*We do not warrant the accuracy of these documents as they may change from time to time. Please contact the respective organizations for most current versions.
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.
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.
I sometimes have to remind buyers that all it takes is a coat of paint, yet they still walk away from a possible future home. Many buyers don’t realize the potential of a couple of hundred dollars. With that in mind, sometimes neither do the sellers. So, without further interruption, here is a list of ideas that you can do to make your home more appealing and attractive to buyers.
- Paint those walls! Nothing beats a fresh coat of paint. Choose a color that is neutral. Neutral = more buyers will be ok with it. Sure, it won’t be someone’s first choice, but no one has ever complained about the cream or white colored walls not matching their furniture. Shockingly enough, that makes a world of difference. I see a great change of perspective when I escort buyers to a house that at least has a fresh coat of paint on the walls.
- Buy some extra paint for the cabinets. Since we are adding appeal on a budget, I’d assume a total tear down of the existing cabinetry is out of your financial means. Have you considered painting the cabinets instead? Sure it will take a good day to do in many instances, but if that adds a few extra thousand to your selling potential, isn’t it worth it? While you’re at it, go buy some nice looking handles. With these efforts, your kitchen can easily pass for brand new.
Now do keep in mind that you want to tailor to a larger crowd, so keep the rule of neutral colors in play as well when painting your cabinets. Not everyone will like bold colored cabinets in their kitchen as much as you will.
- Declutter EVERYTHING. Small appliances, pictures, extra towels, shoes, books, half of your house. Put it away. You want to create an atmosphere that looks large and inviting. If your kitchen has too many appliances keeping people from cutting vegetables, or your bathroom has hairspray and accessories everywhere that gets in the way of the morning routine, it is hard for the buyer to picture themselves living there. Even when this is a fixed situation once you move out, buyers don’t look at it that way. Just like with the easy paint fix, you have to put your home in the best light, and investing a few dollars on boxes and a storage unit will do just that.
- Keep some of the clutter if it looks good. Towels, decor, candles, and flowers all look appealing to the buyers. Don’t be afraid to put out a towel set with a matching soap dispenser in your bathroom. Create a spa-like experience with your favorite scented candles.
- Clean your home. This is probably the cheapest option, but one that will have a great impact. Scrub that grime. Eliminate the mold. Keep dishes out of the sink. Sure, it is only temporary, but a clean car sells faster at a dealership, why wouldn’t the same rule apply here. Don’t be afraid to call in a professional to get the carpets cleaned. If you are not able to replace them, at least give buyers a reason to adore them. Make sure there are no questionable odors. You may be used to them, but your guests won’t be. Have a friend stop by and do a sniff test for you. Find out what is causing the questionable odor and eliminate it. Be sure to remove wild shrubbery and overgrown vegetation. Add some plants to the yard that will draw attention to your property. Curb appeal strikes the 1st impression. Make sure that buyers will be impressed before they even get out of the car.
Do you have any more tips that you would like featured on my blog? If so, don’t be afraid to reach out to me.
U.S. home resales rose more than expected in March to the highest level in more than a decade as more homes came on the market and were quickly snapped up by consumers.
The National Association of Realtors said on Friday that existing home sales increased 4.4 percent to a seasonally adjusted annual rate of 5.71 million units last month.
Economists polled by Reuters had forecast sales increasing 2.5 percent to a pace of 5.60 million units in March.
February’s sales pace was revised slightly down to 5.47 million units. Sales were up 5.9 percent from March 2016, hitting their highest level since February 2007.
The housing recovery has been underpinned by falling unemployment and rising wages. The unemployment rate declined to 4.5 percent in March to near a 10-year low.
But demand is outstripping supply. While the number of homes on the market rose 5.8 percent to 1.83 million units last month, housing inventory was down 6.6 percent from a year ago.
Properties typically remained on the market for 34 days in March compared to 45 days in February, the NAR said.
At March’s sales pace, it would take 3.8 months to clear the stock of houses on the market, unchanged from February.
“We had a housing shortage last year and in the early parts of 2017 the housing shortage has intensified,” NAR chief economist Lawrence Yun said.
Housing inventory has dropped for 22 straight months on a year-on-year basis.
With supply still tight, the median house price rose 6.8 percent from one year ago to $236,400 in March, the 61st consecutive month of year-on-year price increases.
(Reporting by Lindsay Dunsmuir; Editing by Paul Simao)
Original Article here
WEDNESDAY DINNER SPECIALS
No specials on Wednesday due to the new dinner menu!
FRIDAY DINNER SPECIALS
We are serving dinner this Friday, April 21st!
Black Angus NY Sirloin $21.95
With a bourbon peppercorn sauce. Served with mashed potatoes and vegetable of the day.
Chicken Carbonara $13.95
Chicken breast, peas, mushrooms and bacon, sauteed in a garlic and parmesan-basil cream sauce. Served over linguine.
Blackened Salmon $15.95
With a Cajun tartar sauce, rice and vegetable of the day.
April 27: Trivia Night
Note: We would like to clarify our announcement from last month regarding team maximums. We are extending the max # of players allowed to 11 only in special cases, such as having out-of-town family. The general max is still 10 people to keep everything fair. We apologize for any confusion.
Boursin stuffed chicken breast
Grilled Marinated Pork Loin Chops
Chef’s choice dessert
April 28: Kathi K9s Tournament
I’ve attached a pdf of the High Point Community Calendar of Events. Be sure to take a look at the St. Patrick’s Day celebration dinner. I am sure it will be yummy.
If you are interested in the current homes available in the High Point Community, feel free to take a look on our HomesofHernando.com website. Let us know if you need any help.