While the vast majority of those choosing to sell their homes without the services of a traditional RE broker do so in order to save the 6% commission, I believe in today’s challenging RE market this may not always be the best reason.
With many markets having 12 months or more of unsold houses on the market and buyers driving a hard bargain, sellers should consider using the 6% to lower the price. In weak markets smart sellers must be in front of the pack in reducing the selling price of their home. If you really want to sell quickly you must offer better value than other homes for sale in the area. It does no good at all to wait for others to drop their price and then meet the reduced prices. At that point you don’t offer anything special.
If you want to sell your home quickly check the prices of homes for sale in your area and use the six per cent you save by not using a realtor to reduce the price of your home. Stores who offer early Christmas promotions when they expect holiday sales to be weak use the exact same reasoning. If they wait until December to cut prices many if not most shoppers will have already purchased their gifts at some other store where there were early bargains available.
Recent studies show that those selling their homes without a traditional realtor are selling their homes for pretty much the same price as those who use realtors. One survey actually stated that those selling on their own actually got higher prices on average than those using a realtor. Use the six per cent you save to reduce the price of your house and sell your home quickly. FSBO may save you the 6% realtor commission but if you don’t sell you home, your saving is 6% of nothing.
I can be reached at jbritz@yahoo.com. As always readers comments and suggestions for blog topics are appreciated.
Monday, October 22, 2007
Choosing the right FSBO website
HOW TO CHOOSE THE RIGHT FSBO WEBSITE
You want to sell your home and you have decided to try to sell it without using a traditional RE agent and save the six percent commission. How do you choose the right for sale by owner website? There are just a few things to look for. If you do your homework before choosing a FSBO website you will maximize your chances of selling your home without using a realtor and saving the six percent commission. Here is the information you need to gather before making your decision
How much does the FSBO charge and how do they require payment to be made?
Before you make a decision check the various FSBO sites and see what they cost. Many sites charge you up front in full while other sites charge you monthly. One FSBO site actually offers a money back guarantee if you’re not happy with their service. Check out as many FSBO sites as possible – information is never a bad thing.
Is it easy to set up an appointment to visit a house? Once you have narrowed your choices down to two or three possible sites visit each site and try and make an appointment to visit a home. If it isn’t easy to make an appointment to visit a house you may not want to use this site as it probably won’t be easy for others to make an appointment to visit your home.
Although at first most FSBO sites didn’t have call centers some are now adding a call center. They’re doing this because sellers have had a hard time setting up appointments for potential buyers to visit their homes. Also when sellers post their own phone numbers on their FSBO lawn sign and on the website they have to deal with dozens of phone calls from brokers and others trying to sell them some service. Exactly what you hoped to avoid when you made the decision to sell your home on your own. Call each website’s call center. Call centers are important both to the buyer and to the seller. If a FSBO we site doesn’t have a call center making an appointment to visit a house or just getting information about that house isn’t going to be easy.
Most websites list at least one mortgage company. It’s worth your time to call the mortgage company listed and see what you think of them. If when you call they provide good service and appear to be qualified that is a good thing. If not be careful. Buyers visiting FSBO websites often work with the mortgage company on the website to get prequalified for a mortgage if they are making an appointment to visit a house. You should make certain that the mortgage company on the website has knowledgeable representatives and provides a high level of customer service. No matter how much a potential buyer likes your home they won’t be able to buy it without the right mortgage.
One general hint – Always try and make sure that potential buyers have been prequalified for a mortgage in amount large enough to buy your home. It’s easy for them to do, doesn’t cost them anything and while not the same as a final approval you won’t be wasting your time with buyers who probably won’t be able to afford your home.
I can be reached at jbritz@yahoo.comcom. As always readers comments and suggestions for blog topics are appreciated.
You want to sell your home and you have decided to try to sell it without using a traditional RE agent and save the six percent commission. How do you choose the right for sale by owner website? There are just a few things to look for. If you do your homework before choosing a FSBO website you will maximize your chances of selling your home without using a realtor and saving the six percent commission. Here is the information you need to gather before making your decision
How much does the FSBO charge and how do they require payment to be made?
Before you make a decision check the various FSBO sites and see what they cost. Many sites charge you up front in full while other sites charge you monthly. One FSBO site actually offers a money back guarantee if you’re not happy with their service. Check out as many FSBO sites as possible – information is never a bad thing.
Is it easy to set up an appointment to visit a house? Once you have narrowed your choices down to two or three possible sites visit each site and try and make an appointment to visit a home. If it isn’t easy to make an appointment to visit a house you may not want to use this site as it probably won’t be easy for others to make an appointment to visit your home.
