Why do you need a Pro in your corner?

With home prices on the rise and buyer demand strong, some sellers are tempted to try and sell their homes on their own without using the services of a real estate professional. This type of sale is referred to as a FSBO [fiz-bow]. 

Investopedia breaks this acronym down:

'For Sale By Owner - FSBO'
The most common for-sale-by-owner transaction occurs in the real estate market when a homeowner wishes to avoid paying a large commission when selling their property. By not using a real estate agent, the seller assumes all the responsibilities of completing the transaction. 

Real estate agents are trained and experienced in negotiation and, in most cases, the seller is not. Sellers must realize that their ability to negotiate will determine whether or not they get the best deal for themselves and their families.

The idea of writing this Blog post came about because I called a gentleman last week that had changed his voicemail while his home was listed FSBO. I could hear the frustration in the sellers voice:

“Hi you’ve reach the voicemail of James ______. If you are calling about the home on NW 81st for sale please DO NOT leave a message if you aren’t willing to pay full-price! If you are calling to get in and see the house please do not come knocking on my door because I didn’t answer the phone! This is not an invitation to trespass on my property! Leave a message and I will get back to you at a normal time. If you’re calling after 10:00 I will not be returning your call!”

— James, FSBO Home Owner

It isn't hard to tell how frustrated James is with his home listing...

We spoke for a little while and I am going to be meeting with him late next week to see if I can help him. Even if he isn't interested in listing his home for sale with me, I feel it is only right to offer counsel to a man and his family if I can. 

Selling your home on your own is no easy task. Heck, selling a home as an agent is never easy... we just make it look that way! Lol. 

Before your home even gets listed for sale an agent should be investing a good portion of time in getting to know your home, the home sales and current listings in your neighborhood and compare the data to measure it against the current market. 

Listing a home for sale isn't a matter of knowing HOW MUCH a homeowner wants to make. When a agents agrees to sell your home they should be offering a certain level of expertise and professionalism.

Your agents primary concern should be: Is this the best decision for you and your family?!

Here is a list of some of the people with whom the seller must be prepared to negotiate if they decide to FSBO:

• The buyer who wants the best deal possible
• The buyer’s agent who solely represents the best interest of the buyer
• The buyer’s attorney (in some parts of the country)
• The home inspection companies, which work for the buyer and will almost always find some problems with the house
• The termite company if there are challenges
• The buyer’s lender if the structure of the mortgage requires the sellers’ participation
• The appraiser if there is a question of value
• The title company if there are challenges with certificates of occupancy (CO) or other permits
• The town or municipality if you need to get the CO permits mentioned above
• The buyer’s buyer in case there are challenges with the house your buyer is selling
• Your bank in the case of a short sale

Bottom Line
The percentage of sellers who have hired real estate agents to sell their homes has increased steadily over the last 20 years. Meet with a professional in your local market to see the difference they can make in easing the process.

Home Inspections: What to Expect

So you made an offer, it was accepted, and now your next task is to have the home inspected prior to closing. Oftentimes, agents make your offer contingent on a clean home inspection.

This contingency allows you to renegotiate the price you paid for the home, ask the sellers to cover repairs, or even, in some cases, walk away. Your agent can advise you on the best course of action once the report is filed.

How to Choose an Inspector
Your agent will most likely have a short list of inspectors that they have worked with in the past that they can recommend to you. HGTV recommends that you consider the following 5 areas when choosing the right home inspector for you:

1. Qualifications – find out what’s included in your inspection and if the age or location of your home may warrant specific certifications or specialties.
2. Sample Reports – ask for a sample inspection report so you can review how thoroughly they will be inspecting your dream home. The more detailed the report, the better in most cases.
3. References – do your homework – ask for phone numbers and names of past clients who you can call to ask about their experiences.
4. Memberships – Not all inspectors belong to a national or state association of home inspectors, and membership in one of these groups should not be the only way to evaluate your choice. Membership in one of these organizations often means that continued training and education are provided.
5. Errors & Omission Insurance – Also known as E&O. Find out what the liability of the inspector or inspection company is once the inspection is over. The inspector is only human after all, and it is possible that they might miss something they should have seen.

Ask your inspector if it’s okay for you to tag along during the inspection, that way they can point out anything that should be addressed or fixed.

Don’t be surprised to see your inspector climbing on the roof or crawling around in the attic and on the floors. The job of the inspector is to protect your investment and find any issues with the home, including but not limited to: the roof, plumbing, electrical components, appliances, heating & air conditioning systems, ventilation, windows, the fireplace and chimney, the foundation, and so much more!

Bottom Line
They say ‘ignorance is bliss,’ but not when investing your hard-earned money into a home of your own. Work with a professional who you can trust to give you the most information possible about your new home so that you can make the most educated decision about your purchase.