time. The longer your property stays on the market there is an increased likelihood for the sale price of your property to be reduced and reducing your profit margin.

Market Information

     The real estate market is ever-changing and always in flux. Listing prices fluctuate constantly, sometimes quickly, with the rhythm of the market. It is very important to correctly gauge the market’s direction and speed.  Failing to assess your property’s correct value will effectively render the property “out of market.” This would likely result in selling at a low value. On the other hand, overpricing the home will keep you waiting for a buyer who may never come. Real estate agents have access to home sales information. Our team at Alpha Real Estate of Central Florida, LLC can effectively evaluate your home and provide a Comparative Market Analysis (“CMA”). The CMA process takes subjectivity out of the equation and provides a narrow range of listing prices based on a particular market’s dynamic factors.

Negotiating Ability

     The ability to negotiate may be the most overlooked part of the do-it-yourself (DIY) process, and should not be taken lightly. Do you trust your ability? Do you have the skill set necessary to successfully negotiate the sale of one of your most valuable possessions? Can you effectively manage the selling process all the way through to a ‘closing’ against a seasoned broker or real estate lawyer?  If you have never been involved in serious negotiations with professionals, then you are at a serious disadvantage. The lack of experience could translate into negating the benefits of having done the transaction yourself. Any savings dwindling as negotiations go on or becoming non-existent at closing.

Legal Issues

     Arguably, the most dangerous aspect of selling or buying a property involves contracts and closings.  You will need to have advocates on your side when negotiating terms and who can steer the process to a legally sound conclusion with the assistance of an attorney.  Our team utilizes title companies who have attorneys on staff to deal with legal matters before and during closings to avoid problems.  This is definitely the part of the selling and buying process that you do not to undertake without professional assistance or access to an attorney.

Value Added Services

As technology evolves, real estate agents are deploying this technology to sell homes faster and provide buyers with imagery and virtual viewings of properties.  The use of drones to capture the overall beauty of the landscape surrounding your home is a  big plus – and we use drones. Next, there are imaging devices that scan the interior of homes and provide virtual tours.  These services are offered by Alpha Real Estate of Central Florida, LLC.  Research has shown that videography and imagery can increase the probability of a sale by 40%!

The Quirky Factor

Some prospective buyers will be apprehensive about engaging a “For Sale By Owner” property simply because it’s not the standard approach in selling a property.  As such, prospective buyers will likely be apprehensive. Buyers will also be anxious about engaging with a “For Sale By Owner” property and steer clear from visiting the property altogether.

Your Time

Selling a property on your own is possible. But, you will need to be prepared and committed in order to sell a property successfully. Consider how much time do you have to spend on marketing your property, what methods you will use or have to learn to determine how much your property is worth, and what your personal time is worth.  Ultimately, determine whether your investment of time and energy will be repaid by the commission you save.

 

Don’t Save To Lose.

Contact Bill Moore today!

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Advice to Buyers

Advice to Buyers

10 STEP GUIDE TO BUYING A HOUSE

Are you Ready to Become a Homeowner? Whether you’re becoming a homeowner for the first time or you’re a repeat buyer, buying a house is a financial and emotional decision that requires the experience and support of a team of reliable professionals.

Hire a REALTOR® 

In the maze of forms, financing, inspections, marketing, pricing and negotiating, it makes sense to work with professionals who know the community and much more. Those professionals are the local REALTORS® who serve your area.

Get a Mortgage Pre-approval

Most first-time buyers need to finance their home purchase, and a consultation with a mortgage lender is a crucial step in the process. Find out how much you can afford before you begin your home search.

Look at Homes

A quick search on realtor.com® will bring up thousands of homes for sale. Educating yourself on your local market and working with an experienced REALTOR® can help you narrow your priorities and make an informed decision about which home to choose.

Choose a Home

While no one can know for sure what will happen to housing values, if you choose to buy a home that meets your needs and priorities, you’ll be happy living in it for years to come.

Get Funding

The cost of financing your home purchase is usually greater than the price of the home itself (after interest, closing costs and taxes are added). Get as much information as possible regarding your mortgage options and other costs.

Make an Offer

While much attention is paid to the asking price of a home, a proposal to buy includes both the price and terms. In some cases, terms can represent thousands of dollars in additional value – or additional costs – for buyers.

Get Insurance

No sensible car owner would drive without insurance, so it figures that no homeowner should be without insurance, either. Real estate insurance protects owners in the event of catastrophe. If something goes wrong, insurance can be the bargain of a lifetime.

Closing

The closing process, which in different parts of the country is also known as “settlement” or “escrow”, is increasingly computerized and automated. In practice, closings bring together a variety of parties who are part of the real estate transaction.

What’s Next?

You’ve done it. You’ve looked at properties, made an offer, obtained financing and gone to closing. The home is yours. Is there any more to the home buying process? Whether you’re a first-time buyer or a repeat buyer, you’ll want to take several more steps..

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Advice to Buyers

Advice to Sellers

7 STEP GUIDE TO SELLING A HOUSE

Prepare to Sell Your House – Home selling has become more complex than it used to be. New seller disclosure statements, longer and more mysterious form agreements, and a range of environmental concerns have all emerged in the past decade.

Find a REALTOR® – In the maze of forms, financing, inspections, marketing, pricing and negotiating, it makes sense to work with professionals who know the community and much more. Those professionals are the local REALTORS® who serve your area. Not all real estate agents are REALTORS®.

Set the List Price of Your Home – Several factors, including market conditions and interest rates, will determine how much you can get for your home. In other words, home selling is part art, part science, part marketing and part negotiation.

Market Your House for Maximum Exposure – Your REALTOR® should share a marketing plan with you, but the more you know about the process of selling your home the easier it is to support your REALTOR®’s efforts. Make your home sell fast with these tips.

Negotiate a Real Estate Offer – Perhaps the most complex moment in the sales process comes when you get an offer for your home. Whether you have one offer or several to consider, these tips will help you navigate the negotiation.

The Art of Settling – When you have a signed contract with the buyer for your home, you may feel as if you can breathe a sigh of relief. But before you can completely relax you need to get to the settlement table.

Plan Your Move – Some of the activities required to sell your home can actually help with the moving process. For example, by cleaning out closets, the basement and the attic you will have less to do once the home is under contract.

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