When you’re looking to buy a home, you may wonder, “Does it matter if the property is listed with a real estate agent or a for sale by owner who are trying to sell it themselves?” Um, yes. It matters. A lot. The truth is: When it comes to signing contracts, handing over escrow money, and digging into the home’s history, going it alone can end up costing homebuyers a bundle.
The following are 6 reasons to avoid a For Sale By Owner (FSBO) home.
1. Are you sure it’s legit what they are selling?
Unfortunately, scams abound and the real estate industry isn’t immune, specially if buying a for sale by owner. If you don’t have an agent looking out for your best interests, it’s easy to be duped. For example, would you know what a proper sales contract looks like if real estate is not your field of expertise? Depending on the state in which your reside, there are a number of legal forms that must be completed. In addition to a contract, property disclosures, occupancy agreements, and lead paint records are just a few documents that must be signed. Because a for sale by owner is not bound by a code of ethics as Realtors® are, there’s no way to be certain they won’t try to take an unsuspecting buyer for all he or she is worth. No would-be buyer should suffer sleepless nights wondering where that escrow money ended up.
2. Full disclosure When Selling
Obviously, when you’re making a significant investment you want access to as much information as possible. Real estate agents have the ability to get you the answers you need. Whether it’s about repairs made to the home or liens against the property, the more you can find out, the better off you’ll be when it comes to negotiating. Plus, no one likes an unpleasant surprise when it come to a for sale by owner. Remember: Knowledge is power. On your own, would you know what to ask a seller? And, more to the point, would you know if a seller is hiding key information? It’s a risk better off not taking.
3. Are you a skilled negotiator?
In the course of doing business, you’ll probably have to go back and forth quite a bit — and not just about the price of a for sale by owners home. What if repairs need to be made? Are you ready to haggle over who takes care of a leak or a structural issue? What if you can’t agree on a closing date? When you have an agent, he or she will handle all that for you.
4. Is money an issue?
The main reason sellers choose to sell their homes as a for sale by owner is to save money by not having to pay an agent’s commission. So what happens if your seller is strapped for cash but problems pop up during a home inspection and they can’t afford to fix them? This, in turn, raises a red flag as you start to wonder if they took the cheap way out when making important home repairs.
5. Are you ready to deal with a for sale by owner all the time?
When it comes to arranging the home inspection or any other viewings of the house, your agent can serve as your go-between so you don’t have to contact the homeowner repeatedly. Unless you’re completely comfortable making all those appointments yourself, you should probably have someone representing your best interests.
6. What’s the timeframe for selling?
When a seller hires an agent, you know they’re serious about making a deal. With a for sale by owner, are you sure the sellers are really going to get moving? Some may have put the home on the market just to see what offers it could attract. If you’re an interested buyer, you need to know that the seller is just as eager to make a move; otherwise you’re wasting your time and getting your hopes up for nothing.
Of course, there are honest for sale by owners out there, but when it comes to making one of the largest investments of your life, you don’t want to take any chances. Having a real estate agent working on your behalf at every stage of the transaction can offer peace of mind and end up saving you money and countless headaches.
Are you thinking about taking the FSBO homes for sale in farmington hills route for selling your house? Here’s something you should know about before you make a big mistake:
A home for sale in Farmington Hills, Michigan with signs that say “For Sale by Owner” (FSBO) are always the last one to get sold on the block. Why? As soon as people find out that a real estate agent is not involved in the process, they stop themselves from placing an offer. They are concerned about who is the point of contact. In the back of their mind, they assume that something is wrong with the house and this is why the house is being sold by the owner.
The question is: as a homeowner, why are you doing this?
Are you trying to save on the real estate agent’s commission?
You might keep a few hundred dollars in your pocket but the money that you will pay throughout the process for transfer, deeds, and liens will have your mind reeling. Most important of all, you might not be able to draft a professional contract for your FSBO homes for sale in Farmington Hills, Michigan, which will leave you vulnerable to loopholes that the buyer can take advantage of.
FSBO vs. Realtor
According to National Association of Realtors, 30% of houses found are through real estate agents. In 2016, 8% of the houses were sold by homeowners themselves. Around 51% of the houses are found on the internet, which shows how important it is to market your house on the right platform.
