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.
When you’re in the business of helping people buy and sell homes — arguably the largest investment of their lives — it goes without saying that there’s a lot at stake. While real estate agents are typically unflappable pros who, in many cases, have experienced just about every scenario you can imagine, there are still some things that strike fear into their hearts.
Research, research and research… this is the only thing you need to focus on when you are thinking about buying a home for sale in Oakland County, Michigan. There are many pitfalls that buyers are not aware of. Not only do these pitfalls waste your time and energy you put into the process but also put you under mounds of debt.
Of course, with a real estate agent by your side, you can go through this process a little stress-free but at the end, you need to understand the responsibilities of becoming a homeowner. Don’t get caught up in the moment and make a hasty decision. Sooner or later, you will regret your decision because you forgot to factor in a lot of expenses.
So, to help you navigate this process without any mistakes, we bring you the five deadly pitfalls of home buying:
Forgetting the Pre-Approval Letter
The reason why a mortgage pre-approval letter is necessary is because it shows the seller that you are a serious buyer. With this paper in your back pocket, you can freely look at the homes for sale in Oakland County, Michigan and make an offer on the spot. This also keeps you at the front in the competition.
Not Planning for the Future
Is your job stable?
Are you expecting a raise or a promotion?
Do you plan on starting a family?
Where do you see yourself three years from now?
The answer to these questions will help you decide what type of house you need to buy. Selling the house after three years because you are in a relationship will put your investment down the drain. So, think carefully before making the final decision.
Letting go of the Home Inspection
A home inspection costs somewhere between from $200 to $400. Letting go of the inspection can cost you thousands of dollars. There are dozens of repairs that you might not be able to spot. This is why it is necessary to hire a trained inspector.
Not Factoring the Market Value
The value of the house appreciates over time and if you are lucky, you might even build some equity. So, do your research on the market and ask your real estate agent to compare it with the comps. This way, you will be able to find out whether you are buying an underpriced, overpriced or fair priced house.
Not Calculating the Other Costs Involved in the Process
The loan you get covers the monthly payments, down payment, and closing costs. There are many other costs involved such as the prepaid amount, legalization of documents, moving cost, home inspection fees, escrow, transfer of documents and more. Make sure that you have enough savings to cover these costs.
Going through this process without a real estate agent will cost you more because you don’t have the right connections. Now that you know the deadly pitfalls awaiting you, proceed wisely.
If you want to get the home for sale in Oakland County, Michigan appraised, then head on over to Homes2MoveYou. Get in touch with a real estate agent and start seeing houses in areas of your liking.
What a start to the beginning of the home buying and home selling season in Oakland County, Michigan, all being great news for home values and home sellers currently listing their homes, most homes across the Oakland County, Michigan are up 7% and even more since March of 2017. According to the most recent Home Price Index Report from CoreLogic, home prices nationwide increased by 7% from March 2017 to March 2018. According to an April 2017 article from the National Association of Realtors, the median home price in March 2017 was $236,400. This means the average homeowner has gained nearly $17,000 in wealth from their homes over the past year. This is great news, except inventories have been very low for Oakland County home buyers in the market to purchase a new home, but now we are seeing this staring to reverse with more home inventory increasing.
Thanks to an historic low housing inventory available it has been daunting for home buyers to find the perfect home, and if they do find one that fits their needs it becomes a bidding war between the Oakland County home buyer and their competition. Until recently, the hyper-competitive market was starting to discourage potential Oakland County home buyers. In fact, in March 2018 the number of buyers requesting home tours dropped 1.4% nationally, and the number of buyers writing offers dropped nearly 2% (according to the Redfin Housing Demand Index). The numbers don’t lie, but the return of housing inventory could not be better news for Oakland County home buyers who are desperate to find the perfect home before the school year begins.
However, according to the Demand Index, in April, newly listed homes for sale were up an impressive 6.6% year-over-year. It looks like the tides are (finally) starting to turn for potential Oakland County home buyers. This increase in inventory should make it a bit easier out there for potential Oakland County home buyers. So if you’ve been thinking about purchasing a home, now is a great time to make a move.
Most homebuyers in Oakland County Michigan and across the country are not usually open to make a quick home buying decision and view it as a recipe for disaster or a bad decision. In fact Oakland County homebuyers love to look at the many options, different layouts and areas in which to purchase a new home. To make a quick home buying decision many buyers feel pushed into a corner or feel their Realtor is pressuring them to make rash decisions, but in Oakland County Michigan this is not the case at all. Home buyers know that homes are moving faster than ever off the market, to make quick home buying decision is the smart thing to do in Oakland County Michigan.
Quick Home Buying Decision Facts
The fact is, according to a recent analysis the average home took 81 days to sell last year, and is predicted to be even shorter in 2018. Looking at the number of 81 days may not seem quick, but this includes closing which can usually take four to six additional weeks. As we see in our Oakland County Michigan market there are more buyers than available homes on the market causing home buyers to make a quick home buying decision. A recent report from Zillow finds that the average home buyers spends four months searching for a home and makes two offers before being a successful home buyer. What can a home buyer do? First of all expect a process and be prepared to be going against other offers and sometimes multiple offers. Get pre-qualified, know what you want and avoid deal-breakers and know what they are.
