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Honey, let's not use a Realtor!

Reblogger
Real Estate Agent with Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales 3090099

In case you missed this post by Andrea Swiedler , I wanted to re-blog it as these are some great points to be considered by anyone considering going it alone in the sale of their home.  

Original content by Andrea Swiedler Licensed in Connecticut

The idea behind not using a real estate agent in the purchase and sale of a home is a simple one, to save yourself some money. I get that.  Buyers think they will save money on the price of the home, sellers will save at least half the commission amount. (Many do offer a commission to a buyer's agent.)

FSBO AND THE UNREPRESENTED BUYER, THE PERFECT STORM!

fsbo and unrepresented buyerNow we are talking! Part of my job as a real estate agent is to know what my seller is selling, and what my buyer is buying. This includes data from the town hall such as property taxes, building department information, health department information and more. I make sure my seller is really ready to sell, and that my buyer is fully informed as to what he/she is actually purchasing. 

Recently I heard a true scenario that could have been prevented. Lives are now affected as the sale cannot continue, all sorts of personal plans had been made on both sides of the deal. The seller misrepresented the property tax, this information was given to the buyer who passed it on to the mortgage professional. It was a large enough difference to affect the buyer's ability to afford the home. And because the seller did not provide a document such as a listing sheet, or tax information from the town hall, and the buyer didn't realize he/she should actually go to the town hall and check before regurgitating this misinformation to the mortgage person, the sale is now dead in the water. What a mess.

NO, REALLY, I CAN'T HELP YOU, YOU AREN'T MY CLIENT!

Now don't get me wrong, I don't mind selling a FSBO. But what I do mind is that the owner looks to me for help. AND I CAN'T HELP! I can only help my buyer. I also mind when I have to wait for the opportune moment to show a FSBO because the seller has to be there, because they work and have a life and don't trust that I know what I am doing when it comes to selling a home.

PRICING A FSBO.

I know there are statistics out there that say a home listing by a real estate agent sells higher than a home listed as a FSBO. I think it depends on how the owner arrived at their price. Using a zestimate to obtain pricing here in my neck of the woods is a bad idea because we find that the Zestimate doesn't match the final sales price. Even Zillow says it is a STARTING POINT for a price. 

What I do see is that FSBO's are often overpriced for the market, sit on the market languishing, the owner gives in and hires an agent who prices it correctly and it sells. If you want to sell, price it correctly and you won't be making as many of those mortgage payments, tax payments, home maintenance and utility payments and you can move on. 

Go and visit some open houses in your market area if they compare to yours. Learn the local market, don't rely on Zillow to tell you what your home is worth. And put aside your home owner mentality, look at your home through very critical eyes. Because that is the eye the buyer uses!

MARKETING YOUR HOME.

So, now you have the right price, please do yourself a favor and hire a professional to take the photos. Bad photos equals potential buyers moving on before they even get to your home. Also make sure it is show ready, inside and out. 

If you do have seasonal photos, bring the photographer back to take new photos. Snow photos scream to a buyer that you have been listed for a long time!

Make sure when your home is presented online it is in as many places as possible and that is looks inviting to buyers. Get them interested right away because if they don't like what they see, they will click off in 30 seconds or less!

And whatever you do, make it available to show!

BUYER BEWARE

  • If you intend to go directly to the FSBO owner, you need to know what you are doing. Get all the information you can from the home owner,
  • Property disclosures (if they don't provide you with any, you will be getting $500 at closing)
  • Lead disclosures if the home was built prior to 1978.
  • Ask if there are any association fees, what they are, what they include and if they are current. 
  • Get yourself to the town hall to find out the real scoop on the property.
  • Find out what the property taxes are and if they are paid up.
  • Pick up the field card and compare the information on that to the information provided by the home owner.
  • For those properties with a well and septic, stop in at the health department to get all that information, making sure it is a septic and not a cess pool, that the size of the septic supports the amount of bedrooms in the home, find out the depth of the well.
  • Go to the building department and see if any work done has the proper permits, and please, make sure the house has a certificate of occupancy!
  • I also suggest you check that there are no liens against the property.

Now you can make a decision based on correct information and your ability to obtain financing for the home can be ascertained by your mortgage person earlier on. For instance, if the price of the home is acceptable, but the property taxes are so high  you won't be able to afford the monthly payments, you need to know this up front! (I often see in condo's the buyers ability to purchase a property is hindered by either taxes or high association fees.)

use a realtor or notUSE AN AGENT OR NOT?

I don't mind helping a buyer purchase a FSBO, it is my job to protect you, to assist you in purchasing the home for the best price possible and navigate the pitfalls you can encounter. 

And I won't turn down the opportunity to show a FSBO owner what their home is worth in this market, to show my marketing program, and help to sell your home for the best price possible in the shortest amount of time. 

Give me a call to discuss what I can do for you. 203.460.1775.

Whatever you decide, I hope you avoid that FSBO and unrepresented buyer perfect storm!

 

 

Andrea Swiedler, Realtor, Southern Litchfield County Real Estate

2016 President Elect, Greater New Milford Board of Realtors

 Search homes for sale in Litchfield County, CT.

 

Berkshire Hathaway HomeServices New England Properties

Litchfield County Regional Office, 27 Main Street, New Milford, CT 06776

 

© Andrea Swiedler 2009 - 2016

 Always do right. This will gratify some people and astonish the rest. - Mark Twain

Comments (10)

Endre Barath, Jr.
Berkshire Hathaway HomeServices California Properties - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

GREAT  Re-Blog, I find it ironic FISBO's want to focus on saving money and then discover it not that easy.... here in CA we have about 50 plus pages of information to give to the buyer and explain... needless to say when a FISBO sells their home there is a Tail Light Guarantee unlike if there are Realtors on both sides...Endre

Aug 20, 2016 02:20 PM
Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Love this post Gabe Sanders - excellent re-blog.

Does buyer ever benefit when they buy a home from FSBO?

Aug 20, 2016 03:51 PM
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

This is a good post to reblog. I hope others will read it too.

Aug 20, 2016 09:12 PM
Donald Urschalitz
Lubeck Realty Group - Jupiter, FL
P.A. Realtor ABR RSPS North Palm Beach County

All I can say about that is!

Aug 20, 2016 10:36 PM
Roy Kelley
Retired - Gaithersburg, MD

This is an excellent selection for a reblog. Thanks for sharing.

Aug 21, 2016 01:47 AM
Robert Bob Gilbert
Berkshire Hathaway HomeServices Anderson Properties - Katy, TX
Your Katy TX ( West of Houston) Real Estate Expert

Gabe, This as my Friend Endre Barath, Jr. said is a great re-blog and is loaded with great points. I did bookmark it for later reference. 

Aug 21, 2016 08:34 AM
Lou Ludwig
Ludwig & Associates - Boca Raton, FL
Designations Earned CRB, CRS, CIPS, GRI, SRES, TRC

Parful

An unrepresented person in a real estate is a big step in the wrong direction.

Good luck and success.

Lou Ludwig

Aug 21, 2016 12:40 PM
Gary L. Waters Broker Associate, Bucci Realty
Bucci Realty, Inc. - Melbourne, FL
Eighteen Years Experience in Brevard County

I used to think FSBO meant Failed Sale By Owner.. I still do although the fail may be on the buyer side!

Aug 22, 2016 02:14 AM
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Thank you for stopping by and taking the time to read my re-blog.

Sep 28, 2016 06:11 AM
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Thanks for your comments, always appreciated.

Sep 28, 2016 06:11 AM