Archive for December, 2008

Guidelines for a Successful FSBO

Wednesday, December 10th, 2008

Technology has made every human endeavor easier. With the help of this amazing thing, selling properties, particularly For Sale by Owner transactions, should be a breeze as well. Through the Internet, homeowners can now put their properties on the market without a sweat, or the help of a real estate agent.

An FSBO transaction is always worthwhile. It spares sellers from having to pay commissions to an agent and it gives them full control of the entire process.

For a successful FSBO, follow these guidelines:

  1. Make sure that your home is ready to sell. A presentable home is very important in an FSBO transaction. Do some enhancements. They can be as elaborate as redecorating rooms and improving the landscape or as simple as scrubbing the carpet and cleaning the house.
  2. Set a reasonable price for your property. A very low price will leave you with a meager profit while a very high price might drive buyers away. Price is the major reason why FSBO transactions fail. To help you decide on a sensible price, hire an appraiser.
  3. Seek the help of a real estate lawyer. They can be very helpful in drafting the sale contract. Also, they can help you learn about complicated mortgage terms.
  4. Market your home. Advertisements range from simple word of mouth to yard signs to internet ads. An open house is also a good advertisement if you want a more personal encounter with potential buyers.
  5. Discuss offers with your buyer. Be ready with counter-offers. Also, assess your buyer’s paying ability.
  6. Have your home inspected. Should damages be found, it is your obligation to have them repaired. Otherwise, you may choose to slash the cost of repair from the amount to be paid by the buyer.
  7. Prepare for closing day. Usually, the buyer does a final inspection to make sure that necessary repairs are done. This happens 30-45 days after contract-signing. All payments are made on that day.

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Good Marketing Techniques In Selling Properties For Sale By Owners

Monday, December 8th, 2008

Selling FSBO homes these days is difficult due to slowdown on house markets. Buyers never get tired of looking for better offers as it is a form of investment for them.

Here are some good marketing techniques:

  1. Make sure to upload good quality pictures for the buyers to see how the house looks like. Everything that they would want to see in the pictures must be organized and do not include unnecessary things.
  2. One of the marketing strategies that a seller must remember is to stress on the good points of the house. Tell the potential buyers what makes it unique among the others and what made the seller purchase the property. Sure, not all the qualities are good, but emphasize more on the positive factors.
  3. Be impressive. Instead of the usual food being served, have it catered as it is one way of enticing potential buyers, agents and brokers.
  4. A lockbox is always important in a property.
  5. Giving a higher commission can motivate the agents.
  6. Providing perks and incentives are good motivation for potential buyers who are on the lookout for homes for sale by owners.

    7. Some examples of perks are:

    • A discount of the property’s total costs
    • House protection scheme
    • 1 year homeowner organization fees
    • Lower interest rate
    • A weekend travel that is good for two
  7. It always pays to advertise. People read newspapers everyday and that is where a seller or an agent can put the advertisement.

    8. Here are some ways:

    • Advertise about a property for sale by owner in a Sunday newspaper.
    • Put up an ad with the photo of the house if possible.
    • Advertise in newspapers that are published once or twice a week.
  8. An interactive tour is a great way of advertising FSBO houses. Potential buyers may have no time to view the house personally, so make sure that they can fully take a look at the house online.

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Bad Marketing Strategies in Selling FSBO Homes

Monday, December 8th, 2008

Despite the slowdown on house markets, there are still homes that are for sale by owners and some were sold easily. The house itself is not the problem. It may be because of poor marketing strategies which are the following:

  1. Uploading bad quality pictures online.
    Before purchasing a home, buyers would want to see how the house looks like. A picture of the house can entice a buyer so it is better to have good quality pictures.

    Here are examples of photos that should not be produced:

    • Dark pictures with closed blinds
    • Sideway pictures
    • Disorganized rooms
    • Uncropped pictures
    • Pictures of pets asleep on the couch
    • Uploading just one photo
    • High resolution pictures without altering the pixels for online viewing
  2. Providing incomplete information about the property.
    Selling properties is a competition. A seller should not miss out on any good points of the house. Stress on the unique qualities and why it is considered a best buy among the others.
  3. Not giving importance to agents and brokers.
    Keep in mind that they are the people who can be a big help in selling homes for sale by owners so never underestimate them.
  4. FSBO homes have limited access for viewing.
    These examples can prevent showings:

    • House without lockbox
    • Limited time for showing
    • 1-day notification to view the house
    • House viewing only by appointment
  5. Giving low commission would not make the agents motivated.
  6. Not giving perks to buyers.

    To entice potential buyers, including perks is one way of doing so. Even if it is not pricey, perks are something free that can be received by them.

  7. Selling without a print ad is like not wanting to sell the house quickly.
  8. Selling without an interactive tour.

Some buyers do not have enough time to personally look at the house. They would rather view an FSBO property through an interactive tour, otherwise they would show no interest at all.

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Research Is Key to Pricing Your FSBO House Right

Tuesday, December 2nd, 2008

Like all homeowners, you want to sell your FSBO home at the best price. But how do you arrive at the best price? The best price would be the price level at which your house is sold within three weeks and at the same time provides you with good profit.

You can establish the right price by researching various FSBO listings and making comparisons. Make sure that you compare your FSBO house to similar homes for sale by owners.

There are five types of house listings that you need to research:

  1. Listings of FSBO homes with similar characteristics

    2. Focus on lists that include homes within a half-mile of your home. Do not compare homes from nearby neighborhoods but separated by railroads or freeways.

  2. List of sold FSBO properties

    3. Look at original list prices and final sales prices and calculate price reductions. Note how often final sales prices equal actual sales prices, including percentage of reductions if actual sales prices are reduced.