The more prepared you are the more likely you will make the best decision, even if it’s a quick home buying decision that you face. The face of the real estate market is always in fluctuation and swings back and forth, but with the still historic mortgage rates and prices’ of home gaining ground at record speed, it is still the best time to become a homeowner. Patience, knowledge, preparedness and a great realtor to guide you through the process can make your home buying experience a pleasant and enlightening one. READ MORE
Please feel free to give me a call as it would be a pleasure to help you through the process of becoming a home owner. Tom Gilliam 248-790-5594
The neighborhood in which home buyers prefer in Oakland County is diverse and has much to do with the age of the buyer. The most important aspect of the Oakland County home buyers is the feeling of community and a feeling of belonging that appeals to all ages, especially millennial home buyers. In Oakland County we have many such neighborhoods where the community is tight-nit and the sense of belonging to part of the neighborhood is important and respected. For the millenial home buyers it is vital that they have nearby shopping, gyms and outdoor activities where they feel they can get things done in a quick and safe manner knowing they are part of the community in which they live.
The factors that influence a home buyer’s decision to buy a particular house in a particular neighborhood are very similar across demographic groups. After all, our lives are more similar than they are different. We all want to live in a safe neighborhood with access to things we want and need, like recreation and health care providers. However, depending on the age of the buyer, there are some are other neighborhood features, like schools, that may appeal more to a younger home buyer than an older one.
For that reason, the National Association of Realtors’ Home Buyer and Seller Generational Trends study takes an annual look at who’s buying homes, what kind of homes, and for what reasons. Lawrence Yun, NAR’s chief economist, says the results show there is one factor that appeals to buyers of all ages. “The sense of community and wanting friends and family nearby is a major factor for many home buyers of all ages,” Yun said. “Similar to Gen X buyers who have their parents living at home, millennial buyers with kids may seek the convenience of having family nearby to help raise their family.” In short, proximity to family and friends was important to buyers of all ages, whether they were millennials or baby boomers. More here.
Neighborhood Most Wanted
Whether you choose to live in a big city, a small town or somewhere in between, as a young professional, there are certain things that you’re going to want in your neighborhood that may differ from what other groups, like young families or retirees, are looking for.
If you’re a young professional and are thinking of buying or renting a new place, there are certain questions that you’ll want to ask yourself before making a decision on where to call home. Here’s a checklist for young professionals on the market for a new home of questions to ask that will ensure the home you choose will be the right fit for you and your needs:
What’s The Walkability Of The Neighborhood?
As a young professional, you want to have certain things right outside your door. Living in a walkable neighborhood can make the experience of living there more convenient and more enjoyable. It can also be a great way to meet your neighbors and start connecting with other young professionals in your new neighborhood.
When you’re looking at a property, check out what’s within immediate walking distance. Are you close to coffee shops, a grocery story or a park? Can you see yourself easily walking to run errands or get the things you need?
Now, walkability is more feasible in certain locations than in others. So, if you’re looking in a city or town that isn’t known for being very walkable, you’ll want to look at the convenience of the layout. Is the city or town center within biking distance or a quick drive away? Are all the stores, shops and food establishments centrally located, so once you get to that location, they are easy to navigate on foot?
The more walkable your neighborhood, the less driving around you’ll have to do, which will make your life significantly more convenient.
What Perks Does The Neighborhood Have That Will Fit In My Lifestyle?
When you’re choosing a neighborhood, you want to be sure that it offers the kind of lifestyle that suits you as a young professional. Most young professionals want to move to a vibrant neighborhood that has numerous opportunities to explore the culture, food, outdoor and entertainment scenes.
Keep in mind – virtually no neighborhood is going to have everything that you’re looking for. Make a list of the things that are important to your lifestyle and then use it as a guide when considering neighborhoods.
Are you a person that values the arts? Then you’ll want to move to an area that has a number of interesting museums, galleries or cultural exhibits. Got a passion for all things food? Moving to a place that has a thriving restaurant scene will make you feel right at home. Love being outside? Look for an area that’s full of hiking paths, bike trails, and outdoor fitness activities.
Figure out what kind of lifestyle you want to live in your new home and then find a neighborhood that embodies those values.
How Convenient Is The Neighborhood To My Office?
One of the defining characteristics of being a young professional is (obviously) involvement in the professional world. And when choosing a neighborhood, you want to be sure you choose an area that’s convenient to your place of work.
Now, this will mean different things to different people. Some people want to be able to open their door in the morning and walk to their office in less than 10 minutes. Others would prefer to live in a suburb and commute to the city on public transportation. Others are fine driving to and from the office.
Whatever situation you prefer is fine. Just be sure that the area you choose to live makes sense with your preference. Looking to take public transportation? Make sure your neighborhood has a transit stop nearby that will take you to your office. Prefer to drive? Make sure that you won’t spend hours every morning sitting in traffic en route to work.
How Will This Neighborhood Grow With Me?
Finally, when choosing a home and a neighborhood as a young professional, it’s important to remember that you won’t ALWAYS be a young professional. You want to choose a neighborhood that will grow with you.
This is especially important if you’re planning to buy, but even if you’re renting, you want to choose a neighborhood that will grow with you for at least a few years; no one likes to pack up and move their life every 12 months. Not only is it inconvenient, but it’s expensive.
When you’re choosing a neighborhood, look at it objectively and ask yourself “Will this neighborhood still make sense for me in 5 years?” If you’re planning on having a family, you might want to research the school system and check out if there are any parks or playgrounds nearby. If you’re young and enjoy going out to nightclubs, you might also want to see what other types of recreational activities the neighborhood offers for when clubbing loses its appeal.
Most great neighborhoods offer plenty to do, see and experience for people in all stages of life. Before you commit to a neighborhood, be sure it’s the kind of place that you can enjoy as you grow.
Asking yourself these questions before you settle on a neighborhood can help you make the best decision on the place that’s right for you as a young professional – and leave you enjoying that neighborhood for years to come.