Alan's Blog

Southaven MS Market: Sales off, prices holding!

Alan McClurg (Bob Leigh & Associates, Realtors) — Thu, 22 May 2008 08:50:58 -0500

Southaven, MS Market Report

The Southaven real estate market is not experiencing as much of a decline as many areas of the country are at present. However, the numbers are not as good as we all would like to see them. Through April 30, 2008 Southaven recorded 221 residential home sales compared to 377 for the same time frame in 2007. This is slightly more than a 41% decrease in units sold in just one year. The average list price of a home in April 2008, was $161,998 compared to $163,557 in April 2007. That means that, in general, Southaven homeowners are listing their homes about 1% lower in 2008 than in 2007. Furthermore, the average sales price in April 2008 was $158,646 compared to $160,995 in April 2007. This is only a 1.5% decrease in sales price from 2007 to 2008.

Although these numbers are not what any of us would like to see, the fact remains that Southaven is experiencing less of a hit to its market than are many communities across the nation. And remember this, if you are a homeowner looking to move to a larger and more expensive home, there will never be a better time to buy. Why? Let's look at some numbers. If you live in a home that would normally bring $150,000 on the market and you apply the 1.5% decrease in sales price mentioned above, then you would lose $2,250 ($150,000 x 1.5%) by selling in the current market. However, if you are looking to buy a home that would normally sell for $200,000 then buying now would save you $3,000 ($200,000 x 1.5%) by buying now. So, when the market turns around, and the market ALWAYS turns around, then you would actually realize a $750 ($3,000 - $2,250) gain on your home investments.

And, of course, if you are a first-time homebuyer, then this is the perfect time to purchase a home in Southaven. The prices are low, the inventory plenteous, and the mortgage rates will most likely never be better.

Alan McClurg

Realtor in Southaven MS

Southaven, MS home prices are holding fairly steady

Alan McClurg (Bob Leigh & Associates, Realtors) — Thu, 22 May 2008 00:39:06 -0500

Southaven, MS

Market Report

Olive Branch market holding its own!

Alan McClurg (Bob Leigh & Associates, Realtors) — Thu, 22 May 2008 00:23:39 -0500

The Olive Branch real estate market is not experiencing as much of a decline as many areas of the country are at present. However, the numbers are not as good as we all would like to see them. Through April 30, 2008 Olive Branch recorded 913 residential home sales compared to 1,327 for the same time frame in 2007. This is slightly more than a 31% decrease in units sold in just one year. The average list price of a home in April 2008, was $164,716 compared to $169,589 in April 2007. That means that, in general, Olive Branch homeowners are listing their homes about 2.9% lower in 2008 than in 2007. Furthermore, the average sales price in April 2008 was $160,054 compared to $166,746 in April 2007. This is a 4% decrease in sales price from 2007 to 2008.

Although these numbers are not what any of us would like to see, the fact remains that Olive Branch is experiencing less of a hit to its market than are many communities across the nation. And remember this, if you are a homeowner looking to move to a larger and more expensive home, there will never be a better time to buy. Why? Let's look at some numbers. If you live in a home that would normally bring $150,000 on the market and you apply the 4% decrease in sales price mentioned above, then you would lose $6,000 ($150,000 x 4%) by selling in the current market. However, if you are looking to buy a home that would normally sell for $200,000 then buying now would save you $8,000 ($200,000 x 4%) by buying now. So, when the market turns around, and the market ALWAYS turns around, then you would actually realize a $2,000 ($8,000 - $6,000) gain on your home investments.

And, of course, if you are a first-time homebuyer, then this is the perfect time to purchase a home in Olive Branch. The prices are low, the inventory plenteous, and the mortgage rates will most likely never be better.

Alan McClurg

Realtor in Olive Branch

www.alanmsellshomes.com

Olive Branch Market is actually better than some

Alan McClurg (Bob Leigh & Associates, Realtors) — Thu, 22 May 2008 00:13:42 -0500

Alan McClurg

Olive Branch Real Estate Agent

www.alanmsellshomes.com

Helping the Unhelpable!

