For Sale By Owner com Founder used an agent

August 21, 2012

Today I learned something not so surprising.  CEO of ForSalebyOwner.com, Colby Sambrotto sold his home using a Realtor! said the article title.Anibal-Group-LLC-RealtyNetWorth-Marketing-Open-House-Signs_3_In-Yard_Open_ForSale_Website-2

He’d used his FSBO site for 6 months, then listed the property and sold it in weeks, …. for thousands more than he’d been asking no less. Why  is this NOT surprising to me? I’ve been in the business 30 yrs as a 2nd generation multi-state broker and even I know the value of not representing property yourself, Yes, I too have listed more than 1 property with other offices. Why ? I practice what I preach, that’s why.

With face to face buyer/seller situations I see many opportunities for immediate loss of strategy.

The buyers may think:

  • ‘Well, you’re not paying an agent so I’d like to save that cost’ (you get nothing extra for all your work).
  • They ask a question, seller answers, they move in and have a problem and say “well you said such and such and now I have this problem. (extra pain, no financial gain).
  • Or buyer is old, seller is young – buyer thinks, ‘we’ll offer much less since we should be in a better negotiating position due to our age’.
  • Or seller is old, buyer is young – buyer thinks, ‘we’re young and craftier then seller, we’ll make sure we get the anibal-group-llc-realty-net-worth-all-over-usa-seal-beach-california.pngbetter deal’.
  • Or seller is _____ and buyer is ______, the list goes on what personality and etc things can get in the way.
  • Forget the possibility for sellers violating disclosure requirements, HUD Fair Housing parameters, silent fraud, implied warranties,….

So what about me, a buyer, going it alone and buying from a FSBO ? Been there done that didn’t go well. Did it once and never again. If an agent isn’t there to talk sense into a seller on my behalf re: price/ repairs/ etc etc, it ends up a waste of my time. Unrealistic sellers that don’t have a plan of attack may even say YES to my fair price, but then I have to do all the work from then on with little to no help or cooperation from them. So I have to earn my discount running things about, setting up appraisals, closings, inspections, and no lockbox makes for a really (not) fun time getting back in the property after acceptance of offer.

I’m not surprised the FSBO chief used an agent, after all, I – a broker – prefer not to rep my own properties !

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5 things needed to make an offer

August 20, 2012

Its not the same as going to a garage sale – here, you want more than just the “garage” !

Yes you need qualification to buy, but as a buyer, you also want a mapped out strategy and the tools in hand to execute it. When we submit an offer, well typically be ready to defend & “sell” our buyers as best as possible with specific goals and strategy in mind.

  • Proof of ability to purchase: bank statement or lender letter
  • Our valuation packet – how we arrived at our buyers offer, support documents and calculations, why this is the sellers best expectation from a legitimate purchaser offering an amount a legitimate appraiser will confirm.
  • Fully signed by all buyers and witnessed offer packet, with full set of disclosures signed buy all buyers.
  • Strategy. This is were we are ready to act in a pre-discussed/ predetermined way. Will the seller ignore your offer ? counter ? accept ? or simply move on to other waiting offers. What you’d like to ultimately accomplish affects how we approach “the negotiating table”. Here’s were you’ll want someone who can speak knowledgeably on your behalf in matters involving timing, valuation, construction techniques relative to possible inspection results.

zzzz For real estate, a giant spring clearance sale

March 26, 2011

DO NOT SHUT OFF YOUR COMPUTER !!

YOU WILL BE AUTOMATICALLY REDIRECTED IN 15 SECONDS.

IF YOU SHUT DOWN YOUR COMPUTER YOU COULD DAMAGE OR DESTROY YOUR HARD DRIVE AND ALL ITS CONTENTS!

Despite record affordability of homes, buyers are still spooked and staying on the sidelines

..Existing home sales plunged nearly 10 percent in February to their lowest level in nine years. It was the largest drop since July. Forty percent of those sales were on distressed properties. And new home sales are on track to come in at just 250,000 this year, the fewest since the Kennedy administration, when there were 120 million fewer people in the United States….

Nationwide, forecasters expect house prices to drop at least 5 percent more this year.

