FSBO, Real Estate Agent, or Both?

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When you decide to sell your home you should consider your options. The traditional method of using a real estate agent is the safe route but can be expensive. The for-sale-by-owner or FSBO method can save you thousands of dollars but might be more work than you expect. Let’s look at the two methods in detail so that you can make an informed decision

Using a real estate agent is the easiest method because you have someone who is trained to sell your home for you. A real estate agent can guide you through each step of the selling process. Your involvement is at a minimal when a real estate agent is in charge. There are several big advantages to using a real estate agent when selling your home.

Real estate agents can market your home using the Multiple Listing Service or MLS. This service allows agents to market your home to other agents and on the internet. Only real estate brokers may list a home on the MLS service. This service is one of the best ways to market your home. When an agent is trying to find a home for a buyer they will use the MLS to look for potential homes. There are thousands of websites that use the MLS listings for content. This means that when you home is listed on the MLS it will be listed on hundreds of websites. Being able to list your home on the MLS is one of the greatest advantages of listing your home with a real estate agent.

Real estate agents will show your home for you. You won’t have to be at home for others to see it. Your agent will take care of showing your home and arranging for other agents to show your home. This is a great time saver. Imagine a hot buyer wanting to see your home in the middle of the day while you are at work. Do you want to have to leave work every time someone wants to see your home?

One of the biggest advantages of using a real estate agent is that they will negotiate for you and handle the paperwork. Selling your home by yourself can be tricky if you don’t understand real estate contracts. You don’t want to lose thousands of dollars or the sale because you don’t understand the contract. Real estate agents can help you get to the closing table.

Selling a home via FSBO has its obvious advantages. Selling your home with a real estate agent will cost several thousand dollars. If you are lucky enough to sell your home FSBO then you will save thousands of dollars. The downside of selling FSBO is that it takes a lot of work. You will have to show your home when someone wants to see it. You will need to be able to negotiate the contract and get everyone to the closing table. You will also need good marketing skills. Selling FSBO is difficult and seldom works.

I would suggest you consider using both methods. You can get the benefits of both methods by using a flat flee service. These services take a flat fee, usually around $500 to sell your home. This method allows you to list on the MLS, use an agent to negotiate the contract, and save a few thousand dollars. This method uses a real estate broker to list your home and do the paper work. If an agent brings a buyer you will have to pay 2 or 3 percent commission but if you sell it yourself then you save the commission.

Take a look at your options before selling your home. Consider the advantages of each and pick the one you are most comfortable with.

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Source by Jordan S Ashton

A Free Listing of Your FSBO Real Estate May Not Be Enough

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Perhaps you're considering a free listing for your FSBO real estate. You feel you're ready to sell your property yourself. Whether it's the first time you've done this or it's part of your real estate investment strategy, you want to save the money you've got to pay to a real estate broker. In fact, you've sharpened your pencil and cut out as many unnecessary costs in selling your property as you can.

Now is the time to examine all the ways you can market your property effectively. A free listing of your real estate is definitely worth considering. The question is: will buyers in your particular real estate market for FSBO properties respond to a free listing? Many areas are experiencing a glut of properties for sale. Some free listings really do not get the exposure you really need for your property. Worst of all, your property listing may be just another "face in the crowd" of eager sellers who want the same thing as you.

What's a seller to do? One of the newest ways to get laser-targeted traffic to your offer to sell is through the Internet. Having your own locally specific listing appear in the big search engines can create a flood of interested buyers calling and scheduling appointments to view your FSBO real estate. Even better, you can compete directly with MLS and real estate brokers on a level playing field.

Perhaps you're not "tech savvy", or are hesitant to explore the idea of ​​your own Web page for your FSBO real estate.Discover how easy, effortless and effective having your own Web page can be. Remember that a free listing does not always pay off if you do not get serious buyers in return.