Alan McClurg (Bob Leigh & Associates, Realtors) — Mon, 04 Jun 2007 22:28:32 -0500

Today, as happens many days, I had another experience trying to help the unhelp-able client. I feel sorry for the circumstances that some folks find themselves in with regard to real estate. This particular couple bought a beautiful home in our area less than a year ago. The Mr. now finds himself needing to transfer out of state for a job and the couple finds themselves in an all-too-familiar scene. They have not built any equity in the house nor has the area they moved into had time to develop properly. Now, by themselves, these are already difficult barriers to overcome. But, add to the problem a six percent commission and their situation is even bleaker.

That is, however, not the rest of the story. The couple also got a loan from a mortgage broker who found them a loan with a substantial pre-payment penalty. The couple will suffer a penalty for the next five years should they try to refinance or pay off the balance of their loan.

The help I could have offered this couple was about nine months ago. I could have led them to a reputable mortgage company who would have found them a loan that would have fit their lifestyle as well as their pocketbook. As agents, I think we sometimes do not think about our future. We are so greedy for the next sale and closing, we will let our clients accept any and all loan programs available to them as long as we get a commission check.

Let's try to help our clients by giving them the home of their dreams. One that does not tie them in knots if they need to sell the home before their equity is properly built. One that doesn't cost them the proper maintenance and care for the home. One that helps them "live" their dream...not live it down. Otherwise, when they call you for help again in the future, you may find yourself trying to help the unhelp-able client.

Am I Happy About the Current Market Slow-Down?

Alan McClurg (Bob Leigh & Associates, Realtors) — Mon, 28 May 2007 11:01:38 -0500

You bet I am. Why? Because it will separate the salespeople from the slackers. I am full-time in this business. I work very hard to get what I get. I knock on doors. I make cold calls. I visit with FSBO's (the hardest group of folks there are in this business). In short, I work. I don't GO to work. I work.

I get stressed out when I hear agents who come to the office to get online and see what happened in sports the previous day complain about how slow the market is. How in the world would they know? Their business is slow because they have not developed their business.

I get stressed when I see a group of agents at the office (mostly the same group everyday), stand around the water cooler and talk about how slow the market is. Their business is slow because they are standing and not moving. They are complaining and not resolving. They are gossiping and not gaining.

I do not work from the office anymore. I tried for awhile. I would go and find the same group of agents there just about every day. We would chat, we would gossip, we would worry, and we would complain. What we would NOT do is work. This business is a plant and harvest business. If you don't plant anything, you won't be harvesting anything either.

I am now planting every day. And, I am harvesting a little too. As a matter of fact, I am harvesting a lot compared to others in this business. Let the slow market continue...the slackers will eventually give it up...and I will be able to plant and harvest some of the business they never got. Have a good day!

This is the day to express our thankfulness

Alan McClurg (Bob Leigh & Associates, Realtors) — Mon, 28 May 2007 08:43:04 -0500

to the brave and courageous soldiers who put their lives on the line every day so that we can do what we do every day.

As a real estate agent I owe those folks plenty. I have the freedom to work the days I wish to work; to advertise the way and how much I want; the freedom to take the listings I want; the freedom to knock on the doors I want; the freedom to make the phone calls I want; the freedom to drive the car I want (gas guzzler or not). And I have these freedoms because of the men and women who have served our country so valiantly and have gone to the point to give their lives for mine...for my freedom. How can I not remember these individuals on this special holiday? I will take time today to say a prayer for those families who have lost loved ones and friends so that I may sit at my computer today and write this blog. Thank you!

Wasting Time on Office Duty?

