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FSBO’s MUST BE READY TO NEGOTIATE

If you view all the things that happen to you, both good and bad, as opportunities, then you operate out of a higher level of consciousness.”~ Les Brown

FSBO’s Must Be Ready to Negotiate | Keeping Current Matters

Now that the market has showed signs of recovery, some sellers may be tempted to try and sell their home on their own (FSBO) without using the services of a real estate professional.

Real estate agents are trained and experienced in negotiation. In most cases, the seller is not. The seller must realize their ability to negotiate will determine whether they can get the best deal for themselves and their family.

Here is a list of some of the people with whom the seller must be prepared to negotiate if they decide to FSBO:

  • The buyer who wants the best deal possible
  • The buyer’s agent who solely represents the best interest of the buyer
  • The buyer’s attorney (in some parts of the country)
  • The home inspection companies which work for the buyer and will almost always find some problems with the house.
  • The termite company if there are challenges
  • The buyer’s lender if the structure of the mortgage requires the sellers’ participation
  • The appraiser if there is a question of value
  • The title company if there are challenges with certificates of occupancy (CO) or other permits
  • The town or municipality if you need to get the COs permits mentioned above
  • The buyer’s buyer in case there are challenges on the house your buyer is selling.
  • Your bank in the case of a short sale

Bottom Line

The percentage of sellers who have hired a real estate agent to sell their home has increased steadily over the last 20 years. Meet with a professional in your local market to see the difference they can make in easing the process.

WHY BUYERS AND SELLERS SHOULD USE REALTORS

home for sale Buyers need a Realtor to guide them through the process of buying a home.  Every so many years, forms are updated, rules change and lending practices change.  A buyer can’t navigate all of this alone, they need someone who is up to date on all the rule changes – that is where a Realtors come in to play.  Realtors need to take a certain amount of continuing education every year, so Realtors can remain on top of their game.

Click this link to read the 175 reasons a buyer should use a Realtor.

Sellers also need a Realtor when it comes time to sell their home.  The average person only sells a home two or three times in a lifetime.  A Realtor does it for a living and closes many transaction per month.  Wouldn’t you rather have someone who knows what they are doing than trusting your closing to just yourself and the buyer.  Check out the infographic below (from “Keeping Current Matter”)  for why you should not be a “For Sale By Owner”!

FSBO-2014

 

“SHORT SALE” Great Starter Home!

“SHORT SALE”  Great Starter Home!

This is a great home for the price.  The neighborhood is excellent and the lot is one of the larger lots in the area.  All in all,  this little brick gem is a great deal! I sold this home to the owners originally, and now it is time for them to move on.  So here I am selling the home once again. It is adorable and whoever buys this home will be very happy in it as my sellers are. To view more pictures of this home click on the link below.

“SHORT SALE” Great Starter Home!.

IT’S ALL IN PERSPECTIVE

IT’S ALL IN PERSPECTIVE

“A budget tells us what we can’t afford, but it doesn’t keep us from buying it.” – William Feather

When it comes to selling you home, everyone has a different perspective on what the price should be.  This is a big problem, especially for Realtors who have studied the market and different subdivisions, and are knowledgeable on the value of a home.  Sometimes there is a wide difference of opinion in pricing the home to sell, between the Realtor and the seller.  I have also found the lender, appraiser and tax assessor also have their opinions.  Following is a pictorial description of the discrepancy of these opinions.  I hope this helps eliminate any confusion current sellers may have.

YOUR HOME AS VIEWED BY….

YOURSELF, THE SELLER

YOUR LENDER

YOUR BUYER

YOUR APPRAISER

YOUR TAX ASSESSOR….

DON’T WAIT UNTIL IT’S TOO LATE!

“For most folks, no news is good news; for the press, good news is not news.”  – Gloria Borger

You hear the bad news everywhere you turn. It’s on the television, the Internet, the radio and in print headlines. A lot of negative coverage has been devoted to today’s housing market.  What you don’t hear is the good news about the real estate market and the many reasons why the current real estate market may be beneficial to you.

Bad news sells newspapers and gets high television ratings; therefore, the media has no reason to report the upside of today’s real estate market to the average American. This is where I come in. For example, did you know that approximately 30 percent of homeowners own their home free and clear?

The current market also affords some great opportunities for those looking to purchase a home. First-time homeowners, move-up buyers and investors can all benefit from low home prices, and historically low-interest rates, making now a great time to lock in a long-term mortgage. Also, the large selection of homes and low sales prices make it a great buyer’s market. And did you know that if you buy in a rural area –Alachua, High Springs and Newberry qualify as rural areas –  you may qualify for a USDA loan, which is a 100% loan – a “no money down” loan.

Ultimately, though, these favorable conditions will go away. As inflation rises, so do interest rates. If you are looking to become a homeowner, you need to strike while the iron is hot!

HELP!! I CAN’T SELL MY HOME – MY ADDITION WAS NEVER PERMITTED!

