Why For Sale By Owner Sales Fail

Homeowners obviously know their homes better than anyone, but that doesn’t mean they’re the best salespersons for their properties. Some sellers are tempted to try a For Sale by Owner (FSBO) transaction because their local community is in the midst of a sellers’ market and they think they can sell easily without help. Others try the FSBO route because they want to maximize their profits and avoid paying a commission to a Realtor.

However, statistics show that selling your home with the assistance of a professional real estate agent will garner you a higher profit, enough to cover the commission as well as put more money in your pocket. According to the National Association of Realtor’s 2013 Profile of Home Buyers and Sellers, the average FSBO sales price was $174,900, while the average price for a home represented by an agent was $215,000, a difference of $40,100.

Why to Sell With a Realtor

Choosing to sell with a professional rather than on your own makes sense for a variety of reasons:

• A Realtor has access to market data about recent sales and other homes on the market that can be used to price your home appropriately. Studies show that homes priced right when they’re first listed sell more quickly and for a higher price than those that linger on the market.
• A Realtor can show your home when you aren’t available, can respond to inquiries from potential buyers and their agents, and can get valuable feedback from visitors – all things that save you time.
• A Realtor can look at your home objectively and suggest ways to improve its appearance – by staging and minor repairs – so it appeals to more buyers.
• Buyers typically prefer to look at a home without the seller present so they can feel more comfortable exploring the rooms and visualizing themselves in the property. At an FSBO sale, the seller must be present.
• A Realtor can screen visitors to your home, which provides a measure of safety that FSBO sellers don’t have. In addition, by checking to see if the buyers are legitimate and can afford to purchase your home, a Realtor can help you avoid wasting time showing your home to unrealistic buyers.
• Realtors have professional marketing expertise, contacts with other Realtors who work with buyers, and the support of a brokerage that can market your home more widely than you can as an individual.
• A Realtor can help you negotiate a contract that not only garners you an appropriate price for your home, but that meets your needs for a settlement date and perhaps includes a period when you rent back your home from your buyer. In addition, a Realtor can make sure your contract is in compliance with all local regulations.

FSBO Dangers

Most buyers today work with a buyers’ agent to represent their interests. If you choose to sell your home on your own, you’ll be negotiating with a professional and relying on your own skill to finalize a contract. Not only could you end up selling your home for less money, you could leave yourself open to potential legal problems unless you have the contract vetted by an experienced real estate attorney. FSBO transactions can be successful, of course, but 90 percent of homeowners prefer to work with a professional rather than risk an unsatisfactory home selling experience.

http://www.brandyfarris.com

7 Proven Ways to Boost Your Curb Appeal

Veteran agents know that buyers can make a “no” decision on a house before they even step in the door. It has nothing to do with the numbers. It’s the curb appeal that sets the tone, before they even see the inside of the listing.

That’s not just speculation. Studies confirm: Big, extensive renovations that functionally improve a home are net money losers, on average. They may enhance enjoyment of the home significantly – but they generally do not add as much in value as they cost to execute. Meanwhile, the projects and improvements that add the most value, according to the annual Cost vs. Value Study put out by Remodeling Magazine, are almost invariably cosmetic.

Looks count. You don’t want to be selling the neighborhood’s “ugly duckling.” Here are some things you can do to boost its curb appeal – and get it sold for a good price – without busting the bank.

Apply Fresh Coats of Paint

A coat of paint and some nice trim is usually the number one value-enhancing, curb appeal-boosting modification that property owners can make immediately prior to listing. Don’t just paint the house, though. Take the same care with mailboxes and numbers, if any. Make the colors pop, while still fitting in with the overall aesthetic of the neighborhood. 

Renew Siding and Trim

An exterior facelift (new paint, siding, or trim details) automatically transforms the look of a home. Periodic maintenance of that exterior surface is the surest way to keep your house and it curb appeal looking its best. Any obvious defects, such as cracked or rotting material, can downgrade the aesthetic and quickly turn away potential homebuyers.

Invest in Landscaping

According to the 2012 HomeGain Home Improvement Survey, investing in landscaping generates an average return on investment of 215 percent. The same study found that over 90 percent of real estate agents recommend that clients invest in some professional landscaping prior to selling.