Alan McClurg (Bob Leigh & Associates, Realtors) — Sun, 27 May 2007 08:33:43 -0500

If you find yourself playing solitaire on office duty, or just talking to every other agent in the office to avoid boredom...here are some suggestions as to what you could be doing to build yourself professionally while wasting time during office duty. 1. Catch up on all that filing that you need to do and haven't. 2. Call your sphere...for nothing more than to wish them a good day. 3. Check out the expireds for listings you may want. 4. Send a postcard to 4 former clients telling them that you are glad to have such good folks as references. 5. Identify the newest listing your office has gotten (even if its not yours), then call the 12 closest neighbors to that listing asking if they know of family or friends that they may want to live close to them and are looking for a home in that area. 6. Plan your business for the next week. 7. Call three loan officers and introduce yourself to them. Ask one of them to lunch one day the next week. 8. Call three attorneys who deal in foreclosures in your area. Ask one of them to lunch one day the next week. 9. Through your MLS, identify the last 5 houses to close in your area. Send the homeowner of those homes a postcard telling them how delighted you are to have a new resident in the community. 10. Stop feeling sorry for yourself that everyone else has more business than you do, and go find some!!

Do you ever wonder...

Alan McClurg (Bob Leigh & Associates, Realtors) — Sun, 20 May 2007 18:58:05 -0500

1. Why you park in a driveway and drive on a parkway? 2. Why every light is green when you have no schedule to keep, and every light is red when you absolutely have to be someplace on time? 3. Why the real estate market always takes a downturn soon after you become an agent? 4. Why you always get sick during the busiest week of your year? 5. Why the guy who coughed in your face and gave you the flu, never got it himself? 6. Why when you put on your turn signal in order to change lanes, it is a signal for the driver you want to get in front of to become a selfish-minded idiot? 7. Why your pets always love to see you come in when you have only been out to get the mail? I am sure there will be more later...but for now...I am crazy enough for one day?

Stirring the Pot

Alan McClurg (Bob Leigh & Associates, Realtors) — Sat, 19 May 2007 21:49:16 -0500

I was out the other day riding around in my Ford Expedition at $2.99 per gallon and thinking about something my former broker said to me one day. I had been out all day that day shaking hands, knocking on doors, leaving door hangers on doors, and generally trying to drum up a little business. It worked to. I met a nice couple that day who were ready to sell their home. They had already told another agent they would list with him, but they decided to let me find them a new home. Upon hearing that story, my broker broke a big smile across his friendly face and said to me. "Alan, you've been out stirring the pot". He then went on to tell me that when you do that...something is bound to come up to the top. When it does, he said, you have to grab it. During this period of slow-down in our market area, I have re-committed myself to start "stirring the pot" more regularly. I will not be too timid to get rejected at a front door, or too timid to be rejected over the phone. I will commit myself to meet more folks each day that I can network with as well as meet more folks in the general public who just might be in the mood to make a move. Stirring the pot...that is a good description of lead generation. Maybe my spoon will bump into a few of you as I stir...I hope so. See ya later!

My pets are human

Alan McClurg (Bob Leigh & Associates, Realtors) — Sat, 19 May 2007 21:30:41 -0500

I give up. My animals are actually human. I know this because they have the same emotions, the same facial expressions, the same body language, and the for the most part, the same penchant for bad habits as I do. They may not be able to speak words like I do, but they are human nonetheless. When I leave them all day, as I do many days a week...they sulk. They give me the cold shoulder for leaving them without a light on in the house and without the ability to go to the bathroom all day (just the dog on this one).

My dog has a smile...that's right....I said a smile. She also has a "I can't hold it any longer look" and a look of compassion when my knees are too sore to climb the stairs at the end of the day. My cat has looks of confusion, curiosity, and bewilderment. Just like me and mostly in the same situations.

My pets are human. I wonder if they think the own ME. I don't have to think...I KNOW it!

Want Loyalty from your clients?...Then Tell Them!

Alan McClurg (Bob Leigh & Associates, Realtors) — Sat, 12 May 2007 16:27:00 -0500

I have written my last contract with no earnest money. A young couple called me and asked me to show them one of my listings this past week. They were not the typical first-time homebuyers. They were not nervous, excited, happy or a little bit scared. They were...well...bored! I could not get any hit from them as to whether or not they were positive or negative with regard to the house. They said they liked it...in a bored kind of manner, told me they would get back to me, and bid me a good evening.

