HomeReport
Real Estate & Finance News That Affects Your Home                                                     November  2008 - Page 1

NO COUNTRY FOR 'FIZZBOES' Why Now Is Not The Time To Sell A Home Alone Some home sellers in the boom years were tempted to market their homes "For Sale By Owner" (FSBO) to avoid paying a real estate broker's commission--especially in seller's markets where homes attracted multiple buyers. While the impulse to save money is certainly understandable, selling without professional representation in today's market is a risky strategy that could actually result in lower "walk-away cash" (net proceeds) from the sale and a longer time on the market. Here's why: Increased Competition The nationwide inventory of existing homes for sale still hovers around a 10-month supply given the current pace of sales--in some local micro-markets the overstock is even greater. Bottom line: lots of competition among home sellers. To stand out from the crowd and secure a sale in today's market, you'll need every advantage we can provide. We will: Design and execute a detailed, customized marketing strategy that puts a spotlight on your home. Help you determine the "right price" that's not too high, not too low. Recommend cost-effective improvements and repairs to attract buyer interest and offers. (Today's buyers can demand move-in condition.) Put your home on the Multiple Listing Service (MLS) to reach thousands of buyers and agents actively shopping right now. Provide you with information that's up-to-date and accurate about local market conditions and trends. Promote your home sale through our nationwide network of industry professionals and local client contacts. Bargain Hunters Typically, buyers interested in FSBO homes are looking for bargain prices--often they expect to cash in on the same "savings" the home sellers hope to achieve by not paying brokerage fees. Experienced investors may also target FSBOs who aren't as familiar with the current market and sales process. The result: low-ball offers, sometimes even below the market value of the home. As experienced, objective professionals, we can save you time and money by: Recommending a market-oriented listing price that will invite attractive offers within your desired time frame. Pre-qualifying home shoppers to weed out those who cannot afford to purchase your home and those who might have less-than-honest reasons for wanting to enter your home. Demanding Buyers With housing inventories up, buyers are in the driver's seat in many markets around the nation. And they're exercising their clout, asking for contingencies, conveyances, seller subsidies, multiple inspections, even incentives. We'll manage the relationship between you and your buyers by: Arranging home showings in a timely manner. Explaining the intricacies of various contract provisions to you. Employing effective negotiating techniques to ensure you get the best sales price the market will bear and contract terms that meet your needs and those of the buyers. Managing fulfillment of contract contingencies. Supervising inspections. Communicating with all parties involved to keep the transaction on track. Tougher Loan Standards Today's buyers are facing bigger hurdles qualifying for home loans as mortgage lenders have tightened their standards by requiring higher credit scores, larger down payments and proven income. We can help you and interested buyers by: Working with you to design sales-contract terms that ease the cash burden on buyers. Providing information to prospective buyers about loan program choices and terms that can help them buy your home. Connecting buyers with top-notch local lenders. In any market, we help our clients navigate all the details, decisions and paperwork involved in the complex home-sale process. Let us know if you're thinking about selling your home—or know someone who is. We'll be happy to discuss your goals and priorities, providing all the information you need to make smart choices on the road to your home sale. There's no obligation—just give us a call!