Home Sellers: Read This Before Listing Your Home!
In todays real estate market it seems as though all sellers are looking to save a buck by selling their home on their own. That may be fine but you should know what you are up against. Below is a list of potential problems that could arise when trying to sell your home on your own.
1. Using A For Sale By Owner Company
There are some companies for a flat fee as low as $500.00 will offer you a “how to listing packet”. Usually you are required to advertise the property on your own, prepare your own “spread sheet” and hold your own open houses. The problem often is that the homeowner has no idea how to properly advertise their home or manage an open house. Knowing what the interest rate environment is like is very important in regards to showing potential buyers the total cost of owning your home.
2. Paying A Realtor A Flat Fee To List The Property In The MLS
This is becoming more popular with Realtors who are looking to make a quick buck. The home seller usually completes a bona fide listing contract for a flat fee, again this can be as low as $500.00. In return the agent inputs their information into the multiple listing service which is the site that professional agents use to list and sell homes. This is a proprietary site that is only available to licensed Real Estate agents. What the homeowner doesn’t realize is that professional agents are not going to bother to show a home that has no selling commission. So in other words your home is overlooked. Even if you are willing to pay a small commission it still doesn’t relieve you of supplying accurate property condition disclosures, reviewing purchase contracts that could be very complex, properly showing your home and disclosing all potential defects.
3. Under Selling Your Home
Thats right, under selling. This is a tough market and many times a homeseller wears their heart on their sleeve when it comes to selling their own home. I have seen instances in divorce cases, estate sales and relocation where the homeowner is so filled with emotion or needs to get out fast that they take the first offer that comes in. In the case of a death, the remaining spouse just wants out of the home and all the memories. A professional Realtor can separate the emotion from the transaction and many times get the homeowner more money.
4. Over Pricing Your Home
Otherwise known as the “Taj Mahal” syndrome. Every homeowner thinks their house is worth more than it actually is. I remember hearing a story where the homeowner was asking $5,000 more because they used Martha Stewart paint instead of Glidden or Dutch Boy. In their mind it was high quality custom paint. FYI…buyers don’t care. Over pricing a home will lead to extended time on the market which leads to the abyss. When homes are on the market to long buyers immediately think something must be wrong. NOT KNOWING THE PROPER VALUE OF A HOME IS THE NUMBER ONE MISTAKE THAT “FOR SALE BY OWNERS” MAKE.
5. How Do You Separate The Tire Kickers From Potential Buyers?
Lets face it the term nosey neighbors came from somewhere. Are you going to open your house to everyone? Including potential thieves? That’s right it has been known to happpen. While you are distracted with a neighbor your other guest is upstairs ripping off your jewelery. Even if you do end up with a potential buyer do you know how to confirm that they are pre-approved? Just when you think the transaction went smoother than you could have ever thought, 60 days later your potential buyer just got declined from the lender. Can you say “start all over again”?
If you still think you have the patience and determination to sell your home on your own at least KNOW YOUR VALUE. For a limited time we will offer you a FREE property analysis. This is the same tool a Professional Real Estate Agent would use to determine value. It is not just by asking your neighbor what they sold or bought their house for. This report takes into consideration your specific demographics, home sales in your surrounding market and most important it separates short sales, foreclosures, relo sales and distress sales from your homes potential selling price.
Click this link www.centerpointemortgage.com/sellingyourhome and complete the form at the bottom of the page and one of our specialists will contact you for your free home valuation report.
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