The next day, the young lady called me and said they would like to make an offer on the property to my complete delight. At the scheduled time, only the young man showed up. He told me that the house would be in his name only as would the note on the property. I had asked them both previously if they had been to a loan officer and been approved for a loan to purchase the property. The young man assured me that a very good friend of his (a loan officer) had approved him for more than the owners were asking for the home.

Anyway, I wrote up the contract, all but the earnest money and the purchase price which is normally how I conduct my business. I leave the hard part for last. The purchase price was a low offer...that should have been my 32nd clue. I told him the offer was low but that the owner would probably counter back with something different. Then I did a very dumb thing. I accepted the fact that he was not going to put up any earnest money. As a matter of fact, he didn't even bring a checkbook with him. He asked me if he had to put up earnest money in order for the contract to be a legally binding document. I told him no, that it just showed the owner (and me) that he was serious about the home. He assured me he was, told me to call him as soon as I knew something, and was out the door.

Ok, I admit it...my brain took a short vacation that evening. What a dummy! Instead of summoning up my courage (and good sense) and telling him I would not present the offer without some good faith on his part, I just wilted like a tender flower in the hot sun. I should have waited till he told me to go jump off a bridge...or went back to his vehicle to get the checkbook. Instead, here I sit 3 days later, after the owner has made his counteroffer, after I have taken up more of my clients' time to sign off on the counteroffer, after my timidity got the better of me, with no offer and no buyer. I made one more call today to see if I could show them other property. Call me a hopeless optimist...or just a plain ole dummy!

Think Staging Isn't Important...Just Ask The Owner!

Alan McClurg (Bob Leigh & Associates, Realtors) — Thu, 10 May 2007 23:11:31 -0500

I have heard agents in our fine County say, "staging isn't so important, it's all about price and location. I beg to differ. Keep reading, this story may sound familiar.

I took a listing the other day from a couple of homeowners who had taken very good care of their home in the eight years they have had it. The three bedroom, two bath home is nothing special...at least to the market here. It doesn't have granite countertops, a 3-car garage, a gameroom, or any of the other so highly sought after amenities so many buyers are looking for in our area. But, staged correctly, the home presents and shows very well. Just ask the owners.

I left instructions on their dining room table of how best to present their home to potential buyers. Open the blinds, turn on the lights, light soft-scented candles, you know, the basic stuff. After one of the recent showings of the property, I met the owners at the property to deliver them a contract for the purchase of their property. The owners had come back to their home and seen it in a different light. Their house was attractive to them again. It didn't seem so cramped with the blinds open and the sun shining in. They suddenly found themselves wondering why they listed at all.

Staging is important, if your clients aren't around to take care of the small things that help the stage the home for showings, go by their house and do it for them. There are lots of reasons why my average days on market is less than 13 days, knowing how to stage a home for a quick sale is just one of them. If you need help staging your home, call me and let's chat for a minute.

For Sale - How Much Does Price Matter?

Alan McClurg (Bob Leigh & Associates, Realtors) — Thu, 10 May 2007 01:05:11 -0500

Like many agents, I go on several listing appointments every week. Listing appointments are, without a doubt, the hardest part of my job. As an agent, I am concerned about many things when I go on these appointments. Will the potential client like me, will I be able to build a solid rapport with them, will they be able to work with me, will I be able to work with them, will they be reasonable about repairs or cosmetic changes needed in order to sell the home? All these, and many more, are all things I am anxious about when I walk up to the house and ring the doorbell.

Most of the time, the things I am most anxious about end up not being important factors as to whether or not I end up with the listing. Now at this point, I should let the reader know that I am not a "power lister". That is, I do not keep 30 to 40 homes in my listing inventory. There are several reasons for this, but most of them have nothing to do with this article so I will not bore you with those details. However, one of those reasons has very much to do with the subject matter of this blog...pricing the listing! Many of the "power listers" I know have gotten that way by "buying" many of the listings in their inventory. "Buying" a listing has nothing to do with the listing agent investing in real estate by the purchase of it, instead it has to do with taking a listing at a price way above the market value of where the listing will most likely sell. Many of these agents, take these listings knowing the price is too high. They take the listings with the knowledge that they are going to come back to the client, maybe more than once, during the life of the listing, and ask the client to adjust the price downward on the home so as to attract more potential buyers. This is a ridiculous practice in our profession...one that could be avoided, and should be.