Not ready to invest 10 percent of the value of the home in landscaping, as the American Society of Landscaping Architects (www.asla.org) recommends? Then at least make sure the lawn is green, mowed and raked at all times.

A New Front Door

The aforementioned annual Cost vs. Value Report put out by Remodeling magazine identified a new steel front door as one of the top value-enhancing improvements sellers can make to a house that actually adds value, above and beyond the cost of the repair, on average.

In fact, a new entry or door was the only renovation or improvement studied that did, in fact, earn its keep by generating about 101 percent of its cost in resale value. If the front door is old or unsightly, this is a no-brainer for boosting a home’s curb appeal.

Add Decorative Rocks

In the right spot, bright white rocks marking out the edge of a lawn, or lining a walkway, can look sharp. Plus, it’s easy to do and doesn’t cost much.

Spruce Up the Mailbox

Many people forget about the mailbox, even though it’s one of the first things your buyers will see up close when they arrive to look at the property!

Pressure Wash or Bleach the Driveway

Get rid of those oil stains on the concrete! For that matter, once you have the pressure washer out there, perhaps pressure wash the exterior of the house – especially anything visible from the curb.

Don't let your LUCK run out

The 30-year fixed mortgage interest rate is currently still below 4%. Many buyers may be on the fence as to whether to act now and purchase a new home, or wait until next year, believing they still have time to lock in a low rate. If you look at what the experts are predicting over the course of the next 12 months, it may make the decision for you. Even an increase of half a percentage point can put a dent in your family’s net worth.

Let’s look at it this way…

The monthly payment (principal & interest only) on a $250,000 home today, with the current 3.86% interest rate would be $1,173. If we take Freddie Mac’s rate projection of 4.7%, the monthly mortgage payment climbs to $1,354. Some buyers might not think that an extra $181 a month is that bad. But over the course of 30-year mortgage you have spent an additional $65,160 by waiting a year.

Housing Market to "Spring Forward"

Just like our clocks this weekend in the majority of the country, the housing market will soon “spring forward”! Similar to tension in a spring, the lack of inventory available for sale in the market right now is what is holding back the market. Many potential sellers believe that waiting until Spring is in their best interest, and traditionally they would have been right. Buyer demand has seasonality to it, which usually falls off in the winter months, especially in areas of the country impacted by arctic temperatures and conditions.

That hasn’t happened this year.

Demand for housing has remained strong and is currently three times stronger than last year at this time. The National Association of REALTORS (NAR) recently reported that the top 10 datessellers listed their homes in 2014 all fell in April, May or June.

Those who act quickly and list now could benefit greatly from additional exposure to buyers prior to a flood of more competition coming to market in the next few months.

Bottom Line

If you are planning on selling your home in 2015, meet with a local real estate professional to evaluate the opportunities in your market.

Call or Email Christie Farris at 225-315-9003 or Christiefarris@gmail.com.

The Importance of a Real Estate Professional when Selling or Buying

When a homeowner decides to sell their house, they obviously want the best possible price with the least amount of hassles. However, for the vast majority of sellers, the most important result is to actually get the home sold. In order to accomplish all three goals, a seller should realize the importance of using a real estate professional. We realize that technology has changed the purchaser’s behavior during the home buying process. For the past two years, 92% of all buyers have used the internet in their home search according to the National Association of Realtors’ most recent Profile of Home Buyers & Sellers. 

However, the report also revealed that for the second year in a row 96% percent of buyers that used the internet when searching for a home purchased their home through either a real estate agent/broker or from a builder or builder’s agent. Only 2% purchased their home directly from a seller whom the buyer didn’t know. Buyers search for a home online but then depend on an agent to find the actual home they will buy (53%) or negotiate the terms of the sale & price (31%) or understand the process (63%). Stephen Phillips, the Chief Operating Officer for HSF Affiliates LLC, put it best:

“Home buyers are more informed than ever with their Internet searches and ongoing research; however, there’s a critical need to transform that information into analysis and advice that helps consumers make the best home-buying and selling decisions.”

The plethora of information now available has resulted in an increase in the percentage of buyers that reach out to real estate professionals to “connect the dots”. This is obvious as the percentage of overall buyers who used an agent to buy their home has steadily increased from 69% in 2001.

Bottom Line

If you are thinking of selling your home, don’t underestimate the role a real estate professional can play in the process. Call Christie Farris for all of your Real Estate needs.