“An excuse is worse and more terrible than a lie, for an excuse is a lie guarded. ”     Pope John Paul II

I can’t tell you how many times I’ve heard this.  Well I have both good news and bad news.  First for the bad news.  If you decide to go the route of permitting something that has already been built, you will pay double for the permit, compared to what you would have paid in the first place.  Then you will have to hire a contractor to draw plans, do the engineering and have everything inspected.  If your addition has electricity and plumbing – and most do – you will need to remove a section of the wall to enable the electric and plumbing to be inspected.

On the other hand, let’s say for instance you hired a contractor to build your addition and later on you find out he never obtained a permit – what can you do?  You should start by contacting that contractor and requesting that he file the permits.  If he refuses, you should call the DBPR (Department of Business and Professional Regulation) in your state and file a complaint against the contractor.  This should get his attention rather quickly.

Let’s say for instance you finished off a part of your attic, which already had electric, just so you could have some extra space for storage or a place for the kids to hang out in.  All you did was hang some sheet rock, install a floor and paint. You still should have obtained a permit, but now your selling and don’t have the time to go through all that. Now for the good news: You will need to disclose the remodel on the seller’s disclosure and to you agent.  The buyers can then decide to purchase the home in spite of the addition not being permitted, taking the risk of an un-permitted addition on themselves.

IF YOU ARE A “FOR SALE BY OWNER” THEN YOU NEED TO KNOW THIS!

IF YOU ARE A “FOR SALE BY OWNER” THEN YOU NEED TO KNOW THIS!
“He is happiest, be he king or peasant who finds peace in his home.” –  Goethe

Many homeowners believe to maximize their home sale they should sell it themselves. At first glance, they feel selling a home is simple. Why would they pay a broker free for something they could do themselves? In fact, close to 25% of all the homes sold last year were sold For Sale by Owner (FSBO).

However, close to half of the FSBOs said they would hire a professional next time they sold. Thirty percent said they were unhappy with the results they achieved by choosing FSBO. Why?

Many FSBOs told us the time, paperwork and everyday responsibilities involved were not worth the amount of money they saved in commissions. For others, the financial savings were even more disappointing. By the time they figured the fees paid to consultants, inspectors, appraisers, title lawyers, escrow and loan officers, marketing, advertising, they would have been better off to have paid the broker’s fee that would have included many of these charges.

Selling a home requires an intimate understanding of the real estate market. If the property is priced too high, it will sit and develop a reputation for being a problem property. If the property is priced too low, you will cost yourself serious money. Some FSBOs discovered that they lost money as a result of poor marketing decisions. In the final outcome, this far outweighed the commission they would have paid.

Before you decide to sell FSBO, consider these questions and weigh the consequences of assuming the responsibility versus employing a professional. A little time spent investigating now could pay off tenfold in the end.

Questions To Consider

  • Do I have the time, energy, know how, and ability to devote a full forced effort to sell my home?
  • One of the keys to selling your home effectively and profitably is complete accessibility. Many homes sit on the market much longer than necessary because the owner isn’t available to show the property. Realize that a certain amount of time each day is necessary to sell your home.
  • Am I prepared to deal with an onslaught of buyers who perceive FSBOs as targets for “low balling”?
  • Another challenge of selling a home is screening unqualified prospects and dealing with “low ballers.” It often goes unnoticed that much time, effort and expertise is required to spot these people quickly. Settling for a “low ball” bid is usually worse than paying broker commissions.
  • Am I offering financing options to the buyer? Am I prepared to answer questions about financing?
  • One of the keys to selling, whether it’s a home, a car.. anything, is to have all the necessary information the prospective buyer needs and to offer them options. Think about the last time your purchased something of value, did you make a decision before you had “all your ducks in a row?” By offering financing options, you give the home-buyer the ability to work on their terms. You’ll open up the possibility of selling your home quicker and more profitably. A professional real estate agent will have a complete team for you to profit from… lenders… title reps… inspection companies… they’ll be completely at your disposal.
  • Do I fully understand the legal ramifications and all the necessary steps required in selling a home?
  • Many home sales have been lost due to incomplete paperwork, lack of inspections or not meeting your state’s disclosure laws. Are you completely informed of all the steps necessary to sell real estate? If not, you may want to consider consulting with a professional.
  • Am I capable of handling the legal contracts, agreements and any disputes with buyers before or after the offer is presented?
  • Ask yourself: “Am I well-versed in legalese? Am I prepared to handle disputes with buyers?” To avoid any disputes, it is wise to put all negotiations and agreements in writing. Many home sales have been lost due to misrepresentations of what was negotiated.
  • Have I contacted the necessary professionals… title, inspector (home and pest), attorney, and escrow company?
  • Are you familiar with top inspectors and escrow companies? Don’t randomly select inspectors, attorneys, and title reps. Like any profession, there are inadequate individuals who will slow, delay and possibly even cost you the transaction. Be careful!

My hope with this report has been to educate you and help you avoid the pitfalls many FSBOs go through. I hope you found the ideas valuable and if there is every any way I can be of service to you or anyone you care about, please contact my office. Your initial consultation is always completely free and you’re under no obligation of any kind. I’d love to hear from you!

Sincerely,
Jocelyne Grandjean-Brown
RE/MAX Professionals
352-870-9929
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