Creating an attractive, compiling web page for selling your FSBO real estate may seem like an expensive, daunting task. It does not have to be. Yes, if you have to assume all the separate chores of creating your Web page, you'll need to:

Buy a domain name

Pay for hosting

Pay a web designer to create your page

Pay a graphics expert to create all the images you'll need

Pay a Web master to maintain your page

Worry about whether your page is getting enough traffic to justify all this expense – which can be upwards of $ 3,000 if you buy each part individually!

It does not have to be that way. Instead, you can take advantage of a new way of making your mark on the Internet. There is now at least one service that can get you up and running at no risk to you. All the chores, worry and guesswork have been eliminated for you. Even better, this same service allows you to set up your Web page with no up-front cost to you. If you do not like it, you pay nothing!

You've found your way here. Take a careful look at all the benefits of having your own, personal, affordable Web page for listing your FSBO real estate. Then think about how long it might take for a free listing to bring you the same amount of traffic. A free listing may not cost you anything, but your monthly mortgage payments will. Every day your property stays on the market is costing you money. Get started now with the best way to show and sell!

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Source by Lucas Hoppel

Benefits of Selling A House For Cash

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Selling a house for cash is becoming a popular alternative for homeowners who need to sell their property quickly. With the current credit clog and sluggish real estate market, many sellers are finding it difficult to locate qualified buyers. Instead, they are turning to investors who are able and willing to ante up cash.

Selling a house for cash is no different than selling to a buyer who obtains traditional financing. However, there are benefits with cash transactions that can not be obtained when the buyer requires funding through a bank.

The primary benefit of selling your home for cash is the deal can be closed in a matter of days instead of weeks. There are no long forms to fill out with the lender and no waiting for approval. Currently, banks are placing tightening restrictions on borrowers. There are no more "no-money-down, get-in-over-your-head" mortgages. In order for buyers to obtain mortgage approval today, they must have a decent FICO score and able to provide a down payment of at least 20-percent.

It's no secret the economy is in the dumps. With the ever-growing unemployment rates, people are afraid to buy real estate for fear they will lose their job and then their home. They are not willing to take that much of a risk. Nearly every homeowner is feeling the pain from lack of qualified buyers.

On the other hand, real estate investors are buying houses all across the nation. Many of them are purchasing properties with cash simply because traditional lending sources have been discharged up. Although the media likes to project financial gloom and doom, there is still an abundance of private money available. Established investors are able to tap into that money to expand real estate portfolios for their self and clients.

When selling real estate to a private investor, the seller benefits from their expertise. Many investors are skilled in foreclosure and short sale transactions. Both require extensive knowledge and developed relationships with various lenders.

Short sales are particularly tricky and require specific documentation. Homeowners who have obtained short sale approval are not able to profit from the sale of their home. Instead, they must locate a buyer in exchange for the lender accepting less than is owed on the loan. Working with a short sale specialist can increase a successful exit ten-fold.

Another benefit of selling houses for cash is there is no need for a Realtor. This alone can save thousands of dollars in commission fees. Legal documents are required to transfer real estate. Always read and understand these contracts before signing on the dotted line. It is best to retain the services of a real estate attorney to ensure documents are legally binding.

Few people are aware that they can sell their house to real estate investors. If you need to sell your home fast, take advantage of this little known resource and reap the rewards.

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Source by Simon Volkov

Tips on How to Sell Your Home Quickly!

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When selling your home, it is extremely important to show your home at its potential. Here are a few simple things you can do to increase the attractiveness of your home to potential buyers while still keeping within a budget. Some of these items are do-it yourself projects and some require the help of a professional. Either way these changes will help you get top dollar for your home and also have a great return on investment.

In cost ascending order, here is what you can do to better present your home:

1) De-clutter, De-clutter, De-clutter – This is probably the most cost effective improvement you can choose to do. When it comes to showing your home, less is more. Remove religious items, family photos, gadgets and knickknacks. Keep in mind, you want the buyer to remember the home and not your collection of seashells.