Preparation for the listing appointment may encompass research of several things regarding the subject property. A quality agent should research tax records, subdivision plats and restrictive covenants, GIS maps, public records of title and many, many more things associated with the subject property before showing up at the door. But perhaps, more than any other research done, the research on the price the home will bring in a competitive market should be the most important. That research, coupled with the owner's reason for selling the property, are the most important factors that should determine the home's listing price. For example, if the home is located in a part of town not so heavily sought for by buyers...and that fact is coupled with the fact that the owners are being transferred and will not be able to buy another property until receiving the equity from their current home, that would suggest the price be set at or near the lower end of the prices currently being asked for by homeowners in that area. If however, the owners are in no hurry to sell, have no reason to sell other than they want to, the price of the home could be set at or near the higher end of the price scale.

At my listing appointments, I can almost always guarantee you that the most anxious portion of the conversation between me and the potential client revolves around the price that will ultimately be asked for by the owner of the property. Let me just say this as simply as possible. PRICE OVERCOMES EVERYTHING! If a home needs some TLC and the owner doesn't want to do it before the sale, that is no problem as long as you consider those factors when putting a sales price on the home. On the other hand, if the home is quite obviously the nicest home in the area, then show the owner's pride and adjust the sales price upward. Those are simple rules to live by, but many of the agents in our DeSoto County Mississippi market have obviously not learned these simple rules yet. Too many times, way too many, prices are set too high on homes placed on the market. Now let me say something else very simply...THIS IS THE AGENTS' FAULT AND NOT THE OWNERS'.

It is a proven fact that the most showings a home will get will happen within the first four to five weeks the home is on the market. Price too high, and the home will most likely not get the showings it should get. Then, when the price is reduced at a later date, you will start hearing the proverbial question from buyers..."why did they have to reduce the price on this home? The buyer is thinking there must be something "wrong" with the property when that is, more than likely, the furthest thing from the truth. The truth is, the listing agent didn't have the courage or confidence enough to tell the homeowner what the home would sell for, or worse, didn't know themselves.

I get almost every listing I want to get. Why?...because most homeowners who really want to sell, are looking for some reality in their realtor. Realistic price means one thing...a SOLD HOME! If you are ready to sell your home, find an agent who deals in reality, not just realty. Price your home to sell...after all...that is what the sign says you are trying to do.

Why Buyer's Need an Agent

Alan McClurg (Bob Leigh & Associates, Realtors) — Thu, 01 Mar 2007 13:51:02 -0600

As I was making my way home two days ago, I ran across a young couple who had stopped on the side of the street so that the young man could pull flyers from two homes for sale right across the street from each other. Seeing this as an opportunity to help them as well as my own business, I stopped my vehicle, jumped out and introduced myself to the young man. I offered him my hand as well as a business card and told him that I could make his search for a home a more streamlined and comfortable process. You would have thought that the devil himself had presented himself before this young man's eyes. His look was one of surprise and skepticism. The look of surprise was warranted as the encounter with him was unexpected on both his part and mine. The look of skepticism was one to which I am quickly growing accustomed. I must admit to you, though, that I do not fully understand the attitude of skepticism that the public shows to professional real estate agents.

I understand that I know more about my abilities than he does. I understand that I know my own level of honesty and integrity more than he does. And, I understand that working with a stranger in today's society arouses a certain level of suspicion in all of us. What I do not understand, and what concerns me even more, is that his look of skepticism was not necessarily focused at me, but at the entire profession I have chosen.

In today's society, independence has taken on a new meaning. A vast majority of the American public is becoming less and less dependent on professionals. My wife uses a website to diagnose her illnesses. My Dad used a website to do his stock trading. A buddy of mine bought a computer program for fifteen dollars and wrote his own will. Another friend of mine used another computer program to design plans for his new home. With the vast amount of information available to us through a mouse click, we are becoming a smarter and less dependent society. This is affecting the real estate business to a great extent.

