Selling FSBO or with Realtor Assistance

In this emerging real estate market following the now famous 'busted bubble', sellers are now realizing that their homes are taking more than two weeks to land a contract. In addition, as the months creep by, sellers consider cutting their prices in order to cut their increasing losses.

One of the ways some try to cut costs is by attempting to go FSBO - For Sale By Owner.

The Realtor's commission has been one of those expenses that many sellers consider optional - kinda like deciding to buy a new BMW or a used Kia. Both get you to your destination, but one does it with more style. However, using a Realtor is not about style at all. As the FSBO goes it alone, many will find that this market - abundant with housing options - needs a sales approach that is nothing short of Expert!

The selling strategies and resources available to Realtors are often unknown by Mr. & Mrs. FSBO, and the outreach of the FSBO to the illusive Buyer is usually very limited.

The FSBO approach may be worth attempting if:
* you are able to show your property on short notice at any time of the day
* you are familiar with the legally required steps to transfer ownership with a clean title
* you have a way to identify qualified buyers from curious tourists
* you are willing to identify and create ads for various marketing opportunities
* you are prepared to protect yourself when you allow unqualified strangers into your home
* you are able to disconnect your emotional connection to the house as strangers tour it
* you have a objective system for coming up with a fair market price to sell at
* you have no problem negotiating with those who see your home as less in value than your asking price.

Other ways to make the FSBO more effective in the current market are:
* be prepared to work with and compensate the Buyer's Realtor - their client is likely to be prequalified to afford your home
* find a Real Estate Broker that will agree to handle the paper work of the transaction for maybe 1% or a flat fee, after you have identified a Buyer
* use a service that offers marketing assistance, contracts and forms to the FSBO

Using a Realtor is the smart way to go if you have tried going the FSBO route unsucessfully, and or, you need a greater probability of getting your home sold. Remember, Realtors are constantly outreaching to Buyers and when your home is listed on the MLS - Multilple Listing Service, all those hundreds of thousands of Realtors are able to see your home and its attributes. Realtors work hard to find Buyers for your home and to follow through on the steps to bring the Buyer to closing the transaction and putting $ in your pocket.

Just as you work hard for your income, so does the Realtor. Because their income is linked to closing the transaction, getting your house sold is their focused agenda. Much of what the Realtor does to get your home sold takes place outside of your view, but they are working for that specific goal - relentlessly. They don't get paid if they don't close the deal.

Realtors, unlike Licensed Real Estate Agents, are also bound by a code of ethics in the course of meeting with clients, buyers, and vendors.

FSBO or Realtor Services? Well, each situation is unique, and the seller must decide. The smart seller will not wait till the situation is desperate to call in the experts, so if you decide to go FSBO, set a time line that if you have not contracted your property for sale by that date, that you will contact a Realtor to maximize the statistical possiblity of landing that qualified Buyer.

Trudy Beerman, CPMS, Realtor
Broker/Owner
Residential Investor Services, LLC
www.residentialinvestorservices.com
(813)760-5624

Trudy's Top 7 Tips: Increasing Seller's Property Value

Understand first of all that there IS a difference between price and value. Price is the amount you are asking for the property. Value is Buyer perceived, and this perception of value is influenced by many factors such as location, features, condition, comparison to other purchase option, etc. By attending to details that can have a positive impact on the value, Sellers can significantly increase their chance of attracting qualified Buyers willing to pay the asking price.

Some tips to achieve a positive impact on value are:
1. Percieved size impacts value, even more so than actual square footage. Open floor plans make a room feel bigger than larger spaces with smaller rooms. Showing property that is furniture free, or at reduced clutter, helps to make the space feel bigger.

2. Vacancy increases sale-ability property is easier to show and easier to sell, and quicker to take possession of. Evidence of problems to take possession of the property - such as encroachments, or tenants who wont allow Buyer tours, negatively impact value. Vacancy also helps the Buyer walk through the property imagining ownership. Sellers should remove personal trinkets and family pictures as well as conveniently absent during a Buyer tour.

3. Cosmetics are important.

• Fresh paint will always add more value than it costs.
• Clean or new carpet/flooring adds more value than it costs.
• Landscaping adds more value than it costs. At the very minimum, make the entrance area neat.
• If you can, add some colorful flowers and new sod.

4. Take care of the obvious! The spot on the ceiling from the roof leak takes thousands of $ from the perceived value and the offer price.

5. Condition affects value. Do a seller’s home inspection to identify and fix the problem BEFORE closing. No point holding up your check a few extra days, plus a failed buyer’s inspection could cost you the sale. Buyers will often bargain down your asking price to accomodate for property condition and repairs.

6. If you can, remodel/update the kitchen and master bathroom. These two areas have a big impact home buying decisions.

7. Strategic renovations impact value and your bottom line. Don’t spend more money to renovate the place than you can recapture in value on the sales price.

Trudy Beerman, CPMS, Realtor
Owner/Broker
Residential Investor Services, LLC
www.residentialinvestorservices.com
(813) 760-5624

Dennis Beerman, President/Owner
Certified Building Contractor - Florida
Scott's Custom Renovations & Construction, inc.
www.SCRC-FL.com
(813) 433-8556