I am a Home Inspector now, but when I took a real estate course in Greensboro NC, the instructor made his feelings about FSBO's quite clear. His disdain was palpable. Though many sellers are tempted to try to market their homes themselves in order to avoid paying a Realtor's commission, eventually they would be driven by sheer desperation to acknowledge the futility of their mission, and call a Realtor.

The Lonely FSBO

Since then I have watched many a FSBO linger on the market way too long, especially at this time, only to eventually capitulate and call in the calvary.

And there are many good reasons to do so.  Not the least of which is that if you get a good Realtor they are going to make sure your house gets seen, priced correctly and point out a number of things that are obvious to everyone except the homeowner, like gee, you should clean up the three feet of garbage in your living room, etc.

No doubt, a good Realtor can get a house seen and sold, if the buyer listens to their wisdom.

But whether a homeowner chooses to avail themselves of the services of a Realtor or not, one thing remains true about selling a house....

AVERAGE HOUSES DON'T SELL QUICKLY ! (especially in a buyer's market !)

A house that sells faster than its competition must STAND OUT (in a positive way) from its competition.

And a homeowner can make his/her home STAND OUT any number of ways, with or without a Realtor.

CURB APPEAL is an obvious one.  First impressions are often the only impression one gets to make. So if your house looks bad from the street, it will be hard to overcome that initial bad impression.

CHEAP PRICE:  Can attract, but can also make people suspicious. What are they not disclosing ?

UPDATED KITCHEN AND BATH:  Likely one of the best places to upgrade.  Get a second opinion though regarding design. Pink fixtures in the bathroom won't appeal to everyone.

All these things, and more, are basic, common sense things that should be considered when making your home stand out.

FACTORS OUT OF YOUR CONTROL : BUYER'S APPREHENSION..... (actually, you can do something about this one, read on....)

One thing that is hardly EVER considered is the apprehension that all buyers carry with them when they consider purchasing a house they may be paying on for the next 30 years, and all the unknown costs an older house (well really, any house)  can bring.

ENTER THE BUYER'S INSPECTOR (gosh, I hope he doesn't find anything. I'd hate to lose this contract !)

Most buyers are going to hire a professional home inspector to verify the soundness of any home before they commit. 

And what will the buyer's inspector find ?  It could be major, but it also could be a long list of minor things, like a lock that needs to be replaced, some nails backing out of the shingles, a loose brick on the porch, lights that don't work, etc........you know, the things you no longer even notice.

Even if all the inspector finds are minor things, things that could have easily been fixed ahead of time if the seller had been aware of them, the cumulative effect of numerous small items may be disproportionate to their actual seriousness. In other words, it often looks worse than it really is. But the perception that this may be a money pit is planted in the mind of the buyer.

SWEATING BEADS....

Here is where the seller begins to sweat.  The buyer wants all these little things fixed before closing. Now the seller must find someone, anyone, on short notice to come and take care of all this piddly stuff, or take a week  off work and do it himself, if he/she is handy. The other alternative is to adjust the price.  Either way, the cost ends up being much greater than if the homeowner had taken this check-list and done it all at his leisure BEFORE he ever had a contract in his/her hands. ( No time now to shop contractors..just pay what they are asking !)

OK, WHAT'S THE ALTERNATIVE ?

Homeowners who choose to list a property can avoid all this hassle, whether they are a FSBO or listing with a Realtor.  There is a much saner way to go about this, and save money in the long run, perhaps thousands.

This is where the LISTING ADVANTAGE* comes in.

The Listing Advantage is a PRE-LISTING INSPECTION in combination with a 'NO DENIED CLAIM'S' home warranty.

"But wait", you say, " It's the buyer's responsibility to pay for an inspection ! "

Ok, we just went over what happens in that scenario. What part of the concept of SELF-SABOTAGE don't you understand ?

ANOTHER PERSPECTIVE...

Let's look at it from the buyer's point of view, even pretend we were the buyer. The buyer thinks:

"Ok, there are two equally attractive houses in a particular neighborhood that meet my needs.  One, I will have to shell out cash to find out if it has problems.   Maybe the AC will break in the middle of Summer, perhaps it has termites or Radon, or a rotten floor under the toilet.....Who knows ?

 " Now, on the other hand, this house has a sign that clearly states that it has been Inspected AND Warranted.  And I can see the report and all the items that were found and fixed ( or I can see they have acknowledged these problems and adjusted the price accordingly.  Hmmm.  Which one do I choose ?  Which house feels like a better bet, with less potential surprises ?"

