Many home sellers have considered skipping the real estate agent to save on closing costs, but very few have actually succeeded in seeing those savings. There’s a good reason: the average homeowner doesn’t have the rigorous training and real estate knowledge that a licensed agent does.
But just what makes For Sale By Owner (FSBO) such a bad idea? From incessant inconveniences to costly paperwork mistakes, here are a few of the horror stories that FSBO sellers inevitably encounter.
The Daunting Task of Marketing Your Home
It takes more than a “For Sale” sign in your front yard to make buyers notice your home. According to the National Association of Realtors, 95% of buyers use the Internet in their home search.
This means that online marketing — starting with listing your home on the local listings database, sharing your listing to dozens of social media platforms, and advertising your listing on numerous websites with a global audience — is essential to selling your home.
Without an Agent, Home Marketing Isn’t Cheap
This is where it gets expensive: yard signs, newspaper ads, brochures, high-quality photographs, and a professional-looking website — things real estate agents have at their disposal — are your responsibility to finance and maintain when you have to do your home’s marketing yourself. Continue reading
What You Want and Don’t Want to Hear from Your Listing Agent
You’ve decided to sell your house. You begin to interview potential real estate agents to help you through the process. You need someone you trust enough to:
- Set the market value on possibly the largest asset your family owns (your home)
- Set the time schedule for the successful liquidation of that asset
- Set the fee for the services required to liquidate that asset
An agent must be concerned first and foremost with you and your family to garner that degree of trust. Make sure this is the case.
Sale Prices Soar for Ann Arbor Condos
When comparing Ann Arbor condo data year-to-date through August of 2016 to that of 2017, little has changed, except in one very important area. The number of new listings that came to the market was 552 in 2016 and 550 this year, basically the same, as with the number of sales, 455 vs. 447. However, the average sale price of Ann Arbor condos has skyrocketed from $203,743 YTD in 2016 to $252,547 this YTD, an increase of $24%! The low supply is keeping demand high, which is raising the average sale price. This is also apparent in the average days on the market which has decreased from 31 to 27. Once we see inventory begin to rise, prices will level out. Continue reading
Email scams are as old as, well, email, but as the years go by, these scams have become more and more sophisticated. Recently, several home buyers have fallen victim to specially targeted email scams that attempt to rob them of their closing costs — sometimes up to hundreds of thousands of dollars.
These types of scams are devastating both financially and emotionally, especially when your home is involved. But to help protect you from email scams targeting the real estate industry, we have outlined a few tips about what these scams are and how to avoid them.
What Email Scams Are Common?
Though the method through which hackers collect personal or financial information is always changing, there are a few basic types of scams that buyers and sellers should be aware of.
This type of scam attempts to “fish” for sensitive personal or financial information (such as passwords or credit card numbers). Many emails used in recent phishing schemes look legitimate; they may use the name of a trusted company or individual as the sender name, but the email address is slightly different than the company’s or individual’s verified address.
These types of email messages may also ask you to verify information or click on a link, which could install harmful software on your computer. Continue reading
What Experts are Saying About Future Home Prices
Today, many real estate conversations center on home prices and where they may be headed. That is why we like the Home Price Expectation Survey.
Every quarter, Pulsenomics surveys a nationwide panel of over one hundred economists, real estate experts, and investment & market strategists about where they believe prices are headed over the next five years. They then average the projections of all 100+ experts into a single number to better depict the results. Continue reading
Home Inventory Still a Struggle for Buyers
First-time home buyers are flocking to the real estate market by the thousands to find the perfect homes in order to make their dreams of homeownership a reality. Unfortunately for many, the inventory of starter and trade-up homes in the US has struggled to keep up with demand! According to the National Association of Realtors (NAR), the inventory of homes for sale dropped 7.1% year-over-year to a 4.3-month supply and is down for the 25th consecutive month. Some homeowners may be hesitant to list their homes for sale because they are worried that they will also have a problem finding a home to buy. This is a legitimate concern; no one wants to sell their home quickly and not have anywhere to live.
Why Hire a Real Estate Pro?
A quick Google search is all it takes to discover hundreds of new recipes, do-it-yourself projects, and tips about how to stage your home. With so much information available online, especially about the home selling process, many homeowners start to wonder whether it’s faster and more cost-efficient to sell their own homes rather than hiring a real estate agent to do it for them. (Spoiler alert: It’s not.)
Maybe you’re just now thinking about selling your home. All those HGTV shows and helpful articles make it look so easy — how hard could it be to sell your home yourself? Or maybe you’re already elbows deep into selling For Sale By Owner and are thinking, this isn’t so bad.
A helpful tip when considering whether to skip right over hiring an agent: Just because you can do something yourself doesn’t mean that you should, especially when it comes to selling a home.
So what makes a real estate agent so invaluable?
To DIY or not to DIY? That’s the question on many homeowners’ minds when there are home repairs or home improvement projects on their to-do lists. The good news is that you can do plenty of things on your own. But for other projects, you’re better off hiring a licensed contractor, plumber, or electrician to do the work for you.
When undertaking a home improvement project, whether you’re buying or selling a home, you want to strike a balance between saving time by hiring a professional and saving money by doing it yourself. So here’s how to know when to hire a professional and when to go DIY.
Replacing Hardware — Do It Yourself
Need an upgrade from tarnished doorknobs, outdated cabinet pulls, or boring light switches? Pick up new hardware from a local home improvement store and go for it. Replacing hardware is a fairly simple fix that any homeowner can do on their own.
Replacing Roof Shingles — Hire a Professional
Unless you have significant roofing experience (and aren’t afraid of heights), you’re better off leaving this job to the professionals. Contractors can repair your roof in significantly less time — and save you risk of injury. Be sure to get a few quotes to ensure the best price. Continue reading
Now is the Time to Sell Your Home!
If you’ve thought about selling your home this year, now more than ever may be the time to do it! The inventory of homes for sale is well below historic norms and buyer demand is skyrocketing. We were still in high school when we learned the concept of supply and demand: the best time to sell something is when supply of that item is low and demand for that item is high. That defines today’s real estate market.
Lawrence Yun, Chief Economist at the National Association of Realtors, recently commented:
“Buyer interest is solid, but there is just not enough supply to satisfy demand. Prospective buyers are being sidelined by both limited choices and home prices that are climbing too fast.”
Yun goes on to say:
“Current demand levels indicate sales should be stronger, but it’s clear some would-be buyers are having to delay or postpone their home search because low supply is leading to worsening affordability conditions.”
Selling Your Home
In this type of market, a seller may hold a major negotiating advantage when it comes to price and other aspects of the real estate transaction, including the inspection, appraisal and financing contingencies. We see this every day.
As a potential seller, you are in the driver’s seat right now. It might be time to hit the gas while it remains a seller’s market. Want to know what your home is worth or are you ready to list? Contact the real estate specialists with The Bouma Group at 734-761-3060 or email firstname.lastname@example.org and we’d be happy to talk to you about it!