| Written by ForSaleByOwner.com staff |
| Realty agents like to say that they only win when their clients do. But is that really true?
Agents’ claims and business practices are a matter of debate even within the industry. Here are some common arguments agents use to justify their fees – and the other side of the coin. Is the agent using your house to get buyers for other houses? Online ads sell houses, according to the National Association of Realtors’ 2011 Profile of Home Buyers and Sellers. Househunters rely heavily on online ads to screen houses they are interested in and to scan the market. But when a buyer contacts an agent about your house, the agent may well divert that buyer to another house or try to lock in that buyer for a househunting expedition. Why let your house be used as bait for the agent’s other goals? When you sell by owner, you see every single email and catch every single call generated by your listing. If a buyer isn’t serious or isn’t qualified, you can screen them out by asking for proof of loan preapproval. But you won’t be wondering why your house isn’t attracting attention, when the agent is simply skimming inquiries for herself. “I have a buyer for your house, but you have to list with me first.” This is a common tactic agents use to try to get by-owner sellers to list with them. Of course, once you list, the buyer evaporates…but the listing contract doesn’t. There’s an easy way around this: offer a single-buyer listing. This contract ensures the agent a fee – which, of course, you should negotiate – to show the house to one specific buyer. Require that the name of the buyer be in the contract. If the agent balks, you’ve called his bluff: the phantom ‘buyer’ was a ploy to get you to list. Is this agent actually representing you, or is this a complicated arrangement that you haven’t heard of? As if things aren’t already too complicated, state real estate regulations keep changing – and not in consumers’ favor. According to industry publication Inman News, it’s no longer safe to assume that an agent is actually working for you, even if you are paying her. The Inman article reported that “Consumers may assume that, like a lawyer, a real estate agent always represents their interests and their interests alone. But the rules governing the agency relationships between consumers, real estate brokers and their agents vary from state to state, and have been completely rewritten in the last 25 years. Laws in most states allow real estate agents to “double dip,” representing both the buyer and seller in the same transaction without owing either party their undivided loyalty. To be safe, don’t rely on past experience – those laws may have changed. Instead, contact you’re the agency that regulates real estate agents in your state and bone up on the current rules. If you decide to go with an agent, read the contract carefully. If the agent glosses over the technicalities, consider taking the contract to a real estate lawyer for review. The last thing you want is to find out that the agent was actually working for someone else – and you didn’t get the best deal you could. |
Realty agents like to say that they only win when their clients do. But is that really true?
Why a Flat Market Is Good for Buyers
Why a Flat Market Is Good for Buyers
Did we get that wrong?
Nope. That’s the figure for non-distressed sales – that is, ‘normal’ sales unaffected by foreclosures and short sales, according to mortgage number cruncher CoreLogic. Prices were down only by 0.9% for non-distressed sales, but dropped a scarier 4.7% for all properties, with distress sales factored in.
That the real estate market is scraping along is actually good news, reports Mary Umberger in the Chicago Tribune. She interviewed a prescient economist who predicted the housing bust. Now, he’s saying that things are looking up.
Here’s what Christopher Thornberg told her:
“A couple of years ago, I was saying that we were still in the bubble, don’t buy. But now I’ve been saying, if you need a house — if you recognize that a house is a consumption good and not an investment opportunity, you should consider buying. With interest rates continuing to come down and with prices that have sagged, in some markets — particularly Florida, Arizona and Nevada — affordability is at record levels. But it has to be a long-term hold — you have to be in long term.”
His position: if you aren’t counting on your house to be an investment, but you simply want to recoup what you’ve put into it, today’s low prices combined with today’s low mortgage rates make today a pretty good time to buy.
Mortgage Rates Flat Line
Good News: Mortgage Rates Flat-Line
Mortgage rates are likely to plateau at their current level of about 4%, according to analysts quoted in the Hartford Courant. That’s good news for buyers and sellers, though the underlying drivers aren’t so cheery.
Demand for mortgages will remain tepid mainly due to these factors:
Rocky employment trends – despite the recent uptick in hiring, millions of Americans are unemployed or underemployed
Eroded credit – Struggling to regain firm financial footing, many would-be buyers simply don’t have a good enough credit score or enough of a down payment to qualify for a mortgage
An unappetizing array of homes on the market – Foreclosures and distress sales still dominate
What does this mean for this spring’s sellers?
Be sure your buyers are truly qualified. To get the very best of the current low rates, they will have to have a hefty down payment and polished credit scores. Don’t waste time with marginally qualified buyers.