OK, YEAH....I GET IT.   I'M GETTING A PRE-LISTING INSPECTION WITH A 'NO DENIED CLAIMS' WARRANTY

Now back the the homeowner.  Wise sellers will understand the benefits of hiring their OWN inspector BEFORE putting the house on the market.

With the laundry list of items in hand from a pre-listing inspection, the homeowner may choose to fix these items (if they are minor ) or to adjust the price upfront ( if they are major) and avoid last minute surprises, repairs, re-negotiations, and or completely losing the sale.

WISDOM FROM THE FAR EAST - ( Well, California is really faaaaaar East )

The wisdom of pre-listing inspections is already common knowledge in California. And, like many trends, will get to the East Coast eventually.

YOU NEED EVERY ADVANTAGE...

FSBO's need every distinctive advantage they can get.  The Listing Advantage from Advantage Inspection can give them that something extra, and it may even help them to sell their home WITHOUT paying a Realtor's commission.

But even if you have your home listed with an agency, you still need every bit of help to make your home the one that STANDS OUT in a Buyer's market.  

Every day not sold is costing you and your Realtor $$$. 

If your Realtor doesn't understand the importance or power of a pre-listing inspection, don't let them discourage you from it. 

DOING STUFF THE SAME OLD WAY, BUT HOPING THINGS GET BETTER....( you know the story) 

Some close friends of mine here in Greensboro mentioned this to their Realtor ( one used to doing business the same old way)and she said they did'nt need to do it.  As of today, April 30th,2008, their house has sat on the market for over 4 months without one offer.  I'd say that Realtor needs to bring it on if she has any better ideas. 

In fact, they may wait the month and 1/2 till the listing period is up and then utilize the power of the Listing Advantage and keep the commission.

We have tracked this program and found that on average, homes sell 15% faster, for 2.2% more and the odds of selling AT ALL increase by 29% !

ROOKIE REALTOR GOES FROM #120 TO TOP 5 IN HIS OFFICE  ( That's right. He's using the Listing Advantge)

In fact, one Keller Williams Agent from Greenville SC ( Matthew Thrift), has LISTED AND SOLD  12 homes in the first 2.5 months of 2008 !  And he was a Rookie of only 15 months with no prior sales before he found our program. Read his testimony here.

Call Advantage Inspection Clear View  today and ask us how we can help sell your FSBO or listed home.

( You don't even have to pay for the 'No Denied Claim's' home warranty until closing !  Hooray !)

Philip LaMachio       Advantage Inspection Clear View     336-327-5523  Member: NACHI, NCLHIA

EXCLUSIVE DISCOUNTS AND COUPONS FROM OUR VENDOR PARTNERS FOR OUR CUSTOMERS:

10% Discount for Lowes Home Improvement  ( Fix up that home with this one ! )

$200 Credit for ADT Home Security Installation !

Up to 20% discount on Homeowners Insurance from Nationwide Insurance ( upon passing safety checklist at inspection)

Discounts for Allied and North American Van Lines ( More details to come.)

 

 

 

 

8 Comments on Successful FSBO's: Listing Advantage - Seller's Home Inspection/Home Warranty ) - Greensboro NC

MAY
01
2008

Philip,

You make some great points. We've been recommending to our clients for a while now that they get an inspection prior to listing (see <a href="http://greensbororealestateblog.wordpress.com/category/home-inspections/">Greensboro Real Estate Blog</a>)

I think the strongest arguments for this are: no surprises and you can make the repairs on your terms.

As for your friend, four months and no showings stings a little. I'm thinking they may want to check their CMA and see if their price is in line. If it is, then they need to confirm with their Agent that he/she is carrying out the marketing plan proposed in order to secure the listing.

Have a fun day.

Mike Davis

Mike Davis
6:00am • #1

Hmmmmmmmmmmmmm. The link did not work as planned. Sorry. Computers baffle me.

Try this: http://greensbororealestateblog.wordpress.com/category/home-inspections/

Mike

Mike Davis
6:04am • #2

Agents may have disdain for private home sellers, but it's funny that when it comes time to sell their own home, they often market it "by owner" for the same reason many private home sellers choose -- to save on commission payments to agents!