2) Clean – I know you are busy, but grab the glass cleaner and the vacuum and get rid of those dust mites and smudgy windows.

3) Upgrade hardware – Are those handles on your kitchen and bathroom cabinet doors still from the 70's? Changing the hardware is a simple and cost effective way to give a new, modern look to an old cupboard door.

4) Upgrade light fixtures- Along the same lines as # 3, change old, outdated light fixtures and electrical cover plates. These are cheap to replace yet make a huge difference in the appearance of a room. Do not forget to make sure to replace burnt out light bulbs as well.

5) Paint – Freshen up the interior of your home with a new coat of paint. Use a neutral color to make the space appear larger than it is and also to allow the buyer to envision their own furniture in the space. Neutral colors are the best way to go as it allows the buyer to remember the space and not the bright orange wall color you chose in the 80's.

6) Upgrade flooring – I know the old shag rug in the living room is a classic, but a potential buyer probably will not agree. If it's in your budget, replace it with simple, neutral broadloom or hardwood floors. If hardwood is way out of your budget, opt for laminate.

7) Kitchen Upgrades – We all know women make the final decision when buying a home. We also know that one of the first rooms a woman looks at is the kitchen. If it's not in your budget to re-model the kitchen then consider replacing those old appliances with stainless steel. Stainless steel appliances are sleek and will give your home that modern touch.

8) Curb Appeal – OK, so the interior of the home is looking spiffy, we can not forget about the exterior – after all the front yard is the first thing the buyer sees when they pull up to the home. Make a good impression and make the home more inviting. Grab that lawn mower and hedge trimmer and add a few flowers. In today's market climate it is more important than ever to make your home more attractive to potential buyers. After all, you only get one chance at a first impression so why not make it a good one!

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Source by Joy Paterson

House Selling Tips to Sell Your House Without a Realtor in Any Market

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I would like to give you some house selling tips because selling a house in any market can be difficult. Houses sit on the market for months and maybe years even if you have a Realtor. Most people do not know how to sell their house privately. This is understandable because because being a real estate agent does take training that is not available to the average individual. The foundation to selling your house by yourself is simple. All you need to do is treat it like a job. If you take selling your house privately very seriously the extra revenue that you will get by not using a Realtor will make your time and effort well worth it.

The first house selling tip that every owner should get is that you need to do your research. The first phase of research is your local market conditions. Thanks to the internet this is easily findable on a variety of financial sites. This will help you decide if you can hold onto your house a little longer if the market is that bad. Some people do not have that option but if your selling your house without a Realtor chances are you have some time to wait out a bad market. The second phase of your research has to do with comparable houses on the market in your area. I would stick within a 10 to 20 mile radius of your house to get accurate conditions. The more local you stay the better. You really only need to look at 5 to 10 houses to get a good feel of pricing. While doing this research you need to look at price, condition of the house, location, and features. Another great house selling tip in this area is to contact the listing agent for some of the houses on sale. While speaking with this Realtor it will benefit you greatly to get as much information as possible from them. Ideally you want to know how many offers have been submitted and how many people have shown interest in the property. You also will want to note how the property was listed. Go online and read the descriptions of the houses on sale to get an idea of ​​how to word your posting.

The second phase of selling your house privately is the condition of your house. Upgrading your house to look amazing often only takes a few bucks but can get cost if you do not know where to invest your money. The first area you want to upgrade is the outside of the house. This is called "curve appeal". This includes your landscaping and general condition of housing and other permanent features like your sidewalk or patios. The outside of your house is your first impression. An unkept landscape will make potential buyers drive right by. This should be the first place you spend your budget. A good tip to keep in mind is keep it simple and clean. As for the inside major upgrades are usually unnecessary and will end up not worth the extra investment. The major rule of the inside of your house is to de clutter it. Just like the outside keep it simple and clean. Make sure your house is dusted and the walls are perfect. The only major renovation I would recommend if you have the budget and the proper layout is a finished basement and extra bathroom. These are 2 major points that will separate you from your competition. An extra bathroom may be necessary if you only have 1. And a finished basement should be done if it already insulated and just needs some carpeting and drywall. If your foundation needs a major overhaul, do not do it.