Position your house as a ‘smooth move:’ if you’re not selling short, your traditional home sale should face few barriers to lenders and buyers.
Less is More. What Buyers Really Want
Less is More, A Lot More, for Today’s Buyers
According to the Chicago Tribune, home buyers are getting very practical. They’re zeroing in on their needs and quickly eliminating their ‘wants’ as they seek to get the most for their money.
Here’s a summary of most-wanted and least-wanted amenities. You’re in luck if your house already has the most-wanted. If your house has the least-wanted, consider how staging can reposition those spaces as most-wanted.
What buyers want:
- First-floor flex rooms that can be used for dining, exercise, games or a home office
- ‘Pocket offices’ for household billpaying and paperwork
- Larger, informal, eat-in kitchens
- Lots of storage and walk-in pantries
- Spacious mudrooms and laundry rooms
What buyers aren’t willing to pay extra for:
- A breakfast room off the kitchen
- A sitting room adjacent to the master bedroom
- Overly large secondary bedrooms
- Formal dining rooms that can’t be repurposed
Market Update June 2010
Dear Folks, this Spring proved to be quite a busy period for most of our sellers. Listings and sales are both up in excess of 15% from the same period last year. This is a result of pent up demand, an improving economy and in many cases the home buyer credits that expired April 30th.
Lately we have been asked “where do we go from here?” First of all, the good news is that the market in Houston still remains strong. Interest rates remain low (for now). In addition, we are in the prime selling season. While there is no “bad” time to sell in Houston, June-August is typically our busiest months. This being said, here are few tips you may wish to consider:
1) Make your home stand out amongst the competition. When the prospective buyer drives up, what do they see? Is the grass cut? Are the flower beds freshly mulched? Do you have a voice mail system to capture all calls?
2) Is your yard sign stocked with updated flyers? Please remember, you can order your own flyers by contacting our friends at Zeus Mortgage or by emailing Flyers@askZeus.com.
3) Update your ad on ForSalebyOwner.com. The site shows the last time you have made any changes. Fresh ads create interest. Plus, if your photo is from the early part of the year and the grass is brown, now is the time for you to replace it with something new.
4) Are you competitively priced? We are still in a buyers market, and they (the buyers) know it. Chances are this is the number one reason why a home does not sell. Be realistic about your price. Be at the midpoint or below in your market. If you are not sure where you should be, it may be a worthwhile investment to bring in a state certified appraiser. Appraisals typically run $350.
5) Advertise! Utilize all resources available to you: Internet, Signs, Magazine, MLS. You do not know where your buyer is going to come from. Maximize your exposure.
6) Brush up on your skills: home preparation, taking calls, showing the home etc. You can do this by joining us at our next seller seminar on 6/10/2010 from 6:30 – 9:00. Call 713-683-0050 or email us to reserve a seat.
Selling by Owner, you are truly in an enviable position compared to your competition. We encourage you to take advantage of what is available to you and act now rather than later. As always, please feel free to call or email with any questions on how we can help you make your FSBO experience successful.
Sincerely,
The For Sale by Owner Team
713-683-0050
For Sale by Owner/My Castle Realty Team # 8 in Houston Market
March 2010. For the 4th straight year ForSalebyOwner/My Castle Realty rank in the Top 10 for closed transactions per Houston Business Journal. While most real estate companies reported decreased sales, the “FSBO” team actually showed an increase of 5%. Proof that no commission real estate and better marketing are the way to sell your home in todays market
Home Sales Market Update
Dear FSBO’s – The Texas market continues to buck the national trend in home sales. In fact our business showed a 7% gain in closed transactions over the past year. Proof that No Commission Realty and Better Marketing are the keys to successful selling in this type of a market.
Heading into the 2010 selling season, we are “bullish” that sales will remain strong through the spring and early summer. There are however some upcoming events taking place this summer that concern us. A) The New Home Buyer Credit and Existing Homebuyer Credit expire at the end of April (closing must take place by June 30th) B) FHA is changing the minimum requirements. Some of the changes coming down the pipeline are increasing the minimum down payment from 3 1/2 % to 10%, plus limiting the amount a seller can contribute to closing costs from 6% to 3%. C) Interest rates are likely to rise by summer. We have been hearing this one for some time now, we suspect this time it may be for real. We are confident home sales will continue beyond the summer, nonetheless, the next few months may be optimal time for you to put your best foot forward and get your property sold.