There are internet sites available by the hundreds that offer complete inventories of homes available for purchase by the consumer. Some of these sites are better than others, but the bottom line is that the consumer can look for a home without the aid of an agent. There are internet sites available to assist homeowners value their own home without the aid of an agent. Granted, some of the home values given by those internet sites are not accurate in the least, but they still give the public the perception that the use of an agent to value your home is not necessary.

I, however, remain convinced that the purchase of real property (usually a very large investment for most folks) should include the use of an agent. Here are three reasons.

First, the use of an agent normally ensures the buyer that the value of the home being considered is appropriate for its location. Going back to the story above, the young man I met had never lived in our state. He was not from here and by his own admission, did not know anything about the neighborhood in which he was pulling flyers. As a matter fact, it just so happened that the flyers he pulled were both from houses being sold by their owner without the use of an agent (see my blog on selling FSBO for more information). Both of these homes are vastly over-priced for the area they are in. How will this young man know that unless he asks an agent for a market analysis? The answer is, of course, he won't. How will he know there is a police station being built just across the street from this subdivision that will include a jail facility? He won't unless either of the homeowners let it slip. In short, unless this young man and his wife end up consulting a professional real estate agent about the home they end up purchasing, they will most likely overpay for their purchase.

Second, the use of an agent normally means that the buyer is put in touch with only the highest qualified vendors throughout the purchase process. During the purchase of home an agent will supply a buyer with referrals to loan officers, home inspectors, structural engineers, appraisers, and various contractors who are in the business of repairing or remodeling homes. Do you think for one minute the buyer's agent will refer the buyer to vendors who do sub-quality work? It will most definitely not happen if the agent is concerned about receiving any future business from his current client.

Finally, the use of a buyer agent ensures that the contract will be written and constructed to offer both buyer and seller a win/win situation. This should be the ONLY focus of a successful negotiation...a win/win outcome for both buyer and seller. Furthermore, the use of an agent ensures the buyer, in most cases, that the contracts are being written on State-approved forms and comply with all regulatory agencies involved in the purchase process. How important do you think this might be should something occur that requires the adjudication of the contract in a court of law? The buyer's peace of mind that the deal was done above and beyond reproach cannot be overemphasized.

I hope the young man I met the other day will call me. I hope he comes to the realization that I will provide to he and his family a value-added service. I hope he resists the urge to remain totally independent during the home buying process. I hope he sees the value of retaining a buyer agent, even if it's not me.

Why not be a FSBO?

Alan McClurg (Bob Leigh & Associates, Realtors) — Thu, 01 Mar 2007 01:44:03 -0600

The other day two other agents from my office and I were out to lunch at a Realtor luncheon. As we were driving back to the office, I looked down a cross street and saw a familiar sign. This type of sign brings a smile to my face, a hop to my step, and causes my vehicle to quickly change direction. I cannot pass up a closer inspection of these signs. These signs appear in my dreams at night, and are a driving force for my business in the daytime hours.

Usually these signs have only four words on them. Those four words are usually followed by seven numbers which are usually only readable if you have completely stopped your vehicle and are able to get within ten to twelve feet of the sign. That's right, you guessed it, the sign says "For Sale By Owner".

In the age of do-it-yourselfers, it should not surprise anyone that owners of an investment normally valued at more than $100,000, would feel they are educated enough about the process to sell their own homes. I meet several of these folks every week. I like them, no wait, I love them. I honestly believe if I woke up one Monday morning to the realization there were no FSBO homes for sale in the areas I have chosen to do business in, I would just avoid drinking the second cup of coffee I usually have and go right back to sleep.

For the most part, owners who want to sell their own homes without the assistance of a professional real estate agent, cause agents to roll their eyes, say a curse word under their breath, and go into a rant about what these people don't know about selling a home. Not me. I just smile and adjust my daily schedule for the time I know I will spend either knocking on an additional door, making an additional phone call, or both. It's not that I am so different from many of the other agents I work with. It's just that I have been raised to try to make lemonade when someone hands you a lemon. It's not that I disagree with other agents about how much knowledge of the home selling process folks have, who are not professional real estate agents. In fact, I agree wholeheartedly. It's just that when I see a "For Sale By Owner" sign I know that I am going to have an interesting conversation with some well-meaning folks who I know I am going to be able to help, and who in return, will help me grow in my chosen profession.