 

..A recent study by Capital Economics found that 60 percent of sales are to foreigners and investors, most of them paying cash. In fact, in international real estate circles, the U.S. is viewed as the “new emerging market,”………..

Make Money in 2011: Your Home

November 16, 2010

………..What to Watch: Signs of an improving market: three straight months of rising sales and a decreasing inventory of homes (a six-month supply is considered healthy; today it’s 11 months). A local agent or realtor’s association can supply you with that data.

Action Plan: Buyers. Don’t try to time the market perfectly. Even if prices fall a bit more in your area, mortgage rates could rise later in the year, offsetting the drop. Initially bid about 10% below what comparable homes have sold for over the past three months; go even lower if the area is rife with foreclosures………………….

Michigan foreclosure rates by ZIP Code…

November 15, 2010

Opportunities or scary realities ? The webmaster passes along these thoughts with the post/link: New administration in Lansing should make MI a changed economy in about 3 yrs ( ask me for my source ), the areas with the furthest drops should see the biggest opportunity for gains – we’ll we’ve certainly dropped, and current clients are loading up on rentals w/experiences that they feel favor the landlord….cheap properties/strong rents. Webmaster

Michigan’s foreclosure rate was the 5th highest nationwide for the month of October. About one in every 235 housing units in Michigan received a foreclosure filing. Nevada, Florida, Arizona and California were the top four states, respectively.

ZIP Codes in Monroe (48145), Van Buren (49027), Livingston (48139) and Oakland county (48178) had the highest foreclosure rates in the state last month.

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The Best Time Of Year To Sell A Home

January 5, 2010

  • https://www.zillow.com/research/best-time-to-list-2018-19215/

    • ‘.. Nationwide, the first half of May is the best time to list a home ..’ 
  • Best month to sell Best day of the week to list Why?
    First half of May Saturday Nationally, homes listed for sale in this window sold almost two weeks faster than average, and for $2,500 more,

    ​

Property not moving quickly ?

 

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If You Don’t Buy a House Now, You’re Stupid or Broke

December 11, 2009

Have you read this in Business Week.  My first thought, wow! harsh! But Mark Roth makes excellent points for those on the fence.  Namely interest rates are at the lowest in 40 years. He noted that in the late 70s, rates hit 18%! In thAnibal-Group-LLC-Realty-Net_Worth-Investment-Toolse 80s, when rates dropped from 12% to 9%, my parents practically danced their way to the 1st refinance.  Mr. Roth points out the history of previous rates in terms of one’s purchasing power.

I happen to agree with his prediction that as the economy becomes more stable, rates WILL rise to hedge inflation.  My prediction – that by this time next year, rates will have risen 1-2% at a minimum.

On a sale price of $250,000:

  • Assuming a 5% down payment at 5% interest on a 30 year fixed, your monthly principal and interest payment would be $1275.
  • If rates rise to 7%, your payment increases to $1580/month.  Some buyers may be on the fence because they fear prices may drop further. Consider this.
  • If there is a 10% decrease in price and the $250,000 falls to $225,000 in one year, but you wait to purchase and the interest rate rises to 7%, your payment will be $1422.
  • You spend more money per month plus at the higher interest rate, you pay more interest over the life of the loan.
  • Real estate appreciation is always a cycle and as the economy stabilizes, values will level out.  Steve Harney is already analyzing data this is happening in many markets and that this will occur by 2014 in many states. Making a home purchase is still a decision that should be weight carefully and is not for everyone.  One important consideration will depend on how long you plan to stay in the home.

Mark Roth summed up the article, “What I’m trying to impress upon everyone isFaces_Fall_Petosky_byChalet_Sml_button_FRAMED that if you are planning on being a homeowner now and/or in the foreseeable future, or if you are looking to move your family into a bigger home, then pay more attention to the interest rates than the price of the home. If you have a steady job, good credit, and the down payment, then you really are being offered the gift of a lifetime.”

We do NOT think you are stupid or broke if you don’t buy a house right now.  But if you are considering purchasing a home and would like to discuss it, we’d love to sit down and help you weigh options. 2009 may be a chance of a generation.  Source