Here are a few suggestions: A) Review your price: If necessary, pay to have an independent appraiser give you a true market value. We can give you names of appraisers if you need. B) Market your home properly: Utilize all facets available to you including; Internet, Print and Flat fee MLS. C) Keep your flyer box full. If empty, email flyers@askzeus.com. Give them your ID and they will be happy to send you free color flyers at no charge. D) Update your ad on ForSalebyOwner.com. Buyers look at the days since last updated. If excessive, they may feel the home is no longer on the market. E) Brush up on your skills: home preparation, taking calls, showing the home etc. You can do this by joining us at our next seller seminar on 2/11/2010 from 6:30 – 9:00 at the Westchase Marriot. Call or email us to reserve a seat
Selling By Owner, you are truly in an enviable position compared to your competition. We encourage you to take advantage of what is available to you and act now rather than later. As always, please feel free to call or email with any questions on how we can help you make your FSBO experience successful.
Sincerely,
The For Sale by Owner Team
713-683-0050
ForSaleByOwner.com: New Industry Report Gives More Reasons to Sell a Home “By Owner”
CHICAGO, Dec. 16, 2009 – ForSaleByOwner.com, the nation’s leading “by owner” real estate website, today hailed a recently released annual report from the National Association of Realtors (NAR) that compared “by owner” home sellers with agent-assisted sellers. NAR’s “2009 Profile of Home Buyers and Sellers” found that home sellers who sell “by owner” on average sell their homes quicker and closer to asking price than agent-assisted sellers. The report also found that more people are using the Internet to search for a home and that real estate agents are no longer the most common way that buyers find the homes that they purchase.
The report from the real estate agent trade association discovered that “by owner” sellers received at least 97% of their asking price on average, while those represented by an agent got at most 95% of their asking price on average. The report found that “by owner” sellers sold their homes in 6 weeks on average, while it took agent-assisted sellers 12 weeks to sell their homes on average. According to the report, 90% of all buyers use the Internet to search for a home, up from 87% in 2008, 80% in 2006 and 71% in 2003.
The report also discovered that, for the first time, the same percentage of buyers found their home on the Internet (36%) as those who found it through a real estate agent (36%). The Internet has become the primary source to find real estate and has trended upwards throughout the decade, while it has trended downward for agents. For example, in 2001, early in the decade, just 8% of buyers found the home they purchased on the Internet while 48% of buyers found it through a real estate agent.
“This report provides ample reasons why the ‘by owner’ home selling method is a great way to sell a house,” said Greg Healy, Vice President of Operations for ForSaleByOwner.com. “In addition to saving on a potentially large commission, a ‘by owner’ seller can expect to sell a home quicker and closer to asking price.”
“Even in a bad housing market, the ‘by owner’ seller is able to outperform agents because the Internet provides the home pricing tools, advertising and marketing, and real estate resources that a seller needs. We are also excited about the fact that an equal percentage of buyers are finding their homes online as through an agent, which is an important milestone for Internet marketing of homes. In over view, the Internet has become the most effective way to find, market and sell a home,” added Healy.
NAR’s “2009 Profile of Home Buyers and Sellers” was based on a questionnaire sent to more than 120,000 consumers who bought a home between July 2008 and July 2009. The survey produced more than 9,100 usable responses.
Is an agent really necessary?
In today’s market is the agent really necessary? In our opinion, the traditional full service agent is like a dinosaur… A relic of the past.
Traditionally, realtors were crucial to the process because they:
(1) Were the sources of knowledge and information on such topics as home values, neighborhoods, schools, and the local real estate market,
(2) Provided home sellers with the means of advertising their homes, and access to the MLS,
(3) Provided homebuyers with a consolidated database of existing homes for sale.
Today, all the information a homebuyer or seller needs is available for free on the Internet. FSBO magazines and Internet sites such as For SalebyOwner.com and TexasFSBO.com provide sellers with far-reaching advertising outlets, including Flat Fee MLS listings, for a cost of only a few hundred dollars, and they provide buyers with a convenient and hassle-free means to viewing available houses on the market. Paying exorbitant realtor fees can no longer be justified. YOUR home is YOUR castle. Don’t throw YOUR money away.
For Sale by Owner/My Castle Realty Team #8 in Sales
Congratulations to The For Sale by Owner/My Castle Realty Team for being recognized by The Houston Business Journal as one of The Top 10 offices for home sales, the past three years in a row. By cutting out the commission and eliminating the hassle of agents in the middle, For Sale by Owner homes typically sell faster with a lot more money left in your pocket.