So why not be a FSBO? That is, after all, the topic of this blog. Hera are three reasons. First, not only do we live in the age of do-it-yourselfers, we also live in a time where lawsuits are as popular as tattoos on professional basketball players. FSBO homeowners believe that purchase and sale contracts for real property are easy to create, easy to read, and easy to interpret. The truth is, that real estate contracts are nothing of the sort. Misread one sentence or interpret incorrectly one paragraph of a contract to purchase real property and you might find yourself on the wrong end of lawsuit. If there is one thing I have learned from my 27 years in business, it's that folks get mean when you mess with their money. A lawsuit, even a frivolous one, can cost lots of your hard-earned money to fight. Does using a real estate agent to write and negotiate your purchase and sales contract completely shield you from liability with regard to the contract itself? No, but it shields you much, much more than not using an agent. Should either party to the contract have issues that need adjudicating, the agent or agent's broker will normally be held liable, not the agent's client.

Second, in an age where individuals take extraordinary measures to protect their families and possessions from harm or loss, letting a complete stranger into your home to see all your possessions and meet certain members of your family just does not make any sense. Follow me here. You are a FSBO homeowner who receives a call about the sign in your front yard advertising your home for sale. The caller asks if you have any pets, and if so, are they kept inside. You respond that there are no pets inside except for a few small goldfish. You then "go the extra mile" for the caller and explain that you do have a dog but that he is kept fenced in a certain area of the backyard away from the back door. The caller thanks you kindly and then asks if you keep the dog for security purposes. The caller wants to know if you live in a safe neighborhood and do you have a security system installed. You respond favorably to this question and explain to the caller that you have never had any issues of any kind arise in your neighborhood that would warrant installing a security system. Great, the caller now knows you have no dog guarding the inside of the house, and worse, no security system. The caller makes an appointment to come see the home which he never intends to keep. Instead, the appointment he is wanting to keep is one for when your family will NOT be home. The caller has used you to case your own house on his behalf. Using a professional agent to schedule all your showings and answer all inquiries about your home would have prevented this. The agent would have asked the caller to come to his office and meet him. If the agent was worth his salt, he would have inquired as to how the caller planned to pay for the home. He would have suggested that the caller call a few select loan officers to obtain loan approval. He would have ended the conversation by telling the caller he would be glad to show him your home once assured the caller had the wherewithal to purchase it. The would-be thief would in no way go through a process where he had to give someone his social security number, place of employment, and current address. That responsible agent just saved you a lot of heartache, and possibly the life of you or one of your family members.

Finally, the FSBO homeowner says he is saving the buyer of his home money by not using an agent. This always brings a smile to my face. As I said before, working FSBO's is an enjoyable and large part of my business. And because I work with so many, I can tell you that FSBO homeowners almost always over-price their home. Just the other day I ran into a homeowner who had priced his home almost $30,000 above the market value. How is that homeowner helping a potential buyer save money? Only a buyer who is not using an agent would consider purchasing a home priced that far above the market value. The fact is that most FSBO homeowners care very little about how much money they save the buyer of their home. Had that particular homeowner been that concerned about it, he would have lowered the price of the home by $30,000, and then by another 7 percent to adjust for no commissions being paid to an agent or agents. It is a fact that if a homeowner gets a professional price opinion from an agent, prices the home right, and listens to the advice and counsel of the agent with regard to staging and showing the home, the home will sell faster and with less complications than if sold by owner. Furthermore, the buyer who employs a buyer's agent to assist him with the purchase of that home will be furnished with a comparative market analysis that will prove to the buyer, without a doubt, the market value of the property being purchased. That saves money for a potential buyer!

I like FSBO homeowners. I just don't like the situations in which they have put themselves or their potential buyers. If you are thinking of selling your own home, give me a call first and let's talk about some other issues I have not addressed here.