With that being said, let’s take a look at why hiring a real estate agent for your home for sale in Farmington Hills, Michigan is better than taking the FSBO route:
1. Selling Price FSBO Homes For Sale In Farmington Hills
FSBO – A house that is put on the market by the owner is typically sold for $190,000. There are a number of reasons behind it such as a professional not being present at the time of negotiations and failing to understand the lingo used in such meetings. There’s also a problem of trust, as buyers think they might be getting scammed.
Realtor – A home for sale in Farmington Hills, Michigan being handled by a real estate agent is typically sold for $240,000. The reason behind this increase in sale price is because they are able to compare your house to comps and convince the buyer that all the features in the house are worth the asking price.
2. Time on Market
FSBO – It takes around 88 days for a homeowner to sell the house on his own. Usually, the house sits 18 days to 3 weeks longer on the market than a house being sold by a realtor.
Realtor – A house can be sold by a real estate agent in 2 months or less. The time frame also depends on the features of your house i.e. whether they are trending in the market or not.
3. Stress on Seller
FSBO – FSBO-ers are always worried about one thing or another regarding the documents of the house. They are 70% more stressed than people who work through a real estate agent. They have to tackle everything themselves; the packing, the staging, the sale and moving.
Realtor – Realtors have resources, which they recommend to homeowners. From legal paper work to repairs and finance, everything is taken care of by someone else.
This is why working with a real estate agent is a much better option than taking the FSBO route. Not only are you stress-free but you make a pretty profit on the sale too! Before putting up your home for sale in Farmington Hills, Michigan on the market, why not get it appraised by experts. Visit Homes2MoveYou now and get yourself a real estate professional like me to guide you through the process. 248-790-5594
Are you planning to take the FSBO route for your Farmington Hills Michigan real estate? Before you put up that sale sign, there’s one thing that we would like to ask:
Can you handle this deal “ALL ON YOUR OWN”?
Your Farmington Hills Michigan Real Estate Agent Benefits You
Let’s not be too hasty by saying “yes”. If you are thinking about saving that commission, which you have to pay to the real estate agent, then we would like to tell you a small fact:
You might not have those savvy negotiations skills that are required to cut a profitable deal… which means that you will be losing money on the sale price.
The one thing that real estate agents excel at is bringing you multiple buyers and selling your house at a price that is higher than you expected. They take care of everything involved in the process such as staging, online marketing, open houses, mortgage advice, closing, deed transfer, etc.
Are you confident you can handle this by yourself?
This is why we believe that hiring a real estate agent is in your and your house’s best interest. Following are five reasons why you should hire a real estate agent when putting up your home for sale:
1. The Right Listing Price
When it comes to real estate, agents have in-depth knowledge about the current market. The price is not simply set but the agent makes evaluations by comparing your home to the comps and then lists your house at the right asking price. This gives you a guarantee that you will get offers from serious buyers.
2. More Buyer Exposure
The moment your Farmington Hills Michigan real estate will go on the market, rest assured, you will receive an offer or three in just a week. Real estate agents have amazing listening and marketing skills. During an open house, they keep their eyes and ears open to gauge the expressions of the visitors, so that they can make the necessary changes to the house.
3. Higher Offers
When yours and the buyer’s real estate agent come together, they think of the house objectively. This allows them to come to a negotiation that benefits both parties.
4. Better Negotiation Skills
Let’s say that during the inspection, your home for sale revealed a nasty repair. There’s a possibility that the buyer might back out of the deal. However, with a real estate agent by your side, you will be able to better tackle this problem. In cases such as these, the real estate agent assesses the situation and then includes incentives in the deal to keep the buyer satisfied.
5. Speedy Closing Process
The closing process involves a lot of paperwork that needs to be stamped, signed and checked at the county’s record office. You need to have connections with the right people, who can move this process along fast. This is where the real estate agent comes in. They make sure that all documents are signed and the deal is closed within the 60 days window.
If you think about it, a real estate agent sort of has magical powers that can help you sell your house for top dollar. If you are looking for such a competent real estate agent who will help you sell your Farmington Hills Michigan real estate then visit Homes2MoveYou and get your house listed now on the website.