So in closing of this house selling tips guide the key phrase here is keep it simple and clean. The second key point to selling you house without a Realtor is to do your research. If you take the extra time you will be rewarded. Stay positive and do not get greedy and you should be able to sell your house privately in any market condition.

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Source by Ian Reese

For Sale By Owner Signs – Why They Are a Big Mistake

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Every year, thousands of homeowners opt to avoid real estate commissions by listing their homes themselves without a Realtor®. It makes a lot of sense, why pay 6% of the sales price if you don’t have to (especially in a down market like today)? There is nothing wrong with this thought process or the decision to sell for sale by owner. However, the decision to go to a hardware store and buy a cheap white and red For Sale By Owner sign with a place to write in your number with a black marker, actually is a mistake that should be avoided.

Rather than use a For Sale By Owner sign, you should do one of two things. First you can design a custom sign that does not say For Sale By Owner and looks like a real estate company sign, but with your contact information. It does not have to say Realty, Properties, Real Estate or anything like that. It just should not say For Sale By Owner, By Owner, or anything of that nature. It needs to look like a real estate broker sign even if the subdivision name or something else is in the spot where you would normally have the real estate broker name. The second option is, if you are using a flat fee listing company to gain MLS entry, use that broker’s sign with your contact information on it (as long as it doesn’t have the same type of ‘for sale by owner’ slogans or URL’s the cheap signs from the hardware store have). You will benefit from the professional look with the Realtor® logos, while still getting all the drive-by phone calls that any For Sale By Owner using a cheap sign would receive.

Almost any sign company including several real estate sign companies on the Internet can assist you in designing and printing a For Sale sign. It might have a house on it, a snow scene if you live in the mountains or just be professional-looking with stylized fonts in 2 or more colors. You should place an Equal Housing Opportunity logo on it. Make sure it is the standard size metal sign that you see in your area, such as 2′ by 3′, and if possible, have it installed on a wood post or H-frame. Many major cities have sign installation companies that install and remove posts and signs for real estate agents; again this adds to the professional look and feel of the sign.

When your sign ceases to look like a cheap For Sale By Owner sign, you will cease to receive as many agents hassling you about listing your property with them. They are more likely to think you are already listed by an agent since your sign looks like a professional sign. (It is an ethical violation to approach the seller unsolicited and attempt to get a seller to cancel their listing and switch listing agents). Unrepresented buyers are less likely to realize right away that there are no agents involved and ask for a discount based on avoiding commissions. You are also less likely to be approached by scammers who attempt to prey on unrepresented sellers with various schemes like kicking back illegal payments to shill 3rd party companies. Finally, the professional -looking sign will tell prospective buyers that you are serious about selling; you did not just throw a cheap sign up on an overpriced property to see if anyone would pay your above market price.

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Source by Donald Plunkett

Listing Your House For Sale By Owner

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Houses for sale by owner are more common than ever. The "by owner" method used to be thought of as unprofessional but that's no longer the case. There's plenty of advice available in Internet FSBO (For Sale By Owner) discussion groups where "houses for sale by owner" buyers and sellers congregate to talk about their experiences.

A house for sale by owner means that a Real Estate Agent (REA) is not involved in the transaction. Since the average person moves every three to five years, and the average REA commission runs from 6,000 to $ 10,000, the FSBO route can save over $ 100,000 in agreements over the average lifetime! But there is a price to pay in return for saving those transactions because the seller will have to perform the duties the REA customarily performances.