  3. Withdrawn and expired FSBO listings

    4. Analyze why the homes were not sold and look for patterns. See if the unsold houses were listed by the same broker.

  4. Lists of pending sales

    5. Monitor the number of days the houses stay on the market. Track the changes in prices.

  5. Price comparisons

    6. Consider the square-foot cost of comparable homes for sale by owners. If your house is 1800 square-foot, compare homes sized 1600 to 2000 square-foot.

After you have gathered prices from comparable FSBO houses, made calculations and arrived at your own sales price, analyze the FSBO market. Is it a seller’s market where you name your price or is it a buyer’s market where you bow down to the buyer’s price?

Remember however that during these times of economic difficulties, the buyers control the housing market. Be careful of overpricing, as the longer your FSBO home is on sale, the more difficult it is to be sold at your desired price.

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Facts and Tips in Buying Homes For Sale By Owner

Tuesday, December 2nd, 2008

Several myths have surrounded homes with hand-painted signs on the lawn that say For Sale By Owner which distracted potential buyers from inquiring, or even considering, these homes for sale by owner. One popular myth is that owners of FSBO homes are not really going to sell. This may be true for some people who are just testing the market. However, with the increasing market movement for FSBOs, these homeowners are actually serious in selling their properties.

Some buyers think that homes that are for sale by owner are hiding something, like defective materials, that owners opted to forego hiring real estate agents to keep them hidden. However, FSBOs are bounded by the same laws that cover all homes for sale, and these laws require full disclosures and material information.

An old notion existed that properties for sale by owner will not give the buyer flexibility with pricing. With the current financial crisis, FSBO owners are under the impression that they badly need every cent from the home sale and will not bend on the number they put on the FSBOs price tag. On the contrary, the National Association of Realtors have indicated that FSBO listings are actually sold less than agent-sold houses. FSBO owners are not professional sellers and most have done this only for the first time. A little haggle on prices, or starting out smaller than the listing could finalize a price that would benefit both seller and buyer.

Before finalizing the deal with the FSBOs, ensure that you have established the details of your purchase contract with the seller. Real estate agents usually have legal departments for this, but you can hire independent lawyers to do the same job for you. Make it clear with the seller on who is responsible for fees like taxes, escrow and other related items, and arrange for a home inspection.

There are other tips that potential buyers can learn regarding FSBOs. Those seeking to buy new homes can learn from these and get the most from their FSBO deals.

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Effectively Marketing FSBO Homes

Tuesday, December 2nd, 2008

Homes for sale by owner can be marketed by applying these indispensable techniques. Selling property can even be interesting with marketing strategies that just need a dose of creativity and a good sense of what a buyer needs.

Make Sure that the Property is Well-Maintained
Homes for sale by owners should always be clean. Make sure that lawns are neat and well-maintained, bushes are trimmed, and paths going to the front door are clear. This is essential in successfully employing the next few tips.

Take Good Photographs
Advertisements without photographs will usually cause buyers to pass up an fsbo sale.

Front Photos
For front photos, remember to crop streets and sidewalks from the picture, avoid shadows, and keep vehicles out of sight. A good, close-up angled shot is best.

Exterior Shots
For exterior photos, long shots which emphasize space are recommended.

Interior Shots
Open drapes and turn on the lights. Focus on interesting and good aspects of the house. Adding accents such as flower arrangements is also a nice touch.

Advertise
The most basic advertisement is signages with the agent’s and seller’s contact numbers. Make sure that the neighborhood association allows signages though. Ask neighbors if signs can also be put up on their lawns too. Flyers with photos could also be mass distributed through the internet. Aside from these, mailing eye-catching postcards to agents, neighbors and other buyers are an inexpensive way to catch interest.

Arrange Tours
Sellers can arrange host broker or agent tours if the transaction is to be made through representation. Another interesting strategy is giving virtual tours which buyers love. One can add sounds and nice script to go with the tour. Make sure that a 360 degree view of rooms is given. Adding photographs for download is also a good idea.

By following these techniques can make selling an fsbo home a creative and satisfying experience.

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Getting the Best Deals on Homes for Sale by Owner

Monday, December 1st, 2008

The numbers of homeowners who want to sell their homes through the FSBO method (For Sale by Owner) are slowly gaining momentum with more online presence. Most owners of homes that are for sale by owner are opting for this method to save on cost allotted for agent’s commissions. With home prices going down rapidly, maximizing the profit for these homes is the priority most sellers are rooting for.

The following are tips in getting the best deals in doing a For Sale By Owner:

Determine the Worth of Your Home

Don’t rely so much on information provided by agents regarding pricing. Remember that they are competing with other agents to lure your business. Take extra efforts in researching for a similar home in the market where you can base your price on. Once you put your home for sale by owner out in the market, there might be no turning back on the price tag you put in place.

Getting Your Home Ready For Sale by Owner

Your home can attract buyers more if you present it as immaculately clean as possible. Presenting the home as professionally as possible can make the difference in closing a good deal or prospective buyers changing their minds and moving on. Spending some amount for minor improvements can make a significant impact.

Marketing Your Home as For Sale by Owner

Invest some amount for advertising. Take this out on the savings you get from agent’s commission. List your homes in Realtor’s sites, or other websites hosting FSBOs. Make flyers and mailers and hand these out in tours and auctions. Flyers and online ads should capture good photos of your home. Hire a good photographer to make at least four excellent shots and angles on your house. Online video can be another effective tool that would attract more prospects.

Be flexible with your viewing schedules and have someone man the phones regularly. The next caller might be the buyer you are waiting for.

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