In our home seller seminars we do recommend the benefits of having and paying for a pre-market inspection performed by a licensed home inspector (licensing is required in Massachusetts). In addition, we recommend that sellers consider paying for a professional appraisal performed by a licensed residential appraiser.  We provide the exposure both locally in our regional print publication, "A Buyers Guide to 4 Sale By Owner & Builder", online on our website and blog and through effective marketing materials that we provide.

It really is no different when it comes to a successful sale...a home must be prepared carefully for the market, priced for the market and exposed to a sufficient number of buyers in their market.  An overpriced listed home that has structural issues will have the same tough time as a privately offered home with the same issues.

By the way, my daughter just got back from visiting Elon University in your neighboring town and LOVED the area.  Too bad Skybus just went bankrupt as they offered $10 plane fairs to Greensboro! 

Liz Provo, Massachusetts 4 Sale By Owner
8:11am • #3

Mike,

My friends have had showings, but no offers. It is a 50 yr. old home. Buyers know that older homes have issues...... why not disclose up front ?  The pre-listing inspection is also a great risk management tool for Realtors and homeowners.

The Realtor involved does not think that a listing inspection and home warranty will make a difference.

I guess she will never know !

Philip LaMachio

Advantage Inspection Clear View   336-327-5523

Home of the LISTING ADVANTAGE program, helping Realtors and Homeowners sell their properties faster and for more $$$ with a listing inspection and 'No Denied Claim's' home warranty.

For insider information on the way OTHER home warranties do business and how to avoid being ripped-off go to my article Home Warranty Secrets - What the Home Warranty Industry Doesn't Want You to Know !

9:24am • #4
JUN
30
2008

Agents are one of the ways to sell a house. But it can be very expensive to sell your house with AN agent. It's better to sell your house with FSBO site like Owners or ForSaleByOwner . I've used www.fizber.com and it was quite OK for me. I think it will be a good idea to look more here: http://forsalebyowner.fizber.com/.

Nensy
8:55am • #5
JUL
27

A great tool for agents to gain a competitive edge may be this http://www.yourlistingadvantage.com/index.php 

 

It's a great tool very easy to use and the websites really helps the home owners or agents to advertise their house in the best way. Also it is useful to the buyers to get all the data they need about the house.

Alex
10:46am • #6
AUG
01

I love my home warranty also I bought one from home warranty and they really treated me right! Fixed my ac and dishwasher all in same trip

Steven

Steven
11:57am • #7

Steven,

My dear fellow.....so glad you were treated right !  You were part of the 75-85% that do get their claims honored. 

Apparantly you lucked out.  I say lucked out because at any point, Nationwide Home Warranty's service provider could have claimed that there was a pre-existing condition, and you could not have done a thing about it.

In fact, this is a cut and paste from their terms and conditions:

6.1. Generally.

6.1.1. Proper Working Order. All systems and appliances must be in proper working order on the Effective Date of the warranty coverage, as set forth in the schedule page accompanying this Agreement. Any pre-existing conditions or defects causing the malfunction of system or appliance during the term will not be covered by this Agreement. .

My question to you Steve, is: 

- How do you verify 'Proper Working Order' without a home inspection to verify that fact ?  All they have to do is say, ' This is caused by a pre-exisiting condition' and you have no recourse to argue it !

Now, in the very next sentence they get very clever and try to give the appearance that they are aboveboard:

"If a defective or malfunctioning system or appliance is discovered by an inspection company prior to the transfer of ownership of the property or by a utility company at the time of the transfer of ownership, said condition shall be deemed a pre-existing condition and not covered under this Agreement "

There is a 30 day lag between the inspection/transfer of ownership and the coverage period. ( the Effective Date of the warranty coverage, see below)

4. Term. The term of Your warranty coverage, as set forth in this Agreement, shall begin thirty (30) days following Nationwide's acceptance and receipt of Your application, )

That 30 day window is all they need to claim a pre-existing condition. Its a convenient loophole.

Advantage Home Warranty has no 30 day lag. The loophole is closed.

 

Philip
10:48pm • #8

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Philip Lamachio

Greensboro, NC

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Advantage Inspection Clear View

Address: 7B Corporate Center Ct. , Greensboro, NC, 27408

Office Phone: (336) 327-5523

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Dedicated to getting the word out that we are transforming an industry and taking no prisoners. But really folks, we are setting the pace and creating a win-win-win scenario for Realtors, Home Buyers, Home Sellers and Advantage Inspection Associates


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