Although at first most FSBO sites didn’t have call centers some are now adding a call center. They’re doing this because sellers have had a hard time setting up appointments for potential buyers to visit their homes. Also when sellers post their own phone numbers on their FSBO lawn sign and on the website they have to deal with dozens of phone calls from brokers and others trying to sell them some service. Exactly what you hoped to avoid when you made the decision to sell your home on your own. Call each website’s call center. Call centers are important both to the buyer and to the seller. If a FSBO we site doesn’t have a call center making an appointment to visit a house or just getting information about that house isn’t going to be easy.
Most websites list at least one mortgage company. It’s worth your time to call the mortgage company listed and see what you think of them. If when you call they provide good service and appear to be qualified that is a good thing. If not be careful. Buyers visiting FSBO websites often work with the mortgage company on the website to get prequalified for a mortgage if they are making an appointment to visit a house. You should make certain that the mortgage company on the website has knowledgeable representatives and provides a high level of customer service. No matter how much a potential buyer likes your home they won’t be able to buy it without the right mortgage.
One general hint – Always try and make sure that potential buyers have been prequalified for a mortgage in amount large enough to buy your home. It’s easy for them to do, doesn’t cost them anything and while not the same as a final approval you won’t be wasting your time with buyers who probably won’t be able to afford your home.
I can be reached at jbritz@yahoo.comcom. As always readers comments and suggestions for blog topics are appreciated.
Thursday, October 4, 2007
Why the name FSBO Mortgage?
When people make the decision to sell their home without using a conventional real estate agent (FSBO) they generally do so in order to save the 6% commission while knowing that they will give up whatever assistance the realtor would have provided. What of course comes to mind is the help that the realtor would provide in selling the home and the advertising that the realtor’s brokerage firm might run in local publications. Knowledgeable FSBO sellers prepare for that and typically do a good job of marketing and selling their own home.
What few sellers focus on is the knowledge of the local mortgage community that realtors bring to the table. In today’s tough market the number one reason for a house sale not closing is the inability of the buyer to secure a mortgage. Nevertheless, few FSBO sellers are equipped to help potential buyers secure a mortgage.
What would a seller do if the “prequalification letter” that a buyer had with him when he made an offer didn’t turn into an approval when it came time to close? A knowledgeable, and more importantly, a successful FSBO seller must be able to do everything that the realtor would be able to do. That includes assisting the buyer in securing the mortgage needed to close. In almost every case no mortgage equals no sale.
Before putting a house up for sale, FSBO sellers should familiarize themselves with various mortgage companies and try to make sure that their sale won’t fall through for lack of financing. Even more important the right mortgage bank can tell you within hours if your buyer is going to qualify for the mortgage they need to close. Nothing is worse than giving your buyer 60 days to obtain financing, taking your home off the market and at the end seeing the sale fall through because the buyer couldn’t get a mortgage.
It’s easy to go online and see what various mortgage bankers and brokers have to offer. If you do take the time to go online, take the extra time to call and interview each firm that you think looks interesting. As many online mortgage bankers are only interested in working with those that want a mortgage when they call, make sure to explain your situation right up front so you don’t waste your time talking to someone that will ultimately not be interested in doing business with you as you are not ready to commit.
Please contact me directly with your comments or questions. Readers ideas for blog postings are always appreciated.jbritz@yahoo.com.
What few sellers focus on is the knowledge of the local mortgage community that realtors bring to the table. In today’s tough market the number one reason for a house sale not closing is the inability of the buyer to secure a mortgage. Nevertheless, few FSBO sellers are equipped to help potential buyers secure a mortgage.
What would a seller do if the “prequalification letter” that a buyer had with him when he made an offer didn’t turn into an approval when it came time to close? A knowledgeable, and more importantly, a successful FSBO seller must be able to do everything that the realtor would be able to do. That includes assisting the buyer in securing the mortgage needed to close. In almost every case no mortgage equals no sale.
Before putting a house up for sale, FSBO sellers should familiarize themselves with various mortgage companies and try to make sure that their sale won’t fall through for lack of financing. Even more important the right mortgage bank can tell you within hours if your buyer is going to qualify for the mortgage they need to close. Nothing is worse than giving your buyer 60 days to obtain financing, taking your home off the market and at the end seeing the sale fall through because the buyer couldn’t get a mortgage.
It’s easy to go online and see what various mortgage bankers and brokers have to offer. If you do take the time to go online, take the extra time to call and interview each firm that you think looks interesting. As many online mortgage bankers are only interested in working with those that want a mortgage when they call, make sure to explain your situation right up front so you don’t waste your time talking to someone that will ultimately not be interested in doing business with you as you are not ready to commit.
Please contact me directly with your comments or questions. Readers ideas for blog postings are always appreciated.jbritz@yahoo.com.
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