FOR SALE BY OWNER?
Everyone knows the market is slowly recovering. The Fed has even hiked interest rates (well, hiked may be a bit of an exaggeration) as an indicator that the US housing market, among other economic factors, is on the mend. As a result, some homeowners might consider trying to sell their home on their own, a phenomena known in the industry as a For Sale by Owner (FSBO). There are a lot of on-line marketing schemes which have been set up to help FSBO participants. All you need is to put a sign out front and an ad on a FSBO website and you are good to go, right? How hard can it be?
Well, Tom Ferry, a well known Real Estate guru recently tweeted, “Studies have shown that the typical house sold by the homeowner sells for less than when it’s sold by an agent
It’s a great article I would encourage anyone thinking of selling by themselves to read it. I want to emphasize a couple key items. This is not like selling your car. You cannot pull out the registration, flip it over and sign it over to the new owner. It doesn’t work that way. Especially when there is a mortgage in place which must be paid off and the buyer is getting a new mortgage.
The paperwork involved in selling and buying a home is quite extensive. I counted the number of times one of my buyers had to sign his name during a closing ceremony and he signed it 68 times. Now granted, some of those forms were copies, but the majority of them were unique documents. I closed on a cash purchase home and although there were not 68 signatures required, there were still more than 31.
The Real Estate contracts and forms are designed to protect both the seller and the buyer, so you want to use good ones. Most Real Estate Agents have access to good contracts. I recommend you find one that is member of the Georgia Association of REALTORS®, as the GAR has some of the best copyrighted contracts available. A non-member can also pay a fee to have access to the forms.
And really! Why do most people want to sell their homes themselves? They don’t want to pay a commission to an agent. Think of your agent as a temp hire – you are the boss. You are hiring them to represent you and assist in completing a complex task. If they do a good job, you are likely to make more money from the sale of your home than you would if you didn’t use them, so where is the risk?
As you are probably aware, I come from a Military background. I was born an Army Brat (who came up with that anyway?) and when I graduated from college, I entered active duty as a Military Police Officer; a 2nd Lieutenant. I served on active duty for 14 years and then, because of several medical problems brought on, according to my doctor, from “being all you can be,” I decided to take an early out and entered the reserves instead. My knees still ache from all the years of running…..
When I learned about the Homes For Heroes program and what I could do as a real estate affiliate to help others who have dedicated their time and their lives to helping others, I knew I had to be a part of it. So if you work or worked in any of the following; military, police, fire, medical field or as a teacher; and you are selling or buying a home; let me know. My way of paying forward is to contribute part of my real estate commission to my clients’ closing costs. Yep. You heard it. I will help you pay your closing costs. I can also put you in contact with lenders and closing attorney’s who will provide a discount of their fees as their way of thanking you for your service.
If you have a moment, take a look at this short film. And remember when you decided to register, let them know that I am your Realtor of choice. Or type in http://www.homesforheroes.com/affiliate/susan-carroll to register.