What are those duties? It starts with advertising the home and arranging the showings, but it also includes making the legal disclosure requirements, purchase and sales agreement negotiation, arranging for title transfer and closing, plus handling the other details that inevitably come up before the deal closes.

You can be part of the house for sale by owner trend without having to be 100% on your own. If you're concerned about the legal aspects of selling your home, you can hire a Real Estate Attorney to navigate the legal maze for you. What kind of legal issues do you potentially face? Here are just a few:

Completing the Residential Property Disclosure Form.

Completing the Lead-Based Paint Disclosure Form.

Distributing the EPA's Lead Based Paint Hazards Booklet.

Drafting the proper Warranty Deeds.

Drafting the Real Estate Purchase and Sale Agreement.

These are not tasks to be undertaken by the uninformed! If you're considering selling your home FSBO and feeling a little nervous about all that it entails, you're not alone. Fortunately, there are many FSBO guides and for sale by owner tips to help you out and they're all on the Internet!

Houses For Sale By Owner can also be listed on FSBO web sites and in publications which are the functional equivalent to the Multiple Listing Service (MLS) used by Realtors. Actual MLS listings are also available for a flat fee of around $ 250 to $ 600 depending upon where you live.

You can also list your home in many of the Real Estate Classifieds magazines that are given away at newsstands and convenience stores. All of this helps to generate traffic to your home so you can be part of the money-saving House For Sale By Owner trend!

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Source by B Shelton

FSBO: Not For Everyone!

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Selling your home yourself, commonly called for Sale By Owner or FSBO, is a method employed by a growing number of homeowners chiefly to offset high real estate contracts. With real estate contracts as high as 6%, property that is valued at more than $ 300,000 can easily mean a real estate commission of $ 20,000 or more. These monies are almost impossible to recover in the form of a higher selling price, therefore some sellers have opted to list their homes for sale apart from the services of a licensed realtor and keep the commission. Let's take a closer look at the FSBO trend and see if a sale of your home apart from a realtor is right for you.

Before going the FSBO route, there are some questions you must ask yourself:

How long do I plan on listing the home by myself? In other words, if the home does not sell, will I keep trying to sell it on my own or is their a specific timeframe when I will quit and turn over the work to a realtor?

Do I actually have the time to sell the home myself? Remember: all of the legwork accomplished by your realtor will have to be done by you when doing a FSBO.
Should you decide to go ahead and sell your home on your own, please consider the following points:

Any person can claim to have the funds available to purchase your home when in reality they do not. Make certain that prospective buyers carry a pre-approval letter from a certified mortgage company before proceeding.

Will you have the time to make appointments for interested parties to stop by your home?
Will you be able to correctly assess the proper market value for your home apart from the input of a realtor?

Do you have the correct legal documentation to proceed with a sale? Importantly, at this point in the game retaining the services of a real estate attorney is essential.
Who will pick the title company and who will pay their fees?
Will you offer a home warranty with the sale of your home? What does that warranty cover and will it protect you in the event something major happens?
What legal protection do you have in the event the buyer chooses to sue you 6 or 12 months later?

Going ahead with the FSBO requires that you be fully aware of your responsibilities in helping to bring the transaction to a successful conclusion. While a FSBO deal can result in financial savings for the seller, the time expired in arranging the sale of the home is typically greater than most sellers anticipated.

Clearly, FSBO is not for everyone and studies have shown that as many as 80% of FSBO voters ever choose the services of a licensed realtor to move their homes. So, before embarking on a FSBO listing, weigh all of the factors and the legal requirements of your state before proceeding.

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Source by Steve Arnold

Selling Your Home: Top 5 Reasons FSBO's Do not Sell

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As a home inspector, I get to see many mistakes by people selling their home without a real estate agent, commonly referred to as FSBO's or For Sale By Owner. If you do your homework and research and have some financial sense, you can probably sell your own home. However, I see many people who fail when going this route.

Here's why:

1. Pricing The Home Too High: Seems everyone thinks they live in a goldmine. The common misconception is that they will price it high so they can come down a little bit during negotiations. This has several problems related to it.

Here's one. Many homebuyers are on a budget. Let's say I'm looking for a home like yours in your neighborhood and most of the homes there that are comparable are in the 135k to 145k ranges. However, you have tile floors and stainless steel sinks along with a few other cosmetic improvements. You think your home is worth at least 147k. Tack on a few thousand more "so you can come off the price during negotiations" and you start your home at 152k

As a homebuyer, the most I can spend is 145k. Although your home is what I'm looking for, you're outside my price range so I will not even bother to look at your house.

That's just one example of how a too high price is going to hurt you. There are many, many more!

2. Letting Emotions Direct Your Actions: Many times this is the reason your home is priced too high. Remember, this is a business transaction. You have a product to sell, you need act accordingly.

3. Failing to Get Your Home Inspected Before Listing: I've seen FSBO's go to great trouble and expense to get their home ready to sell only to find out from the potential Buyers Inspector that there are major structural, plumbing, electrical or mechanical issues with the home.

Depending on the severity of the problems, this probably cost you a Buyer and it means your home will be sitting on the market for a few more weeks or months.

National survey's reveal that homes that have had pre-inspections sold faster with less hassle at closing. FSBO's are no different.

4. Being a Jerk: I see this one more than you'd think. For some reason selling your home by yourself seems to give you a special excuse to be a jerk judging by the way some FSBO's act.

Being unreasonable in your actions will drive away Buyers. No one likes a jerk!

I've seen FSBO's make some of the most stupid request of Buyers like; one guy would only show his home on Sunday afternoon between 4 and 6 pm and you had to RSVP so he had you on his list. He surprised why no one was showing up at this home. I saw another FSBO that would not allow his home to be inspected without him, his attorney and his inspector being present. He also required each item to be bought up to him and his group before telling the Buyer. Needless to say, we did not inspect this home. Note: many state SOP's require that you do not divulge information to anyone other than the Client.

It's a fact of life, being a jerk cost you money. Not only in real life, but also when you go to sell your home!

5. Not Pre-qualifying Your Buyers: Letting any old Moe and Joe lock up your home while they try and get qualified can cost you Buyers if they fail to qualify for a loan. Require that all potential Buyers be pre-qualified!

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Source by Donald Lawson

Not Using a Realtor – Why It's Not a Good Idea to Shop For a New Home Without a Realtor

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Are You Thinking Of Buying and Not Using a Realtor to Buy a Home? Buying a house is one of the biggest decisions you'll ever make in your life. Now big is of course relative but we're talking of buying a house not a candy bar in your local grocery store. Moreover, homes nowdays cost anywhere from $ 100,000 or more. Certainly, that is a big amount for most people in the United States.

Can you buy a home not using a Realtor?

This is a question most people ask and the short answer is yes but do you really want to. These professionals will help you make the purchase much smoother and they will be sure to look into things and issues that you may not have thought about during the initial stage of the purchase.

It's not a good idea to shop without assistance because there's a huge market out there of potential properties. A professional will be able to assess exactly what your needs and requirements are and can already tap into a list of potential assets that fit exactly what you want. Without these people, you will be drowned with a plethora of different options and may even miss out on the best ones.

Also, you will not be able to negotiate the buying price as good as a seasoned professional. These people do this for a living and it's fair to say that they're pretty good at getting you the right price for any property. They can be aggressive on pushing down the price to a comfortable level at which the two parties can transact.

In other words, just by the amount of experience that they get, you're sure that they can give you housing at much better prices. When doing due diligence, it is very difficult to coordinate with several people in order to inspect the property. Using a Realtor can help you with inspecting for wood quality, land / terrain analysis, existence of pests, humidity, etc. They already know people who can do these tasks very well and who can write you an objective report in order to better assess the value of the property.

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Source by Andrea D Johnson